[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[House]
[Pages 26416-26435]
[From the U.S. Government Publishing Office, www.gpo.gov]




 CONFERENCE REPORT ON H.R. 3289, EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
  ACT FOR DEFENSE AND FOR THE RECONSTRUCTION OF IRAQ AND AFGHANISTAN, 
                                  2004

  Mr. YOUNG of Florida submitted the following conference report and 
statement on the bill (H.R. 3289) making emergency supplemental 
appropriations for defense and for the reconstruction of Iraq and 
Afghanistan for the fiscal year ending September 30, 2004, and for 
other purposes:

                  Conference Report (H. Rept. 108-337)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     3289) ``making emergency supplemental appropriations for 
     defense and for the reconstruction of Iraq and Afghanistan 
     for the fiscal year ending September 30, 2004, and for other 
     purposes'', having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2004, and for other purposes, namely:

                       TITLE I--NATIONAL SECURITY

                               CHAPTER 1

                    DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For an additional amount for ``Military Personnel, Army'', 
     $12,858,870,000.

                        Military Personnel, Navy

       For an additional amount for ``Military Personnel, Navy'', 
     $816,100,000.

                    Military Personnel, Marine Corps

       For an additional amount for ``Military Personnel, Marine 
     Corps'', $753,190,000.

                     Military Personnel, Air Force

       For an additional amount for ``Military Personnel, Air 
     Force'', $3,384,700,000.

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

       For an additional amount for ``Operation and Maintenance, 
     Army'', $23,997,064,000.

                    Operation and Maintenance, Navy


                     (including transfer of funds)

       For an additional amount for ``Operation and Maintenance, 
     Navy'', $1,956,258,000, of which up to $80,000,000 may be 
     transferred to the Department of Homeland Security for Coast 
     Guard Operations.

                Operation and Maintenance, Marine Corps

       For an additional amount for ``Operation and Maintenance, 
     Marine Corps'', $1,198,981,000.

                  Operation and Maintenance, Air Force

       For an additional amount for ``Operation and Maintenance, 
     Air Force'', $5,416,368,000.

                Operation and Maintenance, Defense-Wide

       For an additional amount for ``Operation and Maintenance, 
     Defense-Wide'', $4,355,452,000, of which--
       (1) not to exceed $15,000,000 may be used for the CINC 
     Initiative Fund account, to be used primarily in Iraq and 
     Afghanistan;
       (2) $32,000,000 is only for the Family Advocacy Program; 
     and
       (3) not to exceed $1,150,000,000, to remain available until 
     expended, may be used, notwithstanding any other provision of 
     law, for payments to reimburse Pakistan, Jordan, and other 
     key cooperating nations, for logistical and military support 
     provided, or to be provided, to United States military 
     operations in connection with military action in Iraq and the 
     global war on terrorism: Provided, That such payments may be 
     made in such amounts as the Secretary of Defense, with the 
     concurrence of the Secretary of State, and in consultation 
     with the Director of the Office of Management and Budget, may 
     determine, in his discretion, based on documentation 
     determined by the Secretary of Defense to adequately account 
     for the support provided, and such determination is final and 
     conclusive upon the accounting officers of the United States, 
     and 15 days following notification to the appropriate 
     congressional committees: Provided further, That the 
     Secretary of Defense shall provide quarterly reports to the 
     Committees on Appropriations on the use of these funds.

            Operation and Maintenance, Marine Corps Reserve

       For an additional amount for ``Operation and Maintenance, 
     Marine Corps Reserve'', $16,000,000.

              Operation and Maintenance, Air Force Reserve

       For an additional amount for ``Operation and Maintenance, 
     Air Force Reserve'', $53,000,000.

             Operation and Maintenance, Air National Guard

       For an additional amount for ``Operation and Maintenance, 
     Air National Guard'', $214,000,000.

             Overseas Humanitarian, Disaster, and Civic Aid

       For an additional amount for ``Overseas Humanitarian, 
     Disaster, and Civic Aid'', $35,500,000.

                           Iraq Freedom Fund


                     (including transfer of funds)

       For ``Iraq Freedom Fund'', $1,988,600,000, to remain 
     available for transfer until September 30, 2005, for the 
     purposes authorized under this heading in Public Law 108-11: 
     Provided, That the Secretary of Defense may transfer the 
     funds provided herein to appropriations for military 
     personnel; operation and maintenance; Overseas Humanitarian, 
     Disaster, and Civic Aid; procurement; military construction; 
     the Defense Health Program; and working capital funds: 
     Provided further, That funds transferred shall be merged with 
     and be available for the same purposes and for the same time 
     period as the appropriation or fund to which transferred: 
     Provided further, That this transfer authority is in addition 
     to any other transfer authority available to the Department 
     of Defense: 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 Secretary of Defense shall, not 
     fewer than 5 days prior to making transfers from this 
     appropriation, notify the congressional defense committees in 
     writing of the details of any such transfer: Provided 
     further, That the Secretary shall submit a report no later 
     than 30 days after the end of each fiscal quarter to the 
     congressional defense committees summarizing the details of 
     the transfer of funds from this appropriation: Provided 
     further, That not less than $62,100,000 shall be transferred 
     to ``Other Procurement, Army'' for the procurement of Up-
     armored High Mobility Multipurpose Wheeled Vehicles and 
     associated equipment: Provided further, That $10,000,000 
     shall be for the Family Readiness Program of the National 
     Guard.

                              PROCUREMENT

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For an additional amount for ``Procurement of Weapons and 
     Tracked Combat Vehicles,

[[Page 26417]]

     Army'', $101,600,000, to remain available until September 30, 
     2006.

                        Other Procurement, Army

       For an additional amount for ``Other Procurement, Army'', 
     $1,143,687,000, to remain available until September 30, 2006.

                       Aircraft Procurement, Navy

       For an additional amount for ``Aircraft Procurement, 
     Navy'', $158,600,000, to remain available until September 30, 
     2006.

                        Other Procurement, Navy

       For an additional amount for ``Other Procurement, Navy'', 
     $76,357,000, to remain available until September 30, 2006.

                       Procurement, Marine Corps

       For an additional amount for ``Procurement, Marine Corps'', 
     $123,397,000, to remain available until September 30, 2006.

                    Aircraft Procurement, Air Force

       For an additional amount for ``Aircraft Procurement, Air 
     Force'', $53,972,000, to remain available until September 30, 
     2006.

                     Missile Procurement, Air Force

       For an additional amount for ``Missile Procurement, Air 
     Force'', $20,450,000, to remain available until September 30, 
     2006.

                      Other Procurement, Air Force

       For an additional amount for ``Other Procurement, Air 
     Force'', $3,438,006,000, to remain available until September 
     30, 2006.

                       Procurement, Defense-Wide

       For an additional amount for ``Procurement, Defense-Wide'', 
     $418,635,000, to remain available until September 30, 2006.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Navy

       For an additional amount for ``Research, Development, Test 
     and Evaluation, Navy'', $34,000,000, to remain available 
     until September 30, 2005.

         Research, Development, Test and Evaluation, Air Force

       For an additional amount for ``Research, Development, Test 
     and Evaluation, Air Force'', $39,070,000, to remain available 
     until September 30, 2005.

        Research, Development, Test and Evaluation, Defense-Wide

       For an additional amount for ``Research, Development, Test 
     and Evaluation, Defense-Wide'', $260,817,000, to remain 
     available until September 30, 2005.

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For an additional amount for ``Defense Working Capital 
     Funds'', $600,000,000.

                     National Defense Sealift Fund

       For an additional amount for ``National Defense Sealift 
     Fund'', $24,000,000, to remain available until expended.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For an additional amount for ``Defense Health Program'', 
     $658,380,000 for Operation and maintenance.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)

       For an additional amount for ``Drug Interdiction and 
     Counter-Drug Activities, Defense'', $73,000,000: Provided, 
     That these funds may be used only for such activities related 
     to Afghanistan: Provided further, That the Secretary of 
     Defense may transfer the funds provided herein only to 
     appropriations for military personnel; operation and 
     maintenance; procurement; and research, development, test and 
     evaluation: Provided further, That the funds transferred 
     shall be merged with and 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 paragraph is in addition to any other 
     transfer authority available to the Department of Defense.

                            RELATED AGENCIES

               Intelligence Community Management Account


                     (including transfer of funds)

       For an additional amount for ``Intelligence Community 
     Management Account'', $21,500,000, to remain available until 
     September 30, 2005; of which $3,000,000 may be transferred to 
     and merged with the Department of Energy, ``Other Defense 
     Activities'', and $15,500,000 may be transferred to and 
     merged with the Federal Bureau of Investigation, ``Salaries 
     and Expenses''.

                    GENERAL PROVISIONS, THIS CHAPTER


                          (transfer of funds)

       Sec. 1101. Upon his determination that such action is 
     necessary in the national interest, the Secretary of Defense 
     may transfer between appropriations up to $3,000,000,000 of 
     the funds made available to the Department of Defense in this 
     chapter: Provided, That the Secretary shall notify the 
     Congress promptly of each transfer made pursuant to this 
     authority: 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 the authority in this section is subject to the 
     same terms and conditions as the authority provided in 
     section 8005 of the Department of Defense Appropriations Act, 
     2004, except for the fourth proviso.
       Sec. 1102. Funds appropriated in this Act, or made 
     available by the transfer of funds in or pursuant to 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).
       Sec. 1103. Sections 1318 and 1319 of the Emergency Wartime 
     Supplemental Appropriations Act, 2003 (Public Law 108-11; 117 
     Stat. 571), shall remain in effect during fiscal year 2004.
       Sec. 1104. From October 1, 2003, through September 30, 
     2004, (a) the rates of pay authorized by section 310(a) of 
     title 37, United States Code, shall be $225; and (b) the 
     rates of pay authorized by section 427(a)(1) of title 37, 
     United States Code, shall be $250.
       Sec. 1105. Defense Emergency Response Fund Close-Out 
     Authority.--(a) Section 1313 of the Emergency Wartime 
     Supplemental Appropriations Act, 2003 (Public Law 108-11; 117 
     Stat. 569), is amended by inserting ``unobligated'' before 
     ``balances''.
       (b) Effective November 1, 2003, adjustments to obligations 
     that before such date would have been properly chargeable to 
     the Defense Emergency Response Fund shall be charged to any 
     current appropriations account of the Department of Defense 
     available for the same purpose.
       Sec. 1106. During the current fiscal year, funds available 
     to the Department of Defense for operation and maintenance 
     may be used, notwithstanding any other provision of law, to 
     provide supplies, services, transportation, including airlift 
     and sealift, and other logistical support to coalition forces 
     supporting military and stability operations in Iraq: 
     Provided, That the Secretary of Defense shall provide 
     quarterly reports to the congressional defense committees 
     regarding support provided under this section.
       Sec. 1107. Notwithstanding any other provision of law, from 
     funds made available in this Act to the Department of Defense 
     under ``Operation and Maintenance, Defense-Wide'', not to 
     exceed $150,000,000 may be used by the Secretary of Defense, 
     with the concurrence of the Secretary of State, to provide 
     assistance only to the New Iraqi Army and the Afghan National 
     Army to enhance their capability to combat terrorism and to 
     support U.S. military operations in Iraq and Afghanistan: 
     Provided, That such assistance may include the provision of 
     equipment, supplies, services, training and funding: Provided 
     further, That the authority to provide assistance under this 
     section is in addition to any other authority to provide 
     assistance to foreign nations: Provided further, That the 
     Secretary of Defense shall notify the congressional defense 
     committees not less than 15 days before providing assistance 
     under the authority of this section.
       Sec. 1108. None of the funds provided in this chapter may 
     be used to finance programs or activities denied by Congress 
     in fiscal year 2004 appropriations to the Department of 
     Defense or to initiate a procurement or research, 
     development, test and evaluation new start program without 
     prior notification to the congressional defense committees.
       Sec. 1109. In addition to amounts made available elsewhere 
     in this Act, there is hereby appropriated to the Department 
     of Defense $313,000,000, to be used only for recovery and 
     repair of damage due to natural disasters including Hurricane 
     Isabel, to be distributed as follows:
       ``Operation and Maintenance, Army'', $47,100,000;
       ``Operation and Maintenance, Navy'', $87,600,000;
       ``Operation and Maintenance, Marine Corps'', $6,700,000;
       ``Operation and Maintenance, Air Force'', $169,300,000; and
       ``Other Procurement, Air Force'', $2,300,000.
       Sec. 1110. During the current fiscal year, from funds made 
     available in this Act to the Department of Defense for 
     operation and maintenance, not to exceed $180,000,000 may be 
     used, notwithstanding any other provision of law, to fund the 
     Commander's Emergency Response Program, established by the 
     Administrator of the Coalition Provisional Authority for the 
     purpose of enabling military commanders in Iraq to respond to 
     urgent humanitarian relief and reconstruction requirements 
     within their areas of responsibility by carrying out programs 
     that will immediately assist the Iraqi people, and to 
     establish and fund a similar program to assist the people of 
     Afghanistan: Provided, That the Secretary of Defense shall 
     provide quarterly reports, beginning on January 15, 2004, to 
     the congressional defense committees regarding the source of 
     funds and the allocation and use of funds made available 
     pursuant to the authority provided in this section.
       Sec. 1111. Not later than 30 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the congressional defense committees a report describing 
     an Analysis of Alternatives for replacing the capabilities of 
     the existing Air Force fleet of KC-135 tanker aircraft.


enhancements to exemption for members with combat-related injuries from 
   requirement for payment of subsistence charges while hospitalized

       Sec. 1112. (a) Exemption Made Permanent.--Subsection (c) of 
     section 1075 of title 10, United States Code (as added by 
     section 8146(a)(2) of the Department of Defense 
     Appropriations Act, 2004 (Public Law 108-87)), is repealed.
       (b) Retroactivity.--Subsection (b) of section 8146 of the 
     Department of Defense Appropriations Act, 2004 (Public Law 
     108-87), is amended to read as follows:

[[Page 26418]]

       ``(b) Effective Date.--(1) Subsection (b)(2) of section 
     1075 of title 10, United States Code, as added by subsection 
     (a), shall apply with respect to any period of 
     hospitalization on or after September 11, 2001, because of an 
     injury covered by that subsection that is incurred on or 
     after that date.
       ``(2) The Secretary concerned (as defined in section 101 of 
     title 37, United States Code) shall take such action as 
     necessary to implement paragraph (1), including--
       ``(A) refunding any amount previously paid under section 
     1075 of title 10, United States Code, by a person who, by 
     reason of paragraph (1), is not required to make such 
     payment; and
       ``(B) waiving recovery of any unpaid amount for which a 
     person has previously been charged under that section and 
     which that person, by reason of paragraph (1), is not 
     required to pay.''.
       Sec. 1113. None of the funds available to the Department of 
     Defense may be obligated to implement any action which alters 
     the command responsibility or permanent assignment of forces 
     until 270 days after such plan has been provided to the 
     congressional defense committees.
       Sec. 1114. Section 1074a of title 10, United States Code, 
     is amended by adding at the end the following new subsection:
       ``(f)(1) At any time after the Secretary concerned notifies 
     members of the Ready Reserve that the members are to be 
     called or ordered to active duty, the administering 
     Secretaries may provide to each such member any medical and 
     dental screening and care that is necessary to ensure that 
     the member meets the applicable medical and dental standards 
     for deployment.
       ``(2) The Secretary concerned shall promptly transmit to 
     each member of the Ready Reserve eligible for screening and 
     care under this subsection a notification of eligibility for 
     such screening and care.
       ``(3) A member provided medical or dental screening or care 
     under paragraph (1) may not be charged for the screening or 
     care.
       ``(4) Screening and care may not be provided under this 
     section after September 30, 2004.''.
       Sec. 1115. (a) Chapter 55 of title 10, United States Code, 
     is amended by inserting after section 1076a the following new 
     section:

     ``Sec. 1076b. TRICARE program: coverage for members of the 
       Ready Reserve

       ``(a) Eligibility.--Each member of the Selected Reserve of 
     the Ready Reserve and each member of the Individual Ready 
     Reserve described in section 10144(b) of this title is 
     eligible, subject to subsection (h), to enroll in TRICARE and 
     receive benefits under such enrollment for any period that 
     the member--
       ``(1) is an eligible unemployment compensation recipient; 
     or
       ``(2) is not eligible for health care benefits under an 
     employer-sponsored health benefits plan.
       ``(b) Types of Coverage.--(1) A member eligible under 
     subsection (a) may enroll for either of the following types 
     of coverage:
       ``(A) Self alone coverage.
       ``(B) Self and family coverage.
       ``(2) An enrollment by a member for self and family covers 
     the member and the dependents of the member who are described 
     in subparagraph (A), (D), or (I) of section 1072(2) of this 
     title.
       ``(c) Open Enrollment Periods.--The Secretary of Defense 
     shall provide for at least one open enrollment period each 
     year. During an open enrollment period, a member eligible 
     under subsection (a) may enroll in the TRICARE program or 
     change or terminate an enrollment in the TRICARE program.
       ``(d) Scope of Care.--(1) A member and the dependents of a 
     member enrolled in the TRICARE program under this section 
     shall be entitled to the same benefits under this chapter as 
     a member of the uniformed services on active duty or a 
     dependent of such a member, respectively.
       ``(2) Section 1074(c) of this title shall apply with 
     respect to a member enrolled in the TRICARE program under 
     this section.
       ``(e) Premiums.--(1) The Secretary of Defense shall charge 
     premiums for coverage pursuant to enrollments under this 
     section. The Secretary shall prescribe for each of the 
     TRICARE program options a premium for self alone coverage and 
     a premium for self and family coverage.
       ``(2) The monthly amount of the premium in effect for a 
     month for a type of coverage under this section shall be the 
     amount equal to 28 percent of the total amount determined by 
     the Secretary on an appropriate actuarial basis as being 
     reasonable for the coverage.
       ``(3) The premiums payable by a member under this 
     subsection may be deducted and withheld from basic pay 
     payable to the member under section 204 of title 37 or from 
     compensation payable to the member under section 206 of such 
     title. The Secretary shall prescribe the requirements and 
     procedures applicable to the payment of premiums by members 
     not entitled to such basic pay or compensation.
       ``(4) Amounts collected as premiums under this subsection 
     shall be credited to the appropriation available for the 
     Defense Health Program Account under section 1100 of this 
     title, shall be merged with sums in such Account that are 
     available for the fiscal year in which collected, and shall 
     be available under subparagraph (B) of such section for such 
     fiscal year.
       ``(f) Other Charges.--A person who receives health care 
     pursuant to an enrollment in a TRICARE program option under 
     this section, including a member who receives such health 
     care, shall be subject to the same deductibles, copayments, 
     and other nonpremium charges for health care as apply under 
     this chapter for health care provided under the same TRICARE 
     program option to dependents described in subparagraph (A), 
     (D), or (I) of section 1072(2) of this title.
       ``(g) Termination of Enrollment.--(1) A member enrolled in 
     the TRICARE program under this section may terminate the 
     enrollment only during an open enrollment period provided 
     under subsection (c), except as provided in subsection (h).
       ``(2) An enrollment of a member for self alone or for self 
     and family under this section shall terminate on the first 
     day of the first month beginning after the date on which the 
     member ceases to be eligible under subsection (a).
       ``(3) The enrollment of a member under this section may be 
     terminated on the basis of failure to pay the premium charged 
     the member under this section.
       ``(h) Relationship to Transition TRICARE Coverage Upon 
     Separation From Active Duty.--(1) A member may not enroll in 
     the TRICARE program under this section while entitled to 
     transitional health care under subsection (a) of section 1145 
     of this title or while authorized to receive health care 
     under subsection (c) of such section.
       ``(2) A member who enrolls in the TRICARE program under 
     this section within 90 days after the date of the termination 
     of the member's entitlement or eligibility to receive health 
     care under subsection (a) or (c) of section 1145 of this 
     title may terminate the enrollment at any time within one 
     year after the date of the enrollment.
       ``(i) Certification of Noncoverage by Other Health Benefits 
     Plan.--The Secretary of Defense may require a member to 
     submit any certification that the Secretary considers 
     appropriate to substantiate the member's assertion that the 
     member is not covered for health care benefits under any 
     other health benefits plan.
       ``(j) Eligible Unemployment Compensation Recipient 
     Defined.--In this section, the term `eligible unemployment 
     compensation recipient' means, with respect to any month, any 
     individual who is determined eligible for any day of such 
     month for unemployment compensation under State law (as 
     defined in section 205(9) of the Federal-State Extended 
     Unemployment Compensation Act of 1970), including Federal 
     unemployment compensation laws administered through the 
     State.
       ``(k) Regulations.--The Secretary of Defense, in 
     consultation with the other administering Secretaries, shall 
     prescribe regulations for the administration of this section.
       ``(l) Termination of Authority.--An enrollment in TRICARE 
     under this section may not continue after September 30, 
     2004.''.
       (b) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1076a the following new item:

``1076b. TRICARE program: coverage for members of the Ready Reserve.''.

