[House Report 104-29]
[From the U.S. Government Publishing Office]



                                                  Union Calendar No. 12
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     104-29
_______________________________________________________________________


 
    MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS AND RESCISSIONS TO 
   PRESERVE AND ENHANCE THE MILITARY READINESS OF THE DEPARTMENT OF 
 DEFENSE FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1995, AND FOR OTHER 
                                PURPOSES

                                _______


 February 10, 1995.--Committed to the Committee of the Whole House of 
            the State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Livingston, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                        (To accompany H.R. 889)
    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making emergency 
supplemental appropriations and rescissions to preserve and 
enhance the military readiness of the Department of Defense for 
the fiscal year ending September 30, 1995, and for other 
purposes.

                              Bill Summary

    This emergency supplemental/rescission appropriations bill 
for the Department of Defense has four titles:
    Title I, ``Emergency Supplemental Appropriations'' provides 
$2,538,700,000 in emergency funds to pay for unbudgeted 
contingency operations in Haiti, Somalia, Southwest Asia, 
Bosnia, Korea and refugee support in the Caribbean.
    Title II, ``Rescinding Certain Budget Authority'' rescinds 
$1,460,200,000 of budget authority provided in prior 
legislation.
    Title III, ``Additional Emergency Supplemental 
Appropriations to Further Enhance Readiness'' provides 
$669,700,000 in budget authority to enhance readiness of units 
in each of the services.
    Title IV is General Provisions. Section 402 of the general 
provisions allows certain burdensharing reimbursements received 
by the United States to be deposited in the Treasury. This 
results in a credit of $360,000,000 in budget authority and 
outlays because of these anticipated receipts.
    A brief overview of the Committee's recommendations 
follows.
                              Introduction

    Over the past year, the Department of Defense (DoD) has 
been engaged in a steadily increasing series of unplanned and 
unbudgeted contingency operations. Since the beginning of the 
current fiscal year in October 1994 the pace and scope of these 
missions have grown. Besides continuing operations already 
underway in the Persian Gulf region, in and around the former 
Yugoslavia, and in the Caribbean (refugee relief), additional 
deployments were ordered including the military intervention in 
Haiti, additional deployments of U.S. troops to the Persian 
Gulf region in October, force structure enhancements in and 
around the Korean Peninsula, and the movement of forces off 
Somalia to assist in the withdrawal of United Nations personnel 
early this year.
    The net result of these actions has been deployments 
totalling nearly 100,000 troops within the past four months, 
with nearly 50,000 troops remaining deployed in these 
operations today. The number and variety of these ongoing 
operations far exceeds any similar military activities by the 
United States in recent memory. The exceptional performance of 
the U.S. military in carrying out these missions, in several 
instances on extremely short notice, is commended by the 
Committee which salutes all those in the Department of Defense 
who have been involved in the planning and execution of these 
operations. The troop levels associated with these deployments 
are summarized in the table below.

 DEPLOYMENT LEVELS FOR MAJOR UNBUDGETED CONTINGENCY OPERATIONS IN FISCAL
                              YEAR 1995 \1\                             
------------------------------------------------------------------------
                                        Jan.               Date of peak 
              Location                  1995      Peak      deployment  
------------------------------------------------------------------------
Persian Gulf:                                                           
    Iraq southern no-fly zone and       22,000    22,000  Jan. 1995.    
     Patriot missiles in Saudi                                          
     Arabia.                                                            
    Iraq northern no-fly zone.......     1,400     1,500  Nov. 1994.    
    Deployment to Kuwait in reaction         0    11,000  Oct. 1994.    
     to Hussein sending troops to                                       
     border.                                                            
    Macedonia.......................       550       550  Jan. 1995.    
Former Yugoslavia:                                                      
    Bosnia no-fly zone..............     8,300     8,700  Jan. 1995.    
    Bosnia embargo..................     1,100     2,500  Nov. 1994.    
    Bosnia air drop \2\.............       700       700  Jan. 1995.    
Caribbean:                                                              
    Haiti...........................     5,700   \3\39,0  Oct. 1994.    
                                                      00                
    Guantanamo Bay..................     4,300     7,700  Oct. 1994.    
    Panama (refugees)...............     3,600     4,700  Jan. 1995.    
                                     --------------------               
      Total.........................    47,650    98,350                
------------------------------------------------------------------------
\1\ Number rounded. Only major deployments included in list.            
\2\ Includes personnel operating a hospital facility in Croatia.        
\3\ Includes 21,000 ashore in Haiti, 9,300 afloat and 8,700 in Joint    
  Operating Area.                                                       

    Need for Fiscal Year 1995 Emergency Supplemental Appropriations

    It has been apparent for several months that the military 
services would require supplemental appropriations to recover 
the funds expended to carry out these operations. On December 
1, 1994, the President announced his intent to forward such a 
request for supplemental appropriations to the Congress.
    Throughout the past two months, the Committee has been 
informed of the need for urgency in approving these 
supplemental funds. On January 25, 1995, the Subcommittee on 
National Security heard testimony from the Secretary of Defense 
and Chairman of the Joint Chiefs of Staff which defined the 
precise nature of the funding requirements and the implications 
of failing to approve the necessary funding in a timely 
fashion.
    On February 6, 1995, the Administration submitted a request 
for emergency DoD supplemental appropriations totalling $2.56 
billion (partially offset by $703 million in unspecified 
rescissions of prior year funding), representing the total 
unfunded requirement resulting from the ongoing contingency 
operations. Funding requirements, by operation, are as follows:

                          [Dollars in millions]

