[House Report 105-83]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-83
_______________________________________________________________________


 
MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR RECOVERY FROM NATURAL 
 DISASTERS, AND FOR OVERSEAS PEACEKEEPING EFFORTS, INCLUDING THOSE IN 
 BOSNIA, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1997, AND FOR OTHER 
                                PURPOSES

                                _______
                                

 April 29, 1997.--Committed to the Committee of the Whole House on 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

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 1469]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making emergency 
supplemental appropriations for recovery from natural 
disasters, and for overseas peacekeeping efforts, including 
those in Bosnia, for the fiscal year ending September 30, 1997, 
and for other purposes.

                            Bill Highlights

    The bill recommended by the Committee includes 
$8,419,452,000 of urgent supplemental appropriations to provide 
for identified needs for fiscal year 1997. This includes 
$5,508,872,000 of emergency supplemental appropriations for 
recovery from natural disasters, $2,039,880,000 of emergency 
supplemental appropriations for overseas peacekeeping efforts, 
including those in Bosnia, $113,500,000 of non-emergency 
supplemental appropriations for several miscellaneous accounts, 
and $757,200,000 of mandatory supplemental appropriations 
mostly for veterans compensation and pensions. All of these 
discretionary supplemental appropriations are offset by 
rescissions or other offsets contained in the bill with the 
exception of the mandatory appropriations which do not score 
against the Committee's discretionary spending allocation 
pursuant to the Budget Act.

                              Bill Summary                              
------------------------------------------------------------------------
                      Activity                              Amount      
------------------------------------------------------------------------
Disaster Recovery...................................      $5,508,872,000
Miscellaneous Appropriations........................         113,500,000
Domestic Offsets....................................      -5,394,109,000
                                                     -------------------
      Subtotal, Domestic Discretionary..............                   0
                                                     ===================
Peacekeeping (including Bosnia).....................       2,039,880,000
Defense Offsets.....................................      -2,040,347,000
                                                     -------------------
      Subtotal, Defense Discretionary...............            -467,000
Mandatory Appropriations............................         757,200,000
------------------------------------------------------------------------

    Many of the appropriations in the accounts providing 
recovery from natural disasters are greater than the amounts 
formally requested by the President. It is important to 
recognize that as the Committee was developing this bill, major 
new flooding was being experienced in several locations around 
the country, and the estimates of needs from other past floods 
have been revised since the time the President made his initial 
request of March 19. He made a subsequent request on April 23 
to address the flooding and related devistation in the Dakotas 
and Minnesota to which the Committee increased amounts in the 
bill. Also, the Administration has informally informed the 
Committee of several revised estimates of needs above those 
amounts officially requested. All of these factors plus a 
continuous monitoring of the situation with affected agencies 
have resulted in the funding recommendations contained in the 
bill.
    As conditions and needs continue to be better known, the 
amounts in the bill may need to be revised further. This may 
have to be done during the floor process, by the Senate, or 
during conference. It is in this light that the Committee is 
reporting this bill. Reporting the bill now and beginning the 
process of getting aid to the victims of natural disasters with 
the potential of revising estimates throughout the process is 
more important than delaying the bill in anticipation of better 
estimates.

                                TITLE I

    EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR RECOVERY FROM NATURAL 
                               DISASTERS

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

               Animal and Plant Health Inspection Service

    Boll weevil eradication is one of the most important and 
successful agricultural programs. Significant progress has 
occurred across the South in controlling this pest. Recently 
the State of New Mexico initiated a referendum to participate 
in the program. The Committee believes APHIS should continue to 
provide assistance for monitoring and tracking activities in 
Roosevelt and Lea Counties, New Mexico and is encouraged to 
facilitate implementation of a boll weevil eradication program 
pending the referendum results from Dona Ana and Sierra 
Counties, New Mexico.
    The Committee remains concerned about the impact of the 
Department's regulations regarding the wheat disease Karnal 
Bunt. It is the Committee's belief that this minor wheat 
disease has caused major problems in the international trade of 
wheat, thus impacting the domestic wheat industry. It is the 
intent of the Committee that the integrity of the U.S. wheat 
industry is maintained and remains competitive in the 
international market and that issues of grain quality and crop 
health be defined by the scientific community. Accordingly, the 
Committee directs the Department to be instrumental in 
convening an international symposium to investigate the global 
implementation of a new policy to manage Karnal Bunt as a grain 
quality issue. It is the desire of the Committee that this 
symposium be convened promptly in 1997 and its findings be 
reported to the House and Senate Committees on Agriculture and 
House and Senate Committees on Appropriations within 60 days of 
the symposium's conclusion.

                          Farm Service Agency

                     emergency conservation program

    The Committee provides $65,000,000 for the emergency 
conservation program to provide cost-sharing assistance to 
farmers and ranchers whose farmland was damaged as a result of 
flooding and other natural disasters. This funding is available 
nationwide for all qualified applicants. The Committee has 
provided authority to use these funds for expenses related to 
livestock carcass removal.

                      conservation reserve program

    The Committee continues to support strongly the objectives 
of the Conservation Reserve Program (CRP). The Committee 
believes that the best way to maximize conservation benefits is 
to assure competitive enrollments over time. By limiting the 
extent of enrollments in the first year of the reauthorized 
program, the Committee believes that targeting can be improved 
to enhance the conservation benefits of the CRP.
    The Committee is aware of and approves the recent 
initiatives by the Department to target watershed objectives 
through the continuous enrollment program and through State-
initiated enhancement proposals that would help target 
resources, such as those submitted by Illinois, Minnesota, and 
Maryland. More time and opportunity are needed to develop this 
aspect of the program, and the Committee believes the 
Department should reserve sufficient acreage to maximize the 
potential of these initiatives.
    The Committee is also concerned that proposed enrollments 
in the current sign-up would provide little benefit to several 
regions of the country, in part because of rental rate formulas 
that do not take account of the different circumstances that 
influence fair market value in all regions of the country. 
Although the Committee expects that the great majority of CRP 
enrollments will and should remain in regions of the country 
that have traditionally participated heavily in the program, it 
encourages the Department to use its full authority to assure 
that CRP provides meaningful benefits nationwide for watershed-
based approaches that achieve environmental benefits such as 
water quality, flood control, wetlands conservation, and 
wildlife habitat.
    The Committee has further clarified that the authority to 
enroll marginal pasturelands under the criteria of the CRP 
applies to lands used for grazing regardless of their degree of 
manipulation. This clarification should assist in the 
nationwide success of the continuous enrollment program and 
does not affect the statutory criteria for enrolling marginal 
pastureland. Rangeland and riparian areas are important to 
protect for a variety of conservation and environmental 
purposes.

                        tree assistance program

    The Committee has provided funds for emergency assistance 
to small orchardists. Similar assistance was authorized and 
provided through the Tree Assistance Program in the Disaster 
Assistance Act of 1988 (P.L. 100-387), the Disaster Assistance 
Act of 1989 (P.L. 101-82), and by authorizations in the 101st 
and 102nd Congresses.
    The Committee directs the Department to administer the 
program with provisions enacted in past disaster assistance 
acts, including provisions that limit the assistance to 
orchardists who own 500 or fewer acres, whose gross income does 
not exceed $2,000,000, and who suffer losses in excess of 35 
percent. In addition, reimbursement shall not exceed 65 percent 
of the cost of replanting trees, assistance in a calendar year 
may not exceed $25,000, and no duplicative payments may be 
received under this authority and the forestry incentives 
program, environmental quality incentives program, or other 
Federal programs.

                        barley payment inequity

    ``The Committee is aware that a mistake was made in 
interpreting data utilized in determining the payment formula 
established under the Agriculture Market Transition Act (7 
U.S.C. 7201 et seq.) for the 1996 AMTA payments to the 
producers of barley. Due to this misinterpretation of data, 
1996 payments to barley producers were approximately $35 
million less than intended by Congress. Accordingly, it is the 
intent of the Committee that the Secretary of Agriculture 
shall, within 60 days of enactment of this legislation, submit 
a report to the appropriate committees of Congress detailing 
what specific authority would be required from Congress to 
allow the Secretary to provide an additional $35 million to the 
1997 barley payment adjustment.

                 Natural Resources Conservation Program

               watershed and flood prevention operations

    The Committee provides $150,700,000 for emergency watershed 
and flood prevention operations to repair damages to waterways 
and watersheds resulting from flooding and other natural 
disasters. These funds would be used to provide disaster 
assistance to communities to reduce hazards to life and 
property in watersheds damaged by natural disasters. This 
funding is available nationwide for all qualified applicants. 
Of the total amount provided, not more than $10 million may be 
used for floodplain easements. The Department is in the 
rulemaking process of this new program. This funding will be 
used as a pilot program until rules can be published. The 
Committee also prohibits the use of these funds for the salmon 
memorandum of understanding. The Committee believes the 
Department's first priority should be to take care of damages 
resulting from natural disasters.
    The Committee is concerned about the current condition of 
levees along the Cosumnes River, California. This flood control 
system suffered catastrophic failure resulting from this past 
winter's storms in the area. More than 30 levee failures 
allowed river waters to flood homes and destroy fertile 
farmlands along the Cosumnes. Local officials are to be 
commended for their response to find immediate and long-term 
solutions that will minimize future flooding. To assist their 
efforts, the Committee encourages the Department to provide 
assistance to qualified applicants for the repair, restoration, 
reconstruction, and replacement of the levees along the 
Cosumnes River, California.

                         Rural Housing Service

                  rural housing insurance fund program

    The Department has not identified any specific use for the 
amount requested. Of the $59,000,000 appropriated in fiscal 
year 1997 for loans for the rehabilitation of rural rental 
housing, approximately $50,000,000 remains unobligated as of 
February 1, 1997. USDA officials have indicated to the 
Committee that applications for emergency assistance are given 
priority consideration over routine applications for funding. 
Therefore, the Committee believes that more than adequate 
funding is available for emergency requests.