       Sec. 1116. Section 1074 of title 10, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(d)(1) For the purposes of this chapter, a member of a 
     reserve component of the armed forces who is issued a 
     delayed-effective-date active-duty order, or is covered by 
     such an order, shall be treated as being on active duty for a 
     period of more than 30 days beginning on the later of the 
     date that is--
       ``(A) the date of the issuance of such order; or
       ``(B) 90 days before date on which the period of active 
     duty is to commence under such order for that member.
       ``(2) In this subsection, the term `delayed-effective-date 
     active-duty order' means an order to active duty for a period 
     of more than 30 days in support of a contingency operation 
     under a provision of law referred to in section 101(a)(13)(B) 
     of this title that provides for active-duty service to begin 
     under such order on a date after the date of the issuance of 
     the order.
       ``(3) This section shall cease to be effective on September 
     30, 2004.''.
       Sec. 1117. (a) Subject to subsection (b), during the period 
     beginning on the date of the enactment of this Act and ending 
     on September 30, 2004, section 1145(a) of title 10, United 
     States Code, shall be administered by substituting for 
     paragraph (3) the following:
       ``(3) Transitional health care for a member under 
     subsection (a) shall be available for 180 days beginning on 
     the date on which the member is separated from active 
     duty.''.
       (b)(1) Subsection (a) shall apply with respect to 
     separations from active duty that take effect on or after the 
     date of the enactment of this Act.
       (2) Beginning on October 1, 2004, the period for which a 
     member is provided transitional health care benefits under 
     section 1145(a) of title 10, United States Code, shall be 
     adjusted as necessary to comply with the limits provided 
     under paragraph (3) of such section.
       Sec. 1118. (a) At the time members of reserve components of 
     the Armed Forces are called or ordered to active duty under 
     Section 12302(a) of title 10, United States Code, each member 
     shall be notified in writing of the expected period during 
     which the member will be mobilized.
       (b) The Secretary of Defense may waive the requirements of 
     subsection (a) in any case in which the Secretary determines 
     that it is necessary to do so to respond to a national 
     security emergency or to meet dire operational requirements 
     of the Armed Forces.
       Sec. 1119. The authority to utilize funds appropriated for 
     fiscal year 2003 for purposes provided by the first clause of 
     section 1314(1) of Public Law 108-11, shall apply to the 
     utilization of available funds appropriated for fiscal year 
     2004 for such purposes.

[[Page 26419]]

       Sec. 1120. (a) Not later than April 30 and October 31 of 
     each year, the Secretary of Defense shall submit to Congress 
     a report on the military operations of the Armed Forces and 
     the reconstruction activities of the Department of Defense in 
     Iraq and Afghanistan.
       (b) Each report shall include the following information:
       (1) For each of Iraq and Afghanistan for the half-fiscal 
     year ending during the month preceding the due date of the 
     report, the amount expended for military operations of the 
     Armed Forces and the amount expended for reconstruction 
     activities, together with the cumulative total amounts 
     expended for such operations and activities.
       (2) An assessment of the progress made toward preventing 
     attacks on United States personnel.
       (3) An assessment of the effects of the operations and 
     activities in Iraq and Afghanistan on the readiness of the 
     Armed Forces.
       (4) An assessment of the effects of the operations and 
     activities in Iraq and Afghanistan on the recruitment and 
     retention of personnel for the Armed Forces.
       (5) For the half-fiscal year ending during the month 
     preceding the due date of the report, the costs incurred for 
     repair of Department of Defense equipment used in the 
     operations and activities in Iraq and Afghanistan.
       (6) The foreign countries, international organizations, and 
     nongovernmental organizations that are contributing support 
     for the ongoing military operations and reconstruction 
     activities, together with a discussion of the amount and 
     types of support contributed by each during the half-fiscal 
     year ending during the month preceding the due date of the 
     report.
       (7) The extent to which, and the schedule on which, the 
     Selected Reserve of the Ready Reserve of the Armed Forces is 
     being involuntarily ordered to active duty under section 
     12304 of title 10, United States Code.
       (8) For each unit of the National Guard of the United 
     States and the other reserve components of the Armed Forces 
     on active duty pursuant to an order to active duty under 
     section 12304 of title 10, United States Code, the following 
     information:
       (A) The unit.
       (B) The projected date of return of the unit to its home 
     station.
       (C) The extent (by percentage) to which the forces deployed 
     within the United States and outside the United States in 
     support of a contingency operation are composed of reserve 
     component forces.
       Sec. 1121. In addition to amounts made available elsewhere 
     in this Act, there is hereby appropriated to the Department 
     of Defense $100,000,000, for ``Operation and Maintenance, 
     Army'': Provided, That these funds are available only for the 
     purpose of securing and destroying conventional munitions in 
     Iraq, such as bombs, bomb materials, small arms, rocket 
     propelled grenades, and shoulder-launched missiles.

                               CHAPTER 2

                    DEPARTMENT OF HOMELAND SECURITY

                       United States Coast Guard


                           Operating Expenses

       For an additional amount for ``Operating Expenses'', 
     $23,183,000, for costs related to Hurricane Isabel damage.

                  Emergency Preparedness and Response


                            disaster relief

       For an additional amount for ``Disaster Relief'', 
     $500,000,000, to remain available until expended.

                    GENERAL PROVISION, THIS CHAPTER

       Sec. 1201. Effective upon the enactment of the Project 
     BioShield Act of 2003, the Department of Homeland Security 
     Appropriations Act, 2004 (Public Law 108-90) is amended under 
     the heading ``Biodefense Countermeasures'' by striking 
     ``securing medical countermeasures against biological terror 
     attacks'' and inserting the following: ``procuring security 
     countermeasures under section 319F-2(c) of the Public Health 
     Service Act, as authorized under section 510(a) of the 
     Homeland Security Act of 2002''.

                               CHAPTER 3

                         MILITARY CONSTRUCTION

                      Military Construction, Army

       For an additional amount for ``Military Construction, 
     Army'', $162,100,000, to remain available until September 30, 
     2008: Provided, That notwithstanding any other provision of 
     law, such funds may be obligated or expended to carry out 
     planning and design and military construction projects not 
     otherwise authorized by law.

                      Military Construction, Navy

       For an additional amount for ``Military Construction, 
     Navy'', $45,530,000, to remain available until September 30, 
     2008: Provided, That notwithstanding any other provision of 
     law, such funds may be obligated or expended to carry out 
     military construction projects not otherwise authorized by 
     law.

                    Military Construction, Air Force

       For an additional amount for ``Military Construction, Air 
     Force'', $292,550,000, to remain available until September 
     30, 2008: Provided, That notwithstanding any other provision 
     of law, such funds may be obligated or expended to carry out 
     planning and design and military construction projects not 
     otherwise authorized by law.

             Family Housing Operation and Maintenance, Army

       For an additional amount for ``Family Housing Operation and 
     Maintenance, Army'', $11,420,000.

    Family Housing Operation and Maintenance, Navy and Marine Corps

       For an additional amount for ``Family Housing Operation and 
     Maintenance, Navy and Marine Corps'', $6,280,000.

          Family Housing Operation and Maintenance, Air Force

       For an additional amount for ``Family Housing Operation and 
     Maintenance, Air Force'', $6,981,000.

                    GENERAL PROVISION, THIS CHAPTER

       Sec. 1301. (a) Temporary Authority To Use Operation and 
     Maintenance Funds for Military Construction Projects.--During 
     fiscal year 2004, the Secretary of Defense may use this 
     section as authority to obligate appropriated funds available 
     for operation and maintenance to carry out a construction 
     project outside the United States that the Secretary 
     determines meets each of the following conditions:
       (1) The construction is necessary to meet urgent military 
     operational requirements of a temporary nature involving the 
     use of the Armed Forces in support of Operation Iraqi Freedom 
     or the Global War on Terrorism.
       (2) The construction is not carried out at a military 
     installation where the United States is reasonably expected 
     to have a long-term presence.
       (3) The United States has no intention of using the 
     construction after the operational requirements have been 
     satisfied.
       (4) The level of construction is the minimum necessary to 
     meet the temporary operational requirements.
       (b) Limitation on Use of Authority.--The total cost of the 
     construction projects carried out under the authority of this 
     section using, in whole or in part, appropriated funds 
     available for operation and maintenance shall not exceed 
     $150,000,000 in fiscal year 2004.
       (c) Notifications of Obligations of Funds.--Within fifteen 
     days after the date on which appropriated funds available for 
     operation and maintenance are first obligated for a 
     construction project under subsection (a), the Secretary of 
     Defense shall submit to the Congressional defense committees 
     notice of the obligation of funds and the construction 
     project. The notice shall include the following:
       (1) Certification that the conditions specified in 
     subsection (a) are satisfied with regard to the construction 
     project.
       (2) A description of the purpose for which appropriated 
     funds available for operation and maintenance are being 
     obligated.
       (3) Relevant documentation detailing the construction 
     project.
       (4) The total amount obligated for the construction.
       (d) Quarterly Report.--(1) Not later than 30 days after the 
     end of each fiscal-year quarter of fiscal year 2004, the 
     Secretary of Defense shall submit to the congressional 
     committees specified in subsection (f) a report on the 
     worldwide obligation and expenditure during that quarter of 
     appropriated funds available for operation and maintenance 
     for construction projects.
       (2) The report shall include with regard to each project 
     the following:
       (A) Certification that the conditions specified in 
     subsection (a) are satisfied with regard to the construction 
     project.
       (B) A description of the purpose for which appropriated 
     funds available for operation and maintenance are being 
     obligated.
       (C) Relevant documentation detailing the construction 
     project.
       (D) An estimate of the total cost of the construction 
     project.
       (E) The total amount obligated for the construction project 
     as of the date of the submission of the report.
       (e) Relation to Other Authorities.--The temporary authority 
     provided by this section, and the limited authority provided 
     by section 2805(c) of title 10, United States Code, to use 
     appropriated funds available for operation and maintenance to 
     carry out a construction project are the only authorities 
     available to the Secretary of Defense and the Secretaries of 
     the military departments to use appropriated funds available 
     for operation and maintenance to carry out construction 
     projects.
       (f) Congressional Committees.--The congressional committees 
     referred to in this section are the following:
       (1) The Committee on Armed Services and the Subcommittees 
     on Defense and Military Construction of the Committee on 
     Appropriations of the Senate.
       (2) The Committee on Armed Services and the Subcommittees 
     on Defense and Military Construction of the Committee on 
     Appropriations of the House of Representatives.

    TITLE II--IRAQ AND AFGHANISTAN RECONSTRUCTION AND INTERNATIONAL 
                               ASSISTANCE

                               CHAPTER 1

                         DEPARTMENT OF JUSTICE

                            Legal Activities


                        General Legal Activities

       For necessary expenses for ``Salaries and Expenses, General 
     Legal Activities'', $15,000,000.

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    Diplomatic and Consular Programs

                         (including rescission)

       For necessary expenses for ``Diplomatic and Consular 
     Programs'', $156,300,000, of which

[[Page 26420]]

     $35,800,000 shall remain available until September 30, 2006.
       Of the funds appropriated under this heading in the 
     Emergency Wartime Supplemental Appropriations Act, 2003, 
     $35,800,000 are rescinded.


            Embassy Security, Construction, and Maintenance

       For necessary expenses for ``Embassy Security, 
     Construction, and Maintenance'', $43,900,000, to remain 
     available until expended: Provided, That funds provided under 
     this heading do not include facilities requirements specific 
     to the United States Agency for International Development, 
     which are provided under the heading ``United States Agency 
     for International Development, Operating Expenses of the 
     United States Agency for International Development''.


           EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

                     (including transfer of funds)

       For necessary expenses for ``Emergencies in the Diplomatic 
     and Consular Service'', $115,500,000, to remain available 
     until expended, which may be transferred to, and merged with, 
     the appropriations for ``Diplomatic and Consular Programs'': 
     Provided, That of the funds made available under this 
     heading, $65,500,000 may be transferred to, and merged with, 
     the appropriations for ``Protection of Foreign Missions and 
     Officials''; of which $32,000,000 is for the reimbursement of 
     the City of New York for costs associated with the protection 
     of foreign missions and officials during the heightened state 
     of alert following the September 11, 2001, terrorist attacks 
     on the United States; of which $8,500,000 is for costs 
     associated with the 2003 Free Trade Area of the Americas 
     Ministerial meeting; and of which $25,000,000 is for costs 
     associated with the 2004 Summit of the Industrialized Nations 
     notwithstanding the limitations of 3 U.S.C. 202(10): Provided 
     further, That of the funds previously appropriated under this 
     heading, $2,000,000 is for rewards for an indictee of the 
     Special Court for Sierra Leone: Provided further, That any 
     transfer of funds provided under this heading shall be 
     treated as a reprogramming of funds under section 605 of 
     Public Law 108-7.

                      International Organizations


        Contributions for International Peacekeeping Activities

       For necessary expenses for ``Contributions for 
     International Peacekeeping Activities'', $245,000,000, to 
     remain available until expended.

                             RELATED AGENCY

                    Broadcasting Board of Governors


                 International Broadcasting Operations

       For necessary expenses for ``International Broadcasting 
     Operations'', for activities related to the Middle East 
     Television Network broadcasting to Iraq, $40,000,000.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 2101. Funds appropriated under this chapter for the 
     Broadcasting Board of Governors and the Department of State 
     may be obligated and expended notwithstanding section 313 of 
     the Foreign Relations Authorization Act, Fiscal Years 1994 
     and 1995, and section 15 of the State Department Basic 
     Authorities Act of 1956, as amended.

                               CHAPTER 2

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

           United States Agency for International Development

   Operating Expenses of the United States Agency for International 
                              Development

       For an additional amount for ``Operating Expenses of the 
     United States Agency for International Development'', 
     $38,100,000, for direct support of operations in Afghanistan, 
     to remain available until September 30, 2005.
       In addition, for direct support of operations in Iraq, 
     $1,900,000, which shall be transferred to and merged with 
     ``Operating Expenses of the United States Agency for 
     International Development Office of Inspector General'' for 
     financial and performance audits of the Iraq Relief and 
     Reconstruction Fund and other assistance to Iraq, to remain 
     available until September 30, 2005.


                        CAPITAL INVESTMENT FUND

       For an additional amount for ``Capital Investment Fund'', 
     $16,600,000, to remain available until expended: Provided, 
     That the Administrator of the United States Agency for 
     International Development shall assess fair and reasonable 
     rental payments for the use of space by employees of other 
     United States Government agencies in buildings constructed 
     using funds appropriated under this heading, and such rental 
     payments shall be deposited into this account as an 
     offsetting collection: Provided further, That the rental 
     payments collected pursuant to the previous proviso and 
     deposited as an offsetting collection shall be available for 
     obligation only pursuant to the regular notification 
     procedures of the Committees on Appropriations.

                  OTHER BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President


                  Iraq Relief and Reconstruction Fund

                     (INCLUDING TRANSFERS OF FUNDS)

       For necessary expenses to carry out the purposes of the 
     Foreign Assistance Act of 1961, for security, relief, 
     rehabilitation and reconstruction in Iraq, $18,649,000,000, 
     to remain available until September 30, 2006, to be allocated 
     as follows: $3,243,000,000 for security and law enforcement; 
     $1,318,000,000 for justice, public safety infrastructure, and 
     civil society, of which $100,000,000 shall be made available 
     for democracy building activities, and of which $10,000,000 
     shall be made available to the United States Institute for 
     Peace for activities supporting peace enforcement, 
     peacekeeping and post-conflict peacebuilding; $5,560,000,000 
     for the electric sector; $1,890,000,000 for oil 
     infrastructure; $4,332,000,000 for water resources and 
     sanitation; $500,000,000 for transportation and 
     telecommunications; $370,000,000 for roads, bridges, and 
     construction; $793,000,000 for health care; $153,000,000 for 
     private sector development; and $280,000,000 for education, 
     refugees, human rights, and governance: Provided, That the 
     President may reallocate up to 10 percent of any of the 
     preceding allocations, except that the total for the 
     allocation receiving such funds may not be increased by more 
     than 20 percent: Provided further, That the President may 
     increase one such allocation only by up to an additional 20 
     percent in the event of unforeseen or emergency 
     circumstances: Provided further, That such reallocations 
     shall be subject to the regular notification procedures of 
     the Committees on Appropriations and section 634A of the 
     Foreign Assistance Act of 1961 and notifications shall be 
     transmitted at least 15 days in advance of the obligation of 
     funds: Provided further, That funds appropriated under this 
     heading shall be apportioned only to the Coalition 
     Provisional Authority in Iraq (in its capacity as an entity 
     of the United States Government), the Department of State, 
     the Department of Health and Human Services, the Department 
     of Treasury, the Department of Defense, and the United States 
     Agency for International Development: Provided further, That 
     upon a determination that all or part of the funds so 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation: Provided further, That of the 
     amount appropriated in this paragraph, not less than 
     $6,000,000 shall be made available for administrative 
     expenses of the Department of State Bureau of International 
     Narcotics Control and Law Enforcement Affairs and not less 
     than $29,000,000 shall be made available for administrative 
     expenses of the United States Agency for International 
     Development for support of the reconstruction activities in 
     Iraq: Provided further, That of the funds appropriated under 
     this heading, up to 10 percent of such funds that are 
     obligated, managed, or administered by an agency of the 
     United States Government, other than the Coalition 
     Provisional Authority, shall be made available to such agency 
     to fully pay for its administrative expenses: Provided 
     further, That up to 1 percent of the amount appropriated in 
     this paragraph may be transferred to ``Operating Expenses of 
     the Coalition Provisional Authority'', and that any such 
     transfer shall be in accordance with the regular notification 
     procedures of the Committees on Appropriations and section 
     634A of the Foreign Assistance Act of 1961: Provided further, 
     That funds appropriated under this heading shall be used to 
     protect and promote public health and safety, including for 
     the arrest, detention and prosecution of criminals and 
     terrorists: Provided further, That of the funds appropriated 
     under this heading, assistance shall be made available for 
     Iraqi civilians who have suffered losses as a result of 
     military operations: Provided further, That contributions of 
     funds for the purposes provided herein from any person, 
     foreign government, or international organization, may be 
     credited to this Fund and used for such purposes: Provided 
     further, That the Administrator of the Coalition Provisional 
     Authority shall seek to ensure that programs, projects and 
     activities funded under this heading, comply fully with 
     USAID's ``Policy Paper: Disability'' issued on September 12, 
     1997: Provided further, That the Coalition Provisional 
     Authority shall work, in conjunction with relevant Iraqi 
     officials, to ensure that a new Iraqi constitution preserves 
     full rights to religious freedom and tolerance of all faiths: 
     Provided further, That of the funds appropriated under this 
     heading, $100,000,000 shall be transferred to and 
     consolidated with funds appropriated by this Act for 
     ``Economic Support Fund'' for assistance for Jordan, 
     $100,000,000 of such funds shall be transferred to and 
     consolidated with funds appropriated by this Act for 
     ``International Disaster and Famine Assistance'' for 
     assistance for Liberia, and $10,000,000 of such funds shall 
     be transferred to and consolidated with funds appropriated by 
     this Act for ``International Disaster and Famine Assistance'' 
     for assistance for Sudan.