Persian Gulf......................................................$1,040
Haiti.............................................................  $595
Cuba............................................................\1\ $367
Bosnia............................................................  $312
Unit Inventory Replenishment......................................   $89
Section 506 Recovery..............................................   $59
Korea.............................................................   $59
Somalia...........................................................   $17
Rwanda............................................................   $17
\1\ Includes request for ``Military Construction, Navy'', which is not 
funded in this Supplemental.
 Implications of Failing To Provide Needed Funding in a Timely Fashion

    Under existing statutory authority, the DoD must provide 
for financing of military operations as they occur. Since none 
of these contingency operations were budgeted for, the 
Department has thus far been forced to pay for these 
deployments from within existing funds in the fiscal year 1995 
Operation and Maintenance accounts which were to be used for 
training, base support operations, and equipment and property 
maintenance during the last two quarters of fiscal year 1995.
    According to the testimony by the Secretary of Defense and 
Chairman of the Joint Chiefs of Staff, without full funding of 
the supplemental request and enactment into law by the end of 
March, the military services will have no choice but to begin 
scaling back essential training and readiness-related 
activities beginning this April.
    The Committee notes that similar actions had to be taken 
during the period of July-September 1994, as a funding shortage 
of $300 million resulting from the humanitarian activities in 
Rwanda and the Caribbean was not dealt with through 
supplemental appropriations until the end of September. As a 
consequence, the readiness ratings of three Army divisions went 
to the ``C-3'' \1\ level, the first time Army divisions had 
fallen to that level in over ten years. Eight Marine Corps 
aviation squadrons were completely grounded for the month of 
September, and a total of 28 Marine and Navy aviation squadrons 
had to ground over 50 percent of their aircraft that same 
month. Scheduled maintenance of ships and aircraft was deferred 
for lack of funds.
    \1\ A C-3 readiness rating is defined as follows: The unit is 
trained to undertake many but not all wartime missions and has 
decreased flexiblity and increased vulnerability. The unit requires 
significant resources to offset deficiencies.
---------------------------------------------------------------------------
    As pointed out by General Shalikashvili in his testimony, 
the current shortfall of $2.56 billion dwarfs that of last year 
and accordingly has far more dire consequences for the military 
services. According to General Shalikashvili, without receipt 
of the needed supplemental funding in a timely fashion the 
services will have to begin taking the following severe actions 
to accommodate their funding shortfalls:

                                  army

    All U.S. based units (under Forces Command) will have to 
stop most major training by May 31;
    National Training Center rotations and JCS exercises will 
be canceled;
    Flight hours and spare parts stocks will be cut; and
    All active Army divisions will be degraded in readiness.

                                  navy

    Four carrier airwings will be forced to stand down, the 
first in April;
    Over 500 aircraft may be grounded and 30,000 flight hours 
cut;
    Required maintenance on two carriers and seven other ships 
will be deferred or reduced; and
    Ship and aviation spare parts reserves will be drawn down 
by 30 days worth of requirement.

                              marine corps

    Since unfunded contingency requirements equate to 
approximately 80 percent of the Marine Corps' operating forces 
budget, the Corps will see severe readiness impacts starting in 
July;
    Training for Marine Expeditionary Forces in both the 
Atlantic and Pacific (with the exception of deployed units) 
will be halted;
    All categories of training, as well as maintenance and 
spare parts, will face deep reductions; and
    Marine Air Squadrons will be forced to stand down and 
suffer reduced readiness.

                               air force

    Flight hours for fighter, bomber, tanker, and airlift 
squadrons will have to be reduced by 50 percent over a 12 week 
period;
    Ten JCS and tactical training exercises will be canceled;
    Over 24,000 Permanent Change of Station moves will be 
frozen; and
    Aircraft and engine repair, as well as scheduled runway and 
real property maintenance will be deferred.

    The Committee views these potential actions as nothing 
short of disastrous. Even if only partially implemented, such 
steps would unquestionably lead to a direct and immediate 
degradation of military readiness which not only would impact 
on the Department's ability to conduct ongoing operations but 
restrict the ability of the National Command Authority to 
respond to any other military requirements which may occur. 
Moreover, the negative impact on the safety, morale, and unit 
cohesion of U.S. forces cannot be overestimated. The Committee 
believes this situation can and must be avoided.

           Other Readiness and Funding Shortfalls Still Exist

    Even if the required supplemental funds are made available 
in a timely fashion, the Committee notes this will not totally 
alleviate the readiness and funding problems confronting the 
DoD this fiscal year. The fiscal year 1995 Defense 
Appropriations Act, while increasing funds for readiness beyond 
those requested by the Administration, did not fully fund a 
number of personnel-related programs which under current law 
must be carried out this year. This includes military and 
civilian pay raises, unemployment compensation, retirement 
funds, and overseas station allowances.
    In addition, the military services have identified other 
fiscal year 1995 shortfalls in key readiness programs, 
including flying hours, depot and real property maintenance, 
unit training, and spare parts acquisition and distribution. 
All told, the Committee estimates these personnel and 
readiness-related funding shortfalls total over $2 billion for 
the remainder of this fiscal year.
    In the past the DoD would address such problems through 
internal transfers and reprogramming of funds. However, the 
Committee does not believe the Department can meet these 
requirements this year solely through such actions. This is due 
to the size of the fiscal year 1995 shortfall, coupled with the 
diversion of operating forces' funding to support the ongoing 
contingency operations. In addition, whatever flexibility the 
Department may have had in accommodating these unfunded 
requirements will now be further reduced due to the 
Administration's decision to partially offset its emergency 
supplemental request with a rescission of prior year 
appropriations totalling $703 million.