                        rural housing assistance

    The Department has not identified any specific use for the 
amount requested. Of the funds allocated by the Department from 
fiscal year 1997 appropriations, more than half remains 
unobligated for very low-income housing repair grants and more 
than two thirds remains unobligated for farm labor housing 
grants as of February 1, 1997. In addition, the Administration 
has available from the Fund for Rural America $17.7 million for 
construction or rehabilitation of single family rural housing 
and $2.0 million for farm labor housing grants and loans. USDA 
officials have indicated to the Committee that applications for 
emergency assistance are given priority consideration over 
routine applications for funding. Therefore, the Committee 
believes that more than adequate funding is available for 
emergency requests.
    The Committee notes the damage to College Station, 
Arkansas, resulting from Spring 1997 storm events and expects 
the Rural Housing Service to provide assistance related to 
these storms. The Committee has provided bill language making 
the community eligible. In addition, the Committee notes the 
availability of funds in the Community Facilities Grants 
account and urges the Secretary to provide State directors 
discretion to provide these and other funds to communities 
otherwise eligible for Community Facilities Loans for response 
to direct and indirect damage resulting from recent natural 
disasters.

                        Rural Utilities Service

                   rural utilities assistance program

    The Department has not identified any specific use for the 
amount requested. More than half the $567,000,000 appropriated 
for this account in fiscal year 1997 remains unobligated as of 
February 1, 1997. The Administration also has allocated from 
the Fund for Rural America $9.1million for water and waste 
needs. USDA officials have indicated to the Committee that applications 
for emergency assistance are given priority consideration over routine 
applications for funding. Therefore, the Committee believes that more 
than adequate funding is available for emergency requests.

                       Food and Consumer Service

                        child nutrition programs

    The Committee does not concur with the budget request for 
the nutrition education and training program. In a hearing 
before the Committee, a Department witness testified that the 
law did not prohibit reprogramming funds for this purpose, but 
that the decision not to reprogram was an internal executive 
branch decision. The Committee notes that since $3,750,000 has 
already been reprogrammed within the child nutrition program 
for nutrition education and training activities, it would not 
oppose the reprogramming of the remaining $6,250,000 from 
within the child nutrition program. This program was provided 
$8.6 billion in the fiscal year 1997 appropriations bill.

special supplemental nutrition program for women, infants, and children 
                                 (WIC)

    The Committee provides $38,000,000 for the special 
supplemental nutrition program for women, infants, and children 
(WIC). The fiscal year 1997 appropriations bill was signed into 
law on August 6, 1996, almost two months before the start of 
the fiscal year. During the last few months of fiscal year 
1996, participation levels in the program were allowed to 
exceed a level that could be maintained in fiscal year 1997 
without additional funding. While the Committee is concerned 
that the Department and states could not manage to operate the 
program within the discretionary funds provided, it is also 
concerned that program participants not suffer the 
consequences.
    The program is projecting a carryover balance of 
$100,000,000 at the end of fiscal year 1997. Understanding that 
the program needs some level of carryover funds for continued 
operations, the Committee expects the Department to reduce the 
carryover balance to a level that will maintain the current 
participation level of 7.4 million for the remainder of the 
fiscal year. The Committee also directs the Department to take 
the necessary steps to manage participation within available 
funds and not exceed this level at the end of fiscal year 1997.

                  Commodity Futures Trading Commission

    The Committee recommends that no action be taken to 
implement the Chicago Board of Trade proposal to amend delivery 
specifications for corn and soybeans until the GAO conducts a 
comprehensive review of the proposal. In conducting its review 
of the Board of Trade recommendations, the GAO shall use the 
following criteria: the need for diversity of delivery 
locations and modes of transportation; whether price 
differentials recognize obvious increases in the value of grain 
and oilseeds at points further along in the flow to consumers; 
the ability of the contracts to balance the needs of the 
domestic market as well as the export market and to assure 
market competitiveness; and that the recommendations satisfy 
concerns about potential manipulation as addressed in the 
Commodity Exchange Act, Section 5a(a)(10).

                               CHAPTER 2

                         DEPARTMENT OF JUSTICE

                         General Administration

                         Counterterrorism Fund

    The Committee is aware of considerable efforts by the State 
of New York and certain counties and local jurisdictions to 
support the Federal Bureau of Investigation in its effort to 
investigate the possibility that terrorism was responsible for 
the explosion of Flight TWA 800 off the Long Island coast on 
July 17, 1996.Extraordinary expenses have been incurred by 
State and local agencies for evidence recovery operations, security, 
forensic and medical examination of evidence, air support for the FBI, 
and logistical support. The FBI could not have conducted this 
investigation of a possible terrorist attack without the assistance 
provided by these agencies. The Committee therefore directs the 
Attorney General to provide $12,420,000 to the FBI from the 
Counterterrorism Fund, so the FBI can reimburse these State and local 
agencies for their assistance in this investigation, subject to 
verification of appropriate costs.
    The Committee is also aware of the security arrangements 
required to protect against any potential threats of terrorism 
during the Summit of Eight scheduled for June 20 through 22, 
1997, in Denver, as well as from the continuing Oklahoma City 
bombing trial. The Committee understands that city and county 
law enforcement agencies in Denver will be providing the 
majority of security and logistical support to the FBI in its 
counterterrorism mission with regard to the Summit. The 
Committee directs the Attorney General to provide $1,950,000 to 
the FBI from the Counterterrorism Fund for reimbursement to 
State and local agencies for this support, subject to 
verification of appropriate costs.
    The Committee also expects to be notified by the Department 
of Justice within two days after passage of this bill in the 
House of Representatives of any potential issues surrounding 
the cost estimates or activities being provided by State and 
local agencies on behalf of the FBI's counterterrorism efforts 
for these events.

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration

                Economic Development Assistance Programs

    The Committee has included $49,700,000 in contingent 
emergency appropriations for economic development assistance 
programs, of which $47,700,000 is for infrastructure expenses 
and the capitalization of revolving loan funds to assist in the 
recovery efforts of communities impacted by recent flooding, 
and $2,000,000 is for administrative expenses related to these 
activities. The Committee has provided this funding based on 
recent information provided by the Administration on the need 
for assistance. The Committee expects the EDA to submit a plan 
on the proposed expenditure of these funds prior to releasing 
these funds.
    The Committee has not included the transfer of $1,200,000 
from the Economic Development Revolving Fund to Economic 
Development Assistance Programs for planning and technical 
assistance, as requested by the Administration. It is the 
Committee's understanding that most of these funds have been 
requested to place flood disaster recovery coordinators in 
impacted regions to coordinate disaster response efforts. The 
Committee notes that the Federal Emergency Management Agency 
(FEMA), not EDA, is responsible for coordinating federal 
disaster response activities, and believes FEMA is best 
qualified to carry out this function.

             National Institute of Standards and Technology

                     Industrial Technology Services

    The Committee has included language to clarify that a total 
of $35,000,000 in fiscal year 1997 funds is available for new 
awards under the Advanced Technology Program (ATP). When 
combined with $27,000,000 in unobligated balances available 
from prior year appropriations, a total of $62,000,000 is 
available for new grant awards in fiscal year 1997, in addition 
to $6,000,000 previously awarded with fiscal year 1996 funds. 
In addition, $155,000,000 is available in fiscal year 1997 to 
pay the continuation costs of grants made in prior fiscal 
years, and $37,000,000 is available for administration, small 
business innovative research, and lab support. Any additional 
funds that become available through recoveries or any other 
means may be spent only after notification to the Committee 
under standard reprogramming procedures.

            National Oceanic and Atmospheric Administration

                  Operations, Research, and Facilities

    The Committee has not included $12,000,000 in emergency 
appropriations requested by the Administration for the NOAA 
Operations, Research, and Facilities account. The 
Administration proposed a total of $14,000,000 to be used for 
fishery habitat restoration, to be derived from $12,000,000 in 
emergency appropriations and the redirection of an additional 
$2,000,000 from within the National Marine Fisheries Service 
(NMFS). Of this total amount, $11,000,000 was requested for a 
new program to provide grants to local groups for land 
acquisition along in-land waterways for long-term salmon 
restoration activities, and $3,000,000 was requested for 
Federal-State technical assistance and public education.
    The request for $11,000,000 for land acquisition along in-
land waterways represents a new activity for NOAA related to 
its on-going long-term salmon restoration activities, and is 
not related to activities necessary to recover from damages 
caused by recent flooding in the Pacific Northwest. The 
Committee notes that the Corps of Engineers and the Federal 
Emergency Management Agency, not NOAA, are responsible for 
conducting emergency repair and restoration of these waterways. 
The Committee believes that initiating a new program for land 
acquisition, the purposes and structure of which have yet to be 
defined, outside of the immediate requirements of disaster 
response should be considered as part of the regular 
appropriations process, and therefore has not recommended 
funding.
    In addition, the Committee has not included funds to 
develop technical guidelines for Federal and State agencies 
involved in disaster recovery activities, or for a public 
education program on fish-friendly solutions to flooding 
problems, because these are longer-term projects, not directly 
connected to disaster assistance. The Committee would be 
willing to consider a reprogramming request out of regular 
fiscal year 1997 appropriations, in accordance with section 605 
of the fiscal year 1997 Appropriations Act, for the highest 
priority activities.

                              Construction

    The Committee has included $10,800,000 in emergency funds 
for the National Oceanic and Atmospheric Administration's 
(NOAA) ``Construction'' account, as requested by the 
Administration. These funds are to support theimmediate repair 
of fish hatcheries along the Columbia River which experienced severe 
damage from the recent flooding in the Northwest.