       Operating Expenses of the Coalition Provisional Authority

       For necessary expenses of the Coalition Provisional 
     Authority in Iraq, established pursuant to United Nations 
     Security Council resolutions including Resolution 1483, for 
     personnel costs, transportation, supply, equipment, 
     facilities, communications, logistics requirements, studies, 
     physical security, media support, promulgation and 
     enforcement of regulations, and other activities needed to 
     oversee and manage the relief and reconstruction of Iraq and 
     the transition to democracy, $933,000,000, to remain 
     available until September 30, 2005: Provided, That the 
     appropriation of funds under this heading shall not be 
     construed to limit or otherwise affect the ability of the 
     Department of Defense to furnish assistance and services, and 
     any other support, to the Coalition Provisional Authority.
       In addition, $50,000,000, to remain available until 
     September 30, 2005, to be used to fulfill the reporting and 
     monitoring requirements of this Act and for the preparation 
     and maintenance of public records required by this Act.

[[Page 26421]]



                         Economic Support Fund

       For an additional amount for ``Economic Support Fund'', 
     $872,000,000, to remain available until December 31, 2004: 
     Provided, That not less than $672,000,000 is available only 
     for accelerated assistance for Afghanistan: Provided further, 
     That these funds are available notwithstanding section 660 of 
     the Foreign Assistance Act of 1961, and section 620(q) of 
     that Act or any comparable provision of law: Provided 
     further, That these funds may be used for activities related 
     to disarmament, demobilization, and reintegration of militia 
     combatants, including registration of such combatants, 
     notwithstanding section 531(e) of the Foreign Assistance Act 
     of 1961: Provided further, That the obligation of funds made 
     available by this Act or any prior appropriations Act for the 
     purpose of deploying and supporting senior advisors to the 
     United States Chief of Mission in Kabul, Afghanistan, is 
     subject to the regular reprogramming and notification 
     procedures of the Committees on Appropriations and section 
     634A of the Foreign Assistance Act of 1961: Provided further, 
     That $60,000,000 should be made available for assistance for 
     Afghan women and girls and $5,000,000 shall be made available 
     for the Afghan Independent Human Rights Commission: Provided 
     further, That not less than $8,000,000 is available only for 
     the provision of adequate dedicated air transport and support 
     for civilian personnel at provincial reconstruction team 
     sites: Provided further, That upon the receipt by the Speaker 
     of the House of Representatives and the President of the 
     Senate of a determination by the President that the 
     Government of Pakistan is cooperating with the United States 
     in the global war on terrorism, not to exceed $200,000,000 
     appropriated under this heading may be used for the costs, as 
     defined in section 502 of the Congressional Budget Act of 
     1974, of modifying direct loans and guarantees for Pakistan: 
     Provided further, That amounts that are made available under 
     the previous proviso for the cost of modifying direct loans 
     and guarantees shall not be considered ``assistance'' for the 
     purposes of provisions of law limiting assistance to a 
     country.

              International Disaster and Famine Assistance


                     (including transfers of funds)

       For necessary expenses for International Disaster and 
     Famine Assistance utilizing the general authorities of 
     section 491 of the Foreign Assistance Act of 1961, to respond 
     to or prevent unforeseen complex foreign crises in Liberia 
     and Sudan, $110,000,000, and by transfer not to exceed 0.5 
     percent of the funds appropriated under any other heading in 
     this chapter, to remain available to the Secretary of State 
     until September 30, 2005: Provided, That funds appropriated 
     under this heading may be made available only pursuant to a 
     determination by the President, after consultation with the 
     appropriate congressional committees, that it is in the 
     national interest and essential to efforts to reduce 
     international terrorism to furnish assistance on such terms 
     and conditions as he may determine for such purposes, 
     including support for peace and humanitarian intervention 
     operations: Provided further, That none of these funds shall 
     be available to respond to natural disasters: Provided 
     further, That funds made available under this heading to 
     respond to or prevent unforeseen complex foreign crises shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations: Provided further, That not less 
     than $100,000,000 of the funds appropriated under this 
     heading shall be made available for assistance for Liberia.

                          DEPARTMENT OF STATE

          International Narcotics Control and Law Enforcement

       For an additional amount for ``International Narcotics 
     Control and Law Enforcement'', $170,000,000, to remain 
     available until December 31, 2004, for accelerated assistance 
     for Afghanistan.

    Nonproliferation, Anti-Terrorism, Demining and Related Programs

       For an additional amount for ``Nonproliferation, Anti-
     Terrorism, Demining and Related Programs'', $35,000,000, for 
     accelerated assistance for Afghanistan.

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

                   Foreign Military Financing Program

       For an additional amount for the ``Foreign Military 
     Financing Program'', $287,000,000, for accelerated assistance 
     for Afghanistan.

                        Peacekeeping Operations

       For an additional amount for ``Peacekeeping Operations'', 
     $50,000,000, to support the global war on terrorism.

                    GENERAL PROVISIONS, THIS CHAPTER

       Sec. 2201. None of the funds appropriated by this Act or 
     any unexpended funds provided in Public Law 108-11 may be 
     used to repay, in whole or in part, principal or interest on 
     any loan or guarantee agreement entered into by the 
     Government of Iraq with any private or public sector entity 
     including with the government of any country (including any 
     agency of such government or any entity owned in whole or in 
     part by the government of such country) or with any 
     international financial institution, prior to May 1, 2003: 
     Provided, That for the purpose of this section, the term 
     ``international financial institution'' shall mean those 
     institutions contained in section 530(b) of division E of 
     Public Law 108-7.
       Sec. 2202 (a) Notwithstanding any other provision of law, 
     none of the funds appropriated by this Act under the heading 
     ``Iraq Relief and Reconstruction Fund'' and under the same 
     heading in Public Law 108-11 may be used for entering into 
     any Federal contract (including follow-on contract) using 
     other than full and open competition, except in accordance 
     with the Federal Property and Administrative Procedures Act 
     (41 U.S.C. 251 et seq.), and any exception, if deemed 
     necessary, shall be only upon the written approval of the 
     Administrator of the Coalition Provisional Authority and the 
     head of the executive agency of the United States awarding 
     and managing such contract and such authority shall not be 
     delegated.
       (b) In any case in which procedures other than full and 
     open competitive procedures are to be used to enter into a 
     contract, the Administrator of the Coalition Provisional 
     Authority or the head of such executive agency of the United 
     States shall submit not later than 7 calendar days before the 
     award of the contract a notification to the Committees on 
     Appropriations, and the Committees on Government Reform and 
     International Relations of the House of Representatives, and 
     the Committees on Governmental Affairs and Foreign Relations 
     of the Senate. Such notification shall provide the 
     justification for use of other than full and open competitive 
     procedures, a brief description of the contract's scope, the 
     amount of the contract, a discussion of how the contracting 
     agency identified and solicited offers from contractors, a 
     list of the contractors solicited, and the justification and 
     approval documents (as required under section 303(f)(1) of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 253(f)(1)) on which was based the determination of 
     use of procedures other than full and open competitive 
     procedures.
       (c)(1) This section shall not apply to contracts of less 
     than $5,000,000.
       (2) This section also shall apply to any extension, 
     amendment or modification of contracts entered into prior to 
     the enactment of this Act using other than full and open 
     competitive procedures using Iraq Relief and Reconstruction 
     Funds in this Act and under Public Law 108-11 or funds made 
     available in prior Foreign Operations, Export Financing and 
     Related Programs Appropriations Acts.
       (3) This section shall not apply to contracts authorized by 
     the Small Business Act (15 U.S.C. 631 et seq.).
       Sec. 2203. (a) Disclosure Required.--
       (1) Publication and public availability.--The Administrator 
     of the Coalition Provisional Authority or the head of an 
     executive agency of the United States that enters into a 
     contract for assistance for Iraq, using funds described in 
     paragraph (2), through the use of other than full and open 
     competitive procedures, shall publish in the Federal Register 
     or Federal Business Opportunities, and otherwise make 
     available to the public, including publication on the 
     Coalition Provisional Authority's website, not later than 7 
     days before the date on which the contract is entered into, 
     the following information:
       (A) The amount of the contract.
       (B) A brief description of the scope of the contract.
       (C) A discussion of how the executive agency and, when 
     applicable, the Coalition Provisional Authority, identified, 
     and solicited offers from, potential contractors to perform 
     the contract, together with a list of the potential 
     contractors that were issued solicitations for the offers.
       (D) The justification and approval documents (as required 
     under section 303(f)(1) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253(f)(1)) on 
     which was based the determination to use procedures other 
     than competitive procedures.
       (2) Funds.--The funds referred to in paragraph (1) are any 
     funds under the heading ``Iraq Relief and Reconstruction 
     Fund'' in this Act, and under the same heading in Public Law 
     108-11.
       (3) Applicability.--
       (A) This section shall also apply to any extension, 
     amendment or modification of contracts entered into prior to 
     the enactment of this Act using other than full and open 
     competitive procedures using Iraq Relief and Reconstruction 
     Funds in this Act and under Public Law 108-11 or funds made 
     available in prior Foreign Operations, Export Financing and 
     Related Programs Appropriations Acts.
       (B) This section shall not apply to contracts of less than 
     $5,000,000.
       (C) This section shall not apply to contracts authorized by 
     the Small Business Act (15 U.S.C. 631 et seq.).
       (b) Classified Information.--
       (1) Authority to withhold.--The head of an executive agency 
     may--
       (A) withhold from publication and disclosure under 
     subsection (a) any document that is classified for restricted 
     access in accordance with an Executive order in the interest 
     of national defense or foreign policy; and
       (B) redact any part so classified that is in a document not 
     so classified before publication and disclosure of the 
     document under subsection (a).
       (2) Availability to congress.--In any case in which the 
     head of an executive agency withholds information under 
     paragraph (1), the head of such executive agency shall make 
     available an unredacted version of the document containing 
     that information to the chairman and ranking member of each 
     of the following committees of Congress:
       (A) The Committee on Governmental Affairs of the Senate and 
     the Committee on Government Reform of the House of 
     Representatives.

[[Page 26422]]

       (B) The Committees on Appropriations of the Senate and the 
     House of Representatives.
       (C) Each committee that the head of the executive agency 
     determines has legislative jurisdiction for the operations of 
     such department or agency to which the information related.
       (c) Relationship to Other Disclosure Laws.--Nothing in this 
     section shall be construed as affecting obligations to 
     disclose United States Government information under any other 
     provision of law.
       (d) Definitions.--In this section and section 2202 of this 
     Act, the terms ``full and open competitive procedures'' and 
     ``executive agency'' have the meanings given such terms in 
     section 4 of the Office of Federal Procurement Policy Act (41 
     U.S.C. 403).
       Sec. 2204. Section 1503 of Public Law 108-11 is amended--
       (1) by striking ``equipment'' and inserting in lieu thereof 
     ``equipment, including equipment''; and
       (2) by striking ``2004'' and inserting in lieu thereof 
     ``2005''.
       Sec. 2205. Section 1504 of Public Law 108-11 is amended 
     by--
       (1) in the first proviso, striking the first proviso, and 
     inserting in lieu thereof: ``Provided, That, subject to the 
     notification requirements of this section, exports may be 
     authorized of lethal military equipment designated by the 
     Secretary of State for use by a reconstituted (or interim) 
     Iraqi military or police force, and of small arms designated 
     by the Secretary of State for use for private security 
     purposes:''; and
       (2) in the last proviso, striking ``2004'' and inserting in 
     lieu thereof ``2005''.
       Sec. 2206. Section 202(b) of the Afghanistan Freedom 
     Support Act of 2002 (Public Law 107-327) is amended by 
     striking ``$300,000,000'' and inserting in lieu thereof 
     ``$450,000,000''.
       Sec. 2207. (a) The Director of the Office of Management and 
     Budget, in consultation with the Administrator of the 
     Coalition Provisional Authority (CPA) and the Committees on 
     Appropriations, shall submit to the Committees on 
     Appropriations not later than January 5, 2004 and prior to 
     the initial obligation of funds appropriated by this Act 
     under the heading ``Iraq Relief and Reconstruction Fund'' a 
     report on the proposed uses of all funds under this heading 
     on a project-by-project basis, for which the obligation of 
     funds is anticipated during the 3 month period from such 
     date, including estimates by the CPA of the costs required to 
     complete each such project: Provided, That up to 20 percent 
     of funds appropriated under such heading may be obligated 
     before the submission of the report: Provided further, That 
     in addition such report shall include the following:
       (1) The use of all funds on a project-by-project basis for 
     which funds appropriated under such heading were obligated 
     prior to the submission of the report, including estimates by 
     the CPA of the costs required to complete each project.
       (2) The distribution of duties and responsibilities 
     regarding such projects among the agencies of the United 
     States Government.
       (3) Revenues to the CPA attributable to or consisting of 
     funds provided by foreign governments and international 
     organizations, disaggregated by donor, any obligations or 
     expenditures of such revenues, and the purpose of such 
     obligations and expenditures.
       (4) Revenues to the CPA attributable to or consisting of 
     foreign assets seized or frozen, any obligations or 
     expenditures of such revenues, and the purpose of such 
     obligations and expenditures.
       (b) Any proposed new projects and increases in funding of 
     ongoing projects shall be reported to the Committees on 
     Appropriations in accordance with regular notification 
     procedures.
       (c) The report required by subsection (a) shall be updated 
     and submitted to the Committees on Appropriations every 3 
     months and shall include information on how the estimates and 
     assumptions contained in previous reports have changed.
       (d) The requirements of this section shall expire on 
     October 1, 2007.
       Sec. 2208. Any reference in this chapter to the ``Coalition 
     Provisional Authority in Iraq'' or the ``Coalition 
     Provisional Authority'' shall be deemed to include any 
     successor United States Government entity with the same or 
     substantially the same authorities and responsibilities as 
     the Coalition Provisional Authority in Iraq.
       Sec. 2209. Assistance or other financing under chapter 2 of 
     this title may be provided for Iraq and Afghanistan 
     notwithstanding any other provision of law not contained in 
     this Act that restricts assistance to foreign countries and 
     section 660 of the Foreign Assistance Act of 1961: Provided, 
     That funds made available for Iraq pursuant to the authority 
     of this section shall be subject to the regular reprogramming 
     notification procedures of the Committees on Appropriations 
     and section 634A of the Foreign Assistance Act of 1961, 
     except that notification shall be transmitted at least 5 days 
     in advance of obligation.
       Sec. 2210. Funds made available in chapter 2 of this title 
     are made available notwithstanding section 10 of Public Law 
     91-672 and section 15 of the State Department Basic 
     Authorities Act of 1956, as amended.
       Sec. 2211. Notwithstanding any other provision of law, the 
     Overseas Private Investment Corporation is authorized to 
     undertake any program authorized by title IV of the Foreign 
     Assistance Act of 1961 in Iraq: Provided, That funds made 
     available pursuant to the authority of this section shall be 
     subject to the regular reprogramming notification procedures 
     of the Committees on Appropriations.
       Sec. 2212. In addition to transfer authority otherwise 
     provided in chapter 2 of this title, any appropriation made 
     available in chapter 2 of this title may be transferred 
     between such appropriations, to be available for the same 
     purposes and the same time as the appropriation to which 
     transferred: Provided, That the total amount transferred 
     pursuant to this section shall not exceed $100,000,000: 
     Provided further, That the Secretary of State shall consult 
     with the Committees on Appropriations prior to exercising the 
     authority contained in this section: Provided further, That 
     funds made available pursuant to the authority of this 
     section shall be subject to the regular notification 
     procedures of the Committees on Appropriations, except that 
     notification shall be transmitted at least 10 days in advance 
     of the obligation of funds.
       Sec. 2213. Public Law 107-57 is amended--
       (1) in section 1(b), by striking ``2003'' wherever 
     appearing (including in the caption), and inserting in lieu 
     thereof ``2004'';
       (2) in section 3(2), by striking ``Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     2002, as is'' and inserting in lieu thereof ``annual foreign 
     operations, export financing, and related programs 
     appropriations Acts for fiscal years 2002, 2003, and 2004, as 
     are''; and
       (3) in section 6, by striking ``2003'' and inserting in 
     lieu thereof ``2004''.
       Sec. 2214. The Afghanistan Freedom Support Act of 2002 
     (Public Law 107-327), is amended in section 108(a), by 
     striking ``$425,000,000 for each of the fiscal years 2003 
     through 2006'' and inserting in lieu thereof ``$1,825,000,000 
     for fiscal year 2004 and $425,000,000 for each of fiscal 
     years 2005 and 2006''.
       Sec. 2215. Reports on Iraq and Afghanistan. (a)(1) The 
     Coalition Provisional Authority (CPA) shall, on a monthly 
     basis until September 30, 2006, submit a report to the 
     Committees on Appropriations which details, for the preceding 
     month, Iraqi oil production and oil revenues, and uses of 
     such revenues.
       (2) The first report required by this subsection shall be 
     submitted not later than 30 days after enactment of this Act.
       (3) The reports required by this subsection shall also be 
     made publicly available in both English and Arabic, including 
     through the CPA's Internet website.
       (b) The Secretary of State, in consultation with the heads 
     of other relevant Federal agencies, shall submit a report to 
     the Committees on Appropriations not later than 90 days after 
     enactment of this Act detailing:
       (1) the amount of debt incurred by the Government of Saddam 
     Hussein in Iraq, the impact forgiveness of such debt would 
     have on reconstruction and long-term prosperity in Iraq, and 
     the estimated amount that Iraq will pay, or that will be paid 
     on behalf of Iraq, to a foreign country to service such debt 
     during fiscal year 2004;
       (2) the efforts of the Government of the United States to 
     increase resources contributed by foreign countries and 
     international organizations, including the United Nations, to 
     the reconstruction and rehabilitation of Iraq and to increase 
     international participation in peacekeeping and security 
     efforts in Iraq;
       (3) the manner in which the needs of people with 
     disabilities are being addressed in the development and 
     implementation of programs, projects and activities funded by 
     the United States Government in Iraq and Afghanistan;
       (4) the progress being made toward indicting and trying 
     leaders of the former Iraqi regime for war crimes, genocide, 
     and crimes against humanity; and
       (5) the efforts of relevant Iraqi officials and legal 
     advisors to ensure that a new Iraqi constitution preserves 
     religious freedom and tolerance of all faiths.
       (c) Title III of Public Law 107-327 is amended as follows 
     by inserting the following new section:

     ``SEC. 304. REPORTS.