                        Committee Recommendation

    Faced with this multi-faceted problem--a significant 
unfunded requirement resulting from the ongoing contingency 
operations; the need to provide funding for these requirements 
not later than the end of March, 1995; and other large unfunded 
requirements in the Department's personnel and readiness 
accounts--the Committee recommends the following:
    (a) Emergency supplemental appropriations totalling $2.54 
billion, to meet the funding requirements identified by the 
Administration resulting from the ongoing contingency 
operations;
    (b) Additional emergency supplemental appropriations 
totalling $670 million, to fully finance the military pay raise 
agreed to by the Congress last year and to meet a portion of 
the remaining fiscal year 1995 unfunded readiness requirements 
identified by the military services; and
    (c) Rescissions of prior year appropriations totalling 
$1.46 billion.
    The Committee observes this represents the first time it 
has reported an emergency supplemental for the Department of 
Defense which includes rescissions to help offset the cost of 
the supplemental. While the Committee continues to believe the 
funds recommended in this bill do not require offsets, 
consistent with previous Committee action in financing 
unbudgeted military operations, it has recommended rescissions 
in view of the need to hold down total spending wherever 
possible.
    The Committee also notes that this bill, in total, provides 
for significantly more funding for military readiness than does 
the Administration's request. Even so, the total amount 
recommended is over $100 million less than the Administration's 
proposal. The following table compares the Administration's 
request to the Committee's recommendations:

------------------------------------------------------------------------
                                      Administration       Committee    
                                         request        recommendations 
------------------------------------------------------------------------
Ongoing contingency operations....              $2.56          \1\ $2.54
Additional readiness funding......  .................               +.67
                                   -------------------------------------
      Subtotal, readiness funding.               2.56               3.21
Burdensharing contribution........               -.36               -.36
                                   -------------------------------------
      Subtotal....................               2.20               2.85
Rescissions.......................               -.70              -1.46
                                   -------------------------------------
      Bill total..................              $1.50             $1.39 
------------------------------------------------------------------------
\1\ The Committee recommendation does not include the requested amount  
  for ``Military Construction, Navy''.                                  

                     Timely Action by the Committee

    The Committee recognizes it began action on this measure 
prior to receipt of the formal budget request from the 
Administration. The Committee does not apologize for doing so, 
nor does this action reflect a departure from past Committee 
practice when confronted with urgent national needs.
    The Committee was and remains disturbed by the 
Administration's self-imposed delay in submitting its formal 
request for the funds needed to pay for the ongoing DoD 
contingency operations. The implications of failing to provide 
these funds in a timely fashion are both clear and compelling. 
In addition, the Committee observes Administration officials 
were quick to blame the Congress for failing to act quickly 
last year when readiness problems related to funding shortfalls 
arose; yet when faced with a much more serious situation 
requiring prompt action the Administration declined to do the 
obvious and transmit its request as soon as possible.
    The Committee takes its responsibilities seriously and 
began action to move this emergency legislation before receipt 
of a formal budget submission by the Administration. It was in 
this fashion that the Committee acted when it responded to the 
devastating effects of Hurricane Hugo and the Loma Prieta 
earthquake in 1989, as well as the 1992 emergency assistance it 
provided to respond to the tragedies which occurred in Los 
Angeles and Chicago. Last year, the Committee demonstrated 
similar dispatch when it provided funding under the Foreign 
Operations Appropriations Act for Jordan (in connection with 
the Israel-Jordan peace accords) and Rwanda. The Committee 
views the situation confronting our military forces today with 
similar gravity and has acted accordingly.
    The world remains a dangerous and volatile place as 
evidenced by the fact that almost 1,000 Purple Hearts have been 
awarded to U.S. servicemen and servicewomen since the end of 
the Cold War. The Committee believes it is essential that the 
greatly downsized force structure of our military retains an 
optimal readiness posture. Providing the funds in this 
legislation is an essential contribution toward that goal.
                                Summary

    In summary, this supplemental/rescission bill:
          Provides $2,538,700,000 to cover the expenses of 
        unbudgeted contingency operations;
          Provides $669,700,000 in new budget authority to 
        redress the decline in readiness in many units whose 
        training and maintenance funds were used to fund 
        unbudgeted contingent operations;
          Offsets this increase with rescissions of lower 
        priority programs totaling $1,460,200,000;
          Burdensharing contributions provide an additional 
        offset of $360,000,000; and
          Is below the President's budget request.
    Details of the Committee's recommendations in each Title of 
the bill follow.
                                TITLE I

                 EMERGENCY SUPPLEMENTAL APPROPRIATIONS

                    DEPARTMENT OF DEFENSE--MILITARY

    The Committee recommends the appropriation of 
$2,538,700,000 to finance unfunded costs of contingency 
operations and to replace equipment and material that was drawn 
down as a result of these contingency operations.
    The following table provides details of the emergency 
supplemental appropriation:

                                                                                DOD FISCAL YEAR 1995 SUPPLEMENTAL                                                                               
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         Southwest Asia                              Haiti                                                      
                                                                          CIS   -------------------------------         ------------------------------                                          
             Appropriations               Somalia   Rwanda    Bosnia    Provide                       Enhanced   Korea     FY94                          Cuba    Sec. 506  Readiness     Grand  
                                                                         Hope     Provide  Vigilant   Southern           food and    Uphold     Sea              recovery  reinstate     total  
                                                                                  Comfort   Warrior    Watch              forage   Democracy   Signal                                           
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Military personnel:                                                                                                                                                                             
    Military personnel, Army...........         0         0     2,500         0       400     2,900      2,300      500     3,300     53,900        0     3,500         0         0       69,300
    Military personnel, Navy...........         0         0       300         0         0     3,100     18,600        0         0        900      200    26,400         0         0       49,500
    Military personnel, Marine Corps...     1,500         0         0         0         0       600      2,500        0         0        300      500     5,000         0         0       10,400
    Military personnel, Air Force......         0         0    10,700         0     6,400    12,800     28,000        0         0      3,000      700    10,100         0         0       71,700
    Reserve personnel, Navy............         0         0     1,700         0         0         0          0    1,000         0          0      100     1,800         0         0        4,600
                                        --------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, military personnel........     1,500         0    15,200         0     6,800    19,400     51,400    1,500     3,300     58,100    1,500    46,800         0         0      205,500
                                        ========================================================================================================================================================
Operation and maintenance:                                                                                                                                                                      
    Operation and maintenance, Army....     5,100     3,000    38,900     1,000     3,300   216,400     39,700        0   123,000    330,100    1,100    77,500    30,500    89,000      958,600
    Operation and maintenance, Navy....     5,000         0    46,900         0         0    17,400     39,700   28,600         0          0   22,200   187,800         0         0      347,600
    Operation and maintenance, Marine                                                                                                                                                           
     Corps.............................     5,700         0         0         0         0    16,100          0        0         0        600        0    15,600         0         0       38,000
    Operation and maintenance, Air                                                                                                                                                              
     Force.............................         0    14,200   200,100         0   104,600   191,200    317,000   25,000         0      8,100    5,800    22,700         0         0      888,700
    Operation and maintenance, Defense-                                                                                                                                                         
     wide:                                                                                                                                                                                      
        U.S. Special Operations Command         0         0     5,300         0     6,800         0          0    2,900         0     13,800        0    10,800         0         0       39,600
        Defense Intelligence Agency....         0         0     2,000         0         0         0      1,200        0         0        400        0         0         0         0        3,600
    Operation and maintenance, Navy                                                                                                                                                             
     Reserve...........................         0         0     1,000         0         0         0          0    1,000         0          0    4,400         0         0         0        6,400
                                        --------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, operation and maintenance.    15,800    17,200   294,200     1,000   114,700   441,100    397,600   57,500   123,000    353,000   33,500   314,400    30,500    89,000    2,282,500
                                        ========================================================================================================================================================
                                                                                                                                                                                                
Procurement:                                                                                                                                                                                    
    Other procurement, Army............         0         0         0         0         0         0          0        0         0          0        0         0    28,600         0       28,600
    Other procurement, Air Force.......         0         0       900         0         0         0      5,400        0         0        500    1,300         0         0         0        8,100
                                        --------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, procurement...............         0         0       900         0         0         0      5,400        0         0        500    1,300         0    28,600         0       36,700
                                        ========================================================================================================================================================
Other Department of Defense programs:                                                                                                                                                           
    Defense health program: Operation                                                                                                                                                           
     and maintenance...................         0         0     1,600         0     1,000     1,100      2,000        0         0      4,400        0     3,900         0         0       14,000
                                        --------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, Other Department of                                                                                                                                                                
       Defense programs................         0         0     1,600         0     1,000     1,100      2,000        0         0      4,400        0     3,900         0         0       14,000
                                        ========================================================================================================================================================
      Grand total......................    17,300    17,200   311,900     1,000   122,500   461,600    456,400   59,000   126,300    416,000   36,300   365,100    59,100    89,000    2,538,700
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                Somalia

    The Committee's recommendation of $17,300,000 provides for 
sealift of equipment left in Somalia during fiscal year 1994; 
reconstituting air assets used in Somalia; supporting United 
Nations withdrawal operations; and imminent danger pay.

                                 Rwanda

    The Committee's recommendation of $17,200,000 provides for 
retrieving and refurbishing equipment that had been provided to 
the United Nations forces.

                                 Bosnia

    The Committee's recommendation of $311,900,000 provides for 
twelve months of humanitarian airdrop/airland missions; 
incremental flying hours to enforce the no-fly zone; 
incremental ship steaming days and flying hours to enforce the 
arms embargo against the former Yugoslavia; hospital 
operations; pay and allowances of deployed personnel; 
intelligence support; rotational travel; miscellaneous 
contractual services; and vehicle and other equipment 
maintenance, repair, and transportation costs.

                             Southwest Asia

    The Committee's recommendation of $1,040,500,000 provides 
for three operations in Southwest Asia--Provide Comfort, 
Vigilant Warrior, and Enhanced Southern Watch. This includes 
funds for airlift and sealift of personnel and equipment to 
Kuwait and prepositioned ships; incremental flying hours and 
additional steaming days to enforce the no-fly zone over 
Southern Iraq; personnel and equipment support costs for a 
Patriot Battalion; pay and allowances of deployed personnel; 
intelligence support; rotational travel; and vehicle and other 
equipment maintenance, repair, and transportation costs.

                                 Korea

    The Committee's recommendation of $59,000,000 provides for 
incremental OPTEMPO for a carrier battle group including 
incremental flying hours, incremental ship steaming days, ship 
maintenance costs, airlift, and equipment maintenance; civil 
engineering requirements to bring bases out of warm storage and 
make them operational; rotational travel; and pay and 
allowances of deployed personnel.

                                 Haiti

    The Committee's recommendation of $578,600,000 provides for 
liquidating fiscal year 1994 incremental costs incurred during 
preparation to deploy into Haiti and for fiscal year 1995 costs 
to continue operations. These costs include aviation and combat 
vehicle supplies; air and sea transport costs; logistical 
contract costs; incremental OPTEMPO in-country; loading costs; 
rations; intelligence support; ground and air equipment 
reconstitution; pay and allowances of deployed personnel; and 
care and feeding of Haitian migrants at the U.S. Naval Station, 
Guantanamo Bay, Cuba.
                                  Cuba

    The Committee's recommendation of $365,100,000 provides for 
migrant holding sites in Guantanamo Bay, Cuba and Panama and 
for maintaining a site in caretaker status in Suriname. The 
costs include supplies and equipment; incremental OPTEMPO in-
country; airlift costs; food and food service contracts; gas, 
electric, and sanitation; clothing and related supplies; 
medical and dental services; deployment of additional troops to 
handle riots; pay and allowances of deployed personnel; and 
temporary migrant camp improvements including upgrade of tents 
and roads.

