[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

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                (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.)