    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Department of Defense-Military]
    [From the U.S. Government Printing Office, www.gpo.gov]

    [[Page 229]]

                         DEPARTMENT OF DEFENSE--MILITARY

                               MILITARY PERSONNEL

                            ACTIVE AND RESERVE FORCES

        These appropriations finance the personnel costs of the active,
    reserve, and guard forces of the Army, Navy, Air Force, and Marine
    Corps. They include pay and allowances of officers, enlisted personnel,
    cadets and midshipmen, permanent change of station travel, inactive duty
    and active duty training, accruing retirement and health benefits,
    enlistment, reenlistment and affiliation bonuses, special and incentive
    pays, and other personnel costs. Over the past two years, significant
    pay increases, coupled with new requirements to accrue funds for future
    health benefits, have significantly increased the requirements of these
    appropriations. In addition, funding previously shown separately in
    Guard and Reserve accounts is now included in the accounts previously
    used only for active duty forces.

        The request includes funding for a series of military pay increases,
    from 2.0% to 6.3%, depending on rank and length of service. It does not
    include approximately $23.1 million in funding for personnel related
    legislative initiatives, identified as legislative proposals and shown
    in separate schedules below. With the increase, base military salaries
    will average more than $37,000 for enlisted personnel and more than
    $75,000 for officers, exceeding the average salaries of their civilian
    counterparts with similar education levels.

        Also displayed in these accounts are the amounts which would be
    required to finance the health care costs of non-medicare eligible
    military retirees. No funding is requested for this purpose. More
    information about this proposal can be found in the Defense health
    section.

                                  ACTIVE FORCES

                                   YEAR-END NUMBER

    ----------------------------------------------------------------------------
                                             2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    Defense total                              1,411,634   1,389,700   1,388,100
                                               ---------   ---------  ----------
          Officers..........................     222,954     217,950     217,920
          Enlisted..........................   1,176,161   1,159,650   1,158,080
          Academy cadets and midshipmen.....      12,519      12,100      12,100
                                               ---------   ---------  ----------
    Army                                         486,542     480,000     480,000
                                               ---------   ---------  ----------
          Officers..........................      78,158      76,496      76,724
          Enlisted..........................     404,304     399,404     399,176
          Military Academy cadets...........       4,080       4,100       4,100
                                               ---------   ---------  ----------
    Navy                                         383,108     375,700     373,800
                                               ---------   ---------  ----------
          Officers..........................      54,476      53,866      53,608
          Enlisted..........................     324,351     317,834     316,192
          Naval Academy midshipmen..........       4,281       4,000       4,000
                                               ---------   ---------  ----------
    Marine Corps                                 173,733     175,000     175,000
                                               ---------   ---------  ----------
          Officers..........................      18,288      18,088      18,088
          Enlisted..........................     155,445     156,912     156,912
                                               ---------   ---------  ----------
    Air Force                                    368,251     359,000     359,300
                                               ---------   ---------  ----------
          Officers..........................      72,032      69,500      69,500
          Enlisted..........................     292,061     285,500     285,800
          Air Force Academy cadets..........       4,158       4,000       4,000
    ---------------------------------------------------------------------------

                                 RESERVE FORCES

        The number of National Guard and Reserve personnel estimated to
    participate in the Selected Reserve training programs and the number of
    full-time active duty military personnel provided for are summarized in
    the following table.

                                   YEAR-END NUMBER

    ----------------------------------------------------------------------------
                                             2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    Defense total                                874,330     864,702     863,100

                                               ---------   ---------  ----------
              Trained inactive duty.........     750,951     742,362     739,487
              Training pipeline.............      56,996      53,380      53,408
              Full-time active duty.........      66,383      68,960      70,205
                                               ---------   ---------  ----------

    Army Reserve                                 206,682     205,000     205,000
                                               ---------   ---------  ----------
              Trained inactive duty.........     177,786     176,981     176,662
              Training pipeline.............      15,490      13,949      13,964
              Full-time active duty.........      13,406      14,070      14,374
                                               ---------   ---------  ----------

    Navy Reserve                                  87,958      87,944      85,900
                                               ---------   ---------  ----------
              Trained inactive duty.........      73,140      73,142      71,426
              Training pipeline.............           2          60          90
              Full-time active duty.........      14,816      14,742      14,384
                                               ---------   ---------  ----------

    Marine Corps Reserve                          39,905      39,558      39,600
                                               ---------   ---------  ----------
              Trained inactive duty.........      34,524      34,280      34,322
              Training pipeline.............       3,087       3,017       3,017
              Full-time active duty.........       2,294       2,261       2,261
                                               ---------   ---------  ----------

    Air Force Reserve                             76,632      75,600      75,800
                                               ---------   ---------  ----------
              Trained inactive duty.........      72,510      72,645      72,673
              Training pipeline.............       2,674       1,457       1,467
              Full-time active duty.........       1,448       1,498       1,660
                                               ---------   ---------  ----------

    Army National Guard                          351,078     350,000     350,000
                                               ---------   ---------  ----------
              Trained inactive duty.........     296,248     293,734     292,645
              Training pipeline.............      31,491      31,604      31,969
              Full-time active duty.........      23,339      24,662      25,386
                                               ---------   ---------  ----------

    Air National Guard                           112,075     106,600     107,000
                                               ---------   ---------  ----------
              Trained inactive duty.........      96,743      91,580      91,959
              Training pipeline.............       4,252       3,293       2,901
              Full-time active duty.........      11,080      11,727      12,140
    ---------------------------------------------------------------------------

        The Reserve Officers' Training Corps program provides training for
    reserve and regular officer candidates who have enrolled in the course
    while attending a college at which an ROTC unit has been established.
    College graduates who satisfactorily complete the advanced course of the
    program are commissioned and may be ordered to active duty for a minimum
    of 3 years.

        The Reserve Officers' Training Corps Vitalization Act of 1964, as
    amended, authorizes a limited number of scholarships for ROTC students
    on a competitive basis. Successful candidates for the scholarships
    generally serve a minimum period of 4 years on active duty upon
    graduation and appointment as a commissioned officer. A number of
    scholarship recipients will fulfill their entire obligation in the
    Reserve components.

        The Armed Forces health professions scholarship program provides a
    source of active duty commissioned officers for the various health
    professions.

    [[Page 230]]

        The numbers of commissioned officers graduated from these programs
    are summarized below:
    ----------------------------------------------------------------------------
                                             2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        ROTC:
      Army..................................       2,287       2,265       2,680
      Navy..................................       1,050       1,050       1,050
      Air Force.............................       2,440       2,200       2,500
                                               ---------   ---------  ----------
              Total.........................       5,777       5,515       6,230
                                               ---------   ---------  ----------
    Marine Corps officer candidates                  175         175         175
                                               ---------   ---------  ----------
              Total.........................       5,952       5,690       6,405
                                               ---------   ---------  ----------
        Health Professions scholarship:
      Army..................................         399         391         401
      Navy..................................         453         398         284
      Air Force.............................         319         410         335
                                               ---------   ---------  ----------
              Total.........................       1,171       1,199       1,020
    ---------------------------------------------------------------------------

                                  Federal Funds

    General and special funds:

                            Military Personnel, Army

        For pay, allowances, individual clothing, subsistence, interest on
    deposits, gratuities, travel and related expenses, permanent change of
    station travel (including all expenses thereof for organizational
    movements), and expenses of temporary duty travel between permanent duty
    stations, for members of the Army on active duty, [(except members of
    reserve components provided for elsewhere)] personnel of the Army
    National Guard and Army Reserve on active duty under 10 U.S.C. 10211,
    10302, 12402 and 3038 or 32 U.S.C. 708, or while serving on active duty
    under 10 U.S.C. 12301(d) or 32 U.S.C. 502(f), in connection with
    performing duty specified in 10 U.S.C. 12310(a), or while undergoing
    training, or while performing drills or equivalent duty or other duty,
    cadets, [and] aviation cadets, and members of the Reserve Officers'
    Training Corps; for expenses authorized by 10 U.S.C. 16131; and for
    payments pursuant to section 156 of Public Law 97-377, as amended (42
    U.S.C. 402 note), and to the Department of Defense Military Retirement
    Fund, [$26,855,017,000]. $37,386,380,000 (10 U.S.C. 701-04, 744, 956,
    1035, 1037, 1047-49, 1212, 1475-80, 2389, 2421, 2634, 3687, 4561, 4562,
    4741; chapters 3, 5, 7, and 9 of title 37, United States Code;
    Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2010-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Pay and allowances of officers....       7,042       7,120       7,547
    00.02 Pay and allowances of enlisted
            personnel.......................      15,526      16,983      18,150
    00.03 Pay and allowances of cadets......          43          47          50
    00.04 Subsistence of enlisted personnel.       1,394       1,422       1,374
    00.05 Permanent change of station travel       1,189       1,141       1,061
    00.06 Other military personnel costs....         189         120         107
    00.07 Reserve personnel.................                               3,586
    00.08 National guard personnel..........                               5,512
    09.01 Reimbursable program..............         203         696         411
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      25,586      27,531      37,798
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      25,472      27,531      37,798
    22.22 Unobligated balance transferred
            from other accounts.............         113
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      25,585      27,531      37,798
    23.95 Total new obligations.............     -25,586     -27,531     -37,798
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      23,708      26,755      37,227
    42.00   Transferred from other accounts.       1,556          59
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      25,264      26,814      37,227
          Mandatory:

    60.00   Appropriation...................           5          20         160
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         119         696         411
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          84
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         203         696         411
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      25,472      27,531      37,798
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,092       1,633       2,042
    73.10 Total new obligations.............      25,586      27,531      37,798
    73.20 Total outlays (gross).............     -25,708     -27,122     -37,134
    73.40 Adjustments in expired accounts
            (net)...........................        -450
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -84
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................         198
    74.40 Obligated balance, end of year....       1,633       2,042       2,708
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      24,264      26,142      35,739
    86.93 Outlays from discretionary
            balances........................       1,440         960       1,242
    86.97 Outlays from new mandatory
            authority.......................           4          19         152
    86.98 Outlays from mandatory balances...                                   1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      25,708      27,122      37,134
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -43        -664        -377
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -76         -32         -34
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -119        -696        -411
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -84
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      25,269      26,834      37,387
    90.00 Outlays...........................      25,589      26,425      36,723
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                               2,091
    99.01 Outlays...........................                               2,091
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................      25,269      26,834      37,387
      Outlays...........................      25,589      26,425      36,723
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                   2
      Outlays...........................                                   2
                                        ------------------------------------
    Total:
      Budget Authority..................      25,269      26,834      37,389
      Outlays...........................      25,589      26,425      36,725
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2010-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................      17,632      17,527      23,529
            Military personnel benefits:
    12.2      Accrued retirement benefits...       4,075       3,672       4,675
    12.2      Other personnel benefits......       2,423       2,286       3,771
    12.2      Military personnel benefits...                   2,302       3,490
    13.0    Benefits for former personnel...         126          59          62
    21.0    Travel and transportation of
              persons.......................         258         331         774
    22.0    Transportation of things........         698         525         611
    25.2    Other services..................                                   1
    25.3    Other purchases of goods and
              services from Government
              accounts......................                                   1
    25.7    Operation and maintenance of
              equipment.....................          55          27          30
    25.8    Subsistence and support of
              persons.......................                                 103
    26.0    Supplies and materials..........         108         102         338
    42.0    Insurance claims and indemnities           8           3           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............      25,383      26,834      37,389
    99.0  Reimbursable obligations..........         203         697         409
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      25,586      27,531      37,798
    ---------------------------------------------------------------------------

    [[Page 231]]

                            Military Personnel, Army

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2010-2-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.07 Direct program activity...........                                   2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 11.7)...................                                   2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   2
    23.95 Total new obligations.............                                  -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                   2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   2
    73.20 Total outlays (gross).............                                  -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                   2
    90.00 Outlays...........................                                   2
    ---------------------------------------------------------------------------

                            Military Personnel, Navy

        For pay, allowances, individual clothing, subsistence, interest on
    deposits, gratuities, travel and related expenses, permanent change of
    station travel (including all expenses thereof for organizational
    movements), and expenses of temporary duty travel between permanent duty
    stations, for members of the Navy on active duty, [(except members of
    the Reserve provided for elsewhere)] personnel of the Navy Reserve on
    active duty under 10 U.S.C. 10211, or while serving on active duty under
    10 U.S.C. 12301(d), in connection with performing duty specified in 10
    U.S.C. 12310(a), or while undergoing reserve training, or while
    performing drills or equivalent duty, midshipmen, [and] aviation cadets,
    and members of the Reserve Officers' Training Corps; for expenses
    authorized by 10 U.S.C. 16131; and for payments pursuant to section 156
    of Public Law 97-377, as amended (42 U.S.C. 402 note), and to the
    Department of Defense Military Retirement Fund, [$21,927,628,000]
    $25,282,454,000 (10 U.S.C. 600, 683-4, 701-4, 744, 956, 1035, 1037,
    1047-49, 1212, 1475-80, 2421, 2634, 5413-14, 5441-42, 5444, 5446, 5450-
    51, 5454, 5501, 5503, 6081-86, 6221, 6911-12, 6960, 6969; 26 U.S.C.
    3121; chapters 3, 5, 7, 9, and 10 of title 37, United States Code;
    Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1453-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Pay and allowances of officers....       5,232       5,291       5,594
    00.02 Pay and allowances of enlisted
            personnel.......................      13,355      14,881      15,903
    00.03 Pay and allowances of cadets......          50          51          53
    00.04 Subsistence of enlisted personnel.         906         914         932
    00.05 Permanent change of station travel         659         712         698
    00.06 Other military personnel costs....          79          56          73
    00.07 Reserve personnel.................                               2,028
    09.01 Reimbursable program..............         244         399         369
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      20,525      22,304      25,650
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      20,480      22,304      25,650
    22.22 Unobligated balance transferred
            from other accounts.............          56
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      20,536      22,304      25,650
    23.95 Total new obligations.............     -20,525     -22,304     -25,650
    23.98 Unobligated balance expiring or
            withdrawn.......................         -11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      19,545      21,911      25,212
    41.00   Transferred to other accounts...         -24         -16
    42.00   Transfer from other accounts....         709
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      20,230      21,895      25,212
          Mandatory:

    60.00   Appropriation...................           6          10          69
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          92         399         369
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         152
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         244         399         369
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      20,480      22,304      25,650
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,029         803       1,063
    73.10 Total new obligations.............      20,525      22,304      25,650
    73.20 Total outlays (gross).............     -20,658     -22,045     -25,489
    73.40 Adjustments in expired accounts
            (net)...........................         -48
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -152
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................         107
    74.40 Obligated balance, end of year....         803       1,063       1,224
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      19,921      21,703      24,900
    86.93 Outlays from discretionary
            balances........................         731         332         522
    86.97 Outlays from new mandatory
            authority.......................           6          10          67
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      20,658      22,045      25,489
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -26        -229        -196
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -171        -170        -173
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -197        -399        -369
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -152
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............         105
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      20,236      21,905      25,281
    90.00 Outlays...........................      20,460      21,646      25,120
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                               1,498
    99.01 Outlays...........................                               1,498
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................      20,236      21,905      25,281
      Outlays...........................      20,460      21,646      25,120
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  10
      Outlays...........................                                  10
                                        ------------------------------------
    Total:
      Budget Authority..................      20,236      21,905      25,291
      Outlays...........................      20,460      21,646      25,130
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1453-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................      14,407      14,555      16,800
            Military personnel benefits:
    12.2      Accrued retirement benefits...       3,034       2,757       3,095
    12.2      Other personnel benefits......       2,141       2,250       2,465
    12.2      Military personnel benefits...                   1,639       1,938
    13.0    Benefits for former personnel...          55          54          61
    21.0    Travel and transportation of
              persons.......................         181         194         367
    22.0    Transportation of things........         382         435         415
    25.7    Operation and maintenance of
              equipment.....................          11          12          12
    25.8    Subsistence and support of
              persons.......................                                  17

    [[Page 232]]

    26.0    Supplies and materials..........          70           9         108
    42.0    Insurance claims and indemnities                                   3
                                               ---------   ---------  ----------
    99.0      Direct obligations............      20,281      21,905      25,281
    99.0  Reimbursable obligations..........         244         399         369
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      20,525      22,304      25,650
    ---------------------------------------------------------------------------

                            Military Personnel, Navy

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1453-2-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Pay and allowances of enlisted
            personnel.......................                                  10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 11.7)...................                                  10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  10
    23.95 Total new obligations.............                                 -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  10
    73.20 Total outlays (gross).............                                 -10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  10
    90.00 Outlays...........................                                   9
    ---------------------------------------------------------------------------

                        Military Personnel, Marine Corps

        For pay, allowances, individual clothing, subsistence, interest on
    deposits, gratuities, travel and related expenses, permanent change of
    station travel (including all expenses thereof for organizational
    movements), and expenses of temporary duty travel between permanent duty
    stations, for members of the Marine Corps on active duty, [(except
    members of the Reserve provided for elsewhere;)] personnel of the Marine
    Corps Reserve on active duty under 10 U.S.C. 10211, or while serving on
    active duty under 10 U.S.C. 12301(d), in connection with performing duty
    specified in 10 U.S.C. 12310(a), or while undergoing reserve training,
    or while performing drills or equivalent duty, and members of the Marine
    Corps platoon leaders class, and for expenses authorized by 10 U.S.C.
    16131; and for payments pursuant to section 156 of Public Law 97-377, as
    amended (42 U.S.C. 402 note), and to the Department of Defense Military
    Retirement Fund, [$8,501,087,000] $9,559,441,000 (10 U.S.C. 956, 1035,
    1047-49, 1212, 1475-80, 2634, 5413-14, 5441, 5443, 5446, 5451, 5454,
    5456, 5458, 5502-03, 6032, 6081-86, 6148, 6222; 12 U.S.C. 1715m;
    chapters 3, 5, 7, and 9 of title 37, United States Code; 41 U.S.C.
    1594d; Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1105-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Pay and allowances of officers....       1,627       1,684       1,770
    00.02 Pay and allowances of enlisted
            personnel.......................       5,235       6,035       6,425
    00.04 Subsistence of enlisted personnel.         427         442         441
    00.05 Permanent change of station travel         264         289         288
    00.06 Other military personnel costs....          51          42          49
    00.07 Reserve personnel.................                                 587
    09.01 Reimbursable program..............          31          32          35
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       7,635       8,524       9,595
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       7,620       8,524       9,595
    22.22 Unobligated balance transferred
            from other accounts.............          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       7,634       8,524       9,595
    23.95 Total new obligations.............      -7,635      -8,524      -9,595
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       7,334       8,487       9,541
    42.00   Transferred from other accounts.         253           2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       7,587       8,489       9,541
          Mandatory:

    60.00   Appropriation...................           2           3          19
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          16          32          35
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          15
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          31          32          35
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       7,620       8,524       9,595
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         441         371         521
    73.10 Total new obligations.............       7,635       8,524       9,595
    73.20 Total outlays (gross).............      -7,642      -8,375      -9,551
    73.40 Adjustments in expired accounts
            (net)...........................         -56
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -15
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          10
    74.40 Obligated balance, end of year....         371         521         566
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       7,356       8,207       9,223
    86.93 Outlays from discretionary
            balances........................         284         165         310
    86.97 Outlays from new mandatory
            authority.......................           2           3          18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,642       8,375       9,551
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -18         -28         -27
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -4          -4          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -22         -32         -35
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -15
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       7,589       8,492       9,560
    90.00 Outlays...........................       7,619       8,343       9,516
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                                 681
    99.01 Outlays...........................                                 681
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1105-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................       4,502       5,557       6,352
            Military personnel benefits:
    12.2      Accrued retirement benefits...       1,240       1,155       1,250
    12.2      Other personnel benefits......       1,427         614         641
    12.2      Military personnel benefits...                     756         879
    13.0    Benefits for former personnel...          34          30          37
    21.0    Travel and transportation of
              persons.......................          71          81          83
    22.0    Transportation of things........         150         150         161
    25.6    Medical care....................         176
    25.8    Subsistence and support of
              persons.......................           4         107         109
    26.0    Supplies and materials..........          -1          41          47
    42.0    Insurance claims and indemnities           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       7,604       8,492       9,560

    [[Page 233]]

    99.0  Reimbursable obligations..........          31          32          35
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       7,634       8,524       9,595
    ---------------------------------------------------------------------------

                          Military Personnel, Air Force

        For pay, allowances, individual clothing, subsistence, interest on
    deposits, gratuities, travel and related expenses, permanent change of
    station travel (including all expenses thereof for organizational
    movements), and expenses of temporary duty travel between permanent duty
    stations, for members of the Air Force on active duty, [(except members
    of reserve components provided for elsewhere)] personnel of the Air
    National Guard and Air Force Reserve on active duty under 10 U.S.C.
    10211, 10305, 12402 and 8038 or 32 U.S.C. 708, or while serving on
    active duty under 10 U.S.C. 12301(d) or 32 U.S.C. 502(f), in connection
    with performing duty specified in 10 U.S.C. 12310(a), or while
    undergoing training, or while performing drills or equivalent duty or
    other duty, cadets, [and] aviation cadets, and members of the Reserve
    Officers' Training Corps; for expenses authorized by 10 U.S.C. 16131;
    and for payments pursuant to section 156 of Public Law 97-377, as
    amended (42 U.S.C. 402 note), and to the Department of Defense Military
    Retirement Fund, [$21,981,277,000] $26,715,990. (10 U.S.C. 503, 504-09,
    518-19, 600, 683-84, 687, 701-04, 744, 956, 1035-37, 1047-49, 1211-12,
    1331, 1475-80, 2632, 2634, 8033, 8036, 8066, 8201-15, 8281, 8284-89,
    8293-8303, 8305-10, 8312-13, 8441-49, 8451-52, 8491, 8494-8504, 8531,
    8687, 8722, 9306, 9331-37, 9341-55, 9441, 9561-63, 9741-43; 12 U.S.C.
    1715m; 33 U.S.C. 855, 858; chapters 3, 5, 7, 9, 10, and 11 of title 37,
    United States Code; 49 U.S.C. 1657; Department of Defense Appropriations
    Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3500-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Pay and allowances of officers....       6,991       6,840       7,204
    00.02 Pay and allowances of enlisted
            personnel.......................      13,081      13,194      14,029
    00.03 Pay and allowances of cadets......          49          50          50
    00.04 Subsistence of enlisted personnel.         963         821         836
    00.05 Permanent change of station travel         925         975         976
    00.06 Other military personnel costs....          71          66          64
    00.07 Reserve personnel.................                               1,332
    00.08 National Guard personnel..........                               2,223
    09.01 Reimbursable program..............         190         444         415
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      22,270      22,389      27,131
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      22,162      22,389      27,131
    22.22 Unobligated balance transferred
            from other accounts.............         107
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      22,269      22,389      27,131
    23.95 Total new obligations.............     -22,270     -22,389     -27,131
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      19,896      21,932      26,585
    41.00   Transferred to other accounts...         -17          -7
    42.00   Transfer from other accounts....       2,079
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      21,958      21,925      26,585
          Mandatory:

    60.00   Appropriation...................          14          20         131
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         209         444         415
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -19
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         190         444         415
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      22,162      22,389      27,131
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,609       2,099       2,085
    73.10 Total new obligations.............      22,270      22,389      27,131
    73.20 Total outlays (gross).............     -21,723     -22,403     -26,768
    73.40 Adjustments in expired accounts
            (net)...........................         -79
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          19
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           5
    74.40 Obligated balance, end of year....       2,099       2,085       2,449
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      20,595      20,900      25,219
    86.93 Outlays from discretionary
            balances........................       1,114       1,484       1,426
    86.97 Outlays from new mandatory
            authority.......................          14          19         122
    86.98 Outlays from mandatory balances...                                   1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      21,723      22,403      26,768
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -190        -422        -387
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -24         -22         -28
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -214        -444        -415
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          19
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      21,972      21,945      26,716
    90.00 Outlays...........................      21,511      21,959      26,353
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                               1,455
    99.01 Outlays...........................                               1,455
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3500-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................      15,559      14,209      17,817
            Military personnel benefits:
    12.2      Accrued retirement benefits...       3,510       2,981       3,447
    12.2      Other personnel benefits......       2,156       2,191       2,187
    12.2      Military personnel benefits...                   1,656       2,019
    13.0    Benefits for former personnel...          38          29          33
    21.0    Travel and transportation of
              persons.......................         251         220         378
    22.0    Transportation of things........         500         588         755
    25.7    Operation and maintenance of
              equipment.....................          21          24          25
    26.0    Supplies and materials..........          42          44          46
    41.0    Grants, subsidies, and
              contributions.................                                   6
    42.0    Insurance claims and indemnities           2           2           2
    43.0    Interest and dividends..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............      22,080      21,945      26,716
    99.0  Reimbursable obligations..........         190         444         415
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      22,270      22,389      27,131
    ---------------------------------------------------------------------------

                                  Federal Funds

    General and special funds:

                             Reserve Personnel, Army

        [For pay, allowances, clothing, subsistence, gratuities, travel, and
    related expenses for personnel of the Army Reserve on active duty under
    sections 10211, 10302, and 3038 of title 10, United States Code, or
    while serving on active duty under section 12301(d) of title 10, United
    States Code, in connection with performing duty specified in section
    12310(a) of title 10, United States Code, or while undergoing reserve
    training, or while performing drills or equivalent duty or other duty,
    and for members of the Reserve Officers' Training Corps, and expenses
    authorized by section 16131 of title 10, United States Code; and for
    payments to the Department of Defense Military Retirement Fund,
    $3,374,355,000.] (10 U.S.C. 683, 1475-80, 2101-11, 3722; 37 U.S.C. 204,
    206, 209, 301, 305, 402-04, 414-18, 1002; Department of Defense
    Appropriations Act, 2003.)

    [[Page 234]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2070-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Unit and individual training......       1,241       1,704
    00.02 Other training and support........       1,441       1,670
    09.01 Reimbursable program..............          24          35
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,706       3,409
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       2,707       3,409
    23.95 Total new obligations.............      -2,706      -3,409
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,675       3,374
    42.00   Transferred from other accounts.           8
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,683       3,374
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          15          35
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           9
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          24          35
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,707       3,409
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         300         274         331
    73.10 Total new obligations.............       2,706       3,409
    73.20 Total outlays (gross).............      -2,684      -3,352        -264
    73.40 Adjustments in expired accounts
            (net)...........................         -43
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -9
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           3
    74.40 Obligated balance, end of year....         274         331          67
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       2,494       3,167
    86.93 Outlays from discretionary
            balances........................         190         185         264
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,684       3,352         264
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -16         -35
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -9
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,683       3,374
    90.00 Outlays...........................       2,667       3,317         264
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2070-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................       1,504       1,715
            Military personnel benefits:
    12.2      Accrued retirement benefits...         306         323
    12.2      Other personnel benefits......         612         633
    12.2      Military personnel benefits...                     367
    21.0    Travel and transportation of
              persons.......................         166         174
    22.0    Transportation of things........          16          21
    25.8    Subsistence and support of
              persons.......................          31          47
    26.0    Supplies and materials..........          47          95
                                               ---------   ---------  ----------
    99.0      Direct obligations............       2,682       3,375
    99.0  Reimbursable obligations..........          24          34
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,706       3,409
    ---------------------------------------------------------------------------

                             Reserve Personnel, Navy

        [For pay, allowances, clothing, subsistence, gratuities, travel, and
    related expenses for personnel of the Navy Reserve on active duty under
    section 10211 of title 10, United States Code, or while serving on
    active duty under section 12301(d) of title 10, United States Code, in
    connection with performing duty specified in section 12310(a) of title
    10, United States Code, or while undergoing reserve training, or while
    performing drills or equivalent duty, and for members of the Reserve
    Officers' Training Corps, and expenses authorized by section 16131 of
    title 10, United States Code; and for payments to the Department of
    Defense Military Retirement Fund, $1,907,552,000.] (10 U.S.C. 600, 683-
    4, 1475-80, 2031, 2101-11, 5456-57, 6081-86, 6148; 26 U.S.C. 3121; 37
    U.S.C. 204, 206, 301, 305, 402-4, 415-18, 427, 1002; 38 U.S.C. 701-12;
    Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1405-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Unit and individual training......         672         819
    00.02 Other training and support........         989       1,089
    09.01 Reimbursable program..............          18          30
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,679       1,938
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,689       1,938
    23.95 Total new obligations.............      -1,679      -1,938
    23.98 Unobligated balance expiring or
            withdrawn.......................         -11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,655       1,908
    42.00   Transferred from other accounts.          17
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,672       1,908
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          16          30
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          17          30
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,689       1,938
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         464         496         539
    73.10 Total new obligations.............       1,679       1,938
    73.20 Total outlays (gross).............      -1,612      -1,894        -176
    73.40 Adjustments in expired accounts
            (net)...........................         -34
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
    74.40 Obligated balance, end of year....         496         539         363
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,485       1,720
    86.93 Outlays from discretionary
            balances........................         127         174         176
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,612       1,894         176
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -17         -30
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,672       1,908
    90.00 Outlays...........................       1,596       1,864         176
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1405-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................         979       1,160

    [[Page 235]]

            Military personnel benefits:
    12.2      Accrued retirement benefits...         327         191
    12.2      Other personnel benefits......         120         131
    12.2      Military personnel benefits...                     196
    21.0    Travel and transportation of
              persons.......................         176         171
    22.0    Transportation of things........          15          16
    25.8    Subsistence and support of
              persons.......................          17           9
    26.0    Supplies and materials..........          25          31
    42.0    Insurance claims and indemnities           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,662       1,908
    99.0  Reimbursable obligations..........          17          30
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,679       1,938
    ---------------------------------------------------------------------------

                         Reserve Personnel, Marine Corps

        [For pay, allowances, clothing, subsistence, gratuities, travel, and
    related expenses for personnel of the Marine Corps Reserve on active
    duty under section 10211 of title 10, United States Code, or while
    serving on active duty under section 12301(d) of title 10, United States
    Code, in connection with performing duty specified in section 12310(a)
    of title 10, United States Code, or while undergoing reserve training,
    or while performing drills or equivalent duty, and for members of the
    Marine Corps platoon leaders class, and expenses authorized by section
    16131 of title 10, United States Code; and for payments to the
    Department of Defense Military Retirement Fund, $553,983,000.] (10
    U.S.C. 600, 683, 1475-80, 2031, 2101-11, 5456, 5458, 6081-86, 6148; 37
    U.S.C. 206, 301, 305, 402-04, 415-18, 1002; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1108-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Unit and individual training......         250         325
    00.02 Other training and support........         217         229
    09.01 Reimbursable program..............           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         471         557
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         471         557
    23.95 Total new obligations.............        -471        -557
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         471         554
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -3
    41.00   Transferred to other accounts...          -3
    42.00   Transferred from other accounts.           3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         468         554
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                       4
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           3           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         471         557
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          56          68          70
    73.10 Total new obligations.............         471         557
    73.20 Total outlays (gross).............        -448        -557         -54
    73.40 Adjustments in expired accounts
            (net)...........................          -7
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -1
    74.40 Obligated balance, end of year....          68          70          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         428         518
    86.93 Outlays from discretionary
            balances........................          20          39          54
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         448         557          54
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............           4
    88.40     Non-Federal sources...........          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                      -4
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         468         553
    90.00 Outlays...........................         447         553          54
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1108-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................         395         371
            Military personnel benefits:
    12.2      Accrued retirement benefits...          49          50
    12.2      Other personnel benefits......          15          15
    12.2      Military personnel benefits...                      77
    21.0    Travel and transportation of
              persons.......................                      31
    22.0    Transportation of things........           3           3
    26.0    Supplies and materials..........           5           6
                                               ---------   ---------  ----------
    99.0      Direct obligations............         467         553
    99.0  Reimbursable obligations..........           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         471         557
    ---------------------------------------------------------------------------

                          Reserve Personnel, Air Force

        [For pay, allowances, clothing, subsistence, gratuities, travel, and
    related expenses for personnel of the Air Force Reserve on active duty
    under sections 10211, 10305, and 8038 of title 10, United States Code,
    or while serving on active duty under section 12301(d) of title 10,
    United States Code, in connection with performing duty specified in
    section 12310(a) of title 10, United States Code, or while undergoing
    reserve training, or while performing drills or equivalent duty or other
    duty, and for members of the Air Reserve Officers' Training Corps, and
    expenses authorized by section 16131 of title 10, United States Code;
    and for payments to the Department of Defense Military Retirement Fund,
    $1,236,904,000.] (10 U.S.C. 261-80, 591-95, 597-600, 651, 671-85, 687,
    715, 1475-80, 2031, 2101-11, 2120-27, 2131-33, 2511, 8062, 8076, 8221-
    23, 8259-60, 8351-54, 8356-63, 8365-68, 8371-81, 8392-95, 8491, 8687,
    8722, 9301, 9411-14, 9561-63, 9741, 9743; 37 U.S.C. 204, 206, 209, 301,
    309, 402-11, 415-18, 1002; Department of Defense Appropriations Act,
    2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3700-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Unit and individual training......         541         764
    00.02 Other training and support........         451         473
    09.01 Reimbursable program..............           5           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         997       1,243
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,009       1,243
    23.95 Total new obligations.............        -997      -1,243
    23.98 Unobligated balance expiring or
            withdrawn.......................         -12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,061       1,237
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -1
    41.00   Transferred to other accounts...         -60
    42.00   Transferred from other accounts.           4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,004       1,237
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           4           7
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------

    [[Page 236]]

    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           5           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,009       1,243
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          78         100          78
    73.10 Total new obligations.............         997       1,243
    73.20 Total outlays (gross).............        -958      -1,265         -71
    73.40 Adjustments in expired accounts
            (net)...........................         -15
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.40 Obligated balance, end of year....         100          78           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         908       1,162
    86.93 Outlays from discretionary
            balances........................          50         103          72
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         958       1,265          71
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -4          -7
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,004       1,237
    90.00 Outlays...........................         955       1,259          71
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3700-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................         701         760
            Military personnel benefits:
    12.2      Accrued retirement benefits...          85         105
    12.2      Other personnel benefits......          75          65
    12.2      Military personnel benefits...                     132
    21.0    Travel and transportation of
              persons.......................          20          36
    22.0    Transportation of things........         107         131
    26.0    Supplies and materials..........           1           2
    41.0    Grants, subsidies, and
              contributions.................           3           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............         992       1,236
    99.0  Reimbursable obligations..........           5           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         997       1,243
    ---------------------------------------------------------------------------

                         National Guard Personnel, Army

        [For pay, allowances, clothing, subsistence, gratuities, travel, and
    related expenses for personnel of the Army National Guard while on duty
    under section 10211, 10302, or 12402 of title 10 or section 708 of title
    32, United States Code, or while serving on duty under section 12301(d)
    of title 10 or section 502(f) of title 32, United States Code, in
    connection with performing duty specified in section 12310(a) of title
    10, United States Code, or while undergoing training, or while
    performing drills or equivalent duty or other duty, and expenses
    authorized by section 16131 of title 10, United States Code; and for
    payments to the Department of Defense Military Retirement Fund,
    $5,114,588,000.] (10 U.S.C. 683, 1475-80, 3722; 37 U.S.C. 301, 305, 402-
    04, 418, 1002; Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2060-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Unit and individual training......       1,965       2,610
    00.02 Other training and support........       2,336       2,505
    09.01 Reimbursable program..............          78          85
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,379       5,200
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       4,367       5,200
    22.22 Unobligated balance transferred
            from other accounts.............          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,381       5,200
    23.95 Total new obligations.............      -4,379      -5,200
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,044       5,115
    42.00   Transferred from other accounts.         245
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,289       5,115
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           3          85
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          75
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          78          85
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,367       5,200
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         287         306         288
    73.10 Total new obligations.............       4,379       5,200
    73.20 Total outlays (gross).............      -4,281      -5,218        -307
    73.40 Adjustments in expired accounts
            (net)...........................         -12
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -75
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           8
    74.40 Obligated balance, end of year....         306         288         -18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       4,046       4,883
    86.93 Outlays from discretionary
            balances........................         235         335         307
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,281       5,218         307
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2         -84
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -3          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -5         -85
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -75
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,289       5,115
    90.00 Outlays...........................       4,277       5,133         307
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2060-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................       2,919       3,007
            Military personnel benefits:
    12.2      Accrued retirement benefits...         523         506
    12.2      Other personnel benefits......         516         584
    12.2      Military personnel benefits...                     651
    13.0    Benefits for former personnel...           4           5
    21.0    Travel and transportation of
              persons.......................         190         192
    22.0    Transportation of things........           7           7
    25.2    Other services..................                       1
    25.3    Other purchases of goods and
              services from Government
              accounts......................                       1
    25.8    Subsistence and support of
              persons.......................          58          36
    26.0    Supplies and materials..........          84         125
                                               ---------   ---------  ----------
    99.0      Direct obligations............       4,301       5,115
    99.0  Reimbursable obligations..........          78          85
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,379       5,200
    ---------------------------------------------------------------------------

    [[Page 237]]

                       National Guard Personnel, Air Force

        [For pay, allowances, clothing, subsistence, gratuities, travel, and
    related expenses for personnel of the Air National Guard on duty under
    section 10211, 10305, or 12402 of title 10 or section 708 of title 32,
    United States Code, or while serving on duty under section 12301(d) of
    title 10 or section 502(f) of title 32, United States Code, in
    connection with performing duty specified in section 12310(a) of title
    10, United States Code, or while undergoing training, or while
    performing drills or equivalent duty or other duty, and expenses
    authorized by section 16131 of title 10, United States Code; and for
    payments to the Department of Defense Military Retirement Fund,
    $2,125,161,000.] (10 U.S.C. 261-812, 510, 591-95, 597-600, 651, 671-85,
    2132-33, 2511, 3015, 8062, 8077-78, 8080, 8224-25, 8261, 8351-54, 8356,
    8358-63, 8365-68, 8371-81, 8392-95, 8491, 8722, 9301, 9561-63, 9741,
    18233a; 32 U.S.C. 101-11, 301-05, 307-08, 312-33, 501-07, 701, 37 U.S.C.
    201, 203-06, 301, 309, 402-11, 414-18, 501-02, 1002; Department of
    Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3850-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Unit and individual training......         686         968
    00.02 Other training and support........       1,011       1,157
    09.01 Reimbursable program..............          15          26
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,712       2,151
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,789       2,151
    23.95 Total new obligations.............      -1,712      -2,151
    23.98 Unobligated balance expiring or
            withdrawn.......................         -78
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,787       2,125
    40.73   Reduction pursuant to P.L. 107-
              206...........................         -35
    41.00   Transferred to other accounts...         -27
    42.00   Transferred from other accounts.          49
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,774       2,125
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          10          26
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           5
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          15          26
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,789       2,151
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          61          82          19
    73.10 Total new obligations.............       1,712       2,151
    73.20 Total outlays (gross).............      -1,691      -2,214         -74
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -5
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           4
    74.40 Obligated balance, end of year....          82          19         -56
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,632       2,067
    86.93 Outlays from discretionary
            balances........................          59         148          75
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,691       2,214          74
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -10         -24
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -12         -26
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -5
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,774       2,125
    90.00 Outlays...........................       1,679       2,188          74
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3850-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.7    Personnel compensation: Military
              personnel.....................       1,322       1,325
            Military personnel benefits:
    12.2      Accrued retirement benefits...         205         221
    12.2      Other personnel benefits......          71         258
    12.2      Military personnel benefits...                     214
    21.0    Travel and transportation of
              persons.......................          95         103
    22.0    Transportation of things........           4           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,697       2,126
    99.0  Reimbursable obligations..........          15          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,712       2,151
    ---------------------------------------------------------------------------

                            OPERATION AND MAINTENANCE

        These appropriations finance the cost of operating and maintaining
    the Armed Forces, including the Reserve components and related support
    activities of the Department of Defense, except military personnel pay,
    allowances and travel costs. Included are amounts for training and
    operation costs, pay of civilians, contract services for maintenance of
    equipment and facilities, fuel, supplies, and repair parts for weapons
    and equipment. Financial requirements are influenced by many factors,
    including the number of aircraft squadrons, Army and Marine Corps
    divisions, installations, military strength and deployments, rates of
    operational activity, and the quantity and complexity of major equipment
    (aircraft, ships, missiles, tanks, et cetera) in operation.

        The Administration is once again proposing to fully fund civilian
    health and retirement on an accrual basis. The amounts necessary to fund
    this benefit are presented as memo entries but are not included in DoD's
    funding request.

                                  Federal Funds

    General and special funds:

                         Operation and Maintenance, Army

                          (including transfer of funds)

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance of the Army, as authorized by law; and not to
    exceed [$10,818,000] $11,034,000 can be used for emergencies and
    extraordinary expenses, to be expended on the approval or authority of
    the Secretary of the Army, and payments may be made on his certificate
    of necessity for confidential military purposes, [$23,992,082,000:
    Provided, That of the funds appropriated in this paragraph, not less
    than $355,000,000 shall be made available only for conventional
    ammunition care and maintenance: Provided further, That of the funds
    made available under this heading, $2,500,000 shall be available for
    Fort Baker, in accordance with the terms and conditions as provided
    under the heading ``Operation and Maintenance, Army'', in Public Law
    107-117] $24,958,842,000, to remain available until September 30, 2005.
    (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2020-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................      13,218      12,219      12,617
    00.02 Mobilization......................         599         500         539
    00.03 Training and recruiting...........       4,236       4,157       4,385
    00.04 Administration and servicewide
            activities......................       7,615       6,950       7,419
    09.01 Reimbursable program..............       7,036       6,467       6,668
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      32,704      30,293      31,628
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12          76

    [[Page 238]]

    22.00 New budget authority (gross)......      32,585      30,217      31,628
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
    22.22 Unobligated balance transferred
            from other accounts.............         185
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      32,794      30,293      31,628
    23.95 Total new obligations.............     -32,704     -30,293     -31,628
    23.98 Unobligated balance expiring or
            withdrawn.......................         -14
    24.40 Unobligated balance carried
            forward, end of year............          76
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      22,363      23,778      24,960
    40.35   Appropriation rescinded.........        -102
    40.72   Reduction pursuant to P.L. 107-
              117...........................        -169
    40.75   Reduction pursuant to P.L. 107-
              248...........................                    -135
    41.00   Transferred to other accounts...         -10         -46
    42.00   Transferred from other accounts.       3,470         153
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      25,552      23,751      24,960
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       4,752       6,467       6,668
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................       2,281
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       7,033       6,467       6,668
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      32,585      30,217      31,628
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      10,035      10,803      10,278
    73.10 Total new obligations.............      32,704      30,293      31,628
    73.20 Total outlays (gross).............     -31,404     -30,818     -31,372
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    73.45 Recoveries of prior year
            obligations.....................         -12
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................      -2,281
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................       1,762
    74.40 Obligated balance, end of year....      10,803      10,278      10,536
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      24,677      22,807      23,841
    86.93 Outlays from discretionary
            balances........................       6,727       8,011       7,531
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      31,404      30,818      31,372
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -5,693      -5,950      -6,136
    88.40     Offsetting collections, Non-
                Federal sources, Other......      -1,012        -517        -532
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -6,705      -6,467      -6,668
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................      -2,281
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............       1,953
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      25,552      23,751      24,960
    90.00 Outlays...........................      24,699      24,351      24,704
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                     612         636
    99.01 Outlays...........................                     612         636
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................      25,552      23,751      24,960
      Outlays...........................      24,699      24,351      24,704
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                   7
      Outlays...........................                                   5
                                        ------------------------------------
    Total:
      Budget Authority..................      25,552      23,751      24,967
      Outlays...........................      24,699      24,351      24,709
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2020-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       3,278       3,544       3,390
    11.3      Other than full-time permanent         641         386         369
    11.5      Other personnel compensation..         221         218         202
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       4,140       4,148       3,961
    12.1    Civilian personnel benefits.....       1,184       1,191       1,168
    13.0    Benefits for former personnel...          53          43          38
    21.0    Travel and transportation of
              persons.......................       1,101         820         835
    22.0    Transportation of things........       1,801       1,256       1,262
    23.1    Rental payments to GSA..........         164         143         162
    23.2    Rental payments to others.......         172         189         209
    23.3    Communications, utilities, and
              miscellaneous charges.........         718         709         717
    24.0    Printing and reproduction.......          77          72          69
    25.1    Advisory and assistance services         396         224         228
    25.2    Other services..................       1,348         960       1,002
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Purchases of goods and
                services from other Federal
                accounts....................       2,073       1,808       2,086
    25.3      Payments to foreign national
                indirect hire personnel.....         328         304         298
    25.3      Purchases from revolving funds       1,476       1,630       2,040
    25.4    Operation and maintenance of
              facilities....................       1,938       2,364       2,338
    25.5    Research and development
              contracts.....................                                   1
    25.6    Medical care....................           2
    25.7    Operation and maintenance of
              equipment.....................       1,481       1,716       2,106
    25.8    Subsistence and support of
              persons.......................          94          16          17
    26.0    Supplies and materials..........       5,182       4,653       4,718
    31.0    Equipment.......................       1,444       1,030       1,151
    32.0    Land and structures.............         452         461         466
    41.0    Grants, subsidies, and
              contributions.................          16          25          25
    42.0    Insurance claims and indemnities          30          64          64
                                               ---------   ---------  ----------
    99.0      Direct obligations............      25,670      23,826      24,961
    99.0  Reimbursable obligations..........       7,034       6,467       6,667
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      32,704      30,293      31,628
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 21-2020-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      80,912      78,217      77,537
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      43,099      42,488      42,749
    ---------------------------------------------------------------------------

                         Operation and Maintenance, Army

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2020-2-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.04 Administration and servicewide
            activities......................                                   7
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 26.0)...................                                   7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   7
    23.95 Total new obligations.............                                  -7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                   7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   7

    [[Page 239]]

    73.20 Total outlays (gross).............                                  -5
    74.40 Obligated balance, end of year....                                   2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                   7
    90.00 Outlays...........................                                   5
    ---------------------------------------------------------------------------

                         Operation and Maintenance, Navy

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance of the Navy and the Marine Corps, as
    authorized by law; and not to exceed [$4,415,000] $4,463,000 can be used
    for emergencies and extraordinary expenses, to be expended on the
    approval or authority of the Secretary of the Navy, and payments may be
    made on his certificate of necessity for confidential military purposes,
    [$29,331,526,000] $28,287,690,000, to remain available until September
    30, 2005. (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1804-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................      20,495      20,877      20,035
    00.02 Mobilization......................         804         760         727
    00.03 Training and recruiting...........       2,173       2,412       2,472
    00.04 Administration and servicewide
            activities......................       4,812       5,056       5,054
    09.01 Reimbursable program..............       4,219       4,888       5,472
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      32,503      33,993      33,760
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          53          63
    22.00 New budget authority (gross)......      32,585      33,930      33,760
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.21 Unobligated balance transferred to
            other accounts..................          -1
    22.22 Unobligated balance transferred
            from other accounts.............          43
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      32,681      33,993      33,760
    23.95 Total new obligations.............     -32,503     -33,993     -33,760
    23.98 Unobligated balance expiring or
            withdrawn.......................        -114
    24.40 Unobligated balance carried
            forward, end of year............          63
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      26,867      29,092      28,288
    40.35   Appropriation rescinded.........         -12
    40.72   Reduction pursuant to P.L. 107-
              117...........................        -146
    40.75   Reduction pursuant to P.L. 107-
              248...........................                    -165
    41.00   Transferred to other accounts...         -17         -19
    42.00   Transferred from other accounts.       1,674         134
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      28,366      29,042      28,288
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       2,953       4,888       5,472
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................       1,266
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       4,219       4,888       5,472
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      32,585      33,930      33,760
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       6,656       7,774       8,124
    73.10 Total new obligations.............      32,503      33,993      33,760
    73.20 Total outlays (gross).............     -31,270     -33,644     -33,589
    73.40 Adjustments in expired accounts
            (net)...........................        -173
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................      -1,266
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................       1,326
    74.40 Obligated balance, end of year....       7,774       8,124       8,294
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      26,413      27,832      27,819
    86.93 Outlays from discretionary
            balances........................       4,857       5,812       5,770
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      31,270      33,644      33,589
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -3,901      -4,728      -5,312
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -164        -160        -160
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -4,065      -4,888      -5,472
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................      -1,266
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............       1,112
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      28,366      29,042      28,288
    90.00 Outlays...........................      27,205      28,756      28,117
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                     322         325
    99.01 Outlays...........................                     322         325
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1804-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       3,078       2,953       3,018
    11.3      Other than full-time permanent         139         123         130
    11.5      Other personnel compensation..         191         160         184
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       3,408       3,236       3,332
    12.1    Civilian personnel benefits.....         714         912       1,218
    13.0    Benefits for former personnel...          39          50          29
    21.0    Travel and transportation of
              persons.......................         663         496         514
    22.0    Transportation of things........         288         289         288
    23.1    Rental payments to GSA..........          33          31          32
    23.2    Rental payments to others.......          67          72          75
    23.3    Communications, utilities, and
              miscellaneous charges.........         756       1,375       1,146
    24.0    Printing and reproduction.......          94         101          99
    25.1    Advisory and assistance services         257         241         220
    25.2    Contracts with the private
              sector........................       2,325       2,475       2,696
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................       1,507       1,147       1,190
    25.3      Payments to foreign national
                indirect hire personnel.....          53          53          65
    25.3      Purchases from revolving funds       6,642       6,815       6,737
    25.4    Operation and maintenance of
              facilities....................         933       1,534       1,064
    25.7    Operation and maintenance of
              equipment.....................       3,382       4,116       3,693
    25.8    Subsistence and support of
              persons.......................         107         114         124
    26.0    Supplies and materials..........       3,935       3,032       2,869
    31.0    Equipment.......................       2,830       2,976       2,865
    32.0    Land and structures.............         251          40          32
                                               ---------   ---------  ----------
    99.0      Direct obligations............      28,284      29,105      28,288
    99.0  Reimbursable obligations..........       4,219       4,888       5,472
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      32,503      33,993      33,760
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 17-1804-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      56,788      55,459      57,481
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      20,963      19,129      22,935
    ---------------------------------------------------------------------------

                     Operation and Maintenance, Marine Corps

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance of the Marine Corps, as authorized by law,
    [$3,585,759,000] $3,406,656,000, to remain available until September 30,
    2005. (Department of Defense Appropriations Act, 2003.)