                          Section 506 Recovery

    The Committee's recommendation of $59,100,000 provides for 
replacement of stocks drawn down under the authority of section 
506(a)(1) of the Foreign Assistance Act to provide goods and 
services to countries involved in the multi-national coalition 
deployments in Haiti. These costs include such items as fuel; 
clothing and related equipment; transportation of supplies; and 
replacement costs of equipment.

                        Readiness Reinstatement

    The Committee's recommendation of $89,000,000 provides for 
restoration of unit stock items to levels required to meet 
operational requirements.
                                TITLE II

                  RESCINDING CERTAIN BUDGET AUTHORITY

                    DEPARTMENT OF DEFENSE--MILITARY
                              Rescissions

    To offset costs of the recommended programs for enhancing 
readiness, the Committee has included rescissions totaling 
$1,460,200,000.
    The recommended rescissions are in two categories:
    (1) Programs that are either recommended for termination or 
have excess funds ($418,300,000).
    (2) Programs that the Committee has identified as lower 
priority within the defense budget ($1,041,900,000).
    The Committee anticipates that when it acts on the fiscal 
year 1996 DoD budget request, the Committee will also emphasize 
enhancing readiness and will reduce or terminate programs that 
are of lower priority.

                          Program Rescissions

    The Committee recommends $1,460,200,000 for the rescission 
of certain fiscal year 1993, fiscal year 1994, and fiscal year 
1995 appropriations as contained in the following table:
                         Rescissions By Program

National security education trust fund:
    Total funding available.............................  ($161,287,000)
    Appropriations from trust fund currently unobligated      14,500,000
TSSAM...................................................     319,500,000
F-15 SEAD...............................................      38,000,000
Advanced cruise missile (ACM)...........................      33,000,000
EF-111 SIP..............................................      27,800,000
Technology Reinvestment Program.........................     502,000,000
Other conversion initiatives............................      35,400,000
Environmental restoration...............................     150,000,000
NATO research and development...........................      35,000,000
High definition systems.................................      15,000,000
Defense Production Act..................................     100,000,000
Former Soviet Union threat reduction....................      80,000,000
Guard and Reserve equipment.............................      30,000,000
SR-71...................................................      80,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................   1,460,200,000
                 National Security Education Trust Fund

    The National Security Education Trust Fund was established 
by Congress in 1991 to provide scholarships and grants to 
college students studying abroad in hopes they would be 
potential applicants for positions in the national security 
arena. In light of declining budgets and a shrinking federal 
work force, the Committee believes that the potential benefits 
derived from the program do not merit the cost. Therefore, the 
Committee recommends that the trust fund be terminated, directs 
all prior year unobligated funds to be rescinded, and directs 
that all monies available in the trust fund be rescinded.

                    Program Terminations/Close-outs

    The Committee recommends rescinding prior year funding for 
the following programs due to recent Defense Department 
decisions to terminate or close them out: Tri-service Standoff 
Attack Missile (TSSAM), F-15 SEAD, Advanced Cruise Missile 
(ACM), and the EF-111 System Improvement Program.
                 Technology Reinvestment Program (TRP)

    The Committee recommends rescinding $77,000,000 of fiscal 
year 1994 appropriations and $425,000,000 of fiscal year 1995 
appropriations for the Technology Reinvestment Program (TRP). 
The Committee also recommends rescinding an additional 
$35,400,000 for other related conversion grant projects. The 
Committee directs the recommended rescissions be applied only 
against the TRP competitive grant program and not the following 
programs, which are also funded in the overall TRP budget 
request: Advanced Material Partnerships, Agile Manufacturing, 
U.S. Japan Management Training, and MARITECH. DD Form 1414 
shall show these programs as items of special Congressional 
interest, a funding decrease which requires prior Congressional 
approval.
    The TRP grant program's stated objective is to ensure 
military security through the promotion of a strong economic 
and industrial base. However, it is not apparent this program, 
which funds technology projects of a primarily commercial 
nature whose military utility is tenuous at best, is an 
effective means of doing so. Since its inception in fiscal year 
1993, over $1.2 billion has been appropriated for so-called 
``dual-use,'' TRP technology grant competitions. Despite this 
significant level of funding, the Defense Department has yet to 
identify any military benefits from pursuing this program.
    It is troubling to the Committee that the TRP does not have 
parameters by which to define a successful defense conversion 
project. The Advanced Research Project Agency (ARPA) contends 
that it will take several years to determine how successfully 
the TRP meets its stated objectives. In the meantime, under the 
TRP grant program Congress is expected to approve what is 
essentially an open-ended funding commitment to programs which 
receive grant awards since no ``exit criteria'' exist which 
defines when a defense-related firm or other entity has 
successfully converted its defense technology to commercial 
applications.
    The Committee is concerned that military participation in 
the TRP is severely limited although the Defense Department 
provides all the funding for the program. Largely at the 
insistence of Congress, and against vigorous opposition from 
the administration, Defense Department involvement in the TRP 
process has grown somewhat since its inception. However, 
problems remain. The Defense Department is just one of many 
voices on the multi-agency Defense Technology Conversion 
Council which oversees the execution of the TRP. According to 
information provided to the Committee, only 25 percent of TRP 
proposal evaluators are Defense Department personnel. Until the 
announcement of the fiscal year 1995 TRP competition, defense 
relevance was not a driving factor in the TRP selection 
process.
    The record of defense conversion has not been a good one. 
As one industry official succinctly stated, the record of 
defense industry conversion to civilian applications is 
``unblemished by success.'' According to some estimates, past 
attempts by defense contractors to enter commercial markets 
resulted in economic failures of 80 percent. Further, a 1990 
report released by the Arms Control and Disarmament Agency 
concluded that ``Detailed research has not identified a 
successful product in our economy today which was developed 
through a military to civilian approach.'' The Committee 
believes the long term security and vitality of the defense 
industrial base can be accomplished in other ways not involving 
the expenditure of defense appropriations for initiation of 
``dual-use'' projects without clear benefits for the nation's 
defense effort. Through downsizing, consolidation, lean 
production methods and innovative design technologies defense 
companies from large to small are already taking the necessary 
steps to preserve the industrial base. The Committee believes a 
more appropriate role for the Federal government is in the area 
of regulatory reform allowing sensible business practices to 
more freely shape the downsized defense industry of the future. 
Changes in Federal policies, not new spending programs are 
needed to encourage these actions of the free market.
    The rescission of funds for the TRP will not put an end to 
the Defense Department's development of dual-use technologies. 
Much of the technology the Department develops can already be 
considered dual use. ARPA estimates that 60 percent of its 
program already supports the development of these technologies. 
The Committee has supported such programs in the past when 
their military utility has been demonstrated and when they 
appear to represent a cost-effective solution to issues 
confronting the DoD. For example, the Administration's high-
performance supercomputing initiative, championed by Vice 
President Gore, clearly has military utility and received 
nearly $400 million in last year's Defense Appropriations Act. 
Funds for this program are not being recommended for 
rescission. Funds for the TRP grant program, which fails to 
meet the test of military utility, are being proposed for 
rescission.
    Given the severe readiness situation addressed by this 
emergency supplemental appropriations bill and the Department's 
other pressing financial requirements in the future, it is the 
Committee's judgment that funding for the competitive grants 
under the TRP can no longer be accommodated in the Defense 
Department's budget request.