                          DEPARTMENT OF STATE

              International Organizations and Conferences

                           Arrearage Payments

    The Committee has not included $921,000,000 requested by 
the Administration as an advance appropriation for fiscal year 
1999 for payment of arrears on prior year assessments related 
to the United Nations regular budget and peacekeeping 
activities, and 46 other international organizations. 
Discussions are currently ongoing between the Administration 
and the Congress relating to the amount of arrears, the reforms 
that need to be put into place prior to payment of the arrears, 
the period of time over which arrears would be paid, the 
mechanisms that would trigger release of funds, and 
improvements in the consultative process between the 
Administration and Congress. It would be premature to provide 
funding for arrearage payments, which are not proposed to be 
made until fiscal year 1999, prior to the conclusion of these 
discussions.

                               CHAPTER 3

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil

 flood control, mississippi river and tributaries, arkansas, illinois, 
       kentucky, louisiana, mississippi, missouri, and tennessee

    The Committee has recommended $20,000,000 for the Corps of 
Engineers to perform protective and emergency measures to 
ensure the operation and stability of the flood protection 
system of the Mississippi River and Tributaries project. Work 
would include repairs to levees, dikes, and revetments; 
dredging to restore channel capacity; and repairs to diversion 
structures damaged in the recent flooding in the lower 
Mississippi River valley. The entire amount has been designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended. The Administration made no 
request for funds for the Mississippi River and Tributaries 
project.

                   operation and maintenance, general

    The Committee has recommended $150,000,000 for the Corps of 
Engineers to perform emergency maintenance of projects impacted 
by flooding and other natural disasters, $111,000,000 more than 
the amount requested by the Administration. The additional 
funds will permit the Corps of Engineers to: correct unsafe 
conditions and prevent navigation delays resulting from debris 
accumulation, bank failures, and groin and jetty damages in 
ports and navigable rivers in California; restore navigable 
depths and widths to the Mississippi River--Baton Rouge to the 
Gulf, Mississippi River Outlets at Venice, and Atchafalaya 
River navigation projects; restore navigable depths and widths 
in commercial navigation channels along the Gulf Coast of 
Texas; repair damages to Corps of Engineers projects resulting 
from flooding in the Ohio River valley; and repair damages to 
Corps of Engineers projects resulting from ongoing flooding in 
the upper Mississippi River and Missouri River valleys. The 
entire amount has been designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(D)(i) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, 
as amended.

                 flood control and coastal emergencies

    The Committee has recommended $415,000,000, $122,800,000 
more than the total amount requested by the Administration, for 
the Corps of Engineers to repair eligible levees and other 
flood control works in states affected by floods in the winter 
and spring of 1997 and to perform other emergency operations 
activities associated with those floods. The entire amount has 
been designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended.
    The Committee has not included language proposed by the 
Administration authorizing the Secretary of the Army to 
construct an outlet from Devils Lake in North Dakota to the 
Sheyenne River and has also deleted the funds requested for 
that work. The Committee recognizes the serious nature of the 
problem at Devils Lake and will consider proposed solutions as 
the appropriations process proceeds.
    The Committee recognizes the catastrophic damages in 
Falmouth, Kentucky, resulting from severe flooding which 
occurred in March, 1997. This destruction, dislocation, and 
loss of life compels the Committee to consider solutions as the 
appropriations process continues for fiscal year 1998.

                         construction, general

    San Timoteo Creek, California.--Pursuant to section 103(k) 
of the Water Resources Development Act of 1986, the Secretary 
of the Army may permit the non-Federal sponsor of a flood 
control project to make its required contribution of project 
costs over a period of not more than thirty years from the date 
of completion of the project. The Committee directs the Corps 
of Engineers to apply this provision of law to the San Timoteo 
Creek feature of the Santa Ana River Mainstem project in 
California.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation

                       operation and maintenance

    The Committee has recommended $7,355,000, $2,855,000 above 
the amount requested by the Administration, for the Bureau of 
Reclamation to repair damage to projects that occurred during 
winter flooding in the western states, particularly California 
and Nevada. Work will include repairs to access roads, pumping 
plants, electrical equipment, embankments, and spillways. The 
entire amount has been designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(D)(i) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, 
as amended.

                     General Provisions, Chapter 3

    Sec. 301.--The Corps of Engineers of the Department of the 
Army has been the lead Federal agency regarding water and 
related resources of the Susquehanna River and Delaware River 
basins since the basin compacts were established by law. The 
Corps of Engineers continues to play a pivotal role in 
representing the Federal interest in the development and 
conservation of water and related resources in these basins, in 
coordination with other Federal agencies and in cooperation 
with state and local governments. This supplemental language 
would redefine Federal Commission positions so that, beginning 
in 1997 and thereafter, the United States members and alternate 
members appointed under the Susquehanna River Basin Compact and 
the Delaware River Basin Compact shall be military officers of 
the Corps of Engineers who shall serve without additional 
compensation.
    Sec. 302.--The Susquehanna River Basin Commission was 
established in 1970 by P.L. 91-575 and the Delaware River Basin 
Commission in 1961 by P.L. 87-328. The Committee notes that 
these laws differ slightly on the terms served by the United 
States members. On the Susquehanna River Basin Commission, the 
United States member serves at the pleasure of the President. 
On the Delaware River Basin Commission, the member only serves 
during the term of office of the President. The Committee has 
included language which provides that officers of the Army 
Corps of Engineers will serve as United States members of these 
two commissions. However, it seems prudent and practical for 
both members to serve at the pleasure of the President. The 
Committee has included language whichamends the 1961 law to 
make the membership provision consistent with that in the 1970 law.
    Sec. 303.--The bill includes language which provides that 
the policy issued on February 19, 1997, by the U.S. Fish and 
Wildlife Service implementing emergency provisions of the 
Endangered Species Act and applying to 46 California counties 
that were declared Federal disaster areas shall apply to all 
counties nationwide heretofore or hereafter declared Federal 
disaster areas at any time during 1997 and shall apply to 
repair activities on flood control facilities in response to an 
imminent threat to human lives and property and shall remain in 
effect until the Assistant Secretary of the Army for Civil 
Works determines that 100 percent of emergency repairs have 
been completed, but shall not remain in effect later than 
December 31, 1998.

                               CHAPTER 4

                       DEPARTMENT OF THE INTERIOR

    The funding provided in this supplemental budget for the 
Department of the Interior for fiscal year 1997 is to repair 
damages caused by floods and other natural disasters including 
floods and ice storms in the West, snow and floods in the 
Midwest and the East, and tornado and high winds in Arkansas 
and Louisiana. The recommended funding levels are, in some 
cases, based on preliminary estimates. As a result, the 
Committee understands that the agencies will need to adjust 
funding allocations as more definitive damage repair estimates 
are established. To the extent these adjustments exceed the 
thresholds in the established reprogramming guidelines, the 
Committee will give expedited consideration to reprogramming 
requests related to these disasters and encourages the 
Department and the Office of Management and Budget to do 
likewise.

                       Bureau of Land Management

                              Construction

    The Committee recommends $4,796,000 for construction 
instead of $3,003,000 as proposed by the Administration. Within 
the total, $3,003,000 are to be derived by the transfer of 
unobligated balances from supplemental appropriations made 
available for the ``Oregon and California Grant Lands'' account 
in fiscal year 1996. These funds are to be used for road 
repairs, restoration of eroded recreation sites, bridge repair, 
and other repairs associated with snow and flood damage.

                   Oregon and California Grant Lands

    The Committee recommends $2,694,000 for Oregon and 
California grant lands as proposed by the Administration for 
road repair, bridge repair, damage due to mud slides, and other 
repairs associated with snow and flood damage. These funds are 
to be derived by the transfer of unobligated balances from 
supplemental appropriations made available under this heading 
in fiscal year 1996.

                United States Fish and Wildlife Service

                          Resource Management

    The Committee recommends $2,250,000 for resource management 
instead of $2,000,000 as proposed by the Administration. Of 
this amount, $2,000,000 is to provide technical assistance to 
private landowners and to government agencies on fish and 
wildlife habitat issues and $250,000 is to replace fish fry 
killed in the April snow storm in the Northeast.

                              Construction

    The Committee recommends $81,000,000 for construction 
instead of $32,000,000 as proposed by the Administration. These 
funds are to addressdamages caused by the floods in the West, 
Midwest and Ohio River area; storms in the East; and tornadoes and high 
winds in Arkansas and Louisiana.
    The Committee agrees to the following distribution of 
funds:

        Region: States                                            Amount
1: California, Idaho, Nevada, Oregon, Washington........     $45,546,000
2: Oklahoma, Texas......................................       6,292,000
3: Illinois, Indiana, Iowa, Minnesota, Wisconsin........      12,789,000
4: Alabama, Arkansas, Louisiana, Mississippi, Tennessee.       4,387,000
5: Maine, Massachusetts, West Virginia..................       1,431,000
6: Montana, North Dakota, South Dakota, Utah............      10,555,000
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................      81,000,000

                            Land Acquisition

    The Committee recommends $15,000,000 for land acquisition 
as proposed by the Administration. This amount will enable the 
Fish and Wildlife Service to acquire land and water rights, on 
a willing seller basis, as a cost-effective alternative to 
expensive floodplain levee and land repair necessitated by the 
severe winter flooding in the western States. The Committee 
encourages the agency to evaluate carefully each specific 
situation and limit the acquisitions to those areas where the 
cost of land acquisition is less that the cost of damage 
repairs. Additional consideration should be given to those 
areas where past flooding has resulted in repeated repairs and 
replacement of levees.
    The Committee encourages the Service to leverage these 
limited land acquisition funds by working with the Wetlands 
Reserve Program and with non-profit entities like the National 
Fish and Wildlife Foundation.