    [[Page 240]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1106-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................       2,198       2,706       2,502
    00.03 Training and recruiting...........         484         525         577
    00.04 Administration and servicewide
            activities......................         282         290         327
    09.01 Reimbursable program..............         517         412         412
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,481       3,933       3,818
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           2
    22.00 New budget authority (gross)......       3,479       3,931       3,819
    22.22 Unobligated balance transferred
            from other accounts.............           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,485       3,933       3,819
    23.95 Total new obligations.............      -3,481      -3,933      -3,818
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,916       3,562       3,407
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -15
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -20
    41.00   Transferred to other accounts...         -32         -25
    42.00   Transferred from other accounts.          93           2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,962       3,519       3,407
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         373         412         412
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         144
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         517         412         412
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,479       3,931       3,819
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,182       1,179       1,298
    73.10 Total new obligations.............       3,481       3,933       3,818
    73.20 Total outlays (gross).............      -3,437      -3,814      -3,779
    73.40 Adjustments in expired accounts
            (net)...........................         -40
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -144
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................         136
    74.40 Obligated balance, end of year....       1,179       1,298       1,337
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       2,447       2,787       2,711
    86.93 Outlays from discretionary
            balances........................         990       1,027       1,068
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,437       3,814       3,779
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -483        -392        -392
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -21         -20         -20
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -504        -412        -412
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -144
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............         131
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,962       3,519       3,407
    90.00 Outlays...........................       2,932       3,402       3,367
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      47          48
    99.01 Outlays...........................                      47          48
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1106-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         462         455         493
    11.3      Other than full-time permanent          51          24          37
    11.5      Other personnel compensation..          41          15          32
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         554         494         562
    12.1    Civilian personnel benefits.....         122         190         186
    21.0    Travel and transportation of
              persons.......................         127         149         150
    22.0    Transportation of things........          78          94          92
    23.2    Rental payments to others.......          47          48          50
    23.3    Communications, utilities, and
              miscellaneous charges.........         145         359         312
    24.0    Printing and reproduction.......          21          29          28
    25.1    Advisory and assistance services          42          37          40
    25.2    Other services..................         179         166         241
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................          89          90         106
    25.3      Payments to foreign national
                indirect hire personnel.....           6           3
    25.3      Purchases from revolving funds         307         332         411
    25.4    Operation and maintenance of
              facilities....................         261         349         439
    25.7    Operation and maintenance of
              equipment.....................          97         108         114
    25.8    Subsistence and support of
              persons.......................          10          10          10
    26.0    Supplies and materials..........         649         816         490
    31.0    Equipment.......................         146         163          91
    32.0    Land and structures.............          84          84          84
                                               ---------   ---------  ----------
    99.0      Direct obligations............       2,964       3,521       3,406
    99.0  Reimbursable obligations..........         517         412         412
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,481       3,933       3,818
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 17-1106-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      10,671      10,571      10,287
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,383       1,192       1,188
    ---------------------------------------------------------------------------

                      Operation and Maintenance, Air Force

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance of the Air Force, as authorized by law; and
    not to exceed [$7,902,000] $7,801,000 can be used for emergencies and
    extraordinary expenses, to be expended on the approval or authority of
    the Secretary of the Air Force, and payments may be made on his
    certificate of necessity for confidential military purposes,
    [$27,339,533,000: Provided, That notwithstanding any other provision of
    law, that of the funds available under this heading, $750,000 shall only
    be available to the Secretary of the Air Force for a grant to Florida
    Memorial College for the purpose of funding minority aviation training:
    Provided further, That of the amount provided under this heading,
    $2,000,000 may be obligated for the deployment of Air Force active and
    Reserve aircrews that perform combat search and rescue operations to
    operate and evaluate the United Kingdom's Royal Air Force EH-101
    helicopter, to receive training using that helicopter, and to exchange
    operational techniques and procedures regarding that helicopter]
    $27,793,931,000, to remain available until September 30, 2005.
    (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3400-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................      14,961      15,009      15,652
    00.02 Mobilization......................       4,499       3,806       3,453
    00.03 Training and recruiting...........       2,574       2,584       2,698
    00.04 Administration and servicewide
            activities......................       6,326       5,679       5,992
    09.01 Reimbursable program..............       3,014       2,370       2,699
                                               ---------   ---------  ----------

    [[Page 241]]

    10.00   Total new obligations...........      31,374      29,448      30,494
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      38
    22.00 New budget authority (gross)......      31,420      29,409      30,493
    22.22 Unobligated balance transferred
            from other accounts.............          68
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      31,488      29,447      30,493
    23.95 Total new obligations.............     -31,374     -29,448     -30,494
    23.98 Unobligated balance expiring or
            withdrawn.......................         -77
    24.40 Unobligated balance carried
            forward, end of year............          38
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      25,843      27,160      27,794
    40.35   Appropriation rescinded.........         -25
    40.72   Reduction pursuant to P.L. 107-
              117...........................        -195
    40.75   Reduction pursuant to P.L. 107-
              248...........................                    -157
    41.00   Transferred to other accounts...          -2          -4
    42.00   Transferred from other accounts.       2,786          40
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      28,407      27,039      27,794
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       2,271       2,370       2,699
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         742
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       3,013       2,370       2,699
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      31,420      29,409      30,493
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       8,111      10,639       9,677
    73.10 Total new obligations.............      31,374      29,448      30,494
    73.20 Total outlays (gross).............     -28,547     -30,409     -30,172
    73.40 Adjustments in expired accounts
            (net)...........................        -249
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -742
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................         691
    74.40 Obligated balance, end of year....      10,639       9,677       9,998
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      22,774      21,973      22,849
    86.93 Outlays from discretionary
            balances........................       5,773       8,436       7,323
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      28,547      30,409      30,172
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -2,725      -2,280      -2,586
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -233         -90        -113
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,958      -2,370      -2,699
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -742
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............         687
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      28,407      27,039      27,794
    90.00 Outlays...........................      25,587      28,039      27,473
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3400-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       2,925       2,986       3,128
    11.3      Other than full-time permanent         362         365         382
    11.5      Other personnel compensation..         213         291         224
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       3,500       3,642       3,734
    12.1    Civilian personnel benefits.....         868         938         976
    13.0    Benefits for former personnel...          34          72          75
    21.0    Travel and transportation of
              persons.......................       1,084         703         764
    22.0    Transportation of things........         476         418         436
    23.1    Rental payments to GSA..........          15          21          24
    23.2    Rental payments to others.......          87          46         148
    23.3    Communications, utilities, and
              miscellaneous charges.........         849         763         766
    24.0    Printing and reproduction.......          22          38          33
    25.1    Advisory and assistance services         396         389         375
    25.2    Contracts with the private
              sector........................         337       2,008       1,497
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         406         821         573
    25.3      Payments to foreign national
                indirect hire personnel.....          69          75          85
    25.3      Purchases from revolving funds       4,196       3,673       3,772
    25.4    Operation and maintenance of
              facilities....................       3,291       2,318       2,537
    25.6    Medical care....................                       7           3
    25.7    Operation and maintenance of
              equipment.....................       5,607       4,451       5,689
    26.0    Supplies and materials..........       6,422       6,115       5,739
    31.0    Equipment.......................         590         446         424
    41.0    Grants, subsidies, and
              contributions.................           8           1           1
    42.0    Insurance claims and indemnities          97         132         142
    43.0    Interest and dividends..........           6           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............      28,360      27,078      27,794
    99.0  Reimbursable obligations..........       3,014       2,370       2,700
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      31,374      29,448      30,494
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 57-3400-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      69,902      69,777      69,448
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      12,137      10,260      11,043
    ---------------------------------------------------------------------------

                     Operation and Maintenance, Defense-Wide

                          (including transfer of funds)

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance of activities and agencies of the Department
    of Defense (other than the military departments), as authorized by law,
    [$14,773,506,000], including not to exceed 3 passenger motor vehicles
    for replacement only for the Defense Security Service; $16,570,847,000,
    to remain available until September 30, 2005, of which not to exceed
    [$25,000,000] $40,000,000, may be available for the CINC initiative fund
    account; and of which not to exceed [$34,500,000] $70,000,000, can be
    used for emergencies and extraordinary expenses, to be expended on the
    approval or authority of the Secretary of Defense, and payments may be
    made on his certificate of necessity for confidential military purposes:
    Provided, [That notwithstanding any other provision of law, of the funds
    provided in this Act for Civil Military programs under this heading,
    $750,000 shall be available for a grant for Outdoor Odyssey, Roaring
    Run, Pennsylvania, to support the Youth Development and Leadership
    program and Department of Defense STARBASE program: Provided further,
    That none of the funds appropriated or otherwise made available by this
    Act may be used to plan or implement the consolidation of a budget or
    appropriations liaison office of the Office of the Secretary of Defense,
    the office of the Secretary of a military department, or the service
    headquarters of one of the Armed Forces into a legislative affairs or
    legislative liaison office: Provided further,] That [$4,675,000]
    $2,700,000, to remain available until expended, is available only for
    expenses relating to certain classified activities, and may be
    transferred as necessary by the Secretary to operation and maintenance
    appropriations or research, development, test and evaluation
    appropriations, to be merged with and to be available for the same time
    period as the appropriations to which transferred: Provided further,
    That any ceiling on the investment item unit cost of items that may be
    purchased with operation and maintenance funds shall not apply to the
    funds described in the preceding proviso: Provided further, That the
    transfer authority provided under this heading is in addition to any
    other transfer authority provided elsewhere in this Act. (Department of
    Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0100-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating Forces..................       2,374       1,886       2,272

    [[Page 242]]

    00.02 Mobilization......................          44          40          50
    00.03 Training and recruiting...........         231         243         264
    00.04 Administration and servicewide
            activities......................      10,813      12,648      13,985
    09.01 Reimbursable program..............         675         785         860
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      14,137      15,602      17,431
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          64         419
    22.00 New budget authority (gross)......      14,510      15,182      17,431
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
    22.21 Unobligated balance transferred to
            other accounts..................         -11
    22.22 Unobligated balance transferred
            from other accounts.............          27
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      14,595      15,601      17,431
    23.95 Total new obligations.............     -14,137     -15,602     -17,431
    23.98 Unobligated balance expiring or
            withdrawn.......................         -39
    24.40 Unobligated balance carried
            forward, end of year............         419
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      13,424      14,439      16,571
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -96
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -3
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -83
    41.00   Transferred to other accounts...        -210         -40
    42.00   Transferred from other accounts.         720          81
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      13,835      14,397      16,571
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         348         785         860
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         327
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         675         785         860
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      14,510      15,182      17,431
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,800       3,946       4,585
    73.10 Total new obligations.............      14,137      15,602      17,431
    73.20 Total outlays (gross).............     -14,164     -14,963     -16,859
    73.40 Adjustments in expired accounts
            (net)...........................        -360
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -327
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................         865
    74.40 Obligated balance, end of year....       3,946       4,585       5,158
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      10,722      11,554      13,256
    86.93 Outlays from discretionary
            balances........................       3,442       3,409       3,603
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      14,164      14,963      16,859
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -1,042        -754        -845
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -50         -31         -15
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,092        -785        -860
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -327
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............         744
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      13,835      14,397      16,571
    90.00 Outlays...........................      13,072      14,178      15,999
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................         322         343         353
    99.01 Outlays...........................         322         343         353
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0100-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       2,754       2,838       3,049
    11.3      Other than full-time permanent          57         103         105
    11.5      Other personnel compensation..          72          74          76
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       2,883       3,015       3,230
    12.1    Civilian personnel benefits.....         783         840         970
    13.0    Benefits for former personnel...          21          61          17
    21.0    Travel and transportation of
              persons.......................         459         513         581
    22.0    Transportation of things........         533         520         562
    23.1    Rental payments to GSA..........         122         123         164
    23.2    Rental payments to others.......         107         182         272
    23.3    Communications, utilities, and
              miscellaneous charges.........         489         426         790
    24.0    Printing and reproduction.......          16          19          25
    25.1    Advisory and assistance services         703         772         918
    25.2    Other services..................       1,892       2,217       2,608
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................       2,303       2,527       2,535
    25.3      Payments to foreign national
                indirect hire personnel.....          16          83          32
    25.3      Purchases from revolving funds          77          94         126
    25.4    Operation and maintenance of
              facilities....................         169         233         247
    25.5    Research and development
              contracts.....................           1
    25.7    Operation and maintenance of
              equipment.....................       1,132       1,173       1,405
    26.0    Supplies and materials..........       1,377       1,497       1,487
    31.0    Equipment.......................         325         411         549
    32.0    Land and structures.............          13           5           7
    41.0    Grants, subsidies, and
              contributions.................          28          88          29
    43.0    Interest and dividends..........           1           1           1
    91.0    Unvouchered.....................          12          17          17
                                               ---------   ---------  ----------
    99.0      Direct obligations............      13,462      14,817      16,572
    99.0  Reimbursable obligations..........         675         785         859
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      14,137      15,602      17,431
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-0100-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      45,207      45,408      47,056
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,308       2,503       2,404
    ---------------------------------------------------------------------------

                         Office of the Inspector General

        For expenses and activities of the Office of the Inspector General
    in carrying out the provisions of the Inspector General Act of 1978, as
    amended, [$157,165,000] $162,449,000, to remain available until
    September 30, 2005, of which [$155,165,000] $160,049,000 shall be for
    Operation and maintenance, of which not to exceed $700,000, is available
    for emergencies and extraordinary expenses to be expended on the
    approval or authority of the Inspector General, and payments may be made
    on the Inspector General's certificate of necessity for confidential
    military purposes and of which $300,000 shall be for Research,
    Development, Test and Evaluation; and of which [$2,000,000] $2,100,000,
    to remain available until September 30, [2005] 2006, shall be for
    Procurement. (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0107-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operation and Maintenance.........         149         155         160
    00.02 RDT&E.............................                       5           2
    00.03 Procurement.......................           1
    09.01 Reimbursable program..............                                   1
                                               ---------   ---------  ----------

    [[Page 243]]

    10.00   Total new obligations...........         150         160         163
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           3
    22.00 New budget authority (gross)......         151         157         163
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         153         160         163
    23.95 Total new obligations.............        -150        -160        -163
    24.40 Unobligated balance carried
            forward, end of year............           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         152         157         162
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         151         157         162
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                   1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         151         157         163
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          17          24
    73.10 Total new obligations.............         150         160         163
    73.20 Total outlays (gross).............        -153        -153        -162
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
    74.40 Obligated balance, end of year....          17          24          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         136         140         146
    86.93 Outlays from discretionary
            balances........................          17          13          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         153         153         162
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2                      -1
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         151         157         162
    90.00 Outlays...........................         151         153         161
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                       8           8
    99.01 Outlays...........................                       8           8
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0107-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          85          85          88
    11.5    Other personnel compensation....           7           7           7
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          92          92          95
    12.1  Civilian personnel benefits.......          24          25          26
    21.0  Travel and transportation of
            persons.........................           6           6           6
    23.1  Rental payments to GSA............          11          11          12
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           3           3
    25.2  Other services....................           1           1           1
          Other purchases of goods and services from
              Government accounts:

    25.3    Purchases of goods and services
              from other Federal agencies...           2           2           2
    25.3    Purchases from revolving funds..           1           1           1
    25.4  Operation and maintenance of
            facilities......................                       1           1
    25.7  Operation and maintenance of
            equipment.......................           4           5           5
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           5          10           8
    91.0  Unvouchered.......................                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         150         160         163
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-0107-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,215       1,201       1,214
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           1           2           2
    ---------------------------------------------------------------------------

                     Operation and Maintenance, Army Reserve

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance, including training, organization, and
    administration, of the Army Reserve; repair of facilities and equipment;
    hire of passenger motor vehicles; travel and transportation; care of the
    dead; recruiting; procurement of services, supplies, and equipment; and
    communications, [$1,970,180,000] $1,952,009,000, to remain available
    until September 30, 2005. (10 U.S.C. 1481-88, 3013-14, 3062, 4302, 4411-
    14, 4741; 37 U.S.C. 404; Department of Defense Appropriations Act,
    2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2080-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................       1,556       1,728       1,738
    00.04 Administration and servicewide
            activities......................         211         215         214
    09.01 Reimbursable program..............          52          72          72
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,819       2,016       2,024
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,819       2,016       2,024
    23.95 Total new obligations.............      -1,819      -2,016      -2,024
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,764       1,964       1,952
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -12
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -3
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -11
    41.00   Transferred to other accounts...                     -10
    42.00   Transferred from other accounts.          18
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,767       1,944       1,952
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          35          72          72
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          17
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          52          72          72
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,819       2,016       2,024
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         551         679         689
    73.10 Total new obligations.............       1,819       2,016       2,024
    73.20 Total outlays (gross).............      -1,661      -2,005      -1,998
    73.40 Adjustments in expired accounts
            (net)...........................         -17
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -17
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
    74.40 Obligated balance, end of year....         679         689         716
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,237       1,462       1,468
    86.93 Outlays from discretionary
            balances........................         424         543         530
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,661       2,005       1,998
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -45         -72         -72
    88.40     Non-Federal sources...........          -7
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -52         -72         -72
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -17
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,767       1,944       1,952

    [[Page 244]]

    90.00 Outlays...........................       1,609       1,933       1,926
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      43          46
    99.01 Outlays...........................                      43          46
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2080-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         426         515         343
    11.3      Other than full-time permanent          15          11          47
    11.5      Other personnel compensation..          14          18          15
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         455         544         405
    12.1    Civilian personnel benefits.....         128         132         139
    13.0    Benefits for former personnel...           4           5           6
    21.0    Travel and transportation of
              persons.......................         112         101         115
    22.0    Transportation of things........          18          25          28
    23.1    Rental payments to GSA..........           7           8           8
    23.2    Rental payments to others.......           9          11          11
    23.3    Communications, utilities, and
              miscellaneous charges.........          79          79          86
    24.0    Printing and reproduction.......          16          56          62
    25.1    Advisory and assistance services          36          14          15
    25.2    Other services..................          81          81          85
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Purchases of goods and
                services from other Federal
                agencies....................         258         294         303
    25.3      Purchases from revolving funds          72          84          96
    25.4    Operation and maintenance of
              facilities....................         152         122         168
    25.7    Operation and maintenance of
              equipment.....................          34          34          19
    25.8    Subsistence and support of
              persons.......................           7           3           3
    26.0    Supplies and materials..........         194         246         277
    31.0    Equipment.......................          99          99         120
    32.0    Land and structures.............           6           6           6
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,767       1,944       1,952
    99.0  Reimbursable obligations..........          52          72          72
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,819       2,016       2,024
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 21-2080-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      10,831      10,864      10,863
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         318         269         269
    ---------------------------------------------------------------------------

                     Operation and Maintenance, Navy Reserve

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance, including training, organization, and
    administration, of the Navy Reserve; repair of facilities and equipment;
    hire of passenger motor vehicles; travel and transportation; care of the
    dead; recruiting; procurement of services, supplies, and equipment; and
    communications, [$1,236,809,000] $1,171,921,000, to remain available
    until September 30, 2005. (10 U.S.C. 262, 503, 1481-88, 2110, 2202,
    2631-34, 5013, 5062, 5251, 6022, 18233a; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1806-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................         931       1,059         994
    00.04 Administration and servicewide
            activities......................          82         149         178
    09.01 Reimbursable program..............          44          37          38
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,057       1,245       1,210
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,064       1,245       1,210
    23.95 Total new obligations.............      -1,057      -1,245      -1,210
    23.98 Unobligated balance expiring or
            withdrawn.......................          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,002       1,237       1,172
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -5
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -7
    41.00   Transferred to other accounts...                     -22
    42.00   Transferred from other accounts.          22
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,019       1,208       1,172
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          28          37          38
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          17
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          44          37          38
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,064       1,245       1,210
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         381         380         406
    73.10 Total new obligations.............       1,057       1,245       1,210
    73.20 Total outlays (gross).............      -1,045      -1,220      -1,212
    73.40 Adjustments in expired accounts
            (net)...........................         -15
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -17
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          17
    74.40 Obligated balance, end of year....         380         406         403
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         766         886         862
    86.93 Outlays from discretionary
            balances........................         279         335         352
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,045       1,220       1,212
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -42         -35         -36
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -2          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -46         -37         -38
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -17
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,019       1,208       1,172
    90.00 Outlays...........................         999       1,183       1,174
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                       6           6
    99.01 Outlays...........................                       6           6
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1806-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          62          61          66
    11.3      Other than full-time permanent           2           2           1
    11.5      Other personnel compensation..           2           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          66          65          69
    12.1    Civilian personnel benefits.....          18          24          26
    13.0    Benefits for former personnel...                       1
    21.0    Travel and transportation of
              persons.......................          33          32          34
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          48         147         167
    24.0    Printing and reproduction.......           1           1           1

    [[Page 245]]

    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................          44          55          48
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................          35          30          34
    25.3      Purchases from revolving funds          84          94         107
    25.4    Operation and maintenance of
              facilities....................          53          54          52
    25.6    Medical care....................           2           2           2
    25.7    Operation and maintenance of
              equipment.....................         195         216         209
    25.8    Subsistence and support of
              persons.......................          10          13          10
    26.0    Supplies and materials..........         245         259         182
    31.0    Equipment.......................         165         202         216
    32.0    Land and structures.............          10          10          11
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,013       1,209       1,172
    99.0  Reimbursable obligations..........          44          36          38
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,057       1,245       1,210
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 17-1806-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................       1,488       1,563       1,486
        Reimbursable:
          Total compensable workyears:

    2001    Civilian full-time equivalent
              employment....................          36          25          24
    ---------------------------------------------------------------------------

                 Operation and Maintenance, Marine Corps Reserve

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance, including training, organization, and
    administration, of the Marine Corps Reserve; repair of facilities and
    equipment; hire of passenger motor vehicles; travel and transportation;
    care of the dead; recruiting; procurement of services, supplies, and
    equipment; and communications, [$187,532,000] $173,952,000, to remain
    available until September 30, 2005. (10 U.S.C. 503, 1481-88, 2110, 2202,
    2631-34, 5013, 5062, 5252, 6022, 18233a; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1107-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................         107         143         140
    00.04 Administration and servicewide
            activities......................          32          35          34
    09.01 Reimbursable program..............          17           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         156         180         175
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         156         180         175
    23.95 Total new obligations.............        -156        -180        -175
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         144         187         174
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -1
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -1
    41.00   Transferred to other accounts...          -6          -7
    42.00   Transferred from other accounts.           2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         139         179         174
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           9           2           2
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           8
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          17           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         156         180         175
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          74          58          75
    73.10 Total new obligations.............         156         180         175
    73.20 Total outlays (gross).............        -161        -164        -176
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -8
    74.40 Obligated balance, end of year....          58          75          74
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         105         116         112
    86.93 Outlays from discretionary
            balances........................          56          49          64
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         161         164         176
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -9          -2          -2
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         139         179         174
    90.00 Outlays...........................         152         162         174
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1107-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           6           8
    12.1    Civilian personnel benefits.....           1           2           1
    21.0    Travel and transportation of
              persons.......................          15          15          17
    22.0    Transportation of things........           5           4           6
    23.1    Rental payments to GSA..........           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          16          51          45
    24.0    Printing and reproduction.......           1           1           1
    25.1    Advisory and assistance services           4           4           6
    25.2    Other services..................           4           6           7
    25.3    Purchases from revolving funds..          23          26          30
    25.4    Operation and maintenance of
              facilities....................          15          15          13
    25.7    Operation and maintenance of
              equipment.....................          13          15          13
    26.0    Supplies and materials..........          29          24          18
    31.0    Equipment.......................           4           7           7
                                               ---------   ---------  ----------
    99.0      Direct obligations............         139         178         174
    99.0  Reimbursable obligations..........          17           2           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         156         180         175
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 17-1107-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         150         153         152
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           2           3           3
    ---------------------------------------------------------------------------

                  Operation and Maintenance, Air Force Reserve

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance, including training, organization, and
    administration, of the Air Force Reserve; repair of facilities and
    equipment; hire of passenger motor vehicles; travel and transportation;
    care of the dead; recruiting; procurement of services, supplies, and
    equipment; and communications, [$2,163,104,000] $2,179,188,000, to
    remain available until September 30, 2005. (10 U.S.C. 264, 510-11, 1124,
    1481-88, 2232-37, 8013, 8541-42, 8721-23, 9301-04, 9315, 9411-14, 9531,
    9536, 9561-63, 9593, 9741, 9743, 18233a; 37 U.S.C. 404-11; Department of
    Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3740-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................       1,891       2,043       2,074
    00.04 Administration and servicewide
            activities......................         108         107         105
    09.01 Reimbursable program..............         283          64          66
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,282       2,214       2,245
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       2,287       2,214       2,245

    [[Page 246]]

    23.95 Total new obligations.............      -2,282      -2,214      -2,245
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,020       2,162       2,179
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -14
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -1
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -12
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,006       2,150       2,179
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         241          64          66
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          40
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         281          64          66
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,287       2,214       2,245
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         401         601         492
    73.10 Total new obligations.............       2,282       2,214       2,245
    73.20 Total outlays (gross).............      -2,046      -2,324      -2,225
    73.40 Adjustments in expired accounts
            (net)...........................           4
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -40
    74.40 Obligated balance, end of year....         601         492         512
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,746       1,802       1,827
    86.93 Outlays from discretionary
            balances........................         300         523         398
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,046       2,324       2,225
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -256         -63         -65
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -2          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -258         -64         -66
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -40
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,006       2,150       2,179
    90.00 Outlays...........................       1,789       2,260       2,159
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      55          57
    99.01 Outlays...........................                      55          57
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3740-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................         798         892         929
    21.0    Travel and transportation of
              persons.......................          22          18          21
    22.0    Transportation of things........           2           3           3
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          30          30          29
    24.0    Printing and reproduction.......           2           2           3
    25.1    Advisory and assistance services           3           7           7
    25.2    Other services..................         139         110         101
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................                       2           2
    25.3      Purchases from revolving funds         481         487         508
    25.4    Operation and maintenance of
              facilities....................         120          69          71
    25.7    Operation and maintenance of
              equipment.....................          26          31          29
    26.0    Supplies and materials..........         296         475         441
    31.0    Equipment.......................          72          17          27
    42.0    Insurance claims and indemnities           8           7           7
                                               ---------   ---------  ----------
    99.0      Direct obligations............       2,000       2,151       2,179
    99.0  Reimbursable obligations..........         282          63          66
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,282       2,214       2,245
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 57-3740-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      12,848      13,861      13,813
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         147         299         299
    ---------------------------------------------------------------------------

                 Operation and Maintenance, Army National Guard

        For expenses of training, organizing, and administering the Army
    National Guard, including medical and hospital treatment and related
    expenses in non-Federal hospitals; maintenance, operation, and repairs
    to structures and facilities; hire of passenger motor vehicles;
    personnel services in the National Guard Bureau; travel expenses (other
    than mileage), as authorized by law for Army personnel on active duty,
    for Army National Guard division, regimental, and battalion commanders
    while inspecting units in compliance with National Guard Bureau
    regulations when specifically authorized by the Chief, National Guard
    Bureau; supplying and equipping the Army National Guard as authorized by
    law; and expenses of repair, modification, maintenance, and issue of
    supplies and equipment (including aircraft), [$4,261,707,000]
    $4,211,331,000, to remain available until September 30, 2005. (10 U.S.C.
    261-80, 2231-38, 2511, 4651; 32 U.S.C. 701-02, 709, 18233a; Department
    of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2065-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................       3,500       3,971       3,947
    00.04 Administration and servicewide
            activities......................         247         268         264
    09.01 Reimbursable program..............         150         160         160
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,897       4,399       4,371
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           3
    22.00 New budget authority (gross)......       3,904       4,397       4,371
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,905       4,399       4,371
    23.95 Total new obligations.............      -3,897      -4,399      -4,371
    23.98 Unobligated balance expiring or
            withdrawn.......................          -5
    24.40 Unobligated balance carried
            forward, end of year............           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,759       4,261       4,211
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -26
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -6
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -24
    42.00   Transferred to other DoD
              accounts......................          27
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,754       4,237       4,211
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         139         160         160
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          11
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         150         160         160
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,904       4,397       4,371
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,156       1,246       1,385
    73.10 Total new obligations.............       3,897       4,399       4,371

    [[Page 247]]

    73.20 Total outlays (gross).............      -3,745      -4,261      -4,332
    73.40 Adjustments in expired accounts
            (net)...........................         -68
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -11
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          18
    74.40 Obligated balance, end of year....       1,246       1,385       1,422
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       2,823       3,189       3,171
    86.93 Outlays from discretionary
            balances........................         922       1,072       1,161
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,745       4,261       4,332
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -142        -158        -158
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -11          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -153        -160        -160
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -11
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,754       4,237       4,211
    90.00 Outlays...........................       3,592       4,101       4,172
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      87          93
    99.01 Outlays...........................                      87          93
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2065-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         960       1,002       1,041
    11.3      Other than full-time permanent         107         111         115
    11.5      Other personnel compensation..          13          12          12
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       1,080       1,124       1,167
    12.1    Civilian personnel benefits.....         319         342         356
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          87          73          73
    22.0    Transportation of things........          46          45          46
    23.1    Rental payments to GSA..........           8          26          17
    23.2    Rental payments to others.......          15          11           8
    23.3    Communications, utilities, and
              miscellaneous charges.........         142         200         168
    24.0    Printing and reproduction.......          24           3           3
    25.1    Advisory and assistance services          54          17          48
    25.2    Other services..................          76          99         101
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         102         116         116
    25.3      Purchases from revolving funds          45         177         198
    25.4    Operation and maintenance of
              facilities....................         466         502         461
    25.6    Medical care....................          36          59          51
    25.7    Operation and maintenance of
              equipment.....................         190         132          60
    25.8    Subsistence and support of
              persons.......................           4          11           7
    26.0    Supplies and materials..........         898       1,016       1,128
    31.0    Equipment.......................         105         125          81
    32.0    Land and structures.............          51         160         121
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,749       4,240       4,212
    99.0  Reimbursable obligations..........         148         159         159
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,897       4,399       4,371
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 21-2065-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      25,580      25,698      25,938
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................
    ---------------------------------------------------------------------------

                  Operation and Maintenance, Air National Guard

        For operation and maintenance of the Air National Guard, including
    medical and hospital treatment and related expenses in non-Federal
    hospitals; maintenance, operation, repair, and other necessary expenses
    of facilities for the training and administration of the Air National
    Guard, including repair of facilities, maintenance, operation, and
    modification of aircraft; transportation of things, hire of passenger
    motor vehicles; supplies, materials, and equipment, as authorized by law
    for the Air National Guard; and expenses incident to the maintenance and
    use of supplies, materials, and equipment, including such as may be
    furnished from stocks under the control of agencies of the Department of
    Defense; travel expenses (other than mileage) on the same basis as
    authorized by law for Air National Guard personnel on active Federal
    duty, for Air National Guard commanders while inspecting units in
    compliance with National Guard Bureau regulations when specifically
    authorized by the Chief, National Guard Bureau, [$4,117,585,000]
    $4,402,646,000, to remain available until September 30, 2005. (10 U.S.C.
    261-80, 2232-38, 2511, 8012, 8721-22, 9741, 9743; 32 U.S.C. 106, 107,
    320, 701-03, 709, 18233a; 37 U.S.C. 404-11; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3840-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating forces..................       3,917       4,058       4,366
    00.04 Administration and servicewide
            activities......................          18          33          36
    09.01 Reimbursable program..............         848         251         265
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,783       4,343       4,668
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       4,799       4,343       4,668
    23.95 Total new obligations.............      -4,783      -4,343      -4,668
    23.98 Unobligated balance expiring or
            withdrawn.......................         -16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,980       4,115       4,403
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -28
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -3
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -23
    41.00   Transferred to other DoD
              Accounts......................          -4
    42.00   Transferred from other DoD
              Accounts......................           6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,951       4,092       4,403
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         611         251         265
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         237
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         848         251         265
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,799       4,343       4,668
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         766       1,017         829
    73.10 Total new obligations.............       4,783       4,343       4,668
    73.20 Total outlays (gross).............      -4,315      -4,530      -4,584
    73.40 Adjustments in expired accounts
            (net)...........................         -42
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -237
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          62
    74.40 Obligated balance, end of year....       1,017         829         913
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       3,648       3,606       3,876
    86.93 Outlays from discretionary
            balances........................         667         924         708
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,315       4,530       4,584
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -673        -248        -262
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -2          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -675        -251        -265

    [[Page 248]]

          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -237
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          64
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,951       4,092       4,403
    90.00 Outlays...........................       3,640       4,279       4,319
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      88          94
    99.01 Outlays...........................                      88          94
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3840-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         906       1,029       1,072
    11.3      Other than full-time permanent          64          73          76
    11.5      Other personnel compensation..          30          34          35
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       1,000       1,136       1,183
    12.1    Civilian personnel benefits.....         290         338         353
    13.0    Benefits for former personnel...           2           4           4
    21.0    Travel and transportation of
              persons.......................          49          43          45
    22.0    Transportation of things........          19          10          12
    23.2    Rental payments to others.......           4           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          61          65          64
    24.0    Printing and reproduction.......           1           2           2
    25.1    Advisory and assistance services          16           6           6
    25.2    Other services..................          50          43          49
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................           3          10           7
    25.3      Purchases from revolving funds         710         564         621
    25.4    Operation and maintenance of
              facilities....................         387         396         356
    25.6    Medical care....................           1           2           3
    25.7    Operation and maintenance of
              equipment.....................         115         124         250
    26.0    Supplies and materials..........       1,067       1,275       1,381
    31.0    Equipment.......................         145          59          54
    42.0    Insurance claims and indemnities          14          13          13
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,934       4,092       4,405
    99.0  Reimbursable obligations..........         849         251         263
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,783       4,343       4,668
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 57-3840-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      20,864      23,290      23,533
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         676         869         842
    ---------------------------------------------------------------------------

                      Quality of Life Enhancements, Defense

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0839-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Quality of life enhancements......          46
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 26.0)...................          46
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          45
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          54
    23.95 Total new obligations.............         -46
    23.98 Unobligated balance expiring or
            withdrawn.......................          -8
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         320         134          49
    73.10 Total new obligations.............          46
    73.20 Total outlays (gross).............        -225         -85         -27
    73.40 Adjustments in expired accounts
            (net)...........................           1
    73.45 Recoveries of prior year
            obligations.....................          -9
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
    74.40 Obligated balance, end of year....         134          49          21
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         225          85          27
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         224          85          27
    ---------------------------------------------------------------------------

                Overseas Contingency Operations Transfer Account

                          (including transfer of funds)

        For expenses directly relating to Overseas Contingency Operations by
    United States military forces, [$5,000,000] $50,000,000, to remain
    available until expended: Provided, That the Secretary of Defense may
    transfer these funds only to military personnel accounts; operation and
    maintenance accounts within this title; the Defense Health Program
    appropriation; procurement accounts; research, development, test and
    evaluation accounts; and to working capital funds: Provided further,
    That the funds transferred shall be merged with and shall be available
    for the same purposes and for the same time period, as the appropriation
    to which transferred: Provided further, That upon a determination that
    all or part of the funds transferred from this appropriation are not
    necessary for the purposes provided herein, such amounts may be
    transferred back to this appropriation: Provided further, That the
    transfer authority provided in this paragraph is in addition to any
    other transfer authority contained elsewhere in this Act. (Department of
    Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0118-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Overseas Contingency Operations
            Transfer Fund...................                      37          50
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 26.0)...................                      37          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         129          32
    22.00 New budget authority (gross)......          13           5          50
    22.21 Unobligated balance transferred to
            other accounts..................        -109
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          32          37          50
    23.95 Total new obligations.............                     -37         -50
    24.40 Unobligated balance carried
            forward, end of year............          32
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          50           5          50
    41.00   Transferred to other accounts...         -37
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          13           5          50
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   1
    73.10 Total new obligations.............                      37          50
    73.20 Total outlays (gross).............                     -36         -38
    74.40 Obligated balance, end of year....                       1          13
    ----------------------------------------------------------------------------

    [[Page 249]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       4          37
    86.93 Outlays from discretionary
            balances........................                      32           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      36          38
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          13           5          50
    90.00 Outlays...........................                      36          38
    ---------------------------------------------------------------------------

                          OPLAN 34A-35 P.O.W. Payments

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0840-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           1           1
    22.00 New budget authority (gross)......          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           1           1
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          -4
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.20 Total outlays (gross).............
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -4
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        This account provides funding for payments to certain individuals,
    who served time in prisoner of war camps, and their families. The
    payments are required by section 657 of Public Law 104-201 as amended by
    section 658 of Public Law 105-261.

              United States Courts of Appeals for the Armed Forces

        For salaries and expenses necessary for the United States Court of
    Appeals for the Armed Forces, [$9,614,000] $10,333,000 of which not to
    exceed $2,500 can be used for official representation purposes. (10
    U.S.C. 867; Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0104-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.04 Admin and Assoc Act...............           9          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           9          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9          10          10
    23.95 Total new obligations.............          -9         -10         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           9          10          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           5           2
    73.10 Total new obligations.............           9          10          10
    73.20 Total outlays (gross).............          -8         -13         -10
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....           5           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8           9           9
    86.93 Outlays from discretionary
            balances........................                       4           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8          13          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9          10          10
    90.00 Outlays...........................           8          13          10
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................
    99.01 Outlays...........................
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0104-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           5           5
    12.1  Civilian personnel benefits.......                       1           1
    23.1  Rental payments to GSA............           1           1           1
    25.2  Other services....................           2           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           9          10          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-0104-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          52          59          59
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................
    ---------------------------------------------------------------------------

            Counter-Terrorism and Operational Response Transfer Fund

                          (including transfer of funds)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0099-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         478
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -3
    41.00   Transferred to other accounts...        -475
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

             Drug Interdiction and Counter-Drug Activities, Defense

                          (including transfer of funds)

        For drug interdiction and counter-drug activities of the Department
    of Defense, for transfer to appropriations available to the Department
    of Defense for military personnel of the reserve components serving
    under the provisions of title 10 and title 32, United States Code; for
    Operation and maintenance; for Procurement; and for Research,
    development, test and evaluation, [$881,907,000] $817,371,000, to remain
    available until September 30, 2005: Provided, That the [The] funds
    appropriated under this heading shall be available for obligation for
    the same time period and for the same purpose as the appropriation to
    which transferred: Provided further, That upon a determination that all
    or part of the funds transferred from this appropriation are not
    necessary for the purposes provided herein, such amounts may be
    transferred back to this appropriation: Provided further, That the
    transfer authority provided under this heading is in addition to any
    other transfer authority contained elsewhere in this Act. (Department of
    Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0105-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Drug interdiction and counter-drug
            activities......................                     872         817
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                     872         817
    ----------------------------------------------------------------------------

    [[Page 250]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11
    22.00 New budget authority (gross)......                     872         817
    22.21 Unobligated balance transferred to
            other accounts..................         -11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                     872         817
    23.95 Total new obligations.............                    -872        -817
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         843         872         817
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -6
    41.00   Transferred to other DoD
              accounts......................        -842
    42.00   Transferred from the Executive
              Office of the President.......           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                     872         817
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                 222
    73.10 Total new obligations.............                     872         817
    73.20 Total outlays (gross).............                    -650        -782
    74.40 Obligated balance, end of year....                     222         257
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                     650         609
    86.93 Outlays from discretionary
            balances........................                                 174
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                     650         782
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     872         817
    90.00 Outlays...........................                     650         782
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0105-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................                      70          82
    22.0  Transportation of things..........                      23          26
    23.2  Rental payments to others.........                       6           4
    23.3  Communications, utilities, and
            miscellaneous charges...........                      19          14
    25.1  Advisory and assistance services..                      24          54
    25.2  Other services....................                     100         109
    25.3  Other purchases of goods and
            services from Government
            accounts........................                     167         241
    25.4  Operation and maintenance of
            facilities......................                      13          13
    25.7  Operation and maintenance of
            equipment.......................                      58          61
    26.0  Supplies and materials............                     377         194
    31.0  Equipment.........................                      15          19
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                     872         817
    ---------------------------------------------------------------------------

           [Support for International Sporting Competitions, Defense]

        [For logistical and security support for international sporting
    competitions (including pay and non-travel related allowances only for
    members of the Reserve Components of the Armed Forces of the United
    States called or ordered to active duty in connection with providing
    such support), $19,000,000, to remain available until expended.]
    (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0838-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Support for international sporting
            competitions....................          16          19
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 26.0)...................          16          19
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10          10          10
    22.00 New budget authority (gross)......          16          19
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          26          29          10
    23.95 Total new obligations.............         -16         -19
    24.40 Unobligated balance carried
            forward, end of year............          10          10          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          16          19
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           1           2
    73.10 Total new obligations.............          16          19
    73.20 Total outlays (gross).............         -16         -18          -8
    74.40 Obligated balance, end of year....           1           2          -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          16          10
    86.93 Outlays from discretionary
            balances........................                       8           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          16          18           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          19
    90.00 Outlays...........................          17          18           8
    ---------------------------------------------------------------------------

                     Foreign Currency Fluctuations, Defense

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0801-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         988         921         921
    22.21 Unobligated balance transferred to
            other accounts..................        -615
    22.22 Unobligated balance transferred
            from other accounts.............         559
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         932         921         921
    23.98 Unobligated balance expiring or
            withdrawn.......................         -11
    24.40 Unobligated balance carried
            forward, end of year............         921         921         921
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        This account transfers funds, to operation and maintenance and
    military personnel appropriations, available for Defense activities in
    foreign countries to finance upward adjustment of recorded obligations
    due to foreign currency fluctuations above the budget rate. Transfers
    are made as needed to meet disbursement requirements in excess of funds
    otherwise available for obligation adjustment. Net gains resulting from
    favorable exchange rates are returned to this appropriation and are
    available for subsequent transfer when needed.

                                 Disaster Relief

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0132-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2
    22.00 New budget authority (gross)......          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.73   Reduction pursuant to P.L. 107-
              206...........................          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -2
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

    [[Page 251]]

                             Defense Health Program

        For expenses, not otherwise provided for, for medical and health
    care programs of the Department of Defense, as authorized by law,
    [$14,843,542,000] $15,270,509,000, of which [$14,100,386,000]
    $14,876,887,000 shall be for Operation and maintenance[, of which not to
    exceed 2 percent shall] to remain available until September 30, [2004]
    2005; of which [$284,242,000] $327,826,000, to remain available for
    obligation until September 30, [2005] 2006, shall be for Procurement; of
    which [$458,914,000] $65,796,000, to remain available for obligation
    until September 30, [2004] 2005, shall be for Research, development,
    test and evaluation[, and of which not less than $7,000,000 shall be
    available for HIV prevention educational activities undertaken in
    connection with U.S. military training, exercises, and humanitarian
    assistance activities conducted primarily in African nations].
    (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0130-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operation and Maintenance.........      16,823      14,531      14,877
    00.02 Procurement.......................         284         389         351
    00.03 Research, Development, Test and
            Evaluation......................         481         864         105
    09.01 Reimbursable program..............         835       5,049       5,705
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      18,423      20,833      21,038
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,002       1,098         107
    22.00 New budget authority (gross)......      18,457      19,842      20,976
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          69
    22.21 Unobligated balance transferred to
            other accounts..................         -14
    22.22 Unobligated balance transferred
            from other accounts.............          26
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      19,540      20,940      21,083
    23.95 Total new obligations.............     -18,423     -20,833     -21,038
    23.98 Unobligated balance expiring or
            withdrawn.......................         -19
    24.40 Unobligated balance carried
            forward, end of year............       1,098         107          45
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      18,388      14,845      15,271
    40.72   Reduction pursuant to P.L. 107-
              117...........................        -128
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -44
    41.00   Transferred to other accounts...      -1,203          -8
    42.00   Transferred from other accounts.         552
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      17,609      14,793      15,271
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         606         604         940
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         242
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         848         604         940
          Mandatory:

    69.00   Offsetting collections (cash)...                   4,445       4,765
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      18,457      19,842      20,976
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,940       5,727       5,372
    73.10 Total new obligations.............      18,423      20,833      21,038
    73.20 Total outlays (gross).............     -15,936     -21,187     -21,131
    73.40 Adjustments in expired accounts
            (net)...........................        -389
    73.45 Recoveries of prior year
            obligations.....................         -69
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -242
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -1
    74.40 Obligated balance, end of year....       5,727       5,372       5,278
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      13,295      11,915      12,708
    86.93 Outlays from discretionary
            balances........................       2,641       4,827       3,658
    86.97 Outlays from new mandatory
            authority.......................                   4,445       4,765
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      15,936      21,187      21,131
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources.............        -365        -505        -845
    88.00       Federal sources.............                  -4,445      -4,765
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -241         -99         -95
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -606      -5,049      -5,705
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -242
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      17,609      14,793      15,271
    90.00 Outlays...........................      15,330      16,138      15,426
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                     126      -4,000
    99.01 Outlays...........................                     126      -4,000
    ---------------------------------------------------------------------------

        The Defense Health Program provides care to present and retired
    members of the Armed Forces, their dependents, and other eligible
    beneficiaries. Beneficiaries may obtain care from Army, Navy, and Air
    Force facilities or through the civilian health care network under the
    TRICARE program.

        Accrual accounting for Medicare-eligible beneficiaries began in
    2003, and health care for these beneficiaries is funded from the
    Uniformed Services Retiree Health Care Fund. The budget includes a
    proposal to extend accrual financing to non-medicare eligible retiree
    healthcare.

        The Defense Health Program also manages Research and Development
    funds appropriated by Congress. These funds primarily support medical
    information management systems development.

        The estimates in the following table support the President's Budget
    proposal to extend accrual financing for health care provided to non-
    medicare eligible uniformed services retirees.

     Uniformed Services Non-Medicare Eligible Retiree Health Care Accrual
                 Proposal Effects on Defense Accounts in 2004

                             (Dollars in millions)
                                               Mandatory     Discretionary
                                             -----------------------------
    Uniformed Services Retiree Health Care
      Fund Spendout to the Defense Health
      Account for Non-Medicare Eligible
      Retiree Health Care in Mandatory
      Offsetting Collections, Outlays, and
      Spending Authority for:
     Defense................................         4,133

     Coast Guard............................           117

     Public Health Service..................            54

     National Oceanic and Atmospheric
      Administration........................             2

                                             -------------

       Total Increase in Defense Health
        Mandatory Offsetting Collections....         4,306

     Adjustments to Defense Discretionary
      Appropriation Payments to the
      Uniformed Services Retiree Health Care
      Fund Defense Military Personnel
      Accounts..............................                         5,725
      Adjustments to Defense Health Account.                        -4,133
                                                            --------------

     Change to Defense Discretionary
      Appropriation.........................                         1,592

        Medical care is provided in military facilities as follows:

                                            2002         2003        2004
      Hospitals/Medical Centers.........          75          75          75
      Clinics...........................         461         461         461

        These hospitals, medical centers, and clinics are staffed by:

                                                 Staff in thousands
                                        ------------------------------------
                                            2002         2003        2004
      Civilian work years...............          41          40          40
      Military personnel................          92          92          92
      Percent of all active duty
        military personnel..............         6.6         6.6         6.9

        The number of beneficiaries using the Defense Health Program is
    estimated as follows:

        Eligible Beneficiary Category       FY02         FY03        FY04
    Active Duty Personnel...............   1,608,804   1,652,701   1,621,050

    [[Page 252]]

        (Medicare Eligible Active Duty..       (116)        (99)       (102)
    Active Duty Family Members..........   2,219,010   2,285,578   2,233,932
        (Medicare Eligible Active Duty
          Family Members)...............     (3,661)     (3,637)     (3,659)
    Retirees............................   1,946,716   1,945,508   1,957,930
        (Medicare Eligible Retirees)....   (800,562)   (807,630)   (820,522)
    Retiree Family Members and Survivors   2,747,956   2,765,296   2,782,790
        (Medicare Eligible Retiree
          Family Members and Survivors).   (741,372)   (774,331)   (802,721)
                                        ------------------------------------
            Total.......................   8,522,486   8,649,083   8,595,702
            (Medicare Eligible Total)... (1,545,711) (1,585,697) (1,627,003)

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0130-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Operation and Maintenance.........                  14,053      14,877
    0702  Procurement.......................                     457          66
    0703  Research, Development, Test and
            Evaluation......................                     283         328
                                               ---------   ---------  ----------
    0791    Total direct program............                  14,794      15,271
    0801  Reimbursable program..............                   5,049       5,705
                                               ---------   ---------  ----------
    0893  Total budget plan.................                  19,843      20,975
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0130-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          23          24          24
    11.3      Other than full-time permanent                                   1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          24          25          26
    12.1    Civilian personnel benefits.....           5           5           5
    21.0    Travel and transportation of
              persons.......................         177         175         178
    22.0    Transportation of things........           7           7           7
    23.1    Rental payments to GSA..........          12          13          13
    23.2    Rental payments to others.......          29          35          36
    23.3    Communications, utilities, and
              miscellaneous charges.........         149         172         174
    24.0    Printing and reproduction.......          16          13          13
    25.1    Advisory and assistance services         106         107         110
    25.2    Other services..................         212         224         236
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................       2,040       2,036       2,083
    25.3      Payments to foreign national
                indirect hire personnel.....          33          43          44
    25.4    Operation and maintenance of
              facilities....................         384         276         307
    25.5    Research and development
              contracts.....................         461          79          61
    25.6    Medical care....................       9,912       8,809       9,072
    25.7    Operation and maintenance of
              equipment.....................         114          96          98
    26.0    Supplies and materials..........       3,173       2,960       2,158
    31.0    Equipment.......................         712         687         690
    41.0    Grants, subsidies, and
              contributions.................          22          22          22
                                               ---------   ---------  ----------
    99.0      Direct obligations............      17,588      15,784      15,333
    99.0  Reimbursable obligations..........         835       5,049       5,705
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      18,423      20,833      21,038
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-0130-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         288         297         297
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................
    ---------------------------------------------------------------------------

          The Department of Defense Environmental Restoration Accounts

                         Environmental Restoration, Army

                          (including transfer of funds)

        For the Department of the Army, [$395,900,000] $396,018,000, to
    remain available until transferred: Provided, That the Secretary of the
    Army shall, upon determining that such funds are required for
    environmental restoration, reduction and recycling of hazardous waste,
    removal of unsafe buildings and debris of the Department of the Army, or
    for similar purposes, transfer the funds made available by this
    appropriation to other appropriations made available to the Department
    of the Army, to be merged with and to be available for the same purposes
    and for the same time period as the appropriations to which transferred:
    Provided further, That upon a determination that all or part of the
    funds transferred from this appropriation are not necessary for the
    purposes provided herein, such amounts may be transferred back to this
    appropriation. (Department of Defense Appropriations Act, 2003.)

                         Environmental Restoration, Navy

                          (including transfer of funds)

        For the Department of the Navy, [$256,948,000] $256,153,000, to
    remain available until transferred: Provided, That the Secretary of the
    Navy shall, upon determining that such funds are required for
    environmental restoration, reduction and recycling of hazardous waste,
    removal of unsafe buildings and debris of the Department of the Navy, or
    for similar purposes, transfer the funds made available by this
    appropriation to other appropriations made available to the Department
    of the Navy, to be merged with and to be available for the same purposes
    and for the same time period as the appropriations to which transferred:
    Provided further, That upon a determination that all or part of the
    funds transferred from this appropriation are not necessary for the
    purposes provided herein, such amounts may be transferred back to this
    appropriation. (Department of Defense Apropriations Act, 2003.)

                      Environmental Restoration, Air Force

                          (including transfer of funds)

        For the Department of the Air Force, [$389,773,000] $384,307,000, to
    remain available until transferred: Provided, That the Secretary of the
    Air Force shall, upon determining that such funds are required for
    environmental restoration, reduction and recycling of hazardous waste,
    removal of unsafe buildings and debris of the Department of the Air
    Force, or for similar purposes, transfer the funds made available by
    this appropriation to other appropriations made available to the
    Department of the Air Force, to be merged with and to be available for
    the same purposes and for the same time period as the appropriations to
    which transferred: Provided further, That upon a determination that all
    or part of the funds transferred from this appropriation are not
    necessary for the purposes provided herein, such amounts may be
    transferred back to this appropriation. (Department of Defense
    Apropriations Act, 2003.)

                     Environmental Restoration, Defense-Wide

                          (including transfer of funds)

        For the Department of Defense, [$23,498,000] $24,081,000, to remain
    available until transferred: Provided, That the Secretary of Defense
    shall, upon determining that such funds are required for environmental
    restoration, reduction and recycling of hazardous waste, removal of
    unsafe buildings and debris of the Department of Defense, or for similar
    purposes, transfer the funds made available by this appropriation to
    other appropriations made available to the Department of Defense, to be
    merged with and to be available for the same purposes and for the same
    time period as the appropriations to which transferred: Provided
    further, That upon a determination that all or part of the funds
    transferred from this appropriation are not necessary for the purposes
    provided herein, such amounts may be transferred back to this
    appropriation. (Department of Defense Appropriations Act, 2003.)

    [[Page 253]]

                       Environmental Restoration, Defense

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0810-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Department of Army................                     394         396
    00.02 Department of Navy................                     256         256
    00.03 Department of Air Force...........                     387         384
    00.04 Defense-wide......................                      24          24
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................                   1,061       1,060
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1
    22.00 New budget authority (gross)......                   1,060       1,061
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1       1,061       1,061
    23.95 Total new obligations.............                  -1,061      -1,060
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,056       1,066       1,061
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -8
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -6
    41.00   Transfer to other DoD accounts..      -1,048
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                   1,060       1,061
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                 828
    73.10 Total new obligations.............                   1,061       1,060
    73.20 Total outlays (gross).............           1        -233        -710
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....                     828       1,178
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                     233         233
    86.93 Outlays from discretionary
            balances........................          -1                     477
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          -1         233         710
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                   1,060       1,061
    90.00 Outlays...........................          -1         233         710
    ---------------------------------------------------------------------------

             Environmental Restoration, Formerly Used Defense Sites

                          (including transfer of funds)

        For the Department of the Army, [$246,102,000] $212,619,000, to
    remain available until transferred: Provided, That the Secretary of the
    Army shall, upon determining that such funds are required for
    environmental restoration, reduction and recycling of hazardous waste,
    removal of unsafe buildings and debris at sites formerly used by the
    Department of Defense, transfer the funds made available by this
    appropriation to other appropriations made available to the Department
    of the Army, to be merged with and to be available for the same purposes
    and for the same time period as the appropriations to which transferred:
    Provided further, That upon a determination that all or part of the
    funds transferred from this appropriation are not necessary for the
    purposes provided herein, such amounts may be transferred back to this
    appropriation. (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0811-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.05 Environmental restoration,
            formerly used Defense sites.....                     247         213
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................                     247         213
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       2
    22.00 New budget authority (gross)......                     245         213
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2         247         213
    23.95 Total new obligations.............                    -247        -213
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         222         246         213
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -1
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -1
    41.00   Transfer to other DoD accounts..        -221
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                     245         213
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                 193
    73.10 Total new obligations.............                     247         213
    73.20 Total outlays (gross).............           2         -54        -157
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.40 Obligated balance, end of year....                     193         249
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      54          47
    86.93 Outlays from discretionary
            balances........................          -2                     110
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          -2          54         157
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     245         213
    90.00 Outlays...........................          -2          54         157
    ---------------------------------------------------------------------------

        The defense environmental restoration program provides for the
    identification, investigation, and cleanup of contamination resulting
    from past DoD activities. The Department has 19,564 sites requiring no
    further action, leaving 6,741 active sites at 1,733 military
    installations along with 2,233 projects at formerly used Defense
    properties. For these remaining sites and projects DoD is engaged in
    either a study to determine the extent of the contamination or the
    actual clean-up.

        The Department's environmental restoration program is funded by five
    separate environmental restoration accounts, one for each military
    department, one for defense agencies and one for formerly used defense
    sites. This year, the first four accounts, Army, Navy, Air Force and
    Defense-wide environmental restoration accounts, which cover funding for
    active installations, are shown separately from the Formerly Used
    Defense Sites Environmental Restoration account, which funds
    environmental cleanup on properties no longer owned and/or used by the
    Defense Department. These five decentralized accounts include
    restoration activities from preliminary assessment and site planning to
    studies, then clean-up and finally closeout of a site, functions
    formerly funded in the defense environmental restoration account.