                  National Guard and Reserve Equipment

    The Committee recommends a rescission of $30,000,000 to the 
National Guard and Reserve miscellaneous equipment account. 
These funds will be used to offset critical and immediate 
readiness requirements.
                    Defense Production Act Purchases

    In fiscal year 1994, Congress appropriated $200,000,000 for 
Defense Production Act Purchases. The Department of Defense is 
unable to identify more than $100,000,000 of specific 
requirements for these funds through the end of fiscal year 
1996. The Committee therefore recommends that the remaining 
$100,000,000 be rescinded, in order to fund higher priority and 
more immediate readiness programs.

                        High Definition Systems

    In fiscal year 1995, Congress appropriated $82,950,000 to 
the Advanced Research Projects Agency for research and 
development of high definition systems technology. After the 
Committee's hearings were concluded, the Administration 
embarked on a new initiative which greatly expanded and 
accelerated the program. The Committee believes that this 
initiative should be subjected to additional Congressional 
oversight through the formal hearing process. The Committee 
therefore recommends a rescission of $15,000,000 of ARPA's 
fiscal year 1995 Research, Development, Test and Evaluation 
funds in order to moderate the growth in high definition 
systems development until the requisite hearings have been held 
and the Committee addresses this program as part of the fiscal 
year 1996 budget process.

                     NATO Research and Development

    The NATO Research and Development program is a good example 
of a well intentioned federal program which, once begun, never 
ends. This program provides initial U.S. funding for 
international cooperative research and development projects. 
Funding was first appropriated in fiscal year 1986 at the 
height of the defense buildup, when U.S. defense industry jobs 
were not as much at risk as they are today, and prior to the 
collapse of the Warsaw Pact threat. Since that time, over 
$800,000,000 has been spent to start NATO R&D projects, very 
few of which have actually resulted in systems being fielded to 
U.S. troops, and all of which require the military departments 
to find ways to finance the outyear costs of the projects. In 
today's defense environment, where the services are being 
required to stretch out key core programs such as Comanche and 
F-22, it no longer is affordable to perpetually start new NATO 
R&D projects. The Committee therefore recommends that this 
program be terminated and the $35,000,000 of funds appropriated 
in the fiscal year 1995 ``Research, Development, Test and 
Evaluation, Defense-wide'' appropriation be rescinded.
                                 SR-71

    The Committee has included a total rescission of 
$80,000,000 ($15,000,000 from ``Operation and Maintenance, Air 
Force'' and $65,000,000 from ``Aircraft Procurement, Air 
Force'') for the SR-71 based upon the lack of outyear funding, 
deficiencies in the industrial base to support SR-71 
operations, and the minimal increase in collection capability 
that would result from the current limited deployment plan.

                  Former Soviet Union Threat Reduction

    The Committee believes that control and elimination of 
weapons of mass destruction is a high priority. However, the 
Department of Defense currently plans to divert funds 
appropriated for this critical purpose to the construction of 
housing and economic aid for conversion projects in the former 
Soviet Union. Consequently, the Committee has included a 
rescission of $80,000,000 from the fiscal year 1995 
appropriation--$30,000,000 for the construction of housing and 
$50,000,000 for the Defense Demilitarization Enterprise Fund. 
The Committee specifically stipulates that no funds available 
to the Department of Defense may be used for the construction 
of housing, economic conversion projects, the Defense 
Demilitarization Enterprise Fund, or any similar endeavors. 
Funds for any such project should properly be considered as a 
part of the foreign aid appropriations process. Within 15 days 
of enactment of this bill, the Secretary of Defense is directed 
to report to the Committee on the specifics of how the 
Department proposes to obligate the remaining $320,000,000 for 
fiscal year 1995.
                       Environmental Restoration

