[House Document 108-185]
[From the U.S. Government Publishing Office]



                                     

108th Congress, 2d Session - - - - - - - - - - - - House Document 108-185

 
                  REQUEST FOR FY 2005 BUDGET AMENDMENT

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

   REQUEST FOR AN FY 2005 BUDGET AMENDMENT TO ESTABLISH A CONTINGENT 
  EMERGENCY RESERVE FUND TO SUPPORT OPERATIONS IN IRAQ AND AFGHANISTAN




May 17, 2004.--Referred to the Committee on Appropriations and ordered 
                             to be printed
                                           The White House,
                                          Washington, May 12, 2004.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I ask the Congress to consider the 
enclosed FY 2005 budget amendment to establish a $25 billion 
contingent emergency reserve fund to support operations in Iraq 
and Afghanistan.
    Although we do not know the precise costs for operations 
next year, developments on the ground in Iraq indicate the need 
to plan for contingencies. We plan to pursue a full FY 2005 
supplemental request when we can better estimate precise costs. 
In the meantime, this reserve fund will ensure that our men and 
women in uniform continue to have the resources they need when 
they need them.
    I have pledged to our troops that they will have all the 
resources they need to accomplish this vital mission, and I 
urge the Congress to approve this reserve fund.
    The details of this proposal are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget.
            Sincerely,
                                                    George W. Bush.
    Enclosure.
                 Estimate No. 5, 108th Cong., 2d Sess.

                 Executive Office of the President,
                           Office of Management and Budget,
                                      Washington, DC, May 12, 2004.
The President,
The White House.
    Submitted for your consideration is a request for an FY 
2005 budget amendment to establish a $25 billion contingent 
emergency reserve fund to support operations in Iraq and 
Afghanistan.
    The Department of Defense developed this recommendation 
following discussions with our commanders in Iraq and 
Afghanistan. Developments on the ground and uncertainty when 
Congress would be in session to consider an FY 2005 
supplemental indicate that the availability of a reserve fund 
may be necessary to ensure there is no disruption in funding 
and resources for our armed forces.
    Following Congressional action, the contingent emergency 
reserve fund would be available only if you make a subsequent 
request designating all or some of these funds as an emergency 
and essential to operations in Iraq and Afghanistan. The funds 
would not be available for reconstruction activities. While the 
funds initially would be allocated into the Iraq Freedom Fund 
across the military services, the amendment would provide 
flexibility to transfer funds if necessary. The contingent 
emergency reserve fund would be available beginning in FY 2005. 
The Department believes it has the resources it needs for FY 
2004, assuming it has sufficient flexibility to transfer funds 
between accounts.
    The costs of continued operations over the next year cannot 
be estimated with precision at this time. The contingent 
emergency reserve fund would be accessed should there be a need 
for additional resources. We plan to submit a full supplemental 
request in early 2005 when the Department of Defense will have 
better information on required resources. Until then, the 
reserve fund will ensure that our troops will have the 
necessary resources when they need them. Funds spent from the 
reserve would reduce the cost of a full FY 2005 supplemental 
request.
Recommendation
    Attached for your consideration is legislative language 
that would establish this fund. We understand that both the 
House and the Senate Armed Services Committees have indicated 
an interest in authorizing this fund in their FY 2005 
Department of Defense Authorization bills. This legislative 
language could be adapted to authorize this fund.
    I have reviewed this proposal and am satisfied that it is 
necessary at this time. Therefore, I join the Secretary of 
Defense in recommending that you transmit the proposal to the 
Congress.
            Sincerely,
                                          Joshua B. Bolten,
                                                          Director.
    Enclosure.
                         DEPARTMENT OF DEFENSE


                           Iraq Freedom Fund


                      CONTINGENT EMERGENCY RESERVE

                     (INCLUDING TRANSFER OF FUNDS)

    For additional expenses, not otherwise provided for, 
necessary to support operations in Iraq or Afghanistan, 
$25,000,000,000, available October 1, 2005, and to remain 
available until expended: Provided, That the funds made 
available under this heading shall be available only to the 
extent that an official budget request for all or part of the 
funds is transmitted by the President to the Congress and 
includes designation of the amount of that request as an 
emergency and essential to support activities and agencies in 
Iraq or Afghanistan: Provided further, That funds made 
available under this heading, may be available for transfer for 
the following activities:
          Up to $14,000,000,000 for ``Operation and 
        Maintenance, Army'';
          Up to $1,000,000,000 for ``Operation and Maintenance, 
        Navy'';
          Up to $2,000,000,000 for ``Operation and Maintenance, 
        Marine Corps'';
          Up to $1,000,000,000 for ``Operation and Maintenance, 
        Air Force'';
          Up to $2,000,000,000 for ``Operation and Maintenance, 
        Defense-Wide'';
          Up to $5,000,000,000 may be used to reimburse other 
        appropriations or funds of the Department of Defense 
        and classified programs:
    Provided further, That in addition to the transfer 
authorized in the previous proviso, after consultation with the 
Director of the Office of Management and Budget, the Secretary 
of Defense may transfer the funds provided herein to any 
appropriation or fund of the Department of Defense or 
classified programs, to be merged with and available for the 
same purposes and for the same time period as the appropriation 
to which transferred: Provided further, the Secretary of 
Defense shall notify the Committees on Appropriations and the 
Authorizing Committees five days prior to the transfer of funds 
made available under the previous proviso: 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 available to the Department of 
Defense.
    This request for $25 billion for the Iraq Freedom Fund 
would provide the resources necessary to ensure there is no 
disruption in funding and resources for our armed forces. The 
funds would only be available to the Department of Defense and 
classified programs to support operations in Iraq and 
Afghanistan and would only be available if the President makes 
an emergency determination that additional resources are needed 
for essential war costs. Funds would be available for all 
service operation and maintenance accounts as well as emerging 
needs. The amendment provides flexibility to transfer funds 
across accounts and services if there is a need.

                                  
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