                 Overseas Humanitarian, Disaster, and Civic Aid

        For expenses relating to the Overseas Humanitarian, Disaster, and
    Civic Aid programs of the Department of Defense (consisting of the
    programs provided under sections 401, 402, 404, 2547, and [2551] 2561 of
    title 10, United States Code), [$58,400,000] $59,000,000, to remain
    available until September 30, [2004] 2005. (Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0819-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Overseas humanitarian, disaster
            and civic aid...................          66          46          59
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          66          46          59
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          19           8          20
    22.00 New budget authority (gross)......          49          58          59
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          75          66          79
    23.95 Total new obligations.............         -66         -46         -59

    [[Page 254]]

    24.40 Unobligated balance carried
            forward, end of year............           8          20          21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          49          58          59
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           1
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          49          58          59
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          39          39          26
    73.10 Total new obligations.............          66          46          59
    73.20 Total outlays (gross).............         -58         -58         -52
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    73.45 Recoveries of prior year
            obligations.....................          -6
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
    74.40 Obligated balance, end of year....          39          26          33
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          17          13          13
    86.93 Outlays from discretionary
            balances........................          40          45          39
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          58          58          52
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          49          58          59
    90.00 Outlays...........................          57          58          52
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0819-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Overseas humanitarian, disaster
            and civic aid...................          49          58          59
                                               ---------   ---------  ----------
    0893  Total budget plan.................          49          58          59
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0819-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    26.0  Direct obligations: Supplies and
            materials.......................          65          46          59
    99.0  Reimbursable obligations:
            Reimbursable obligations........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          66          46          59
    ---------------------------------------------------------------------------

                    Defense Reinvestment for Economic Growth

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0828-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          48          46          46
    73.20 Total outlays (gross).............          -2
    74.40 Obligated balance, end of year....          46          46          46
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           2
    ---------------------------------------------------------------------------

                      Former Soviet Union Threat Reduction

        For assistance to the republics of the former Soviet Union,
    including assistance provided by contract or by grants, for facilitating
    the elimination and the safe and secure transportation and storage of
    nuclear, chemical and other weapons; for establishing programs to
    prevent the proliferation of weapons, weapons components, and weapon-
    related technology and expertise; for programs relating to the training
    and support of defense and military personnel for demilitarization and
    protection of weapons, weapons components and weapons technology and
    expertise, and for defense and military contacts, [$416,700,000]
    $450,800,000, to remain available until September 30, [2005: Provided,
    That of the amounts provided under this heading, $10,000,000 shall be
    available only to support the dismantling and disposal of nuclear
    submarines and submarine reactor components in the Russian Far East]
    2006. (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0134-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 FSU Threat Reduction..............         376         537         439
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         376         537         439
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         678         666         543
    22.00 New budget authority (gross)......         359         414         451
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          37
    22.21 Unobligated balance transferred to
            other accounts..................         -30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,044       1,080         994
    23.95 Total new obligations.............        -376        -537        -439
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............         666         543         555
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         403         417         451
    40.36   Unobligated balance rescinded...         -32
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -3
    40.73   Reduction pursuant to P.L. 107-
              206...........................         -10
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         358         414         451
    68.10 Spending authority from offsetting
            collections: Change in
            uncollected customer payments
            from Federal sources (unexpired)           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         359         414         451
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         590         553         354
    73.10 Total new obligations.............         376         537         439
    73.20 Total outlays (gross).............        -379        -736        -477
    73.40 Adjustments in expired accounts
            (net)...........................           4
    73.45 Recoveries of prior year
            obligations.....................         -37
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.40 Obligated balance, end of year....         553         354         316
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      83          90
    86.93 Outlays from discretionary
            balances........................         379         653         387
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         379         736         477
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         358         414         451
    90.00 Outlays...........................         380         736         477
    ---------------------------------------------------------------------------

    [[Page 255]]

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0134-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Threat reduction activities.......         400         414         451
                                               ---------   ---------  ----------
    0893  Total budget plan.................         400         414         451
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0134-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    21.0    Travel and transportation of
              persons.......................           3           1           3
    23.2    Rental payments to others.......           1
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................         303         323         348
    25.3    Other purchases of goods and
              services from Government
              accounts......................          34          63          57
    26.0    Supplies and materials..........          33         123
    31.0    Equipment.......................                      26          30
                                               ---------   ---------  ----------
    99.0      Direct obligations............         375         537         439
    99.0  Reimbursable obligations..........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         376         537         439
    ---------------------------------------------------------------------------

    [Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental
                                Restoration Fund]

        [For payment to Kaho'olawe Island Conveyance, Remediation, and
    Environmental Restoration Fund, as authorized by law, $75,000,000, to
    remain available until expended.] (Department of Defense Appropriations
    Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1236-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          76          75
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................          76          75
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9          13          13
    22.00 New budget authority (gross)......          67          75
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          90          88          13
    23.95 Total new obligations.............         -76         -75
    24.40 Unobligated balance carried
            forward, end of year............          13          13          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          68          75
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          67          75
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          38          29          29
    73.10 Total new obligations.............          76          75
    73.20 Total outlays (gross).............         -71         -75
    73.45 Recoveries of prior year
            obligations.....................         -14
    74.40 Obligated balance, end of year....          29          29          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          67          75
    86.93 Outlays from discretionary
            balances........................           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          71          75
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          67          75
    90.00 Outlays...........................          71          75
    ---------------------------------------------------------------------------

                         Defense Emergency Response Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0833-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Increased Situational Awareness...       1,268         408
    00.02 Enhanced Force Protection.........       3,249         117
    00.03 Improved Command & Control........       1,055          54
    00.04 Increased Worldwide Posture.......       4,591         186
    00.05 Offensive Counter-terrorism.......       1,732         108
    00.07 Initial Crisis Response...........         410          57
    00.08 Pentagon Repair/Upgrade...........         533         305
    00.09 Other Requirements................          75          41
    00.10 Airport Security..................         219           6
    00.15 Other Emergency...................                     130
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 26.0)...................      13,132       1,412
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,857       1,107
    22.00 New budget authority (gross)......       2,581
    22.21 Unobligated balance transferred to
            other accounts..................        -266
    22.22 Unobligated balance transferred
            from other accounts.............       9,067         305
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      14,239       1,412
    23.95 Total new obligations.............     -13,132      -1,412
    24.40 Unobligated balance carried
            forward, end of year............       1,107
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      15,298
    40.35   Appropriation rescinded.........        -602
    40.36   Unobligated balance rescinded...        -224
    41.00   Transferred to other DoD
              accounts......................     -11,891
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,581
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         352       5,639       2,059
    73.10 Total new obligations.............      13,132       1,412
    73.20 Total outlays (gross).............      -7,845      -4,992      -1,349
    74.40 Obligated balance, end of year....       5,639       2,059         710
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,500
    86.93 Outlays from discretionary
            balances........................       6,345       4,992       1,349
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,845       4,992       1,349
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,581
    90.00 Outlays...........................       7,845       4,992       1,349
    ---------------------------------------------------------------------------

        The funds in this account were used to support the efforts by the
    Department of Defense (DOD) to respond to, or protect against, acts or
    threatened acts of terrorism against the United States. The funding in
    this account was transferred to various DOD appropriation accounts. The
    funding for continuing these activities is now requested in DOD's
    regular appropriation accounts in fiscal year 2004.

                               Emergency Response

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4965-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          17          17
    24.40 Unobligated balance carried
            forward, end of year............          17          17          17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           4           4
    74.40 Obligated balance, end of year....           4           4           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

    [[Page 256]]

                  Allied Contributions and Cooperation Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-9927-0-2-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............                      12          24
        Receipts:
    02.20 Contributions for burdensharing
            and other cooperative activites
            from Kuwait.....................         164         210         210
    02.21 Contributions for burdensharing
            and other cooperative activities         343
    02.60 Defense cooperation, Department of
            Defense-Military................          12          12          12
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         519         222         222
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         519         234         246
        Appropriations:
    05.00 Allied contributions and
            cooperation account.............        -507        -210        -210
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          12          24          36
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-9927-0-2-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Allied contributions and
            cooperation account.............         507         210         210
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 26.0)...................         507         210         210
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         507         210         210
    23.95 Total new obligations.............        -507        -210        -210
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....         507         210         210
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          82          79          79
    73.10 Total new obligations.............         507         210         210
    73.20 Total outlays (gross).............        -510        -210        -210
    74.40 Obligated balance, end of year....          79          79          79
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         507         210         210
    86.98 Outlays from mandatory balances...           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         510         210         210
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         507         210         210
    90.00 Outlays...........................         510         210         210
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           1          13          13
    92.02 Total investments, end of year:
            Federal securities: Par value...          13          13          13
    ---------------------------------------------------------------------------

        Cash contributions from allied countries and individuals are
    deposited into this account for reallocation to other DoD
    appropriations. Contributions are used to offset costs of DoD's overseas
    presence.

                           Miscellaneous Special Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-9922-0-2-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          45          47          45
        Receipts:
    02.20 Lease and Disposal of DoD Real
            Property........................          21          29          30
    02.21 Transfer Commissary Facilities and
            National Science Center.........          11
    02.40 Kaho'olawe Island Restoration Fund          67          75
    02.60 Restoration of Rocky Mountain
            Arsenal.........................           3           6          10
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         102         110          40
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         147         157          85
        Appropriations:
    05.00 Discretionary and Mandatory
            Appropriations..................        -100        -112         -32
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -100        -112         -32
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          47          45          53
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-9922-0-2-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Restoration of Rocky Mountain
            Arsenal.........................          25           3          17
    00.02 Disposal of DoD Real Property.....          21          51           7
    00.03 Lease of DoD real property........          18          49          15
    00.04 Kaho'olawe Island Restoration Fund          69          75
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         133         178          39
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         121         117          51
    22.00 New budget authority (gross)......         100         112          32
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         251         229          83
    23.95 Total new obligations.............        -133        -178         -39
    24.40 Unobligated balance carried
            forward, end of year............         117          51          44
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....          98         106          22
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          97         106          22
          Mandatory:

    60.20   Appropriation (special fund)....           3           6          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         100         112          32
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          69          39          44
    73.10 Total new obligations.............         133         178          39
    73.20 Total outlays (gross).............        -133        -173         -53
    73.45 Recoveries of prior year
            obligations.....................         -30
    74.40 Obligated balance, end of year....          39          44          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          96          77           9
    86.93 Outlays from discretionary
            balances........................          14          90          34
    86.97 Outlays from new mandatory
            authority.......................                       6          10
    86.98 Outlays from mandatory balances...          23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         133         173          53
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         100         112          32
    90.00 Outlays...........................         133         173          53
    ---------------------------------------------------------------------------

        These special funds include: receipts from the disposal and lease of
    DoD real property which are applied to real property maintenance and
    environmental efforts at DoD installations; receipts used to operate the
    National Science Center; and, funds for the restoration of Kaho'olawe
    Island and Rocky Mountain Arsenal.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-9922-0-2-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.4  Operation and maintenance of
            facilities......................          64         103          39
    32.0  Land and structures...............          69          75
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         133         178          39
    ---------------------------------------------------------------------------

                 Overseas Military Facility Investment Recovery

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-5193-0-2-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............

    [[Page 257]]

        Receipts:
    02.20 Overseas military facility,
            investment and recovery.........           1           1           1
        Appropriations:
    05.00 Overseas military facility,
            investment and recovery.........          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-5193-0-2-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Direct program activity...........           5           5           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.4)...................           5           5           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           9           5
    22.00 New budget authority (gross)......           1           1           1
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          14          10           6
    23.95 Total new obligations.............          -5          -5          -1
    24.40 Unobligated balance carried
            forward, end of year............           9           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....           1           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          12           4
    73.10 Total new obligations.............           5           5           1
    73.20 Total outlays (gross).............          -3         -13          -6
    73.45 Recoveries of prior year
            obligations.....................          -8
    74.40 Obligated balance, end of year....          12           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1
    86.93 Outlays from discretionary
            balances........................           2          13           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3          13           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2           1           1
    90.00 Outlays...........................           3          13           6
    ---------------------------------------------------------------------------

                Defense Export Loan Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4168-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           4           4
    24.40 Unobligated balance carried
            forward, end of year............           4           4           4
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    74.40 Obligated balance, end of year....           1           1           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4168-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2121  Limitation available from carry-
            forward.........................      14,980      14,980      14,980
    2143  Uncommitted limitation carried
            forward.........................     -14,980     -14,980     -14,980
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           8           4
    2231  Disbursements of new guaranteed
            loans...........................
    2251  Repayments and prepayments........          -4          -4
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           4
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           3
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of loan guarantees that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   97-4168-0-3-051    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           4              4             4              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           4              4             4              4
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           4              4             4              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           4              4             4              4
        NET POSITION:
    3300  Cumulative results of operations..
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           4              4             4              4
    -----------------------------------------------------------------------------------------------

                     Defense Vessel Transfer Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0842-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           4           4
    24.40 Unobligated balance carried
            forward, end of year............           4           4           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of loan guarantees that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                   PROCUREMENT

        Appropriations in this title support the acquisition of aircraft,
    ships, combat vehicles, satellites and their launch vehicles, weapons
    and all capital equipment. Major systems in production typically are
    budgeted annually to maintain production continuity through the life of
    the acquisition program and in several instances multi-year contracts
    are used to ensure stability of production and economies of scale.
    Initial spares and support as well as the modification of existing
    equipment are also funded. Resources presented under the Procurement
    title contribute primarily to achieving the Department's annual goals of
    assuring readiness and sustainability, transforming the force for new
    missions, and reforming processes and organizations. Performance targets
    in support of these goals contribute to the Department's efforts to
    mitigate force management and operational risk, future challenges risk,
    and institutional risk, as directed in the 2001 Quadrennial Defense
    Review.

    [[Page 258]]

        Procurement in support of the ground forces encompasses wheeled and
    track vehicles, rotary wing aircraft, ammunition and equipment procured
    to meet inventory requirements dictated by the force size and
    anticipated attrition requirements. Similarly, procurement in support of
    naval forces includes ships, equipment for the ships, aircraft,
    munitions, the Marine Corps ground element, and other equipment to
    sustain future naval operations. The Air Force programs support the
    broad range of missions and include aircraft, tactical missiles,
    ballistic missile weapons and associated surveillance and space assets
    keyed to the strategic deterrence mission, munitions and other mission
    support equipment.

                                  Federal Funds

    General and special funds:

                           Aircraft Procurement, Army

        For construction, procurement, production, modification, and
    modernization of aircraft, equipment, including ordnance, ground
    handling equipment, spare parts, and accessories therefor; specialized
    equipment and training devices; expansion of public and private plants,
    including the land necessary therefor, for the foregoing purposes, and
    such lands and interests therein, may be acquired, and construction
    prosecuted thereon prior to approval of title; and procurement and
    installation of equipment, appliances, and machine tools in public and
    private plants; reserve plant and Government and contractor-owned
    equipment layaway; and other expenses necessary for the foregoing
    purposes, [$2,285,574,000] $2,128,485,000, to remain available for
    obligation until September 30, [2005: Provided, That of the funds made
    available under this heading, $39,100,000 shall be available only to
    support a restructured CH-47F helicopter upgrade program for the full
    fleet to facilitate increases in the planned production rate to an
    economically optimal rate by fiscal year 2005: Provided further, That
    funds in the immediately preceding proviso shall not be made available
    until the Secretary of the Army has certified to the congressional
    defense committees that the Army intends to budget for the upgrade of
    the entire CH-47 fleet required for the Objective Force at economically
    optimal production rates in order to complete this program within ten
    years after it is initiated] 2006, of which $72,629,000 shall be for the
    Army National Guard and Army Reserve. (10 U.S.C. 3013, 4532; Department
    of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2031-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Aircraft..........................         286         291         192
    00.02 Modification of aircraft..........       1,547       1,646       1,663
    00.03 Spares and repair parts...........           6           9          11
    00.04 Support equipment and facilities..         159         160         250
    09.01 Reimbursable program..............           7          40          29
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,005       2,146       2,145
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................         301         246         381
    22.00 New budget authority (gross)......       1,917       2,280       2,157
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          35
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,253       2,526       2,538
    23.95 Total new obligations.............      -2,005      -2,146      -2,145
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    24.40 Available to finance subsequent
            year budget plans...............         246         381         394
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,984       2,282       2,128
    40.36   Unobligated balance rescinded...         -16
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -14
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -18
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -4
    41.00   Transferred to other accounts...         -40         -22
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,910       2,242       2,128
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                      38          29
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           6
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           7          38          29
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,917       2,280       2,157
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,697       2,010       2,364
    73.10 Total new obligations.............       2,005       2,146       2,145
    73.20 Total outlays (gross).............      -1,634      -1,792      -2,087
    73.40 Adjustments in expired accounts
            (net)...........................         -17
    73.45 Recoveries of prior year
            obligations.....................         -35
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -6
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
    74.40 Obligated balance, end of year....       2,010       2,364       2,423
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         348         442         412
    86.93 Outlays from discretionary
            balances........................       1,286       1,350       1,675
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,634       1,792       2,087
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1         -38         -27
    88.40     Offsetting collections, Non-
                Federal sources, Other......                                  -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -1         -38         -29
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -6
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,910       2,242       2,128
    90.00 Outlays...........................       1,633       1,754       2,058
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2031-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Aircraft..........................         276         309         167
    0702  Modification of aircraft..........       1,472       1,769       1,686
    0703  Spares and repair parts...........           6           8          11
    0704  Support equipment and facilities..         168         161         264
                                               ---------   ---------  ----------
    0791    Total direct....................       1,921       2,247       2,128
    0801  Reimbursable......................           9          38          29
                                               ---------   ---------  ----------
    0893  Total budget plan.................       1,930       2,285       2,158
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2031-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    21.0    Travel and transportation of
              persons.......................           1           1           1
    25.1    Advisory and assistance services         108         100         100
    25.2    Other services..................          25          39          43
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         183         170         176
    25.3      Purchases from revolving funds           2           8          72
    25.4    Operation and maintenance of
              facilities....................                       1           1
    25.5    Research and development
              contracts.....................          12          17          19
    25.7    Operation and maintenance of
              equipment.....................          28          39          49
    26.0    Supplies and materials..........         109         106         109
    31.0    Equipment.......................       1,530       1,622       1,543
    32.0    Land and structures.............                       3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,998       2,106       2,116
    99.0  Reimbursable obligations..........           7          40          29
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,005       2,146       2,145
    ---------------------------------------------------------------------------

    [[Page 259]]

                            Missile Procurement, Army

        For construction, procurement, production, modification, and
    modernization of missiles, equipment, including ordnance, ground
    handling equipment, spare parts, and accessories therefor; specialized
    equipment and training devices; expansion of public and private plants,
    including the land necessary therefor, for the foregoing purposes, and
    such lands and interests therein, may be acquired, and construction
    prosecuted thereon prior to approval of title; and procurement and
    installation of equipment, appliances, and machine tools in public and
    private plants; reserve plant and Government and contractor-owned
    equipment layaway; and other expenses necessary for the foregoing
    purposes, [$1,096,548,000] $1,459,462,000, to remain available for
    obligation until September 30, [2005] 2006, of which $40,214,000 shall
    be for the Army National Guard and Army Reserve. (10 U.S.C. 2353, 3013;
    Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2032-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Other missiles....................       1,027         704       1,101
    00.03 Modification of missiles..........         129         210         246
    00.04 Spares and repair parts...........          23          52          51
    00.05 Support equipment and facilities..          10          11           8
    09.01 Reimbursable program..............          36         132          68
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,225       1,109       1,474
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Available to finance new budget
            plans...........................         206         114         149
    22.00 New budget authority (gross)......       1,112       1,145       1,527
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          22
    22.22 Unobligated balance transferred
            from other accounts.............           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,346       1,259       1,676
    23.95 Total new obligations.............      -1,225      -1,109      -1,474
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7
    24.40 For completion of prior year
            budget plans....................         114         149         203
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,079       1,095       1,459
    40.36   Unobligated balance rescinded...                     -38
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -8
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -8
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -2
    41.00   Transferred to other accounts...                     -12
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,069       1,037       1,459
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          29         108          68
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          13
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          42         108          68
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,112       1,145       1,527
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,035       1,936       1,656
    73.10 Total new obligations.............       1,225       1,109       1,474
    73.20 Total outlays (gross).............      -1,289      -1,390      -1,195
    73.40 Adjustments in expired accounts
            (net)...........................          -9
    73.45 Recoveries of prior year
            obligations.....................         -22
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -13
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           9
    74.40 Obligated balance, end of year....       1,936       1,656       1,934
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         145         212         214
    86.93 Outlays from discretionary
            balances........................       1,144       1,178         981
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,289       1,390       1,195
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -28        -103         -63
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -5          -5          -5
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -33        -108         -68
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -13
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,070       1,037       1,459
    90.00 Outlays...........................       1,256       1,282       1,127
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2032-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0702  Other Missiles....................         894         770       1,152
    0703  Modification of Missiles..........         110         240         250
    0704  Spares and Repair Parts...........          15          55          51
    0705  Support Equipment and Facilities..          10          12           7
                                               ---------   ---------  ----------
    0791    Total direct....................       1,029       1,077       1,459
    0801  Reimbursable......................          44         108          68
                                               ---------   ---------  ----------
    0893  Total budget plan.................       1,073       1,186       1,528
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2032-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services          11           2           2
    25.2    Other services..................           1           1           1
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         132         104         104
    25.3      Purchases from revolving funds           1           1           1
    26.0    Supplies and materials..........          27          33          37
    31.0    Equipment.......................       1,017         837       1,262
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,189         978       1,407
    99.0  Reimbursable obligations..........          36         131          67
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,225       1,109       1,474
    ---------------------------------------------------------------------------

            Procurement of Weapons and Tracked Combat Vehicles, Army

        For construction, procurement, production, and modification of
    weapons and tracked combat vehicles, equipment, including ordnance,
    spare parts, and accessories therefor; specialized equipment and
    training devices; expansion of public and private plants, including the
    land necessary therefor, for the foregoing purposes, and such lands and
    interests therein, may be acquired, and construction prosecuted thereon
    prior to approval of title; and procurement and installation of
    equipment, appliances, and machine tools in public and private plants;
    reserve plant and Government and contractor-owned equipment layaway; and
    other expenses necessary for the foregoing purposes, [$2,266,508,000]
    $1,640,704,000, to remain available for obligation until September 30,
    [2005] 2006, of which $9,816,000 shall be for the Army National Guard
    and Army Reserve. (10 U.S.C. 2353, 3013; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2033-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Tracked combat vehicles...........       2,117       2,065       1,644
    00.02 Weapons and other combat vehicles.          81         104          87
    00.03 Spare and repair parts............          23          32          22
    09.01 Reimbursable program..............          10          75          52
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,231       2,276       1,805
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         554         515         506
    22.00 New budget authority (gross)......       2,201       2,267       1,693

    [[Page 260]]

    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
    22.21 Unobligated balance transferred to
            other accounts..................          -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,760       2,782       2,199
    23.95 Total new obligations.............      -2,231      -2,276      -1,805
    23.98 Unobligated balance expiring or
            withdrawn.......................         -13
    24.40 For completion of prior year
            budget plans....................         515         506         393
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,194       2,263       1,641
    40.36   Unobligated balance rescinded...                      -9
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -15
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -4
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -19
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -4
    41.00   Transferred to other accounts...                     -22
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,171       2,213       1,641
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           7          54          52
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          23
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          30          54          52
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,201       2,267       1,693
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,460       2,609       2,506
    73.10 Total new obligations.............       2,231       2,276       1,805
    73.20 Total outlays (gross).............      -2,037      -2,379      -2,179
    73.40 Adjustments in expired accounts
            (net)...........................         -12
    73.45 Recoveries of prior year
            obligations.....................         -11
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -23
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
    74.40 Obligated balance, end of year....       2,609       2,506       2,133
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         379         364         282
    86.93 Outlays from discretionary
            balances........................       1,658       2,015       1,897
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,037       2,379       2,179
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -7         -42         -39
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -1         -12         -13
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -8         -54         -52
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -23
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,171       2,213       1,641
    90.00 Outlays...........................       2,029       2,325       2,127
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2033-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Tracked combat vehicles...........       2,064       2,099       1,538
    0702  Weapons and other combat vehicles.          76         104          85
    0703  Spare and repair parts............          28          25          18
                                               ---------   ---------  ----------
    0791    Total direct....................       2,168       2,228       1,641
    0801  Reimbursable......................          30          54          52
                                               ---------   ---------  ----------
    0893  Total budget plan.................       2,198       2,283       1,692
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2033-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........           4           3           2
    25.1    Advisory and assistance services          22          20          18
    25.2    Other services..................           2          46          33
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         216         301         214
    25.3      Purchases from revolving funds          47          59         120
    26.0    Supplies and materials..........          68          87          62
    31.0    Equipment.......................       1,862       1,684       1,305
                                               ---------   ---------  ----------
    99.0      Direct obligations............       2,221       2,200       1,754
    99.0  Reimbursable obligations..........          10          76          51
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,231       2,276       1,805
    ---------------------------------------------------------------------------

                         Procurement of Ammunition, Army

        For construction, procurement, production, and modification of
    ammunition, and accessories therefor; specialized equipment and training
    devices; expansion of public and private plants, including ammunition
    facilities authorized by section 2854 of title 10, United States Code,
    and the land necessary therefor, for the foregoing purposes, and such
    lands and interests therein, may be acquired, and construction
    prosecuted thereon prior to approval of title; and procurement and
    installation of equipment, appliances, and machine tools in public and
    private plants; reserve plant and Government and contractor-owned
    equipment layaway; and other expenses necessary for the foregoing
    purposes, [$1,253,099,000] $1,309,966,000, to remain available for
    obligation until September 30, [2005] 2006, of which $173,143,000 shall
    be for the Army National Guard and Army Reserve. (10 U.S.C. 2353, 3013;
    Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2034-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Ammunition........................       1,048         932       1,163
    00.02 Ammunition production base support         178         147         134
    09.01 Reimbursable program..............         587         701         891
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,813       1,780       2,188
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................         440         452         403
    22.00 New budget authority (gross)......       1,781       1,732       2,201
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          34
    22.22 Unobligated balance transferred
            from other accounts.............          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,268       2,184       2,604
    23.95 Total new obligations.............      -1,813      -1,780      -2,188
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    24.40 Unobligated balance carried
            forward, end of year............         452         403         417
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,200       1,253       1,310
    40.36   Unobligated balance rescinded...         -28         -23
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -8
    40.73   Reduction pursuant to P.L. 107-
              206...........................         -17
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -10
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -2
    41.00   Transferred to other accounts...                     -12
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,145       1,208       1,310
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         362         524         891
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         274
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         636         524         891
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,781       1,732       2,201
    ----------------------------------------------------------------------------

    [[Page 261]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,111         949       1,098
    73.10 Total new obligations.............       1,813       1,780       2,188
    73.20 Total outlays (gross).............      -1,707      -1,632      -2,106
    73.40 Adjustments in expired accounts
            (net)...........................          -4
    73.45 Recoveries of prior year
            obligations.....................         -34
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -274
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          44
    74.40 Obligated balance, end of year....         949       1,098       1,180
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         346         778       1,166
    86.93 Outlays from discretionary
            balances........................       1,361         854         940
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,707       1,632       2,106
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -404        -510        -877
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -2         -14         -14
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -406        -524        -891
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -274
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          44
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,145       1,208       1,310
    90.00 Outlays...........................       1,301       1,108       1,215
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2034-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Ammunition........................         979       1,110       1,171
    0702  Ammunition production base support         173         124         139
                                               ---------   ---------  ----------
    0791    Total direct....................       1,151       1,234       1,310
    0801  Reimbursable......................         682         524         891
                                               ---------   ---------  ----------
    0893  Total budget plan.................       1,833       1,758       2,201
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2034-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Loan guarantee levels.............                      39
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                      39
        Guaranteed loan subsidy (in percent):
    232001Loan guarantee levels.............                    3.34
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....                    3.34
        Guaranteed loan subsidy budget authority:
    233001Loan guarantee levels.............                       1
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                       1
        Guaranteed loan subsidy outlays:
    234001Loan guarantee levels.............                       1
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                       1
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2034-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........          11          10          12
    25.1    Advisory and assistance services           6
    25.2    Other services..................          31          28          34
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         169         150         182
    25.3      Purchases from revolving funds          54          48          58
    25.4    Operation and maintenance of
              facilities....................         107          95         115
    26.0    Supplies and materials..........         845         746         892
    31.0    Equipment.......................           4           3           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,227       1,080       1,297
    99.0  Reimbursable obligations..........         586         700         891
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,813       1,780       2,188
    ---------------------------------------------------------------------------

                             Other Procurement, Army

        For construction, procurement, production, and modification of
    vehicles, including tactical, support, and non-tracked combat vehicles;
    the purchase of passenger motor vehicles for replacement only; the
    purchase of both light armored vehicles not in excess of 12,000 pounds
    gross vehicle weight and the purchase of 6 vehicles required for
    physical security of personnel, notwithstanding price limitations
    applicable to passenger vehicles but not to exceed $180,000 per vehicle;
    communications and electronic equipment; other support equipment; spare
    parts, ordnance, and accessories therefor; specialized equipment and
    training devices; expansion of public and private plants, including the
    land necessary therefor, for the foregoing purposes, and such lands and
    interests therein, may be acquired, and construction prosecuted thereon
    prior to approval of title; and procurement and installation of
    equipment, appliances, and machine tools in public and private plants;
    reserve plant and Government and contractor-owned equipment layaway; and
    other expenses necessary for the foregoing purposes, [$5,874,674,000]
    $4,216,854,000, to remain available for obligation until September 30,
    [2005] 2006, of which $580,128,000 shall be for the Army National Guard
    and Army Reserve. (10 U.S.C. 2353, 3013, 4532; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2035-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Tactical and support vehicles.....       1,039       1,425         841
    00.02 Communications and electronics
            equipment.......................       2,326       2,416       2,326
    00.03 Other support equipment...........       1,095       1,505       1,115
    00.04 Spare and repair parts............          41          55          46
    09.01 Reimbursable program..............          25          70          88
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,526       5,471       4,416
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         599         490         758
    22.00 New budget authority (gross)......       4,233       5,739       4,305
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         197
    22.21 Unobligated balance transferred to
            other accounts..................          -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,026       6,229       5,063
    23.95 Total new obligations.............      -4,526      -5,471      -4,416
    23.98 Unobligated balance expiring or
            withdrawn.......................         -10
    24.40 For completion of prior year
            budget plans....................         490         758         647
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,263       5,804       4,217
    40.36   Unobligated balance rescinded...         -29         -29
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -29
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -2
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -45
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -9
    41.00   Transferred to other accounts...                     -55
    42.00   Transferred from other accounts.          20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,214       5,675       4,217
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          17          64          88
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          19          64          88
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,233       5,739       4,305
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,999       4,103       4,802
    73.10 Total new obligations.............       4,526       5,471       4,416
    73.20 Total outlays (gross).............      -4,224      -4,772      -4,979
    73.40 Adjustments in expired accounts
            (net)...........................         -23

    [[Page 262]]

    73.45 Recoveries of prior year
            obligations.....................        -197
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          22
    74.40 Obligated balance, end of year....       4,103       4,802       4,239
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,286       1,767       1,353
    86.93 Outlays from discretionary
            balances........................       2,938       3,005       3,626
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,224       4,772       4,979
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -27         -56         -74
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -10          -8         -14
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -37         -64         -88
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,214       5,675       4,217
    90.00 Outlays...........................       4,187       4,708       4,891
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2035-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Tactical and support vehicles.....         997       1,519         788
    0702  Communications and electronics
            equipment.......................       2,171       2,600       2,301
    0703  Other support equipment...........       1,007       1,544       1,082
    0704  Spare and repair parts............          37          53          46
                                               ---------   ---------  ----------
    0791    Total direct....................       4,213       5,716       4,217
    0801  Reimbursable......................          24          64          88
                                               ---------   ---------  ----------
    0893  Total budget plan.................       4,237       5,780       4,304
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2035-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    21.0    Travel and transportation of
              persons.......................                       1           1
    22.0    Transportation of things........          19          16          14
    23.3    Communications, utilities, and
              miscellaneous charges.........           1
    25.1    Advisory and assistance services         219          46          52
    25.2    Other services..................          68           4           3
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         573         545         479
    25.3      Purchases from revolving funds           4         118         157
    26.0    Supplies and materials..........          72         101          89
    31.0    Equipment.......................       3,545       4,571       3,535
                                               ---------   ---------  ----------
    99.0      Direct obligations............       4,501       5,402       4,330
    99.0  Reimbursable obligations..........          25          69          86
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,526       5,471       4,416
    ---------------------------------------------------------------------------

                           Aircraft Procurement, Navy

        For construction, procurement, production, modification, and
    modernization of aircraft, equipment, including ordnance, spare parts,
    and accessories therefor; specialized equipment; expansion of public and
    private plants, including the land necessary therefor, and such lands
    and interests therein, may be acquired, and construction prosecuted
    thereon prior to approval of title; and procurement and installation of
    equipment, appliances, and machine tools in public and private plants;
    reserve plant and Government and contractor-owned equipment layaway,
    [$8,812,855,000] $8,788,148,000, to remain available for obligation
    until September 30, [2005] 2006, of which $80,225,000 shall be for the
    Navy Reserve and the Marine Corps Reserve. (10 U.S.C. 5013, 5063, 7201,
    7341; Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1506-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Combat aircraft...................       5,015       4,617       5,109
    00.02 Airlift aircraft..................          51          63          75
    00.03 Trainer aircraft..................         199         221         335
    00.04 Other aircraft....................         155         265         106
    00.05 Modification of aircraft..........       1,337       1,618       1,336
    00.06 Aircraft spares and repair parts..       1,339       1,037       1,151
    00.07 Aircraft support equipment and
            facilities......................         479         497         530
    09.01 Reimbursable program..............           1           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       8,576       8,325       8,649
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................       1,913       1,297       1,607
    22.00 New budget authority (gross)......       7,987       8,634       8,795
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       9,905       9,931      10,402
    23.95 Total new obligations.............      -8,576      -8,325      -8,649
    23.98 Unobligated balance expiring or
            withdrawn.......................         -32
    24.40 Unobligated balance carried
            forward, end of year............       1,297       1,607       1,753
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       7,961       8,790       8,788
    40.36   Unobligated balance rescinded...          -9
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -65
    40.73   Reduction pursuant to P.L. 107-
              206...........................         -19
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -71
    40.76   Reduction pursuant to P.L. 107-
              206...........................         -16
    41.00   Transferred to other accounts...                     -93
    42.00   Transferred from other accounts.         135           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       7,987       8,627       8,788
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          -5           7           7
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           5
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......                       7           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       7,987       8,634       8,795
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      10,022      10,088      10,514
    73.10 Total new obligations.............       8,576       8,325       8,649
    73.20 Total outlays (gross).............      -8,484      -7,898      -8,412
    73.40 Adjustments in expired accounts
            (net)...........................         -16
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -5
    74.40 Obligated balance, end of year....      10,088      10,514      10,750
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,600       1,560       1,589
    86.93 Outlays from discretionary
            balances........................       6,884       6,338       6,823
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       8,484       7,898       8,412
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........           5          -7          -7
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       7,987       8,627       8,788
    90.00 Outlays...........................       8,489       7,891       8,405
    ---------------------------------------------------------------------------

    [[Page 263]]

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1506-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Combat aircraft...................       4,446       5,024       5,285
    0702  Airlift aircraft..................           7          70          80
    0703  Trainer aircraft..................         211         242         364
    0704  Other aircraft....................         155         310          81
    0705  Modification of aircraft..........       1,348       1,397       1,279
    0706  Aircraft spares and repair parts..       1,326       1,066       1,158
    0707  Aircraft support equipment and
            facilities......................         500         539         542
                                               ---------   ---------  ----------
    0791    Total direct....................       7,993       8,649       8,788
    0801  Reimbursable......................                       7           7
                                               ---------   ---------  ----------
    0893  Total budget plan.................       7,993       8,656       8,795
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1506-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services         112         103         111
    25.3    Purchases from other Govt acct--
              revolving funds...............         646         335         434
    26.0    Supplies and materials..........           6           4           3
    31.0    Equipment.......................       7,811       7,876       8,094
                                               ---------   ---------  ----------
    99.0      Direct obligations............       8,575       8,318       8,642
    99.0  Reimbursable obligations..........           1           7           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       8,576       8,325       8,649
    ---------------------------------------------------------------------------

                            Weapons Procurement, Navy

        For construction, procurement, production, modification, and
    modernization of missiles, torpedoes, other weapons, and related support
    equipment including spare parts, and accessories therefor; expansion of
    public and private plants, including the land necessary therefor, and
    such lands and interests therein, may be acquired, and construction
    prosecuted thereon prior to approval of title; and procurement and
    installation of equipment, appliances, and machine tools in public and
    private plants; reserve plant and Government and contractor-owned
    equipment layaway, [$1,868,517,000] $1,991,821,000, to remain available
    for obligation until September 30, [2005] 2006. (10 U.S.C. 5013, 5062;
    Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1507-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Ballistic missiles................         493         523         641
    00.02 Other missiles....................         685         923       1,000
    00.03 Torpedoes and related equipment...         105         136         161
    00.04 Other weapons.....................          65          85          89
    00.06 Spares and repair parts...........          48          57          49
    09.01 Reimbursable program..............           1          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,397       1,734       1,950
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................         278         254         360
    22.00 New budget authority (gross)......       1,391       1,840       2,002
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,671       2,094       2,362
    23.95 Total new obligations.............      -1,397      -1,734      -1,950
    23.98 Unobligated balance expiring or
            withdrawn.......................         -19
    24.40 Unobligated balance carried
            forward, end of year............         254         360         414
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,430       1,864       1,992
    40.36   Unobligated balance rescinded...         -20
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -12
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -7
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -14
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -3
    41.00   Transferred to other accounts...                     -20
    42.00   Transferred from other accounts.           2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,390       1,829       1,992
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           2          10          10
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           1          10          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,391       1,840       2,002
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,021       1,853       2,057
    73.10 Total new obligations.............       1,397       1,734       1,950
    73.20 Total outlays (gross).............      -1,587      -1,530      -1,724
    73.40 Adjustments in expired accounts
            (net)...........................         -21
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          44
    74.40 Obligated balance, end of year....       1,853       2,057       2,281
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         387         492         533
    86.93 Outlays from discretionary
            balances........................       1,200       1,038       1,191
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,587       1,530       1,724
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -18         -10         -10
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,390       1,830       1,992
    90.00 Outlays...........................       1,567       1,520       1,714
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1507-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Ballistic missiles................         536         576         677
    0702  Other missiles....................         639         968       1,016
    0703  Torpedoes and related equipment...         116         150         164
    0704  Other weapons.....................          74          85          87
    0706  Spares and repair parts...........          49          54          49
                                               ---------   ---------  ----------
    0791    Total direct....................       1,413       1,833       1,992
    0801  Reimbursable......................                      10          10
                                               ---------   ---------  ----------
    0893  Total budget plan.................       1,413       1,843       2,002
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1507-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........           7           9          10
    25.1    Advisory and assistance services          19          15          19
    25.2    Other services..................                      11          28
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................                      57           7
    25.3      Purchases from revolving funds         168         172         174
    31.0    Equipment.......................       1,202       1,460       1,702
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,396       1,724       1,940
    99.0  Reimbursable obligations..........           1          10          10
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,397       1,734       1,950
    ---------------------------------------------------------------------------

                Procurement of Ammunition, Navy and Marine Corps

        For construction, procurement, production, and modification of
    ammunition, and accessories therefor; specialized equipment and training
    devices; expansion of public and private plants, including ammunition
    facilities authorized by section 2854 of title 10, United States

    [[Page 264]]

    Code, and the land necessary therefor, for the foregoing purposes, and
    such lands and interests therein, may be acquired, and construction
    prosecuted thereon prior to approval of title; and procurement and
    installation of equipment, appliances, and machine tools in public and
    private plants; reserve plant and Government and contractor-owned
    equipment layaway; and other expenses necessary for the foregoing
    purposes, [$1,165,730,000] $922,355,000, to remain available for
    obligation until September 30, [2005] 2006, of which $25,809,000 shall
    be available for the Navy Reserve and Marine Corps Reserve. (Department
    of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1508-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Ammunition, Navy..................         579         751         689
    00.02 Ammunition, Marine Corps..........         158         282         229
    09.01 Reimbursable program..............           8          25          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         744       1,058         943
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................          80          73         185
    22.00 New budget authority (gross)......         727       1,170         947
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         817       1,243       1,132
    23.95 Total new obligations.............        -744      -1,058        -943
    24.40 For completion of prior year
            budget plans....................          73         185         189
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         723       1,165         922
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -4
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -2
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -8
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -1
    41.00   Transferred to other accounts...                     -12
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         717       1,144         922
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           3          25          25
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           7
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          10          25          25
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         727       1,170         947
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         836         940       1,280
    73.10 Total new obligations.............         744       1,058         943
    73.20 Total outlays (gross).............        -617        -718        -934
    73.40 Adjustments in expired accounts
            (net)...........................          -5
    73.45 Recoveries of prior year
            obligations.....................         -11
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -7
    74.40 Obligated balance, end of year....         940       1,280       1,289
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          97         174         145
    86.93 Outlays from discretionary
            balances........................         522         544         789
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         617         718         934
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2         -25         -25
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -7
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         717       1,145         922
    90.00 Outlays...........................         615         693         909
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1508-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Ammunition, Navy..................         571         865         690
    0702  Ammunition, Marine Corps..........         147         281         232
                                               ---------   ---------  ----------
    0791    Subtotal........................         718       1,146         922
    0801  Reimbursable program..............                      25          25
                                               ---------   ---------  ----------
    0893  Total budget plan.................         718       1,171         947
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1508-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services                       5           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................          72         195         163
    31.0    Equipment.......................         664         833         751
                                               ---------   ---------  ----------
    99.0      Direct obligations............         736       1,033         918
    99.0  Reimbursable obligations..........           8          25          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         744       1,058         943
    ---------------------------------------------------------------------------

                        Shipbuilding and Conversion, Navy

        For expenses necessary for the construction, acquisition, or
    conversion of vessels as authorized by law, including armor and armament
    thereof, plant equipment, appliances, and machine tools and installation
    thereof in public and private plants; reserve plant and Government and
    contractor-owned equipment layaway; procurement of critical, long
    leadtime components and designs for vessels to be constructed or
    converted in the future; and expansion of public and private plants,
    including land necessary therefor, and such lands and interests therein,
    may be acquired, and construction prosecuted thereon prior to approval
    of title, [as follows:
            Carrier Replacement Program, $90,000,000;
            Carrier Replacement Program (AP), $403,703,000;
            NSSN, $1,499,152,000;
            NSSN (AP), $645,209,000;
            SSGN, $404,305,000;
            SSGN (AP), $421,000,000;
            CVN Refuelings (AP), $221,781,000;
            Submarine Refuelings, $435,792,000;
            Submarine Refuelings (AP), $64,000,000;
            DDG-51 Destroyer, $2,321,502,000;
            LPD-17, $596,492,000;
            LHD-8, $243,000,000;
            LCAC Landing Craft Air Cushion, $89,638,000;
            Mine Hunter SWATH, $7,000,000;
            Prior year shipbuilding costs, $1,279,899,000;
            Service Craft, $9,756,000; and
            For outfitting, post delivery, conversions, and first
        destination transportation, $300,608,000;
    In all: $9,032,837,000] $11,438,984,000, to remain available for
    obligation until September 30, [2007] 2008: Provided, That additional
    obligations may be incurred after September 30, [2007] 2008, for
    engineering services, tests, evaluations, and other such budgeted work
    that must be performed in the final stage of ship construction: Provided
    further, That none of the funds provided under this heading for the
    construction or conversion of any naval vessel to be constructed in
    shipyards in the United States shall be expended in foreign facilities
    for the construction of major components of such vessel: Provided
    further, That none of the funds provided under this heading shall be
    used for the construction of any naval vessel in foreign shipyards. (10
    U.S.C. 5013, 5062; Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1611-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Other warships....................       8,474       8,129       8,347
    00.03 Amphibious ships..................       1,078       1,202       1,359
    00.05 Auxiliaries, craft, and prior-year
            program costs...................         325         527         808
                                               ---------   ---------  ----------

    [[Page 265]]

    10.00   Total new obligations...........       9,877       9,858      10,514
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................       7,406       5,591       4,782
    22.00 New budget authority (gross)......       9,180       9,050      11,439
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         104
    22.21 Unobligated balance transferred to
            other accounts..................        -867
    22.22 Unobligated balance transferred
            from other accounts.............         103
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      15,926      14,641      16,221
    23.95 Total new obligations.............      -9,877      -9,858     -10,514
    23.98 Unobligated balance expiring or
            withdrawn.......................        -458
    24.40 Unobligated balance carried
            forward, end of year............       5,591       4,782       5,707
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       9,490       9,017      11,439
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -66
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -74
    40.76   Reduction pursuant to P.L. 107-
              206...........................         -18
    41.00   Transferred to other accounts...        -378         -71
    42.00   Transferred from other accounts.         152         178
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       9,180       9,049      11,439
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          30
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -30
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       9,180       9,050      11,439
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      17,558      19,025      20,929
    73.10 Total new obligations.............       9,877       9,858      10,514
    73.20 Total outlays (gross).............      -8,317      -7,954      -7,706
    73.40 Adjustments in expired accounts
            (net)...........................         -20
    73.45 Recoveries of prior year
            obligations.....................        -104
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          30
    74.40 Obligated balance, end of year....      19,025      20,929      23,738
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,502         871       1,062
    86.93 Outlays from discretionary
            balances........................       6,815       7,083       6,644
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       8,317       7,954       7,706
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -30
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       9,180       9,050      11,439
    90.00 Outlays...........................       8,286       7,954       7,706
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1611-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0702  Other warships....................       8,432       7,282       8,807
    0703  Amphibious ships..................         501       1,392       1,547
    0705  Auxiliaries, craft, and prior-year
            program costs...................         345         399       1,085
                                               ---------   ---------  ----------
    0893  Total budget plan.................       9,278       9,073      11,439
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1611-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    22.0  Transportation of things..........           3                       3
    25.1  Advisory and assistance services..          73          62          56
    25.2  Other services....................         712         673         804
          Other purchases of goods and services from
              Government accounts:

    25.3    Other purchases of goods and
              services from Government
              accounts......................         194          46         355
    25.3    Purchases from revolving funds..         902         814       1,443
    25.5  Research and development contracts           1
    26.0  Supplies and materials............          62          43          87
    31.0  Equipment.........................       7,930       8,220       7,766
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       9,877       9,858      10,514
    ---------------------------------------------------------------------------

                             Other Procurement, Navy

        For procurement, production, and modernization of support equipment
    and materials not otherwise provided for, Navy ordnance (except ordnance
    for new aircraft, new ships, and ships authorized for conversion); the
    purchase of passenger motor vehicles for replacement only, the purchase
    of both light armored vehicles not in excess of 12,000 pounds gross
    vehicle weight and the purchase of 3 vehicles required for physical
    security of personnel, notwithstanding price limitations applicable to
    passenger vehicles but not to exceed $240,000 per unit for one unit and
    not to exceed $125,000 per unit for the remaining two units; expansion
    of public and private plants, including the land necessary therefor, and
    such lands and interests therein, may be acquired, and construction
    prosecuted thereon prior to approval of title; and procurement and
    installation of equipment, appliances, and machine tools in public and
    private plants; reserve plant and Government and contractor-owned
    equipment layaway, [$4,612,910,000] $4,679,443,000, to remain available
    for obligation until September 30, [2005] 2006, of which $49,527,000
    shall be for the Navy Reserve. (10 U.S.C. 5013, 5063; Department of
    Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1810-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Ships support equipment...........         758       1,057       1,099
    00.02 Communications and electronics
            equipment.......................       1,507       1,739       1,968
    00.03 Aviation support equipment........         239         228         251
    00.04 Ordinance support equipment.......         563         575         588
    00.05 Civil engineering support
            equipment.......................          87         158         103
    00.06 Supply support equipment..........         462         169         113
    00.07 Personnel and command support
            equipment.......................         248         317         247
    00.08 Spares and repair parts...........         206         206         239
    09.01 Reimbursable program..............         124          47         222
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,194       4,496       4,830
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................         480         547         612
    22.00 New budget authority (gross)......       4,270       4,561       4,899
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,752       5,108       5,511
    23.95 Total new obligations.............      -4,194      -4,496      -4,830
    23.98 Unobligated balance expiring or
            withdrawn.......................         -13
    24.40 Unobligated balance carried
            forward, end of year............         547         612         679
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,273       4,585       4,679
    40.36   Unobligated balance rescinded...         -23          -5
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -37
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -6
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -37
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -9
    41.00   Transferred to other accounts...         -93         -56
    42.00   Transferred from other accounts.          49          32
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,154       4,519       4,679
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         179          42         220
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -63
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         116          42         220
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,270       4,561       4,899
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,322       3,520       3,654
    73.10 Total new obligations.............       4,194       4,496       4,830
    73.20 Total outlays (gross).............      -4,030      -4,363      -4,462
    73.40 Adjustments in expired accounts
            (net)...........................         -21
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          63

    [[Page 266]]

    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -5
    74.40 Obligated balance, end of year....       3,520       3,654       4,024
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,538       1,691       1,928
    86.93 Outlays from discretionary
            balances........................       2,492       2,672       2,534
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,030       4,363       4,462
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          24         -12         -12
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -195         -30        -208
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -171         -42        -220
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          63
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,154       4,519       4,679
    90.00 Outlays...........................       3,859       4,321       4,242
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1810-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Ship support equipment............         768       1,152       1,135
    0702  Communications and electronics
            equipment.......................       1,511       1,711       2,003
    0703  Aviation support equipment........         244         248         253
    0704  Ordnance support equipment........         592         592         600
    0705  Civil engineering support
            equipment.......................          97         168          95
    0706  Supply support equipment..........         456         169         110
    0707  Personnel and command support
            equipment.......................         258         317         237
    0708  Spares and repair parts...........         247         180         248
                                               ---------   ---------  ----------
    0791    Total direct....................       4,173       4,535       4,679
    0801  Reimbursable......................          37          42         220
                                               ---------   ---------  ----------
    0893  Total budget plan.................       4,210       4,577       4,899
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1810-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........          10          14          13
    25.1    Advisory and assistance services          37          21          26
    25.2    Other services..................         397         108         289
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         138         190         174
    25.3      Purchases from revolving funds       1,240         955       1,559
    26.0    Supplies and materials..........          32          17          58
    31.0    Equipment.......................       2,216       3,144       2,489
                                               ---------   ---------  ----------
    99.0      Direct obligations............       4,070       4,449       4,608
    99.0  Reimbursable obligations..........         124          47         222
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,194       4,496       4,830
    ---------------------------------------------------------------------------

                          Coastal Defense Augmentation

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-0380-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1                       1
    24.40 Unobligated balance carried
            forward, end of year............                       1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          56          56          56
    74.40 Obligated balance, end of year....          56          56          56
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

                            Procurement, Marine Corps

        For expenses necessary for the procurement, manufacture, and
    modification of missiles, armament, military equipment, spare parts, and
    accessories therefor; plant equipment, appliances, and machine tools,
    and installation thereof in public and private plants; reserve plant and
    Government and contractor-owned equipment layaway; vehicles for the
    Marine Corps, including the purchase of passenger motor vehicles for
    replacement only and the purchase of light armored vehicles not in
    excess of 12,000 pounds gross vehicle weight required for the physical
    security of personnel, notwithstanding price limitations applicable to
    passenger vehicles; and expansion of public and private plants,
    including land necessary therefor, and such lands and interests therein,
    may be acquired, and construction prosecuted thereon prior to approval
    of title, [$1,388,583,000] $1,070,999,000, to remain available for
    obligation until September 30, [2005] 2006, of which $66,849,000 shall
    be for the Marine Corps Reserve. (10 U.S.C. 5013; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1109-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Weapons and combat vehicles.......         116         144         273
    00.03 Guided missiles and equipment.....          50          54          37
    00.04 Communications and electronics
            equipment.......................         318         356         355
    00.05 Support vechicles.................         447         401         174
    00.06 Engineer and other equipment......         191         220         174
    00.07 Spares and repair parts...........          26          24          19
    09.01 Reimbursable program..............                       9           9
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,147       1,208       1,041
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         320         119         275
    22.00 New budget authority (gross)......         939       1,365       1,080
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,267       1,484       1,355
    23.95 Total new obligations.............      -1,147      -1,208      -1,041
    24.40 Unobligated balance carried
            forward, end of year............         119         275         315
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         999       1,383       1,071
    40.36   Unobligated balance rescinded...          -1
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -9
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -5
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -10
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -2
    41.00   Transferred to other accounts...         -46         -17
    42.00   Transferred from other accounts.           3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         939       1,355       1,071
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                       9           9
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         939       1,365       1,080
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,225         959       1,096
    73.10 Total new obligations.............       1,147       1,208       1,041
    73.20 Total outlays (gross).............      -1,386      -1,071      -1,128
    73.40 Adjustments in expired accounts
            (net)...........................         -19
    73.45 Recoveries of prior year
            obligations.....................          -8
    74.40 Obligated balance, end of year....         959       1,096       1,009
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         364         416         331
    86.93 Outlays from discretionary
            balances........................       1,022         655         797
                                               ---------   ---------  ----------

    [[Page 267]]

    87.00   Total outlays (gross)...........       1,386       1,071       1,128
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -9          -9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         939       1,356       1,071
    90.00 Outlays...........................       1,386       1,062       1,119
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1109-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0702  Weapons and combat vehicles.......         132         246         297
    0703  Guided missiles and equipment.....           4          46          40
    0704  Communications and electronics
            equipment.......................         200         358         387
    0705  Support vehicles..................         417         474         148
    0706  Engineer and other equipment......         163         211         180
    0707  Spares and repair parts...........          26          23          20
                                               ---------   ---------  ----------
    0791    Total direct....................         942       1,358       1,071
    0801  Reimbursable......................                       9           9
                                               ---------   ---------  ----------
    0893  Total budget plan.................         942       1,367       1,080
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1109-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services          10          10          18
    25.3    Purchases from revolving funds..          50          55          48
    26.0    Supplies and materials..........          26          23          21
    31.0    Equipment.......................       1,061       1,111         945
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,147       1,199       1,032
    99.0  Reimbursable obligations..........                       9           9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,147       1,208       1,041
    ---------------------------------------------------------------------------

                         Aircraft Procurement, Air Force

        For construction, procurement, [lease,] and modification of aircraft
    and equipment, including armor and armament, specialized ground handling
    equipment, and training devices, spare parts, and accessories therefor;
    specialized equipment; expansion of public and private plants,
    Government-owned equipment and installation thereof in such plants,
    erection of structures, and acquisition of land, for the foregoing
    purposes, and such lands and interests therein, may be acquired, and
    construction prosecuted thereon prior to approval of title; reserve
    plant and Government and contractor-owned equipment layaway; and other
    expenses necessary for the foregoing purposes including rents and
    transportation of things, [$13,137,255,000] $12,079,360,000, to remain
    available for obligation until September 30, [2005: Provided, That
    amounts provided under this heading shall be used for the advance
    procurement of 15 C-17 aircraft.] 2006, of which $389,000,000 shall be
    available for the Air Force National Guard and Air Force Reserve. (10
    U.S.C. 2271-79, 2353, 2386, 2663, 2672, 2672a, 8013, 8062, 9501-02,
    9532, 9741-42; 50 U.S.C. 451, 453, 455; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3010-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Combat aircraft...................       3,045       4,004       4,017
    00.02 Airlift aircraft..................       3,739       4,124       3,788
    00.03 Trainer aircraft..................         214         196         263
    00.04 Other aircraft....................         485         801         741
    00.05 Modification of in-service
            aircraft........................       1,836       1,945       1,880
    00.06 Aircraft spares and repair parts..         203         357         232
    00.07 Aircraft support equipment and
            facilities......................         891         779         792
    09.01 Reimbursable program..............          74          54          50
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      10,487      12,260      11,763
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,400       1,500       2,105
    22.00 New budget authority (gross)......      10,559      12,865      12,129
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          48
    22.21 Unobligated balance transferred to
            other accounts..................          -7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      12,001      14,365      14,234
    23.95 Total new obligations.............     -10,487     -12,260     -11,763
    23.98 Unobligated balance expiring or
            withdrawn.......................         -14
    24.40 For completion of prior year
            budget plans....................       1,500       2,105       2,470
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      10,685      13,128      12,079
    40.35   Appropriation rescinded.........         -25
    40.36   Unobligated balance rescinded...         -72
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -73
    40.75   Reduction pursuant to P.L. 107-
              248...........................                    -103
    40.76   Reduction pursuant to P.L. 107-
              206...........................         -22
    41.00   Transferred to other accounts...         -25        -230
    42.00   Transferred from other accounts.          33          20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      10,501      12,814      12,079
          Spending authority from offsetting
              collections:

    68.00   Spending authority from
              offsetting collections (new)..          64          50          50
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -6
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          58          50          50
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      10,559      12,865      12,129
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      11,168      11,029      12,599
    73.10 Total new obligations.............      10,487      12,260      11,763
    73.20 Total outlays (gross).............     -10,486     -10,689     -11,705
    73.40 Adjustments in expired accounts
            (net)...........................        -100
    73.45 Recoveries of prior year
            obligations.....................         -48
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           6
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
    74.40 Obligated balance, end of year....      11,029      12,599      12,657
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       2,827       3,382       3,191
    86.93 Outlays from discretionary
            balances........................       7,658       7,307       8,514
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      10,486      10,689      11,705
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -106          -5          -5
    88.40     Offsetting collections, Non-
                Federal sources, Other......          45         -45         -45
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -61         -50         -50
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           6
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      10,501      12,815      12,079
    90.00 Outlays...........................      10,425      10,639      11,655
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3010-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Combat aircraft...................       3,031       4,457       4,225
    0702  Airlift aircraft..................       3,811       4,509       3,905
    0703  Trainer aircraft..................         223         204         281
    0704  Other aircraft....................         691         727         730
    0705  Modification of inservice aircraft       1,738       1,879       1,919
    0706  Aircraft spares and repair parts..         295         274         202
    0707  Aircraft support equipment and
            facilities......................         756         793         818
                                               ---------   ---------  ----------
    0791    Total direct....................      10,544      12,843      12,079
    0801  Reimbursable......................          78          50          50
                                               ---------   ---------  ----------
    0893  Total budget plan.................      10,622      12,893      12,129
    ---------------------------------------------------------------------------

    [[Page 268]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3010-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services          38          39          37
    31.0    Equipment.......................      10,375      12,167      11,676
                                               ---------   ---------  ----------
    99.0      Direct obligations............      10,413      12,206      11,713
    99.0  Reimbursable obligations..........          74          54          50
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      10,487      12,260      11,763
    ---------------------------------------------------------------------------

                         Missile Procurement, Air Force

        For construction, procurement, and modification of missiles,
    spacecraft, rockets, and related equipment, including spare parts and
    accessories therefor, ground handling equipment, and training devices;
    expansion of public and private plants, Government-owned equipment and
    installation thereof in such plants, erection of structures, and
    acquisition of land, for the foregoing purposes, and such lands and
    interests therein, may be acquired, and construction prosecuted thereon
    prior to approval of title; reserve plant and Government and contractor-
    owned equipment layaway; and other expenses necessary for the foregoing
    purposes including rents and transportation of things, [$3,174,739,000]
    $4,393,039,000, to remain available for obligation until September 30,
    [2005] 2006. (10 U.S.C. 1905, 2271-79, 2363, 2386, 2653, 2672, 2672a,
    8013, 8062, 9501-02, 9531-32, 9741-42; 50 U.S.C. 451, 453, 455;
    Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3020-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Ballistic missiles................          28          42          47
    00.02 Other missiles....................         196         189         334
    00.03 Modification of inservice missiles         534         550         578
    00.04 Spares and repair parts...........          55          50          71
    00.05 Other support.....................       2,104       1,896       3,041
    09.01 Reimbursable program..............          13          76          75
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,930       2,803       4,146
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         475         327         613
    22.00 New budget authority (gross)......       2,774       2,981       4,468
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          15         108
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,264       3,416       5,081
    23.95 Total new obligations.............      -2,930      -2,803      -4,146
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7
    24.40 Unobligated balance carried
            forward, end of year............         327         613         935
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,990       3,169       4,393
    40.35   Appropriation rescinded.........         -12
    40.36   Unobligated balance rescinded...         -58        -208
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -21
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -30
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -6
    41.00   Transferred to other accounts...        -133         -25
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,760       2,905       4,393
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          11          75          75
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          14          75          75
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,774       2,981       4,468
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,487       2,631       2,549
    73.10 Total new obligations.............       2,930       2,803       4,146
    73.20 Total outlays (gross).............      -2,731      -2,777      -3,466
    73.40 Adjustments in expired accounts
            (net)...........................         -38
    73.45 Recoveries of prior year
            obligations.....................         -15        -108
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
    74.40 Obligated balance, end of year....       2,631       2,549       3,229
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,062       1,051       1,729
    86.93 Outlays from discretionary
            balances........................       1,669       1,726       1,737
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,731       2,777       3,466
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -12         -59         -59
    88.40     Offsetting collections, Non-
                Federal sources, Other......                     -16         -16
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -12         -75         -75
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,760       2,906       4,393
    90.00 Outlays...........................       2,719       2,702       3,391
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3020-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Ballistic missiles................          30          48          51
    0702  Other missiles....................         189         222         382
    0703  Modification of inservice missiles         545         595         622
    0704  Spares and repair parts...........          58          48          78
    0705  Other support.....................       1,874       2,210       3,260
                                               ---------   ---------  ----------
    0791    Total direct....................       2,695       3,121       4,393
    0801  Reimbursable......................          13          75          75
                                               ---------   ---------  ----------
    0893  Total budget plan.................       2,708       3,196       4,468
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3020-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services          31          34          22
    31.0    Equipment.......................       2,886       2,693       4,049
                                               ---------   ---------  ----------
    99.0      Direct obligations............       2,917       2,727       4,072
    99.0  Reimbursable obligations..........          13          76          75
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,930       2,803       4,146
    ---------------------------------------------------------------------------

                      Procurement of Ammunition, Air Force

        For construction, procurement, production, and modification of
    ammunition, and accessories therefor; specialized equipment and training
    devices; expansion of public and private plants, including ammunition
    facilities authorized by section 2854 of title 10, United States Code,
    and the land necessary therefor, for the foregoing purposes, and such
    lands and interests therein, may be acquired, and construction
    prosecuted thereon prior to approval of title; and procurement and
    installation of equipment, appliances, and machine tools in public and
    private plants; reserve plant and Government and contractor-owned
    equipment layaway; and other expenses necessary for the foregoing
    purposes, [$1,288,164,000] $1,284,725,000, to remain available for
    obligation until September 30, [2005] 2006, of which $166,000,000 shall
    be available for the Air National Guard and Air Force Reserve.
    (Department of Defense Appropriations Act, 2003.)