    The Committee recommends rescinding $150,000,000 of fiscal 
year 1995 appropriations for environmental restoration 
activities. In making this recommendation the Committee notes 
that over $1.6 billion will remain in the fiscal year 1995 
defense budget for environmental clean-up activities, an amount 
consistent with future annual levels of funding planned by the 
Defense Department. In the department's original fiscal year 
1995 budget request for these activities $1.4 billion was 
designated for actual site remediation as opposed to site 
investigation, study and analysis. Thus, the Committee's action 
will allow physical clean-up of Defense Department sites to 
continue on schedule.
                               TITLE III

  ADDITIONAL EMERGENCY SUPPLEMENTAL APPROPRIATIONS TO FURTHER ENHANCE 
                               READINESS

                    DEPARTMENT OF DEFENSE--MILITARY

    The Committee recommends an additional $248,700,000 for the 
services' military personnel accounts to cover the cost of 
fully funding the fiscal year 1995, 2.6 percent pay raise.
    The Committee also recommends an additional $421,000,000 in 
operation and maintenance accounts for other critical 
shortfalls such as base operations, real property maintenance, 
unit level readiness, training support, flying hours, depot 
maintenance, and depot level repairables. Of this amount, 
$9,000,000 provides for repainting and re-bonding of AWACS 
radomes to keep the fleet operational.
    The Committee reluctantly reduced the Guard and Reserve 
miscellaneous equipment appropriation by $30,000,000 in the 
previous title. However, in this title the total amount 
recommended to enhance the Reserve components' readiness is 
$86,200,000, for a net increase in this bill of $56,200,000 for 
Guard and Reserve accounts.
    The Committee believes the funding recommended in this 
Title is essential to improving readiness, which has been a 
major concern to the Committee in recent years.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Marine                   Army         Air               
                         Army        Navy       Marine     Air Force     Army        Navy        Corps     Air Force   National    National      Total  
                                                 Corps                  Reserve     Reserve     Reserve     Reserve      Guard       Guard              
--------------------------------------------------------------------------------------------------------------------------------------------------------
Military personnel:                                                                                                                                     
 Pay raise..........     $75,500     $68,200      $3,000     $70,400      $6,500      $5,000      $1,300      $2,800     $11,000      $5,000    $248,700
                     ===================================================================================================================================
Operation and                                                                                                                                           
 maintenance:                                                                                                                                           
    Base operations.     104,000           0           0           0           0           0           0           0       5,000           0     109,000
    Real property                                                                                                                                       
     maintenance....           0           0      36,000           0           0           0           0           0       5,000           0      41,000
    Unit level                                                                                                                                          
     readiness......           0           0           0           0      13,000           0           0           0           0           0      13,000
    Training support      29,000           0           0           0           0           0           0           0           0           0      29,000
    Flying hours....           0      82,000           0      22,000           0      18,000           0           0           0           0     122,000
    Depot                                                                                                                                               
     maintenance....           0      25,000           0           0           0           0           0           0           0           0      25,000
    Depot level                                                                                                                                         
     repairables....           0           0      10,000      49,400           0           0       1,000       2,600           0      10,000      73,000
    AWACS readiness.           0           0           0       9,000           0           0           0           0           0           0       9,000
                     -----------------------------------------------------------------------------------------------------------------------------------
      Total,                                                                                                                                            
       Operation and                                                                                                                                    
       maintenance..     133,000     107,000      46,000      80,400      13,000      18,000       1,000       2,600      10,000      10,000     421,000
                     ===================================================================================================================================
      Grand Total...  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........     669,700
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                TITLE IV

                           GENERAL PROVISIONS

                      Burdensharing Contributions

    Section 402 directs that all funds received by the United 
States as reimbursement for expenses funded in this Act shall 
be deposited as miscellaneous receipts in the Treasury.
    The Administration has informed the Committee it has 
already received firm commitments of $208 million from Persian 
Gulf nations to help offset the costs of the Persian Gulf 
deployments last fall. These receipts enabled the DoD to reduce 
the unfunded requirements dealt with in this emergency 
supplemental by a like amount. The Committee is advised 
additional burdensharing contributions from Gulf nations are 
expected and Section 402 provides authority for these to be 
deposited directly in the U.S. Treasury. Regarding 
reimbursements from the United Nations, it is estimated that 
$67 million will be received by the end of fiscal year 1995. 
These funds will also go directly to the Treasury.
    The Committee expects these commitments to be lived up to 
and fully expects the Administration to pursue prompt and full 
payment of all burdensharing contributions and U.N. 
reimbursements.
            HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

               Changes in the Application of Existing Law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following statements are submitted 
describing the effect of provisions in the accompanying bill 
which directly or indirectly change the application of existing 
law.
    Language is included in the bill to increase funding for 
ongoing activities which could require additional authorization 
or legislation which to date has not been enacted.
    Language is included in each paragraph in Titles I and III 
of the bill which designates the appropriations to be an 
emergency requirement.
    Language is included in Title II of the bill which rescinds 
budget authority from various appropriation accounts.
    Language is included under Title II--National Security 
Education Trust Fund which rescinds all the budget authority in 
the Fund and appropriated out of the Fund as of the date of 
enactment of this Act.
    Language is included under Title IV--General Provisions 
(section 402) which allows reimbursements received by the 
United States to be deposited in the Treasury.
                  Appropriations Not Authorized by Law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill which are not authorized by law:

Appropriations, not authorized by law

Military Personnel, Army
Military Personnel, Navy
Military Personnel, Marine Corps
Military Personnel, Air Force
Reserve Personnel, Army
Reserve Personnel, Navy
Reserve Personnel, Marine Corps
Reserve Personnel, Air Force
National Guard Personnel, Army
National Guard Personnel, Air Force
Operation and Maintenance, Army
Operation and Maintenance, Navy
Operation and Maintenance, Marine Corps
Operation and Maintenance, Air Force
Operation and Maintenance, Defense-Wide
Operation and Maintenance, Army Reserve
Operation and Maintenance, Navy Reserve
Operation and Maintenance, Marine Corps Reserve
Operation and Maintenance, Air Force Reserve
Operation and Maintenance, Army National Guard
Operation and Maintenance, Air National Guard
Other Procurement, Army
Other Procurement, Air Force
Defense Health Program