                         National Park Service

                              Construction

    The Committee recommends $196,912,000 for construction 
instead of $187,779,000 as proposed by the Administration. 
These funds include a total of $186,053,000 for repairs and 
replacement of facilities damaged by winter storms at Yosemite 
National Park including $30,000,000 in contingency funds as 
well as $10,000,000 in non-emergency funds to implement the 
Yosemite Valley Transportation Plan. The Committee agrees to 
rescind $10 million in Clean Coal Technology funding in the 
Department of Energy, as proposed by the Administration, to 
offset the non-emergency request.
    The Committee strongly encourages the National Park Service 
to work closely with the local communities surrounding Yosemite 
to ensure that the Service's transportation plan is consistent 
and compatible with the Yosemite Area Regional Transportation 
Strategy (YARTS) planning effort.
    The Committee recommends the following distribution of 
funds:

        Park Unit                                                 Amount
Yosemite NP, CA (emergency) \1\.........................    $176,053,000
        Park Unit                                                 Amount
    Transportation (non-emergency)......................      10,000,000
Redwood NP, CA..........................................       8,955,000
Sequoia/Kings Canyon NP, CA.............................         286,000
Whiskeytown NRA, CA.....................................         184,000
Devils Postpile NM, CA..................................          73,000
Oregon Caves NM, OR.....................................          68,000
Lava Beds NM, CA........................................          47,000
North Cascades NP, WA...................................          41,000
Mammuth Cave NP, KY.....................................         542,000
North Dakota (3 projects): Theodore Roosevelt NP, ND, 
    Knife River NHS, ND, Fort Union Trading Post NHS, ND         210,000
Cape Cod NS, MA.........................................          60,000
Fire Island NS, NY......................................         125,000
Minute Man NHP, MA......................................          79,000
Roosevelt/Vanderbilt Sites, NY..........................         189,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total...........................................     196,912,000

\1\ Includes $30 million in contingency emergency appropriations.
---------------------------------------------------------------------------

                    United States Geological Survey

                 Surveys, Investigations, and Research

    The Committee recommends $4,290,000 for surveys, 
investigations, and research instead of $1,300,000 as proposed 
by the Administration. This funding is to be used to maintain 
continuity of services for the national streamflow network, and 
to improve risk assessment through post flood data collection.

                        Bureau of Indian Affairs

                      Operation of Indian Programs

    The Committee recommends $11,100,000 for operation of 
Indian programs instead of $5,800,000 as proposed by the 
Administration. These funds are to be used for emergency 
welfare assistance, emergency school operations, heating costs, 
snow removal, and other activities related to flood and snow 
damages.
    The Committee directs the Bureau of Indian Affairs to 
prepare a report to Congress, within 30 days, on the estimated 
additional caseload and potential costs resulting from welfare 
reform in States where there are Indian reservations. The BIA 
should also report on the consequences if the Bureau does not 
have sufficient funds to meet the additional caseload.

                              Construction

    The Committee recommends $5,554,000 for construction 
instead of $5,000,000 as proposed by the Administration. These 
funds are to be used for emergency repairs related to flood and 
snow damages.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service

    The Committee recommends that supplemental funds be 
provided for repairs and restoration caused by a series of 
floods, landslides and ice storms in the Pacific Northwest, 
California and Nevada mountains, the northern Rockies and the 
Ohio River area. The Committee recognizes that there may be a 
need to adjust funding allocations as more definitive damage 
repair estimates are established. To the extent these 
adjustments exceed the thresholds in the established 
reprogramming guidelines, the Committee will give expedited 
consideration to reprogramming requests related to these 
disasters and encourages the Department and the Office of 
Management and Budget to do likewise.

                         National Forest System

    The Committee recommends $37,107,000 for the National 
forest system instead of $25,000,000 as proposed by the 
Administration. Funds provide for road and trail maintenance 
and relocation, soil stabilization, recreational and 
administrative facility repair and maintenance, fish and 
wildlife habitat restoration, and required studies, design, and 
National Environmental Policy Act work. Region 5 funding 
includes $800,000 for Shasta-Trinity Lakes debris clean-up.
    The Committee recommends the following distribution of 
funds:

----------------------------------------------------------------------------------------------------------------
                                      Region 1     Region 4     Region 5     Region 6     Region 9   State total
----------------------------------------------------------------------------------------------------------------
Idaho.............................      950,000    2,100,000  ...........       10,000  ...........    3,060,000
Montana...........................       50,000  ...........  ...........  ...........  ...........       50,000
Nevada............................  ...........    2,500,000  ...........  ...........  ...........    2,500,000
California........................  ...........    1,600,000   15,000,000      190,000  ...........   16,790,000
Oregon............................  ...........  ...........  ...........   10,000,000  ...........   10,000,000
Washington........................  ...........  ...........  ...........    1,800,000  ...........    1,800,000
Illinois..........................  ...........  ...........  ...........  ...........        7,000        7,000
Indiana...........................  ...........  ...........  ...........  ...........    2,000,000    2,000,000
Ohio..............................  ...........  ...........  ...........  ...........      900,000      900,000
                                   -----------------------------------------------------------------------------
      Region total................    1,000,000    6,200,000   15,000,000   12,000,000    2,907,000   37,107,000
----------------------------------------------------------------------------------------------------------------

                    Reconstruction and Construction

    The Committee recommends $32,334,000 for reconstruction and 
construction instead of $13,000,000 as proposed by the 
Administration. Funds provide for road and trail 
reconstruction, construction and relocation, recreational and 
administration facility construction, reconstruction and 
relocation, and associated planning, design work and technical 
support.
    The Committee recommends the following distribution of 
funds:

----------------------------------------------------------------------------------------------------------------
                                      Region 1     Region 4     Region 5     Region 6     Region 9   State total
----------------------------------------------------------------------------------------------------------------
Idaho.............................      150,000      938,000  ...........       40,000  ...........    1,128,000
Montana...........................       93,000  ...........  ...........  ...........  ...........       93,000
Nevada............................  ...........      250,000  ...........  ...........  ...........      250,000
California........................  ...........    3,079,000    9,200,000      150,000  ...........   12,429,000
Oregon............................  ...........  ...........  ...........   13,300,000  ...........   13,300,000
Washington........................  ...........  ...........  ...........    3,700,000  ...........    3,700,000
Illinois..........................  ...........  ...........  ...........  ...........       34,000       34,000
Indiana...........................  ...........  ...........  ...........  ...........            0            0
Ohio..............................  ...........  ...........  ...........  ...........    1,400,000    1,400,000
                                   -----------------------------------------------------------------------------
      Region total................      243,000    4,267,000    9,200,000   17,190,000    1,434,000   32,334,000
----------------------------------------------------------------------------------------------------------------

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         Indian Health Service

                         indian health services

    The Committee recommends $1,000,000 for Indian health 
services. The Administration proposed no funding for this 
account. These funds are to be used for emergency contract 
health services, medications and pharmaceuticals, and other 
emergency services associated with snow and flood damage.

                        indian health facilities

    The Committee recommends $2,000,000 for Indian health 
facilities. The Administration proposed no funding for this 
account. These funds are to be used for repair of fire 
sprinkler systems, building foundations, sewer systems, and 
other facilities repairs associated with snow and flood damage.

                      General Provision, Chapter 4

    Sec. 401.--The Committee recommends amending the recreation 
fee demonstration pilot program which was enacted in fiscal 
year 1996. The amendment would remove the inflation ``penalty'' 
in the current legislation which reduces the amount of fees 
which are kept by the individual fee collecting units each 
year. The amendment also changes the base year for calculating 
fee increases from fiscal year 1995 to fiscal year 1994. These 
changes will result in additional fees being retained by 
individual collecting units beginning in fiscal year 1997 and 
continuing through the end of the pilot program. The decrease 
in revenues to the Treasury in fiscal year 1997 resulting from 
this amendment are offset by a rescission in the Clean Coal 
Technology program in the Department of Energy.

                               CHAPTER 5

                      DEPARTMENT OF TRANSPORTATION

                              Coast Guard

                              retired pay

    The Committee has provided $4,200,000 to cover the 
increased cost of the Coast Guard's military retired pay. This 
amount is the same as requested by the President and is a 
mandatory requirement.

                    Federal Aviation Administration

                        facilities and equipment

                    (airport and airway trust fund)

    The Committee has provided an additional $40,000,000 for 
explosive detection systems to supplement funding provided in 
earlier appropriations Acts to improve security at the nation's 
airports. The Committee believes itis imperative that FAA field 
additional systems to reduce the threat of terrorist action as soon as 
possible. According to the FAA, without these additional funds, the 
production line for the only certified system will be interrupted, 
resulting in an unacceptable delay in security improvements and higher 
costs for future systems.

                     Federal Highway Administration

                          Federal-Aid Highways

                        Emergency Relief Program

                          (Highway Trust Fund)

    The Committee has provided a total of $650,000,000 for 
emergency relief activities of the Federal Highway 
Administration, an increase of $359,000,000 over the 
President's request. The Committee is concerned that the level 
requested by the administration is insufficient to meet 
existing identified needs and that the funds would be fully 
obligated by the end of July 1997, possibly requiring another 
supplemental before the end of the summer.
    Emergency relief funds will provide additional resources to 
repair highway damage resulting from the floods in the western, 
midwest and mid-Atlantic regions, and the northern plains 
states of the nation between December 1996 and April 1997. The 
Committee has included bill language that lifts the 
$100,000,000 limit on obligations per state for the December 
1996 and January 1997 floods in the West.
    The bill also includes language that make emergency relif 
funding available for the repair or reconstruction of CA 
Highway 1 at Devil's Slide in San Mateo County
    Of the funds provided, $374,000,000 shall be available only 
to the extent an official budget request for a specific dollar 
amount, that includes the designation of the entire amount of 
the request as an emergency requirement, is transmitted by the 
President to the Congress.