    [[Page 269]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3011-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Ammunition........................         944       1,192       1,243
    00.02 Weapons...........................           2           4          17
    09.01 Reimbursable program..............           1          16          13
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         947       1,212       1,273
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          71          91         157
    22.00 New budget authority (gross)......         968       1,277       1,298
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,045       1,368       1,455
    23.95 Total new obligations.............        -947      -1,212      -1,273
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7
    24.40 Unobligated balance carried
            forward, end of year............          91         157         181
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         982       1,288       1,285
    40.36   Unobligated balance rescinded...          -6
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -6
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -10
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -2
    41.00   Transferred to other accounts...                     -14
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         968       1,265       1,285
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           2          13          13
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......                      13          13
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         968       1,277       1,298
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         888       1,170       1,544
    73.10 Total new obligations.............         947       1,212       1,273
    73.20 Total outlays (gross).............        -671        -838      -1,164
    73.40 Adjustments in expired accounts
            (net)...........................          15
    73.45 Recoveries of prior year
            obligations.....................          -6
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -5
    74.40 Obligated balance, end of year....       1,170       1,544       1,653
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          36         108         109
    86.93 Outlays from discretionary
            balances........................         635         730       1,055
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         671         838       1,164
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2
    88.40     Offsetting collections, Non-
                Federal sources, Other......                     -13         -13
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2         -13         -13
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         968       1,264       1,285
    90.00 Outlays...........................         668         825       1,151
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3011-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Ammunition........................         969       1,263       1,266
    0702  Weapons...........................           2           4          19
                                               ---------   ---------  ----------
    0791    Total direct....................         971       1,267       1,285
    0801  Reimbursable......................           3          13          13
                                               ---------   ---------  ----------
    0893  Total budget plan.................         974       1,280       1,298
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3011-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           1           1           1
    31.0    Equipment.......................         945       1,195       1,259
                                               ---------   ---------  ----------
    99.0      Direct obligations............         946       1,196       1,260
    99.0  Reimbursable obligations..........           1          16          13
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         947       1,212       1,273
    ---------------------------------------------------------------------------

                          Other Procurement, Air Force

        For procurement and modification of equipment (including ground
    guidance and electronic control equipment, and ground electronic and
    communication equipment), and supplies, materials, and spare parts
    therefor, not otherwise provided for; the purchase of passenger motor
    vehicles for replacement only, and the purchase of both light armored
    vehicles not in excess of 12,000 pounds gross vehicle weight and the
    purchase of 2 vehicles required for physical security of personnel,
    notwithstanding price limitations applicable to passenger vehicles but
    not to exceed $232,000 per vehicle; lease of passenger motor vehicles;
    and expansion of public and private plants, Government-owned equipment
    and installation thereof in such plants, erection of structures, and
    acquisition of land, for the foregoing purposes, and such lands and
    interests therein, may be acquired, and construction prosecuted thereon,
    prior to approval of title; reserve plant and Government and contractor-
    owned equipment layaway, [$10,672,712,000] $11,583,659,000, to remain
    available for obligation until September 30, [2005] 2006, of which
    $168,000,000 shall be available for the Air National Guard and Air Force
    Reserve. (10 U.S.C. 2110, 2353, 2386, 8013, 9505, 9531-32; 50 U.S.C.
    491-94; Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3080-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Vehicular equipment...............         318         324         251
    00.03 Electronics and telecommunications
            equipment.......................       1,244       1,437       1,594
    00.04 Other base maintenance and support
            equipment.......................       8,878       7,617       9,109
    00.05 Spares and repair parts...........          39          61          38
    09.01 Reimbursable program..............         120         311         300
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      10,599       9,750      11,292
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,744         631       1,735
    22.00 New budget authority (gross)......       9,119      10,855      11,884
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          16
    22.22 Unobligated balance transferred
            from other accounts.............         360
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      11,240      11,486      13,619
    23.95 Total new obligations.............     -10,599      -9,750     -11,292
    23.98 Unobligated balance expiring or
            withdrawn.......................         -10
    24.40 For completion of prior year
            budget plans....................         631       1,735       2,326
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       8,834      10,655      11,584
    40.35   Appropriation rescinded.........         -53
    40.36   Unobligated balance rescinded...         -43
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -56
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -85
    40.76   Reduction pursuant to P.L. 107-
              206...........................         -18
    41.00   Transferred to other accounts...          -3         -30
    42.00   Transferred from other accounts.         339          15
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       9,000      10,554      11,584
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         102         300         300
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          17
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         119         300         300
                                               ---------   ---------  ----------

    [[Page 270]]

    70.00   Total new budget authority
              (gross).......................       9,119      10,855      11,884
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,639       3,708       3,263
    73.10 Total new obligations.............      10,599       9,750      11,292
    73.20 Total outlays (gross).............     -10,395     -10,195     -11,379
    73.40 Adjustments in expired accounts
            (net)...........................        -105
    73.45 Recoveries of prior year
            obligations.....................         -16
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -17
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
    74.40 Obligated balance, end of year....       3,708       3,263       3,176
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       7,275       6,754       7,465
    86.93 Outlays from discretionary
            balances........................       3,120       3,441       3,914
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      10,395      10,195      11,379
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -103        -109        -109
    88.40     Offsetting collections, Non-
                Federal sources, Other......                    -191        -191
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -103        -300        -300
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -17
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       9,000      10,555      11,584
    90.00 Outlays...........................      10,291       9,895      11,079
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3080-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0702  Vehicular equipment...............         294         352         247
    0703  Electronics and telecommunications
            equipment.......................       1,193       1,456       1,670
    0704  Other base maintenance and support
            equipment.......................       7,857       8,729       9,630
    0705  Spares and repair parts...........          35          41          37
                                               ---------   ---------  ----------
    0791    Total direct....................       9,380      10,578      11,584
    0801  Reimbursable......................         129         300         300
                                               ---------   ---------  ----------
    0893  Total budget plan.................       9,510      10,878      11,884
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3080-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services          30          38          36
    31.0    Equipment.......................      10,449       9,401      10,956
                                               ---------   ---------  ----------
    99.0      Direct obligations............      10,479       9,439      10,992
    99.0  Reimbursable obligations..........         120         311         300
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      10,599       9,750      11,292
    ---------------------------------------------------------------------------

                            Procurement, Defense-Wide

        For expenses of activities and agencies of the Department of Defense
    (other than the military departments) necessary for procurement,
    production, and modification of equipment, supplies, materials, and
    spare parts therefor, not otherwise provided for; the purchase of
    passenger motor vehicles for replacement only; the purchase of both
    light armored vehicles not in excess of 12,000 pounds gross vehicle
    weight and the purchase of 4 vehicles required for physical security of
    personnel, notwithstanding price limitations applicable to passenger
    vehicles but not to exceed $250,000 per vehicle; expansion of public and
    private plants, equipment, and installation thereof in such plants,
    erection of structures, and acquisition of land for the foregoing
    purposes, and such lands and interests therein, may be acquired, and
    construction prosecuted thereon prior to approval of title; reserve
    plant and Government and contractor-owned equipment layaway,
    [$3,444,455,000] $3,691,006,000, to remain available for obligation
    until September 30, [2005] 2006. (Department of Defense Appropriations
    Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0300-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major equipment...................       1,745       2,004       1,514
    00.02 Special Operations Command........         384         777       1,660
    00.03 Chemical/Biological Defense.......         447         431         466
    09.01 Reimbursable program..............         181         111         242
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,757       3,324       3,882
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         652         960       1,097
    22.00 New budget authority (gross)......       2,956       3,461       3,933
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         138
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,747       4,421       5,030
    23.95 Total new obligations.............      -2,757      -3,324      -3,882
    23.98 Unobligated balance expiring or
            withdrawn.......................         -30
    24.40 Unobligated balance carried
            forward, end of year............         960       1,097       1,147
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,502       3,418       3,691
    40.35   Appropriation rescinded.........         -35
    40.36   Unobligated balance rescinded...        -113
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -17
    40.73   Reduction pursuant to P.L. 107-
              206...........................         -19
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -26
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -5
    41.00   Transferred to other accounts...          -7         -42
    42.00   Transferred from other accounts.         476
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,782       3,350       3,691
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          87         111         242
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          87
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         174         111         242
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,956       3,461       3,933
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,053       2,211       2,394
    73.10 Total new obligations.............       2,757       3,324       3,882
    73.20 Total outlays (gross).............      -2,347      -3,141      -3,504
    73.40 Adjustments in expired accounts
            (net)...........................         -32
    73.45 Recoveries of prior year
            obligations.....................        -138
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -87
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           5
    74.40 Obligated balance, end of year....       2,211       2,394       2,772
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         910       1,117       1,350
    86.93 Outlays from discretionary
            balances........................       1,437       2,024       2,156
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,347       3,141       3,504
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -41        -101        -216
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -51         -10         -26
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -92        -111        -242
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -87

    [[Page 271]]

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,782       3,350       3,691
    90.00 Outlays...........................       2,256       3,029       3,263
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0300-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Major equipment...................       1,650       2,057       1,206
    0702  Special Operations Command........         752         862       1,978
    0703  Chemical/Biological Defense.......         499         437         506
                                               ---------   ---------  ----------
    0791    Total direct....................       2,902       3,357       3,691
    0801  Reimbursable......................         180         111         242
                                               ---------   ---------  ----------
    0893  Total budget plan.................       3,082       3,468       3,933
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0300-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    21.0    Travel and transportation of
              persons.......................                       1           1
    25.1    Advisory and assistance services           6           6           6
    25.2    Other services..................           2           4           7
    25.3    Other purchases of goods and
              services from Government
              accounts......................          13          13          23
    25.4    Operation and maintenance of
              facilities....................           1
    25.7    Operation and maintenance of
              equipment.....................           2
    26.0    Supplies and materials..........           4           3           4
    31.0    Equipment.......................       2,548       3,186       3,600
                                               ---------   ---------  ----------
    99.0      Direct obligations............       2,576       3,213       3,641
    99.0  Reimbursable obligations..........         181         111         241
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,757       3,324       3,882
    ---------------------------------------------------------------------------

                     [National Guard and Reserve Equipment]

        [For procurement of aircraft, missiles, tracked combat vehicles,
    ammunition, other weapons, and other procurement for the reserve
    components of the Armed Forces, $100,000,000, to remain available for
    obligation until September 30, 2005: Provided, That the Chiefs of the
    Reserve and National Guard components shall, not later than 30 days
    after the enactment of this Act, individually submit to the
    congressional defense committees the modernization priority assessment
    for their respective Reserve or National Guard component.] (Department
    of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0350-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Reserve equipment.................         160          78          17
    00.02 National Guard equipment..........         525         105          25
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 31.0)...................         685         182          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          96         138          51
    22.00 New budget authority (gross)......         697          96
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         823         234          51
    23.95 Total new obligations.............        -685        -182         -42
    24.40 Unobligated balance carried
            forward, end of year............         138          51          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         699         100
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -5
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -2
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -1
    41.00   Transferred to other accounts...                      -1
    42.00   Transferred from other accounts.           4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         697          96
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         324         592         522
    73.10 Total new obligations.............         685         182          42
    73.20 Total outlays (gross).............        -372        -252        -299
    73.40 Adjustments in expired accounts
            (net)...........................         -16
    73.45 Recoveries of prior year
            obligations.....................         -30
    74.40 Obligated balance, end of year....         592         522         264
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         159          16
    86.93 Outlays from discretionary
            balances........................         213         236         300
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         372         252         299
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         697          96
    90.00 Outlays...........................         372         252         299
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0350-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0601  Reserve Equipment.................         192          39
    0602  National Guard Equipment..........         503          59
                                               ---------   ---------  ----------
    0893  Total budget plan.................         695          98
    ---------------------------------------------------------------------------

                        Defense Production Act Purchases

        For activities by the Department of Defense pursuant to sections
    108, 301, 302, and 303 of the Defense Production Act of 1950 (50 U.S.C.
    App. 2078, 2091, 2092, and 2093), [$73,057,000] $67,516,000, to remain
    available until expended[, of which, $5,000,000 may be used for a
    Processable Rigid-Rod Polymeric Material Supplier Initiative under title
    III of the Defense Production Act of 1950 (50 U.S.C. App. 2091 et seq.)
    to develop affordable production methods and a domestic supplier for
    military and commercial processable rigid-rod polymeric materials].
    (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0360-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Defense Production Act Purchases..          40          44          68
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          40          44          68
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9          12          40
    22.00 New budget authority (gross)......          40          72          68
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          52          84         108
    23.95 Total new obligations.............         -40         -44         -68
    24.40 Unobligated balance carried
            forward, end of year............          12          40          39
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          40          73          68
    41.00   Transferred to other DoD
              accounts......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          40          72          68
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          23          50          14
    73.10 Total new obligations.............          40          44          68
    73.20 Total outlays (gross).............          -9         -80         -70
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....          50          14          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9          36          34
    86.93 Outlays from discretionary
            balances........................                      44          36
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9          80          70
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          40          72          68
    90.00 Outlays...........................           9          80          70
    ---------------------------------------------------------------------------

    [[Page 272]]

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0360-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Defense Production Act Purchases..          40          72          68
                                               ---------   ---------  ----------
    0893  Total budget plan.................          40          72          68
    ---------------------------------------------------------------------------

        The Defense Production Act (50 U.S.C. App. 2061, et seq.) authorizes
    the use of Federal funds to correct industrial resource shortfalls and
    promote critical technology items which are essential to the national
    defense.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0360-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    26.0  Supplies and materials............          40          44          11
    31.0  Equipment.........................                                  57
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          40          44          68
    ---------------------------------------------------------------------------

                 Chemical Agents and Munitions Destruction, Army

        For expenses, not otherwise provided for, necessary for the
    destruction of the United States stockpile of lethal chemical agents and
    munitions in accordance with the provisions of section 1412 of the
    Department of Defense Authorization Act, 1986 (50 U.S.C. 1521), and for
    the destruction of other chemical warfare materials that are not in the
    chemical weapon stockpile, [$1,490,199,000] $1,650,076,000, of which
    [$974,238,000] $1,199,168,000 shall be for Operation and maintenance to
    remain available until September 30, [2004, $213,278,000] 2005;
    $79,212,000 shall be for Procurement to remain available until September
    30, [2005, and $302,683,000] 2006; $251,881,000 shall be for Research,
    development, test and evaluation to remain available until September 30,
    [2004] 2005; $119,815,000 shall be for military construction to remain
    available until September 30, 2008; and no more than $132,677,000 may be
    for the Chemical Stockpile Emergency Preparedness Program, of which
    $44,168,000 shall be for activities on military installations and
    $88,509,000 shall be to assist state and local governments. (Department
    of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-0390-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operation and maintenance.........         746         956       1,199
    00.02 Research, development, test and
            evaluation......................         219         292         249
    00.03 Procurement.......................         185         161         115
    00.04 Construction......................                                 100
    09.01 Reimbursable program..............           4           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,154       1,414       1,668
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          21          18          58
    22.00 New budget authority (gross)......       1,118       1,454       1,655
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          34
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,173       1,472       1,713
    23.95 Total new obligations.............      -1,154      -1,414      -1,668
    24.40 For completion of prior year
            budget plans....................          18          58          45
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,181       1,470       1,650
    40.35   Appropriation rescinded.........         -75
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -8
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -1
    41.00   Transferred to other DOD
              accounts......................                     -21
    42.00   Transferred from other DoD
              accounts......................          17
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,114       1,449       1,650
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           6           5           5
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           4           5           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,118       1,454       1,655
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         511         462         692
    73.10 Total new obligations.............       1,154       1,414       1,668
    73.20 Total outlays (gross).............      -1,167      -1,184      -1,485
    73.40 Adjustments in expired accounts
            (net)...........................          -5
    73.45 Recoveries of prior year
            obligations.....................         -34
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
    74.40 Obligated balance, end of year....         462         692         875
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         709         870         926
    86.93 Outlays from discretionary
            balances........................         458         314         559
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,167       1,184       1,485
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -5          -5          -5
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,114       1,449       1,650
    90.00 Outlays...........................       1,161       1,179       1,480
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-0390-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Operation and maintenance.........         748         947       1,199
    0702  Research, development, test and
            evaluation......................         202         294         252
    0703  Procurement.......................         164         207          79
    0704  Construction......................                                 120
                                               ---------   ---------  ----------
    0791    Total direct....................       1,115       1,449       1,650
    0801  Reimbursable......................                       5           5
                                               ---------   ---------  ----------
    0893  Total budget plan.................       1,115       1,454       1,655
    ---------------------------------------------------------------------------

        P.L. 99-145 authorized an appropriation to the Chemical Agents and
    Munitions Destruction account to destroy the U.S. inventory of lethal
    chemical agents and munitions and related (non-stockpile) materiel thus
    avoiding future risks and costs associated with the continued storage of
    chemical warfare materiel. The program supports the Chemical Weapons
    Convention initiatives to rid the world of chemical weapons.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-0390-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    21.0    Travel and transportation of
              persons.......................           2           2           2
    24.0    Printing and reproduction.......                       1           1
    25.1    Advisory and assistance services         130         117         124
    25.2    Other services..................          27          18          18
    25.3    Other purchases of goods and
              services from Government
              accounts......................         256         226         226
    25.4    Operation and maintenance of
              facilities....................         510         499         499
    25.5    Research and development
              contracts.....................          64         231         231
    26.0    Supplies and materials..........           2          42         391
    31.0    Equipment.......................         156         270         168
    41.0    Grants, subsidies, and
              contributions.................           4           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,151       1,409       1,663
    99.0  Reimbursable obligations..........           3           5           5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,154       1,414       1,668
    ---------------------------------------------------------------------------

    [[Page 273]]

                Arms Initiative Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-4275-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           2
    22.00 New financing authority (gross)...                       1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           2           2
    24.40 Unobligated balance carried
            forward, end of year............           1           2           2
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-4275-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                      45
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                      45
    2199  Guaranteed amount of guaranteed
            loan commitments................                      39
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          28          27          71
    2231  Disbursements of new guaranteed
            loans...........................                      45
    2251  Repayments and prepayments........          -1          -1          -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          27          71          69
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          23          60          59
    ---------------------------------------------------------------------------

        This program, first authorized in PL 102-484 (the 1992 Authorization
    Act), is to encourage commercial firms to use idle government owned,
    contractor-operated Army ammunition manufacturing facilities to ensure a
    viable industrial base for the manufacture of ammunition.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of loan guarantees that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   21-4275-0-3-051    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           1              1             1              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1              1             1              2
        LIABILITIES:
    2105  Federal liabilities: Other........           1              1             1              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              1             1              2
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1              1             1              2
    -----------------------------------------------------------------------------------------------

                   RESEARCH, DEVELOPMENT, TEST AND EVALUATION

        Appropriations in this title support modernization through basic and
    applied research, fabrication of technology-demonstration devices, and
    development and testing of prototypes and full-scale preproduction
    hardware. This work is performed by contractors, government laboratories
    and facilities, universities and nonprofit organizations. Research and
    development programs are funded to cover annual needs. Resources
    presented under the RDT&E title contribute primarily to achieving the
    Department's annual goals of transforming the force for new missions and
    reforming processes and organizations. Performance targets in support of
    these goals contribute to the Department's efforts to mitigate future
    challenges risk and institutional risk, as directed in the 2001
    Quadrennial Defense Review.

        The budget plan for each appropriation is shown as a separate table
    immediately following the program and financing schedules for that
    appropriation. Funds for each fiscal year are available for obligation
    for a two-year period beginning on the first day of that fiscal year.

        The 2004 budget provides for major technology and development
    efforts. These include science and technology programs, development of
    weapons systems and supporting systems, including missile defense and
    support of test and evaluation programs and necessary infrastructure.
    The Department continues to emphasize technology efforts that ensure
    that the Nation will maintain a technological advantage over potential
    adversaries.

                                  Federal Funds

    General and special funds:

                Research, Development, Test and Evaluation, Army

        For expenses necessary for basic and applied scientific research,
    development, test and evaluation, including maintenance, rehabilitation,
    lease, and operation of facilities and equipment, [$7,669,656,000]
    $9,122,825,000, to remain available for obligation until September 30,
    [2004] 2005. (10 U.S.C. 2353; Department of Defense Appropriations Act,
    2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2040-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Basic research....................         230         210         330
    00.02 Applied research..................         917         796         677
    00.03 Advanced technology development...         942       1,020         845
    00.04 Advanced component development and
            prototypes......................         909         831         792
    00.05 System development and
            demonstration...................       2,197       2,221       4,430
    00.06 Management support................       1,010         863         878
    00.07 Operational system development....       1,071       1,007         973
    09.01 Reimbursable program..............       2,671       2,329       1,837
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       9,947       9,277      10,762
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,025       1,097       1,118
    22.00 New budget authority (gross)......       9,545       9,298      10,960
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         476
    22.22 Unobligated balance transferred
            from other accounts.............           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      11,049      10,395      12,078
    23.95 Total new obligations.............      -9,947      -9,277     -10,762
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
    24.40 For completion of prior year
            budget plans....................       1,097       1,118       1,315
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       7,114       7,628       9,123
    40.36   Unobligated balance rescinded...          -6
    40.72   Reduction pursuant to P.L. 107-
              117...........................         -53
    40.73   Reduction pursuant to P.L. 107-
              206...........................         -14
    40.75   Reduction pursuant to P.L. 107-
              248...........................                     -69

    [[Page 274]]

    40.76   Reduction pursuant to P.L. 107-
              206...........................         -15
    41.00   Transferred to other accounts...          -3         -44
    42.00   Transferred from other accounts.           7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       7,030       7,515       9,123
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       2,050       1,783       1,837
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         465
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       2,515       1,783       1,837
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       9,545       9,298      10,960
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,101       3,452       3,925
    73.10 Total new obligations.............       9,947       9,277      10,762
    73.20 Total outlays (gross).............      -8,765      -8,805     -10,047
    73.40 Adjustments in expired accounts
            (net)...........................         -64
    73.45 Recoveries of prior year
            obligations.....................        -476
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -465
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................         174
    74.40 Obligated balance, end of year....       3,452       3,925       4,640
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       4,925       5,654       6,536
    86.93 Outlays from discretionary
            balances........................       3,840       3,151       3,511
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       8,765       8,805      10,047
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -2,081      -1,783      -1,837
    88.40     Non-Federal sources...........        -115
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,196      -1,783      -1,837
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -465
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............         146
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       7,030       7,515       9,123
    90.00 Outlays...........................       6,569       7,022       8,210
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      98         103
    99.01 Outlays...........................                      98         103
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2040-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Basic research....................         221         244         343
    0702  Applied research..................         865         858         641
    0703  Advanced technology development...         907       1,040         806
    0704  Demonstration/validation..........         859         857         784
    0705  Engineering manufacturing
            development.....................       2,141       2,512       4,738
    0706  Management support................         928         950         860
    0707  Operational system development....       1,096       1,073         950
                                               ---------   ---------  ----------
    0791    Total direct....................       7,018       7,535       9,123
    0801  Reimbursable......................       2,607       1,783       1,837
                                               ---------   ---------  ----------
    0893  Total budget plan.................       9,625       9,318      10,959
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2040-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         491         533         566
    11.3      Other than full-time permanent          41          58          61
    11.5      Other personnel compensation..          24          27          30
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         556         618         657
    12.1    Civilian personnel benefits.....         129         224          92
    13.0    Benefits for former personnel...           5           2          10
    21.0    Travel and transportation of
              persons.......................          58          72         125
    22.0    Transportation of things........           9          13          22
    23.1    Rental payments to GSA..........           3           2           4
    23.2    Rental payments to others.......           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           5          34          60
    24.0    Printing and reproduction.......           1           2           4
    25.1    Advisory and assistance services         295          73          80
    25.2    Other services..................          89          27          47
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         597         601       1,051
    25.3      Purchases from revolving funds                      64          11
    25.4    Operation and maintenance of
              facilities....................                      97         170
    25.5    Research and development
              contracts.....................       4,973       4,399       5,333
    25.7    Operation and maintenance of
              equipment.....................          30          32          55
    25.8    Subsistence and support of
              persons.......................                      26          46
    26.0    Supplies and materials..........          95         116         204
    31.0    Equipment.......................         257         303         530
    32.0    Land and structures.............           2           2           3
    41.0    Grants, subsidies, and
              contributions.................         170         241         421
                                               ---------   ---------  ----------
    99.0      Direct obligations............       7,276       6,948       8,925
    99.0  Reimbursable obligations..........       2,671       2,329       1,837
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       9,947       9,277      10,762
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 21-2040-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       7,724       8,245       8,287
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       9,257       8,938       8,822
    ---------------------------------------------------------------------------

                Research, Development, Test and Evaluation, Navy

        For expenses necessary for basic and applied scientific research,
    development, test and evaluation, including maintenance, rehabilitation,
    lease, and operation of facilities and equipment, [$13,946,085,000]
    $14,106,653,000, to remain available for obligation until September 30,
    [2004] 2005: Provided, That funds appropriated in this paragraph which
    are available for the V-22 may be used to meet unique operational
    requirements of the Special Operations Forces: Provided further, That
    funds appropriated in this paragraph shall be available for the Cobra
    Judy program. (10 U.S.C. 174, 2352-54, 7522; Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1319-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Basic research....................         390         393         456
    00.02 Applied research..................         753         812         555
    00.03 Advanced technology development...         810         880         656
    00.04 Advanced component development and
            prototypes......................       2,514       1,827       2,618
    00.05 System development and
            demonstration...................       3,495       5,192       6,184
    00.06 Management support................         848         749         655
    00.07 Operational system development....       2,315       3,793       2,948
    09.01 Reimbursable program..............         240         220         195
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      11,365      13,866      14,267
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................         781       1,041         968
    22.00 New budget authority (gross)......      11,638      13,792      14,302
                                               ---------   ---------  ----------

    [[Page 275]]

    23.90   Total budgetary resources
              available for obligation......      12,419      14,833      15,270
    23.95 Total new obligations.............     -11,365     -13,866     -14,267
    23.98 Unobligated balance expiring or
            withdrawn.......................         -15
    24.40 Available to finance subsequent
            year budget plans...............       1,041         968       1,001
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      11,508      13,865      14,107
    40.36   Unobligated balance rescinded...         -19          -2
    40.72   Reduction pursuant to P.L. 107-
              117...........................        -120
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -6
    40.75   Reduction pursuant to P.L. 107-
              248...........................                    -117
    40.76   Reduction pursuant to P.L. 107-
              206...........................         -24
    41.00   Transferred to other accounts...                    -149
    42.00   Transferred from other accounts.          48
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      11,387      13,597      14,107
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         171         195         195
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          81
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         252         195         195
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      11,639      13,792      14,302
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       4,372       5,058       6,497
    73.10 Total new obligations.............      11,365      13,866      14,267
    73.20 Total outlays (gross).............     -10,511     -12,427     -13,742
    73.40 Adjustments in expired accounts
            (net)...........................         -92
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -81
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           5
    74.40 Obligated balance, end of year....       5,058       6,497       7,024
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       6,428       7,810       8,095
    86.93 Outlays from discretionary
            balances........................       4,083       4,617       5,647
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      10,511      12,427      13,742
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -140        -185        -185
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -11         -10         -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -151        -195        -195
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -81
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............         -20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      11,387      13,597      14,107
    90.00 Outlays...........................      10,359      12,232      13,547
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                       6           6
    99.01 Outlays...........................                       6           6
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1319-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Basic research....................         395         412         460
    0702  Applied research..................         756         806         536
    0703  Advanced technology development...         847         813         644
    0704  Demonstration/validation..........       1,632       2,708       2,600
    0705  Engineering manufacturing support.       3,608       5,265       6,262
    0706  Management support................         877         704         651
    0707  Operational system development....       3,265       2,922       2,954
                                               ---------   ---------  ----------
    0791    Total direct....................      11,379      13,631      14,107
    0801  Reimbursable......................         251         195         195
                                               ---------   ---------  ----------
    0893  Total budget plan.................      11,630      13,826      14,302
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1319-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          39          46          44
    11.3      Other than full-time permanent           3           3           2
    11.5      Other personnel compensation..                       1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          42          50          47
    12.1    Civilian personnel benefits.....           8          11          14
    21.0    Travel and transportation of
              persons.......................          29          33          27
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           1          11
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           2           3
    24.0    Printing and reproduction.......           1
    25.1    Advisory and assistance services         363         179         354
    25.2    Other services..................          61          26          85
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         307         749         394
    25.3      Purchases from revolving funds       2,709       1,851       2,627
    25.4    Operation and maintenance of
              facilities....................           3          26           1
    25.5    Research and development
              contracts.....................       7,520      10,693      10,437
    25.7    Operation and maintenance of
              equipment.....................           3                       5
    26.0    Supplies and materials..........           5           2           8
    31.0    Equipment.......................          67          12          67
    32.0    Land and structures.............           2                       2
                                               ---------   ---------  ----------
    99.0      Direct obligations............      11,125      13,646      14,072
    99.0  Reimbursable obligations..........         240         220         195
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      11,365      13,866      14,267
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 17-1319-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         701         670         647
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         636         734         729
    ---------------------------------------------------------------------------

              Research, Development, Test and Evaluation, Air Force

        For expenses necessary for basic and applied scientific research,
    development, test and evaluation, including maintenance, rehabilitation,
    lease, and operation of facilities and equipment, [$18,822,569,000]
    $20,336,258,000, to remain available for obligation until September 30,
    [2004] 2005. (10 U.S.C. 174, 1581, 1584, 2271-79, 2352-54, 2386, 2663,
    2672, 2672a, 8012, 9503-04, 9532; 42 U.S.C. 1891-92; 50 U.S.C. App.
    2093(g); Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3600-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Basic research....................         219         206         308
    00.02 Applied research..................         760         795         760
    00.03 Advanced technology development...         538         675       1,301
    00.04 Advanced component development and
            prototypes......................       1,009       1,343       2,081
    00.05 System development and
            demonstration...................       3,513       4,188       4,537
    00.06 Management support................         885         657         628
    00.07 Operational system development....       7,815       9,786      10,424
    09.01 Reimbursable program..............       2,372       2,227       3,411
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      17,111      19,877      23,450
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................       1,511       1,287       2,078
    22.00 New budget authority (gross)......      16,898      20,667      23,747
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          13
    22.22 Unobligated balance transferred
            from other accounts.............           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      18,429      21,954      25,825
    23.95 Total new obligations.............     -17,111     -19,877     -23,450

    [[Page 276]]

    23.98 Unobligated balance expiring or
            withdrawn.......................         -29
    24.40 For completion of prior year
            budget plans....................       1,287       2,078       2,375
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      14,868      18,729      20,336
    40.35   Appropriation rescinded.........        -194
    40.36   Unobligated balance rescinded...         -69         -69
    40.72   Reduction pursuant to P.L. 107-
              117...........................        -122
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -7
    40.75   Reduction pursuant to P.L. 107-
              248...........................                    -171
    40.76   Reduction pursuant to P.L. 107-
              206...........................         -30
    41.00   Transferred to other accounts...         -38        -144
    42.00   Transferred from other accounts.         112         106
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      14,520      18,451      20,336
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       2,272       2,216       3,411
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         106
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       2,378       2,216       3,411
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      16,898      20,667      23,747
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       5,761       6,210       6,395
    73.10 Total new obligations.............      17,111      19,877      23,450
    73.20 Total outlays (gross).............     -16,556     -19,692     -22,450
    73.40 Adjustments in expired accounts
            (net)...........................         -64
    73.45 Recoveries of prior year
            obligations.....................         -13
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -106
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          77
    74.40 Obligated balance, end of year....       6,210       6,395       7,395
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      10,477      13,671      15,940
    86.93 Outlays from discretionary
            balances........................       6,079       6,021       6,510
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      16,556      19,692      22,450
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -2,315      -2,188      -3,367
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -13         -28         -44
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,328      -2,216      -3,411
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -106
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          56
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      14,520      18,451      20,336
    90.00 Outlays...........................      14,228      17,476      19,039
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                     531         551
    99.01 Outlays...........................                     531         551
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3600-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Basic research....................         222         218         322
    0702  Applied research..................         749         829         758
    0703  Advanced technology development...         546         704       1,146
    0704  Demonstration/validation..........         910       1,468       2,177
    0705  Engineering manufacturing
            development.....................       3,506       4,507       4,577
    0706  Management support................         893         637         630
    0707  Operational system development....       7,652      10,198      10,726
                                               ---------   ---------  ----------
    0791    Total direct....................      14,479      18,561      20,336
    0801  Reimbursable......................       2,366       2,216       3,411
                                               ---------   ---------  ----------
    0893  Total budget plan.................      16,846      20,777      23,747
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3600-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         284         283         299
    11.3      Other than full-time permanent          23          22          24
    11.5      Other personnel compensation..           9           8           9
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         316         313         332
    12.1    Civilian personnel benefits.....          75          72         100
    21.0    Travel and transportation of
              persons.......................          46          31          40
    22.0    Transportation of things........           4           2           3
    23.2    Rental payments to others.......           2           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          10           5           6
    24.0    Printing and reproduction.......           1
    25.1    Advisory and assistance services         330         283         280
    25.2    Other services..................         610         441         426
    25.3    Other purchases of goods and
              services from Government
              accounts......................           4          38          35
    25.4    Operation and maintenance of
              facilities....................          29          10          20
    25.5    Research and development
              contracts.....................      13,203      16,346      18,660
    26.0    Supplies and materials..........          66          84          94
    31.0    Equipment.......................          44          24          44
                                               ---------   ---------  ----------
    99.0      Direct obligations............      14,740      17,650      20,041
    99.0  Reimbursable obligations..........       2,371       2,227       3,409
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      17,111      19,877      23,450
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 57-3600-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       4,845       4,519       4,525
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,237       2,333       2,323
    ---------------------------------------------------------------------------

            Research, Development, Test and Evaluation, Defense-Wide

        For expenses of activities and agencies of the Department of Defense
    (other than the military departments), necessary for basic and applied
    scientific research, development, test and evaluation; advanced research
    projects as may be designated and determined by the Secretary of
    Defense, pursuant to law; maintenance, rehabilitation, lease, and
    operation of facilities and equipment, [$17,924,642,000]
    $17,974,257,000, to remain available for obligation until September 30,
    [2004] 2005. (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0400-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Basic research....................         483         531         221
    00.02 Applied research..................       1,671       1,745       1,743
    00.03 Advanced technology development...       1,968       2,514       2,571
    00.04 Advanced component development and
            prototypes......................       5,707       6,057       7,430
    00.05 System development and
            demonstration...................       1,417       1,450         499
    00.06 Management support................         666         642         588
    00.07 Operational system development....       2,929       4,293       4,831
    09.01 Reimbursable program..............         541         679         692
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      15,382      17,911      18,575
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,110       2,142       1,869
    22.00 New budget authority (gross)......      16,089      17,637      18,666
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         348
    22.22 Unobligated balance transferred
            from other accounts.............          11
                                               ---------   ---------  ----------

    [[Page 277]]

    23.90   Total budgetary resources
              available for obligation......      17,558      19,779      20,535
    23.95 Total new obligations.............     -15,382     -17,911     -18,575
    23.98 Unobligated balance expiring or
            withdrawn.......................         -35
    24.40 Unobligated balance carried
            forward, end of year............       2,142       1,869       1,960
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      15,477      17,334      17,974
    40.36   Unobligated balance rescinded...          -1         -20
    40.72   Reduction pursuant to P.L. 107-
              117...........................        -119
    40.73   Reduction pursuant to P.L. 107-
              206...........................         -17
    40.75   Reduction pursuant to P.L. 107-
              248...........................                    -168
    40.76   Reduction pursuant to P.L. 107-
              206...........................         -32
    41.00   Transferred to other accounts...         -36        -152
    42.00   Transferred from other accounts.         274           4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      15,546      16,998      17,974
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         417         639         692
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         126
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         543         639         692
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      16,089      17,637      18,666
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       6,411       7,923       9,340
    73.10 Total new obligations.............      15,382      17,911      18,575
    73.20 Total outlays (gross).............     -13,514     -16,494     -17,826
    73.40 Adjustments in expired accounts
            (net)...........................          -9
    73.45 Recoveries of prior year
            obligations.....................        -348
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -126
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................         125
    74.40 Obligated balance, end of year....       7,923       9,340      10,089
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       7,639       8,628       9,140
    86.93 Outlays from discretionary
            balances........................       5,875       7,866       8,686
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      13,514      16,494      17,826
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -430        -519        -589
    88.40     Offsetting collections, Non-
                Federal sources, Other......         -87        -120        -103
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -517        -639        -692
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -126
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............         100
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      15,546      16,998      17,974
    90.00 Outlays...........................      12,995      15,855      17,134
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      15          15
    99.01 Outlays...........................                      15          15
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0400-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Basic research....................         496         542         187
    0702  Applied research..................       1,711       1,796       1,735
    0703  Advanced technology development...       2,086       2,501       2,566
    0704  Demonstration/validation..........       5,978       5,721       7,636
    0705  Engineering manufacturing
            development.....................       1,411       1,478         379
    0706  Management support................         660         561         592
    0707  Operational system development....       3,171       4,462       4,880
                                               ---------   ---------  ----------
    0791    Total direct....................      15,513      17,061      17,974
    0801  Reimbursable......................         542         639         692
                                               ---------   ---------  ----------
    0893  Total budget plan.................      16,054      17,700      18,667
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0400-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          86          95          99
    11.3      Other than full-time permanent           4           4           4
    11.5      Other personnel compensation..           2           3           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          92         102         107
    12.1    Civilian personnel benefits.....          20          21          26
    21.0    Travel and transportation of
              persons.......................          23          25          35
    22.0    Transportation of things........           1           1           1
    23.1    Rental payments to GSA..........          10          10          13
    23.2    Rental payments to others.......           1           1           6
    23.3    Communications, utilities, and
              miscellaneous charges.........          12          14          24
    25.1    Advisory and assistance services         796         871       1,001
    25.2    Other services..................         184         236       3,335
    25.3    Other purchases of goods and
              services from Government
              accounts......................         221         211         225
    25.4    Operation and maintenance of
              facilities....................           9           6           8
    25.5    Research and development
              contracts.....................      13,187      15,358      12,786
    25.7    Operation and maintenance of
              equipment.....................          21          33          41
    26.0    Supplies and materials..........          19          23          30
    31.0    Equipment.......................         237         310         232
    32.0    Land and structures.............           1           1           1
    41.0    Grants, subsidies, and
              contributions.................           7           9          11
                                               ---------   ---------  ----------
    99.0      Direct obligations............      14,841      17,232      17,882
    99.0  Reimbursable obligations..........         541         679         693
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      15,382      17,911      18,575
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-0400-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,172       1,230       1,202
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          28          32          32
    ---------------------------------------------------------------------------

                   Developmental Test and Evaluation, Defense

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0450-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          70          23           3
    73.20 Total outlays (gross).............         -41         -20          -4
    73.40 Adjustments in expired accounts
            (net)...........................          -8
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
    74.40 Obligated balance, end of year....          23           3          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          41          20           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          40          20           4
    ---------------------------------------------------------------------------

                    Operational Test and Evaluation, Defense

        For expenses, not otherwise provided for, necessary for the
    independent activities of the Director, Operational Test and Evaluation,
    in the direction and supervision of operational test and evaluation,
    including initial operational test and evaluation which is conducted
    prior to, and in support of, production decisions; joint operational

    [[Page 278]]

    testing and evaluation; and administrative expenses in connection
    therewith, [$245,554,000] $286,661,000, to remain available for
    obligation until September 30, [2004] 2005. (Department of Defense
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0460-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Advanced technology development...           7           9          12
    00.06 Management support................         229         227         271
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         236         236         283
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          20          15          17
    22.00 New budget authority (gross)......         230         237         287
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         252         252         304
    23.95 Total new obligations.............        -236        -236        -283
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          15          17          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         232         241         287
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -2
    40.75   Reduction pursuant to P.L. 107-
              248...........................                      -2
    41.00   Transferred to other accounts...                      -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         230         237         287
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         114         152         155
    73.10 Total new obligations.............         236         236         283
    73.20 Total outlays (gross).............        -195        -233        -260
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.40 Obligated balance, end of year....         152         155         178
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          97         105         127
    86.93 Outlays from discretionary
            balances........................          98         128         133
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         195         233         260
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         230         237         287
    90.00 Outlays...........................         195         233         260
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0460-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0703  Advanced technology development...           8           9          13
    0706  Management Support................         221         229         274
                                               ---------   ---------  ----------
    0893  Total budget plan.................         229         238         287
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0460-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................           1           1           1
    25.1  Advisory and assistance services..          33          34          40
    25.3  Other purchases of goods and
            services from Government
            accounts........................         199         198         239
    25.4  Operation and maintenance of
            facilities......................           2           2           2
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         236         236         283
    ---------------------------------------------------------------------------

                              MILITARY CONSTRUCTION

        The Military Construction programs are intended to provide
    facilities required as a result of new weapon systems entering the
    inventory including aircraft and naval vessels, and other high priority
    initiatives. The program continues initiatives to improve living and
    working conditions, reduce operating costs, increase productivity, and
    conserve energy by upgrading or replacing facilities which have become
    functionally obsolete or can be made more efficient through relatively
    modest investments in improvements. Also included in this request are
    resources required to clean up and dispose of property consistent with
    the four closure rounds required by the Base Closure Acts of 1988 and
    1990.

        The budget plan for each appropriation is shown as a separate table
    immediately following the program and financing schedules for those
    appropriations that are available for obligation for more than one year.
    In 2004 it presents, by budget activity, the value of the program
    requested for the life of the multiple-year appropriations, with
    comparable amounts in 2002 and 2003. Resources presented under the
    Military Construction title contribute primarily to achieving the
    Department's annual performance goals of assuring readiness and
    sustainability. Performance targets in support of these goals contribute
    to the Department's efforts to mitigate force management and operational
    risk, as directed in the 2001 Quadrennial Defense Review.