                        timely enactment needed

    The request for this emergency supplemental was not 
transmitted by the Administration to Congress until February 6, 
1995. Because of this late transmittal and the need to have the 
emergency supplemental appropriations bill for the Department 
of Defense enacted before the end of March to avoid additional 
readiness degradation, the Committee has accelerated its 
efforts to bring the bill before the House of Representatives 
at the earliest date. In order to accomplish this early 
consideration and enactment, it is not possible to delay the 
appropriations process until an authorization measure is 
considered and enacted into law. It should be noted that this 
is not an unusual process regarding emergency supplemental 
bills. Generally, supplemental authorization measures are not 
considered nor enacted before an emergency supplemental bill is 
considered by Congress.
                              Rescissions

    Pursuant to clause 1(b) of rule X of the House of 
Representatives, the following table is submitted describing 
the rescissions recommended in the accompanying bill.

                   RESCISSIONS RECOMMENDED IN THE BILL                  
------------------------------------------------------------------------
                                                 Amounts recommended for
            Department and activity                     rescission      
------------------------------------------------------------------------
        Department of Defense--Military                                 
Fiscal year 1993:                                                       
    Missile procurement, Air Force                                      
        Advanced Cruise Missile................             -$33,000,000
                                                ------------------------
        Total fiscal year 1993.................             -$33,000,000
                                                ========================
Fiscal year 1994:                                                       
    Aircraft procurement, Air Force                                     
        EF-111 SIP.............................             -$15,000,000
    Missile procurement, Air Force                                      
        Tri-service standoff attack missile                             
         (TSSAM)...............................              -86,200,000
    Defense Production Act                                              
        Defense Production Act purchases.......             -100,000,000
    Research, development, test and evaluation,                         
     Army                                                               
        TSSAM..................................              -28,300,000
    Research, development, test and evaluation,                         
     Navy                                                               
        TSSAM..................................               -1,200,000
    Research, development, test and evaluation,                         
     Air Force                                                          
        TSSAM..................................              -93,800,000
    Research, development, test and evaluation,                         
     Defense-wide                                                       
        Technology Reinvestment Program (TRP)..              -77,000,000
                                                ------------------------
          Subtotal.............................            -$401,500,000
                                                ========================
            Total fiscal year 1994.............            -$401,500,000
                                                ========================
Fiscal year 1995:                                                       
    Operation and maintenance, Air Force                                
        SR-71..................................             -$15,000,000
    Operation and maintenance, Defense-wide                             
        Other conversion initiatives...........              -18,800,000
                                                ------------------------
          Subtotal.............................             -$33,800,000
                                                ========================
    Environmental Restoration, Defense.........            -$150,000,000
    Former Soviet Union Threat Reduction.......              -80,000,000
    Aircraft Procurement, Air Force                                     
        EF-111 SIP.............................               -6,400,000
        SR-71..................................              -65,000,000
                                                ------------------------
          Subtotal.............................             -$71,400,000
                                                ========================
    National Guard and Reserve Equipment                                
        Misc. equipment........................              -30,000,000
    Research, development, Test and Evaluation,                         
     Army                                                               
        TSSAM..................................              -19,700,000
    Research, development, test and evaluation,                         
     Navy                                                               
        TSSAM..................................              -58,900,000
    Research, development, test and evaluation,                         
     Air Force                                                          
        TSSAM..................................             -$31,400,000
        EF-111 SIP.............................               -6,400,000
        F-15 SEAD..............................              -38,000,000
                                                ------------------------
          Subtotal.............................             -$75,800,000
                                                ========================
    Research, development, test and evaluation,                         
     Defense-wide                                                       
        Technology Reinvestment Program (TRP)..            -$425,000,000
        Other conversion initiatives...........              -16,600,000
        NATO R&D...............................              -35,000,000
        High definition systems................              -15,000,000
                                                ------------------------
          Subtotal.............................            -$491,600,000
                                                ========================
            Total fiscal year 1995.............          -$1,011,200,000
                                                ========================
    Related agencies                                                    
National Security Education Trust Fund, fiscal                          
 years 1992, 1993, 1994, 1995:.................                         
        Total funding available................          (-$161,287,000)
        Appropriation from Trust Fund currently                         
         unobligated...........................              -14,500,000
                                                ========================
          Total fiscal years 1993/1994/1995....          -$1,460,200,000
------------------------------------------------------------------------

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4), rule XI of the House of 
Representatives, the Committee estimates that enactment of this 
bill would have no overall inflationary impact on prices and 
costs in the operation of the national economy.
                   Comparison With Budget Resolution

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how that 
authority compares with the reports submitted under section 302 
of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. All funds 
provided in this bill are necessary to meet emergency funding 
requirements under the procedures set forth in section 
251(b)(2)(D) of the Balanced Budget and Emergency Deficit 
Control Act of 1985. These funds are exempt from the 
Committee's section 602(a) allocation.
    The bill provides no new credit authority and no new 
spending authority as described in section 401(c)(2) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344).
                      Five-Year Outlay Projections

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following information was 
provided to the Committee by the Congressional Budget Office.

                             [In thousands]

Budget authority........................................      $1,388,200
Outlays:
    Fiscal Year 1995....................................         394,828
    Fiscal Year 1996....................................         973,409
    Fiscal Year 1997....................................          73,554
    Fiscal Year 1998....................................         -60,249
    Fiscal Year 1999....................................         -43,342
          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(D) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, no new budget or outlays are provided by the 
accompanying bill for financial assistance to state and local 
governments.