                          Federal-Aid Highways

                          (Highway Trust Fund)

    The bill includes $318,077,043 in additional federal-aid 
highway obligational authority for fiscal year 1997 and makes 
the additional limitation available to those states that had 
their 1997 limitation reduced as a result of a recent 
correction of a clerical error made by the Department of the 
Treasury in recording the Highway Trust Fund receipts in 1994. 
This error resulted in the overstatement of Highway Trust Fund 
contributions by $1.5 billion in 1995. These funds should have 
been credited to the 1994 Highway Trust Fund contributions.
    The following table portrays estimated obligations by state 
of the additional 1997 obligational authority contained in the 
bill:
        State                                                     Amount
Alabama.................................................      $9,192,589
Alaska..................................................................
Arizona.................................................       8,882,817
Arkansas................................................       6,506,921
California..............................................      50,711,555
Colorado................................................................
Connecticut.............................................................
Delaware................................................................
District of Columbia....................................................
Florida.................................................      25,954,346
Georgia.................................................      19,382,218
Hawaii..................................................................
Idaho...................................................................
Illinois................................................................
Indiana.................................................      11,574,082
Iowa....................................................................
Kansas..................................................................
Kentucky................................................       8,355,700
Louisiana...............................................       7,240,399
Maine...................................................................
Maryland................................................       9,754,587
Massachusetts...........................................................
Michigan................................................      14,747,139
Minnesota...............................................................
Mississippi.............................................       5,314,543
Missouri................................................       9,678,737
Montana.................................................................
Nebraska................................................................
Nevada..................................................................
New Hampshire...........................................................
New Jersey..............................................................
New Mexico..............................................................
New York................................................................
North Carolina..........................................      15,054,880
North Dakota............................................................
Ohio....................................................       5,189,010
Oklahoma................................................       7,096,552
Oregon..................................................       5,895,465
Pennsylvania............................................      16,916,047
Rhode Island............................................................
South Carolina..........................................       9,006,026
South Dakota............................................................
Tennessee...............................................       9,427,283
Texas...................................................      38,545,766
Utah....................................................       2,222,803
Vermont.................................................................
Virginia................................................      13,986,103
Washington..............................................................
West Virginia...........................................................
Wisconsin...............................................       7,441,475
Wyoming.................................................................
Puerto Rico.............................................................
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     318,077,043

                    Federal Railroad Administration

              emergency railroad rehabilitation and repair

    The bill provides $10,000,000 for emergency expenses to 
repair and rebuild rail lines damaged as a result of the floods 
in the northern plains states in the spring of 1997. These 
funds shall be awarded on a case-by-case basis at the 
discretion of the Secretary. The Committee believes, however, 
that to the extent practicable, the Secretary should give 
priority consideration to publicly-owned trackage and rights-
of-way.

                             RELATED AGENCY

                  National Transportation Safety Board

                         Salaries and Expenses

    The bill provides $23,300,000, of which $20,200,000 is made 
available for TWA Flight 800 accident investigation costs, 
including wreckage location and recovery, facility rental, 
fuselage mock-up, fire and explosion testing as well as NTSB 
travel, overtime, and command center costs. In addition, funds 
are provided for assistance to families of aviation accident 
victims, as authorized by the Federal Aviation Reauthorization 
Act of 1996. The bill also includes $3,100,000 to reimburse 
Metropolitan Dade County, Florida for costs it incurred as a 
result of the crash of ValuJet 592. Of the total, $4,877,000 
shall remain available until expended.
    Language is included in the bill that requires the NTSB to 
reimburse the Navy up to $10,330,000, from the total 
appropriation for the costs it incurred in connection with the 
investigation of TWA Flight 800.

                     General Provisions, Chapter 5

    The bill includes two corrections of enrolling errors 
within the Department of Transportation and Related Agencies 
Appropriations Act, 1997, the first relating to the DeKalb 
County, Georgia light rail project (section 501) and the second 
to the Bureau of Transportation Statistics (section 502).
    Section 503 includes a provision that makes available 
$500,000 in additional contract authority for Section 410 
alcohol-impaired driving prevention incentive grants.
    Section 504 includes a provision that makes available 
contract authority for the National Driver Register in fiscal 
year 1997.

                               CHAPTER 6

            TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT

                      United States Postal Service

                  Payments to the Postal Service Fund

    The Committee has provided $5,300,000 for revenue foregone 
on free and reduced rate mail, compared to $5,363,000 requested 
by the Administration. This amount, combined with the fiscal 
year 1997 appropriation, fully funds the Postal Service for 
revenue foregone reform reimbursement in the amount of 
$29,000,000, as authorized by law.

                          Independent Agencies

                      Federal Election Commission

    The Committee has provided $1,700,000 for additional costs 
of the Federal Election Commission associated with 
investigations and audits of the 1996 election cycle, compared 
to $1,709,000 requested by the Administration. The Committee 
denies FEC's request to hire an additional 7.8 full time 
employee equivalents and instead earmarks these funds for FEC's 
current automated data processing efforts.
    The Committee notes that, of the $1,700,000 request, FEC 
intends to spend $686,375 for automated data processing needs. 
The Committee is pleased to learn that this money will not only 
be used to assist FEC's investigations of potential election 
law violations but also will provide a critical ``test bed'' 
for the development and refinement of effective casemanagement 
systems prior to planned system-wide deployment. The Committee supports 
this purpose.
    In addition to approving the $686,375 for automated data 
processing needs in the current fiscal year, the Committee has 
included $312,500 for second year funding of the development of 
``Groupware'' and $470,000 for the first phase of FEC's 
development of the ADP ``Imaging Strategy'' and has made these 
funds available until September 30, 1998. The Committee 
believes that these two components of FEC's long term ADP 
strategy are critical to FEC meeting its workload demands in an 
effective and efficient manner. The balance of the funds 
appropriated, $231,125, are available to supplement staff, for 
the sole purpose of providing support to the various case 
management and support systems funded through this supplemental 
appropriation.

                    general services administration

                 toledo, ohio, federal office building

    The committee understands that the General Services 
Administration is considering the relocation of Federal space 
in Toledo, Ohio. The committee wishes to acknowledge and 
encourage the cooperative effort being made by the City of 
Toledo, the Toledo-Lucas County Port Authority, in consultation 
with the GSA and consistent with the current GAO review, to 
locate suitable space on a consolidated site for all Federal 
entities in the Toledo central business district. Additionally, 
the committee recommends that if alternative commercial space 
is secured, that the building be designated a federal service 
center (or some other similar designation) to assure that 
Toledo continues to have a visible Federal presence.
    The committee further recommends that as the GSA considers 
the future accommodation of all federal entities in Toledo, it 
give every consideration to consolidating all entities, both 
administrative and judicial, in a single, federally owned 
location.

               Counter-Terrorism and Drug Law Enforcement

                       Department of the Treasury

                     United States Customs Service

    The Committee has been made aware that, owing to the 
requirement to obtain voluntary participation from the airline 
industry in submitting manifest and commodity data, the Customs 
Service has had to extend its schedule for planning and 
implementing the Automated Targeting System. The Committee has 
included a provision to make these funds available for two 
years.

                      General Provision, Chapter 6

    The Committee has recently been made aware of concerns that 
fiscal year 1996 report language does not supersede fiscal year 
1988 bill language addressing the issue of American ownership 
of corporations or entities that supply distinctive currency 
paper. The Committee has included a provision to clarify the 
Committee's intent regarding the procurement of distinctive 
currency paper and, specifically, that the corporation or 
entity which is awarded the contract for currency paper must be 
50 percent or more American- owned.
    The current supplier of currency paper has had a virtual 
117 year sole source contract with the Federal Government. The 
Committee stresses that it is not unsatisfied with the 
performance of the current provider of distinctive currency 
paper; rather, the Committee simply supports the 
Administration's desires to increase competition for the supply 
of paper so that other American-owned companies can have the 
opportunity to be considered in the bidding process.
    The Committee also notes that the provision does not change 
the requirement that distinctive currency paper purchased by 
BEP to print United States currency must be produced by an 
American-owned company and must be manufactured in the United 
States. The Committee also takes this opportunity to restate 
its insistence that production locations for currency paper 
remain under the jurisdiction of U.S. law enforcement 
officials.

                               CHAPTER 7

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration

                       Compensation and Pensions

    An appropriation of $18,671,259,000 was provided for the 
compensation and pensions account in fiscal year 1997. A fiscal 
year 1997 supplemental appropriation of $753,000,000 is 
requested for the compensation and pensions account. Of this 
amount, $340,400,000 is due to the 2.9 percent cost-of-living 
adjustment effective December 1, 1996 as authorized in the 
Veterans' Compensation Cost-of-Living Adjustment Act. The 
remaining $412,600,000 is required because of increases in the 
number of beneficiaries as well as the average cost per claim. 
Pension costs are also more than originally estimated due to an 
increase in the caseload. The Committee has included the 
supplemental budget request to provide the balance of funds 
required in fiscal year 1997 for the compensation and pensions 
appropriation.

                        Administrative Provision

    The fiscal year 1997 VA, HUD, and Independent Agencies 
Appropriations Act provided $12,300,000 for the parking 
structure component of the ambulatory care addition project at 
the Cleveland VA Medical Center. Language is included in the 
bill to permit construction on this project to proceed.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                            Housing Programs

                 Preserving Existing Housing Investment

    The Committee has included $3,500,000 and language to 
correct a technical error which resulted in excluding 
inadvertently the Valley Vista property in Syracuse, New York, 
from inclusion in the statutory standard for preservation 
carveout properties. During deliberations on the fiscal year 
1996 appropriations legislation, this property was listed in 
HUD's listings of carveout properties but there was 
insufficient funding for the project. However, during 
deliberations on the fiscal year 1997 appropriations 
legislation, the Committee accepted HUD's view that Valley 
Vista would be funded as a carveout property. After enactment, 
HUD reported that, in fact, the statutory language included in 
the 1997 appropriations measure excluded Valley Vista. This 
language reinstates the property for funding.