       ``The Secretary of State shall submit reports to the 
     Committees on Foreign Relations and Appropriations of the 
     Senate, and the Committees on International Relations and 
     Appropriations of the House of Representatives on progress 
     made in accomplishing the `Purposes of Assistance' set forth 
     in section 102 of this Act utilizing assistance provided by 
     the United States for Afghanistan. The first report shall be 
     submitted no later than December 31, 2003, and subsequent 
     reports shall be submitted in conjunction with reports 
     required under section 303 of this title and thereafter 
     through December 31, 2004.''.
       Sec. 2216. None of the funds appropriated or otherwise made 
     available under chapter 2 of title II of this Act may be 
     obligated or expended for any activity in contravention of 
     Articles 1 and 4 of the Optional Protocol to the Convention 
     on the Rights of the Child on the Involvement of Children in 
     Armed Conflicts.
       Sec. 2217. Participation of Women in Afghanistan and Iraq 
     Reconstruction. (a) Governance.--Activities carried out by 
     the United States with respect to the civilian governance of 
     Afghanistan and Iraq shall, to the maximum extent 
     practicable--
       (1) include the perspectives and advice of women's 
     organizations in Afghanistan and Iraq, respectively;
       (2) promote the high level participation of women in future 
     legislative bodies and ministries and ensure that human 
     rights for women are upheld in any constitution or legal 
     institution of Afghanistan and Iraq, respectively.
       (b) Post-conflict Reconstruction and Development.--
     Activities carried out by the United States with respect to 
     post-conflict stability in Afghanistan and Iraq shall, to the 
     maximum extent practicable--

[[Page 26423]]

       (1) encourage the United States organizations that receive 
     funds made available by this Act to provide significant 
     financial resources, technical assistance and capacity 
     building to counterpart organizations led by Afghans and 
     Iraqis, respectively;
       (2) increase the access of women to, or ownership by women 
     of, productive assets such as land, water, agricultural 
     inputs, credit, and property in Afghanistan and Iraq, 
     respectively;
       (3) provide long-term financial assistance for education 
     for girls and women in Afghanistan and Iraq, respectively; 
     and
       (4) integrate education and training programs for former 
     combatants in Afghanistan and Iraq, respectively, with 
     economic development programs to--
       (A) encourage the reintegration of such former combatants 
     into society; and
       (B) promote post-conflict stability in Afghanistan and 
     Iraq, respectively.
       (c) Military and Police.--Activities carried out by the 
     United States with respect to training for military and 
     police forces in Afghanistan and Iraq shall include training, 
     designed in consultation with women's organizations in 
     Afghanistan and Iraq, respectively, on the protection, 
     rights, and particular needs of women.
  TITLE III--INSPECTOR GENERAL OF THE COALITION PROVISIONAL AUTHORITY.

     SEC. 3001. INSPECTOR GENERAL OF THE COALITION PROVISIONAL 
                   AUTHORITY.

       (a) Purposes.--The purposes of this section are as follows:
       (1) To provide for the independent and objective conduct 
     and supervision of audits and investigations relating to the 
     programs and operations of the Coalition Provisional 
     Authority (CPA).
       (2) To provide for the independent and objective leadership 
     and coordination of, and recommendations on, policies 
     designed to--
       (A) promote economy efficiency, and effectiveness in the 
     administration of such programs and operations; and
       (B) prevent and detect fraud and abuse in such programs and 
     operations.
       (3) To provide for an independent and objective means of 
     keeping the head of the Coalition Provisional Authority fully 
     and currently informed about problems and deficiencies 
     relating to the administration of such programs and 
     operations and the necessity for and progress for corrective 
     action.
       (b) Office of Inspector General.--There is hereby 
     established the Office of the Inspector General of the 
     Coalition Provisional Authority.
       (c) Appointment of Inspector General; Removal.--(1) The 
     head of the Office of the Inspector General of the Coalition 
     Provisional Authority is the Inspector General of the 
     Coalition Provisional Authority, who shall be appointed by 
     the Secretary of Defense, in consultation with the Secretary 
     of State.
       (2) The appointment of Inspector General shall be made 
     solely on the basis of integrity and demonstrated ability in 
     accounting, auditing, financial analysis, law, management 
     analysis, public administration, or investigations.
       (3) The nomination of an individual as Inspector General 
     shall be made not later than 30 days after the date of the 
     enactment of this Act.
       (4) The Inspector General shall be removable from office in 
     accordance with the provisions of section 3(b) of the 
     Inspector General Act of 1978 (5 U.S.C. App.).
       (5) For purposes of section 7324 of title 5, United States 
     Code, the Inspector General shall not be considered an 
     employee who determines policies to be pursued by the United 
     States in the nationwide administration of Federal law.
       (6) The annual rate of basic pay of the Inspector General 
     shall be the annual rate of basic pay provided for positions 
     at level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code.
       (d) Assistant Inspectors General.--The Inspector General 
     shall, in accordance with applicable laws and regulations 
     governing the civil service--
       (1) appoint an Assistant Inspector General for Auditing who 
     shall have the responsibility for supervising the performance 
     of auditing activities relating to programs and operations of 
     the Coalition Provisional Authority; and
       (2) appoint an Assistant Inspector General for 
     Investigations who shall have the responsibility for 
     supervising the performance of investigative activities 
     relating to such programs and operations.
       (e) Supervision.--(1) Except as provided in paragraph (2), 
     the Inspector General shall report directly to, and be under 
     the general supervision of, the head of the Coalition 
     Provisional Authority.
       (2) Neither the head of the Coalition Provisional 
     Authority, any other officer of the Coalition Provisional 
     Authority, nor any other officer of the Department of 
     Defense, the Department of State, or the United States Agency 
     for International Development shall prevent or prohibit the 
     Inspector General from initiating, carrying out, or 
     completing any audit or investigation, or from issuing any 
     subpoena during the course of any audit or investigation.
       (f) Duties.--(1) It shall be the duty of the Inspector 
     General to conduct, supervise, and coordinate audits and 
     investigations of the treatment, handling, and expenditure of 
     appropriated funds by the Coalition Provisional Authority in 
     Iraq, and of the programs, operations, and contracts carried 
     out utilizing such funds, including--
       (A) the oversight and accounting of the obligation and 
     expenditure of such funds;
       (B) the monitoring and review of reconstruction activities 
     funded by such funds;
       (C) the monitoring and review of contracts funded by such 
     funds;
       (D) the monitoring and review of the transfer of such funds 
     and associated information between and among the Coalition 
     Provisional Authority, other departments, agencies, and 
     entities of the Federal Government, and private and 
     nongovernmental entities; and
       (E) the maintenance of records on the use of such funds to 
     facilitate future audits and investigations of the use of 
     such funds.
       (2) The Inspector General shall establish, maintain, and 
     oversee such systems, procedures, and controls as the 
     Inspector General considers appropriate to discharge the duty 
     under paragraph (1).
       (3) In addition to the duties specified in paragraphs (1) 
     and (2), the Inspector General shall also have the duties and 
     responsibilities of inspectors general under the Inspector 
     General Act of 1978.
       (4) In carrying out the duties, responsibilities, and 
     authorities of the Inspector General under this section, the 
     Inspector General shall coordinate with, and receive the 
     cooperation of, the Inspector General of the Department of 
     Defense.
       (5) In carrying out the duties, and responsibilities, and 
     authorities of the Inspector General under this section, the 
     Inspector General shall coordinate with, and receive the 
     cooperation of the Inspector General of the United States 
     Agency for International Development.
       (g) Powers and Authorities.--(1) In carrying out the duties 
     specified in subsection (f), the Inspector General shall have 
     the authorities provided in section 6 of the Inspector 
     General Act of 1978.
       (2) The Inspector General shall carry out the duties 
     specified in subsection (f)(1) in accordance with section 
     4(b)(1) of the Inspector General Act of 1978.
       (h) Personnel, Facilities, and Other Resources.--(1) The 
     Inspector General may select, appoint, and employ such 
     officers and employees as may be necessary for carrying out 
     the duties of the Inspector General, subject to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service, and the provisions 
     of chapter 51 and subchapter III of chapter 53 of such title, 
     relating to classification and General Schedule pay rates.
       (2) The Inspector General may obtain services as authorized 
     by section 3109 of title 5, United States Code, at daily 
     rates not to exceed the equivalent rate prescribed for grade 
     GS-15 of the General Schedule by section 5332 of such title.
       (3) To the extent and in such amounts as may be provided in 
     advance by appropriations Acts, the Inspector General my 
     enter into contracts and other arrangements for audits, 
     studies, analyses, and other services with public agencies 
     and with private persons, and make such payments as may be 
     necessary to carry out the duties of the Inspector General.
       (4)(A) Upon request of the Inspector General for 
     information or assistance from any department, agency, or 
     other entity of the Federal Government, the head of such 
     entity shall, insofar as is practicable and not in 
     contravention of any existing law, furnish such information 
     or assistance to the Inspector General, or an authorized 
     designee.
       (B) Whenever information or assistance requested by the 
     Inspector General is, in the judgment of the Inspector 
     General, unreasonably refused or not provided, the Inspector 
     General shall report the circumstances to the head of the 
     Coalition Provisional Authority and to the appropriate 
     committees of Congress without delay.
       (5) The head of the Coalition Provisional Authority shall 
     provide the Inspector General with appropriate and adequate 
     office space at the central and field office locations of the 
     Coalition Provisional Authority, together with such 
     equipment, office supplies, and communications facilities and 
     services as may be necessary for the operation of such 
     offices, and shall provide necessary maintenance services for 
     such offices and the equipment and facilities located 
     therein.
       (i) Reports.--(1) Not later than March 30, 2004, and every 
     calendar quarter thereafter, the Inspector General shall 
     submit to the appropriate committees of Congress a report 
     summarizing the activities of the Inspector General and the 
     Coalition Provisional Authority during the 120-day period 
     ending on the date of such report. Each report shall include, 
     for the period covered by such report, a detailed statement 
     of all obligations, expenditures, and revenues associated 
     with reconstruction and rehabilitation activities in Iraq, 
     including the following:
       (A) Obligations and expenditures of appropriated funds.
       (B) A project-by-project and program-by-program accounting 
     of the costs incurred to date for the reconstruction of Iraq, 
     together with the estimate of the Coalition Provisional 
     Authority of the costs to complete each project and each 
     program.
       (C) Revenues attributable to or consisting of funds 
     provided by foreign nations or international organizations, 
     and any obligations or expenditures of such revenues.
       (D) Revenues attributable to or consisting of foreign 
     assets seized or frozen, and any obligations or expenditures 
     of such revenues.
       (E) Operating expenses of the Coalition Provisional 
     Authority and of any other agencies or entities receiving 
     appropriated funds.
       (F) In the case of any contract described in paragraph 
     (2)--
       (i) the amount of the contract or other agreement;
       (ii) a brief discussion of the scope of the contract or 
     other agreement;

[[Page 26424]]

       (iii) a discussion of how the Coalition Provisional 
     Authority identified, and solicited offers from, potential 
     contractors to perform the contract, together with a list of 
     the potential contractors that were issued solicitations for 
     the offers; and
       (iv) the justification and approval documents on which was 
     based the determination to use procedures other than 
     procedures that provide for full and open competition.
       (2) A contract described in this paragraph is any major 
     contract or other agreement that is entered into by the 
     Coalition Provisional Authority with any public or private 
     sector entity for any of the following purposes:
       (A) To build or rebuild physical infrastructure of Iraq.
       (B) To establish or reestablish a political or societal 
     institution of Iraq.
       (C) To provide products or services to the people of Iraq.
       (3) Not later than June 30, 2004, and semiannually 
     thereafter, the Inspector General shall submit to the 
     appropriate committees of Congress a report meeting the 
     requirements of section 5 of the Inspector General Act of 
     1978
       (4) The Inspector General shall publish each report under 
     this subsection in both English and Arabic on the Internet 
     website of the Coalition Provisional Authority.
       (5) Each report under this subsection may include a 
     classified annex if the Inspector General considers it 
     necessary.
       (6) Nothing in this subsection shall be construed to 
     authorize the public disclosure of information that is--
       (A) specifically prohibited from disclosure by any other 
     provision of law;
       (B) specifically required by Executive order to be 
     protected from disclosure in the interest of national defense 
     or national security or in the conduct of foreign affairs; or
       (C) a part of an ongoing criminal investigation.
       (j) Report Coordination.--(1) The Inspector General shall 
     also submit each report under subsection (i) to the head of 
     the Coalition Provisional Authority.
       (2)(A) Not later than 30 days after receipt of a report 
     under paragraph (1), the head of the Coalition Provisional 
     Authority may submit to the appropriate committees of 
     Congress any comments on the matters covered by the report as 
     the head of the Coalition Provisional Authority considers 
     appropriate.
       (B) A report under this paragraph may include a classified 
     annex if the head of the Coalition Provisional Authority 
     considers it necessary.
       (k) Transparency.--(1) Not later than 60 days after the 
     date of the submittal to Congress of a report under 
     subsection (i), the head of the Coalition Provisional 
     Authority shall make copies of such report available to the 
     public upon request, and at a reasonable cost.
       (2) Not later than 60 days after the date of the submittal 
     to Congress under subsection (j)(2) of comments on a report 
     under subsection (i), the head of the Coalition Provisional 
     Authority shall make copies of such comments available to the 
     public upon request, and at a reasonable cost.
       (l) Waiver.--(1) The President may waive the requirement 
     under paragraph (1) or (3) of subsection (i) for the 
     inclusion in a report under such paragraph of any element 
     otherwise provided for under such paragraph if the President 
     determines that the waiver is justified for national security 
     reasons.
       (2) The President shall publish a notice of each waiver 
     made under this subsection in the Federal Register no later 
     than the date on which the reports required under paragraph 
     (1) or (3) of subsection (i) are submitted to Congress. The 
     reports required under paragraph (1) or (3) of subsection (i) 
     shall specify whether waivers under this subsection were made 
     and with respect to which elements.
       (m) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committees on Appropriations, Armed Services, and 
     Foreign Relations of the Senate; and
       (2) the Committees on Appropriations, Armed Services, and 
     International Relations of the House of Representatives.
       (n) Funding.--(1) Of the amounts appropriated for fiscal 
     year 2004 for the Operating Expenses of the Coalition 
     Provisional Authority in title II of this Act, $75,000,000 
     shall be available to carry out this section.
       (2) The amount available under paragraph (1) shall remain 
     available until expended.
       (o) The Office of Inspector General shall terminate 6 
     months after the authorities and duties of the Coalition 
     Provisional Authority cease to exist.

                 TITLE IV--GENERAL PROVISIONS, THIS ACT

       Sec. 4001. 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. 4002. The amounts provided in this Act are designated 
     by the Congress as an emergency requirement pursuant to 
     section 502 of H. Con. Res. 95 (108th Congress).
       Sec. 4003. For purposes of computing the amount of a 
     payment for an eligible local educational agency under 
     section 8003(a) of the Elementary and Secondary Education Act 
     (20 U.S.C. 7703(a)) for school year 2003-2004, children 
     enrolled in a school of such agency who would otherwise be 
     eligible to be claimed for payment under section 
     8003(a)(1)(B) of such Act, but due to the deployment of both 
     parents or legal guardians, or a parent or legal guardian 
     having sole custody of such children, or due to the death of 
     a military parent or legal guardian while on active duty (so 
     long as such children reside on Federal property as described 
     in section 8003(a)(1)(B)), are no longer eligible under such 
     section, shall be considered as eligible students under such 
     section, provided such students remain in average daily 
     attendance at a school in the same local educational agency 
     they attended prior to their change in eligibility status.
       This Act may be cited as the ``Emergency Supplemental 
     Appropriations Act for Defense and for the Reconstruction of 
     Iraq and Afghanistan, 2004''.
       And the Senate agree to the same.

     Bill Young,
     Jerry Lewis,
     Hal Rogers,
     Frank Wolf,
     Jim Kolbe,
     James T. Walsh,
     Joe Knollenberg,
     John P. Murtha,
     Nita M. Lowey,
     Chet Edwards,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete Domenici,
     Christopher Bond,
     Mitch McConnell,
     Conrad Burns,
     Richard C. Shelby,
     Judd Gregg,
     Robert F. Bennett,
     Ben Nighthorse Campbell,
     Larry Craig,
     Kay Bailey Hutchison,
     Mike DeWine,
     Sam Brownback,
     Daniel K. Inouye,
     Ernest P. Hollings
       (except title II),
     Patrick J. Leahy
       (except title II),
     Tom Harkin
       (except title II),
     Barbara A. Mikulski
       (except title II),
     Harry Reid
       (except title II),
     Patty Murray
       (except title II),
     Byron L. Dorgan
       (except title II),
     Dianne Feinstein
       (except title II),
     Tim Johnson
       (except title II),
     Mary L. Landrieu
       (except title II),
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3289) making 
     emergency supplemental appropriations for defense and for the 
     reconstruction of Iraq and Afghanistan for the fiscal year 
     ending September 30, 2004, and for other purposes, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effects of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report.
       Report language included by the House in the report 
     accompanying H.R. 3289 (H. Rept. 108-312) and included by the 
     Senate in the report accompanying S. 1689 (S. Rept. 108-160) 
     should be complied with unless specifically addressed in this 
     statement of the managers. The statement of the managers, 
     while repeating some report language for emphasis, is not 
     intended to negate the language referred to above unless 
     expressly provided herein.

                       TITLE I--NATIONAL SECURITY

                               CHAPTER 1

                    DEPARTMENT OF DEFENSE--MILITARY

       Chapter 1 of the conference agreement recommends 
     $64,702,554,000 for the Department of Defense, instead of 
     $64,702,854,000 as proposed by the House and $65,147,554,000 
     as proposed by the Senate.
       The following table provides details of the supplemental 
     appropriations in this chapter.

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                  Request           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Military Personnel:
    Military Personnel, Army................       12,858,870       12,188,870       12,858,870       12,858,870
    Military Personnel, Navy................          816,100          816,100          816,100          816,100

[[Page 26425]]

 
    Military Personnel, Marine Corps........          753,190          753,190          753,190          753,190
    Military Personnel, Air Force...........        3,384,700        3,384,700        3,384,700        3,384,700
                                             -------------------------------------------------------------------
      Total Military Personnel..............       17,812,860       17,142,860       17,812,860       17,812,860
                                             ===================================================================
Operation and Maintenance:
    O&M, Army...............................       24,190,464       24,257,664       24,946,464       23,997,064
    O&M, Navy...............................        2,106,258        1,934,058        1,976,258        1,956,258
    O&M, Marine Corps.......................        1,198,981        1,198,981        1,198,981        1,198,981
    O&M, Air Force..........................        5,948,368        5,598,368        5,516,368        5,416,368
    O&M, Defense-Wide.......................        4,618,452        4,485,452        4,218,452        4,355,452
    O&M, Marine Corps Reserve...............           16,000           16,000           16,000           16,000
    O&M, Air Force Reserve..................           53,000           53,000           53,000           53,000
    O&M, Air National Guard.................          214,000          214,000          214,000          214,000
    Overseas Humanitarian, Disaster and                35,500           35,500           35,500           35,500
     Civic Aid..............................
    Iraq Freedom Fund.......................        1,988,600        2,086,600        1,988,600        1,988,600
                                             -------------------------------------------------------------------
      Total Operation and Maintenance.......       40,369,623       39,879,623       40,163,623       39,231,223
                                             ===================================================================
Procurement:
    Missile Procurement, Army...............            6,200  ...............            6,200  ...............
    Procurement of WTCV, Army...............           46,000          101,600          104,000          101,600
    Other Procurement, Army.................          930,687        1,250,287        1,078,687        1,143,687
    Aircraft Procurement, Navy..............          128,600          158,600          128,600          158,600
    Other Procurement, Navy.................           76,357           76,357           76,357           76,357
    Procurement, Marine Corps...............          123,397          123,397          123,397          123,397
    Aircraft Procurement, Air Force.........           40,972           53,972           40,972           53,972
    Missile Procurement, Air Force..........           20,450           20,450           20,450           20,450
    Other Procurement, Air Force............        3,441,006        3,418,006        3,441,006        3,438,006
    Procurement, Defense-Wide...............          435,635          418,635          435,635          418,635
                                             -------------------------------------------------------------------
      Total Procurement.....................        5,249,304        5,621,304        5,455,304        5,534,704
                                             ===================================================================
Research, Development, Test and Evaluation:
    RDT&E, Navy.............................           34,000           34,000           34,000           34,000
    RDT&E, Air Force........................           39,070           39,070           39,070           39,070
    RDT&E, Defense-Wide.....................          265,817          195,817          265,817          260,817
                                             -------------------------------------------------------------------
      Total RDT&E...........................          338,887          268,887          338,887          333,887
                                             ===================================================================
Revolving and Management Funds:
    Defense Working Capital Funds...........          600,000          600,000          600,000          600,000
    National Defense Sealift Fund...........           24,000           24,000           24,000           24,000
                                             -------------------------------------------------------------------
      Total Revolving & Management Funds....          624,000          624,000          624,000          624,000
                                             ===================================================================
Other Department of Defense Programs:
    Defense Health Program..................          658,380          658,380          658,380          658,380
    Drug Interdiction & Counter-Drug                   73,000           73,000           73,000           73,000
     Activities, Defense....................
                                             -------------------------------------------------------------------
      Total Other...........................          731,380          731,380          731,380          731,380
                                             ===================================================================
Related Agencies:...........................
    Intelligence Community Management                  21,500           21,500           21,500           21,500
     Account................................
General Provisions:
    Storm Damage (Sec. 1109)................  ...............          413,300  ...............          313,000
    Munitions Security and Destruction (Sec.  ...............  ...............  ...............          100,000
     1121)..................................
                                             ===================================================================
      Grand Total Chapter 1.................       65,147,554       64,702,854       65,147,554       64,702,554
----------------------------------------------------------------------------------------------------------------

         Fiscal Year 2004 Appropriations Reporting Requirements

       The conferees agree with the House report on this subject, 
     except that the comprehensive financial analysis and update 
     for fiscal year 2004 should be submitted to the congressional 
     defense committees once, and no later than April 30, 2004.