                                  Federal Funds

    General and special funds:

                           Military Construction, Army

                            [(including rescission)]

        For acquisition, construction, installation, and equipment of
    temporary or permanent public works, military installations, facilities,
    and real property for the Army as currently authorized by law, including
    personnel in the Army Corps of Engineers and other personal services
    necessary for the purposes of this appropriation, and for construction
    and operation of facilities in support of the functions of the Commander
    in Chief, [$1,683,710,000] $1,536,010,000, to remain available until
    September 30, [2007] 2008: Provided, That of this amount, not to exceed
    [$163,135,000] $122,710,000 shall be available for study, planning,
    design, architect and engineer services, and host nation support, as
    authorized by law, unless the Secretary of Defense determines that
    additional obligations are necessary for such purposes and notifies the
    Committees on Appropriations of both Houses of Congress of his
    determination and the reasons therefor[: Provided further, That of the
    funds appropriated for ``Military Construction, Army'' in previous
    Military Construction Appropriation Acts, $49,376,000 are rescinded].
    (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2050-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................       1,599       1,383       1,271
    00.02 Minor construction................          19          18          20
    00.03 Planning..........................         156         110         135
    00.04 Supporting Activites..............           1          13          23
    09.01 Reimbursable program..............       2,447       2,080       2,075
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,222       3,604       3,524
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         833       1,063       1,092
    22.00 New budget authority (gross)......       4,181       3,634       3,536
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         273
    22.21 Unobligated balance transferred to
            other accounts..................         -16
    22.22 Unobligated balance transferred
            from other accounts.............          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,287       4,697       4,628
    23.95 Total new obligations.............      -4,222      -3,604      -3,524
    24.40 Unobligated balance carried
            forward, end of year............       1,063       1,092       1,105
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,799       1,684       1,536

    [[Page 279]]

    40.36   Unobligated balance rescinded...         -36         -49
    40.79   Reduction pursuant to P.L. 107-
              64............................         -20
    42.00   Transferred from other accounts.          36
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,779       1,634       1,536
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       2,328       2,000       2,000
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          74
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       2,402       2,000       2,000
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,181       3,634       3,536
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,164       1,857       2,277
    73.10 Total new obligations.............       4,222       3,604       3,524
    73.20 Total outlays (gross).............      -3,212      -3,186      -3,501
    73.40 Adjustments in expired accounts
            (net)...........................         -14
    73.45 Recoveries of prior year
            obligations.....................        -273
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -74
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          45
    74.40 Obligated balance, end of year....       1,857       2,277       2,299
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         880       2,068       2,063
    86.93 Outlays from discretionary
            balances........................       2,332       1,119       1,438
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,212       3,186       3,501
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -2,088      -2,000      -2,000
    88.40     Non-Federal sources...........        -270
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,358      -2,000      -2,000
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -74
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,779       1,634       1,536
    90.00 Outlays...........................         856       1,186       1,501
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      26          55
    99.01 Outlays...........................                      26          55
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2050-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Major construction................       1,578       1,473       1,373
    0702  Minor construction................          19          27          20
    0703  Planning..........................         158         163         123
    0704  Supporting Activities.............          12          20          21
                                               ---------   ---------  ----------
    0791    Total direct....................       1,768       1,684       1,536
    0801  Reimbursable......................       2,390       2,000       2,000
                                               ---------   ---------  ----------
    0893  Total budget plan.................       4,158       3,684       3,536
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2050-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          91
    11.3      Other than full-time permanent           8
    11.5      Other personnel compensation..           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         100
    12.1    Civilian personnel benefits.....           6
    21.0    Travel and transportation of
              persons.......................           2           1           2
    23.1    Rental payments to GSA..........           1           1           1
    24.0    Printing and reproduction.......                       1           1
    25.2    Other services..................                      38          40
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................          65         216         226
    25.3      Purchases from revolving funds          58
    25.4    Operation and maintenance of
              facilities....................                       1           1
    26.0    Supplies and materials..........                                   1
    31.0    Equipment.......................           3           1           1
    32.0    Land and structures.............       1,540       1,266       1,175
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,775       1,525       1,448
    99.0  Reimbursable obligations..........       2,447       2,079       2,076
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,222       3,604       3,524
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 21-2050-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,739
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       4,262       5,622       5,634
    ---------------------------------------------------------------------------

                           Military Construction, Navy

                            [(including rescission)]

        For acquisition, construction, installation, and equipment of
    temporary or permanent public works, naval installations, facilities,
    and real property for the Navy as currently authorized by law, including
    personnel in the Naval Facilities Engineering Command and other personal
    services necessary for the purposes of this appropriation,
    [$1,305,128,000] $1,132,858,000, to remain available until September 30,
    [2007] 2008: Provided, That of this amount, not to exceed [$87,043,000]
    $65,612,000 shall be available for study, planning, design, architect
    and engineer services, as authorized by law, unless the Secretary of
    Defense determines that additional obligations are necessary for such
    purposes and notifies the Committees on Appropriations of both Houses of
    Congress of his determination and the reasons therefor[: Provided
    further, That of the funds appropriated for ``Military Construction,
    Navy'' in previous Military Construction Appropriation Acts, $1,340,000
    are rescinded]. (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1205-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................         823       1,126       1,073
    00.02 Minor construction................          34          22          14
    00.03 Planning..........................         236          72          66
    09.01 Reimbursable program..............         451         354         354
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,544       1,574       1,507
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         266         328         411
    22.00 New budget authority (gross)......       1,521       1,658       1,487
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          83
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,871       1,986       1,898
    23.95 Total new obligations.............      -1,544      -1,574      -1,507
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............         328         411         392
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,146       1,305       1,133
    40.36   Unobligated balance rescinded...         -20          -1
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -3
    40.79   Reduction pursuant to P.L. 107-
              64............................         -13
    42.00   Transferred from other accounts.           6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,116       1,304       1,133
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         391         354         354
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          14
                                               ---------   ---------  ----------

    [[Page 280]]

    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         405         354         354
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,521       1,658       1,487
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         967       1,165       1,340
    73.10 Total new obligations.............       1,544       1,574       1,507
    73.20 Total outlays (gross).............      -1,356      -1,399      -1,537
    73.40 Adjustments in expired accounts
            (net)...........................          41
    73.45 Recoveries of prior year
            obligations.....................         -83
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -14
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          66
    74.40 Obligated balance, end of year....       1,165       1,340       1,310
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         219         497         478
    86.93 Outlays from discretionary
            balances........................       1,137         901       1,059
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,356       1,399       1,537
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -308        -264        -264
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -136         -90         -90
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -444        -354        -354
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -14
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          53
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,116       1,304       1,133
    90.00 Outlays...........................         913       1,045       1,183
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                      10          11
    99.01 Outlays...........................                      10          11
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1205-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    0701  Major construction................       1,042       1,193       1,055
    0702  Minor construction................          25          26          12
    0703  Planning..........................          72          86          66
                                               ---------   ---------  ----------
    0791    Total direct....................       1,139       1,305       1,133
    0801  Reimbursable......................         402         354         354
                                               ---------   ---------  ----------
    0893  Total budget plan.................       1,540       1,659       1,487
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1205-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         127         127         141
    11.3      Other than full-time permanent           2           2           2
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         133         133         147
    12.1    Civilian personnel benefits.....          28          25          38
    21.0    Travel and transportation of
              persons.......................           8           5           8
    22.0    Transportation of things........           2           1           2
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2          12          12
    24.0    Printing and reproduction.......                       1
    25.2    Other services..................          58                      60
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................           4
    25.3      Other purchases of goods and
                services from Government
                accounts....................                                   4
    25.7    Operation and maintenance of
              equipment.....................           1                       1
    26.0    Supplies and materials..........           1           3           1
    31.0    Equipment.......................           2           5           2
    32.0    Land and structures.............         851       1,034         877
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,091       1,220       1,153
    99.0  Reimbursable obligations..........         453         354         354
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,544       1,574       1,507
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 17-1205-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,955       1,963       1,965
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         379         325         310
    ---------------------------------------------------------------------------

                        Military Construction, Air Force

                            [(including rescission)]

        For acquisition, construction, installation, and equipment of
    temporary or permanent public works, military installations, facilities,
    and real property for the Air Force as currently authorized by law,
    [$1,080,247,000] $772,767,000, to remain available until September 30,
    [2007] 2008: Provided, That of this amount, not to exceed [$72,283,000]
    $74,345,000 shall be available for study, planning, design, architect
    and engineer services, as authorized by law, unless the Secretary of
    Defense determines that additional obligations are necessary for such
    purposes and notifies the Committees on Appropriations of both Houses of
    Congress of his determination and the reasons therefor[: Provided
    further, That of the funds appropriated for ``Military Construction, Air
    Force'' in previous Military Construction Appropriation Acts,
    $13,281,000 are rescinded]. (Military Construction Appropriations Act,
    2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3300-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................       1,041         879         722
    00.02 Minor construction................          12          29          12
    00.03 Planning..........................          97         167          76
    00.04 Supporting Activities.............           1           2
    09.01 Reimbursable program..............           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,158       1,076         810
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         165         250         240
    22.00 New budget authority (gross)......       1,246       1,067         773
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.21 Unobligated balance transferred to
            other accounts..................          -4
    22.22 Unobligated balance transferred
            from other accounts.............           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,413       1,317       1,013
    23.95 Total new obligations.............      -1,158      -1,076        -810
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
    24.40 Unobligated balance carried
            forward, end of year............         250         240         203
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,249       1,080         773
    40.35   Appropriation rescinded.........          -7
    40.36   Unobligated balance rescinded...          -4         -13
    40.79   Reduction pursuant to P.L. 107-
              64............................         -13
    42.00   Transferred for other accounts..          14
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,239       1,067         773
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           7
                                               ---------   ---------  ----------

    [[Page 281]]

    70.00   Total new budget authority
              (gross).......................       1,246       1,067         773
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,117       1,406       1,388
    73.10 Total new obligations.............       1,158       1,076         810
    73.20 Total outlays (gross).............        -869      -1,095      -1,105
    73.40 Adjustments in expired accounts
            (net)...........................           1
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.40 Obligated balance, end of year....       1,406       1,388       1,095
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         120         139         101
    86.93 Outlays from discretionary
            balances........................         749         956       1,004
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         869       1,095       1,105
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,239       1,067         773
    90.00 Outlays...........................         862       1,095       1,105
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3300-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Major construction................       1,124         996         686
    0702  Minor construction................          12          13          12
    0703  Planning..........................          94          72          74
                                               ---------   ---------  ----------
    0791  Subtotal..........................       1,229       1,080         773
    0801  Reimbursable program..............           7
                                               ---------   ---------  ----------
    0893  Total budget plan.................       1,236       1,080         773
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3300-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    32.0  Direct obligations: Land and
            structures (direct).............       1,151       1,076         810
    99.0  Reimbursable obligations:
            Reimbursable obligations........           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,158       1,076         810
    ---------------------------------------------------------------------------

                       Military Construction, Defense-wide

                 (including transfer [and rescissions] of funds)

        For acquisition, construction, installation, and equipment of
    temporary or permanent public works, installations, facilities, and real
    property for activities and agencies of the Department of Defense (other
    than the military departments), as currently authorized by law,
    [$874,645,000] $668,801,000, to remain available until September 30,
    [2007] 2008: Provided, That such amounts of this appropriation as may be
    determined by the Secretary of Defense may be transferred to such
    appropriations of the Department of Defense available for military
    construction or family housing as he may designate, to be merged with
    and to be available for the same purposes, and for the same time period,
    as the appropriation or fund to which transferred: Provided further,
    That of the amount appropriated, not to exceed [$50,432,000] $59,884,000
    shall be available for study, planning, design, architect and engineer
    services, as authorized by law, unless the Secretary of Defense
    determines that additional obligations are necessary for such purposes
    and notifies the Committees on Appropriations of both Houses of Congress
    of his determination and the reasons therefor[: Provided further, That
    of the funds appropriated for ``Military Construction, Defense-wide'' in
    previous Military Construction Appropriation Acts, $2,976,000 are
    rescinded]. (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0500-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................         840         752         602
    00.02 Minor construction................          18           9          13
    00.03 Planning..........................          70          26          43
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         928         787         658
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         555         425         505
    22.00 New budget authority (gross)......         766         867         669
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          41
    22.21 Unobligated balance transferred to
            other accounts..................          -2
    22.22 Unobligated balance transferred
            from other accounts.............           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,362       1,292       1,174
    23.95 Total new obligations.............        -928        -787        -658
    23.98 Unobligated balance expiring or
            withdrawn.......................          -9
    24.40 Unobligated balance carried
            forward, end of year............         425         505         516
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         897         870         669
    40.35   Appropriation rescinded.........         -22
    40.36   Unobligated balance rescinded...         -69          -3
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -5
    40.79   Reduction pursuant to P.L. 107-
              64............................          -9
    41.00   Transferred to other DoD
              accounts......................         -35
    42.00   Transferred from other DoD
              accounts......................           9
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         766         867         669
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         723         899         885
    73.10 Total new obligations.............         928         787         658
    73.20 Total outlays (gross).............        -712        -801        -758
    73.40 Adjustments in expired accounts
            (net)...........................           2
    73.45 Recoveries of prior year
            obligations.....................         -41
    74.40 Obligated balance, end of year....         899         885         783
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         124         102          79
    86.93 Outlays from discretionary
            balances........................         588         699         679
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         712         801         758
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         766         867         669
    90.00 Outlays...........................         713         801         758
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0500-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Major construction................         759         808         593
    0702  Minor construction................          24          16          16
    0703  Planning..........................          54          45          60
                                               ---------   ---------  ----------
    0893  Total budget plan.................         837         870         669
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0500-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           1           1           2
    25.5  Research and development contracts           1
    32.0  Land and structures...............         926         786         656
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         928         787         658
    ---------------------------------------------------------------------------

                       North Atlantic Treaty Organization

                           Security Investment Program

        For the United States share of the cost of the North Atlantic Treaty
    Organization Security Investment Program for the acquisition and
    construction of military facilities and installations (including
    international military headquarters) and for related expenses for the
    collective defense of the North Atlantic Treaty Area as authorized in
    Military Construction Authorization Acts and section 2806 of title 10,
    United States Code, [$167,200,000] $169,300,000, to remain available
    until expended. (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0804-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 NATO Infrastructure...............         156         178         184

    [[Page 282]]

    09.01 Reimbursable program..............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         157         178         184
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         120          41          41
    22.00 New budget authority (gross)......         163         178         172
    22.21 Unobligated balance transferred to
            other accounts..................        -129
    22.22 Unobligated balance transferred
            from other accounts.............          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         197         219         213
    23.95 Total new obligations.............        -157        -178        -184
    24.40 Unobligated balance carried
            forward, end of year............          41          41          29
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         163         167         169
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1          11           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         163         178         172
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         304         272         168
    73.10 Total new obligations.............         157         178         184
    73.20 Total outlays (gross).............        -189        -282        -255
    74.40 Obligated balance, end of year....         272         168          97
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         164          95          88
    86.93 Outlays from discretionary
            balances........................          25         188         167
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         189         282         255
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Offsetting collections,
              Non-Federal sources, Other....          -1         -11          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         163         167         169
    90.00 Outlays...........................         189         271         252
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0804-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    32.0  Direct obligations: Land and
            structures......................         156         178         184
    99.0  Reimbursable obligations:
            Reimbursable obligations........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         157         178         184
    ---------------------------------------------------------------------------

                   Military Construction, Army National Guard

        For construction, acquisition, expansion, rehabilitation, and
    conversion of facilities for the training and administration of the Army
    National Guard, and contributions therefor, as authorized by chapter
    1803 of title 10, United States Code, and Military Construction
    Authorization Acts, [$241,377,000] $168,298,000, to remain available
    until September 30, [2007] 2008. (Military Construction Appropriations
    Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2085-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................         408         252         191
    00.02 Minor construction................                       8           6
    00.03 Planning..........................           5          21          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         413         282         222
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         222         287         247
    22.00 New budget authority (gross)......         401         241         168
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          78
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         701         529         415
    23.95 Total new obligations.............        -413        -282        -222
    24.40 Unobligated balance carried
            forward, end of year............         287         247         193
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         406         241         168
    40.79   Reduction pursuant to P.L. 107-
              64............................          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         401         241         168
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         280         398         361
    73.10 Total new obligations.............         413         282         222
    73.20 Total outlays (gross).............        -216        -318        -282
    73.45 Recoveries of prior year
            obligations.....................         -78
    74.40 Obligated balance, end of year....         398         361         301
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          14          13           9
    86.93 Outlays from discretionary
            balances........................         202         306         273
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         216         318         282
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         401         241         168
    90.00 Outlays...........................         216         318         282
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2085-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Major construction................         365         195         140
    0702  Minor construction................                      14           1
    0703  Planning..........................          36          32          27
                                               ---------   ---------  ----------
    0893  Total budget plan.................         401         241         168
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2085-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                       7           7
    25.3  Other purchases of goods and
            services from Government
            accounts........................                      60          62
    25.4  Operation and maintenance of
            facilities......................           3
    26.0  Supplies and materials............           3
    32.0  Land and structures...............         395         215         153
    33.0  Investments and loans.............          12
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         413         282         222
    ---------------------------------------------------------------------------

                    Military Construction, Air National Guard

        For construction, acquisition, expansion, rehabilitation, and
    conversion of facilities for the training and administration of the Air
    National Guard, and contributions therefor, as authorized by chapter
    1803 of title 10, United States Code, and Military Construction
    Authorization Acts, [$203,813,000] $60,430,000, to remain available
    until September 30, [2007] 2008. (Military Construction Appropriations
    Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3830-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................         276         174          76
    00.02 Minor construction................           5           6           6
    00.03 Planning..........................          17          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................         298         196          98
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         125          80          88
    22.00 New budget authority (gross)......         250         204          60
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------

    [[Page 283]]

    23.90   Total budgetary resources
              available for obligation......         378         284         148
    23.95 Total new obligations.............        -298        -196         -98
    24.40 For completion of prior year
            budget plans....................          80          88          50
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         253         204          60
    40.79   Reduction pursuant to P.L. 107-
              64............................          -3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         250         204          60
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         225         290         265
    73.10 Total new obligations.............         298         196          98
    73.20 Total outlays (gross).............        -232        -221        -213
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....         290         265         150
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9          10           3
    86.93 Outlays from discretionary
            balances........................         223         211         210
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         232         221         213
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         250         204          60
    90.00 Outlays...........................         231         221         213
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3830-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Major construction................         237         181          39
    0702  Minor construction................           7           6           5
    0703  Planning..........................           7          17          16
                                               ---------   ---------  ----------
    0893  Total budget plan.................         251         204          60
    ---------------------------------------------------------------------------

                       Military Construction, Army Reserve

        For construction, acquisition, expansion, rehabilitation, and
    conversion of facilities for the training and administration of the Army
    Reserve as authorized by chapter 1803 of title 10, United States Code,
    and Military Construction Authorization Acts, [$100,554,000]
    $68,478,000, to remain available until September 30, [2007] 2008.
    (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2086-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................         167          85          63
    00.02 Minor construction................           2           2           3
    00.03 Planning..........................          12           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         181          94          72
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          55          41          47
    22.00 New budget authority (gross)......         165         101          68
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         222         141         115
    23.95 Total new obligations.............        -181         -94         -72
    24.40 Unobligated balance carried
            forward, end of year............          41          47          43
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         167         101          68
    40.79   Reduction pursuant to P.L. 107-
              64............................          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         165         101          68
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         163         219         185
    73.10 Total new obligations.............         181          94          72
    73.20 Total outlays (gross).............        -124        -128        -113
    73.40 Adjustments in expired accounts
            (net)...........................           1
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.40 Obligated balance, end of year....         219         185         144
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11           9           6
    86.93 Outlays from discretionary
            balances........................         113         119         108
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         124         128         113
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         165         101          68
    90.00 Outlays...........................         124         128         113
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2086-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Major construction................         157          87          58
    0702  Minor construction................                       3           3
    0703  Planning..........................           8          10           8
                                               ---------   ---------  ----------
    0893  Total budget plan.................         165         101          68
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-2086-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    23.2  Rental payments to others.........           2           1           1
    25.2  Other services....................           7           3           3
          Other purchases of goods and services from
              Government accounts:

    25.3    Other purchases of goods and
              services from Government
              accounts......................          10           4           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................          27          13          11
    32.0  Land and structures...............         135          73          53
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         181          94          72
    ---------------------------------------------------------------------------

                      Military Construction, Naval Reserve

        For construction, acquisition, expansion, rehabilitation, and
    conversion of facilities for the training and administration of the
    reserve components of the Navy and Marine Corps as authorized by chapter
    1803 of title 10, United States Code, and Military Construction
    Authorization Acts, [$74,921,000] $28,032,000, to remain available until
    September 30, [2007] 2008. (Military Construction Appropriations Act,
    2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1235-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................          38          61          35
    00.02 Minor construction................                       1
    00.03 Planning..........................           5           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................          43          64          38
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................           9          17          28
    22.00 New budget authority (gross)......          51          75          28
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          60          92          56
    23.95 Total new obligations.............         -43         -64         -38
    24.40 Unobligated balance carried
            forward, end of year............          17          28          18
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          53          75          28
    40.36   Unobligated balance rescinded...          -1
    40.79   Reduction pursuant to P.L. 107-
              64............................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          51          75          28
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          70          76          73
    73.10 Total new obligations.............          43          64          38
    73.20 Total outlays (gross).............         -37         -68         -61
    74.40 Obligated balance, end of year....          76          73          50
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3          14           5
    86.93 Outlays from discretionary
            balances........................          34          54          56
                                               ---------   ---------  ----------

    [[Page 284]]

    87.00   Total outlays (gross)...........          37          68          61
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          51          75          28
    90.00 Outlays...........................          38          68          61
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-1235-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Major construction................          50          71          25
    0702  Minor construction................                       1
    0703  Planning..........................           3           3           3
                                               ---------   ---------  ----------
    0893  Total budget plan.................          53          75          28
    ---------------------------------------------------------------------------

                    Military Construction, Air Force Reserve

        For construction, acquisition, expansion, rehabilitation, and
    conversion of facilities for the training and administration of the Air
    Force Reserve as authorized by chapter 1803 of title 10, United States
    Code, and Military Construction Authorization Acts, [$67,226,000]
    $44,312,000, to remain available until September 30, [2007] 2008.
    (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3730-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Major construction................          56          58          33
    00.02 Minor construction................           4           6           5
    00.03 Planning..........................           4           4          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................          64          67          48
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 For completion of prior year
            budget plans....................           6          15          15
    22.00 New budget authority (gross)......          74          67          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          80          83          59
    23.95 Total new obligations.............         -64         -67         -48
    24.40 For completion of prior year
            budget plans....................          15          15          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          75          67          44
    40.79   Reduction pursuant to P.L. 107-
              64............................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          74          67          44
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          62          83          95
    73.10 Total new obligations.............          64          67          48
    73.20 Total outlays (gross).............         -43         -56         -63
    74.40 Obligated balance, end of year....          83          95          81
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           4           3
    86.93 Outlays from discretionary
            balances........................          39          52          60
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          43          56          63
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          74          67          44
    90.00 Outlays...........................          43          56          63
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-3730-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Major construction................          63          57          28
    0702  Minor construction................           5           6           5
    0703  Planning..........................           6           4          11
                                               ---------   ---------  ----------
    0893  Total budget plan.................          74          67          44
    ---------------------------------------------------------------------------

                      Base Realignment and Closure Account

        For deposit into the Department of Defense Base Closure Account 1990
    established by section 2906(a)(1) of the Department of Defense
    Authorization Act, 1991 (Public Law 101-510), [$516,138,000]
    $370,427,000 to remain available until expended. (Military Construction
    Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0510-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Base Closure (II).................          80
    00.03 Base Closure (III)................         100          45          18
    00.04 Base Closure (IV).................         548         475         383
    09.00 Reimbursable program..............          52                      68
                                               ---------   ---------  ----------
    10.00   Total obligations--Base closure
              program.......................         780         520         469
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Available to finance new budget
            plans...........................         298         319         360
    22.00 New budget authority (gross)......         685         561         438
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         116
    22.21 Unobligated balance transferred to
            other accounts..................                     -27         -14
    22.22 Unobligated balance transferred
            from other accounts.............                      27          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,099         880         798
    23.95 Total new obligations.............        -780        -520        -469
    24.40 Available to finance subsequent
            year budget plans...............         319         360         329
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         633         561         370
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          48                      68
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           4
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          52                      68
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         685         561         438
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,243         982         692
    73.10 Total new obligations.............         780         520         469
    73.20 Total outlays (gross).............        -920        -810        -683
    73.45 Recoveries of prior year
            obligations.....................        -116
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -4
    74.40 Obligated balance, end of year....         982         692         478
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         243         199         204
    86.93 Outlays from discretionary
            balances........................         677         611         479
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         920         810         683
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -48                     -68
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         633         561         370
    90.00 Outlays...........................         873         810         615
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0510-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0602  Program activities................          33
    0603  Program activities................         100
    0604  Program activities................         500         151         201
    0704  Base Closure (IV).................                     437         259
                                               ---------   ---------  ----------
    0893  Total budget plan.................         633         588         460
    ---------------------------------------------------------------------------

    [[Page 285]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0510-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    21.0    Travel and transportation of
              persons.......................           2           1           1
    22.0    Transportation of things........           2           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          12           3           9
    25.1    Advisory and assistance services           7          15          14
    25.2    Other services..................          94          91          71
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         254         131         138
    25.3      Purchases from revolving funds          28          19          14
    25.4    Operation and maintenance of
              facilities....................           5           4           7
    25.7    Operation and maintenance of
              equipment.....................           3           2           1
    26.0    Supplies and materials..........           3           2           1
    31.0    Equipment.......................           2           1           1
    32.0    Land and structures.............         314         249         142
    41.0    Grants, subsidies, and
              contributions.................           2           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         728         520         401
    99.0  Reimbursable obligations..........          52                      68
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         780         520         469
    ---------------------------------------------------------------------------

                   Foreign Currency Fluctuations, Construction

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0803-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         150         177         177
    22.00 New budget authority (gross)......          -6
    22.21 Unobligated balance transferred to
            other accounts..................        -174
    22.22 Unobligated balance transferred
            from other accounts.............         207
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         177         177         177
    24.40 Unobligated balance carried
            forward, end of year............         177         177         177
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...         -60
    50.00   Reappropriation.................          54
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          -6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -6
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

                             FAMILY HOUSING, DEFENSE

        These appropriations finance all costs associated with construction,
    improvements, operations, maintenance and leasing of all military family
    housing. In addition to quality of life enhancements, the program
    contains initiatives to reduce operating costs and conserve energy by
    upgrading or replacing facilities which can be made more efficient
    through relatively modest investments in improvements.

        The Family Housing Improvement Fund (FHIF) was created to finance
    the use of innovative methods authorized in the Housing Revitalization
    Act (HRA), P.L. 104-106, to meet the Department's housing needs. The HRA
    authorizes the Department to use limited partnerships, make direct and
    guaranteed loans, and convey Department-owned property to stimulate the
    private sector to increase the availability of affordable, quality
    housing for military personnel. The Department's goal is to increase its
    reliance on the private sector to provide quality housing for all
    military personnel much sooner than possible with traditional family
    housing programs at currently planned funding levels. The funds required
    to privatize military housing are transferred from the military
    departments' housing accounts into the Family Housing Improvement Fund
    when procurement actions are finalized.

        The budget plan for each appropriation is shown as a separate table
    immediately following the program and financing schedules for those
    appropriations that are available for obligation for more than one year.

        Resources presented under the Family Housing title contribute
    primarily to achieving the Department's annual performance goals of
    assuring readiness and sustainability. Performance targets in support of
    these goals contribute to the Department's efforts to mitigate force
    management and operational risk, as directed in the 2001 Quadrennial
    Defense Review.

                                  Federal Funds

    General and special funds:

                        Family Housing Construction, Army

                             [including rescission]

        For expenses of family housing for the Army for construction,
    including acquisition, replacement, addition, expansion, extension and
    alteration, as authorized by law, [$280,356,000] $356,891,000, to remain
    available until September 30, [2007: Provided, That of the funds
    appropriated for ``Family Housing Construction, Army'' in previous
    Military Construction Appropriation Acts, $4,920,000 are rescinded]
    2008. (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-0720-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Construction of new housing.......         171          66         107
    00.03 Post acquisition construction.....           9         166         188
    00.04 Planning and design...............                      13          27
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         180         245         322
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          68         227         155
    22.00 New budget authority (gross)......         301         275         357
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          41
    22.21 Unobligated balance transferred to
            other accounts..................         -12        -104        -146
    22.22 Unobligated balance transferred
            from other accounts.............           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         407         400         366
    23.95 Total new obligations.............        -180        -245        -322
    24.40 Unobligated balance carried
            forward, end of year............         227         155          44
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         313         280         357
    40.36   Unobligated balance rescinded...                      -5
    40.79   Reduction pursuant to P.L. 107-
              64............................         -12
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         301         275         357
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         270         233         336
    73.10 Total new obligations.............         180         245         322
    73.20 Total outlays (gross).............        -177        -141        -158
    73.45 Recoveries of prior year
            obligations.....................         -41
    74.40 Obligated balance, end of year....         233         336         500
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6           6           7
    86.93 Outlays from discretionary
            balances........................         171         135         151
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         177         141         158
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         301         275         357
    90.00 Outlays...........................         177         141         158
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-0720-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Construction of new housing.......          80          27         127

    [[Page 286]]

    0703  Post acquisition construction.....          71         131         198
    0704  Planning and design...............          12          16          34
                                               ---------   ---------  ----------
    0893  Total budget plan.................         163         173         359
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-0720-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           6           8          11
    25.3  Other purchases of goods and
            services from Government
            accounts........................          36          49          65
    32.0  Land and structures...............         138         188         246
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         180         245         322
    ---------------------------------------------------------------------------

                 Family Housing Operation and Maintenance, Army

        For expenses of family housing for the Army for operation and
    maintenance, including debt payment, leasing, minor construction,
    principal and interest charges, and insurance premiums, as authorized by
    law, [$1,106,007,000] $1,043,026,000, to remain available until
    September 30, 2005. (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-0725-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.05 Utilities.........................         197         211         167
    00.06 Operating expenses................         198         179         179
    00.07 Leasing...........................         199         213         234
    00.08 Maintenance of real property......         503         482         433
    00.12 Housing privatization support.....                      21          30
    09.01 Reimbursable program..............          18          22          22
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,115       1,128       1,065
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,094       1,128       1,065
    22.21 Unobligated balance transferred to
            other accounts..................         -38
    22.22 Unobligated balance transferred
            from other accounts.............          68
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,124       1,128       1,065
    23.95 Total new obligations.............      -1,115      -1,128      -1,065
    23.98 Unobligated balance expiring or
            withdrawn.......................         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,089       1,106       1,043
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -1
    40.79   Reduction pursuant to P.L. 107-
              64............................         -12
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,076       1,106       1,043
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          16          22          22
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          18          22          22
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,094       1,128       1,065
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         376         479         445
    73.10 Total new obligations.............       1,115       1,128       1,065
    73.20 Total outlays (gross).............        -998      -1,163      -1,121
    73.40 Adjustments in expired accounts
            (net)...........................         -14
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           4
    74.40 Obligated balance, end of year....         479         445         389
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         732         813         768
    86.93 Outlays from discretionary
            balances........................         266         350         353
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         998       1,163       1,121
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -18          -4          -4
    88.40     Offsetting collections, Non-
                Federal sources, Other......                     -18         -18
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -18         -22         -22
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,076       1,106       1,043
    90.00 Outlays...........................         980       1,141       1,099
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                       3           3
    99.01 Outlays...........................                       3           3
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-0725-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          24          30          23
    11.3      Other than full-time permanent           6           3           3
    11.5      Other personnel compensation..           1           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          31          35          28
    12.1    Civilian personnel benefits.....           9           9           7
    21.0    Travel and transportation of
              persons.......................           3           3           2
    22.0    Transportation of things........           3           3           3
    23.1    Rental payments to GSA..........           1           1           1
    23.2    Rental payments to others.......         108         109         104
    23.3    Communications, utilities, and
              miscellaneous charges.........          83          84          80
    25.1    Advisory and assistance services          11          16          14
    25.2    Other services..................          34          87          87
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................         359         362         346
    25.3      Other purchases of goods and
                services from Government
                accounts....................          12          13          11
    25.3      Other purchases of goods and
                services from Government
                accounts....................          12          12          11
    25.4    Operation and maintenance of
              facilities....................         370         316         309
    25.7    Operation and maintenance of
              equipment.....................          12          12          11
    26.0    Supplies and materials..........          22          22           7
    31.0    Equipment.......................          23          23          22
    32.0    Land and structures.............           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,098       1,107       1,043
    99.0  Reimbursable obligations..........          17          21          22
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,115       1,128       1,065
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 21-0725-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         767         749         700
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................
    ---------------------------------------------------------------------------

    [[Page 287]]

                                  Federal Funds

    General and special funds:

               Family Housing Construction, Navy and Marine Corps

                            [(including rescission)]

        For expenses of family housing for the Navy and Marine Corps for
    construction, including acquisition, replacement, addition, expansion,
    extension and alteration, as authorized by law, [$376,468,000]
    $184,193,000, to remain available until September 30, [2007: Provided,
    That of the funds appropriated for ``Family Housing Construction, Navy
    and Marine Corps'' in previous Military Construction Appropriation Acts,
    $2,652,000 are rescinded] 2008.  (Military Construction Appropriations
    Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-0730-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Construction of new housing.......         235         221         189
    00.03 Post-acquisition construction.....          29          61          38
    00.04 Planning and Design...............           7           8           9
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................         271         290         236
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         187         224         226
    22.00 New budget authority (gross)......         328         332         184
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.21 Unobligated balance transferred to
            other accounts..................         -22         -40         -84
    22.22 Unobligated balance transferred
            from other accounts.............           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         496         516         326
    23.95 Total new obligations.............        -271        -290        -236
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............         224         226          90
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         332         376         184
    40.36   Unobligated balance rescinded...                      -3
    40.79   Reduction pursuant to P.L. 107-
              64............................          -4
    41.00   Transferred to other accounts...                     -41
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         328         332         184
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         629         464         441
    73.10 Total new obligations.............         271         290         236
    73.20 Total outlays (gross).............        -435        -313        -315
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....         464         441         361
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          10          17           9
    86.93 Outlays from discretionary
            balances........................         425         296         306
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         435         313         315
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         328         332         184
    90.00 Outlays...........................         435         313         315
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-0730-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Construction of new housing.......         113         185         157
    0703  Post acquisition construction.....         153          82          20
    0704  Planning and design...............           6          11           8
                                               ---------   ---------  ----------
    0893  Total budget plan.................         273         279         186
    ---------------------------------------------------------------------------

         Family Housing Operation and Maintenance, Navy and Marine Corps

        For expenses of family housing for the Navy and Marine Corps for
    operation and maintenance, including debt payment, leasing, minor
    construction, principal and interest charges, and insurance premiums, as
    authorized by law, [$861,788,000] $852,778,000, to remain available
    until September 30, 2005. (Military Construction Appropriations Act,
    2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-0735-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    02.01 Utilities.........................         194         173         165
    02.02 Operating Expenses................         204         175         167
    02.03 Leasing...........................         115         128         132
    02.04 Maintenance.......................         368         374         378
    02.05 Privitization.....................          10          11          11
    09.01 Reimbursable program..............          16          21          21
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         907         882         874
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         916         883         874
    22.21 Unobligated balance transferred to
            other accounts..................          -4
    22.22 Unobligated balance transferred
            from other accounts.............           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         920         883         874
    23.95 Total new obligations.............        -907        -882        -874
    23.98 Unobligated balance expiring or
            withdrawn.......................         -11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         910         862         853
    40.79   Reduction pursuant to P.L. 107-
              64............................         -10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         900         862         853
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          16          21          21
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         916         883         874
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         514         537         491
    73.10 Total new obligations.............         907         882         874
    73.20 Total outlays (gross).............        -866        -930        -929
    73.40 Adjustments in expired accounts
            (net)...........................         -20
    74.40 Obligated balance, end of year....         537         491         435
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         534         543         537
    86.93 Outlays from discretionary
            balances........................         332         387         392
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         866         930         929
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -15         -19         -19
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -3          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -18         -21         -21
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         900         862         853
    90.00 Outlays...........................         848         909         908
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-0735-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........                      69          69
    11.3      Other than full-time permanent                       4           4
    11.5      Other personnel compensation..                       1           1
    11.8      Special personal services
                payments....................                      15          15
                                               ---------   ---------  ----------
    11.9        Total personnel compensation                      89          89
    21.0    Travel and transportation of
              persons.......................          29           2           2
    23.2    Rental payments to others.......         120          45         126
    23.3    Communications, utilities, and
              miscellaneous charges.........         184         160          93
    25.1    Advisory and assistance services           4           4           5
    25.2    Other services..................          64          44         123

    [[Page 288]]

            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................                                   2
    25.3      Purchases from revolving funds         256         243         204
    25.4    Operation and maintenance of
              facilities....................         208         152         191
    25.7    Operation and maintenance of
              equipment.....................                                   1
    26.0    Supplies and materials..........           2         101
    31.0    Equipment.......................          24          21          17
                                               ---------   ---------  ----------
    99.0      Direct obligations............         891         861         853
    99.0  Reimbursable obligations..........          16          21          21
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         907         882         874
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 17-0735-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                   1,189       1,157
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................
    ---------------------------------------------------------------------------

                                  Federal Funds

    General and special funds:

                     Family Housing Construction, Air Force

                            [(including rescission)]

        For expenses of family housing for the Air Force for construction,
    including acquisition, replacement, addition, expansion, extension and
    alteration, as authorized by law, [$684,824,000] $695,622,000, to remain
    available until September 30, [2007: Provided, That of the funds
    appropriated for ``Family Housing Construction, Air Force'' in previous
    Military Construction Appropriation Acts, $8,782,000 are rescinded]
    2008. (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-0740-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 New Construction..................         118         492         407
    00.03 Post Acquistion Construction......         203         198         228
    00.04 Planning and Design...............          18          30          29
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................         339         720         664
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         187         389         282
    22.00 New budget authority (gross)......         540         676         696
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.21 Unobligated balance transferred to
            other accounts..................          -8         -63         -83
    22.22 Unobligated balance transferred
            from other accounts.............           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         730       1,002         895
    23.95 Total new obligations.............        -339        -720        -664
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    24.40 Unobligated balance carried
            forward, end of year............         389         282         231
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         551         685         696
    40.36   Unobligated balance rescinded...                      -9
    40.79   Reduction pursuant to P.L. 107-
              64............................          -6
    41.00   Transferred to other accounts...          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         539         676         696
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         322         392         665
    73.10 Total new obligations.............         339         720         664
    73.20 Total outlays (gross).............        -266        -447        -456
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....         392         665         873
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          32          51          52
    86.93 Outlays from discretionary
            balances........................         234         397         403
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         266         447         456
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         539         676         696
    90.00 Outlays...........................         266         447         456
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-0740-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0701  Construction of new housing.......         132         426         417
    0703  Post acquisition construction.....         303         217         249
    0704  Planning and design...............          24          34          33
                                               ---------   ---------  ----------
    0893  Total budget plan.................         459         677         700
    ---------------------------------------------------------------------------

               Family Housing Operation and Maintenance, Air Force

        For expenses of family housing for the Air Force for operation and
    maintenance, including debt payment, leasing, minor construction,
    principal and interest charges, and insurance premiums, as authorized by
    law, [$863,050,000] $834,468,000, to remain available until September
    30, 2005. (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-0745-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.05 Utilities.........................         158         132         133
    00.06 Operating Expenses................         142         110         142
    00.07 Leasing...........................         103         103         120
    00.08 Maintenance.......................         414         503         396
    00.12 Housing Privitization Support.....          28          15          45
    09.01 Reimbursable program..............          10          11          11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         855         874         846
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         844         874         846
    22.22 Unobligated balance transferred
            from other accounts.............          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         857         874         846
    23.95 Total new obligations.............        -855        -874        -846
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         845         863         834
    40.79   Reduction pursuant to P.L. 107-
              64............................         -10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         835         863         834
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           6          11          11
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          10          11          11
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         844         874         846
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         347         358         320
    73.10 Total new obligations.............         855         874         846
    73.20 Total outlays (gross).............        -820        -912        -857
    73.40 Adjustments in expired accounts
            (net)...........................         -21
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
    74.40 Obligated balance, end of year....         358         320         309
    ----------------------------------------------------------------------------

    [[Page 289]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         569         600         581
    86.93 Outlays from discretionary
            balances........................         251         312         275
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         820         912         857
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1          -3          -3
    88.40     Offsetting collections, Non-
                Federal sources, Other......          -7          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -8         -11         -11
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         835         863         834
    90.00 Outlays...........................         812         901         846
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 57-0745-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    21.0    Travel and transportation of
              persons.......................           8           9           9
    22.0    Transportation of things........           8           9           8
    23.2    Rental payments to others.......         101          71          63
    25.1    Advisory and assistance services          14                       7
    25.2    Other services..................          18          19          19
    25.3    Other purchases of goods and
              services from Government
              accounts......................          95         116         112
    26.0    Supplies and materials..........         380         404         388
    31.0    Equipment.......................         212         226         220
    32.0    Land and structures.............           8           9           9
                                               ---------   ---------  ----------
    99.0      Direct obligations............         844         863         835
    99.0  Reimbursable obligations..........          11          11          11
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         855         874         846
    ---------------------------------------------------------------------------

                                  Federal Funds

    General and special funds:

                    Family Housing Construction, Defense-wide

        For expenses of family housing for the activities and agencies of
    the Department of Defense (other than the military departments) for
    construction, including acquisition, replacement, addition, expansion,
    extension and alteration, as authorized by law, [$5,480,000] $350,000,
    to remain available until September 30, [2007] 2008. (Military
    Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0760-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.03 Post Acquisition Construction.....           1           5           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................           1           5           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    22.00 New budget authority (gross)......                       5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           6           1
    23.95 Total new obligations.............          -1          -5          -1
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                       5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           1           4
    73.10 Total new obligations.............           1           5           1
    73.20 Total outlays (gross).............          -3          -1
    74.40 Obligated balance, end of year....           1           4           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           3           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       5
    90.00 Outlays...........................           3           1
    ---------------------------------------------------------------------------

                        Budget Plan (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0760-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0603  Post Acquisition Construction.....                       5
                                               ---------   ---------  ----------
    0893  Total budget plan.................                       5
    ---------------------------------------------------------------------------

             Family Housing Operation and Maintenance, Defense-wide

        For expenses of family housing for the activities and agencies of
    the Department of Defense (other than the military departments) for
    operation and maintenance, leasing, and minor construction, as
    authorized by law, [$42,395,000] $49,440,000, to remain available until
    September 30, 2005. (Military Construction Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0765-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    02.05 Utilities.........................           1           1           1
    02.06 Operating Expenses................           5           5           5
    02.07 Leasing...........................          35          36          39
    02.08 Maintenance of Real Property......           1           1           5
    09.01 Reimbursable program..............           1           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          43          46          53
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          44          45          53
    23.95 Total new obligations.............         -43         -46         -53
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          43          42          49
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           3           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          44          45          53
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          24          26          13
    73.10 Total new obligations.............          43          46          53
    73.20 Total outlays (gross).............         -39         -57         -52
    74.40 Obligated balance, end of year....          26          13          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          34          33          39
    86.93 Outlays from discretionary
            balances........................           5          24          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          39          57          52
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -3          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          43          42          49
    90.00 Outlays...........................          38          54          48
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................
    99.01 Outlays...........................
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0765-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......          22          24          23
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           6

    [[Page 290]]

    25.2    Other services..................                                   1
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................          11          11          12
    25.3      Payments to foreign national
                indirect hire personnel.....                                   1
    25.4    Operation and maintenance of
              facilities....................           1           1           2
    31.0    Equipment.......................           4           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............          42          43          49
    99.0  Reimbursable obligations..........           1           3           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          43          46          53
    ---------------------------------------------------------------------------

    Public enterprise funds:

                       Homeowners Assistance Fund, Defense

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4090-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Payment to homeowners (private
            sale and foreclosure assistance)           4           4           2
    09.02 Other operating costs.............           6           6           6
    09.03 Capital Investment: Acquisition of
            real property...................           3           4           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          13          14          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          22          23          23
    22.00 New budget authority (gross)......          13          14          16
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          36          37          39
    23.95 Total new obligations.............         -13         -14         -16
    24.40 Unobligated balance carried
            forward, end of year............          23          23          23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          10
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           4          14          16
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           3          14          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          13          14          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           3         -22
    73.10 Total new obligations.............          13          14          16
    73.20 Total outlays (gross).............         -13         -39         -16
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
    74.40 Obligated balance, end of year....           3         -22         -22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          12          14          16
    86.93 Outlays from discretionary
            balances........................           1          25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13          39          16
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -4
    88.40     Offsetting collections, Non-
                Federal sources, Other......                     -14         -16
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -4         -14         -16
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10
    90.00 Outlays...........................           9          25
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4090-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                   2
    26.0  Supplies and materials............           5           8           4
    32.0  Land and structures...............           6           6           8
    42.0  Insurance claims and indemnities..           2                       2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          13          14          16
    ---------------------------------------------------------------------------

              Department of Defense Family Housing Improvement Fund

        For the Department of Defense Family Housing Improvement Fund,
    [$2,000,000] $300,000, to remain available until expended, for family
    housing initiatives undertaken pursuant to section 2883 of title 10,
    United States Code, providing alternative means of acquiring and
    improving military family housing, and supporting facilities. (Military
    Construction Appropriations Act, 2003.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0834-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0100  Negative subsidies/subsidy
            reestimates.....................                       2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0834-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............                      44          88
    00.02 Loan guarantee subsidy............                       7          13
    00.05 Reestimate of direct loan subsidy.                       2
    00.10 Program expense...................           8           2           2
    00.11 Equity investment.................         104         185         243
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         112         240         346
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         109          40          52
    22.00 New budget authority (gross)......          15          45
    22.22 Unobligated balance transferred
            from other DoD accounts.........          28         207         313
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         152         292         365
    23.95 Total new obligations.............        -112        -240        -346
    24.40 Unobligated balance carried
            forward, end of year............          40          52          19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           2           2
    42.00   Transferred from other DoD
              accounts......................           5          41
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           7          43
    50.00   Reappropriation.................           8
          Mandatory:

    60.00   Appropriation...................                       2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          15          45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          99          43          65
    73.10 Total new obligations.............         112         240         346
    73.20 Total outlays (gross).............        -168        -218        -258
    74.40 Obligated balance, end of year....          43          65         153
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           7          26
    86.93 Outlays from discretionary
            balances........................         161         190         258
    86.97 Outlays from new mandatory
            authority.......................                       2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         168         218         258
    ----------------------------------------------------------------------------

    [[Page 291]]

        Net budget authority and outlays:
    89.00 Budget authority..................          15          45
    90.00 Outlays...........................         168         218         258
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0834-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Defense family housing direct loan
            levels..........................                     206         221
                                               ---------   ---------  ----------
    115901Total direct loan levels..........                     206         221
        Direct loan subsidy (in percent):
    132001Defense family housing direct loan
            levels..........................        0.00       21.36       39.95
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.00       21.36       39.95
        Direct loan subsidy budget authority:
    133001Defense family housing direct loan
            levels..........................                      44          88
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....                      44          88
        Direct loan subsidy outlays:
    134001Defense family housing direct loan
            levels..........................          50           7          17
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          50           7          17
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Defense family housing direct loan
            levels..........................                       2
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................                       2
        Direct loan upward reestimate subsidy outlays:
    136001Defense family housing direct loan
            levels..........................                       2
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...                       2
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Defense family housing direct loan
            levels..........................                      -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................                      -1
        Direct loan downward reestimate subsidy
                    outlays:
    138001Defense family housing direct loan
            levels..........................                      -1
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................                      -1
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Defense family housing loan
            guarantee levels................                     138         259
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                     138         259
        Guaranteed loan subsidy (in percent):
    232001Defense family housing loan
            guarantee levels................        0.00        5.07        5.40
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.00        5.07        5.40
        Guaranteed loan subsidy budget authority:
    233001Defense family housing loan
            guarantee levels................                       7          14
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                       7          14
        Guaranteed loan subsidy outlays:
    234001Defense family housing loan
            guarantee levels................          12           1
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............          12           1
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Defense family housing loan
            guarantee levels................                      -1
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................                      -1
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Defense family housing loan
            guarantee levels................                      -1
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................                      -1
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           2           2
    358001Outlays from balances.............                                   2
    359001Outlays from new authority........           2           2
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including modifications of direct loans on loan guarantees that
    resulted from obligations or commitments in any year), as well as
    administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-0834-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           8           2           2
    33.0  Investments and loans.............         104         185         243
    41.0  Grants, subsidies, and
            contributions...................                      53         101
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         112         240         346
    ---------------------------------------------------------------------------

    Department of Defense, Family Housing Improvement, Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4166-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................                     206         221
    00.02 Interest Paid to Treasury.........                       3           4
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............                     209         225
    08.02 Payment of downward reestimate to
            receipt account.................                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                     210         225
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         -68
    22.00 New financing authority (gross)...          68         210         225
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                     210         225
    23.95 Total new obligations.............                    -210        -225
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          44         125         133
    69.00 Offsetting collections (cash).....          50          11          20
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -26          74          72
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................          24          85          92
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          68         210         225
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          68           2         118
    73.10 Total new obligations.............                     210         225
    73.20 Total financing disbursements
            (gross).........................         -92         -21         -35
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          26         -74         -72
    74.40 Obligated balance, end of year....           2         118         235
    87.00 Total financing disbursements
            (gross).........................          92          21          35
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources.............         -50          -7         -17
    88.00       Upward reestimate...........                      -2
    88.40     Non-Federal sources: Interest
                received on loans...........                      -2          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -50         -11         -20
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          26         -74         -72
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          44         125         133
    90.00 Financing disbursements...........          42          10          15
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4166-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................                     206         221
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                     206         221
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                      92         109

    [[Page 292]]

    1231  Disbursements: Direct loan
            disbursements...................          92          17          32
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          92         109         141
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   97-4166-0-3-051    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                         92           109            141
    1402    Interest receivable.............                          1             2              3
    1405    Allowance for subsidy cost (-)..                         50            57             72
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                        143           168            216
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                        143           168            216
        LIABILITIES:
    2103  Federal liabilities: Debt.........                        143           168            216
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                        143           168            216
        NET POSITION:
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                        143           168            216
    -----------------------------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

       Department of Defense, Family Housing Improvement Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4167-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    08.02 Payment of downward reestimate to
            receipt account.................                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                       1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          16          24
    22.00 New financing authority (gross)...                       9          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16          25          40
    23.95 Total new obligations.............                      -1
    24.40 Unobligated balance carried
            forward, end of year............          16          24          40
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          12           2           2
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -12           7          14
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                       9          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -15          -3         -11
    73.10 Total new obligations.............                       1
    73.20 Total financing disbursements
            (gross).........................                      -2          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          12          -7         -14
    74.40 Obligated balance, end of year....          -3         -11         -27
    87.00 Total financing disbursements
            (gross).........................                       2           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -12          -1
    88.25     Interest on uninvested funds..                      -1          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -12          -2          -2
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          12          -7         -14
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         -12
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4167-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................                     138         259
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                     138         259
    2199  Guaranteed amount of guaranteed
            loan commitments................                     138         259
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          70         200         213
    2231  Disbursements of new guaranteed
            loans...........................         131          16           7
    2251  Repayments and prepayments........          -1          -3          -3
    2262  Adjustments: Terminations for
            default that result in
            acquisition of property.........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         200         213         217
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         200         213         217
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of loan guarantees that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   97-4167-0-3-051    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           2             14            16             17
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           2             14            16             17
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           2             14            16             17
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           2             14            16             17
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           2             14            16             17
    -----------------------------------------------------------------------------------------------

                         REVOLVING AND MANAGEMENT FUNDS

                                  Federal Funds

        Resources presented under the Revolving and Management Funds title
    contribute primarily to achieving the Department's annual GPRA
    performance goals of assuring readiness and sustainability and reforming
    processes and organizations. Performance targets in support of these
    goals contribute to the Department's efforts to mitigate force
    management and operational risk and institutional risk, as directed in
    the 2001 Quadrennial Defense Review.

    [[Page 293]]

        The Administration is once again proposing to fully fund civilian
    health and retirement on an accrual basis. The amounts necessary to fund
    this benefit are presented as memo entries but are not included in DoD's
    funding request.

    Public enterprise funds:

                   National Defense Stockpile Transaction Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4555-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         667         667         791
        Receipts:
    02.80 Offsetting collections, National
            defense stockpile transaction
            fund............................         369         334         221
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       1,036       1,001       1,012
        Appropriations:
    05.00 National defense stockpile
            transaction fund................        -369        -210        -148
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -369        -210        -148
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         667         791         864
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4555-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.04 Stockpile operations..............          63          76          69
    09.07 Expenditure Transfers.............         778         134          79
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         841         210         148
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         482          10          10
    22.00 New budget authority (gross)......         369         210         148
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         851         220         158
    23.95 Total new obligations.............        -841        -210        -148
    24.40 Unobligated balance carried
            forward, end of year............          10          10          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Offsetting collections (cash):
    69.00     Offsetting collections (cash).         366         331         218
    69.00     Offsetting collections (cash).           3           3           3
    69.45   Portion precluded from
              obligation (limitation on
              obligations)..................                    -124         -73
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         369         210         148
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16           6           6
    73.10 Total new obligations.............         841         210         148
    73.20 Total outlays (gross).............        -851        -210        -148
    74.40 Obligated balance, end of year....           6           6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         328         210         148
    86.98 Outlays from mandatory balances...         523
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         851         210         148
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -369        -334        -221
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                    -124         -73
    90.00 Outlays...........................         482        -124         -73
    ---------------------------------------------------------------------------

        The National Defense Stockpile is planned and operated under the
    authority of the Strategic and Critical Materials Stockpiling Act. The
    purpose of the Stockpile is to decrease or preclude a dangerous and
    costly dependence by the United States upon foreign sources for supplies
    of strategic and critical materials in times of national emergency. The
    quantities of the materials stockpiled as required by the Stockpiling
    Act are to be sufficient to sustain the United States during a national
    emergency involving military conflict that necessitates an expansion of
    the Armed Forces together with a significant mobilization of the economy
    of the United States.

        The National Defense Stockpile Transaction Fund provides for the
    financing of acquisition, disposal and upgrading of strategic and
    critical stockpile materials, and all related expenses such as
    transportation, development of specifications, testing, quality studies,
    and relocation of materials, and operation of the Defense National
    Stockpile Center.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4555-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          14          15          13
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          15          16          14
    12.1  Civilian personnel benefits.......           3           3           2
    21.0  Travel and transportation of
            persons.........................           1           1           1
    22.0  Transportation of things..........           1           1
    23.1  Rental payments to GSA............          12          12           9
    23.2  Rental payments to others.........           3           3           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1
    25.2  Other services....................          15          27          28
    25.3  Other purchases of goods and
            services from Government
            accounts........................           8           8          10
    26.0  Supplies and materials............           3           3           2
    31.0  Equipment.........................           1           1
    94.0  Financial transfers...............         778         134          79
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         841         210         148
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-4555-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         218         237         202
    ---------------------------------------------------------------------------

                   Reserve Mobilization Income Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4179-0-3-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 26.0)...................           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           3           3
    23.95 Total new obligations.............          -1
    24.40 Unobligated balance carried
            forward, end of year............           3           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           1
    73.20 Total outlays (gross).............          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1
    ---------------------------------------------------------------------------

        This fund pays claims and administrative costs for participating
    members of the insurance program. The program provided insurance
    coverage for Ready Reservists who elected to participate and who were
    involuntarily ordered to active duty in excess of 30 days. The program
    became operational on October 1, 1996. The program was terminated on
    November 18, 1997 by the National Defense Authorization Act of

    [[Page 294]]

    1998 (P.L. 105-85). The 1998 Supplemental provided funding to complete
    benefit payments and close out the program.

                Pentagon Reservation Maintenance Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4950-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Operations........................         436         319         364
    09.02 Renovation........................         887         562         361
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......       1,323         881         725
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,323         881         725
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          32         349         181
    22.00 New budget authority (gross)......       1,314       1,018         652
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          26
    22.21 Unobligated balance transferred to
            other DoD accounts..............                    -305
    22.22 Unobligated balance transferred
            from other accounts.............         300                      16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,672       1,062         849
    23.95 Total new obligations.............      -1,323        -881        -725
    24.40 Unobligated balance carried
            forward, end of year............         349         181         124
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other DoD
              accounts......................         475         255
          Mandatory:

    69.00   Offsetting collections (cash)...       1,176         360         610
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -337         403          42
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         839         763         652
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,314       1,018         652
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         189         764         616
    73.10 Total new obligations.............       1,323         881         725
    73.20 Total outlays (gross).............      -1,059        -626        -705
    73.32 Obligated balance transferred from
            other accounts..................                                  11
    73.45 Recoveries of prior year
            obligations.....................         -26
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         337        -403         -42
    74.40 Obligated balance, end of year....         764         616         605
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         475         255
    86.97 Outlays from new mandatory
            authority.......................         239         305         326
    86.98 Outlays from mandatory balances...         345          66         379
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,059         626         705
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -1,176        -359        -608
    88.40     Non-Federal sources...........                      -1          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,176        -360        -610
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         337        -403         -42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         475         255
    90.00 Outlays...........................        -117         266          95
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4950-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          45          47          56
    11.5    Other personnel compensation....           3          10          10
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          48          57          66
    12.1  Civilian personnel benefits.......          11          17          20
    23.3  Communications, utilities, and
            miscellaneous charges...........          64          65          53
    25.4  Operation and maintenance of
            facilities......................       1,116         632         467
    26.0  Supplies and materials............           9          23          19
    31.0  Equipment.........................          75          87         100
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,323         881         725
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-4950-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         729         872       1,093
    ---------------------------------------------------------------------------

                          National Defense Sealift Fund

        For National Defense Sealift Fund programs, projects, and
    activities, and for expenses of the National Defense Reserve Fleet, as
    established by section 11 of the Merchant Ship Sales Act of 1946 (50
    U.S.C. App. 1744), and for the necessary expenses to maintain and
    preserve a U.S.-flag merchant fleet to serve the national security needs
    of the United States, [$942,629,000] $1,062,762,000, to remain available
    until expended[: Provided, That none of the funds provided in this
    paragraph shall be used to award a new contract that provides for the
    acquisition of any of the following major components unless such
    components are manufactured in the United States: auxiliary equipment,
    including pumps, for all shipboard services; propulsion system
    components (that is; engines, reduction gears, and propellers);
    shipboard cranes; and spreaders for shipboard cranes: Provided further,
    That the exercise of an option in a contract awarded through the
    obligation of previously appropriated funds shall not be considered to
    be the award of a new contract: Provided further, That the Secretary of
    the military department responsible for such procurement may waive the
    restrictions in the first proviso on a case-by-case basis by certifying
    in writing to the Committees on Appropriations of the House of
    Representatives and the Senate that adequate domestic supplies are not
    available to meet Department of Defense requirements on a timely basis
    and that such an acquisition must be made in order to acquire capability
    for national security purposes: Provided further, That, notwithstanding
    any other provision of law, $8,500,000 of the funds available under this
    heading shall be available in addition to other amounts otherwise
    available, only to finance the cost of constructing additional sealift
    capacity]. (Department of Defense Appropriations Act, 2003.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-4557-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Strategic sealift acquisitions....         290         289         730
    00.02 Strategic sealift operation and
            maintenance.....................       1,184         453         323
    00.03 Research and Development..........          10          14          10
    00.04 Ready Reserve Force...............                     252
                                               ---------   ---------  ----------
    01.00   Total, Direct Program...........       1,484       1,008       1,063
    09.01 Strategic sealift operation and
            maintenance.....................         584         805         805
    09.03 Ready Reserve Force...............         227
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,295       1,813       1,868
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         268         380         299
    22.00 New budget authority (gross)......       1,601       1,733       1,868
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          43
    22.22 Unobligated balance transferred
            from other accounts.............         764
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,675       2,113       2,167
    23.95 Total new obligations.............      -2,295      -1,813      -1,868
    24.40 Unobligated balance carried
            forward, end of year............         380         299         299
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         432         942       1,063
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -4

    [[Page 295]]

    41.00   Transferred to other accounts...                     -14
    42.00   Transferred from other accounts.         361
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         789         928       1,063
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         795         805         805
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          16
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         811         805         805
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,601       1,733       1,868
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         398       1,111         849
    73.10 Total new obligations.............       2,295       1,813       1,868
    73.20 Total outlays (gross).............      -1,523      -2,076      -1,831
    73.45 Recoveries of prior year
            obligations.....................         -43
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -16
    74.40 Obligated balance, end of year....       1,111         849         887
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         811       1,304       1,368
    86.93 Outlays from discretionary
            balances........................         712         772         463
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,523       2,076       1,831
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -795        -805        -805
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         790         928       1,063
    90.00 Outlays...........................         728       1,271       1,025
    ---------------------------------------------------------------------------

        In 2004, the Department of Defense will continue to reimburse the
    Department of Transportation for operations and maintenance of the Ready
    Reserve Force from funds appropriated to DOD.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 17-4557-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           7           9          17
    25.2    Other services..................           4           4           3
            Other purchases of goods and
                services from Government
                accounts:
    25.3      Other purchases of goods and
                services from Government
                accounts....................          10          10          10
    25.3      Purchases from revolving funds          24                     404
    25.5    Research and development
              contracts.....................          10                       5
    31.0    Equipment.......................       1,429         985         624
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,484       1,008       1,063
          Reimbursable obligations:

    25.3    Other purchases of goods and
              services from Government
              accounts......................         440         494         805
    25.5    Research and development
              contracts.....................           1           2
    31.0    Equipment.......................         370         309
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......         811         805         805
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,295       1,813       1,868
    ---------------------------------------------------------------------------

                          Defense Working Capital Funds

        For the Defense Working Capital Funds, [$1,784,956,000]
    $1,721,507,000: Provided, That during fiscal year [2003] 2004, funds in
    the Defense Working Capital Funds may be used for the purchase of not to
    exceed [315 passenger carrying motor vehicles for replacement only for
    the Defense Security Service, and the purchase of not to exceed 7] 4
    passenger motor vehicles for replacement only for the Defense Logistics
    Agency. (Department of Defense Appropriations Act, 2003.)