             Drug Elimination Grants for Low-Income Housing

    The Committee is recommending a transfer of $30,200,000 of 
unobligated balances from the Homeownership and Opportunity for 
People Everywhere (HOPE) Grants program to the Drug Elimination 
Grants program to provide necessary funds to augment HUD's 
crime prevention efforts in federally assisted low-income 
housing. The HOPE program originally provided for the sale to 
low-income families of acquired and rehabilitated HUD-owned 
properties as well as properties with HUD-held mortgages. The 
number of the properties eligible to participate in this 
program have been reduced and, therefore, these funds are no 
longer needed to fund the HOPE program.

                          INDEPENDENT AGENCIES

                  Federal Emergency Management Agency

                            Disaster Relief

    The Committee is recommending an emergency supplemental 
appropriation of $3,567,677,000 for disaster relief. This 
recommended funding is necessary to meet all current emergency 
disaster needs, including those resulting from recent floods 
and tornadoes throughout the nation, and is expected to be 
sufficient to meet anticipated disaster needs for the remainder 
of fiscal year 1997 and a majority of 1998. Bill language is 
included which makes $2,387,677,000 of the appropriated amount 
available on the last day of the fiscal year. The Committee's 
recommendation makes it possible for the Federal Emergency 
Management Agency to enter fiscal year 1998 with approximately 
90 percent of its projected disaster relief needs already in 
hand, thus assuring smooth and timely response to emergency 
requirements during the height of the ``hurricane'' season.

                         salaries and expenses

    The workload requirements resulting from an extraordinarily 
active ``disaster season'' have exceeded available financial 
and personnel resources. The Committee recommends an additional 
$5,000,000 for fiscal year 1997 salaries and expenses to meet 
this need.

              Emergency Management Planning and Assistance

    The recent floods in Northern California have highlighted 
the lack of critical information relating to the levees and 
topography of the Sacramento and San Joaquin Valleys. To help 
remedy this situation, the Committee expects FEMA to partner 
with the California Department of Conservation and the Defense 
Advanced Research Projects Agency (DARPA) to fund the IFSAR-E 
digital mapping service in coordination with the State's GeoSar 
program for creation of a geographical information system for 
the collection, maintenance and analysis of data relevant to 
flood threats in the Sacramento and San Joaquin Valleys. The 
Committee expects FEMA to fund this collaborative effort at an 
amount not to exceed $2,500,000 through existing balances in 
the Emergency Management Planning and Assistance account.

                     national flood insurance fund

    The Committee has recommended bill language which amends 
the National Flood Insurance Act of 1968 by reducing the 
waiting period before which a flood insurance policy takes 
effect. Since 1993, the statute has stipulated that a flood 
insurance policy will not go into effect for 30 days following 
purchase of such a policy. Upon learning of the potential flood 
disaster waiting to happen in North Dakota, South Dakota and 
Minnesota, thousands of individuals purchased flood insurance. 
Unfortunately, snows melted and the flooding occurred sooner 
and much heavier than expected, thus leaving many such 
policyholders just a few days short of having their insurance 
take effect.
    Prior to 1993, this waiting period fluctuated between 5 and 
15 days. The language recommended by the Committee will remedy 
the unintended effect of those individuals caught in this 30-
day waiting period by once again requiring just a 15 day 
waiting period for those policies purchased between January 1 
and June 30, 1997.

             National Aeronautics and Space Administration

    The Committee is concerned that the conveyance of Parcels 
III, IV, V, and VI of the NASA Industrial Plant, Downey, 
California, to the City of Downey, as called for in P.L. 104-
204, enacted September 26, 1996, has not yet been completed. 
This conveyance is to be accomplished by NASA, with the 
concurrence of the GSA Administrator. The Committee urges the 
GSA, as the agent of the Government responsible for the 
conveyance, to accomplish it expeditiously, consistent with the 
direction included in the Conference Agreement accompanying 
H.R. 3666, the FY 1997 VA-HUD-Independent Agencies 
appropriations bill. Consistent with the instructions of the 
Conference Report, the Committee urges the GSA to continue 
working with the City of Downey and to expedite an agreement 
with respect to its need to enter into ground leases for the 
purpose of obtaining construction funding, and include language 
in the deed of conveyance which will specifically address this 
concern.

                               CHAPTER 8

                        OFFSETS AND RESCISSIONS

                       DEPARTMENT OF AGRICULTURE

                        Office of the Secretary

                         fund for rural america

    The Committee reduces the amount available to the Secretary 
for the Fund for Rural America to $80 million and uses the 
savings provided as a partial offset for emergency disaster and 
WIC supplemental funding. The Committee also provides the 
Secretary with the authority to use the Fund for Rural America, 
at his discretion, for the WIC program.

                 Natural Resources Conservation Service

                        wetlands reserve program

    There is a $31 million unobligated balance remaining from 
the fiscal year 1996 wetlands reserve program. The Committee 
proposes to use $19 million of these funds as a partial offset 
for emergency disaster and WIC supplemental funding.

                        Food and Consumer Agency

                 the emergency food assistance program

    The Personal Responsibility and Work Opportunity 
Reconciliation Act provided for $100 million in food stamp 
funding to be used for TEFAP commodity purchases in fiscal year 
1997. This funding is in addition to the funding provided in 
the fiscal year 1997 appropriations bill. The Committee 
proposes to reduce the amount available through the food stamp 
program to $80 million and use the savings as a partial offset 
for emergency disaster and WIC supplemental funding.

                      Foreign Agricultural Service

                             export credit

    The fiscal year 1997 appropriations bill included $5.5 
billion for the export credit guarantee program. The Committee 
reduces the total amount available to $3.5 billion and uses the 
savings as a partial offset for emergency disaster and WIC 
supplemental funding.

                       export enhancement program

    The fiscal year 1997 appropriations bill included $100 
million for the export enhancement program (EEP). The Committee 
reduces the amount available for EEP to $10 million and uses 
the savings provided as a partial offset for emergency disaster 
and WIC supplemental funding.

                public law 480 program and grant account

    The Committee does not concur with the Administration 
request to rescind $50,000,000 from Title I of Public Law 480 
international food aid. Congress has given the Administration 
authority to transfer funds among the three food aid programs, 
including Title I. Therefore, a shortage in Title II 
humanitarian funds could be provided through Title I. With food 
aid program resources at historic lows and the potential for 
new requirements for Zaire and North Korea, the Committee 
believes that it is not prudent at this time to make a large 
reduction in a major food aid program.

                         DEPARTMENT OF JUSTICE

                         General Administration

                          working capital fund

                              (rescission)

    The Committee recommends a rescission of $6,400,000 of 
unobligated balances available in the Working Capital Fund 
because they are not required to support activities of the 
Department of Justice. The Administration proposed this 
rescission in its transmittal of rescissions and deferrals on 
February 10, 1997.

                            Legal Activities

                         assets forfeiture fund

                              (rescission)

    The Committee recommends a rescission of $3,000,000 of 
unobligated balances available in the Assets Forfeiture Fund 
Super Surplus. This funding is available as a result of Section 
108 of Title I of Public Law 104-208, which allows balances 
remaining in the Assets Forfeiture Fund after September 30, 
1996 to be available to the Attorney General for authorized 
purposes of the Department of Justice.

                 Immigration and Naturalization Service

                              construction

                              (rescission)

    The Committee recommends a rescission of $1,000,000 from 
amounts provided for fiscal year 1995 for construction projects 
of the Immigration and Naturalization Service (INS). The 
Committee has previously objected to the use of funds for 
construction of a permanent traffic checkpoint on Interstate 19 
(I-19) in Arizona. As a result, this funding remains 
unobligated and unexpended. The Committee does not intend to 
support the establishment of a permanent checkpoint on I-19 and 
therefore recommends a rescission of $1,000,000 in this 
account.
    The Committee has also been informed that the INS recently 
moved the temporary checkpoint on I-19 to a point further north 
on this interstate. The Committee recognizes the value a 
temporary checkpoint can provide and expects that the Border 
Patrol will continue to operate a temporary checkpoint in 
Arizona. However, the Committee is concerned that the operation 
of this temporary checkpoint is currently limited only to I-19 
and directs the Border Patrol to change its existing strategy 
for this checkpoint operation to a ``roving'' checkpoint 
operation which does not stay in one location for an extended 
period of time and is moved on a periodic basis to other major 
roads extending from the border into Arizona, and not solely I-
19.

                         DEPARTMENT OF COMMERCE

             National Institute of Standards and Technology

                     industrial technology services

                              (rescission)

    The Committee recommends a rescission of $7,000,000 from 
the unobligated balances available under the Advanced 
Technology Program. This amount has been identified as in 
excess of requirements for existing award commitments due to 
award changes and cancellations during the first quarter of 
fiscal year 1997 and is therefore available for rescission.

            National Oceanic and Atmospheric Administration

            fleet modernization, shipbuilding and conversion

                              (rescission)

    The Committee recommends a rescission of $2,000,000 from 
the unobligated balances available in this account. It is the 
Committee's understanding that unobligated balances totaling 
$7,586,000 carried forward into fiscal year 1997, resulting in 
a total availability of $15,586,000, which is $3,586,000 above 
the requested level for fiscal year 1997. Thus, at least $2,000,000 is 
available for rescission.

                            RELATED AGENCIES

                   Federal Communications Commission

                         Salaries and Expenses

                              (Rescission)

    The Committee recommends a rescission of $1,000,000 from 
the unobligated balances available under the Salaries and 
Expenses account of the Federal Communications Commission 
(FCC). Due to lower-than-anticipated staffing levels and 
higher-than-anticipated fee recoveries, the FCC carried forward 
$8,239,000 into fiscal year 1997. As of February 1, 1997, FCC 
staffing remained 195 workyears below the level provided for in 
fiscal years 1996 and 1997. Therefore, it is unlikely that the 
FCC will be able to spend the funds recommended for rescission 
by the end of fiscal year 1997.