                          Classified Programs

       Recommended adjustments to classified programs are 
     addressed in a classified annex accompanying this conference 
     report.

                           MILITARY PERSONNEL

       The conference agreement recommends $17,812,860,000 for the 
     military personnel accounts, the amount proposed by the 
     President's request and the Senate, instead of 
     $17,142,860,000 as proposed by the House. The conferees' 
     recommendation will fund incremental costs of pays and 
     allowances for active duty and Reserve personnel deployed in 
     support of Operation Iraqi Freedom, Operation Enduring 
     Freedom, and Operation Noble Eagle through the end of fiscal 
     year 2004.
       The conferees do not agree to transfer $670,000,000 from 
     Military Personnel, Army to Operation and Maintenance, Army, 
     as proposed by the House, to support contracting for civilian 
     security guards to replace Reserve component soldiers who are 
     currently performing security duty for Army installations.

                       OPERATION AND MAINTENANCE

       The conference agreement recommends $39,231,223,000 for the 
     Operation and maintenance accounts, instead of 
     $39,879,623,000 as proposed by the House, and $40,163,623,000 
     as proposed by the Senate. Adjustments to the Operation and 
     maintenance accounts are shown below:

                       [In thousands of dollars]

                                                    Change from request
Operation and Maintenance, Army:
  Unit Level Maintenance........................................155,000
  SAPI Plates, Rapid Fielding Initiative, UXO/EOD Cleanup.......300,000
  Depot Maintenance Second Destination Transportation...........127,600
  Theater Communications.........................................72,000
  AAFES Support for Deployed Forces..............................10,000
  CPA Admin and ops costs (transferred to Title II)............-858,000
Operation and Maintenance, Navy: Excess Increased OPTEMPO, Operations 
  Support Costs................................................-150,000
Operation and Maintenance, Air Force:
  Unjustified Incremental Contingency, Operations Support Costs-350,000
  Excess Inter/Intra-Theater Airlift...........................-132,000
  Excess DPEM...................................................-50,000
Operation and Maintenance, Defense-Wide:
  Counter-Terrorism Train and Equip.............................-50,000
  Reduction to Classified Programs..............................-28,000
  Excess Support to Key Cooperating Nations....................-200,000
  DLA-DPAO.......................................................15,000

                   AAFES Support for Deployed Forces

       The conferees recommend an additional $10,000,000 in 
     Operation and Maintenance, Army only for Army and Air Force 
     Exchange System support to forces deployed for Operations 
     Iraqi Freedom, and Operation Enduring Freedom. The total 
     amount provided in the conference agreement for Army and Air 
     Force Exchange System support to deployed forces is 
     $40,000,000.

                      Rest and Recuperation Travel

       The conferees recommend that of the funds provided in 
     Operation and Maintenance, Army, $55,000,000 be used only for 
     covering the travel costs of troops on rest and recuperation 
     leave. Specifically, these funds shall be used to cover any 
     additional costs incurred by troops returning from the Iraq 
     or Afghanistan theaters to reach their home of record (in the 
     United States, or its territories and commonwealths) from 
     established

[[Page 26426]]

     disembarkation points in the United States. Department 
     officials my use these funds to cover troop travel costs from 
     established disembarkation points to places other than their 
     home of record in a manner consistent with current Department 
     of Defense travel regulations and guidelines. Further, the 
     conferees agree that, to the maximum extent practicable, the 
     commercial airline industry should charge Armed Forces 
     members and their families the lowest available fares for air 
     travel in connection with rest and recuperation leave.

                        Family Advocacy Program

       The conferees recommend that of the funds provided in 
     Operation and Maintenance, Defense-Wide, $32,000,000 be used 
     only for the Family Advocacy Program to address wartime 
     community needs such as family counseling, domestic violence 
     training and prevention programs, and readjustment counseling 
     for military personnel.

                National Guard Family Readiness Program

       The conferees recommend that of the funds provided in the 
     Iraq Freedom Fund, $10,000,000 shall be used only for the 
     Family Readiness Program of the National Guard, which 
     provides information, referral and outreach assistance to 
     military families during the deployment process.

                              PROCUREMENT

       The conference agreement recommends $5,534,704,000 for the 
     Procurement accounts, instead of $5,621,304,000 as proposed 
     by the House and $5,455,304,000 as proposed by the Senate.
       Recommendations for the Procurement accounts are shown 
     below:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                    House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Missile Procurement, Army....................................                0            6,200                0
    Multiple Launch Rocket System............................                0                                 0
Weapons, Tracked Combat Vehicles, Army.......................          101,600          104,000          101,600
    Paladin..................................................                0                                 0
    Rapid Equip Force........................................            6,000                             6,000
    Rapid Fielding Initiative................................           26,200                            26,200
    Enhanced Separate Brigades...............................           11,400                            11,400
    APS-5 Replenishment......................................           58,000           58,000           58,000
Other Procurement, Army......................................        1,250,287        1,078,687        1,143,687
    Logistics Support Equipment..............................           30,500                            30,500
    C2 Equipment.............................................           42,200                            42,200
    Radio Frequency Identification Tags......................            3,400                             3,400
    Technical Collection (Guardrail).........................            8,000                             8,000
    Enhanced Separate Brigades...............................          122,500                           122,500
    Up-armored HMMWVs........................................          177,200                           177,200
    Rapid Equip Force........................................           47,100                            47,100
    Rapid Fielding Initiative................................           76,600                            76,600
    Base Camp Housing Units..................................          344,687                           344,687
    Mobile Search Devices....................................           12,600                            12,600
    Basic Language Translation Service.......................            2,000                             2,000
    Packbots.................................................            5,000                             5,000
    Joint Tactical Terminals.................................           41,100                            41,100
    Joint Communications Support Element.....................            7,500                             7,500
    Classified...............................................           10,300                            10,300
    APS-5 Replenishment......................................          190,600           84,000           84,000
    Theater Stabilized Communications........................           83,000           64,000           83,000
    Portable Radio Jammers...................................           46,000                            46,000
Aircraft Procurement, Navy...................................          158,600          128,600          158,600
    E-2C Outer Wing Panels...................................            1,500                             1,500
    Aircraft Spares..........................................           59,100                            59,100
    EA-6B Outer Wing Panels..................................           70,000                            70,000
    EA-6B Wing Center Section................................           15,000                            15,000
    F-18 Equipment...........................................           13,000                            13,000
Other Procurement, Navy......................................           76,357           76,357           76,357
    C2 Equipment.............................................            5,800                             5,800
    OPN Spares...............................................           27,200                            27,200
    Explosive Ordnance Disposal Equipment....................           24,957                            24,957
    Medical Support Equipment--Fleet Hospitals...............           13,200                            13,200
    Global Broadcast Service (Shipboard).....................            4,500                             4,500
    Classified Program.......................................              700                               700
Procurement, Marine Corps....................................          123,397          123,397          123,397
    M88A2 Recovery Vehicle...................................            8,300                             8,300
    MK48 Light Armored Vehicle (LVS) Mod.....................           13,100                            13,100
    Light Armored Vehicle....................................           23,200                            23,200
    AAV Reliability, Availability, Maintainability Upgrade...           78,797                            78,797
Aircraft Procurement, Air Force..............................           53,972           40,972           53,972
    War Consumables Recap....................................           35,702                            35,702
    Technical Collection (RC-135 and U2).....................           13,000                            13,000
    Aircraft Common Support Equipment........................            5,270                             5,270
Missile Procurement, Air Force...............................           20,450           20,450           20,450
    Predator (Hellfire Missiles).............................            4,850                             4,850
    Classified Programs......................................           15,600                            15,600
Other Procurement, Air Force.................................        3,418,006        3,441,006        3,438,006
    Theater Deployable Communications........................           38,500                            38,500
    Other Logistics Equipment................................           68,700                            68,700
    Medical/Dental Equipment Losses..........................           13,665                            13,665
    CPA Counter Intelligence Support.........................            3,810                             3,810
    Replace Theater Communications...........................           85,000                            85,000
    Aircraft Refueling Vehicles..............................           25,000                            25,000
    Support Equipment........................................           20,306                            20,306
    All-purpose Remote Transport System......................            1,500                             1,500
    Technical Collection (RC-135 and U2).....................                0                                 0
    Red Horse Reconstitution.................................           25,900                            25,900
    Diego Garcia Vehicles....................................           14,625                            14,625
    Classified Programs......................................        3,121,000                         3,121,000
    Classified Adjustment....................................                                             20,000
    Procurement, Defense-Wide................................          418,635          435,635          418,635
    MC-130P Quick Engine Change Kits (SOCOM).................           13,800                            13,800
    MH-53 Gearbox (SOCOM)....................................            7,700                             7,700
    Critical C4I Equipment (SOCOM)...........................           36,600                            36,600
    SOF Soldier Systems (SOCOM)..............................           23,800                            23,800
    SOF Ammunition (SOCOM)...................................           23,900                            23,900
    SOF Intelligence Systems (SOCOM).........................           13,100                            13,100
    Psychological Operations (PSYOP) Equipment (SOCOM).......           14,800                            14,800
    Target Tracking and Locating Devices (SOCOM).............            2,700                             2,700
    Inflatable Antennas......................................            6,500                             6,500
    CENTRIX..................................................           17,700                            17,700
    Information Assurance....................................           16,200                            16,200
    Worldwide Base Stations..................................            6,000                             6,000
    NSC Data Replication (DISA)..............................            3,900                             3,900
    Iraq Communications Backbone (DISA)......................            6,100                             6,100
    CENTCOM Global C2 System (GCCS) Joint Hardware (DISA)....            1,500                             1,500
    Improved Imagery Capability (NIMA).......................           21,600                            21,600
    Decontamination Equipment................................            8,000                             8,000
    Collective Protection....................................           17,535                            17,535
    Classified Programs......................................          177,200          194,200          177,200
                                                              --------------------------------------------------
      Total, Procurement.....................................        5,621,304        5,455,304        5,534,704
----------------------------------------------------------------------------------------------------------------


[[Page 26427]]

                           Up-Armored HMMWVs

       The conferees recommend a total of $239,300,000 for Up-
     armored HMMWVs and associated equipment to support 
     requirements in Iraq. This amount includes $177,200,000 in 
     ``Other Procurement, Army'', as proposed in the budget 
     request, and $62,100,000 from amounts made available in the 
     Iraqi Freedom Fund. The conferees agree that this funding 
     will provide for a total of 1,065 Up-armored HMMWVs which is 
     an increase of 318 above the budget request.

                          Equipment Shortages

       The conferees note that, despite recent efforts by the 
     Department of Defense to address equipment shortages, many 
     individuals and units in the active and reserve forces 
     continue to experience shortages in equipment that would 
     enhance both survivability and mission effectiveness. The 
     conferees believe that it must be the Secretary of Defense's 
     highest priority to eliminate such shortages. Accordingly, 
     the conferees encourage the Secretary of Defense to apply 
     additional funds provided in this Act for the most pressing 
     needs. The conferees also direct the Secretary of Defense to 
     submit quarterly update reports to the congressional defense 
     committees, starting December 31, 2003 through December 31, 
     2004, that identify significant soldier equipment, weapon 
     system, or spare parts shortages in the Iraq and Afghanistan 
     theaters of operation for all major active and reserve 
     component units. These updates also should present the 
     solutions and timetables for procuring and distributing 
     equipment and parts to address any identified shortages.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

       The conference agreement recommends $333,887,000 for the 
     Research, Development, Test and Evaluation accounts, instead 
     of $268,887,000 as proposed by the House and $338,887,000 as 
     proposed by the Senate.
       Recommendations for the Research, Development, Test and 
     Evaluation accounts are shown below:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                    House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Research, Development, Test and Evaluation, Navy.............           34,000           34,000           34,000
    Classified Programs......................................           34,000                            34,000
Research, Development, Test and Evaluation, Air Force........           39,070           39,070           39,070
    Classified Programs......................................           39,070                            39,070
Research, Development, Test and Evaluation, Defense-Wide.....          195,817          265,817          260,817
    Classified Programs......................................          195,817                           260,817
                                                              --------------------------------------------------
      Total, Research, Development, Test and Evaluation......          268,887          338,887          333,887
----------------------------------------------------------------------------------------------------------------

                    GENERAL PROVISIONS--THIS CHAPTER

       The conferees agree to retain and amend section 1101, as 
     proposed by the House, which provides the Secretary of 
     Defense with $3 billion in additional transfer authority, 
     only for funds in this chapter. The Senate included similar 
     language.
       The conferees agree to retain section 1102, as proposed by 
     the House, which provides that funds appropriated in this Act 
     are deemed specifically authorized for the purposes of 
     section 504 of the National Security Act of 1947. The Senate 
     included similar language.
       The conferees agree to retain section 1103, as proposed by 
     the House, which extends the authorization during fiscal year 
     2004 of travel and transportation allowances for family 
     members of service members who are ill or injured on active 
     duty in support of Operation Iraqi Freedom, Operation 
     Enduring Freedom or Operation Noble Eagle; and authorizes the 
     Department to provide civilian clothing for wear by the 
     service member during their hospital stay. The Senate 
     included similar language.
       The conferees agree to retain section 1104, as proposed by 
     the House, which extends the authorization for the Department 
     to make the higher rates of Imminent Danger Pay and Family 
     Separation Allowance to all eligible service members during 
     fiscal year 2004. The Senate included similar language.
       The conferees agree to retain section 1105, as proposed by 
     the House, which provides that adjustments to obligations 
     that would have been properly chargeable to the Defense 
     Emergency Response Fund shall be charged to any current 
     appropriations account of the Department of Defense for the 
     same purpose. The Senate included similar language.
       The conferees agree to retain and amend section 1106, as 
     proposed by the House and Senate, which allows the Department 
     to use funds for supplies, services, transportation, and 
     other logistical support of troops to support military and 
     stability operations in Iraq and directs the Secretary of 
     Defense to provide quarterly reports to the congressional 
     defense committees.
       The conferees agree to retain and amend section 1107, as 
     proposed by the House, which provides $150,000,000 from funds 
     available in ``Operation and Maintenance, Defense-Wide'' to 
     provide training and equipment only to the New Iraqi Army and 
     the Afghan National Army to combat terrorism and support U.S. 
     military operations. The Senate included similar language.
       The conferees agree to retain section 1108, as proposed by 
     the House, which prohibits funds provided in this Act to 
     finance programs or activities denied by Congress, or to 
     initiate a new start program without prior notification to 
     the congressional defense committees. The Senate included 
     similar language.
       The conferees agree to retain and amend section 1109, as 
     proposed by the House, to provide $313,000,000 in funding for 
     Operation and Maintenance and Procurement accounts, as 
     opposed to $413,300,000 as recommended by the House, only for 
     the military services to accomplish recovery and repair made 
     necessary by recent natural disasters including Hurricane 
     Isabel. These funds are allocated as follows:

Operation and Maintenance, Army.............................$47,100,000
Operation and Maintenance, Navy..............................87,600,000
Operation and Maintenance, Marine Corps.......................6,700,000
Operation and Maintenance, Air Force........................169,300,000
Other Procurement, Air Force..................................2,300,000
       Of the amount provided in this section for ``Operation and 
     Maintenance, Air Force'', $6,500,000 is for repair of 
     facilities at the NASA Langley Research Center, including 
     facilities used for Department of Defense research programs.
       The conferees agree to retain section 1110, as proposed by 
     the House, which makes $180,000,000 from funds available in 
     this Act for operation and maintenance for the Commander's 
     Emergency Response Program for military commanders to respond 
     to urgent humanitarian needs in Iraq and Afghanistan.
       The conferees agree to retain section 1111, as proposed by 
     the House, which requires the Secretary of Defense to provide 
     a description of an Analysis of Alternatives for replacing 
     Air Force KC-135 aircraft.
       The conferees agree to retain section 1112, as proposed by 
     the House, which exempts members of the armed forces from the 
     requirement to pay subsistence charges while hospitalized, 
     makes the exemption permanent, and makes the exemption 
     retroactive to September 11, 2001. The Senate included 
     similar language.
       The conferees agree to retain and amend section 1113, as 
     proposed by the Senate, which prohibits use of funds in this 
     Act to alter command responsibility or permanent assignment 
     of forces until 270 days after notification to the 
     congressional defense committees.
       The conferees agree to retain and amend section 1114, as 
     proposed by the Senate, which authorizes administering 
     Secretaries to provide medical or dental screening or care at 
     no cost for all members of the Ready Reserve who are ordered 
     to active duty.
       The conferees agree to retain and amend section 1115, as 
     proposed by the Senate, which provides the TRICARE benefit to 
     inactive Reservists and their family members, if they are 
     eligible for unemployment compensation or not eligible for 
     health care benefits under an employer-sponsored health 
     benefits plan.
       The conferees agree to retain and amend section 1116, as 
     proposed by the Senate, which amends section 1074 of title 
     10, U.S.C. to expand the time period a Reservist would be 
     considered to be on active duty for the purpose of TRICARE 
     eligibility.
       The conferees agree to retain and amend section 1117, as 
     proposed by the Senate, which amends the Transitional 
     Assistance Medical Program (TAMP) benefit program from 60 
     days to 180 days beginning on the date on which the member is 
     separated from active duty.
       These four new provisions (sections 1114, 1115, 1116, and 
     1117) enhance TRICARE access for members of the National 
     Guard and Reserve Components. It is the conferees' intent 
     that these provisions constitute a one-year demonstration 
     program to determine whether a permanent benefit beyond 
     fiscal year 2004 should be authorized.
       The conferees direct the Department of Defense to report to 
     the congressional defense committees no later than May 30, 
     2004 on the implementation of this demonstration program and 
     its associated impact on recruiting and retaining both active 
     and reserve component personnel.
       Based on information provided to the Congress from the 
     Congressional Budget Office, the conferees have been advised 
     that the cost of this demonstration program is approximately 
     $200,000,000. However, the conferees

[[Page 26428]]

     recognize that these are estimates based on projected 
     utilization rates. Accordingly, the conferees assume that not 
     more than $400,000,000 shall be required to implement this 
     demonstration program in fiscal year 2004.
       The conferees further direct the Department of Defense, no 
     later than April 15, 2004, to provide the congressional 
     defense committees the cost estimates of this demonstration 
     program based on actual and projected utilization rates.
       The conferees agree to retain and amend section 1118, as 
     proposed by the Senate, which requires the Department to 
     notify each Reservist who is ordered to active duty in 
     writing of the expected period during which they will be 
     mobilized.
       The conferees agree to retain and amend section 1119, as 
     proposed by the Senate, which provides that authority in 
     section 1314(1) of Public Law 108-11, making funds available 
     to build an Infantry Brigade Rifle Range for the South 
     Carolina National Guard, shall apply to the use of available 
     funds appropriated for fiscal year 2004.
       The conferees agree to include a new provision, section 
     1120, which directs the Secretary of Defense to submit 
     biannual reports on Iraq and Afghanistan to the Congress.
       The conferees agree to include a new provision, section 
     1121, which provides an additional $100,000,000 for securing 
     and destroying conventional munitions in Iraq.