                           working capital fund, army

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493001-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Ordnance..........................         699         528         654
    09.02 Depot Maintenance.................       1,718       1,771       1,778
    09.03 Information Services..............          65          95
    09.04 Supply Management.................       4,256       6,882       6,151
    09.11 Ordnance..........................           9          16          59
    09.12 Depot Maintenance.................          23          51          44
    09.14 Supply Management.................          61          94          43
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       6,831       9,437       8,729
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,505       1,708       1,312
    22.00 New budget authority (gross)......       6,630       9,041       8,896
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         404
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       8,539      10,749      10,208
    23.95 Total new obligations.............      -6,831      -9,437      -8,729
    24.40 Unobligated balance carried
            forward, end of year............       1,708       1,312       1,480
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         167         249         219
          Mandatory:

    66.10   Contract authority..............          67
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).       6,274       8,694       8,498
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         122          98         179
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....       6,396       8,792       8,677
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       6,630       9,041       8,896
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,130         919       1,566
    73.10 Total new obligations.............       6,831       9,437       8,729
    73.20 Total outlays (gross).............      -6,516      -8,692      -8,404
    73.45 Recoveries of prior year
            obligations.....................        -404
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -122         -98        -179
    74.40 Obligated balance, end of year....         919       1,566       1,711
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       5,237       6,843       6,293
    86.93 Outlays from discretionary
            balances........................       1,279       1,849       2,111
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       6,516       8,692       8,404
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -6,259      -8,652      -8,438
    88.40     Non-Federal sources...........         -15         -42         -60
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -6,274      -8,694      -8,498
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -122         -98        -179
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         234         249         219
    90.00 Outlays...........................         242          -2         -94
    ---------------------------------------------------------------------------

        The Army Working Capital Fund finances the operations of Army
    industrial, commercial and support-type activities. The Fund finances,
    in accordance with section 2208 of 10 U.S.C. through receipt of funded
    customer reimbursable orders, operating and capital expenses (excluding
    Military Construction), and uses cost accounting and business management
    techniques to provide DoD managers with information that can be used to
    monitor, control, and minimize its cost of operations.

    [[Page 296]]

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493001-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Contract authority:
    0200  Contract authority................          67
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493001-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         850         839         869
    11.3    Other than full-time permanent..          54          81          96
    11.5    Other personnel compensation....         151          80         104
    11.7    Military personnel..............                       5           5
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..       1,055       1,005       1,074
    12.1  Civilian personnel benefits.......         248         206         229
    13.0  Benefits for former personnel.....           5           3           1
    21.0  Travel and transportation of
            persons.........................          23          29          26
    22.0  Transportation of things..........          50          52         120
    23.1  Rental payments to GSA............           5           5           7
    23.2  Rental payments to others.........           2           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........          44          67          54
    24.0  Printing and reproduction.........           2
    25.1  Advisory and assistance services..          79          79          31
    25.2  Other services....................         212         153         121
          Other purchases of goods and services from
              Government accounts:

    25.3    Purchases of goods and services
              from other Federal Agencies...         307         238         247
    25.3    Purchases from revolving funds..       1,318         865         425
    25.4  Operation and maintenance of
            facilities including GOCOs......          51          58          88
    25.7  Contract operation and maintenance
            of equipment including ADP hard/
            software........................         377         176          30
    25.8  Subsistence and support of persons           2
    26.0  Supplies and materials............       2,936       6,423       6,062
    31.0  Equipment.........................          78          77         213
    32.0  Land and structures...............          14
    43.0  Interest and dividends............          23
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       6,831       9,437       8,729
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-493001-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      22,692      21,414      21,060
    ---------------------------------------------------------------------------

                           Working Capital Fund, Navy

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493002-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.02 Depot maintenance--Shipyards......       2,291       2,387       1,392
    09.03 Depot maintenance--Aviation.......       1,529       1,931       1,916
    09.04 Depot maintenance -Ordnance.......         226
    09.05 Depot maintenance--Other..........         197         224         194
    09.06 Base support......................       1,714       1,521       1,495
    09.07 Transportation....................       1,342       1,715       1,692
    09.08 Research and development
            activities......................      10,004       8,580       8,261
    09.11 Supply Management.................       6,980       7,796       6,864
    09.20 Supply management.................          82          72          50
    09.21 Depot maintenance--Shipyards......         126          42          21
    09.22 Depot maintenance--Aviation.......          46          47          39
    09.24 Depot maintenance--Other..........           5           3           4
    09.25 Base support......................          16          19          19
    09.26 Transportation....................          10          14          13
    09.27 Research and development
            activities......................         117         116         109
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      24,685      24,467      22,069
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       3,103       2,882       2,800
    22.00 New budget authority (gross)......      24,882      24,518      22,709
    22.60 Portion applied to repay debt.....        -135        -133        -108
    22.75 Balance of contract authority
            withdrawn.......................        -282
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      27,568      27,267      25,401
    23.95 Total new obligations.............     -24,685     -24,467     -22,069
    24.40 Unobligated balance carried
            forward, end of year............       2,882       2,800       3,333
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                      40         130
          Mandatory:

    66.10   Contract authority..............         819
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).      23,768      24,300      22,620
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         295         178         -41
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....      24,063      24,478      22,579
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      24,882      24,518      22,709
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,958       4,222       4,006
    73.10 Total new obligations.............      24,685      24,467      22,069
    73.20 Total outlays (gross).............     -23,127     -24,505     -22,874
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -295        -178          41
    74.40 Obligated balance, end of year....       4,222       4,006       3,242
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      17,756      17,419      17,064
    86.93 Outlays from discretionary
            balances........................       5,371       7,086       5,810
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      23,127      24,505      22,874
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............     -23,476     -23,759     -22,092
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -292        -541        -528
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -23,768     -24,300     -22,620
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -295        -178          41
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         819          40         130
    90.00 Outlays...........................        -641         205         254
    ---------------------------------------------------------------------------

        The Navy Working Capital Fund finances the operations of Navy
    industrial, commercial and support-type activities. The Fund finances,
    in accordance with section 2208 of 10 U.S.C. through receipt of funded
    customer reimbursable orders, operating and capital expenses (excluding
    Military Construction), and uses cost accounting and business management
    techniques to provide DoD managers with information that can be used to
    monitor, control, and minimize its cost of operations.

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493002-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Contract authority:
    0200  Contract authority................         819
    0600  Balance of contract authority
            withdrawn.......................        -282
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493002-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............       4,954       4,335       5,240
    11.3    Other than full-time permanent..          46          51          48
    11.5    Other personnel compensation....         624         416         524
    11.7    Military personnel..............         132         122         123
    11.8    Special personal services
              payments......................           9           1           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..       5,765       4,925       5,937

    [[Page 297]]

    12.1  Civilian personnel benefits.......       1,330       1,127       1,172
    13.0  Benefits for former personnel.....          24          47          32
    21.0  Travel and transportation of
            persons.........................         277         291          67
    22.0  Transportation of things..........         170         166         174
    23.1  Rental payments to GSA............           1           1           1
    23.2  Rental payments to others.........         533         513         543
    23.3  Communications, utilities, and
            miscellaneous charges...........         733         709         693
    24.0  Printing and reproduction.........          18          30          21
    25.1  Advisory and assistance services..         109          65          76
    25.2  Other services....................         878         638         554
          Other purchases of goods and services from
              Government accounts:

    25.3    Purchases of goods and services
              from other Federal Agencies...         748         585         614
    25.3    Payments to foreign national
              indirect hire personnel.......          15          14          12
    25.3    Purchases from revolving funds..         472         424         418
    25.4  Operation and maintenance of
            facilities including GOCOs......         613         678         485
    25.5  Research and development contracts       2,961       1,785       2,426
    25.7  Contract operation and maintenance
            of equipment including ADP hard/
            soft............................       1,057       1,054       1,054
    26.0  Supplies and materials............       8,130      10,773       7,013
    31.0  Equipment.........................         851         642         777
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      24,685      24,467      22,069
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-493002-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      88,916      89,281      78,837
    ---------------------------------------------------------------------------

                         working capital fund, air force

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493003-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Depot maintenance--Aviation.......       6,661       5,756       5,468
    09.01 Transportation....................       5,492       5,507       4,372
    09.02 Information services..............         637         606         623
    09.03 Supply management.................       8,911       9,720       9,543
    09.10 Depot maintenance--Aviation.......         209         107         167
    09.11 Transportation....................         187         202         197
    09.12 Information services..............           9          10          11
    09.13 Supply management.................          59          68          53
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      22,165      21,976      20,434
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         -90         827         869
    22.00 New budget authority (gross)......      23,068      22,045      20,709
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.22 Unobligated balance transferred
            from other DoD accounts.........          78
    22.60 Portion applied to repay debt.....         -25         -27          -7
    22.75 Balance of contract authority
            withdrawn.......................         -41
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      22,991      22,845      21,571
    23.95 Total new obligations.............     -22,165     -21,976     -20,434
    24.40 Unobligated balance carried
            forward, end of year............         827         869       1,137
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          34          24          40
          Mandatory:

    66.10   Contract authority..............         258
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).      21,833      21,906      20,794
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         943         115        -125
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....      22,776      22,021      20,669
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      23,068      22,045      20,709
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       4,266       3,971       3,854
    73.10 Total new obligations.............      22,165      21,976      20,434
    73.20 Total outlays (gross).............     -21,515     -21,979     -20,900
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -943        -115         125
    74.40 Obligated balance, end of year....       3,971       3,854       3,512
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      18,315      21,605      20,678
    86.93 Outlays from discretionary
            balances........................       3,200         374         222
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      21,515      21,979      20,900
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............     -21,623     -21,519     -20,362
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -210        -387        -432
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -21,833     -21,906     -20,794
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -943        -115         125
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         292          24          40
    90.00 Outlays...........................        -317          73         106
    ---------------------------------------------------------------------------

        The Air Force Working Capital Fund finances the operations of Air
    Force and USTRANSCOM industrial, commercial and support-type activities.
    The Fund finances, in accordance with section 2208 of 10 U.S.C. through
    receipt of funded customer reimbursable orders, operating and capital
    expenses (excluding Military Construction), and uses cost accounting and
    business management techniques to provide DoD managers with information
    that can be used to monitor, control, and minimize its cost of
    operations.

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493003-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Contract authority:
    0200  Contract authority................         258
    0600  Balance of contract authority
            withdrawn.......................         -41
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493003-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............       1,630       1,616       1,611
    11.5    Other personnel compensation....         188         186         137
    11.7    Military personnel..............          99          98          96
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..       1,917       1,900       1,844
    12.1  Civilian personnel benefits.......          30          29          21
    21.0  Travel and transportation of
            persons.........................         221         219         114
    22.0  Transportation of things..........       2,922       2,897         166
    23.2  Rental payments to others.........          12          12           7
    23.3  Communications, utilities, and
            miscellaneous charges...........          67          66          68
    24.0  Printing and reproduction.........           3           3           6
    25.1  Advisory and assistance services..         387         384         338
    25.2  Other services....................       2,505       2,485       2,681
          Other purchases of goods and services from
              Government accounts:

    25.3    Payments to foreign national
              indirect hire personnel.......          10          10          10
    25.3    Purchases from revolving funds..      10,963      10,870      12,383
    25.4  Operation and maintenance of
            facilities including GOCOs......         245         243         113
    25.7  Contract operation and maintenance
            of equipment including ADP hard/
            soft............................       2,290       2,270       2,165
    26.0  Supplies and materials............         107         106          98
    31.0  Equipment.........................         486         482         420
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      22,165      21,976      20,434
    ---------------------------------------------------------------------------

    [[Page 298]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-493003-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      26,780      25,665      26,390
    ---------------------------------------------------------------------------

                       Working Capital Fund, Defense-Wide

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493005-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Distribution Depots...............       1,283       1,440       1,473
    09.02 Defense Reutilization and
            Marketing.......................         258         281         287
    09.03 Defense Automated Printing Service         388         377         383
    09.04 Defense Financial Operations......       1,452       1,515       1,432
    09.05 Information Services..............       3,184       3,263       3,270
    09.06 Supply Management.................      19,536      23,758      20,599
    09.07 Defense Security Service..........         439         389
    09.10 Distribution Depots...............          34          51          58
    09.11 Defense Reutilization and
            Marketing.......................                       8           8
    09.12 Defense Automated Printing Service           9           6
    09.13 Defense Financial Operations......         177         137          87
    09.14 Information Services..............          62         108         161
    09.15 Supply Management.................         158         280         213
    09.16 Defense Security Service..........           9          21
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      26,989      31,634      27,971
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,881       3,139       4,184
    22.00 New budget authority (gross)......      27,576      32,679      28,168
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
    22.21 Unobligated balance transferred to
            other DoD accounts..............         -78
    22.75 Balance of contract authority
            withdrawn.......................        -256
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      30,128      35,818      32,352
    23.95 Total new obligations.............     -26,989     -31,634     -27,971
    24.40 Unobligated balance carried
            forward, end of year............       3,139       4,184       4,380
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           2         364         243
    41.00   Transferred to other DoD
              accounts......................                    -255
    42.00   Transferred from other DoD
              accounts......................          75         635
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          77         744         243
          Mandatory:

    66.10   Contract authority..............         599
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).      26,056      31,700      28,100
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         844         235        -175
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....      26,900      31,935      27,925
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      27,576      32,679      28,168
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       6,934       7,218       6,917
    73.10 Total new obligations.............      26,989      31,634      27,971
    73.20 Total outlays (gross).............     -25,856     -31,700     -28,300
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -844        -235         175
    74.40 Obligated balance, end of year....       7,218       6,917       6,763
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      23,965      31,402      27,470
    86.93 Outlays from discretionary
            balances........................       1,891         298         830
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      25,856      31,700      28,300
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............     -25,338     -30,517     -26,963
    88.40     Offsetting collections, Non-
                Federal sources, Other......        -718      -1,183      -1,137
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -26,056     -31,700     -28,100
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -844        -235         175
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         676         744         243
    90.00 Outlays...........................        -200                     200
    ---------------------------------------------------------------------------

        The Defense-Wide Working Capital Fund finances the operations of
    Defense Logistics Agency, Defense Finance and Accounting Service,
    Defense Information Services Agency, and Defense Security Service
    commercial and support-type activities. The Fund finances, in accordance
    with section 2208 of 10 U.S.C. through receipt of funded customer
    reimbursable orders, operating and capital expenses (excluding Military
    Construction), and uses cost accounting and business management
    techniques to provide DoD managers with information that can be used to
    monitor, control, and minimize its cost of operations. DoD will propose
    legislation to transfer the function of personnel background
    investigation of its employees to the Office of Personnel Management
    (OPM).

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493005-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Contract authority:
    0200  Contract authority................         599
    0600  Balance of contract authority
            withdrawn.......................        -256
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493005-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............       2,092       2,296       2,241
    11.3    Other than full-time permanent..          64          48          57
    11.5    Other personnel compensation....          71          55          61
    11.7    Military personnel..............          40          45          48
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..       2,267       2,444       2,407
    12.1  Civilian personnel benefits.......         502         370         415
    13.0  Benefits for former personnel.....          48          30          44
    21.0  Travel and transportation of
            persons.........................          86          90          89
    22.0  Transportation of things..........       1,183         928       1,192
    23.1  Rental payments to GSA............          55          55          50
    23.2  Rental payments to others.........          37          36          10
    23.3  Communications, utilities, and
            miscellaneous charges...........       1,650       1,324       1,501
    24.0  Printing and reproduction.........         225         248         263
    25.1  Advisory and assistance services..         121         161         156
    25.2  Other services....................       1,613       1,400       2,118
          Other purchases of goods and services from
              Government accounts:

    25.3    Purchases of goods and services
              from other Federal Agencies...         226       1,444         440
    25.3    Payments to foreign national
              indirect hire personnel.......          25          26          27
    25.3    Purchases from revolving funds..       1,205         928       1,175
    25.4  Operation and maintenance of
            facilities including GOCOs......          96          52          56
    25.7  Contract operation and maintenance
            of equipment including ADP hard/
            soft............................         267         453         455
    26.0  Supplies and materials............      16,720      21,191      17,068
    31.0  Equipment.........................         620         454         505
    32.0  Land and structures...............          40
    43.0  Interest and dividends............           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      26,989      31,634      27,971
    ---------------------------------------------------------------------------

    [[Page 299]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-493005-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      42,995      41,643      37,447
    ---------------------------------------------------------------------------

          Refined Petroleum Products, Marginal Expense Transfer Account

        Such sums as may be necessary may be appropriated to the ``Refined
    Petroleum Products, Marginal Expense Transfer Account'' for the marginal
    amounts needed to purchase up to 118 million barrels of refined
    petroleum projects during fiscal year 2004: Provided, That such marginal
    amounts shall be calculated as the difference between the actual market
    prices paid for the refined petroleum products and the prices assumed in
    the customer accounts in the President's Fiscal Year 2004 budget for
    such purchases: Provided further, That these marginal amounts shall be
    transferred to the Working Capital Fund, Defense-Wide, for the purchase
    of up to the above specified quantity of refined petroleum products:
    Provided further, That marginal amounts (as defined above) in the
    Working Capital Fund, Defense-Wide, not needed for such purchases shall
    be transferred to the Refined Petroleum Products, Marginal Expense
    Transfer Account within 30 days after the end of the fiscal year and be
    cancelled: Provided further, That the transfer authority provided herein
    is in addition to any other transfer authority available to the
    Department of Defense.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4583-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        Due to the difficulties in forecasting fuel prices ten to twenty-
    months in advance, this year the Administration is requesting an
    indefinite appropriation to cover the difference between the funds the
    Department budgets for the purchase of refined petroleum products and
    the actual market prices the Department pays for fuel, i.e., the
    additional marginal expense.

        The military services will continue to budget for fuel and other
    refined petroleum products as they have in the past. The budget request
    for fuel starts with the Administration's economic assumptions about the
    future cost of crude oil, which is based on the futures market and is
    consistent with private sector forecasts.

        The indefinite appropriation would only apply to the additional
    marginal expense of purchasing refined petroleum products. Not covered
    are the additional costs that the Defense-Wide Working Capital Fund
    charges its customers (transportation, facilities, overhead, and
    depreciation costs).

        The indefinite appropriation provides additional funds when fuel
    prices increase above the budgeted price. When fuel prices drop below
    the budgeted price, the extra budgeted funds are cancelled. Over time it
    is anticipated that any additional funds provided by the indefinite
    appropriation will be offset by the cancellation of funds budgeted for
    fuel purchases, but not needed for that purpose due to decreases in the
    price of fuel. A separate account is used to provide visibility.

                 Working Capital Fund, Defense Commissary Agency

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493004-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Commissary Resale Stocks..........       4,970       5,083       5,162
    09.02 Commissary Operations.............       1,055       1,075       1,104
    09.10 Capital program...................           9           5           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       6,034       6,163       6,274
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........        -170         -93        -181
    22.00 New budget authority (gross)......       6,101       6,076       6,265
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
    22.75 Balance of contract authority
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,941       5,983       6,084
    23.95 Total new obligations.............      -6,034      -6,163      -6,274
    24.40 Unobligated balance carried
            forward, end of year............         -93        -181        -189
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,103         959       1,089
    40.72   Reduction pursuant to P.L. 107-
              117...........................          -9
    41.00   Transferred to other DoD
              accounts......................          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,092         959       1,089
          Mandatory:

    66.10   Contract authority..............          12
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).       5,032       5,126       5,209
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -35          -9         -33
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....       4,997       5,117       5,176
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       6,101       6,076       6,265
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         459         484         457
    73.10 Total new obligations.............       6,034       6,163       6,274
    73.20 Total outlays (gross).............      -6,032      -6,200      -6,300
    73.45 Recoveries of prior year
            obligations.....................         -12
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          35           9          33
    74.40 Obligated balance, end of year....         484         457         464
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       5,532       6,076       6,265
    86.93 Outlays from discretionary
            balances........................         500         124          35
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       6,032       6,200       6,300
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -49         -26         -35
    88.40     Offsetting collections, Non-
                Federal sources, Other......      -4,983      -5,100      -5,174
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -5,032      -5,126      -5,209
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          35           9          33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,104         959       1,089
    90.00 Outlays...........................       1,000       1,074       1,091
    ---------------------------------------------------------------------------

        The Defense Commissary Agency Working Capital Fund finances the cost
    of Commissary Operations and Resale Stocks activities. Commissary
    Operations pays the operating costs of 276 commissaries worldwide,
    agency and region headquarters, and support services. Costs include
    civilian pay, transportation of commissary goods overseas,
    rewarehousing, shelf stocking, janitorial services in each commissary,
    and base support as a tenant organization. Resale Stocks pays for the
    purchase of inventory for resale to commissary patrons.

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493004-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Contract authority:
    0200  Contract authority................          12
    0600  Balance of contract authority
            withdrawn.......................          -2
    ---------------------------------------------------------------------------

    [[Page 300]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-493004-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         343         340         346
    11.3    Other than full-time permanent..         116         115         116
    11.5    Other personnel compensation....          15          15          15
    11.7    Military personnel..............           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         475         471         478
    12.1  Civilian personnel benefits.......         133         133         132
    12.2  Military personnel benefits.......                                   1
    21.0  Travel and transportation of
            persons.........................           8          12          11
    22.0  Transportation of things..........         109         110         112
    23.3  Communications, utilities, and
            miscellaneous charges...........          51          52          55
    24.0  Printing and reproduction.........                       1           1
    25.1  Advisory and assistance services..                       1           1
    25.2  Other services....................          14          25          25
          Other purchases of goods and services from
              Government accounts:

    25.3    Other purchases of goods and
              services from Government
              accounts......................          37          35          37
    25.3    Payments to foreign national
              indirect hire personnel.......          22          29          31
    25.3    Purchases from revolving funds..          37          28          28
    25.4  Operation and maintenance of
            facilities......................         114         129         130
    25.7  Operation and maintenance of
            equipment.......................           5          12          14
    26.0  Supplies and materials............       5,016       5,114       5,206
    31.0  Equipment.........................          13          11          12
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       6,034       6,163       6,274
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-493004-0-4-051    2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      13,918      13,576      13,497
    ---------------------------------------------------------------------------

                           Buildings Maintenance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4931-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Operation and maintenance.........          30          25
    09.02 Administration....................           4           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          34          31
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          17          16          16
    22.00 New budget authority (gross)......          32          31
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.21 Unobligated balance transferred to
            other accounts..................                                 -16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          50          47
    23.95 Total new obligations.............         -34         -31
    24.40 Unobligated balance carried
            forward, end of year............          16          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          64          34
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -32          -3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          32          31
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           8          11
    73.10 Total new obligations.............          34          31
    73.20 Total outlays (gross).............         -62         -32
    73.31 Obligated balance transferred to
            other accounts..................                                 -11
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          32           3
    74.40 Obligated balance, end of year....           8          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          12          17
    86.98 Outlays from mandatory balances...          50          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          62          32
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -64         -34
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          32           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -2          -2
    ---------------------------------------------------------------------------

        The Buildings Maintenance Fund was established in accordance with
    direction from Congress in the 1994 Appropriations Conference Report for
    the General Services Administration and under authority in 10 U.S.C.,
    section 2208. It provides for operation and maintenance of 33 leased and
    owned facilities occupied by DoD in the Washington Metropolitan area.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-4931-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           3           4
    12.1  Civilian personnel benefits.......           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1
    25.2  Other services....................          23          20
    25.4  Operation and maintenance of
            facilities......................           3           2
    26.0  Supplies and materials............           1           1
    31.0  Equipment.........................           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          34          31
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 97-4931-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          59          65
    ---------------------------------------------------------------------------

                Army Conventional Ammunition Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-4528-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.04 Reimbursable program..............           8          41           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           8          41           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          81          65          23
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
    22.21 Unobligated balance transferred to
            other accounts..................         -13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          73          65          23
    23.95 Total new obligations.............          -8         -41          -3
    24.40 Unobligated balance carried
            forward, end of year............          65          23          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                       5
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................                      -5
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          55          14          -9

    [[Page 301]]

    73.10 Total new obligations.............           8          41           3
    73.20 Total outlays (gross).............         -44         -69         -12
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                       5
    74.40 Obligated balance, end of year....          14          -9         -18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...          44          69          12
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -5
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................                       5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          44          64          12
    ---------------------------------------------------------------------------

        The Army Conventional Ammunition Working Capital Fund (CAWCF)
    financed the procurement and assembly of conventional ammunition for all
    the Services and other customers. It provided for payment of loading,
    assembling and packing (LAP) operations, component purchases for metal
    parts and explosive materials, and quality assurance and rework effort.
    The CAWCF ceased operations as a working capital fund at the end of
    1998. All unfinished orders on hand as of that date will be processed
    through the fund until completed.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-4528-0-4-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           2          41           3
    26.0  Supplies and materials............           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           8          41           3
    ---------------------------------------------------------------------------

                                   ALLOWANCES

                                  Federal Funds

    General and special funds:

                      Department of Defense Closed Accounts

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-3999-0-1-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          83
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          83
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          83
    23.95 Total new obligations.............         -83
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          83
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          83
    73.20 Total outlays (gross).............         -83
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          83
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          83
    90.00 Outlays...........................          83
    ---------------------------------------------------------------------------

                                   TRUST FUNDS

                                   Trust Funds

                       Voluntary Separation Incentive Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8335-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         785         785         760
        Receipts:
    02.40 Payment to voluntary separation
            incentive fund..................          84          80         108
    02.41 Earnings on investments...........          27          51          48
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         111         131         156
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         896         916         916
        Appropriations:
    05.00 Voluntary separation incentive
            fund............................        -111        -156        -156
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         785         760         760
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8335-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Voluntary separation incetive fund         154         156         156
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         154         156         156
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          43
    22.00 New budget authority (gross)......         111         156         156
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         154         156         156
    23.95 Total new obligations.............        -154        -156        -156
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         111         156         156
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8           8           7
    73.10 Total new obligations.............         154         156         156
    73.20 Total outlays (gross).............        -154        -156        -156
    74.40 Obligated balance, end of year....           8           7           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         111         156         156
    86.98 Outlays from mandatory balances...          43
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         154         156         156
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         111         156         156
    90.00 Outlays...........................         154         156         156
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         823         782         823
    92.02 Total investments, end of year:
            Federal securities: Par value...         782         823         823
    ---------------------------------------------------------------------------

        Section 1175 of Title 10, United States Code, enacted by section 662
    of the National Defense Authorization Act for Fiscal Years 1992 and
    1993, Public Law 102-190, established the Voluntary Separation Incentive
    (VSI) Fund to help manage the ongoing military force drawdown. VSI
    provides annual payments to selected active-duty Service members with
    more than six but less than 20 years of service who leave the service
    voluntarily. The Section 1175(h)(3) provided that after December 31,
    1992, all voluntary separation incentive payments shall be made from the
    fund. The fund is financed through actuarially-determined Government
    contributions from the Department of Defense personnel appropriations to
    cover the unfunded liability and the present value of future benefits
    for those separating and interest on the investments. The total present
    value costs of VSI benefit payments must have been deposited in the fund
    by the time authority to

    [[Page 302]]

    approve VSI benefits ended, December 31, 2001. Permanent authority to
    make these payments is contained in section 8044 of the 1997 Defense
    Appropriations Act.

                     Host Nation Support Fund for Relocation

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8337-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Contributions.....................          12           6           7
        Appropriations:
    05.00 Host nation support fund for
            relocation......................         -12          -6          -7
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8337-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Host nation support fund..........          11           6           7
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          11           6           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           5           4
    22.00 New budget authority (gross)......          12           6           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16          11          11
    23.95 Total new obligations.............         -11          -6          -7
    24.40 Unobligated balance carried
            forward, end of year............           5           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          12           6           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          11           6           7
    73.20 Total outlays (gross).............         -11          -6          -7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          11           6           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          12           6           7
    90.00 Outlays...........................          11           6           7
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           4           5           5
    92.02 Total investments, end of year:
            Federal securities: Par value...           5           5           5
    ---------------------------------------------------------------------------

        Section 2350k of U.S.C. Title 10 established a trust fund for cash
    contributions from any nation in support of relocation of elements of
    the Armed Forces within that nation. The Host Nation Support for
    Relocation Account is financed through these cash contributions and
    interest accrued on the cash balances. Funds may be used to defray costs
    incurred in connection with the relocation for which the contribution
    was made.

                              Other DoD Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-9971-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           2           3           3
        Receipts:
    02.00 Deposits, other DOD trust funds...          26          30          33
    02.41 Interest, other DOD trust funds...           1           1           1
    02.42 Profits from sale of ships' stores          29          20          18
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          56          51          52
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          58          54          55
        Appropriations:
    05.00 Other DOD trust funds.............         -55         -51         -52
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           3           3           3
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-9971-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    02.11 Army trust funds..................           6          16          17
    02.12 Air Force trust funds.............          11           9           9
    02.13 Ships Stores Profit, Navy trust
            fund............................          28          20          18
    02.14 Other Navy trust funds............           5           7           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          49          52          52
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          24          30          29
    22.00 New budget authority (gross)......          55          51          52
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          79          81          81
    23.95 Total new obligations.............         -49         -52         -52
    24.40 Unobligated balance carried
            forward, end of year............          30          29          29
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          55          51          52
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8           9           8
    73.10 Total new obligations.............          49          52          52
    73.20 Total outlays (gross).............         -48         -51         -52
    74.40 Obligated balance, end of year....           9           8           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          48          51          52
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          55          51          52
    90.00 Outlays...........................          48          51          52
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          13          15          13
    92.02 Total investments, end of year:
            Federal securities: Par value...          15          13          13
    ---------------------------------------------------------------------------

        This fund includes gifts and bequests limited to specific purposes
    by the donor. In addition, it accounts for gifts and bequests, not
    limited to specific use by the donor, which may be used for purposes as
    determined by the Secretaries of the Army, Navy and Air Force.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 21-9971-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    26.0  Supplies and materials............          31          34          34
    31.0  Equipment.........................           2           2           2
    41.0  Grants, subsidies, and
            contributions...................          16          16          16
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          49          52          52
    ---------------------------------------------------------------------------

                     National Security Education Trust Fund

        For the purposes of title VIII of Public Law 102-183, $8,000,000, to
    be derived from the National Security Education Trust Fund, to remain
    available until expended. (Department of Defense Appropriations Act,
    2003.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8168-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          34          27          20
        Receipts:
          Offsetting receipts (intragovernmental):

    02.40   Earnings on investments.........           1           1           1
    02.40   Earnings on investments,
              legislative proposal..........                                  -1
                                               ---------   ---------  ----------

    [[Page 303]]

    02.99   Total receipts and collections..           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          35          28          20
        Appropriations:
          Appropriations:

    05.00   National security education
              trust fund....................          -8          -8          -8
    05.00   National security education
              trust fund, legislative
              proposal......................                                   8
                                               ---------   ---------  ----------
    05.99   Total appropriations............          -8          -8
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          27          20          20
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8168-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Direct program activity...........           9           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           9           8           8
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           8           8           8
    23.95 Total new obligations.............          -9          -8          -8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund)......           8           8           8
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           9          10          10
    73.10 Total new obligations.............           9           8           8
    73.20 Total outlays (gross).............          -8          -8          -8
    74.40 Obligated balance, end of year....          10          10          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8           8           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           8           8           8
    90.00 Outlays...........................           8           8           8
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................           8           8           8
      Outlays...........................           8           8           8
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  -8
      Outlays...........................                                  -8
                                        ------------------------------------
    Total:
      Budget Authority..................           8           8
      Outlays...........................           8           8
                                        ====================================

                     National Security Education Trust Fund

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8168-2-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Direct program activity...........                                  -8
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  -8
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  -8
    23.95 Total new obligations.............                                   8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund)......                                  -8
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  -8
    73.20 Total outlays (gross).............                                   8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  -8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  -8
    90.00 Outlays...........................                                  -8
    ---------------------------------------------------------------------------

                    Foreign National Employees Separation Pay

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8165-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.40 Foreign national employees
            separation pay trust fund.......          43          40          38
        Appropriations:
    05.00 Foreign national employees
            separation pay..................         -43         -40         -38
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8165-0-7-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Foreign National Employees
            Separation Fund.................          44          40          38
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 13.0)...................          44          40          38
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          38          36          36
    22.00 New budget authority (gross)......          43          40          38
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          81          76          74
    23.95 Total new obligations.............         -44         -40         -38
    24.40 Unobligated balance carried
            forward, end of year............          36          36          36
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          43          40          38
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         271         302         302
    73.10 Total new obligations.............          44          40          38
    73.20 Total outlays (gross).............         -13         -40         -38
    74.40 Obligated balance, end of year....         302         302         302
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          13          40          38
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          43          40          38
    90.00 Outlays...........................          13          40          38
    ---------------------------------------------------------------------------

        This account funds separation payments for former Department of
    Defense employees who are not United States citizens and who worked
    outside the United States. The payments are determined according to the
    applicable labor laws of the various countries.

                         Other DoD Trust Revolving Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-9981-0-8-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Other DoD trust funds, offsetting
            collections.....................          10          10          10
        Appropriations:
    05.00 Other DoD trust funds.............         -10         -10         -10
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-9981-0-8-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............           8          10          10
                                               ---------   ---------  ----------

    [[Page 304]]

    10.00   Total new obligations (object
              class 44.0)...................           8          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           8          10          10
    23.95 Total new obligations.............          -8         -10         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          10          10          10
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           8          10          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           3           3
    73.10 Total new obligations.............           8          10          10
    73.20 Total outlays (gross).............          -8         -10         -10
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
    74.40 Obligated balance, end of year....           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           8          10          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -10         -10         -10
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -2
    ---------------------------------------------------------------------------

           Surcharge Collections, Sales of Commissary Stores, Defense

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8164-0-8-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Surcharge collections, sales of
            commissary stores, offsetting
            collections.....................         272         253         265
        Appropriations:
    05.00 Surcharge collections, sales of
            commissary stores...............        -272        -253        -265
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8164-0-8-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............         256         253         265
                                               ---------   ---------  ----------
    10.00   otal new obligations............         256         253         265
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         257         253         265
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
    22.75 Balance of contract authority
            withdrawn.......................          -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         257         253         265
    23.95 Total new obligations.............        -256        -253        -265
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         272         253         265
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -15
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         257         253         265
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         178         235         256
    73.10 Total new obligations.............         256         253         265
    73.20 Total outlays (gross).............        -209        -232        -242
    73.45 Recoveries of prior year
            obligations.....................          -6
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          15
    74.40 Obligated balance, end of year....         235         256         279
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         119         127         133
    86.98 Outlays from mandatory balances...          90         105         109
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         209         232         242
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -5          -6          -6
    88.40     Non-Federal sources...........        -267        -247        -259
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -272        -253        -265
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -63         -21         -23
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8164-0-8-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0600  Balance of contract authority
            withdrawn.......................          -6
    ---------------------------------------------------------------------------

        This fund was established in 1992 as a result of the consolidation
    of Defense Commissaries. The trust fund pays for certain commissary
    store operating equipment and supplies, utilities of Commissaries in the
    Continental United States, laundry services, and inventory losses.
    Surcharge funds are also utilized for both minor and major construction
    of commissaries. Title 10 of the United States Code prescribes costs
    which may be financed by the Trust Fund.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 97-8164-0-8-051      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    23.3  Communications, utilities, and
            miscellaneous charges...........           3           2           4
    25.2  Other services....................           2           1           1
    25.4  Operation and maintenance of
            facilities......................          15          29          23
    25.7  Operation and maintenance of
            equipment.......................          43          72          77
    31.0  Equipment.........................          74          81          79
    32.0  Land and structures...............         119          68          81
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         256         253         265
    ---------------------------------------------------------------------------

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      17-304117  Recoveries under the
        foreign military sales program, Navy          35          76          78
      17-321017  General fund proprietary
        receipts, not otherwise classified,
        Navy................................          82          82          82
      21-301900  Recoveries for Government
        property lost or damaged............          11           9           9
      21-304121  Recoveries under the
        foreign military sales program, Army          51          51          51
      21-321021  General fund proprietary
        receipts, not otherwise classified,
        Army................................         122          86          87
      57-304157  Recoveries under the
        foreign military sales program, Air
        Force...............................          41          41          41
      57-321057  General fund proprietary
        receipts, not otherwise classified,
        Air Force...........................          78          84          85

    [[Page 305]]

      97-223600  Sale of certain materials
        in National Defense Stockpile.......         745         126          79
      97-246200  Deposits for survivor
        annuity benefits....................          21          21          21
      97-264400  Defense vessel transfer
        receipt account.....................          13
      97-265197  Sale of scrap and salvage
        materials...........................           1           1           1
      97-276130  Family housing improvement
        fund, downward reestimates of
        subsidies...........................                       2
      97-304197  Recoveries under the
        foreign military sales program,
        defense agencies....................           5           5           5
      97-321097  General fund proprietary
        receipts, not otherwise classified,
        defense agencies....................          33          84          84
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................       1,238         668         623
    ---------------------------------------------------------------------------

                    GENERAL PROVISIONS--DEPARTMENT OF DEFENSE

        Sec. 8001. No part of any appropriation contained in this Act shall
    be used for publicity or propaganda purposes not authorized by the
    Congress.
        [Sec. 8002. During the current fiscal year, provisions of law
    prohibiting the payment of compensation to, or employment of, any person
    not a citizen of the United States shall not apply to personnel of the
    Department of Defense: Provided, That salary increases granted to direct
    and indirect hire foreign national employees of the Department of
    Defense funded by this Act shall not be at a rate in excess of the
    percentage increase authorized by law for civilian employees of the
    Department of Defense whose pay is computed under the provisions of
    section 5332 of title 5, United States Code, or at a rate in excess of
    the percentage increase provided by the appropriate host nation to its
    own employees, whichever is higher: Provided further, That this section
    shall not apply to Department of Defense foreign service national
    employees serving at United States diplomatic missions whose pay is set
    by the Department of State under the Foreign Service Act of 1980:
    Provided further, That the limitations of this provision shall not apply
    to foreign national employees of the Department of Defense in the
    Republic of Turkey.]
        Sec. [8003] 8002. No part of any appropriation contained in this Act
    shall remain available for obligation beyond the current fiscal year,
    unless expressly so provided herein.
        Sec. [8004] 8003. No more than 20 percent of the appropriations in
    this Act which are limited for obligation during the current fiscal year
    shall be obligated during the last 2 months of the fiscal year:
    Provided, That this section shall not apply to obligations for support
    of active duty training of reserve components or summer camp training of
    the Reserve Officers' Training Corps.

                               (transfer of funds)

        Sec. [8005] 8004. Upon determination by the Secretary of Defense
    that such action is necessary in the national interest, he may, with the
    approval of the Office of Management and Budget, transfer not to exceed
    [$2,000,000,000] $4,000,000,000 of working capital funds of the
    Department of Defense or funds made available in this Act to the
    Department of Defense for military functions (except military
    construction) between such appropriations or funds or any subdivision
    thereof, to be merged with and to be available for the same purposes,
    and for the same time period, as the appropriation or fund to which
    transferred: Provided, That such authority to transfer may not be used
    unless for higher priority items, based on unforeseen military
    requirements, than those for which originally appropriated and in no
    case where the item for which funds are requested has been denied by the
    Congress: Provided further, That the Secretary of Defense shall notify
    the Congress promptly of all transfers made pursuant to this authority
    or any other authority in this Act: Provided further, That no part of
    the funds in this Act shall be available to prepare or present a request
    to the Committees on Appropriations for reprogramming of funds, unless
    for higher priority items, based on unforeseen military requirements,
    than those for which originally appropriated and in no case where the
    item for which reprogramming is requested has been denied by the
    Congress: Provided further, [That a request for multiple reprogrammings
    of funds using authority provided in this section must be made prior to
    May 31, 2003: Provided further, That section 8005 of the Department of
    Defense Appropriations Act, 2002 (Public Law 107-117) is amended by
    striking ``$2,000,000,000'', and inserting ``$2,500,000,000''] That in
    time of war or national emergency declared by the President or the
    Congress, the amount which may be transferred under this section may be
    increased by not to exceed 25 percent: Provided further, That in
    addition to the transfer authority provided above, in time of war or
    during a national emergency declared by the President or Congress, when
    reserve forces are called or ordered to active duty, the Secretary of
    Defense may transfer funds from reserve and National Guard operations
    and maintenance appropriations to active duty operations and maintenance
    appropriations.

                               (transfer of funds)

        Sec. [8006] 8005. During the current fiscal year, cash balances in
    working capital funds of the Department of Defense established pursuant
    to section 2208 of title 10, United States Code, may be maintained in
    only such amounts as are necessary at any time for cash disbursements to
    be made from such funds: Provided, That transfers may be made between
    such funds: Provided further, That transfers may be made between working
    capital funds and the ``Foreign Currency Fluctuations, Defense''
    appropriation and the ``Operation and Maintenance'' appropriation
    accounts in such amounts as may be determined by the Secretary of
    Defense, with the approval of the Office of Management and Budget,
    except that such transfers may not be made unless the Secretary of
    Defense has notified the Congress of the proposed transfer. Except in
    amounts equal to the amounts appropriated to working capital funds in
    this Act, no obligations may be made against a working capital fund to
    procure or increase the value of war reserve material inventory, unless
    the Secretary of Defense has notified the Congress prior to any such
    obligation.
        [Sec. 8007. Funds appropriated by this Act may not be used to
    initiate a special access program without prior notification 30 calendar
    days in session in advance to the congressional defense committees.]
        Sec. [8008] 8006. [None of the funds provided in this Act shall be
    available to initiate: (1) a multiyear contract that employs economic
    order quantity procurement in excess of $20,000,000 in any 1 year of the
    contract or that includes an unfunded contingent liability in excess of
    $20,000,000; or (2) a contract for advance procurement leading to a
    multiyear contract that employs economic order quantity procurement in
    excess of $20,000,000 in any 1 year, unless the congressional defense
    committees have been notified at least 30 days in advance of the
    proposed contract award: Provided, That no part of any appropriation
    contained in this Act shall be available to initiate a multiyear
    contract for which the economic order quantity advance procurement is
    not funded at least to the limits of the Government's liability:
    Provided further, That no part of any appropriation contained in this
    Act shall be available to initiate multiyear procurement contracts for
    any systems or component thereof if the value of the multiyear contract
    would exceed $500,000,000 unless specifically provided in this Act:
    Provided further, That no multiyear procurement contract can be
    terminated without 10-day prior notification to the congressional
    defense committees: Provided further, That the execution of multiyear
    authority shall require the use of a present value analysis to determine
    lowest cost compared to an annual procurement.]
        Funds appropriated in title III of this Act may be used for
    multiyear procurement contracts as follows:
            [C-130 aircraft;
            FMTV; and
            F/A-18E and F engine.]
            F/A 18 aircraft;
            E-2C aircraft;
            Tactical Tomahawk missile; and
            Virginia Class Submarine.
        Sec. [8009] 8007. Within the funds appropriated for the operation
    and maintenance of the Armed Forces, funds are hereby appropriated
    pursuant to section 401 of title 10, United States Code, for
    humanitarian and civic assistance costs under chapter 20 of title 10,
    United States Code. Such funds may also be obligated for humanitarian
    and civic assistance costs incidental to authorized operations and
    pursuant to authority granted in section 401 of chapter 20 of title 10,
    United States Code, and these obligations shall be reported [to the
    Congress as of September 30 of each year] as required by section 401(d)
    of title 10, United States Code: Provided, That funds available for
    operation and maintenance shall be available for providing humanitarian
    and similar assistance by using Civic Action Teams in the Trust
    Territories of the Pacific Islands and freely associated states of
    Micronesia, pursuant to the Compact of Free Association as authorized by
    Public Law 99-239: Provided further, That upon a determination by the
    Secretary of the Army that such action is beneficial for graduate
    medical education programs conducted at

    [[Page 306]]

    Army medical facilities located in Hawaii, the Secretary of the Army may
    authorize the provision of medical services at such facilities and
    transportation to such facilities, on a nonreimbursable basis, for
    civilian patients from American Samoa, the Commonwealth of the Northern
    Mariana Islands, the Marshall Islands, the Federated States of
    Micronesia, Palau, and Guam.
        [Sec. 8010. (a) During fiscal year 2003, the civilian personnel of
    the Department of Defense may not be managed on the basis of any end-
    strength, and the management of such personnel during that fiscal year
    shall not be subject to any constraint or limitation (known as an end-
    strength) on the number of such personnel who may be employed on the
    last day of such fiscal year.
        (b) The fiscal year 2004 budget request for the Department of
    Defense as well as all justification material and other documentation
    supporting the fiscal year 2004 Department of Defense budget request
    shall be prepared and submitted to the Congress as if subsections (a)
    and (b) of this provision were effective with regard to fiscal year
    2004.
        (c) Nothing in this section shall be construed to apply to military
    (civilian) technicians.]
        [Sec. 8011. Notwithstanding any other provision of law, none of the
    funds made available by this Act shall be used by the Department of
    Defense to exceed, outside the 50 United States, its territories, and
    the District of Columbia, 125,000 civilian workyears: Provided, That
    workyears shall be applied as defined in the Federal Personnel Manual:
    Provided further, That workyears expended in dependent student hiring
    programs for disadvantaged youths shall not be included in this workyear
    limitation.]
        Sec. [8012] 8008. None of the funds made available by this Act shall
    be used in any way, directly or indirectly, to influence congressional
    action on any legislation or appropriation matters pending before the
    Congress.
        Sec. [8013] 8009. None of the funds appropriated by this Act shall
    be available for the basic pay and allowances of any member of the Army
    participating as a full-time student and receiving benefits paid by the
    Secretary of Veterans Affairs from the Department of Defense Education
    Benefits Fund when time spent as a full-time student is credited toward
    completion of a service commitment: Provided, That this subsection shall
    not apply to those members who have reenlisted with this option prior to
    October 1, 1987: Provided further, That this subsection applies only to
    active components of the Army.
        [Sec. 8014. None of the funds appropriated by ths Act shall be
    available to convert to contractor performance an activity or function
    of the Department of Defense that, on or after the date of the enactment
    of this Act, is performed by more than 10 Department of Defense civilian
    employees until a most efficient and cost-effective organization
    analysis is completed on such activity or function and certification of
    the analysis is made to the Committees on Appropriations of the House of
    Representatives and the Senate: Provided, That this section and
    subsections (a), (b), and (c) of 10 U.S.C. 2461 shall not apply to a
    commercial or industrial type function of the Department of Defense
    that: (1) is included on the procurement list established pursuant to
    section 2 of the Act of June 25, 1938 (41 U.S.C. 47), popularly referred
    to as the Javits-Wagner-O'Day Act; (2) is planned to be converted to
    performance by a qualified nonprofit agency for the blind or by a
    qualified nonprofit agency for other severely handicapped individuals in
    accordance with that Act; or (3) is planned to be converted to
    performance by a qualified firm under 51 percent ownership by an Indian
    tribe, as defined in section 450b(e) of title 25, United States Code, or
    a Native Hawaiian organization, as defined in section 637(a)(15) of
    title 15, United States Code.]

                               (transfer of funds)

        Sec. [8015] 8010. Funds appropriated in title III of this Act for
    the Department of Defense Pilot Mentor-Protege Program may be
    transferred to any other appropriation contained in this Act solely for
    the purpose of implementing a Mentor-Protege Program developmental
    assistance agreement pursuant to section 831 of the National Defense
    Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C.
    2301 note), as amended, under the authority of this provision or any
    other transfer authority contained in this Act.
        [Sec. 8016. None of the funds in this Act may be available for the
    purchase by the Department of Defense (and its departments and agencies)
    of welded shipboard anchor and mooring chain 4 inches in diameter and
    under unless the anchor and mooring chain are manufactured in the United
    States from components which are substantially manufactured in the
    United States: Provided, That for the purpose of this section
    manufactured will include cutting, heat treating, quality control,
    testing of chain and welding (including the forging and shot blasting
    process): Provided further, That for the purpose of this section
    substantially all of the components of anchor and mooring chain shall be
    considered to be produced or manufactured in the United States if the
    aggregate cost of the components produced or manufactured in the United
    States exceeds the aggregate cost of the components produced or
    manufactured outside the United States: Provided further, That when
    adequate domestic supplies are not available to meet Department of
    Defense requirements on a timely basis, the Secretary of the service
    responsible for the procurement may waive this restriction on a case-by-
    case basis by certifying in writing to the Committees on Appropriations
    that such an acquisition must be made in order to acquire capability for
    national security purposes.]
        Sec. [8017] 8011. None of the funds appropriated by this Act
    available for the Civilian Health and Medical Program of the Uniformed
    Services (CHAMPUS) or TRICARE shall be available for the reimbursement
    of any health care provider for inpatient mental health service for care
    received when a patient is referred to a provider of inpatient mental
    health care or residential treatment care by a medical or health care
    professional having an economic interest in the facility to which the
    patient is referred: Provided, That this limitation does not apply in
    the case of inpatient mental health services provided under the program
    for persons with disabilities under subsection (d) of section 1079 of
    title 10, United States Code, provided as partial hospital care, or
    provided pursuant to a waiver authorized by the Secretary of Defense
    because of medical or psychological circumstances of the patient that
    are confirmed by a health professional who is not a Federal employee
    after a review, pursuant to rules prescribed by the Secretary, which
    takes into account the appropriate level of care for the patient, the
    intensity of services required by the patient, and the availability of
    that care.
        Sec. [8018] 8012. Notwithstanding any other provision of law, during
    the current fiscal year, the Secretary of Defense may, by executive
    agreement, establish with host nation governments in NATO member states
    a separate account into which such residual value amounts negotiated in
    the return of United States military installations in NATO member states
    may be deposited, in the currency of the host nation, in lieu of direct
    monetary transfers to the United States Treasury: Provided, That such
    credits may be utilized only for the construction of facilities to
    support United States military forces in that host nation, or such real
    property maintenance and base operating costs that are currently
    executed through monetary transfers to such host nations[: Provided
    further, That the Department of Defense's budget submission for fiscal
    year 2004 shall identify such sums anticipated in residual value
    settlements, and identify such construction, real property maintenance
    or base operating costs that shall be funded by the host nation through
    such credits: Provided further, That all military construction projects
    to be executed from such accounts must be previously approved in a prior
    Act of Congress: Provided further, That each such executive agreement
    with a NATO member host nation shall be reported to the congressional
    defense committees, the Committee on International Relations of the
    House of Representatives and the Committee on Foreign Relations of the
    Senate 30 days prior to the conclusion and endorsement of any such
    agreement established under this provision].
        [Sec. 8019. None of the funds available to the Department of Defense
    may be used to demilitarize or dispose of M-1 Carbines, M-1 Garand
    rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, or M-1911
    pistols.]
        [Sec. 8020. No more than $500,000 of the funds appropriated or made
    available in this Act shall be used during a single fiscal year for any
    single relocation of an organization, unit, activity or function of the
    Department of Defense into or within the National Capital Region:
    Provided, That the Secretary of Defense may waive this restriction on a
    case-by-case basis by certifying in writing to the congressional defense
    committees that such a relocation is required in the best interest of
    the Government.]
        [Sec. 8021. In addition to the funds provided elsewhere in this Act,
    $8,000,000 is appropriated only for incentive payments authorized by
    Section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544):
    Provided, That a prime contractor or a subcontractor at any tier that
    makes a subcontract award to any subcontractor or supplier as defined in
    25 U.S.C. 1544 or a small business owned and controlled by an individual
    defined under 25 U.S.C. 4221(9) shall be considered

    [[Page 307]]

    a contractor for the purposes of being allowed additional compensation
    under section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544)
    whenever the prime contract or subcontract amount is over $500,000 and
    involves the expenditure of funds appropriated by an Act making
    Appropriations for the Department of Defense with respect to any fiscal
    year: Provided further, That notwithstanding 41 U.S.C. Sec. 430, this
    section shall be applicable to any Department of Defense acquisition of
    supplies or services, including any contract and any subcontract at any
    tier for acquisition of commercial items produced or manufactured, in
    whole or in part by any subcontractor or supplier defined in 25 U.S.C.
    Sec. 1544 or a small business owned and controlled by an individual
    defined under 25 U.S.C. 4221(9).]
        [Sec. 8022. None of the funds appropriated by this Act shall be
    available to perform any cost study pursuant to the provisions of OMB
    Circular A-76 if the study being performed exceeds a period of 24 months
    after initiation of such study with respect to a single function
    activity or 48 months after initiation of such study for a multi-
    function activity.]
        Sec. [8023] 8013. Funds appropriated by this Act for the American
    Forces Information Service shall not be used for any national or
    international political or psychological activities.
        Sec. [8024] 8014. Notwithstanding any other provision of law or
    regulation, the Secretary of Defense may adjust wage rates for civilian
    employees hired for certain health care occupations as authorized for
    the Secretary of Veterans Affairs by section 7455 of title 38, United
    States Code.
        Sec. [8025] 8015. (a) Of the funds for the procurement of supplies
    or services appropriated by this Act, qualified nonprofit agencies for
    the blind or other severely handicapped shall be afforded the maximum
    practicable opportunity to participate as subcontractors and suppliers
    in the performance of contracts let by the Department of Defense.
        (b) During the current fiscal year, a business concern which has
    negotiated with a military service or defense agency a subcontracting
    plan for the participation by small business concerns pursuant to
    section 8(d) of the Small Business Act (15 U.S.C. 637(d)) shall be given
    credit toward meeting that subcontracting goal for any purchases made
    from qualified nonprofit agencies for the blind or other severely
    handicapped.
        (c) For the purpose of this section, the phrase ``qualified
    nonprofit agency for the blind or other severely handicapped'' means a
    nonprofit agency for the blind or other severely handicapped that has
    been approved by the Committee for the Purchase from the Blind and Other
    Severely Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
    48).
        Sec. [8026] 8016. During the current fiscal year, net receipts
    pursuant to collections from third party payers pursuant to section 1095
    of title 10, United States Code, shall be made available to the local
    facility of the uniformed services responsible for the collections and
    shall be over and above the facility's direct budget amount.
        Sec. [8027] 8017. During the current fiscal year, the Department of
    Defense is authorized to incur obligations of not to exceed $350,000,000
    for purposes specified in section 2350j(c) of title 10, United States
    Code, in anticipation of receipt of contributions, only from the
    Government of Kuwait, under that section: Provided, That upon receipt,
    such contributions from the Government of Kuwait shall be credited to
    the appropriations or fund which incurred such obligations.
        [Sec. 8028. Of the funds made available in this Act, not less than
    $21,188,000 shall be available for the Civil Air Patrol Corporation, of
    which $19,688,000 shall be available for Civil Air Patrol Corporation
    operation and maintenance to support readiness activities which includes
    $1,500,000 for the Civil Air Patrol counterdrug program: Provided, That
    funds identified for ``Civil Air Patrol'' under this section are
    intended for and shall be for the exclusive use of the Civil Air Patrol
    Corporation and not for the Air Force or any unit thereof.]
        Sec. [8029] 8018. (a) None of the funds appropriated in this Act are
    available to establish a new Department of Defense (department)
    federally funded research and development center (FFRDC), either as a
    new entity, or as a separate entity administrated by an organization
    managing another FFRDC, or as a nonprofit membership corporation
    consisting of a consortium of other FFRDCs and other non-profit
    entities.
        (b) No member of a Board of Directors, Trustees, Overseers, Advisory
    Group, Special Issues Panel, Visiting Committee, or any similar entity
    of a defense FFRDC, and no paid consultant to any defense FFRDC, except
    when acting in a technical advisory capacity, may be compensated for his
    or her services as a member of such entity, or as a paid consultant by
    more than one FFRDC in a fiscal year: Provided, That a member of any
    such entity referred to previously in this subsection shall be allowed
    travel expenses and per diem as authorized under the Federal Joint
    Travel Regulations, when engaged in the performance of membership
    duties.
        (c) Notwithstanding any other provision of law, none of the funds
    available to the department from any source during fiscal year [2003]
    2004 may be used by a defense FFRDC, through a fee or other payment
    mechanism, for construction of new buildings, for payment of cost
    sharing for projects funded by Government grants, for absorption of
    contract overruns, or for certain charitable contributions, not to
    include employee participation in community service and/or development.
        [(d) Notwithstanding any other provision of law, of the funds
    available to the department during fiscal year 2003, not more than 6,321
    staff years of technical effort (staff years) may be funded for defense
    FFRDCs: Provided, That of the specific amount referred to previously in
    this subsection, not more than 1,050 staff years may be funded for the
    defense studies and analysis FFRDCs.]
        [(e) The Secretary of Defense shall, with the submission of the
    department's fiscal year 2004 budget request, submit a report presenting
    the specific amounts of staff years of technical effort to be allocated
    for each defense FFRDC during that fiscal year.]
        [(f) Notwithstanding any other provision of this Act, the total
    amount appropriated in this Act for FFRDCs is hereby reduced by
    $74,200,000.]
        [Sec. 8030. None of the funds appropriated or made available in this
    Act shall be used to procure carbon, alloy or armor steel plate for use
    in any Government-owned facility or property under the control of the
    Department of Defense which were not melted and rolled in the United
    States or Canada: Provided, That these procurement restrictions shall
    apply to any and all Federal Supply Class 9515, American Society of
    Testing and Materials (ASTM) or American Iron and Steel Institute (AISI)
    specifications of carbon, alloy or armor steel plate: Provided further,
    That the Secretary of the military department responsible for the
    procurement may waive this restriction on a case-by-case basis by
    certifying in writing to the Committees on Appropriations of the House
    of Representatives and the Senate that adequate domestic supplies are
    not available to meet Department of Defense requirements on a timely
    basis and that such an acquisition must be made in order to acquire
    capability for national security purposes: Provided further, That these
    restrictions shall not apply to contracts which are in being as of the
    date of the enactment of this Act.]
        Sec. [8031] 8019. For the purposes of this Act, the term
    ``congressional defense committees'' means the Armed Services Committee
    of the House of Representatives, the Armed Services Committee of the
    Senate, the Subcommittee on Defense of the Committee on Appropriations
    of the Senate, and the Subcommittee on Defense of the Committee on
    Appropriations of the House of Representatives.
        Sec. [8032] 8020. During the current fiscal year, the Department of
    Defense may acquire the modification, depot maintenance and repair of
    aircraft, vehicles and vessels as well as the production of components
    and other Defense-related articles, through competition between
    Department of Defense depot maintenance activities and private firms:
    Provided, That the Senior Acquisition Executive of the military
    department or defense agency concerned, with power of delegation, shall
    certify that successful bids include comparable estimates of all direct
    and indirect costs for both public and private bids[: Provided further,
    That Office of Management and Budget Circular A-76 shall not apply to
    competitions conducted under this section].
        Sec. [8033] 8021. (a)(1) If the Secretary of Defense, after
    consultation with the United States Trade Representative, determines
    that a foreign country which is party to an agreement described in
    paragraph (2) has violated the terms of the agreement by discriminating
    against certain types of products produced in the United States that are
    covered by the agreement, the Secretary of Defense shall rescind the
    Secretary's blanket waiver of the Buy American Act with respect to such
    types of products produced in that foreign country.
        (2) An agreement referred to in paragraph (1) is any reciprocal
    defense procurement memorandum of understanding, between the United
    States and a foreign country pursuant to which the Secretary of Defense
    has prospectively waived the Buy American Act for certain products in
    that country.
        (b) The Secretary of Defense shall submit to the Congress a report
    on the amount of Department of Defense purchases from foreign

    [[Page 308]]

    entities in fiscal year [2003] 2004. Such report shall separately
    indicate the dollar value of items for which the Buy American Act was
    waived pursuant to any agreement described in subsection (a)(2), the
    Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any
    international agreement to which the United States is a party.
        (c) For purposes of this section, the term ``Buy American Act''
    means title III of the Act entitled ``An Act making appropriations for
    the Treasury and Post Office Departments for the fiscal year ending June
    30, 1934, and for other purposes'', approved March 3, 1933 (41 U.S.C.
    10a et seq.).
        Sec. [8034] 8022. Appropriations contained in this Act that remain
    available at the end of the current fiscal year as a result of energy
    cost savings realized by the Department of Defense shall remain
    available for obligation for the next fiscal year to the extent, and for
    the purposes, provided in section 2865 of title 10, United States Code.