                      Ounce of Prevention Council

                              (Rescission)

    The Committee recommends a rescission of $1,000,000 of 
funds appropriated under Public Law 104-208 for the Ounce of 
Prevention Council. The Committee is aware that the Council is 
behind in its announcement and award of grants under this 
program. The solicitation for grants to award the $1,000,000 
provided in fiscal year 1996 just appeared in the Federal 
Register on January 17, 1997. It is further noted that 
$1,500,000 was carried forward in both fiscal years 1995 and 
1996 and therefore it is unlikely that this program will spend 
all of the funds appropriated in fiscal year 1997.

                          DEPARTMENT OF ENERGY

                            Energy Programs

           energy supply, research and development activities

                              (Rescission)

    The recommendation rescinds $22,532,000 from the Energy 
Supply, Research and Development Activities appropriation 
account. This rescission reflects the level of unobligated 
balances available for programs on October 1, 1996. The 
reduction represents funds made available by the Department to 
supplement FY 1997 spending which were not anticipated to be 
available by the Committee. Accordingly, the Department is 
directed to reduce programs in accordance with each program's 
share of the $22,532,000 as detailed on the final Status of 
Appropriations Report for FY 1996.

                          DEPARTMENT OF ENERGY

                         Clean Coal Technology

                              (Rescission)

    The Committee recommends a rescission of $17,000,000 for 
clean coal technology. This rescission includes $10,000,000, as 
proposed by the Administration to offset the appropriation for 
implementing the transportation plan for Yosemite National Park 
and $7,000,000 to offset the fiscal year 1997 impact of the 
amendment to the recreation fee demonstration pilot program 
addressed in Section 401 of chapter 4 in this title. These 
funds are available for rescission due to projects that have 
been terminated prior to completion. The rescission is not 
specific to any particular round of clean coal projects.

                      Strategic Petroleum Reserve

                              (Rescission)

    The Committee recommends a rescission of $11,000,000 for 
the strategic petroleum reserve as proposed by the 
Administration. These funds are available for rescission 
because of cost savings in the SPR life extension program.

                      DEPARTMENT OF TRANSPORTATION

                    Federal Aviation Administration

                       Grants-in-Aid to Airports

                 (Rescission of Contract Authorization)

    The bill rescinds $750,000,000 in contract authority that 
is not available due to annual limits on obligations.

             National Highway Traffic Safety Administration

                     Highway Traffic Safety Grants

                          (Highway Trust Fund)

                 (Rescission of Contract Authorization)

    The bill rescinds $13,000,000 in contract authority that is 
not available for obligation due to annual limits on 
obligations.

                     Federal Transit Administration

                      Trust Fund Share of Expenses

                          (Highway Trust Fund)

                 (Rescission of Contract Authorization)

    The bill rescinds $271,000,000 in contract authority that 
is not available for obligation due to annual limits on 
obligations.

                          Discretionary Grants

                          (Highway Trust Fund)

                 (Rescission of Contract Authorization)

    The bill rescinds $588,000,000 in contract authority that 
is not available for obligation due to annual limits on 
obligations.

                    GENERAL SERVICES ADMINISTRATION

                Agricultural Research Service Laboratory

    In fiscal year 1997, Congress provided $8,000,000 for the 
renovation of the Agricultural Research Service Laboratory in 
Ames, Iowa. This federally-owned laboratory houses the Animal 
and Plant Health Inspection Service (APHIS). The Congress 
directed that the funds be used only for biomedical safety and 
operational improvements for APHIS operations.
    The Committee now understands that APHIS, as well as local 
officials, have indicated a desire to transfer this $8,000,000 
to the construction of a larger facility at an estimated cost 
of $73,000,000. The Committee believes that transferring the 
$8,000,000 from renovation to new construction is not in 
keeping with the fiscal year 1997 Congressional direction. 
Since the funds will not be used for the purposes for which 
appropriated, the Committee rescinds $1,400,000 from the 
Agriculture Research Service Laboratory funding. Should APHIS 
reassess its position and determine that it wishes to follow 
the 1997 Congressional direction, the Committee will review the 
renovation requirements in fiscal year 1998.

                   Expenses, Presidential Transition

    The Committee has rescinded $5,600,000 in funds available 
for the costs associated with the Presidential Transition, as 
requested by the Administration.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                            Housing Programs

               Annual Contributions for Assisted Housing

                              (Rescission)

    The Committee recommends a rescission of $3,823,440,000 
from funds recaptured during fiscal year 1997 and prior years.
    Of this amount, $250,000,000 results from the elimination 
of excess funds available on some long-term section 8 
contracts, the cancellation of reservations for public housing 
development projects unable to proceed to construction and the 
recapture of funds from inactive programs. This amount was 
included in the President's rescission package.
    The additional $3,573,440,000 is excess section 8 reserve 
funds. Using improved accounting and tracking systems, HUD has 
been reconciling PHAs' section 8 contract accounts to determine 
the level of unspent budget authority. This amount represents 
additional reserves identified by HUD as a result of a budget 
analysis requested by the Committee. It is in addition to 
approximately $1,600,000,000 in unspent budget authority--or 
excess contract reserves--which HUD identified at the end of 
1996 and used to reduce the level of funding required to fund 
section 8 contracts in fiscal year 1998.

                                TITLE II

         EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR PEACEKEEPING

                               CHAPTER 1

                    DEPARTMENT OF DEFENSE--MILITARY

                         Supplemental Requests

    The President has requested supplemental fiscal year 1997 
appropriations for the Department of Defense totaling 
$2,098,214,000. These include:
    (a) $2,006,214,000 in emergency supplemental appropriations 
to finance unbudgeted personnel, operations, and equipment 
drawdown costs associated with contingency operations, most 
notably those in Bosnia and Southwest Asia;
    (b) $72,000,000 in emergency supplemental appropriations 
for the Reserve Mobilization Income Insurance Fund; and
    (c) $20,000,000 in supplemental appropriations to carry out 
the provisions of the National Defense Authorization Act for 
Fiscal Year 1997 regarding payments to eligible South 
Vietnamese individuals or their survivors who were captured or 
incarcerated in the Vietnam conflict (referred to as OPLAN 34A/
35 P.O.W. payments).
    The supplemental request also includes two proposed 
rescissions, totaling $72,000,000, to offset the additional 
funding for the Reserve Mobilization Income Insurance Fund 
mentioned above. Finally, the President proposed a general 
provision canceling $4,800,000,000 of unidentified 
appropriations from the fiscal year 1997 Defense Appropriations 
and Military Construction Acts, and granting the Secretary of 
Defense authority to determine which programs, projects and 
activities shall be canceled within this amount. This general 
provision was proposed as an offset for the requested emergency 
supplemental appropriations for contingency operations and also 
to reduce fiscal year 1998 defense outlays.

                         Committee Observations

    For the third consecutive year, the Committee finds itself 
confronted with a sizable request for supplemental 
appropriations to reimburse the unbudgeted costs of military 
contingency operations. The requirement for supplemental funds 
this year stems from the President's decision to extend U.S. 
participation in the NATO-led peacekeeping effort in Bosnia by 
eighteen months (from the original target withdrawal date of 
December 1996 to June 1998), as well as increased requirements 
associated with operations in Southwest Asia.
    The Committee lauds the professionalism and courage of the 
men and women of our armed forces who are skillfully carrying 
out these challenging and complicated operations. Both the 
Bosnia and Southwest Asia deployments have been carried out 
while the overall size and resources of the U.S. military 
continue to decline. These operations have contributed in no 
small degree to the continued high pace of U.S. military 
operational and personnel tempo which are at the highest 
peacetime levels in recent history. These operations, and the 
performance of American forces, are a stark reminder that the 
post-Cold War era remains a volatile and dangerous period in 
which a well trained and equipped U.S. military is essential.
    In order to finance these deployments, the Department of 
Defense has been forced to use fiscal year 1997 funds 
originally intended for readiness training, facilities and 
equipment maintenance and day-to-day base operations. If these 
funds are not replenished, as proposed in the supplemental 
request, there would inevitably be an enormously negative 
impact on U.S. forces due to the absence of funds for training 
and other readiness related activities in the remaining months 
of this fiscal year. The Committee believes it imperative that 
this be avoided, and therefore finds it necessary to approve 
the majority of the supplemental request.
    The Committee reaches this conclusion despite considerable 
concern and, indeed, dismay over a number of issues associated 
with these ongoing operations. First and foremost among these 
is the President's decision to extend the Bosnia mission by 
eighteen months without any effort to consult with and seek 
approval from Congress. At its inception, U.S. military 
participation on the ground in Bosnia as part of an 
international peacekeeping force was justified to Congress and 
the American public as a one-year operation. Beginning in 1995 
and throughout most of last year, in the face of questions 
raised by Congress and others regarding the potential for an 
extended deployment of American forces and the lack of an 
``exit strategy'', the President and senior Administration 
officials insisted the Bosniadeployment would be limited in 
duration and cost and cited the commitment to withdraw American forces 
by December 1996 as evidence of these limits.
    With the President's change in policy, however, the Bosnia 
operation now will last two and one-half years and the cost of 
the operation will more than double, with Department of Defense 
costs alone increasing from $3.1 to $6.5 billion. The Committee 
believes strongly that in light of its previous commitments, 
and the considerable costs associated with a mission extension, 
the Administration had an obligation to seek the approval of 
Congress in advance of extending the mission in Bosnia. The 
Committee also remains concerned that, other than establishing 
a new ``date certain'' for withdrawal, little has been 
communicated to describe the Administration's exit strategy for 
Bosnia, nor is much known about plans to maintain stability 
once NATO forces are withdrawn.
    The Committee must also call attention to the considerable 
impact this operation is having throughout the U.S. defense 
program. The sheer cost of the Bosnia deployment and the 
repeated need to seek supplemental appropriations or 
reprogrammings paid for from other defense programs have 
disrupted defense planning and detracted from other critical 
needs facing the military services. While troops deployed to 
Bosnia have performed admirably, the significant number of 
recent peacekeeping and contingency operations are having a 
detrimental effect on overall military readiness and the status 
of the force. Units deployed in support of the Bosnia operation 
and other peacekeeping and humanitarian assistance operations 
have of necessity had to forego normal missions, training 
routines, and scheduled rotations. This means lost training 
opportunities and an increase in the frequency and duration of 
deployments away from home stations and families. Following 
several years of record peacetime operations and personnel 
tempo, such deployments invariably contribute to morale 
problems and a disruption in the ability of U.S. forces to 
remain prepared for their primary warfighting missions. For 
these reasons, the Committee remains deeply concerned that the 
deployment of U.S. forces in Bosnia not turn into an open ended 
commitment.
    With the President's extension of the U.S. deployment to 
Bosnia through June 1998, U.S. troops will have had a major 
presence in Bosnia for two and one-half years. The Committee 
observes the Secretary of Defense has clearly stated his intent 
that U.S. forces be withdrawn after this point. In testimony 
before the Committee this year, General Joulwan, the Commander-
in-Chief, United States European Command, stated ``If you can't 
get the act together in two and one-half years * * * then I'm 
not sure the act can be gotten together in ten years.'' 
Accordingly, the Committee expects the Administration to live 
up to its current plan and withdraw American forces not later 
than June of next year. The Committee believes that should 
events require any change involving a further extension of the 
U.S. deployment, the Administration should and must seek the 
approval of the Congress. The Committee expresses its intent to 
revisit this issue during its consideration of fiscal year 1998 
appropriations measures in the months ahead.
    In the interim, the Committee directs the President to 
provide reports on Bosnia to the Congress every three months 
following enactment of this bill. The reports should include, 
but not be limited to: current and projected U.S. and allied 
force deployments (both in-country and in support of the 
operation outside of Bosnia), and the costs associated with 
U.S. operations; status reports on efforts being made within 
NATO to achieve consensus on a June 1998 withdrawal date; an 
assessment of what, if any, follow-on international force will 
be required after U.S. withdrawal and the degree to which U.S. 
support is envisioned for such an effort (in both military and 
financial terms); and the progress being made toward total 
withdrawal. An assessment of the achievements being made in the 
implementation of the provisions of the Dayton accords should 
also be included in the reports.