                               CHAPTER 2

                    DEPARTMENT OF HOMELAND SECURITY

                       United States Coast Guard


                           operating expenses

       The conferees agree to provide an additional $23,183,000 
     for ``Operating Expenses'' to repair damages the Coast Guard 
     incurred during Hurricane Isabel.

                  Emergency Preparedness and Response


                            disaster relief

       The conferees agree to provide an additional $500,000,000 
     for disaster relief activities associated with recently 
     declared disasters, such as Hurricane Isabel and the 
     California wildfires.


                            other activities

       Within current authorities, the conferees direct the 
     Emergency Preparedness and Response Directorate to work 
     expeditiously with the Borough of Versailles, Pennsylvania, 
     and the National Energy Technology Laboratory to remediate 
     the problem where high gas readings due to the over 600 
     abandoned gas wells force the evacuation of residents and 
     businesses in Versailles.

                         Science and Technology

       The conferees are aware that the Department of Homeland 
     Security has begun research and development on Man-Portable 
     Air Defense Systems (MANPADS) countermeasures for commercial 
     airliners pursuant to the ``Program Plan for the Development 
     of an Antimissile Device for Commercial Aircraft'' prepared 
     by the Under Secretary for Science and Technology. Upon the 
     completion of research and development, the Department of 
     Homeland Security should consider aircraft enrolled in the 
     Civil Reserve Air Fleet in deployment of countermeasures.

                    GENERAL PROVISION, THIS CHAPTER

       Sec. 1201. The conferees agree to amend the Department of 
     Homeland Security Appropriations Act, 2004 (Public Law 108-
     90) to make Biodefense Countermeasures funding subject to the 
     authorization of the Project Bioshield Act of 2003, upon the 
     enactment of that Act.

                         PROVISIONS NOT ADOPTED

       The conference agreement deletes section 334 of the Senate 
     bill changing the Federal share of the cost of any disaster 
     relief payment for damage caused by Hurricane Isabel.
       The conference agreement deletes section 5008 of the Senate 
     bill on equipping aircraft with countermeasures against the 
     threat of shoulder-fired missiles.

                               CHAPTER 3

                         DEPARTMENT OF DEFENSE

                         MILITARY CONSTRUCTION

                       Items of General Interest

       As a result of the United States' commitment to fighting 
     the Global War on Terrorism, there has been an increase in 
     operational requirements in the Central Command's area of 
     responsibility. The footprint of American military forces has 
     expanded to include the construction and management of 
     military facilities in overseas locations to house service 
     members and to stage operational resources. The conferees 
     direct the Central Command to report to the congressional 
     defense and military construction subcommittees, in both 
     classified and unclassified form, on its master plan for 
     facilities in the Central Command area of responsibility, 
     including the operational requirements and the planned 
     disposition of equipment, aircraft and personnel, no later 
     than December 1, 2003.

                      Military Construction, Army

       The conference agreement appropriates $162,100,000 for 
     Military Construction, Army, instead of $185,100,000 as 
     proposed by the House and $119,900,000 as proposed by the 
     Senate. Of the funds appropriated, $119,900,000 is provided 
     to finance projects required to support the Global War on 
     Terrorism and Operation Iraqi Freedom as follows:

------------------------------------------------------------------------
       Location/facility           Project description         Cost
------------------------------------------------------------------------
Iraq: Al Fallujuh (MEK)........  Power Plant and              $8,000,000
                                  Electrical
                                  Distribution.
Iraq: Baghdad--Victory Base....  Entry Control Points..        4,000,000
Iraq: Baghdad FOB Falcon.......  Power Plant and               7,000,000
                                  Electrical
                                  Distribution.
Iraq: Balad Airfield...........  Theater-wide Postal           7,000,000
                                  Distribution Facility.
Iraq: Balad Airfield...........  Power Plant and              16,000,000
                                  Electrical
                                  Distribution.
Iraq: Balad....................  Base Camp Water               9,800,000
                                  Treatment Plant.
Iraq: Balad....................  Base Camp Wastewater         10,500,000
                                  Treatment Plant.
Iraq: Baghdad--Victory Base....  Power Plant...........       11,500,000
Iraq: Baghdad--Radwaniya Palace  Sensitive                     6,000,000
 Complex.                         Compartmented
                                  Information Facility.
Iraq: Baghdad--Radwaniya Palace  Joint Operations              3,500,000
 Complex.                         Center.
Iraq: Baghdad--Radwaniya Palace  Training Facility.....        2,200,000
 Complex.
Iraq: Taji Military Complex....  Power Plant and              16,500,000
                                  Electrical
                                  Distribution.
Iraq: Tikrit--Camp Speicher....  Power Plant and              15,500,000
                                  Electrical
                                  Distribution.
Worldwide Various..............  Planning and Design...        2,400,000
                                ----------------------------------------
      Total....................  ......................      119,900,000
------------------------------------------------------------------------

       An additional $42,200,000 is provided to repair facilities 
     damaged by Hurricane Isabel at Fort Monroe, Virginia. As 
     proposed by the House, the conferees agree to include bill 
     language that authorizes the use of funds for planning and 
     design and for construction. The conferees recommend a 
     reduction of $23,000,000 from the amount proposed by the 
     House for unspecified minor construction funds because the 
     request was not explained in sufficient detail to justify the 
     appropriation.

                      Military Construction, Navy

       As proposed by the House, the conference agreement 
     appropriates $45,530,000 for Military Construction, Navy, to 
     repair two Naval facilities damaged by Hurricane Isabel. The 
     Senate bill contained no similar provision.

                    Military Construction, Air Force

       As proposed by the House and the Senate, the conference 
     agreement appropriates $292,550,000 for Military 
     Construction, Air Force, to finance various projects around 
     the world in support of the Global War on Terrorism and 
     Operation Iraqi Freedom. As proposed by the House, the 
     conferees agree to include bill language that authorizes the 
     use of funds for planning and design and for construction.

             Family Housing Operation and Maintenance, Army

       The conference agreement appropriates $11,420,000 for 
     Family Housing Operation and Maintenance, Army, instead of 
     $8,151,000 as proposed by the House. The Senate bill 
     contained no similar provision. These funds are provided for 
     storm related damage caused by Hurricane Isabel at Fort 
     Monroe, Fort Eustis, Fort Story, Fort Lee, and Fort Belvoir 
     in Virginia. The conferees agreed to increase the amount 
     proposed by the House in view of additional information 
     received regarding storm damage.

    Family Housing Operation and Maintenance, Navy and Marine Corps

       As proposed by the House, the conference agreement 
     appropriates $6,280,000 for Family Housing Operation and 
     Maintenance, Navy and Marine Corps. The Senate bill contained 
     no similar provision. These funds are provided for storm 
     related damage caused by Hurricane Isabel at various sites in 
     North Carolina and Virginia.

          Family Housing Operation and Maintenance, Air Force

       As proposed by the House, the conference agreement 
     appropriates $6,981,000 for Family Housing Operation and 
     Maintenance, Air Force. The Senate bill contained no similar 
     provision. These funds are provided for storm related damage 
     caused by Hurricane Isabel at Langley AFB, Virginia.

                    GENERAL PROVISION--THIS CHAPTER

       The conference agreement includes one general provision, 
     section 1301, as proposed by the House and modified by the 
     Senate. This provision gives the Secretary of Defense 
     authority to use up to $150,000,000 in operation and 
     maintenance funds for construction projects that support 
     Operation Iraqi Freedom or the Global War on Terrorism. The 
     purpose of the provision is to provide

[[Page 26429]]

     troops in the field flexibility to construct emergency 
     projects using operation and maintenance funds. The provision 
     requires DOD to submit a quarterly report that describes the 
     project, includes supporting documentation, and provides the 
     amount of funds obligated for these purposes. The Senate 
     modification requires DOD to provide Congress with 
     notification of the project 15 days after obligation of 
     funds.

    TITLE II--IRAQ AND AFGHANISTAN RECONSTRUCTION AND INTERNATIONAL 
                               ASSISTANCE

                               CHAPTER 1

                         DEPARTMENT OF JUSTICE

                            Legal Activities


                        General Legal Activities

       The conference agreement includes $15,000,000 for 
     ``Salaries and Expenses, General Legal Activities,'' as 
     proposed by the House, instead of no funds as proposed by the 
     Senate. This funding will support additional Civil Division 
     expenses related to the administration of the September 11th 
     Victims Compensation Program.

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    Diplomatic and Consular Programs

       The conference agreement includes $156,300,000 under this 
     account as proposed by the House, instead of $35,800,000 as 
     proposed by the Senate. This funding will cover costs related 
     to increased diplomatic and border security and opening a 
     mission in Iraq. The conference agreement includes 
     $109,500,000 for requirements related to the provision of 
     consular services; $11,000,000 for increased security 
     measures in Afghanistan; and $35,800,000, available until 
     September 30, 2006, for costs associated with the re-
     establishment of a diplomatic mission in Iraq. The conference 
     agreement rescinds $35,800,000 provided under Public Law 108-
     11, as proposed in both the House and Senate bills.


            Embassy Security, Construction, and Maintenance

       The conference agreement includes $43,900,000 under this 
     account as proposed by the House, instead of no funds as 
     proposed by the Senate. The conference agreement includes the 
     costs of establishing a temporary embassy annex compound in 
     Afghanistan to support embassy surge staffing requirements 
     associated with accelerated assistance activities. The 
     conference agreement assumes that the funding provided under 
     this heading, when combined with funding provided elsewhere 
     in this Act for USAID requirements, will support the 
     acquisition and construction of a collocated temporary 
     embassy annex compound in Afghanistan.


           Emergencies in the Diplomatic and Consular Service

       The conference agreement includes $115,500,000 under this 
     heading, instead of $50,000,000 as proposed by the House and 
     $90,500,000 as proposed by the Senate. The conference 
     agreement includes $50,000,000 for anticipated costs of 
     terrorism rewards, and includes language that allows funds 
     under this account to be transferred to, and merged with, the 
     Diplomatic and Consular Programs account to maintain funding 
     levels for the fiscal year 2004 Border Security program. The 
     conference agreement also includes $65,500,000 for costs 
     associated with the protection of foreign missions and 
     officials in New York City, as well as security and 
     protection costs associated with the 2003 Free Trade in the 
     Americas Ministerial and the 2004 Summit of the 
     Industrialized Nations. In addition, the conference agreement 
     includes language allowing the use of prior year funds under 
     this heading for rewards for an indictee of the Special Court 
     in Sierra Leone. The conferees are concerned that an indictee 
     of the Special Court for Sierra Leone, who has been charged 
     by the Special Court with being ``most responsible'' for the 
     atrocities committed during Sierra Leone's civil war, is not 
     yet in the custody of the Special Court. The conferees direct 
     the Department to use all available means to bring about the 
     handover of this indictee of the Special Court.

                      International Organizations


        Contributions for International Peacekeeping Activities

       The conference agreement includes $245,000,000 for assessed 
     costs of United Nations peacekeeping in Liberia as proposed 
     in the House bill, instead of no funds as proposed by the 
     Senate.

                             RELATED AGENCY

                    Broadcasting Board of Governors


                 International Broadcasting Operations

       The conference agreement includes $40,000,000 under this 
     heading as proposed by the House, instead of no funds as 
     proposed by the Senate. The amount provided in the conference 
     agreement shall be only for the initiation of Middle East 
     Television Network broadcasting to Iraq.

                    GENERAL PROVISION--THIS CHAPTER

       The conference agreement includes language waiving 
     provisions of existing legislation that require 
     authorizations to be in place prior to the expenditure of any 
     appropriated funds.

  FOREIGN OPERATIONS, EXPORT FINANCING, RELATED AGENCIES APPROPRIATIONS

                               CHAPTER 2

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

   Operating Expenses of the United States Agency for International 
                              Development

       The conference report recommends $40,000,000 for 
     ``Operating Expenses of the United States Agency for 
     International Development'', which includes $1,900,000 for 
     the United States Agency for International Development 
     (USAID), Office of Inspector General. This amount for 
     Operating Expenses is the same as the House and Senate 
     levels. The level for the Office of Inspector General is 
     $2,100,000 less than the Senate bill; the House did not 
     address this matter. The managers have included language 
     reserving these funds for support of relief and 
     reconstruction in Afghanistan, including short-term costs 
     associated with facilities required by the USAID in the 
     existing embassy compound or in Department of Defense 
     facilities elsewhere in Kabul until an interim, secure 
     compound adjacent to the embassy is available. It is the 
     managers' intention that embassy facilities and vehicles 
     funded by USAID be used primarily by USAID personnel, and be 
     available for other agencies only with the prior written 
     concurrence of the USAID mission director in Kabul and, when 
     feasible, on a reimbursable basis.
       Should United States military air transport remain scarce 
     or unavailable to support reconstruction in Afghanistan, and 
     to the extent required by security conditions in the field, a 
     portion of this appropriation may be used for dedicated 
     contract air service within Afghanistan and access to 
     neighboring countries. The conferees expect the Department of 
     State Coordinator for Afghan Assistance and USAID to consult 
     with the Committees prior to obligating funds for this 
     purpose.
       The conference report provides for operating expenses of 
     USAID in Iraq elsewhere in this chapter.

                        Capital Investment Fund

       The conference report recommends $16,600,000 for the 
     Capital Investment Fund of the United States Agency for 
     International Development to remain available until expended, 
     instead of $60,000,000 as proposed by the Senate. The House 
     bill did not address this matter.
       The conferees have provided full funding for an interim 
     secure facility in Kabul, Afghanistan, primarily for the use 
     of United States Agency for International Development, 
     Department of State, and other federal agencies that are 
     implementing and evaluating United States reconstruction and 
     security assistance for Afghanistan.
       The conference agreement includes language requiring the 
     Administrator of the United States Agency for International 
     Development to assess fair and reasonable rental payments for 
     the use of space by employees of other United States 
     Government agencies in buildings constructed using funds 
     appropriated under this heading, and provides that such 
     rental payments shall be deposited into this account as an 
     offsetting collection. Such rental payments shall be 
     available for obligation only pursuant to the regular 
     reprogramming notification procedures of the Committees on 
     Appropriations.

                  Iraq Relief and Reconstruction Fund


                     (INCLUDING TRANSFERS OF FUNDS)

       The conference report recommends $18,649,000,000, to remain 
     available until September 30, 2006, for the ``Iraq Relief and 
     Reconstruction Fund'' (the Fund), the same level as 
     recommended by the House and $200,000,000 above the Senate. 
     This figure represents a reduction of $1,655,000,000 below 
     the request and an increase of $16,174,000,000 above the 
     level provided in the fiscal year 2003 Emergency Wartime 
     Supplemental Appropriations Act when this account was 
     created. The supplemental request proposed an appropriation 
     of $20,304,000,000 to remain available until expended.
       The conference report provides $1,890,000,000 for the oil 
     infrastructure function instead of $2,100,000,000 as proposed 
     by the House and $1,900,000,000 as proposed by the Senate.
       The following table provides amounts for functional 
     categories and programs within categories. The total amount 
     for these functional categories is reflected in the bill 
     language as proposed by both the House and Senate. The 
     following table provides the baseline for the financial plan 
     required in section 2207 of this Act.

[[Page 26430]]



                  Iraq Relief and Reconstruction Fund

               (Budget authority, dollars in millions)\1\
------------------------------------------------------------------------
                                          Supplemental      Conference
       Category and description             request         agreement
------------------------------------------------------------------------
Security and law enforcement:
    Police training and technical                   950              950
     assistance.......................
    Traffic police....................               50  ...............
    Border Enforcement................              150              150
    Facilities Protection Services....               67               67
                                       ---------------------------------
      Subtotal, Law enforcement.......            1,217            1,167
                                       =================================
    Establishment of the New Iraqi                2,000            2,000
     Army (NIA).......................
        (NIA Facilities)..............            (745)            (745)
        (NIA Equipment)...............            (879)            (879)
        (NIA Operations and Training).            (375)            (375)
    Iraq Civil Defense Corps..........               76               76
        (Operations and Personnel)....           (58.4)           (58.4)
        (Equipment)...................           (17.2)           (17.2)
                                       ---------------------------------
          Subtotal, National Security.            2,076            2,076
                                       =================================
          Total, Security and Law                 3,293            3,243
           Enforcement................
                                       =================================
Justice, Public Safety Infrastructure
 and Civil Society:
    Witness Protection Program........              100               75
    Other technical investigative                    10               10
     methods..........................
    Penal facilities..................              400              100
    Reconstruction and modernization                109              109
     of detention facilities..........
    Facilities protection, mine                     500              400
     removal, fire service, and public
     safety facility and equipment
     repairs..........................
        (Demining)....................             (61)             (61)
    Public safety training and                      274              199
     facilities.......................
    National Security Communications                150               90
     Network..........................
    Investigations of crimes against                100               75
     humanity.........................
    Judicial security and facilities..              200              150
    Democracy building activities.....  ...............              100
    United States Institute of Peace..  ...............               10
                                       ---------------------------------
      Total, Justice, Public Safety               1,843            1,318
       Infrastructure and Civil
       Society........................
                                       =================================
Electric Sector:
    Generation........................            2,900            2,810
    Transmission......................            1,550            1,550
    Network infrastructure............            1,000            1,000
    Automated monitoring and control                150              150
     system...........................
    Institutional strengthening.......               25  ...............
    Security..........................               50               50
                                       ---------------------------------
      Total, Electric Sector..........            5,675            5,560
                                       =================================
Oil Infrastructure:
    Infrastructure....................            1,200            1,200
    Emergency supplies of refined                   900              690
     petroleum products...............
                                       ---------------------------------
      Total, Oil Infrastructure.......            2,100            1,890
                                       =================================
Water Resources and Sanitation:
    Potable water.....................            2,830            2,830
    Water conservation................               30               30
    Sewerage..........................              697              675
    Solid waste management/trash                    153  ...............
     trucks...........................
    Other solid waste management......  ...............               22
                                       ---------------------------------
      Subtotal, Public Works Projects.            3,710            3,557
                                       =================================
    Pumping stations and generators...              150              150
    Irrigation and drainage systems...              130              130
    Major irrigation projects.........              130              130
    Dam repair, rehab, and new                      125              125
     construction.....................
    Umm Qasr to Basra water pipeline                200              200
     and treatment plant..............
    Marsh projects....................              100  ...............
    Basra Channel Flushing............               40               40
                                       ---------------------------------
      Subtotal, Water Resources                     875              775
       projects.......................
                                       =================================
      Total, Water Resources and                  4,585            4,332
       Sanitation.....................
                                       =================================
Transportation and Telecommunications
 Projects:
    Airports..........................              165              165
    Umm Qasr Port rehab...............               45               45
    Railroad rehab and restoration....              303              300
    Iraqi Telecom and Postal                        124              100
     Corporation......................
        (Postal IT ZIP Codes).........              (9)              (-)
    Iraqi Communications systems......              109               95
        (Business practices for Iraqi              (10)              (-)
         TV and radio)................
        (Numbering scheme911                        (4)              (-)
         initiative)..................
    Iraqi Communications operations...               89               75
    Undistributed reduction,            ...............             -280
     transportation and
     telecommunications...............
                                       ---------------------------------
      Total, Transportation and                     835              500
       Telecommunications Projects....
                                       =================================
Roads, Bridges, and Construction:
    Housing construction..............              100  ...............
    Public buildings construction and               130              130
     repair...........................
    Roads and bridges.................              240              240
                                       ---------------------------------
      Total, Roads, Bridges, and                    470              370
       Construction...................
                                       =================================
Health care:
    Nationwide hospital and clinic                  393              493
     improvements\2\..................
    Equipment procurement and                       300              300
     modernization....................
    Initiate 700m Basrah hospital                   150  ...............
     project..........................
    Health care partnerships..........                7  ...............
                                       ---------------------------------
      Total, Health Care..............              850              793
                                       =================================
Private Sector Development:
    American-Iraqi Enterprise Fund....              200  ...............