                          (including transfer of funds)

        Sec. [8035] 8023. Amounts deposited during the current fiscal year
    to the special account established under 40 U.S.C. [485(h)(2)]
    572(b)(5)(A) and to the special account established under 10 U.S.C.
    2667(d)(1) are appropriated and shall be available until transferred by
    the Secretary of Defense to current applicable appropriations or funds
    of the Department of Defense under the terms and conditions specified by
    40 U.S.C. [485(h)(2)(A) and (B)] 572(b)(5)(B) and 10 U.S.C.
    2667(d)(1)(B), to be merged with and to be available for the same time
    period and the same purposes as the appropriation to which transferred.
        [Sec. 8036. The President shall include with each budget for a
    fiscal year submitted to the Congress under section 1105 of title 31,
    United States Code, materials that shall identify clearly and separately
    the amounts requested in the budget for appropriation for that fiscal
    year for salaries and expenses related to administrative activities of
    the Department of Defense, the military departments, and the defense
    agencies.]
        Sec. [8037] 8024. Notwithstanding any other provision of law, funds
    available for ``Drug Interdiction and Counter-Drug Activities, Defense''
    may be obligated for the Young Marines program.

                         [(including transfer of funds)]

        [Sec. 8038. During the current fiscal year, amounts contained in the
    Department of Defense Overseas Military Facility Investment Recovery
    Account established by section 2921(c)(1) of the National Defense
    Authorization Act of 1991 (Public Law 101-510; 10 U.S.C. 2687 note)
    shall be available until expended for the payments specified by section
    2921(c)(2) of that Act.]
        Sec. [8039] 8025. (a) In General.--Notwithstanding any other
    provision of law, the Secretary of the Air Force may convey at no cost
    to the Air Force, without consideration, to Indian tribes located in the
    States of North Dakota, South Dakota, Montana, and Minnesota relocatable
    military housing units located at Grand Forks Air Force Base and Minot
    Air Force Base that are excess to the needs of the Air Force.
        (b) Processing of Requests.--The Secretary of the Air Force shall
    convey, at no cost to the Air Force, military housing units under
    subsection (a) in accordance with the request for such units that are
    submitted to the Secretary by the Operation Walking Shield Program on
    behalf of Indian tribes located in the States of North Dakota, South
    Dakota, Montana, and Minnesota.
        (c) Resolution of Housing Unit Conflicts.--The Operation Walking
    Shield program shall resolve any conflicts among requests of Indian
    tribes for housing units under subsection (a) before submitting requests
    to the Secretary of the Air Force under subsection (b).
        (d) Indian Tribe Defined.--In this section, the term ``Indian
    tribe'' means any recognized Indian tribe included on the current list
    published by the Secretary of the Interior under section 104 of the
    Federally Recognized Indian Tribe Act of 1994 (Public Law 103-454; 108
    Stat. 4792; 25 U.S.C. 479a-1).
        Sec. [8040] 8026. During the current fiscal year, appropriations
    which are available to the Department of Defense for operation and
    maintenance may be used to purchase items having an investment item unit
    cost of [not more than $100,000] up to $500,000.
        [Sec. 8041. (a) During the current fiscal year, none of the
    appropriations or funds available to the Department of Defense Working
    Capital Funds shall be used for the purchase of an investment item for
    the purpose of acquiring a new inventory item for sale or anticipated
    sale during the current fiscal year or a subsequent fiscal year to
    customers of the Department of Defense Working Capital Funds if such an
    item would not have been chargeable to the Department of Defense
    Business Operations Fund during fiscal year 1994 and if the purchase of
    such an investment item would be chargeable during the current fiscal
    year to appropriations made to the Department of Defense for
    procurement.
        (b) The fiscal year 2004 budget request for the Department of
    Defense as well as all justification material and other documentation
    supporting the fiscal year 2004 Department of Defense budget shall be
    prepared and submitted to the Congress on the basis that any equipment
    which was classified as an end item and funded in a procurement
    appropriation contained in this Act shall be budgeted for in a proposed
    fiscal year 2004 procurement appropriation and not in the supply
    management business area or any other area or category of the Department
    of Defense Working Capital Funds.]
        Sec. [8042] 8027. None of the funds appropriated by this Act for
    programs of the Central Intelligence Agency shall remain available for
    obligation beyond the current fiscal year, except for funds appropriated
    for the Reserve for Contingencies, which shall remain available until
    September 30, [2004] 2005: Provided, That funds appropriated,
    transferred, or otherwise credited to the Central Intelligence Agency
    Central Services Working Capital Fund during this or any prior or
    subsequent fiscal year shall remain available until expended: Provided
    further, That any funds appropriated or transferred to the Central
    Intelligence Agency for agent operations and for covert action programs
    authorized by the President under section 503 of the National Security
    Act of 1947, as amended, shall remain available until September 30,
    [2004] 2005.
        Sec. [8043] 8028. Notwithstanding any other provision of law, funds
    made available in this Act for the Defense Intelligence Agency may be
    used for the design, development, and deployment of General Defense
    Intelligence Program intelligence communications and intelligence
    information systems for the Services, the Unified and Specified
    Commands, and the component commands.
        [Sec. 8044. Of the funds appropriated to the Department of Defense
    under the heading ``Operation and Maintenance, Defense-Wide'', not less
    than $10,000,000 shall be made available only for the mitigation of
    environmental impacts, including training and technical assistance to
    tribes, related administrative support, the gathering of information,
    documenting of environmental damage, and developing a system for
    prioritization of mitigation and cost to complete estimates for
    mitigation, on Indian lands resulting from Department of Defense
    activities.]
        [Sec. 8045. Of the funds made available in this Act, not less than
    $68,900,000 shall be available to maintain an attrition reserve force of
    18 B-52 aircraft, of which $3,700,000 shall be available from ``Military
    Personnel, Air Force'', $40,000,000 shall be available from ``Operation
    and Maintenance, Air Force'', and $25,200,000 shall be available from
    ``Aircraft Procurement, Air Force'': Provided, That the Secretary of the
    Air Force shall maintain a total force of 94 B-52 aircraft, including 18
    attrition reserve aircraft, during fiscal year 2003: Provided further,
    That the Secretary of Defense shall include in the Air Force budget
    request for fiscal year 2004 amounts sufficient to maintain a B-52 force
    totaling 94 aircraft.]
        [Sec. 8046. (a) None of the funds appropriated in this Act may be
    expended by an entity of the Department of Defense unless the entity, in
    expending the funds, complies with the Buy American Act. For purposes of
    this subsection, the term ``Buy American Act'' means title III of the
    Act entitled ``An Act making appropriations for the Treasury and Post
    Office Departments for the fiscal year ending June 30, 1934, and for
    other purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
        (b) If the Secretary of Defense determines that a person has been
    convicted of intentionally affixing a label bearing a ``Made in
    America'' inscription to any product sold in or shipped to the United
    States that is not made in America, the Secretary shall determine, in
    accordance with section 2410f of title 10, United States Code, whether
    the person should be debarred from contracting with the Department of
    Defense.
        (c) In the case of any equipment or products purchased with
    appropriations provided under this Act, it is the sense of the Congress
    that any entity of the Department of Defense, in expending the
    appropriation, purchase only American-made equipment and products,
    provided that American-made equipment and products are cost-competitive,
    quality-competitive, and available in a timely fashion.]
        Sec. [8047] 8029. None of the funds appropriated by this Act shall
    be available for a contract for studies, analysis, or consulting

    [[Page 309]]

    services entered into without competition on the basis of an unsolicited
    proposal unless the head of the activity responsible for the procurement
    determines--
            (1) as a result of thorough technical evaluation, only one
        source is found fully qualified to perform the proposed work;
            (2) the purpose of the contract is to explore an unsolicited
        proposal which offers significant scientific or technological
        promise, represents the product of original thinking, and was
        submitted in confidence by one source; or
            (3) the purpose of the contract is to take advantage of unique
        and significant industrial accomplishment by a specific concern, or
        to insure that a new product or idea of a specific concern is given
        financial support:
    Provided, That this limitation shall not apply to contracts in an amount
    of less than $25,000, contracts related to improvements of equipment
    that is in development or production, or contracts as to which a
    civilian official of the Department of Defense, who has been confirmed
    by the Senate, determines that the award of such contract is in the
    interest of the national defense.
        [Sec. 8048. (a) Except as provided in subsection (b) and (c), none
    of the funds made available by this Act may be used--
            (1) to establish a field operating agency; or
            (2) to pay the basic pay of a member of the Armed Forces or
        civilian employee of the department who is transferred or reassigned
        from a headquarters activity if the member or employee's place of
        duty remains at the location of that headquarters.
        (b) The Secretary of Defense or Secretary of a military department
    may waive the limitations in subsection (a), on a case-by-case basis, if
    the Secretary determines, and certifies to the Committees on
    Appropriations of the House of Representatives and Senate that the
    granting of the waiver will reduce the personnel requirements or the
    financial requirements of the department.
        (c) This section does not apply to field operating agencies funded
    within the National Foreign Intelligence Program.]
        Sec. [8049] 8030. Notwithstanding section 303 of Public Law 96-487
    or any other provision of law, the Secretary of the Navy is authorized
    to lease real and personal property at Naval Air Facility, Adak, Alaska,
    pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other
    purposes: Provided, That notwithstanding any other provision of law, the
    Secretary of the Navy may remove hazardous materials from facilities,
    buildings, and structures at Adak, Alaska, and may demolish or otherwise
    dispose of such facilities, buildings, and structures.

                                 [(rescissions)]

        [Sec. 8050. Of the funds appropriated in Department of Defense
    Appropriations Acts, the following funds are hereby rescinded from the
    following accounts and programs in the specified amounts:
            ``Procurement of Weapons and Tracked Combat Vehicles, Army,
        2001/2003'', $9,500,000;
            ``Procurement of Ammunition, Army, 2001/2003'', $4,000,000;
            ``Other Procurement, Army, 2001/2003'', $8,000,000;
            ``Other Procurement, Navy, 2001/2003'', $5,000,000;
            ``Missile Procurement, Air Force, 2001/2003'', $93,600,000;
            ``Missile Procurement, Army, 2002/2004'', $37,650,000;
            ``Procurement of Ammunition, Army, 2002/2004'', $19,000,000;
            ``Other Procurement, Army, 2002/2004'', $21,200,000;
            ``Missile Procurement, Air Force, 2002/2004'', $114,600,000;
            ``Research, Development, Test and Evaluation, Navy, 2002/2003'',
        $1,700,000;
            ``Research, Development, Test and Evaluation, Air Force, 2002/
        2003'', $69,000,000; and
            ``Research, Development, Test and Evaluation, Defense-Wide,
        2002/2003'', $19,500,000.]
        [Sec. 8051. None of the funds available in this Act may be used to
    reduce the authorized positions for military (civilian) technicians of
    the Army National Guard, the Air National Guard, Army Reserve and Air
    Force Reserve for the purpose of applying any administratively imposed
    civilian personnel ceiling, freeze, or reduction on military (civilian)
    technicians, unless such reductions are a direct result of a reduction
    in military force structure.]
        Sec. [8052] 8031. None of the funds appropriated or otherwise made
    available in this Act may be obligated or expended for assistance to the
    Democratic People's Republic of North Korea unless specifically
    appropriated for that purpose.
        Sec. [8053] 8032. During the current fiscal year, funds appropriated
    in this Act are available to compensate members of the National Guard
    for duty performed pursuant to a plan submitted by a Governor of a State
    and approved by the Secretary of Defense under section 112 of title 32,
    United States Code: Provided, That during the performance of such duty,
    the members of the National Guard shall be under State command and
    control: Provided further, That such duty shall be treated as full-time
    National Guard duty for purposes of sections 12602(a)(2) and (b)(2) of
    title 10, United States Code.
        Sec. [8054] 8033. Funds appropriated in this Act for operation and
    maintenance of the Military Departments, Combatant Commands and Defense
    Agencies shall be available for reimbursement of pay, allowances and
    other expenses which would otherwise be incurred against appropriations
    for the National Guard and Reserve when members of the National Guard
    and Reserve provide intelligence or counterintelligence support to
    Combatant Commands, Defense Agencies and Joint Intelligence Activities,
    including the activities and programs included within the National
    Foreign Intelligence Program (NFIP), the Joint Military Intelligence
    Program (JMIP), and the Tactical Intelligence and Related Activities
    (TIARA) aggregate: Provided, That nothing in this section authorizes
    deviation from established Reserve and National Guard personnel and
    training procedures.
        [Sec. 8055. During the current fiscal year, none of the funds
    appropriated in this Act may be used to reduce the civilian medical and
    medical support personnel assigned to military treatment facilities
    below the September 30, 2002 level: Provided, That the Service Surgeons
    General may waive this section by certifying to the congressional
    defense committees that the beneficiary population is declining in some
    catchment areas and civilian strength reductions may be consistent with
    responsible resource stewardship and capitation-based budgeting.]
        [Sec. 8056. (a) Limitation on Pentagon Renovation Costs.--Not later
    than the date each year on which the President submits to Congress the
    budget under section 1105 of title 31, United States Code, the Secretary
    of Defense shall submit to Congress a certification that the total cost
    for the planning, design, construction, and installation of equipment
    for the renovation of wedges 2 through 5 of the Pentagon Reservation,
    cumulatively, will not exceed four times the total cost for the
    planning, design, construction, and installation of equipment for the
    renovation of wedge 1.
        (b) Annual Adjustment.--For purposes of applying the limitation in
    subsection (a), the Secretary shall adjust the cost for the renovation
    of wedge 1 by any increase or decrease in costs attributable to economic
    inflation, based on the most recent economic assumptions issued by the
    Office of Management and Budget for use in preparation of the budget of
    the United States under section 1104 of title 31, United States Code.
        (c) Exclusion of Certain Costs.--For purposes of calculating the
    limitation in subsection (a), the total cost for wedges 2 through 5
    shall not include--
            (1) any repair or reconstruction cost incurred as a result of
        the terrorist attack on the Pentagon that occurred on September 11,
        2001;
            (2) any increase in costs for wedges 2 through 5 attributable to
        compliance with new requirements of Federal, State, or local laws;
        and
            (3) any increase in costs attributable to additional security
        requirements that the Secretary of Defense considers essential to
        provide a safe and secure working environment.
        (d) Certification Cost Reports.--As part of the annual certification
    under subsection (a), the Secretary shall report the projected cost (as
    of the time of the certification) for--
            (1) the renovation of each wedge, including the amount adjusted
        or otherwise excluded for such wedge under the authority of
        paragraphs (2) and (3) of subsection (c) for the period covered by
        the certification; and
            (2) the repair and reconstruction of wedges 1 and 2 in response
        to the terrorist attack on the Pentagon that occurred on September
        11, 2001.
        (e) Duration of Certification Requirement.--The requirement to make
    an annual certification under subsection (a) shall apply until the
    Secretary certifies to Congress that the renovation of the Pentagon
    Reservation is completed.]
        [Sec. 8057. Notwithstanding any other provision of law, that not
    more than 35 percent of funds provided in this Act for environmental
    remediation may be obligated under indefinite delivery/indefinite
    quantity contracts with a total contract value of $130,000,000 or
    higher.]
        Sec. [8058] 8034. (a) None of the funds available to the Department
    of Defense for any fiscal year for drug interdiction or counter-

    [[Page 310]]

    drug activities may be transferred to any other department or agency of
    the United States except as specifically provided in an appropriations
    law.
        (b) None of the funds available to the Central Intelligence Agency
    for any fiscal year for drug interdiction and counter-drug activities
    may be transferred to any other department or agency of the United
    States except as specifically provided in an appropriations law.

                               (transfer of funds)

        Sec. [8059] 8035. Appropriations available in this Act under the
    heading ``Operation and Maintenance, Defense-Wide'' for increasing
    energy and water efficiency in Federal buildings may, during their
    period of availability, be transferred to other appropriations or funds
    of the Department of Defense for projects related to increasing energy
    and water efficiency, to be merged with and to be available for the same
    general purposes, and for the same time period, as the appropriation or
    fund to which transferred.
        [Sec. 8060. None of the funds appropriated by this Act may be used
    for the procurement of ball and roller bearings other than those
    produced by a domestic source and of domestic origin: Provided, That the
    Secretary of the military department responsible for such procurement
    may waive this restriction on a case-by-case basis by certifying in
    writing to the Committees on Appropriations of the House of
    Representatives and the Senate, that adequate domestic supplies are not
    available to meet Department of Defense requirements on a timely basis
    and that such an acquisition must be made in order to acquire capability
    for national security purposes: Provided further, That this restriction
    shall not apply to the purchase of ``commercial items'', as defined by
    section 4(12) of the Office of Federal Procurement Policy Act, except
    that the restriction shall apply to ball or roller bearings purchased as
    end items.]
        Sec. [8061] 8036. Notwithstanding any other provision of law, funds
    available to the Department of Defense shall be made available to
    provide transportation of medical supplies and equipment, on a
    nonreimbursable basis, to American Samoa, and funds available to the
    Department of Defense shall be made available to provide transportation
    of medical supplies and equipment, on a nonreimbursable basis, to the
    Indian Health Service when it is in conjunction with a civil-military
    project.
        [Sec. 8062. None of the funds in this Act may be used to purchase
    any supercomputer which is not manufactured in the United States, unless
    the Secretary of Defense certifies to the congressional defense
    committees that such an acquisition must be made in order to acquire
    capability for national security purposes that is not available from
    United States manufacturers.]
        Sec. [8063] 8037. Notwithstanding any other provision of law, the
    Naval shipyards of the United States shall be eligible to participate in
    any manufacturing extension program financed by funds appropriated in
    this or any other Act.
        [Sec. 8064. Notwithstanding any other provision of law, each
    contract awarded by the Department of Defense during the current fiscal
    year for construction or service performed in whole or in part in a
    State (as defined in section 381(d) of title 10, United States Code)
    which is not contiguous with another State and has an unemployment rate
    in excess of the national average rate of unemployment as determined by
    the Secretary of Labor, shall include a provision requiring the
    contractor to employ, for the purpose of performing that portion of the
    contract in such State that is not contiguous with another State,
    individuals who are residents of such State and who, in the case of any
    craft or trade, possess or would be able to acquire promptly the
    necessary skills: Provided, That the Secretary of Defense may waive the
    requirements of this section, on a case-by-case basis, in the interest
    of national security.]
        [Sec. 8065. (a) None of the funds made available in this or any
    other Act may be used to pay the salary of any officer or employee of
    the Department of Defense who approves or implements the transfer of
    administrative responsibilities or budgetary resources of any program,
    project, or activity financed by this Act to the jurisdiction of another
    Federal agency not financed by this Act without the express
    authorization of Congress: Provided, That this limitation shall not
    apply to transfers of funds expressly provided for in Defense
    Appropriations Acts, or provisions of Acts providing supplemental
    appropriations for the Department of Defense.
        (b) None of the funds in this or any other Act may be used to
    dismantle national memorials commemorating United States participation
    in World War I.]
        [Sec. 8066. (a) Limitation on Transfer of Defense Articles and
    Services.--Notwithstanding any other provision of law, none of the funds
    available to the Department of Defense for the current fiscal year may
    be obligated or expended to transfer to another nation or an
    international organization any defense articles or services (other than
    intelligence services) for use in the activities described in subsection
    (b) unless the congressional defense committees, the Committee on
    International Relations of the House of Representatives, and the
    Committee on Foreign Relations of the Senate are notified 15 days in
    advance of such transfer.
        (b) Covered Activities.--This section applies to--
            (1) any international peacekeeping or peace-enforcement
        operation under the authority of chapter VI or chapter VII of the
        United Nations Charter under the authority of a United Nations
        Security Council resolution; and
            (2) any other international peacekeeping, peace-enforcement, or
        humanitarian assistance operation.
        (c) Required Notice.--A notice under subsection (a) shall include
    the following:
            (1) A description of the equipment, supplies, or services to be
        transferred.
            (2) A statement of the value of the equipment, supplies, or
        services to be transferred.
            (3) In the case of a proposed transfer of equipment or
        supplies--
                    (A) a statement of whether the inventory requirements of
                all elements of the Armed Forces (including the reserve
                components) for the type of equipment or supplies to be
                transferred have been met; and
                    (B) a statement of whether the items proposed to be
                transferred will have to be replaced and, if so, how the
                President proposes to provide funds for such replacement.]
        Sec. [8067] 8038. To the extent authorized by subchapter VI of
    chapter 148 of title 10, United States Code, the Secretary of Defense
    may issue loan guarantees in support of United States defense exports
    not otherwise provided for: Provided, That the total contingent
    liability of the United States for guarantees issued under the authority
    of this section may not exceed $15,000,000,000: Provided further, That
    the exposure fees charged and collected by the Secretary for each
    guarantee shall be paid by the country involved and shall not be
    financed as part of a loan guaranteed by the United States: Provided
    further, That the Secretary shall provide quarterly reports to the
    Committees on Appropriations, Armed Services, and Foreign Relations of
    the Senate and the Committees on Appropriations, Armed Services, and
    International Relations in the House of Representatives on the
    implementation of this program: Provided further, That amounts charged
    for administrative fees and deposited to the special account provided
    for under section 2540c(d) of title 10, shall be available for paying
    the costs of administrative expenses of the Department of Defense that
    are attributable to the loan guarantee program under subchapter VI of
    chapter 148 of title 10, United States Code.
        Sec. [8068] 8039. None of the funds available to the Department of
    Defense under this Act shall be obligated or expended to pay a
    contractor under a contract with the Department of Defense for costs of
    any amount paid by the contractor to an employee when--
            (1) such costs are for a bonus or otherwise in excess of the
        normal salary paid by the contractor to the employee; and
            (2) such bonus is part of restructuring costs associated with a
        business combination.
        [Sec. 8069. (a) None of the funds appropriated or otherwise made
    available in this Act may be used to transport or provide for the
    transportation of chemical munitions or agents to the Johnston Atoll for
    the purpose of storing or demilitarizing such munitions or agents.
        (b) The prohibition in subsection (a) shall not apply to any
    obsolete World War II chemical munition or agent of the United States
    found in the World War II Pacific Theater of Operations.
        (c) The President may suspend the application of subsection (a)
    during a period of war in which the United States is a party.]

                          (including transfer of funds)

        Sec. [8070] 8040. During the current fiscal year, no more than
    $30,000,000 of appropriations made in this Act under the heading
    ``Operation and Maintenance, Defense-Wide'' may be transferred to
    appropriations available for the pay of military personnel, to be merged
    with, and to be available for the same time period as the appropriations
    to which transferred, to be used in support of such personnel in
    connection with support and services for eligible organizations and
    activities outside the Department of Defense pursuant to section 2012 of
    title 10, United States Code.

    [[Page 311]]

        [Sec. 8071. During the current fiscal year, in the case of an
    appropriation account of the Department of Defense for which the period
    of availability for obligation has expired or which has closed under the
    provisions of section 1552 of title 31, United States Code, and which
    has a negative unliquidated or unexpended balance, an obligation or an
    adjustment of an obligation may be charged to any current appropriation
    account for the same purpose as the expired or closed account if--
            (1) the obligation would have been properly chargeable (except
        as to amount) to the expired or closed account before the end of the
        period of availability or closing of that account;
            (2) the obligation is not otherwise properly chargeable to any
        current appropriation account of the Department of Defense; and
            (3) in the case of an expired account, the obligation is not
        chargeable to a current appropriation of the Department of Defense
        under the provisions of section 1405(b)(8) of the National Defense
        Authorization Act for Fiscal Year 1991, Public Law 101-510, as
        amended (31 U.S.C. 1551 note): Provided, That in the case of an
        expired account, if subsequent review or investigation discloses
        that there was not in fact a negative unliquidated or unexpended
        balance in the account, any charge to a current account under the
        authority of this section shall be reversed and recorded against the
        expired account: Provided further, That the total amount charged to
        a current appropriation under this section may not exceed an amount
        equal to 1 percent of the total appropriation for that account.]
        Sec. [8072] 8041. Funds appropriated in title II of this Act and for
    the Defense Health Program in title VI of this Act for supervision and
    administration costs for facilities maintenance and repair, minor
    construction, or design projects may be obligated at the time the
    reimbursable order is accepted by the performing activity: Provided,
    That for the purpose of this section, supervision and administration
    costs includes all in-house Government cost.
        [Sec. 8073. During the current fiscal year and hereafter, the
    Secretary of Defense may waive reimbursement of the cost of conferences,
    seminars, courses of instruction, or similar educational activities of
    the Asia-Pacific Center for Security Studies for military officers and
    civilian officials of foreign nations if the Secretary determines that
    attendance by such personnel, without reimbursement, is in the national
    security interest of the United States: Provided, That costs for which
    reimbursement is waived pursuant to this section shall be paid from
    appropriations available for the Asia-Pacific Center.]
        Sec. [8074] 8042. (a) Notwithstanding any other provision of law,
    the Chief of the National Guard Bureau may permit the use of equipment
    of the National Guard Distance Learning Project by any person or entity
    on a space-available, reimbursable basis. The Chief of the National
    Guard Bureau shall establish the amount of reimbursement for such use on
    a case-by-case basis.
        (b) Amounts collected under subsection (a) shall be credited to
    funds available for the National Guard Distance Learning Project and be
    available to defray the costs associated with the use of equipment of
    the project under that subsection. Such funds shall be available for
    such purposes without fiscal year limitation.
        [Sec. 8075. Using funds available by this Act or any other Act, the
    Secretary of the Air Force, pursuant to a determination under section
    2690 of title 10, United States Code, may implement cost-effective
    agreements for required heating facility modernization in the
    Kaiserslautern Military Community in the Federal Republic of Germany:
    Provided, That in the City of Kaiserslautern such agreements will
    include the use of United States anthracite as the base load energy for
    municipal district heat to the United States Defense installations:
    Provided further, That at Landstuhl Army Regional Medical Center and
    Ramstein Air Base, furnished heat may be obtained from private, regional
    or municipal services, if provisions are included for the consideration
    of United States coal as an energy source.]
        Sec. [8076] 8043. None of the funds appropriated in title IV of this
    Act may be used to procure end-items for delivery to military forces for
    operational training, operational use or inventory requirements:
    Provided, That this restriction does not apply to end-items used in
    development, prototyping, and test activities preceding and leading to
    acceptance for operational use: Provided further, That this restriction
    does not apply to programs funded within the National Foreign
    Intelligence Program: Provided further, That the Secretary of Defense
    may waive this restriction on a case-by-case basis by certifying in
    writing to the Committees on Appropriations of the House of
    Representatives and the Senate that it is in the national security
    interest to do so.
        [Sec. 8077. None of the funds made available in this Act may be used
    to approve or license the sale of the F-22 advanced tactical fighter to
    any foreign government.]
        Sec. [8078] 8044. (a) The Secretary of Defense may, on a case-by-
    case basis, waive with respect to a foreign country each limitation on
    the procurement of defense items from foreign sources provided in law if
    the Secretary determines that the application of the limitation with
    respect to that country would invalidate cooperative programs entered
    into between the Department of Defense and the foreign country, or would
    invalidate reciprocal trade agreements for the procurement of defense
    items entered into under section 2531 of title 10, United States Code,
    and the country does not discriminate against the same or similar
    defense items produced in the United States for that country.
        (b) Subsection (a) applies with respect to--
            (1) contracts and subcontracts entered into on or after the date
        of the enactment of this Act; and
            (2) options for the procurement of items that are exercised
        after such date under contracts that are entered into before such
        date if the option prices are adjusted for any reason other than the
        application of a waiver granted under subsection (a).
        (c) Subsection (a) does not apply to a limitation regarding
    construction of public vessels, ball and roller bearings, food, and
    clothing or textile materials as defined by section 11 (chapters 50-65)
    of the Harmonized Tariff Schedule and products classified under headings
    4010, 4202, 4203, 6401 through 6406, 6505, 7019, 7218 through 7229,
    7304.41 through 7304.49, 7306.40, 7502 through 7508, 8105, 8108, 8109,
    8211, 8215, and 9404.
        [Sec. 8079. Funds made available to the Civil Air Patrol in this Act
    under the heading ``Drug Interdiction and Counter-Drug Activities,
    Defense'' may be used for the Civil Air Patrol Corporation's counterdrug
    program, including its demand reduction program involving youth
    programs, as well as operational and training drug reconnaissance
    missions for Federal, State, and local government agencies; and for
    equipment needed for mission support or performance: Provided, That the
    Department of the Air Force should waive reimbursement from the Federal,
    State, and local government agencies for the use of these funds.]
        Sec. [8080] 8045. (a) Prohibition.--None of the funds made available
    by this Act may be used to support any training program involving a unit
    of the security forces of a foreign country if the Secretary of Defense
    has received credible information from the Department of State that the
    unit has committed a gross violation of human rights, unless all
    necessary corrective steps have been taken.
        (b) Monitoring.--The Secretary of Defense, in consultation with the
    Secretary of State, shall ensure that prior to a decision to conduct any
    training program referred to in subsection (a), full consideration is
    given to all credible information available to the Department of State
    relating to human rights violations by foreign security forces.
        (c) Waiver.--The Secretary of Defense, after consultation with the
    Secretary of State, may waive the prohibition in subsection (a) if he
    determines that such waiver is required by extraordinary circumstances.
        (d) Report.--Not more than 15 days after the exercise of any waiver
    under subsection (c), the Secretary of Defense shall submit a report to
    the congressional defense committees describing the extraordinary
    circumstances, the purpose and duration of the training program, the
    United States forces and the foreign security forces involved in the
    training program, and the information relating to human rights
    violations that necessitates the waiver.
        Sec. [8081] 8046. The Secretary of Defense, in coordination with the
    Secretary of Health and Human Services, may carry out a program to
    distribute surplus dental equipment of the Department of Defense, at no
    cost to the Department of Defense, to Indian Health Service facilities
    and to federally-qualified health centers (within the meaning of section
    1905(l)(2)(B) of the Social Security Act (42 U.S.C. 1396d(l)(2)(B))).
        [Sec. 8082. The total amount appropriated in this Act is hereby
    reduced by $338,000,000 to reflect savings from favorable foreign
    currency fluctuations, to be derived as follows:
            ``Military Personnel, Army'', $80,000,000;
            ``Military Personnel, Navy'', $6,500,000;
            ``Military Personnel, Marine Corps'', $11,000,000;
            ``Military Personnel, Air Force'', $29,000,000;
            ``Operation and Maintenance, Army'', $102,000,000;
            ``Operation and Maintenance, Navy'', $21,500,000;
            ``Operation and Maintenance, Marine Corps'', $2,000,000;
            ``Operation and Maintenance, Air Force'', $46,000,000; and

    [[Page 312]]

            ``Operation and Maintenance, Defense-Wide'', $40,000,000.]
        [Sec. 8083. None of the funds appropriated or made available in this
    Act to the Department of the Navy shall be used to develop, lease or
    procure the T-AKE class of ships unless the main propulsion diesel
    engines and propulsors are manufactured in the United States by a
    domestically operated entity: Provided, That the Secretary of Defense
    may waive this restriction on a case-by-case basis by certifying in
    writing to the Committees on Appropriations of the House of
    Representatives and the Senate that adequate domestic supplies are not
    available to meet Department of Defense requirements on a timely basis
    and that such an acquisition must be made in order to acquire capability
    for national security purposes or there exists a significant cost or
    quality difference.]
        [Sec. 8084. None of the funds appropriated or otherwise made
    available by this or other Department of Defense Appropriations Acts may
    be obligated or expended for the purpose of performing repairs or
    maintenance to military family housing units of the Department of
    Defense, including areas in such military family housing units that may
    be used for the purpose of conducting official Department of Defense
    business.]
        [Sec. 8085. Notwithstanding any other provision of law, funds
    appropriated in this Act under the heading ``Research, Development, Test
    and Evaluation, Defense-Wide'' for any advanced concept technology
    demonstration project may only be obligated 30 days after a report,
    including a description of the project and its estimated annual and
    total cost, has been provided in writing to the congressional defense
    committees: Provided, That the Secretary of Defense may waive this
    restriction on a case-by-case basis by certifying to the congressional
    defense committees that it is in the national interest to do so.]
        [Sec. 8086. Notwithstanding any other provision of law, for the
    purpose of establishing all Department of Defense policies governing the
    provision of care provided by and financed under the military health
    care system's case management program under 10 U.S.C. 1079(a)(17), the
    term ``custodial care'' shall be defined as care designed essentially to
    assist an individual in meeting the activities of daily living and which
    does not require the supervision of trained medical, nursing,
    paramedical or other specially trained individuals: Provided, That the
    case management program shall provide that members and retired members
    of the military services, and their dependents and survivors, have
    access to all medically necessary health care through the health care
    delivery system of the military services regardless of the health care
    status of the person seeking the health care: Provided further, That the
    case management program shall be the primary obligor for payment of
    medically necessary services and shall not be considered as secondarily
    liable to title XIX of the Social Security Act, other welfare programs
    or charity based care.]
        Sec. [8087] 8047. During the current fiscal year, refunds
    attributable to the use of the Government travel card, refunds
    attributable to the use of the Government Purchase Card and refunds
    attributable to official Government travel arranged by Government
    Contracted Travel Management Centers may be credited to operation and
    maintenance accounts of the Department of Defense which are current when
    the refunds are received.
        Sec. [8088] 8048. (a) Registering Financial Management Information
    Technology Systems With DOD Chief Information Officer.--None of the
    funds appropriated in this Act may be used for a mission critical or
    mission essential financial management information technology system
    (including a system funded by the defense working capital fund) that is
    not registered with the Chief Information Officer of the Department of
    Defense. A system shall be considered to be registered with that officer
    upon the furnishing to that officer of notice of the system, together
    with such information concerning the system as the Secretary of Defense
    may prescribe. A financial management information technology system
    shall be considered a mission critical or mission essential information
    technology system as defined by the Under Secretary of Defense
    (Comptroller).
        (b) Certifications as to Compliance With Financial Management
    Modernization Plan.--
            (1) During the current fiscal year, a financial management
        [major] automated information system, a mixed information system
        supporting financial and non-financial systems, or a system
        improvement of more than $1,000,000 may not receive Milestone A
        approval, Milestone B approval, or full rate production, or their
        equivalent, within the Department of Defense until the Under
        Secretary of Defense (Comptroller) certifies, with respect to that
        milestone, that the system is being developed and managed in
        accordance with the Department's Financial Management Modernization
        Plan. The Under Secretary of Defense (Comptroller) may require
        additional certifications, as appropriate, with respect to any such
        system.
            (2) The Chief Information Officer shall provide the
        congressional defense committees timely notification of
        certifications under paragraph (1).
        (c) Certifications as to Compliance With Clinger-Cohen Act.--(1)
    During the current fiscal year, a major automated information system may
    not receive Milestone A approval, Milestone B approval, or full rate
    production approval, or their equivalent, within the Department of
    Defense until the Chief Information Officer certifies, with respect to
    that milestone, that the system is being developed in accordance with
    the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). The Chief
    Information Officer may require additional certifications, as
    appropriate, with respect to any such system.
        (2) The Chief Information Officer shall provide the congressional
    defense committees timely notification of certifications under paragraph
    (1). Each such notification shall include, at a minimum, the funding
    baseline and milestone schedule for each system covered by such a
    certification and confirmation that the following steps have been taken
    with respect to the system:
        (A) Business process reengineering.
        (B) An analysis of alternatives.
        (C) An economic analysis that includes a calculation of the return
    on investment.
        (D) Performance measures.
        (E) An information assurance strategy consistent with the
    Department's Global Information Grid.
        (d) Definitions.--For purposes of this section:
            (1) The term ``Chief Information Officer'' means the senior
        official of the Department of Defense designated by the Secretary of
        Defense pursuant to section 3506 of title 44, United States Code.
            (2) The term ``information technology system'' has the meaning
        given the term ``information technology'' in section 5002 of the
        Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
            [(3) The term ``major automated information system'' has the
        meaning given that term in Department of Defense Directive 5000.1.]
        [Sec. 8089. During the current fiscal year, none of the funds
    available to the Department of Defense may be used to provide support to
    another department or agency of the United States if such department or
    agency is more than 90 days in arrears in making payment to the
    Department of Defense for goods or services previously provided to such
    department or agency on a reimbursable basis: Provided, That this
    restriction shall not apply if the department is authorized by law to
    provide support to such department or agency on a nonreimbursable basis,
    and is providing the requested support pursuant to such authority:
    Provided further, That the Secretary of Defense may waive this
    restriction on a case-by-case basis by certifying in writing to the
    Committees on Appropriations of the House of Representatives and the
    Senate that it is in the national security interest to do so.]
        Sec. [8090] 8049. None of the funds provided in this Act may be used
    to transfer to any nongovernmental entity ammunition held by the
    Department of Defense that has a center-fire cartridge and a United
    States military nomenclature designation of ``armor penetrator'',
    ``armor piercing (AP)'', ``armor piercing incendiary (API)'', or
    ``armor-piercing incendiary-tracer (API-T)'', except to an entity
    performing demilitarization services for the Department of Defense under
    a contract that requires the entity to demonstrate to the satisfaction
    of the Department of Defense that armor piercing projectiles are either:
    (1) rendered incapable of reuse by the demilitarization process; or (2)
    used to manufacture ammunition pursuant to a contract with the
    Department of Defense or the manufacture of ammunition for export
    pursuant to a License for Permanent Export of Unclassified Military
    Articles issued by the Department of State.
        Sec. [8091] 8050. Notwithstanding any other provision of law, the
    Chief of the National Guard Bureau, or his designee, may waive payment
    of all or part of the consideration that otherwise would be required
    under 10 U.S.C. 2667, in the case of a lease of personal property for a
    period not in excess of 1 year to any organization specified in 32
    U.S.C. 508(d), or any other youth, social, or fraternal non-profit
    organization as may be approved by the Chief of the National Guard
    Bureau, or his designee, on a case-by-case basis.

    [[Page 313]]

        [Sec. 8092. None of the funds appropriated by this Act shall be used
    for the support of any nonappropriated funds activity of the Department
    of Defense that procures malt beverages and wine with nonappropriated
    funds for resale (including such alcoholic beverages sold by the drink)
    on a military installation located in the United States unless such malt
    beverages and wine are procured within that State, or in the case of the
    District of Columbia, within the District of Columbia, in which the
    military installation is located: Provided, That in a case in which the
    military installation is located in more than one State, purchases may
    be made in any State in which the installation is located: Provided
    further, That such local procurement requirements for malt beverages and
    wine shall apply to all alcoholic beverages only for military
    installations in States which are not contiguous with another State:
    Provided further, That alcoholic beverages other than wine and malt
    beverages, in contiguous States and the District of Columbia shall be
    procured from the most competitive source, price and other factors
    considered.]
        [Sec. 8093. During the current fiscal year and hereafter, under
    regulations prescribed by the Secretary of Defense, the Center of
    Excellence for Disaster Management and Humanitarian Assistance may also
    pay, or authorize payment for, the expenses of providing or facilitating
    education and training for appropriate military and civilian personnel
    of foreign countries in disaster management, peace operations, and
    humanitarian assistance.]
        [Sec. 8094. (a) The Department of Defense is authorized to enter
    into agreements with the Department of Veterans Affairs and federally-
    funded health agencies providing services to Native Hawaiians for the
    purpose of establishing a partnership similar to the Alaska Federal
    Health Care Partnership, in order to maximize Federal resources in the
    provision of health care services by federally-funded health agencies,
    applying telemedicine technologies. For the purpose of this partnership,
    Native Hawaiians shall have the same status as other Native Americans
    who are eligible for the health care services provided by the Indian
    Health Service.
        (b) The Department of Defense is authorized to develop a
    consultation policy, consistent with Executive Order No. 13084 (issued
    May 14, 1998), with Native Hawaiians for the purpose of assuring maximum
    Native Hawaiian participation in the direction and administration of
    governmental services so as to render those services more responsive to
    the needs of the Native Hawaiian community.
        (c) For purposes of this section, the term ``Native Hawaiian'' means
    any individual who is a descendant of the aboriginal people who, prior
    to 1778, occupied and exercised sovereignty in the area that now
    comprises the State of Hawaii.]

                         [(including transfer of funds)]

        [Sec. 8095. Of the amounts appropriated in this Act under the
    heading ``Research, Development, Test and Evaluation, Defense-Wide'',
    $136,000,000 shall be made available for the Arrow missile defense
    program: Provided, That of this amount, $66,000,000 shall be available
    for the purpose of continuing the Arrow System Improvement Program
    (ASIP), and $70,000,000 shall be available for the purpose of producing
    Arrow missile components in the United States and Arrow missile
    components and missiles in Israel to meet Israel's defense requirements,
    consistent with each nation's laws, regulations and procedures: Provided
    further, That funds made available under this provision for production
    of missiles and missile components may be transferred to appropriations
    available for the procurement of weapons and equipment, to be merged
    with and to be available for the same time period and the same purposes
    as the appropriation to which transferred: Provided further, That the
    transfer authority provided under this provision is in addition to any
    other transfer authority contained in this Act.]
        Sec. [8096] 8051. Funds available to the Department of Defense for
    the Global Positioning System during the current fiscal year may be used
    to fund civil requirements associated with the satellite and ground
    control segments of such system's modernization program.

                          (including transfer of funds)

        Sec. [8097] 8052. Of the amounts appropriated in this Act under the
    heading, ``[Operation and Maintenance] Research, Development, Test and
    Evaluation, Defense-Wide'', [$68,000,000] $48,000,000 shall remain
    available until expended: Provided, That notwithstanding any other
    provision of law, the Secretary of Defense is authorized to transfer
    such funds to other activities of the Federal Government.
        Sec. [8098] 8053. Section 8106 of the Department of Defense
    Appropriations Act, 1997 (titles I through VIII of the matter under
    subsection 101(b) of Public Law 104-208; 110 Stat. 3009-111; 10 U.S.C.
    113 note) shall continue in effect to apply to disbursements that are
    made by the Department of Defense in fiscal year [2003] 2004.
        [Sec. 8099. In addition to amounts provided in this Act, $1,700,000
    is hereby appropriated for ``Defense Health Program'', to remain
    available for obligation until expended: Provided, That notwithstanding
    any other provision of law, these funds shall be available only for a
    grant to the Fisher House Foundation, Inc., only for the construction
    and furnishing of additional Fisher Houses to meet the needs of military
    family members when confronted with the illness or hospitalization of an
    eligible military beneficiary.]
        [Sec. 8100. Notwithstanding any other provision of this Act, the
    total amount appropriated in this Act is hereby reduced by $850,000,000,
    to reflect savings to be achieved from business process reforms,
    management efficiencies, and procurement of administrative and
    management support, to be distributed as follows:
            ``Operation and Maintenance, Army'', $26,000,000;
            ``Operation and Maintenance, Navy'', $60,300,000;
            ``Operation and Maintenance, Marine Corps'', $8,400,000;
            ``Operation and Maintenance, Air Force'', $91,200,000;
            ``Operation and Maintenance, Defense-Wide'', $199,000,000;
            ``Operation and Maintenance, Army Reserve'', $5,900,000;
            ``Operation and Maintenance, Marine Corps Reserve'', $900,000;
            ``Operation and Maintenance, Air Force Reserve'', $1,000,000;
            ``Operation and Maintenance, Army National Guard'', $4,300,000;
            ``Operation and Maintenance, Air National Guard'', $2,600,000;
            ``Aircraft Procurement, Army'', $3,700,000;
            ``Missile Procurement, Army'', $1,100,000;
            ``Procurement of Weapons and Tracked Combat Vehicles, Army'',
        $3,100,000;
            ``Other Procurement, Army'', $17,700,000;
            ``Aircraft Procurement, Navy'', $22,800,000;
            ``Weapons Procurement, Navy'', $4,800,000;
            ``Procurement of Ammunition, Navy and Marine Corps'',
        $1,000,000;
            ``Shipbuilding and Conversion, Navy'', $15,700,000;
            ``Other Procurement, Navy'', $7,200,000;
            ``Procurement, Marine Corps'', $2,600,000;
            ``Aircraft Procurement, Air Force'', $9,700,000;
            ``Missile Procurement, Air Force'', $6,200,000;
            ``Other Procurement, Air Force'', $6,200,000;
            ``Procurement, Defense-Wide'', $1,200,000;
            ``Research, Development, Test and Evaluation, Army'',
        $23,500,000;
            ``Research, Development, Test and Evaluation, Navy'',
        $55,700,000;
            ``Research, Development, Test and Evaluation, Air Force'',
        $66,200,000;
            ``Research, Development, Test and Evaluation, Defense-Wide'',
        $154,000,000;
            ``Operational Test and Evaluation, Defense'', $5,000,000;
            ``National Defense Sealift Fund'', $1,000,000;
            ``Defense Health Program'', $12,000,000;
            ``Chemical Agents and Munitions Destruction, Army'',
        $20,000,000; and
            ``Drug Interdiction and Counter-Drug Activities, Defense'',
        $10,000,000:
    Provided, That these reductions shall be applied proportionally to each
    budget activity, activity group and subactivity group and each program,
    project, and activity within each appropriation account: Provided
    further, That none of the funds provided in this Act may be used for
    consulting and advisory services for legislative affairs and legislative
    liaison functions.]

                         [(including transfer of funds)]

        [Sec. 8101. Of the amounts appropriated in this Act under the
    heading ``Shipbuilding and Conversion, Navy'', $1,279,899,000 shall be
    available until September 30, 2003, to fund prior year shipbuilding cost
    increases: Provided, That upon enactment of this Act, the Secretary of
    the Navy shall transfer such funds to the following appropriations in
    the amounts specified: Provided further, That the amounts transferred
    shall be merged with and be available for the same purposes as the
    appropriations to which transferred:
            To:
                    Under the heading, ``Shipbuilding and Conversion, Navy,
                1996/03'':
        LPD-17 Amphibious Transport Dock Ship Program, $300,681,000;
                    Under the heading, ``Shipbuilding and Conversion, Navy,
                1998/03'':

    [[Page 314]]

        DDG-51 Destroyer Program, $76,100,000;
        New SSN, $190,882,000;
                    Under the heading, ``Shipbuilding and Conversion, Navy,
                1999/03'':
        DDG-51 Destroyer Program, $93,736,000;
        LPD-17 Amphibious Transport Dock Ship Program, $82,000,000;
        New SSN, $135,800,000;
                    Under the heading, ``Shipbuilding and Conversion, Navy,
                2000/03'':
        DDG-51 Destroyer Program, $51,724,000;
        LPD-17 Amphibious Transport Dock Ship Program, $187,000,000;
                    Under the heading, ``Shipbuilding and Conversion, Navy,
                2001/03'':
        DDG-51 Destroyer Program, $63,976,000; and
                    Under the heading, ``Shipbuilding and Conversion, Navy,
                2002/03'':
        DDG-51 Destroyer Program, $98,000,000.]
        Sec. [8102] 8054. The Secretary of the Navy may settle, or
    compromise, and pay any and all admiralty claims under 10 U.S.C. 7622
    arising out of the collision involving the U.S.S. GREENEVILLE and the
    EHIME MARU, in any amount and without regard to the monetary limitations
    in subsections (a) and (b) of that section: Provided, That such payments
    shall be made from funds available to the Department of the Navy for
    operation and maintenance.
        [Sec. 8103. The total amount appropriated in title II of this Act is
    hereby reduced by $97,000,000, to reflect savings attributable to
    improved supervision in determining appropriate purchases to be made
    using the Government purchase card, to be derived as follows:
            ``Operation and Maintenance, Army'', $24,000,000;
            ``Operation and Maintenance, Navy'', $29,000,000;
            ``Operation and Maintenance, Marine Corps'', $3,000,000;
            ``Operation and Maintenance, Air Force'', $27,000,000; and
            ``Operation and Maintenance, Defense-Wide'', $14,000,000.]
        [Sec. 8104. Funds provided for the current fiscal year or hereafter
    for Operation and maintenance for the Armed Forces may be used,
    notwithstanding any other provision of law, for the purchase of
    ultralightweight camouflage net systems as unit spares.]