[[Page 26431]]

 
    Expanded network of Employment                    8                8
     Centers..........................
    Training..........................              145              100
    Micro-Small-Medium Enterprises....  ...............               45
                                       ---------------------------------
      Total, Private Sector                         353              153
       Development....................
                                       =================================
Education, Refugees, Human Rights,
 Democracy, and Governance
    Migration and Refugee Assistance..              105              105
    Local Information Centers.........               90  ...............
    Property Claims Tribunal..........               30               30
    Banking system modernizations.....               30               30
    Business training courses.........               20  ...............
    Human rights......................               15               15
    Education.........................  ...............               90
    Civic programs....................               10               10
                                       ---------------------------------
      Total, Education, Refugees,                   300              300
       Human Rights, and Governance...
                                       =================================
Transferfinancing.....................  ...............              210
                                       =================================
      Total, Iraq Relief and                     20,304          18,649
       Reconstruction Fund............
------------------------------------------------------------------------
\1\Figures in parenthesis are included in amounts above.
\2\Includes $50 million for pediatric facility in Basra.

       The table above indicates programs that were supported in 
     the House and Senate and those that raised questions and 
     concerns and were reduced or eliminated, such as the 
     procurement of trash trucks, development of business courses, 
     zip code and 911 projects, housing projects, and the 
     construction of two prisons for $400,000,000 at $50,000 per 
     bed.
       The conferees have included bill language providing that 
     the Iraq Relief and Reconstruction Fund shall be used to 
     protect and promote public health and safety, including the 
     arrest, detention and prosecution of criminals and 
     terrorists.
       The conference report includes bill language, as proposed 
     by the House that allows, but limits reallocations between 
     functional categories, so that any category can be reduced by 
     not more than 10 percent or increased by more than 20 
     percent. Acknowledging the unique circumstances in Iraq, the 
     conferees have included language that the President may 
     increase one such allocation by up to an additional 20 
     percent in the event of unforeseen or emergency 
     circumstances. Transfers and reallocations between program, 
     project and activities in the table above, if necessary, 
     would be made subject to the standard notification procedures 
     of the Committees on Appropriations. The conferees note that 
     within the functional categories none of the funds provided 
     are available to support any program, project or activity for 
     which funds have been denied or restricted unless the 
     Appropriations Committees are notified 15 days in advance and 
     approve such reprogramming of funds.
       Under section 2207 of the general provisions of this 
     chapter, the conference report includes a requirement by the 
     Office of Management and Budget, in consultation with the CPA 
     and the Committees on Appropriations, to submit a financial 
     plan beginning on January 5, 2004 and quarterly thereafter. 
     This financial plan is similar to that proposed by the House 
     under the heading ``Iraq Relief and Reconstruction Fund''.
       The conferees have reinstated bill language, enacted in the 
     fiscal year 2003 Iraq Relief and Reconstruction Fund but not 
     included in the supplemental request, which specifies 
     agencies that may receive apportionment from the Fund. 
     Consistent with previous language, the conference report 
     again lists the Department of Defense, the Department of 
     Health and Human Services, the Department of State, the 
     Department of Treasury and the United States Agency for 
     International Development. The managers have added the 
     Coalition Provisional Authority (CPA) to this list, and allow 
     the CPA to receive direct apportionment of IRRF funds for the 
     first time, with the understanding that the CPA establishes a 
     Chief Financial Officer operating in accordance with the 
     responsibilities and functions specified in the Chief 
     Financial Officer Act .
       The conferees have included bill language, similar to that 
     in the Senate bill, that requires the Administrator of the 
     CPA to seek to ensure that programs in Iraq comply with the 
     ``Policy Paper: Disability.''
       The conference agreement includes a provision, similar to 
     one in P.L. 108-11, which requires assistance to be made 
     available to Iraqi civilians who have suffered losses as a 
     result of military operations. The managers support medical, 
     rehabilitation, shelter, microcredit, and other appropriate 
     assistance to these individuals and expect all relevant 
     agencies and organizations to coordinate efforts in providing 
     this assistance.
       The conferees have provided $29,000,000 for the ongoing 
     operating costs of USAID and $6,000,000 for the State 
     Department Bureau of International Narcotics Control and Law 
     Enforcement. The managers expect the Office of Management and 
     Budget to ensure that agencies supporting the CPA and the 
     reconstruction effort in Iraq are fully financed for 
     administrative expenses through the funds appropriated in the 
     Iraq Relief and Reconstruction Fund, in an amount equal to up 
     to 10 percent of programs administered. The conference report 
     also includes bill language providing that up to 1 percent of 
     the total appropriated for the Fund may be transferred to 
     ``Operating Expenses of the Coalition Provisional 
     Authority.''
       The conference agreement includes bill language, similar to 
     that included in House and Senate bills that the CPA shall 
     work, in conjunction with relevant Iraqi officials, to ensure 
     that a new Iraqi constitution preserves full rights to 
     religious freedom and tolerance of all faiths. The conferees 
     also expect that the CPA will work with Iraqis to include the 
     guarantee of a number of other fundamental rights and 
     individual freedoms, particularly basic human rights that 
     were violated or denied during the tyrannical regime of 
     Saddam Hussein.
       The conference agreement includes language similar to that 
     contained in the Senate bill providing $100,000,000 for 
     democracy building activities in Iraq. The managers endorse 
     Senate report language on the use of these funds, and believe 
     that elections are essential to restoring Iraqi sovereignty. 
     The conferees expect the Committees on Appropriations to be 
     consulted on the use of democracy building and governance 
     funds in Iraq. The conference report also includes bill 
     language providing $10,000,000 for the United States 
     Institute for Peace for activities to support peace 
     enforcement, peacekeeping and post-conflict peacebuilding.
       The managers include $70,000,000 for education $10,000,000 
     to support women's programs, and endorse Senate report 
     language recommending $20,000,000 for media outreach 
     activities in Iraq.
       Finally, the managers have provided for the transfer of 
     $210,000,000 to support other high priority foreign 
     assistance programs, including $100,000,000 for Jordan, 
     $100,000,000 for Liberia, and $10,000,000 for Sudan.

       Operating Expenses of the Coalition Provisional Authority

       The conference report recommends $983,000,000 for 
     ``Operating Expenses of the Coalition Provisional Authority'' 
     under this new heading as proposed by the House, instead of 
     providing for administrative costs of the Coalition 
     Provisional Authority (CPA) in Iraq within the total amount 
     under the heading ``Operation and Maintenance, Army'' as 
     requested in the supplemental request and included in the 
     Senate bill. The conference agreement provides an amount that 
     is $125,000,000 above the House bill, reflecting $75,000,000 
     for the expenses of a new CPA Inspector General and office as 
     provided in Title III of this Act, and $50,000,000 for 
     reporting and monitoring requirements and other supporting 
     costs. The conferees have included language to ensure that 
     the Department of Defense is able to continue to furnish 
     assistance and services and any other support to the CPA.
       The CPA currently oversees the reconstruction of Iraq, 
     especially the non-military programs described in the Iraq 
     Relief and Reconstruction Fund section of this report, from 
     building waste water treatment systems to renovating health 
     care centers to training law enforcement officials to 
     providing computer training for Iraqi youth.
       The conference report acknowledges CPA's leadership and 
     role. The managers expect to be kept updated on the progress 
     of reconstruction efforts, roles and missions of supporting 
     agencies, and implementation of programs funded by this Act.
       The managers note that transparency is crucial for ensuring 
     efficient, accountable reconstruction activities in Iraq. 
     Therefore, this recommendation provides for the first time a 
     direct operating appropriation for the CPA, and, under the 
     Iraq Relief and Reconstruction Fund, the organization is 
     given the authority to receive direct apportionment of

[[Page 26432]]

     program/project funds. The conferees expect that the Office 
     of Management and Budget will transmit to the Committees on 
     Appropriations by January 5, 2004, a budget justification for 
     this new Operating Expenses account, including information 
     required by OMB Circular A-11, such as standard financial 
     information, program and financing and object classification 
     schedules, and personnel summary data.
       The conference report does not alter the reporting 
     relationship of the Administrator of the CPA to the President 
     through the Secretary of Defense. However, it does further 
     transparency by clarifying the operational cost of United 
     States reconstruction efforts in Iraq as part of United 
     States foreign assistance, and the scope of the non-military 
     reconstruction efforts.
       Since the CPA is less than a year old and it is possible 
     that the organization could require additional operational 
     resources during this year, the managers also have included 
     bill language in the Iraq Relief and Reconstruction Fund that 
     provides authority, if needed, to transfer up to 1 percent 
     for CPA's operating expenses.

                         Economic Support Fund

       The conference report recommends $872,000,000 for the 
     ``Economic Support Fund'' as proposed by the House, instead 
     of $422,000,000, as proposed by the Senate, primarily for 
     reconstruction in Afghanistan. These funds would remain 
     available for obligation until December 31, 2004.
       The recommendation reserves $672,000,000 for accelerated 
     assistance for Afghanistan. The managers note the increasing 
     terrorist activity against the Government of Afghanistan, 
     international Coalition forces, and private non-governmental 
     organizations providing relief and reconstruction assistance 
     within Afghanistan, and concludes that the pace of 
     reconstruction, as well as that of security assistance 
     provided elsewhere in this chapter, must respond to the 
     tenuous security conditions, especially in the southern and 
     eastern provinces of Afghanistan.
       The conferees recognize that further expansion of the 
     mandate of the International Security Assistance Force (ISAF) 
     can help improve the security environment in Afghanistan, and 
     strongly encourage the Administration to support such 
     expansion of ISAF.
       The conferees fully support most of the urgent programs 
     included in the budget justification for Afghanistan civil 
     reconstruction, including roads, education, health, power 
     generation/private sector development, and provincial 
     reconstruction teams. The conference agreement provides 
     $60,000,000 for Afghan women and girls to ensure that 
     programs, projects and activities funded in this Act include 
     the participation of women and advance the social, economic, 
     and political rights and opportunities of women in 
     Afghanistan.
       The State Department Coordinator of Assistance to 
     Afghanistan and the Administrator of USAID are requested to 
     provide the Committees not later than December 15, 2003, a 
     fiscal year 2004 strategic and financial plan, including 
     projected quarterly obligations by sector and major project 
     (in excess of $250,000), for all reconstruction and related 
     activities in Afghanistan undertaken with funds provided by 
     prior Acts, this Act and the Foreign Operations, Export 
     Financing and Related Programs Appropriations Act, 2004.
       The conference report recommends $181,000,000 for major and 
     provincial roads, an endeavor that is critical to both 
     economic development and security in Afghanistan. The 
     conferees commend those engaged in the challenging project to 
     reconstruct and pave the major Kabul-Kandahar road by the end 
     of 2003, recognize the dire security threat from neo-Taliban 
     forces along its route, and urge United States Armed Forces 
     in Afghanistan to increase surveillance of the construction 
     areas and support for the private and Afghan national police 
     security forces protecting the Kandahar road. The additional 
     funding will sustain the momentum of the Kabul-Kandahar 
     project, by financing secondary and tertiary road 
     development, primarily in the previously neglected southern 
     and central regions.
       The conference report provides an additional $95,000,000 
     for schools and education in Afghanistan, $55,000,000 above 
     the request, and $95,000,000 for private sector development 
     and power generation, $50,000,000 above the request. The 
     funds are expected to support market centers-industrial 
     parks, land titling, natural resources assessment and power 
     generation projects. The conference agreement does not 
     include $10,000,000 for a venture capital fund. The 
     conference agreement provides $65,000,000 to repair, 
     rehabilitate and procure electric generation and distribution 
     infrastructure in Afghanistan. In addition to the power 
     requirements of Kabul already requested, the conference 
     report has provided additional funds to rehabilitate and 
     increase power generation from the Kajaki Dam facility that 
     is essential to successful reconstruction in the politically 
     sensitive Kandahar and Helmand provinces.
       The conference report recommends an additional $70,000,000 
     for support to the Government of Afghanistan (GoA). Of the 
     recommended $70,000,000, not less than $25,000,000 will meet 
     key GoA infrastructure needs, especially telecommunications 
     between Kabul and the provinces. The Ministry of Finance will 
     use not less than $10,000,000 to improve customs collections 
     at Afghanistan's 11 official border posts and remitting of 
     customs to the ministry on a timely basis. An indeterminate 
     amount will be needed to augment other donor contributions to 
     an international trust fund to pay government salaries until 
     economic growth increases government revenue sufficiently to 
     meet salary costs.
       The conference report recommends $69,000,000 for elections 
     and improved governance in Afghanistan, $12,000,000 above the 
     request. In governance, the conference report recommends that 
     activities be undertaken to promote private investment and 
     trade capacity building. The managers also support Senate 
     report language recommending $15,000,000 for media outreach 
     activities in Afghanistan.
       The conferees note that women in Afghanistan continue to 
     struggle to achieve basic rights, which they were denied 
     under the Taliban. Women were severely affected by their 
     inability during those times to participate in local and 
     national governance. The conferees have agreed to provide 
     $60,000,000 for technical and vocational education, programs 
     for women and girls against sexual abuse and trafficking, 
     shelters for women and girls, humanitarian assistance for 
     widows, support of women-led NGOs, programs to disseminate 
     information about the rights of women, and to provide women's 
     rights training to military, police and legal personnel. 
     Significant funding above the Administration's request has 
     been added for Afghanistan to accelerate reconstruction 
     efforts. Funds have been made available for these specific 
     purposes to ensure that programs that address these critical 
     needs are adequately funded.
       Where possible, such programs should be implemented by 
     local civil society groups, and especially local women's 
     groups. The managers expect USAID to provide technical and 
     other assistance to strengthen the capacity of these groups 
     and to support their activities. The conferees are concerned 
     that without greater attention to the specific challenges 
     facing women and girls in Afghanistan, the country's 
     prospects for broad-based economic growth and democratic 
     development will be sharply reduced.
       The managers have included bill language requiring that 
     obligation of funds made available by this Act or by prior 
     appropriations Acts for senior advisors to the Chief of 
     Mission in Kabul be subject to notification. This provision 
     does not apply to U.S. officials required to design and 
     manage a massive Afghanistan assistance program, the actual 
     number of which is presently insufficient due to a shortage 
     of housing and office space. Ample funds are provided in this 
     Act to construct an interim facility to accommodate 
     additional assistance and security personnel in Kabul. The 
     managers urge the Departments of State and Defense and USAID 
     to immediately accelerate efforts to provide adequate office 
     and housing space required for the effective management and 
     oversight of activities funded in this Act, and keep the 
     Committees fully informed of progress toward deploying an 
     adequately staffed mission in Kabul.
       The conference agreement provides $50,000,000, as 
     requested, for projects directly involving requirements 
     identified by provincial reconstruction teams (PRTs) in eight 
     to twelve provinces. In addition, $8,000,000 is provided for 
     dedicated air service, armored vehicles, and other security 
     enhancements for the civilians deployed to the PRTs and other 
     assistance managers in Afghanistan.
       The conferees support an additional $49,000,000 for health 
     services in Afghanistan. If a permissive security situation 
     is extended throughout all of Afghanistan during 2004, the 
     additional health and road funds will accelerate achievement 
     of the objective of bringing all Afghans within 4 hours' 
     travel of a health clinic.
       The managers expect not less than $10,000,000 in ESF 
     assistance to be made available through appropriate 
     humanitarian organizations for additional food, clothing, 
     heating and cooking fuel, emergency shelter materials, and 
     other basic necessities for displaced Afghans in and around 
     Kabul.
       The conference agreement recommends an initial $30,000,000 
     for disarmament, demobilization and reintegration (DDR) 
     projects, $30,000,000 below the request. The managers note 
     that Japan has already provided full funding for the initial 
     pilot projects in Northern Afghanistan that will help 
     determine the feasibility of DDR projects prior to the 
     training and deployment of a multi-ethnic Afghan National 
     Army that is firmly under civilian Afghan control. The 
     managers believe that Japan and other donors will make 
     additional contributions to DDR projects if the pilot effort 
     is a success and is replicable in other regions.
       The managers also recommend that $23,000,000, not included 
     in the request, be provided for water projects in 
     Afghanistan. Because of the essential role of irrigation in 
     agriculture, and the lack of potable water in many urban 
     areas and small towns, the managers request USAID to report 
     not later than January 15, 2004 on the feasibility of 
     expanding rural and urban water projects in Afghanistan.
       The managers take note of the outstanding jobs that the men 
     and women of USAID, the

[[Page 26433]]

     Departments of Defense and State and other federal agencies 
     supporting the Embassy in Kabul and Afghanistan's 
     reconstruction have accomplished under the most difficult of 
     circumstances.
       As the cooperation of the Government of Pakistan is vital 
     to United States and Coalition efforts to build a stable 
     Afghanistan, the conference agreement includes language 
     proposed by the President to allow up to $200,000,000 from 
     ``Economic Support Fund'' to be made available for the 
     subsidy cost of modifying direct loans and guarantees 
     previously issued for Pakistan. The conference report 
     includes the $200,000,000, subject to a determination by the 
     President that the Government of Pakistan is cooperating with 
     the United States in the global war on terrorism.
       The conference agreement also provides for the transfer to 
     the Economic Support Fund from the Iraq Relief and 
     Reconstruction Fund of $100,000,000 for assistance for 
     Jordan.

              International Disaster and Famine Assistance


                     (including transfers of funds)

       The conference report recommends $110,000,000 for 
     International Disaster and Famine Assistance for Liberia and 
     Sudan, instead of $100,000,000 as proposed by the House or 
     $200,000,000 under the heading ``Emergency Fund for Complex 
     Foreign Crises'' as proposed by the Senate.
       The managers are very concerned about the humanitarian 
     crisis in Liberia, where approximately 800,000 refugees and 
     internally displaced persons are living in dire conditions. 
     The managers have provided $200,000,000 in ``International 
     Disaster and Famine Assistance'' to address this situation. 
     Of this amount, $100,000,000 is made available by transfer 
     from the ``Iraq Relief and Reconstruction Fund''.
       The managers are aware of the important developments that 
     have occurred in Sudan in an attempt to end more than 20 
     years of civil war. The conference agreement provides 
     $20,000,000 in ``International Disaster and Famine 
     Assistance'' to bolster these efforts. Of this amount, 
     $10,000,000 is made available by transfer from the ``Iraq 
     Relief and Reconstruction Fund''.
       As other funds are available to respond to natural 
     disasters abroad, the conference agreement limits the 
     circumstances under which these funds may be obligated to 
     those where the President determines that the proposed United 
     States response to a complex foreign crisis is in the 
     national interest and essential to efforts to reduce 
     international terrorism.
       The conference agreement includes a provision authorizing 
     the transfer of up to one half of one percent of certain 
     other funds to this account. All proposed obligations made 
     available under this heading are made subject to the regular 
     notification procedures of the Committees on Appropriations.

                          DEPARTMENT OF STATE

          International Narcotics Control and Law Enforcement

       The conference report recommends $170,000,000 for 
     ``International Narcotics Control and Law Enforcement'', as 
     proposed by the House instead of $120,000,000 as proposed by 
     the Senate, for accelerated assistance for Afghanistan. These 
     funds would remain available for obligation until December 
     31, 2004.
       The conferees are gravely concerned about the increasing 
     terrorist activity against the Government of Afghanistan and 
     private non-governmental organizations providing relief and 
     reconstruction assistance within Afghanistan. The capacity of 
     Afghan security forces to protect their own government and 
     international reconstruction efforts must be expanded as 
     rapidly as feasible, and the increased funding responds to 
     that urgent requirement.
       The conferees note the leadership role of Germany, the 
     United Kingdom and Italy in the police training, counter-
     narcotics and judicial reform sectors, respectively, and 
     encourage each of these Coalition members to accelerate its 
     assistance efforts in Afghanistan.
       In order to respond to this rapidly evolving situation, the 
     conference agreement provides $160,000,000 to accelerate the 
     training and equipping of the Afghan National Police and 
     Border Police and to increase counter-narcotics law 
     enforcement capacity. In addition, $10,000,000 is provided 
     for the training of prosecutors, court officers and the 
     Afghan judiciary. The managers intend that all assistance to 
     Afghanistan be conducted on a basis of non-discrimination 
     among its ethnic groups and include special emphasis on the 
     rights of women and minorities.

    Nonproliferation, Anti-Terrorism, Demining, and Related Programs

       The conference report recommends $35,000,000 for 
     ``Nonproliferation, Anti-Terrorism, Demining and Related 
     Programs'' as proposed by both the Senate and the House. This 
     level would support anti-terrorism training programs and 
     equipment needs in Afghanistan, to continue the work of 
     disarming the staggering number of mines throughout the 
     country, and to provide in-country support for the protection 
     of Afghan President Karzai.

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

                   Foreign Military Financing Program

       The conference report includes $287,000,000 for the 
     ``Foreign Military Financing Program'', instead of 
     $222,000,000 as proposed by the Senate and $297 million as 
     proposed by the House, for accelerated security assistance on 
     a non-repayable basis for Afghanistan. These funds would 
     remain available for obligation until September 30, 2004. The 
     rapid training and deployment of an ethnically balanced, 
     professional national army for Afghanistan is essential to 
     the success of Coalition efforts to promote a stable and 
     peaceful Afghanistan.
       The managers encourage the President, the Secretary of 
     State and the Secretary of Defense to continue to remind the 
     Government of Afghanistan that United States military 
     assistance is provided to build a new Afghanistan army that 
     is professional, multi-ethnic, and loyal to the civilian 
     leadership in the central government. Failure of the 
     Government of Afghanistan to continue moving rapidly toward 
     this common objective should not be rewarded with continuing 
     military assistance by any agency of the United States 
     Government to armed militias or army units that do not share 
     these objectives.
       To this end, the conferees request the Secretary of State, 
     in consultation with the Secretary of Defense, to provide it 
     with periodic reports on the progress of the new Afghan army, 
     meeting the criteria set forth in House Report 108-312.

                        Peacekeeping Operations

       The conference report recommends $50,000,000 for 
     ``Peacekeeping Operations'' as proposed by both the Senate 
     and the House. This level would support multilateral 
     peacekeeping needs in Iraq and Afghanistan.

                    GENERAL PROVISIONS--THIS CHAPTER

       The managers recognize that debt incurred under the Saddam 
     Hussein regime presents a potential challenge to the 
     country's development. However, this supplemental 
     appropriations act is intended to meet emergency needs, and 
     the managers are of the opinion that paying foreign debtors 
     out of United States funds is not among those needs. The 
     conference report includes section 2201, a general provision 
     included in the House bill and similar to the Senate bill, 
     that prohibits the use of funds appropriated in this Act, or 
     in the 2003 Iraq Supplemental Appropriations Act (P.L. 108-
     11), to be used to pay for any debt entered into by the Iraqi 
     government before the defeat and overthrow of Saddam Hussein. 
     Nothing in this provision, however, should be construed as 
     discouraging the Departments of State and Treasury from 
     working with lenders in reducing and restructuring Iraq's 
     debt burden. The House addressed this matter in section 2201 
     and the Senate in section 2311.
       Both the House and Senate bills included a number of 
     provisions intended to require greater adherence to full and 
     open competition. Both the House and Senate bills provide 
     that when other than full and open competition is pursued, if 
     necessary, then the agency using other than full and open 
     competitive procedures must inform the Congress and the 
     American public.
       It is in the best interests of most involved, including the 
     United States business sector and the Iraqi people, to use 
     open and full competition for all but a very limited number 
     of contracts. For situations in which ensuring such 
     competition might be inappropriate--such as in cases of an 
     emergency--the managers believe that existing federal 
     regulations allow for adequate flexibility.
       Therefore, the conference agreement includes language in 
     sections 2202 and 2203 to limit the use of non-competitive 
     contracts in the ``Iraq Relief and Reconstruction Fund'' in 
     this Act and Public Law 108-11. This language is in lieu of a 
     number of ``competition in contracting'' provisions in both 
     the House and Senate bills. This conference agreement 
     preserves the prerogative to waive the requirement for full 
     and open competition in certain circumstances, as outlined in 
     applicable federal procurement regulations. The provisions 
     require that such a waiver be with the written approval of 
     the Administrator of the Coalition Provisional Authority and 
     the head of an agency of the United States Government that 
     awards and manages the contract, and that information on the 
     contract and the justification of the waiver be transmitted 
     to the appropriate committees of Congress and be made 
     available to the public. The certifications cannot be 
     delegated, and must be transmitted to the appropriate 
     congressional committees and made available to the public 7 
     days before the non-competitive contract is awarded. The 
     provision pertains to the amendment, extension or 
     modification of contracts entered into prior to the enactment 
     of this Act using other than full and open competitive 
     procedures, including so called ``limited competition'' 
     contracts. This is intended to require notification of 
     significant changes in scope or increased funding above award 
     ceilings for contracts that were previously awarded under 
     ``limited competition.'' Contracts below a value of 
     $5,000,000 are exempted from these requirements as are small 
     businesses as defined in 15 USC 631 et seq. The House 
     addressed contracting issues in sections 2202, 2203, and 3007 
     and the Senate addressed these issues in section 5003.

[[Page 26434]]

       In sections 2204 and 2205, the managers recommend language 
     similar to that requested by the President to clarify, extend 
     and broaden authorities provided in Public Law 108-11. These 
     authorities suspend relevant provisions of the Iraq Sanctions 
     Act and make inapplicable to Iraq certain provisions of law 
     that restrict assistance to countries that support terrorism. 
     They also authorize the export of arms to specific Iraqi 
     security forces. Instead of making permanent these 
     authorities as requested by the President, the conference 
     report extends them for another year. The House and Senate 
     bills each provided similar language.
       Although the President, on May 7, 2003, exercised his 
     authority under section 1503 in Public Law 108-11 as 
     originally enacted to make permanently inapplicable to Iraq 
     any provisions of law that apply to countries that support 
     terrorism and to suspend relevant provisions of the Iraq 
     Sanctions Act, the amendment in section 2204 extending the 
     expiry date of section 1503 is necessary to ensure that laws 
     referred to in its fourth and fifth provisos, i.e., section 
     307 of the Foreign Assistance Act requiring withholding of 
     the United States proportionate share of contributions to 
     international organizations that have programs in Iraq and 
     provisions of law directing voting against or opposing 
     programs, shall not apply with respect to Iraq through fiscal 
     year 2005.
       In section 2204, the conference report amends section 1504 
     of Public Law 108-11 to include language specifically 
     authorizing the export of small arms to private security 
     forces and extending the authorities of this section for 
     another year. With regard to the export of lethal military 
     equipment for private security purposes, the managers intend 
     that only small arms may be exported for such purpose. For 
     the purposes of this section, the managers understand small 
     arms to mean all equipment listed in Category I of the 
     International Traffic in Arms Regulations (22 CFR 120-130), 
     and that such exports shall be made for the purposes of 
     providing security for contractor operations during the 
     reconstruction of Iraq. For all equipment exported under this 
     section, the managers expect that the notification contained 
     in this section shall contain specific information with 
     respect to the end user and the purposes for which such 
     equipment has been exported. The conference report does not 
     include language requested by the President that would 
     authorize the export of advanced conventional equipment to 
     Iraq, such as long-range precision guided munitions, fuel air 
     explosives, cruise missiles, laser weapons, and military 
     satellites.
       The conference report includes language in section 2206 
     that increases the cumulative value of military equipment 
     that the Department of Defense may provide to Afghanistan 
     from $300,000,000 to $450,000,000. This provision was in 
     section 2206 of the House bill and section 301 of the Defense 
     chapter of the Senate amendment.
       The conference report includes a new general provision, 
     section 2207, that is similar to the House language requiring 
     the Office of Management and Budget to submit to the 
     Committees on Appropriations a financial plan no later than 
     January 5, 2004 and every 3 months thereafter. The managers 
     have restricted the obligation of all but up to 20 percent of 
     funds under the heading ``International Relief and 
     Reconstruction Fund'' until this plan is submitted, but the 
     managers intend that any funds spent before the plan is 
     submitted also will be detailed in the financial plan. The 
     managers direct that the financial plan be updated quarterly 
     to reflect any prospective changes to estimates of future or 
     ongoing projects, and require that the Administration notify 
     the Committees on Appropriations 15 days prior to obligation 
     of any increases at the project level to the financial plan 
     between quarterly submissions. The table in this conference 
     statement under the heading ``Iraq Relief and Reconstruction 
     Fund'' provides functional categories as well as program 
     activities. The managers expect the financial plan to 
     correspond with these functional categories but also include 
     more specific project level detail including, but not limited 
     to, specific capital projects including bridges, railroads, 
     training centers, roads, prisons, hospitals, and health 
     clinics, as well as the establishment of training programs, 
     and repatriation of refugees and internally displaced persons 
     by implementer. For capital projects, the managers direct 
     that the OMB include a breakdown of cost estimates that 
     explains the assumptions and data on which the estimates were 
     based. The managers also intend that for each line of 
     project-level activity, the financial plan specify which 
     United States Government agency will be expected to implement 
     the project. The conference report requires that OMB consult 
     with the Committees on Appropriations prior to submitting the 
     plan. The managers view this consultation as an ongoing 
     process, one that should start immediately after enactment of 
     this Act and continue until the first plan is submitted, and 
     every 3 months thereafter. The Senate had similar language in 
     sections 2310 and 2321.
       Section 2208 is the same as the general provision in the 
     House bill that deems any successor United States Government 
     entity to the CPA as the CPA for purposes of authorities and 
     responsibilities in this Act. The Senate did not address this 
     matter.
       In section 2209, House bill language is included so that 
     funds are made available for Iraq and Afghanistan 
     notwithstanding any other provision of law not contained in 
     this Act that restricts assistance to foreign countries, and 
     section 660 of the Foreign Assistance Act. Such authority is 
     subject to five days notification. The Senate addressed this 
     matter in section 2302.
       In section 2210, the conference agreement includes language 
     that provides that funds appropriated by this chapter may be 
     obligated and expended notwithstanding section 10 of Public 
     Law 91-672 and section 15 of the State Department Basic 
     Authorities Act of 1956, as proposed by both the Senate and 
     the House.
       The conference report includes language in section 2211 
     that allows the Overseas Private Investment Corporation to 
     operate in Iraq notwithstanding any other provision of law. 
     The managers support OPIC programs in Iraq, and the 
     conference report provides language to permit the President 
     to enter into agreements with an entity other than a host 
     country government. However, the managers do not expect that 
     OPIC's authority will be exercised to waive other existing 
     statutory requirements including longstanding Congressional 
     mandates; therefore, the conference report requires that the 
     exercise of such authority is subject to the regular 
     notification procedures of the Committees on Appropriations. 
     The Senate addressed this matter in section 2307.
       The managers direct the Export-Import Bank of the United 
     States and the Trade and Development Agency to report 
     quarterly during fiscal year 2004, beginning 90 days after 
     enactment of this Act, to the Committees on Appropriations 
     regarding each agency's activities in Iraq.
       In section 2212, the conference report includes a provision 
     similar to the Senate amendment that allows transfers among 
     international assistance programs in this chapter in an 
     amount not to exceed $100,000,000. The House did not address 
     this matter.
       Section 2213 of the conference report reflects the Senate 
     language on extending the waiver on Pakistan sanctions. The 
     House did not address this matter.
       Section 2214 amends the authorization levels in the 
     Afghanistan Freedom Support Act to be consistent with the 
     levels of funding provided in this Act and H.R. 2800. The 
     reporting requirements in section 2312 of the Senate bill are 
     addressed in section 2215 of the conference report. The House 
     bill did not address this matter.
       Section 2215 is a new section that consolidates many of the 
     reporting requirements of the House and Senate bills under 
     one provision entitled ``Reports on Iraq and Afghanistan''. 
     This includes issues relating to debts owed by the government 
     of Saddam Hussein in Iraq, efforts of the United States to 
     increase resources contributed by foreign countries and 
     international organizations to the reconstruction of Iraq, 
     the manner in which the needs of people with disabilities are 
     being met in the development and implementation of 
     reconstruction activities in Iraq and Afghanistan, progress 
     made in indicting leaders of the former Iraqi regime for war 
     crimes, and efforts by the Coalition Provisional Authority 
     and relevant Iraqi officials to preserve religious freedoms. 
     In addition, this provision includes a monthly reporting 
     requirement on Iraqi oil production and oil revenues, and the 
     use of such revenues, and progress made in accomplishing 
     United States assistance and development goals in 
     Afghanistan. This section reflects the requirements of House 
     section 2207 and Senate sections 2309 and 2314.
       In section 2216, the conference report prohibits funds 
     appropriated or otherwise made available by chapter 2 of 
     title II of this Act from being obligated for any activity in 
     contravention of the Optional Protocol to the Convention on 
     the Rights of the Child on the Involvement of Children in 
     Armed Conflicts. This is similar to Senate section 2318, and 
     the House did not address this matter.
         Section 2217 is a new general provision that relates to 
     women's participation in reconstruction in Afghanistan and 
     Iraq.
       The conference agreement does not include language from the 
     Senate bill expressing the sense of Congress on certain 
     matters. The managers endorse the intent of this language, 
     specifically that: each country that is owed a debt by Iraq 
     that was incurred during the regime of Saddam Hussein should 
     forgive such debt; arbitrary deadlines should not be set for 
     the dissolution of the Coalition Provisional Authority, and 
     that transfer of authority should occur only after the 
     ratification of an Iraqi constitution and the establishment 
     of an elected government in Iraq takes place; the United 
     States should make every effort to increase the level of 
     financial commitment from other nations to reconstruction in 
     Iraq, and that the United States contributions to these 
     efforts should be done in a manner that promotes economic 
     growth in Iraq and limits the long-term cost to American 
     taxpayers; and, the removal of the Government of Iraq under 
     Saddam Hussein enhanced the security of Israel and other 
     United States allies.
       The managers do not include House sections 2212 and 2213 
     and Senate sections 2308, 2310, 2313, 2314, 2315, 2316, 2317, 
     2319, and 2320.

[[Page 26435]]



  TITLE III--INSPECTOR GENERAL OF THE COALITION PROVISIONAL AUTHORITY

       The conference agreement includes a new title that 
     establishes an Inspector General of the Coalition Provisional 
     Authority (CPA). This title is in lieu of provisions in the 
     Senate version of the bill to establish an Inspector General 
     of the CPA. The House bill did not contain a comparable 
     provision.
       The Inspector General will perform oversight and promote 
     transparency on tracking of funds; provide continuing review 
     and accumulation of data concerning both reconstruction 
     activities and contracting; monitor the constant flow of 
     information, particularly the accounting of the use of funds 
     and transfers of funds between agencies and other third 
     parties; and establish controls and a record-keeping system 
     that can accumulate and maintain records for future reviews, 
     investigations, and/or audits.
       Funding is provided for the Inspector General within the 
     Operating Expenses of the Coalition Provisional Authority 
     account in Title II of this Act.

                 TITLE IV--GENERAL PROVISIONS--THIS ACT

       The conference agreement includes a provision, as proposed 
     by the House, which limits the availability of funds provided 
     in this Act.
       The conference agreement includes a provision, as proposed 
     by the Senate, designating the amounts provided in the Act as 
     emergency requirements. The House did not include a similar 
     provision, but did include individual emergency designations 
     with each appropriation account.
       The conference agreement contains modified language 
     proposed by the House which ensures that schools serving the 
     children of military personnel continue to receive Impact Aid 
     funds when their parents are deployed or killed while on 
     active duty and the child continues to attend the same local 
     educational agency. The Senate bill did not include this 
     provision.
       The conference agreement does not include additional funds 
     for the Department of Veterans Affairs. The Senate proposal 
     included $1,300,000,000 for medical care. The House proposal 
     did not include supplemental funds.
       The conference agreement does not include a provision 
     proposed by the Senate (Sec. 5001) requiring the President to 
     submit to each Member of Congress a report on the projected 
     total costs of United States operations in Iraq, including 
     military operations and reconstruction efforts, through 
     fiscal year 2008. The House did not include a similar 
     provision.
       The conference agreement does not include a provision 
     proposed by the Senate (Sec. 5006) to permit personal injury 
     claims by United States citizens and their spouses and 
     children against a foreign state relating to such citizens 
     being held hostage between 1979 and 1981. House did not 
     include a similar provision.
       The conference report does not include House section 3004, 
     prohibiting funds from being provided to any unit of security 
     forces of a foreign country if these forces credibly have 
     been alleged to have been involved in abuses of human rights. 
     As this is also a general provision in the annual foreign 
     operations appropriations Acts, the managers expect these 
     criteria to apply to all funds provided in fiscal year 2004.
       The managers do not include House sections 3002, 3004, 
     3005, 3006, and 3007 and Senate sections 5003, 5004, 5005, 
     and 5007.

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 2004 recommended by the Committee of Conference, 
     with comparisons to the 2004 budget estimates, and the House 
     and Senate bills for 2004 follow:

                       [In thousands of dollars]

Budget estimates of new (obligational) authority, fiscal yea$87,039,804
House bill, fiscal year 2004.................................86,856,029
Senate bill, fiscal year 2004................................86,449,004
Conference agreement, fiscal year 2004.......................87,442,198
Conference agreement compared with:
  Budget estimates of new (obligational) authority, fiscal year+402,394
  House bill, fiscal year 2004.................................+586,169
  Senate bill, fiscal year 2004................................+993,194

     Bill Young,
     Jerry Lewis,
     Hal Rogers,
     Frank Wolf,
     Jim Kolbe,
     James T. Walsh,
     Joe Knollenberg,
     John P. Murtha,
     Nita M. Lowey,
     Chet Edwards,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete Domenici,
     Christopher Bond,
     Mitch McConnell,
     Conrad Burns,
     Richard C. Shelby,
     Judd Gregg,
     Robert F. Bennett,
     Ben Nighthorse Campbell,
     Larry Craig,
     Kay Bailey Hutchison,
     Mike DeWine,
     Sam Brownback,
     Daniel K. Inouye,
     Ernest F. Hollings
       (except title II),
     Patrick J. Leahy
       (except title II),
     Tom Harkin
       (except title II),
     Barbara A. Mikulski
       (except title II),
     Harry Reid
       (except title II),
     Patty Murray
       (except title II),
     Byron L. Dorgan
       (except title II),
     Dianne Feinstein
       (except title II),
     Tim Johnson
       (except title II),
     Mary L. Landrieu
       (except title II),
     Managers on the Part of the Senate.

                          ____________________