                         [(including transfer of funds)]

        [Sec. 8105. During the current fiscal year and for fiscal years 2004
    and 2005, notwithstanding any other provision of law, the Secretary of
    Defense may transfer not more than $20,000,000 of unobligated balances
    remaining in a Research, Development, Test and Evaluation, Army
    appropriation account during the last fiscal year before the account
    closes under section 1552 of title 31 United States Code, to a current
    Research, Development, Test and Evaluation, Army appropriation account
    to be used only for the continuation of the Venture Capital Fund
    demonstration, as originally approved in Section 8150 of Public Law 107-
    117, to pursue high payoff technology and innovations in science and
    technology: Provided, That any such transfer shall be made not later
    than July 31 of each year: Provided further, That funds so transferred
    shall be merged with and shall be available for the same purposes and
    for the same time period as the appropriation to which transferred:
    Provided further, That the transfer authority provided in this section
    is in addition to any other transfer authority available to the
    Department of Defense: Provided further, That no funds for programs,
    projects, or activities designated as special congressional interest
    items in DD Form 1414 shall be eligible for transfer under the authority
    of this section: Provided further, That any unobligated balances
    transferred under this authority may be restored to the original
    appropriation if required to cover unexpected upward adjustments:
    Provided further, That the Secretary of the Army shall provide an annual
    report to the House and Senate Appropriations Committees no later than
    15 days prior to the annual transfer of funds under authority of this
    section describing the sources and amounts of funds proposed to be
    transfered, summarizing the projects funded under this demonstration
    program (including the name and location of project sponsors) to date, a
    description of the major program accomplishments to date, and an overall
    assessment of the benefits of this demonstration program compared to the
    goals expressed in the legislative history accompanying Section 8150 of
    Public Law 107-117.]
        Sec. [8106] 8055. Notwithstanding any other provision of law or
    regulation, the Secretary of Defense may exercise the provisions of 38
    U.S.C. 7403(g) for occupations listed in 38 U.S.C. 7403(a)(2) as well as
    the following:
            Pharmacists, Audiologists, and Dental Hygienists.
                    (A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall
                apply.
                    (B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall not
                apply.
        Sec. [8107] 8056. Funds appropriated by this Act, or made available
    by the transfer of funds in this Act, for intelligence activities are
    deemed to be specifically authorized by the Congress for purposes of
    section 504 of the National Security Act of 1947 (50 U.S.C. 414) during
    fiscal year [2003] 2004 until the enactment of the Intelligence
    Authorization Act for fiscal year [2003] 2004.
        [Sec. 8108. In addition to funds made available elsewhere in this
    Act $7,750,000 is hereby appropriated and shall remain available until
    expended to provide assistance, by grant or otherwise (such as, but not
    limited to, the provision of funds for repairs, maintenance,
    construction, and/or for the purchase of information technology, text
    books, teaching resources), to public schools that have unusually high
    concentrations of special needs military dependents enrolled: Provided,
    That in selecting school systems to receive such assistance, special
    consideration shall be given to school systems in States that are
    considered overseas assignments, and all schools within these school
    systems shall be eligible for assistance: Provided further, That up to
    $2,000,000 shall be available for the Department of Defense to establish
    a non-profit trust fund to assist in the public-private funding of
    public school repair and maintenance projects, or provide directly to
    non-profit organizations who in return will use these monies to provide
    assistance in the form of repair, maintenance, or renovation to public
    school systems that have high concentrations of special needs military
    dependents and are located in States that are considered overseas
    assignments, and of which 2 percent shall be available to support the
    administration and execution of the funds: Provided further, That to the
    extent a federal agency provides this assistance, by contract, grant, or
    otherwise, it may accept and expend non-federal funds in combination
    with these federal funds to provide assistance for the authorized
    purpose, if the non-federal entity requests such assistance and the non-
    federal funds are provided on a reimbursable basis: Provided further,
    That $2,750,000 shall be available for a grant to the Central Kitsap
    School District, Washington.]
        [Sec. 8109. Notwithstanding any other provision in this Act, the
    total amount appropriated in this Act is hereby reduced by $400,000,000,
    to reduce cost growth in information technology development, to be
    distributed as follows:
            ``Operation and Maintenance, Defense-Wide'', $19,500,000;
            ``Other Procurement, Army'', $53,200,000;
            ``Other Procurement, Navy'', $20,600,000;
            ``Procurement, Marine Corps'', $3,400,000;
            ``Other Procurement, Air Force'', $12,000,000;
            ``Procurement, Defense-Wide'', $3,500,000;
            ``Research, Development, Test and Evaluation, Army'',
        $17,700,000;
            ``Research, Development, Test and Evaluation, Navy'',
        $25,600,000;
            ``Research, Development, Test and Evaluation, Air Force'',
        $27,200,000;
            ``Research, Development, Test and Evaluation, Defense-Wide'',
        $36,600,000;
            ``Defense Working Capital Funds'', $148,600,000; and
            ``Defense Health Program'', $32,100,000:
    Provided, That these reductions shall be applied proportionally to each
    budget activity, activity group and subactivity group and each program,
    project, and activity within each appropriation account.]
        [Sec. 8110. Notwithstanding section 1116(c) of title 10, United
    States Code, payments into the Department of Defense Medicare-Eligible
    Retiree Health Care Fund for fiscal year 2003 under section 1116(a) of
    such title shall be made from funds available in this Act for the pay of
    military personnel.]
        Sec. [8111] 8057. None of the funds in this Act may be used to
    initiate a new start program without prior notification to the Office of
    Secretary of Defense and the congressional defense committees.
        [Sec. 8112. The amount appropriated in title II of this Act is
    hereby reduced by $120,000,000, to reflect Working Capital Fund cash
    balance and rate stabilization adjustments, to be derived as follows:
            ``Operation and Maintenance, Navy'', $120,000,000.]
        [Sec. 8113. Notwithstanding any other provision in this Act, the
    total amount appropriated in this Act is hereby reduced by $48,000,000,
    to reduce excess funded carryover, to be derived as follows:
            ``Operation and Maintenance, Army'', $48,000,000.]

    [[Page 315]]

        [Sec. 8114. Of the amounts appropriated in title II of this Act, not
    less than $1,000,000,000 is available for operations of the Department
    of Defense to prosecute the war on terrorism.]
        [Sec. 8115. (a) In addition to the amounts provided elsewhere in
    this Act, the amount of $3,400,000 is hereby appropriated to the
    Department of Defense for ``Operation and Maintenance, Army National
    Guard''. Such amount shall be made available to the Secretary of the
    Army only to make a grant in the amount of $3,400,000 to the entity
    specified in subsection (b) to facilitate access by veterans to
    opportunities for skilled employment in the construction industry.
        (b) The entity referred to in subsection (a) is the Center for
    Military Recruitment, Assessment and Veterans Employment, a nonprofit
    labor-management co-operation committee provided for by section
    302(c)(9) of the Labor-Management Relations Act, 1947 (29 U.S.C.
    186(c)(9)), for the purposes set forth in section 6(b) of the Labor
    Management Cooperation Act of 1978 (29 U.S.C. 175a note).]
        [Sec. 8116. (a) During the current fiscal year, funds available to
    the Secretary of a military department for Operation and Maintenance may
    be used for the purposes stated in subsection (b) to support chaplain-
    led programs to assist members of the Armed Forces and their immediate
    family members in building and maintaining a strong family structure.
        (b) The purposes referred to in subsection (a) are costs of
    transportation, food, lodging, supplies, fees, and training materials
    for members of the Armed Forces and their family members while
    participating in such programs, including participation at retreats and
    conferences.]
        [Sec. 8117. Section 8159 of the Department of Defense Appropriations
    Act, 2002 (division A of Public Law 107-117; 115 Stat. 2284), is revised
    as follows:
            (1) in subsection (c) by inserting at the end of paragraph (1)
        the following new sentence: ``Notwithstanding the provisions of
        Section 3324 of Title 31, United States Code, payment for the
        acquisition of leasehold interests under this section may be made
        for each annual term up to one year in advance.''.
            (2) by adding the following paragraph (g):
        ``(g) Notwithstanding any other provision of law, any payments
    required for a lease entered into under this Section, or any payments
    made pursuant to subsection (c)(3) above, may be made from
    appropriations available for operation and maintenance or for lease or
    procurement of aircraft at the time that the lease takes effect;
    appropriations available for operation and maintenance or for lease or
    procurement of aircraft at the time that the payment is due; or funds
    appropriated for those payments.''.]
        [Sec. 8118. (a) Limitation on Additional NMCI Contract Work
    Stations.--Notwithstanding section 814 of the Floyd D. Spence National
    Defense Authorization Act for Fiscal Year 2001 (as enacted into law by
    Public Law 106-398; 114 Stat. 1654A-215) or any other provision of law,
    the total number of work stations provided under the Navy-Marine Corps
    Intranet contract (as defined in subsection (i) of such section 814) may
    not exceed 160,000 work stations until the Under Secretary of Defense
    for Acquisition, Technology, and Logistics and the Chief Information
    Officer of the Department of Defense certify to the congressional
    defense committees that all of the conditions specified in subsection
    (b) have been satisfied.
        (b) Conditions.--The conditions referred to in subsection (a) are
    the following:
            (1) The Commander of the Navy Operational Test and Evaluation
        Force conducts an operational assessment of the work stations that
        have been fully transitioned to the Navy-Marine Corps Intranet, as
        defined in the Test and Evaluation Strategy Plan for the Navy-Marine
        Corps Intranet approved on September 4, 2002.
            (2) The results of the assessment are submitted to the Under
        Secretary of Defense for Acquisition, Technology, and Logistics and
        the Chief Information Officer of the Department of Defense, and they
        determine that the results of the assessment are acceptable.]
        [Sec. 8119. None of the funds in this Act, excluding funds provided
    for advance procurement of fiscal year 2004 aircraft, may be obligated
    for acquisition of more than 16 F-22 aircraft until the Under Secretary
    of Defense for Acquisition, Technology, and Logistics has provided to
    the congressional defense committees:
        (a) A formal risk assessment which identifies and characterizes the
    potential cost, technical, schedule or other significant risks resulting
    from increasing the F-22 procurement quantities prior to the conclusion
    of Dedicated Initial Operational Test and Evaluation (DIOT&E) of the
    aircraft: Provided, That such risk assessment shall evaluate, based on
    the best available current information: (1) the range of potential
    additional program costs (compared to the program costs assumed in the
    President's fiscal year 2003 budget) that could result from retrofit
    modifications to F-22 production aircraft that are placed under contract
    or delivered to the government prior to the conclusion of DIOT&E; and
    (2) a cost-benefit analysis comparing, in terms of unit cost and total
    program cost, the cost advantages of increasing aircraft production at
    this time to the potential cost of retrofitting production aircraft once
    DIOT&E has been completed; and
        (b) Certification that increasing the F-22 production quantity for
    fiscal year 2003 beyond 16 airplanes involves lower risk and lower total
    program cost than staying at that quantity, or he submits a revised
    production plan, funding plan and test schedule.]

                         [(including transfer of funds)]

        [Sec. 8120. Section 305(a) of the Emergency Supplemental Act, 2002
    (division B of Public Law 107-117; 115 Stat. 2300), is amended by adding
    at the end the following new sentences: ``From amounts transferred to
    the Pentagon Reservation Maintenance Revolving Fund pursuant to the
    preceding sentence, not to exceed $305,000,000 may be transferred to the
    Defense Emergency Response Fund, but only in amounts necessary to
    reimburse that fund (and the category of that fund designated as
    `Pentagon Repair/Upgrade') for expenses charged to that fund (and that
    category) between September 11, 2001, and February 19, 2002, for
    reconstruction costs of the Pentagon Reservation. Funds transferred to
    the Defense Emergency Response Fund pursuant to this section shall be
    available only for reconstruction, recovery, force protection, or
    security enhancements for the Pentagon Reservation.''.]
        [Sec. 8121. Financing and Fielding of Key Army Capabilities. The
    Department of Defense and the Department of the Army shall make future
    budgetary and programming plans to fully finance the Non-Line of Sight
    (NLOS) Objective Force cannon and resupply vehicle program in order to
    field this system in the 2008 timeframe. As an interim capability to
    enhance Army lethality, survivability, and mobility for light and medium
    forces before complete fielding of the Objective Force, the Army shall
    ensure that budgetary and programmatic plans will provide for no fewer
    than six Stryker Brigade Combat Teams to be fielded between 2003 and
    2008.]
        [Sec. 8122. (a) Management of Chemical Demilitarization Activities
    at Bluegrass Army Depot, Kentucky.--If a technology other than the
    baseline incineration program is selected for the destruction of lethal
    chemical munitions pursuant to section 142 of the Strom Thurmond
    National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
    261; 50 U.S.C. 1521 note), the program manager for the Assembled
    Chemical Weapons Assessment shall be responsible for management of the
    construction, operation, and closure, and any contracting relating
    thereto, of chemical demilitarization activities at Bluegrass Army
    Depot, Kentucky, including management of the pilot-scale facility phase
    of the alternative technology.
        (b) Management of Chemical Demilitarization Activities at Pueblo
    Depot, Colorado.--The program manager for the Assembled Chemical Weapons
    Assessment shall be responsible for management of the construction,
    operation, and closure, and any contracting relating thereto, of
    chemical demilitarization activities at Pueblo Army Depot, Colorado,
    including management of the pilot-scale facility phase of the
    alternative technology selected for the destruction of lethal chemical
    munitions.]
        [Sec. 8123. Of the total amount appropriated pursuant to this Act
    for any selected component of the Department of Defense that the
    Director of the Office of Management and Budget determines shall require
    audited financial statements under subsection (c) of section 3515 of
    title 31, United States Code, not more than 99 percent may be expended
    until the Inspector General of the Department of Defense certifies to
    the Congress of the United States that the head of the affected agency
    has made a formal decision as to whether to audit vouchers of the agency
    pursuant to section 3521(b) of title 31, United States Code: Provided,
    That such certification shall include a written assessment of the agency
    head's decision by the Inspector General.]
        [Sec. 8124. Of the funds made available under the heading
    ``Operation and Maintenance, Air Force'', $8,000,000 shall be available
    to realign railroad track on Elmendorf Air Force Base and Fort
    Richardson.]

                              [(transfer of funds)]

        [Sec. 8125. Upon enactment of this Act, the Secretary of the Navy
    shall make the following transfers of funds: Provided, That the amounts
    transferred shall be available for the same purpose as the

    [[Page 316]]

    appropriations to which transferred, and for the same time period as the
    appropriation from which transferred: Provided further, That the amounts
    shall be transferred between the following appropriations in the amount
    specified:
            From:
                    Under the heading, ``Shipbuilding and Conversion, Navy,
                1994/2003'':
        DDG-51 Destroyer program, $7,900,000;
        LHD-1 Amphibious Assault Ship program, $6,500,000;
        Oceanographic Ship program, $3,416,000;
        Craft, outfitting, post delivery, first destination transportation,
    $1,800,000;
        Mine warfare command and control ship, $604,000;
            To:
                    Under the heading, ``Shipbuilding and Conversion, Navy,
                1999/2003'':
        LPD-17 Amphibious Transport Dock Ship program, $20,220,000.]
        [Sec. 8126. Of the amounts appropriated in Public Law 107-206 under
    the heading ``Defense Emergency Response Fund'', an amount up to the
    fair market value of the leasehold interest in adjacent properties
    necessary for the force protection requirements of Tooele Army Depot,
    Utah, may be made available to resolve any property disputes associated
    with Tooele Army Depot, Utah, and to acquire such leasehold interest as
    required: Provided, That none of these funds may be used to acquire fee
    title to the properties.]
        [Sec. 8127. Up to $3,000,000 of the funds appropriated under the
    heading ``Operation and Maintenance, Navy'' in this Act for the Pacific
    Missile Range Facility may be made available to contract for the repair,
    maintenance, and operation of adjacent off-base water, drainage, and
    flood control systems critical to base operations.]
        [Sec. 8128. Of the total amount appropriated by this Act under the
    heading ``Operation and Maintenance, Defense-Wide'', $3,000,000 may be
    available for payments under section 363 of the Floyd D. Spence National
    Defense Authorization Act for Fiscal Year 2001 (as enacted into law by
    Public Law 106-398; 114 Stat. 1654A-77).]
        [Sec. 8129. In addition to the amounts appropriated or otherwise
    made available in this Act, $8,100,000, to remain available until
    September 30, 2003, is hereby appropriated to the Department of Defense:
    Provided, That the Secretary of Defense shall make grants in the amount
    of $2,800,000 to the American Red Cross for Armed Forces Emergency
    Services; $2,800,000 to the United Service Organizations, Incorporated;
    and $2,500,000 to the Intrepid Sea-Air-Space Foundation.]
        [Sec. 8130. None of the funds appropriated in this Act under the
    heading ``Overseas Contingency Operations Transfer Fund'' may be
    transferred or obligated for Department of Defense expenses not directly
    related to the conduct of overseas contingencies: Provided, That the
    Secretary of Defense shall submit a report no later than 30 days after
    the end of each fiscal quarter to the Committees on Appropriations of
    the Senate and House of Representatives that details any transfer of
    funds from the ``Overseas Contingency Operations Transfer Fund'':
    Provided further, That the report shall explain any transfer for the
    maintenance of real property, pay of civilian personnel, base operations
    support, and weapon, vehicle or equipment maintenance.]
        Sec. [8131] 8058. For purposes of section 1553(b) of title 31,
    United States Code, any subdivision of appropriations made in this Act
    under the heading ``Shipbuilding and Conversion, Navy'' shall be
    considered to be for the same purpose as any subdivision under the
    heading ``Shipbuilding and Conversion, Navy'' appropriations in any
    prior year, and the 1 percent limitation shall apply to the total amount
    of the appropriation.
        [Sec. 8132. The budget of the President for fiscal year 2004
    submitted to the Congress pursuant to section 1105 of title 31, United
    States Code, and each annual budget request thereafter, shall include
    separate budget justification documents for costs of United States Armed
    Forces' participation in contingency operations for the Military
    Personnel accounts, the Overseas Contingency Operations Transfer Fund,
    the Operation and Maintenance accounts, and the Procurement accounts:
    Provided, That these budget justification documents shall include a
    description of the funding requested for each anticipated contingency
    operation, for each military service, to include active duty and Guard
    and Reserve components, and for each appropriation account: Provided
    further, That these documents shall include estimated costs for each
    element of expense or object class, a reconciliation of increases and
    decreases for ongoing contingency operations, and programmatic data
    including, but not limited to troop strength for each active duty and
    Guard and Reserve component, and estimates of the major weapons systems
    deployed in support of each contingency: Provided further, That these
    documents shall include budget exhibits OP-5 and OP-32, as defined in
    the Department of Defense Financial Management Regulation, for the
    Overseas Contingency Operations Transfer Fund for fiscal years 2002 and
    2003.]
        [Sec. 8133. Notwithstanding any other provision in this Act, the
    total amount appropriated in this Act is hereby reduced by $59,260,000,
    to reduce cost growth in travel, to be distributed as follows:
            ``Operation and Maintenance, Army'', $14,000,000;
            ``Operation and Maintenance, Navy'', $9,000,000;
            ``Operation and Maintenance, Marine Corps'', $10,000,000;
            ``Operation and Maintenance, Air Force'', $15,000,000; and
            ``Operation and Maintenance, Defense-Wide'', $11,260,000.]
        [Sec. 8134. None of the funds in this Act may be used for research,
    development, test, evaluation, procurement or deployment of nuclear
    armed interceptors of a missile defense system.]

                            [(including rescissions)]

        [Sec. 8135. (a) The total amount appropriated or otherwise made
    available in titles II, III, and IV of this Act is hereby reduced by
    $1,374,000,000 to reflect revised economic assumptions: Provided, That
    the Secretary of Defense shall allocate this reduction proportionately
    to each budget activity, activity group, subactivity group, and each
    program, project, and activity within each applicable appropriation
    account: Provided further, That appropriations made available in this
    Act for the pay and benefits of military personnel are exempt from
    reductions under this provision.
        (b) Of the funds provided in the Department of Defense
    Appropriations Act, 2002, (division A of Public Law 107-117),
    $300,000,000 are rescinded from amounts made available under titles III
    and IV of that Act: Provided, That the Secretary of Defense shall
    allocate this rescission proportionately by program, project, and
    activity.]
        [Sec. 8136. During the current fiscal year, section 2533a(f) of
    Title 10, United States Code, shall not apply to any fish, shellfish, or
    seafood product. This section is applicable to contracts and
    subcontracts for the procurement of commercial items notwithstanding
    section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
    430).]
        [Sec. 8137. None of the funds appropriated by this Act may be used
    to convert the 939th Combat Search and Rescue Wing of the Air Force
    Reserve until the Secretary of the Air Force certifies to the Congress
    the following: (a) that a functionally comparable search and rescue
    capability is available in the 939th Search and Rescue Wing's area of
    responsibility; (b) that any new aircraft assigned to the unit will
    comply with local environmental and noise standards; and (c) that the
    Air Force has developed a plan for the transition of personnel and
    manpower billets currently assigned to this unit.]
        [Sec. 8138. Navy Dry-Dock AFDL-47 (a) Requirement for Sale.--
    Notwithstanding any other provision of law, the Secretary of the Navy
    shall sell the Navy Dry-dock AFDL-47, located in Charleston, South
    Carolina, to Detyens Shipyards, Inc., the current lessee of the dry-dock
    from the Navy.
        (b) Consideration.--As consideration for the sale of the dry-dock
    under subsection (a), the Secretary shall receive an amount equal to the
    fair market value of the dry-dock at the time of the sale, as determined
    by the Secretary, taking into account amounts paid by, or due and owing
    from, the lessee.]
        [Sec. 8139. From funds made available in this Act for the Office of
    Economic Adjustment under the heading ``Operation and Maintenance,
    Defense-Wide'', $100,000 shall be available for the elimination of
    asbestos at former Battery 204, Odiorne Point, New Hampshire.]
        [Sec. 8140. The Secretary of Defense may, using amounts appropriated
    or otherwise made available by this Act, make a grant to the National D-
    Day Museum in the amount of $3,000,000.]
        [Sec. 8141. (a) Preliminary Study and Analysis Required.--The
    Secretary of the Army shall carry out a preliminary engineering study
    and environmental analysis regarding the establishment of a connector
    road between United States Route 1 and Telegraph Road in the vicinity of
    Fort Belvoir, Virginia.
        (b) Funding.--Of the amount appropriated by title II under the
    heading ``Operation and Maintenance, Army'', up to $5,000,000 may be
    available for the preliminary study and analysis required by subsection
    (a).]
        [Sec. 8142. Of the amount appropriated by title V under the heading
    ``National Defense Sealift Fund'', up to $10,000,000 may be

    [[Page 317]]

    available for implementing the recommendations resulting from the Navy's
    Non-Self Deployable Watercraft (NDSW) Study and the Joint Chiefs of
    Staff Focused Logistics Study, which are to determine the requirements
    of the Navy for providing lift support for mine warfare ships and other
    vessels.]
        [Sec. 8143. (a) Congress finds that--
            (1) the Medal of Honor is the highest award for valor in action
        against an enemy force which can be bestowed upon an individual
        serving in the Armed Forces of the United States;
            (2) the Medal of Honor was established by Congress during the
        Civil War to recognize soldiers who had distinguished themselves by
        gallantry in action;
            (3) the Medal of Honor was conceived by Senator James Grimes of
        the State of Iowa in 1861; and
            (4) the Medal of Honor is the Nation's highest military honor,
        awarded for acts of personal bravery or self-sacrifice above and
        beyond the call of duty.
        (b)(1) Chapter 9 of title 36, United States Code, is amended by
    adding at the end the following new section:

                 ``Sec. 903. Designation of Medal of Honor Flag

        ``(a) Designation.--The Secretary of Defense shall design and
    designate a flag as the Medal of Honor Flag. In selecting the design for
    the flag, the Secretary shall consider designs submitted by the general
    public.
        ``(b) Presentation.--The Medal of Honor Flag shall be presented as
    specified in sections 3755, 6257, and 8755 of title 10 and section 505
    of title 14.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:
                ``903. Designation of Medal of Honor Flag.''.

        (c)(1)(A) Chapter 357 of title 10, United States Code, is amended by
    adding at the end the following new section:

        ``Sec. 3755. Medal of honor: presentation of Medal of Honor Flag

        ``The President shall provide for the presentation of the Medal of
    Honor Flag designated under section 903 of title 36 to each person to
    whom a medal of honor is awarded under section 3741 of this title after
    the date of the enactment of this section. Presentation of the flag
    shall be made at the same time as the presentation of the medal under
    section 3741 or 3752(a) of this title.''.
        (B) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:
                ``3755. Medal of honor: presentation of Medal of Honor
                        Flag.''.

        (2)(A) Chapter 567 of such title is amended by adding at the end the
    following new section:

        ``Sec. 6257. Medal of honor: presentation of Medal of Honor Flag

        ``The President shall provide for the presentation of the Medal of
    Honor Flag designated under section 903 of title 36 to each person to
    whom a medal of honor is awarded under section 6241 of this title after
    the date of the enactment of this section. Presentation of the flag
    shall be made at the same time as the presentation of the medal under
    section 6241 or 6250 of this title.''.
        (B) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:
                ``6257. Medal of honor: presentation of Medal of Honor
                        Flag.''.

        (3)(A) Chapter 857 of title 10, United States Code, is amended by
    adding at the end the following new section:

        ``Sec. 8755. Medal of honor: presentation of Medal of Honor Flag

        ``The President shall provide for the presentation of the Medal of
    Honor Flag designated under section 903 of title 36 to each person to
    whom a medal of honor is awarded under section 8741 of this title after
    the date of the enactment of this section. Presentation of the flag
    shall be made at the same time as the presentation of the medal under
    section 8741 or 8752(a) of this title.''.
        (B) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:
                ``8755. Medal of honor: presentation of Medal of Honor
                        Flag.''.

        (4)(A) Chapter 13 of title 14, United States Code, is amended by
    inserting after section 504 the following new section:

         ``Sec. 505. Medal of honor: presentation of Medal of Honor Flag

        ``The President shall provide for the presentation of the Medal of
    Honor Flag designated under section 903 of title 36 to each person to
    whom a medal of honor is awarded under section 491 of this title after
    the date of the enactment of this section. Presentation of the flag
    shall be made at the same time as the presentation of the medal under
    section 491 or 498 of this title.''.
        (B) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 504 the
    following new item:
                ``505. Medal of honor: presentation of Medal of Honor
                        Flag.''.

        (d) The President shall provide for the presentation of the Medal of
    Honor Flag designated under section 903 of title 36, United States Code,
    as added by subsection (b), to each person awarded the Medal of Honor
    before the date of enactment of this Act who is living as of that date.
    Such presentation shall be made as expeditiously as possible after the
    date of the designation of the Medal of Honor Flag by the Secretary of
    Defense under such section.]
        Sec. [8144] 8059. [(a) The conditions described in section 1305 of
    the National Defense Authorization Act for Fiscal Year 2000 (Public Law
    106-65; 22 U.S.C. 5952 note) shall not apply to the obligation and
    expenditure of funds for fiscal years 2000, 2001, 2002 and 2003 for the
    planning, design, or construction of a chemical weapons destruction
    facility in Russia if the President submits to Congress a written
    certification that includes--
            (1) a statement as to why waiving the conditions is important to
        the national security interests of the United States;
            (2) a full and complete justification for exercising this
        waiver; and
            (3) a plan to promote a full and accurate disclosure by Russia
        regarding the size, content, status, and location of its chemical
        weapons stockpile.
        (b) Expiration of Authority.--The authority under paragraph (a)
    shall expire on September 30, 2003.] (a) Section 1305 of the National
    Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 22
    U.S.C. 5952 note) is amended--
            (1) by inserting ``(a) Limitation--'' before ``No fiscal year'';
        and
            (2) by adding the following new subsection at the end:
        (b) Waiver.--(1) The limitation in subsection (a) shall not apply to
    funds appropriated for Cooperative Threat Reduction programs for a
    fiscal year if the President submits to the Speaker of the House of
    Representatives and the President pro tempore of the Senate a written
    certification that the waiver of the limitation in such fiscal year is
    important to the national security of the United States.
        (2) A certification under paragraph (1) for any fiscal year shall
    cover funds appropriated for Cooperative Threat Reduction programs for
    that fiscal year and all the preceding fiscal years beginning with
    fiscal year 2000.
        (3) A certification under paragraph (1) shall include a full and
    complete justification for the waiver of the limitation in subsection
    (a) for the fiscal year covered by the certification.
        [Sec. 8145. Effective as of August 2, 2002, the 2002 Supplemental
    Appropriations Act for Further Recovery From and Response To Terrorist
    Attacks on the United States (Public Law 107-206) is amended--
            (1) in section 305(a) (116 Stat. 840), by striking ``fiscal year
        2002'' and inserting ``fiscal years 2002 and 2003''; and
            (2) in section 309 (116 Stat. 841), by striking ``of'' after
        ``instead''.]
        [Sec. 8146. The Secretary of Defense may modify the grant made to
    the State of Maine pursuant to section 310 of the 2002 Supplemental
    Appropriations Act for Further Recovery From and Response To Terrorist
    Attacks on the United States (Public Law 107-206) such that the modified
    grant is for purposes of supporting community adjustment activities
    relating to the closure of the Naval Security Group Activity, Winter
    Harbor, Maine (the naval base on Schoodic Point, within Acadia National
    Park), and the reuse of such Activity, including reuse as a research and
    education center the activities of which may be consistent with the
    purposes of Acadia National Park, as determined by the Secretary of the
    Interior. The grant may be so modified not later than 60 days after the
    date of the enactment of this Act.]
        [Sec. 8147. None of the funds appropriated by this Act may be used
    for leasing of transport/VIP aircraft under any contract entered into
    under any procurement procedures other than pursuant to the Competition
    and Contracting Act.]

    [[Page 318]]

        [Sec. 8148. (a) Funds appropriated by title II under the heading
    ``Operation and Maintenance, Defense-Wide'' may be used by the Military
    Community and Family Policy Office of the Department of Defense for the
    operation of multidisciplinary, impartial domestic violence fatality
    review teams of the Department of Defense that operate on a confidential
    basis.
        (b) Of the total amount appropriated by title II under the heading
    ``Operation and Maintenance, Defense-Wide'', $5,000,000 may be used for
    an advocate of victims of domestic violence to provide confidential
    assistance to victims of domestic violence at military installations.
        (c) Not later than June 30, 2003, the Secretary of Defense shall
    submit to the Congress a report on the implementation of the
    recommendations included in the reports submitted to the Secretary by
    the Defense Task Force on Domestic Violence.]
        [Sec. 8149. (a) Limitation on Number of Government Charge Card
    Accounts during Fiscal Year 2003.--The total number of accounts for
    government purchase charge cards and government travel charge cards for
    Department of Defense personnel during fiscal year 2003 may not exceed
    1,500,000 accounts.
        (b) Requirement for Creditworthiness for Issuance of Government
    Charge Card.--(1) The Secretary of Defense shall evaluate the
    creditworthiness of an individual before issuing the individual a
    government purchase charge card or government travel charge card.
        (2) An individual may not be issued a government purchase charge
    card or government travel charge card if the individual is found not
    credit worthy as a result of the evaluation under paragraph (1).
        (c) Disciplinary Action for Misuse of Government Charge Card.--(1)
    The Secretary shall establish guidelines and procedures for disciplinary
    actions to be taken against Department personnel for improper,
    fraudulent, or abusive use of government purchase charge cards and
    government travel charge cards.
        (2) The guidelines and procedures under this subsection shall
    include appropriate disciplinary actions for use of charge cards for
    purposes, and at establishments, that are inconsistent with the official
    business of the Department or with applicable standards of conduct.
        (3) The disciplinary actions under this subsection may include--
            (A) the review of the security clearance of the individual
        involved; and
            (B) the modification or revocation of such security clearance in
        light of the review.
        (4) The guidelines and procedures under this subsection shall apply
    uniformly among the Armed Forces and among the elements of the
    Department.
        (d) Report.--Not later than June 30, 2003, the Secretary shall
    submit to the congressional defense committees a report on the
    implementation of the requirements and limitations in this section,
    including the guidelines and procedures established under subsection
    (c).]
        [Sec. 8150. Notwithstanding any provision of the Defense Base
    Closure and Realignment Act of 1990 (part A of title XXIX of Public Law
    101-510; 10 U.S.C. 2687 note) or any other provision of law, the
    Secretary of the Navy shall transfer administrative jurisdiction of the
    portion of the former Charleston Naval Base, South Carolina, comprising
    a law enforcement training facility of the Department of Justice,
    together with any improvements thereon, to the head of the department of
    the Federal Government having jurisdiction of the Border Patrol as of
    the date of the transfer under this section.]

             [TITLE IX--COMMERCIAL REUSABLE IN-SPACE TRANSPORTATION]

    [SEC. 901. SHORT TITLE.

        This title may be cited as the ``Commercial Reusable In-Space
    Transportation Act of 2002''.]

    [SEC. 902. FINDINGS.

        Congress makes the following findings:
            (1) It is in the national interest to encourage the production
        of cost-effective, in-space transportation systems, which would be
        built and operated by the private sector on a commercial basis.
            (2) The use of reusable in-space transportation systems will
        enhance performance levels of in-space operations, enhance efficient
        and safe disposal of satellites at the end of their useful lives,
        and increase the capability and reliability of existing ground-to-
        space launch vehicles.
            (3) Commercial reusable in-space transportation systems will
        enhance the economic well-being and national security of the United
        States by reducing space operations costs for commercial and
        national space programs and by adding new space capabilities to
        space operations.
            (4) Commercial reusable in-space transportation systems will
        provide new cost-effective space capabilities (including orbital
        transfers from low altitude orbits to high altitude orbits and
        return, the correction of erroneous satellite orbits, and the
        recovery, refurbishment, and refueling of satellites) and the
        provision of upper stage functions to increase ground-to-orbit
        launch vehicle payloads to geostationary and other high energy
        orbits.
            (5) Commercial reusable in-space transportation systems can
        enhance and enable the space exploration of the United States by
        providing lower cost trajectory injection from earth orbit, transit
        trajectory control, and planet arrival deceleration to support
        potential National Aeronautics and Space Administration missions to
        Mars, Pluto, and other planets.
            (6) Satellites stranded in erroneous earth orbit due to
        deficiencies in their launch represent substantial economic loss to
        the United States and present substantial concerns for the current
        backlog of national space assets.
            (7) Commercial reusable in-space transportation systems can
        provide new options for alternative planning approaches and risk
        management to enhance the mission assurance of national space
        assets.
            (8) Commercial reusable in-space transportation systems
        developed by the private sector can provide in-space transportation
        services to the National Aeronautics and Space Administration, the
        Department of Defense, the National Reconnaissance Office, and other
        agencies without the need for the United States to bear the cost of
        production of such systems.
            (9) The availability of loan guarantees, with the cost of credit
        risk to the United States paid by the private-sector, is an
        effective means by which the United States can help qualifying
        private-sector companies secure otherwise unattainable private
        financing for the production of commercial reusable in-space
        transportation systems, while at the same time minimizing Government
        commitment and involvement in the development of such systems.]

    [SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COMMERCIAL REUSABLE IN-
        SPACE TRANSPORTATION.

        (a) Authority To Make Loan Guarantees.--The Secretary may guarantee
    loans made to eligible United States commercial providers for purposes
    of producing commercial reusable in-space transportation services or
    systems.
        (b) Eligible United States Commercial Providers.--The Secretary
    shall prescribe requirements for the eligibility of United States
    commercial providers for loan guarantees under this section. Such
    requirements shall ensure that eligible providers are financially
    capable of undertaking a loan guaranteed under this section.
        (c) Limitation on Loans Guaranteed.--The Secretary may not guarantee
    a loan for a United States commercial provider under this section unless
    the Secretary determines that credit would not otherwise be reasonably
    available at the time of the guarantee for the commercial reusable in-
    space transportation service or system to be produced utilizing the
    proceeds of the loan.
        (d) Credit Subsidy.--
            (1) Collection required.--The Secretary shall collect from each
        United States commercial provider receiving a loan guarantee under
        this section an amount equal to the amount, as determined by the
        Secretary, to cover the cost, as defined in section 502(5) of the
        Federal Credit Reform Act of 1990, of the loan guarantee.
            (2) Periodic disbursements.--In the case of a loan guarantee in
        which proceeds of the loan are disbursed over time, the Secretary
        shall collect the amount required under this subsection on a pro
        rata basis, as determined by the Secretary, at the time of each
        disbursement.
        (e) Other Terms and Conditions.--
            (1) Prohibition on subordination.--A loan guaranteed under this
        section may not be subordinated to another debt contracted by the
        United States commercial provider concerned, or to any other claims
        against such provider.
            (2) Restriction on income.--A loan guaranteed under this section
        may not--
                    (A) provide income which is excluded from gross income
                for purposes of chapter 1 of the Internal Revenue Code of
                1986; or

    [[Page 319]]

                    (B) provide significant collateral or security, as
                determined by the Secretary, for other obligations the
                income from which is so excluded.
            (3) Treatment of guarantee.--The guarantee of a loan under this
        section shall be conclusive evidence of the following:
                    (A) That the guarantee has been properly obtained.
                    (B) That the loan qualifies for the guarantee.
                    (C) That, but for fraud or material misrepresentation by
                the holder of the loan, the guarantee is valid, legal, and
                enforceable.
            (4) Other terms and conditions.--The Secretary may establish any
        other terms and conditions for a guarantee of a loan under this
        section, as the Secretary considers appropriate to protect the
        financial interests of the United States.
        (f) Enforcement of Rights.--
            (1) In general.--The Attorney General may take any action the
        Attorney General considers appropriate to enforce any right accruing
        to the United States under a loan guarantee under this section.
            (2) Forbearance.--The Attorney General may, with the approval of
        the parties concerned, forebear from enforcing any right of the
        United States under a loan guaranteed under this section for the
        benefit of a United States commercial provider if such forbearance
        will not result in any cost, as defined in section 502(5) of the
        Federal Credit Reform Act of 1990, to the United States.
            (3) Utilization of property.--Notwithstanding any other
        provision of law and subject to the terms of a loan guaranteed under
        this section, upon the default of a United States commercial
        provider under the loan, the Secretary may, at the election of the
        Secretary--
                    (A) assume control of the physical asset financed by the
                loan; and
                    (B) complete, recondition, reconstruct, renovate,
                repair, maintain, operate, or sell the physical asset.
        (g) Credit Instruments.--
            (1) Authority to issue instruments.--Notwithstanding any other
        provision of law, the Secretary may, subject to such terms and
        conditions as the Secretary considers appropriate, issue credit
        instruments to United States commercial providers of in-space
        transportation services or system, with the aggregate cost (as
        determined under the provisions of the Federal Credit Reform Act of
        1990 (2 U.S.C. 661 et seq.)) of such instruments not to exceed
        $1,500,000,000, but only to the extent that new budget authority to
        cover such costs is provided in subsequent appropriations Acts or
        authority is otherwise provided in subsequent appropriations Acts.
            (2) Credit subsidy.--The Secretary shall provide a credit
        subsidy for any credit instrument issued under this subsection in
        accordance with the provisions of the Federal Credit Reform Act of
        1990.
            (3) Construction.--The eligibility of a United States commercial
        provider of in-space transportation services or systems for a credit
        instrument under this subsection is in addition to any eligibility
        of such provider for a loan guarantee under other provisions of this
        section.]

    [SEC. 904. DEFINITIONS.

        In this title:
            (1) Secretary.--The term ``Secretary'' means the Secretary of
        Defense.
            (2) Commercial provider.--The term ``commercial provider'' means
        any person or entity providing commercial reusable in-orbit space
        transportation services or systems, primary control of which is held
        by persons other than the Federal Government, a State or local
        government, or a foreign government.
            (3) In-space transportation services.--The term ``in-space
        transportation services'' means operations and activities involved
        in the direct transportation or attempted transportation of a
        payload or object from one orbit to another by means of an in-space
        transportation vehicle.
            (4) In-space transportation system.--The term ``in-space
        transportation system'' means the space and ground elements,
        including in-space transportation vehicles and support space
        systems, and ground administration and control facilities and
        associated equipment, necessary for the provision of in-space
        transportation services.
            (5) In-space transportation vehicle.--The term ``in-space
        transportation vehicle'' means a vehicle designed--
                    (A) to be based and operated in space;
                    (B) to transport various payloads or objects from one
                orbit to another orbit; and
                    (C) to be reusable and refueled in space.
            (6) United states commercial provider.--The term ``United States
        commercial provider'' means any commercial provider organized under
        the laws of the United States that is more than 50 percent owned by
        United States nationals.]
        Sec. 8060. Notwithstanding section 2465 of title 10 U.S.C., the
    Secretary of the Navy may use funds appropriated in title II of this Act
    under the heading, ``Operation and Maintenance, Navy,'' to liquidate the
    expenses incurred for private security guard services performed at the
    Naval Support Unit, Saratoga Springs, New York by Burns International
    Security Services, Albany, New York in the amount of $29,323.35, plus
    accrued interest, if any.
        Sec. 8061. Funds available to the Department of Defense under the
    heading, ``Research, Development, Test and Evaluation, Defense-Wide,''
    may be used to develop and field an initial set of missile defense
    capabilities, and such fielding shall be considered to be system
    development and demonstration for purposes of any law governing the
    development and production of a major defense acquisition program. The
    initial set of missile defense capabilities is defined as the ``Block
    04'' Ballistic Missile Defense system funded in fiscal years 2004 and
    2005. Subsequent blocks of missile defense capabilities shall be subject
    to existing laws governing development and production of major defense
    acquisition programs.
        Sec. 8062. Upon a determination by the Milestone Decision Authority
    that such action is necessary to continue development efforts when
    additional development of an acquisition program is needed before
    procurement can begin, up to $20,000,000 per acquisition program and up
    to a total $250,000,000 may be transferred from procurement P-1 line
    items of Acquisition Category I, II, III, and IV of a Procurement
    appropriation to the corresponding R-1 line items of a Research,
    Development, Test and Evaluation appropriation for the purpose of
    continuing development efforts: Provided, That upon a determination that
    all or part of the funds transferred under this section are not
    necessary for the purposes provided herein, such amounts may be
    transferred back to a Procurement appropriation for the purpose of
    beginning procurement of the acquisition program for which funds were
    transferred under this section.
        Sec. 8063. Of the amounts provided in title II of this Act under the
    heading, ``Operation and Maintenance, Defense-Wide,'' $20,000,000 is
    available for the Regional Defense Counter-terrorism Fellowship Program,
    to fund the education and training of foreign military officers,
    ministry of defense civilians, and other foreign security officials, to
    include United States military officers and civilian officials whose
    participation directly contributes to the education and training of
    these foreign students.
        Sec. 8064. (a) Section 1115(c) of title 10, United States Code, is
    amended by adding at the end the following new paragraph:
        ``(6) In determining single level dollar amounts in subparagraphs
    (1)(A) and (1)(B), the Secretary of Defense may, if the Secretary
    determines that it would produce a more accurate and appropriate
    actuarial valuation, determine a separate single level dollar amount
    under either or both subparagraphs for any individual participating
    uniformed service. If the Secretary makes any such determination, the
    Secretary (or in the case of a participating uniformed service under the
    jurisdiction of another administering Secretary, the administering
    Secretary concerned) shall make corresponding calculations under section
    1116(a) of this title for the contributions applicable to the affected
    uniformed services.''
        Sec. 8065. Section 721 of the Floyd D. Spence National Defense
    Authorization Act for fiscal year 2001 (as enacted into law by Public
    Law 106-398, and as amended by Public Law 107-107), is hereby repealed.
    (Department of Defense Appropriations Act, 2003.)

                    GENERAL PROVISIONS--MILITARY CONSTRUCTION

        Sec. 101. None of the funds appropriated in Military Construction
    Appropriations Acts shall be expended for payments under a cost-plus-a-
    fixed-fee contract for construction, where cost estimates exceed
    $25,000, to be performed within the United States, except Alaska,
    without the specific approval in writing of the Secretary of Defense
    setting forth the reasons therefor.
        Sec. 102. Funds appropriated to the Department of Defense for
    construction shall be available for hire of passenger motor vehicles.

    [[Page 320]]

        Sec. 103. Funds appropriated to the Department of Defense for
    construction may be used for advances to the Federal Highway
    Administration, Department of Transportation, for the construction of
    access roads as authorized by section 210 of title 23, United States
    Code, when projects authorized therein are certified as important to the
    national defense by the Secretary of Defense.
        Sec. 104. None of the funds appropriated in this Act may be used to
    begin construction of new bases inside the continental United States for
    which specific appropriations have not been made.
        Sec. 105. No part of the funds provided in Military Construction
    Appropriations Acts shall be used for purchase of land or land easements
    in excess of 100 percent of the value as determined by the Army Corps of
    Engineers or the Naval Facilities Engineering Command, except: (1) where
    there is a determination of value by a Federal court; (2) purchases
    negotiated by the Attorney General or his designee; (3) where the
    estimated value is less than $25,000; or (4) as otherwise determined by
    the Secretary of Defense to be in the public interest.
        Sec. 106. None of the funds appropriated in Military Construction
    Appropriations Acts shall be used to: (1) acquire land; (2) provide for
    site preparation; or (3) install utilities for any family housing,
    except housing for which funds have been made available in annual
    Military Construction Appropriations Acts.
        Sec. 107. None of the funds appropriated in Military Construction
    Appropriations Acts for minor construction may be used to transfer or
    relocate any activity from one base or installation to another, without
    prior notification to the Committees on Appropriations.
        Sec. 108. No part of the funds appropriated in Military Construction
    Appropriations Acts may be used for the procurement of steel for any
    construction project or activity for which American steel producers,
    fabricators, and manufacturers have been denied the opportunity to
    compete for such steel procurement.
        Sec. 109. None of the funds available to the Department of Defense
    for military construction or family housing during the current fiscal
    year may be used to pay real property taxes in any foreign nation.
        Sec. 110. None of the funds appropriated in Military Construction
    Appropriations Acts may be used to initiate a new installation overseas
    without prior notification to the Committees on Appropriations.
        [Sec. 111. None of the funds appropriated in Military Construction
    Appropriations Acts may be obligated for architect and engineer
    contracts estimated by the Government to exceed $500,000 for projects to
    be accomplished in Japan, in any NATO member country, or in countries
    bordering the Arabian Sea, unless such contracts are awarded to United
    States firms or United States firms in joint venture with host nation
    firms.]
        Sec. [112] 111. None of the funds appropriated in Military
    Construction Appropriations Acts for military construction in the United
    States territories and possessions in the Pacific and on Kwajalein
    Atoll, or in countries bordering the Arabian Sea, may be used to award
    any contract estimated by the Government to exceed $1,000,000 to a
    foreign contractor: Provided, That this section shall not be applicable
    to contract awards for which the lowest responsive and responsible bid
    of a United States contractor exceeds the lowest responsive and
    responsible bid of a foreign contractor by greater than 20 percent:
    Provided further, That this section shall not apply to contract awards
    for military construction on Kwajalein Atoll for which the lowest
    responsive and responsible bid is submitted by a Marshallese contractor.
        Sec. [113. The Secretary of Defense is to inform the appropriate
    committees of Congress, including the Committees on Appropriations, of
    the plans and scope of any proposed military exercise involving United
    States personnel 30 days prior to its occurring, if amounts expended for
    construction, either temporary or permanent, are anticipated to exceed
    $100,000.]
        Sec. [114] 112. Not more than 20 percent of the appropriations in
    Military Construction Appropriations Acts which are limited for
    obligation during the current fiscal year shall be obligated during the
    last 2 months of the fiscal year.

                               (transfer of funds)

        Sec. [115] 113. Funds appropriated to the Department of Defense for
    construction in prior years shall be available for construction
    authorized for each such military department by the authorizations
    enacted into law during the current session of Congress.
        Sec. [116] 114. For military construction or family housing projects
    that are being completed with funds otherwise expired or lapsed for
    obligation, expired or lapsed funds may be used to pay the cost of
    associated supervision, inspection, overhead, engineering and design on
    those projects and on subsequent claims, if any.
        Sec. [117] 115. Notwithstanding any other provision of law, any
    funds appropriated to a military department or defense agency for the
    construction of military projects may be obligated for a military
    construction project or contract, or for any portion of such a project
    or contract, at any time before the end of the fourth fiscal year after
    the fiscal year for which funds for such project were appropriated if
    the funds obligated for such project: (1) are obligated from funds
    available for military construction projects; and (2) do not exceed the
    amount appropriated for such project, plus any amount by which the cost
    of such project is increased pursuant to law.

                               (transfer of funds)

        Sec. [118] 116. During the 5-year period after appropriations
    available to the Department of Defense for military construction and
    family housing operation and maintenance and construction have expired
    for obligation, upon a determination that such appropriations will not
    be necessary for the liquidation of obligations or for making authorized
    adjustments to such appropriations for obligations incurred during the
    period of availability of such appropriations, unobligated balances of
    such appropriations may be transferred into the appropriation ``Foreign
    Currency Fluctuations, Construction, Defense'' to be merged with and to
    be available for the same time period and for the same purposes as the
    appropriation to which transferred.
        [Sec. 119. The Secretary of Defense is to provide the Committees on
    Appropriations of the Senate and the House of Representatives with an
    annual report by February 15, containing details of the specific actions
    proposed to be taken by the Department of Defense during the current
    fiscal year to encourage other member nations of the North Atlantic
    Treaty Organization, Japan, Korea, and United States allies bordering
    the Arabian Sea to assume a greater share of the common defense burden
    of such nations and the United States.]

                               (transfer of funds)

        Sec. [120] 117. During the current fiscal year, in addition to any
    other transfer authority available to the Department of Defense,
    proceeds deposited to the Department of Defense Base Closure Account
    established by section 207(a)(1) of the Defense Authorization Amendments
    and Base Closure and Realignment Act (Public Law 100-526) pursuant to
    section 207(a)(2)(C) of such Act, may be transferred to the account
    established by section 2906(a)(1) of the Department of Defense
    Authorization Act, 1991, to be merged with, and to be available for the
    same purposes and the same time period as that account.
        [Sec. 121. (a) No funds appropriated pursuant to this Act may be
    expended by an entity unless the entity agrees that in expending the
    assistance the entity will comply with sections 2 through 4 of the Act
    of March 3, 1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy
    American Act'').
        (b) No funds made available under this Act shall be made available
    to any person or entity who has been convicted of violating the Act of
    March 3, 1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy American
    Act'').]
        [Sec. 122. (a) In the case of any equipment or products that may be
    authorized to be purchased with financial assistance provided under this
    Act, it is the sense of the Congress that entities receiving such
    assistance should, in expending the assistance, purchase only American-
    made equipment and products.
        (b) In providing financial assistance under this Act, the Secretary
    of the Treasury shall provide to each recipient of the assistance a
    notice describing the statement made in subsection (a) by the Congress.]

                               (transfer of funds)

        Sec. [123] 118. Subject to 30 days prior notification to the
    Committees on Appropriations, such additional amounts as may be
    determined by the Secretary of Defense may be transferred to the
    Department of Defense Family Housing Improvement Fund from amounts
    appropriated for construction in ``Family Housing'' accounts, to be
    merged with and to be available for the same purposes and for the same
    period of time as amounts appropriated directly to the Fund: Provided,
    That appropriations made available to the Fund shall be available to
    cover the costs, as defined in section 502(5) of the Congressional
    Budget Act of 1974, of direct loans or loan guarantees issued by the
    Department of Defense pursuant to the provisions of subchapter IV of
    chapter 169, title 10, United States

    [[Page 321]]

    Code, pertaining to alternative means of acquiring and improving
    military family housing and supporting facilities.
        [Sec. 124. None of the funds appropriated or made available by this
    Act may be obligated for Partnership for Peace Programs in the New
    Independent States of the former Soviet Union.]
        [Sec. 125. (a) Not later than 60 days before issuing any
    solicitation for a contract with the private sector for military family
    housing the Secretary of the military department concerned shall submit
    to the congressional defense committees the notice described in
    subsection (b).
        (b)(1) A notice referred to in subsection (a) is a notice of any
    guarantee (including the making of mortgage or rental payments) proposed
    to be made by the Secretary to the private party under the contract
    involved in the event of--
            (A) the closure or realignment of the installation for which
        housing is provided under the contract;
            (B) a reduction in force of units stationed at such
        installation; or
            (C) the extended deployment overseas of units stationed at such
        installation.
        (2) Each notice under this subsection shall specify the nature of
    the guarantee involved and assess the extent and likelihood, if any, of
    the liability of the Federal Government with respect to the guarantee.
        (c) In this section, the term ``congressional defense committees''
    means the following:
            (1) The Committee on Armed Services and the Military
        Construction Subcommittee, Committee on Appropriations of the
        Senate.
            (2) The Committee on Armed Services and the Military
        Construction Subcommittee, Committee on Appropriations of the House
        of Representatives.]

                               (transfer of funds)

        Sec. [126] 119. During the current fiscal year, in addition to any
    other transfer authority available to the Department of Defense, amounts
    may be transferred from the account established by section 2906(a)(1) of
    the Department of Defense Authorization Act, 1991, to the fund
    established by section 1013(d) of the Demonstration Cities and
    Metropolitan Development Act of 1966 (42 U.S.C. 3374) to pay for
    expenses associated with the Homeowners Assistance Program. Any amounts
    transferred shall be merged with and be available for the same purposes
    and for the same time period as the fund to which transferred.
        Sec. [127] 120. Notwithstanding this or any other provision of law,
    funds appropriated in Military Construction Appropriations Acts for
    operations and maintenance of family housing shall be the exclusive
    source of funds for repair and maintenance of all family housing units,
    including general or flag officer quarters: Provided, That not more than
    $35,000 per unit may be spent annually for the maintenance and repair of
    any general or flag officer quarters without 30 days advance prior
    notification to the appropriate committees of Congress, except that [an
    after-the-fact notification shall be submitted if the limitation is
    exceeded solely due to costs associated with environmental remediation
    that could not be reasonably anticipated at the time of the budget
    submission: Provided further, That the Under Secretary of Defense
    (Comptroller) is to report annually to the Committees on Appropriations
    all operations and maintenance expenditures for each individual general
    or flag officer quarters for the prior fiscal year] costs identified in
    sections 2825(b)(3) and 2853(d)(2) of title 10, United States Code are
    not subject to such limitation: Provided further, That nothing herein
    precludes the Secretary concerned from using funds pursuant to 10 U.S.C.
    2601.
        [Sec. 128. Notwithstanding any other provision of law, the Secretary
    of the Navy is authorized to use funds received pursuant to section 2601
    of title 10, United States Code, for the construction, improvement,
    repair, and maintenance of the historic residences located at Marine
    Corps Barracks, 8th and I Streets, Washington, D.C.: Provided, That the
    Secretary notifies the appropriate committees of Congress 30 days in
    advance of the intended use of such funds: Provided further, That this
    section remains effective until September 30, 2004.]
        [Sec. 129. None of the funds made available in this Act may be
    transferred to any department, agency, or instrumentality of the United
    States Government, except pursuant to a transfer made by, or transfer
    authority provided in, this Act or any other appropriation Act].
        [Sec. 130. Amounts appropriated for a military construction project
    at Camp Kyle, Korea, relating to construction of a physical fitness
    center, as authorized by section 8160 of the Department of Defense
    Appropriations Act, 2000 (Public Law 106-79; 113 Stat. 1274), shall be
    available instead for a similar project at Camp Bonifas, Korea.]
        [Sec. 131. (a) Requests for Funds for Environmental Restoration at
    BRAC Sites in Future Fiscal Years.--In the budget justification
    materials submitted to Congress in support of the Department of Defense
    budget for any fiscal year after fiscal year 2003, the amount requested
    for environmental restoration, waste management, and environmental
    compliance activities in such fiscal year with respect to military
    installations approved for closure or realignment under the base closure
    laws shall accurately reflect the anticipated cost of such activities in
    such fiscal year.
        (b) Base Closure Laws Defined.--In this section, the term ``base
    closure laws'' means the following:
            (1) Section 2687 of title 10, United States Code.
            (2) The Defense Base Closure and Realignment Act of 1990 (part A
        of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
            (3) Title II of the Defense Authorization Amendments and Base
        Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687
        note).]
        Sec. 121. Such additional amounts as may be determined by the
    Secretary of Defense under subsection (b) of section 2883a of title 10,
    United States Code, may be transferred from appropriations available for
    support of military family housing for the armed force concerned to
    appropriations available for pay and allowances of military personnel of
    that same armed force, to be merged with and to be available for the
    same purposes and for the same period of time as the account to which
    transferred.
        Sec. 122. Of the amount appropriated under the heading ``Military
    Construction, Air Force'' in the Military Construction Appropriations
    Act, 2003 (Public Law 107-249), $15,000,000 may be transferred to the
    Department of the Interior, United States Fish and Wildlife Service, in
    complete satisfaction of the obligations of the Department of the Air
    Force under the provisions of section 3011(b)(5)(F) of the National
    Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65).
    (Military Construction Appropriations Act, 2003.)