                  Summary of Committee Recommendations

    In title II, chapter 1, the Committee recommends a total of 
$2,033,400,000 in new budget authority, a reduction of 
$64,814,000 from the supplemental request.
    The Committee recommendation includes $1,910,400,000 for 
contingency operations, a net reduction of $95,814,000 from the 
request reflecting fact-of-life changes in funding requirements 
which have occurred subsequent to transmittal of the 
supplemental proposal. Taking into account these changes, the 
Committee recommendation fully funds all contingency operation 
requirements identified by the Department of Defense. The 
Committee does not agree with the supplemental proposal to fund 
both military personnel and operation and maintenance 
requirements through the ``Overseas Contingency Operations 
Transfer Fund,'' but instead provides for military personnel 
costs through the Military Personnel appropriations accounts as 
was done in the fiscal year 1997 Defense Appropriations Act.
    The Committee recommendation also fully funds the requested 
amounts for the Reserve Mobilization Income Insurance Fund and 
OPLAN 34A/35 P.O.W. payments. Finally, in title II, chapter 1 
of the Committee bill there are three general provisions 
intended to redress current funding shortfalls: Section 2102 
provides $23,000,000 in transfers to cover the costs incurred 
at certain Marine Corps facilities due to recent natural 
disasters; Section 2103 provides $21,000,000 for direct patient 
care at military treatment facilities; and Section 2104 
provides $10,000,000 for additional force protection and 
counter-terrorism initiatives.
    The new budget authority made available in this title for 
the Department of Defense is fully offset by rescissions 
totaling $2,033,867,000 from funds made available in previously 
enacted Defense Appropriations and Military Construction Acts. 
These rescissions are in title II, chapter 2 of the Committee 
bill and are described in a subsequent section of this report.
    A more detailed description of the Committee's adjustments 
to the President's supplemental requests follows:

                         Contingency Operations

    The following describes the Committee's recommendations by 
operation, and also by the relevant appropriations title or 
account.
    Bosnia.--The total amount requested for operations 
supporting the Bosnia operation was $1,496,000,000. The 
Committee recommends $1,336,200,000, a reduction of 
$159,800,000. This reduction is made due to overestimates in 
the request for the amount of contractor logistics support 
(LOGCAP) provided to troops deployed in-country, overstated 
operating tempo requirements, and reduced military personnel 
requirements involving the Reserve components.
    Southwest Asia.--The request for operations in Southwest 
Asia (including enforcing the no-fly zones in northern and 
southern Iraq and the redeployment of U.S. forces following the 
Khobar Towers bombing) totals $498,200,000. The Committee 
recommends $562,200,000, an increase of $64,000,000. Although 
funds were provided for operations in Southwest Asia in the 
fiscal year 1997 Defense Appropriations Act, a significant 
portion of those funds were transferred to fund the Bosnian 
deployment after its extension beyond December 1996. Thus funds 
are now required to fund ongoing operations in the Persian Gulf 
region. Funds provided above the request include $28,000,000 
for higher than projected Enhanced Southern Watch costs and 
$36,000,000 for enhanced force protection.

                           Military Personnel

    The supplemental request included $360,100,000 for pay and 
allowances for active and reserve personnel in support of the 
Bosnia and Southwest Asia operations. The Committee recommends 
$344,100,000, a reduction of $16,000,000 from the request as 
noted above, because of reduced participation by the Reserve 
Components. These funds provide for payment of Imminent Danger 
Pay, Family Separation Allowance, Foreign Duty Pay, and Basic 
Allowance for Subsistence.

                       Operation and Maintenance

    The Committee recommends an appropriation of $1,566,300,000 
for operation and maintenance expenses, including costs of the 
Defense Health Program and for drawdown recovery, to be 
included in the ``Overseas Contingency Operations Transfer 
Fund''. The recommendation is a decrease of $79,800,000 below 
the amount requested and represents fact-of-life changes in 
requirements as described above.

               Reserve Mobilization Income Insurance Fund

    The supplemental request included $72,000,000 for the 
Reserve Mobilization Income Insurance Fund. The National 
Defense Authorization Act for Fiscal Year 1996 established the 
fund and designed this insurance program to help mitigate 
economic losses for Reservists when they are involuntarily 
called to active duty. The Committee was never informed by the 
Department or asked to participate in any discussions on the 
merits of this program, even though the law specifies a 
``special'' appropriation to cover any unfunded liability.
    The Committee is distressed to learn that from the 
beginning, numerous problems arose which risked the solvency of 
the fund. The General Accounting Office and the Office of the 
Inspector General are currently investigating to see if this 
program has been properly administered and implemented.
    The fund is not actuarially sound, and, as noted, the law 
requires a ``special'' appropriation to cover any unfunded 
liability. Therefore, the Committee recommends $72,000,000, the 
budget request, to make this insurance fund solvent. After 
receiving the reports of the General Accounting Office and 
DOD's Inspector General, Congress will address the future of 
the Reserve Mobilization Income Insurance Fund.

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

    The supplemental request included $20,000,000 and a new 
appropriations paragraph in the Operation and Maintenance title 
for payments to certain South Vietnamese commandos (or their 
survivors) who, while conducting operations for the United 
States, were captured and incarcerated by the Democratic 
Republic of Vietnam and have not received payment for their 
time spent in captivity. The Committee recommends the requested 
amount.

                     General Provisions, Chapter 1

    Section 2101 of the General Provisions has been included 
which limits the availability of funds provided in this title 
to the current fiscal year unless otherwise specified.
    Section 2102 has been included which provides a transfer of 
$23,000,000 of available Marine Corps funding (from revised 
inflation estimates and foreign currency rates, as well as 
unobligated balances expected to expire at the end of this 
fiscal year) to Operation and Maintenance, Marine Corps, to pay 
for repairs to real property and facilities damaged by 
Hurricanes Fran and Bertha last year, and from flooding in 
January 1997.
    Section 2103 has been included which provides an additional 
$21,000,000 for the Defense Health Program, only for direct 
care of military service members and dependents at military 
treatment facilities.
    Section 2104 has been included which provides an additional 
$10,000,000 for Operation and Maintenance, Defense-Wide, only 
for force protection and counter-terrorism initiatives. These 
funds are required to meet requirements at a number of 
worldwide locations identified in vulnerability assessments 
conducted by the Joint Staff. The Committee directs these funds 
be used for physical security equipment such as surveillance 
and intrusion detection systems, personnel and vehicle armor, 
and x-ray, metal, explosive, and chem-bio detectors. Funds may 
also be used for physical security site improvements including 
perimeter and entrance barriers, gates, fencing and lighting, 
and other items identified in vulnerability assessments which 
in the view of the Chairman of the Joint Chiefs of Staff 
require immediate attention.
    Section 2105 has been included which places limitations on 
certain Department of the Navy personnel and budget practices. 
The Committee is disturbed to find that the Navy's Financial 
Management/Comptroller organization has ignored reprogramming 
procedures defined in the Department of Defense Financial 
Management Regulation, has become a major impediment to timely 
obligation of funds for many high priority programs which the 
Navy had requested be included in Appropriations acts, and has 
ignored clear Congressional direction and intent concerning a 
number of programs of great importance to the nation. The 
Committee believes a major reason for this is that the Navy 
Financial Management/Comptroller organization has become too 
large and bureaucratic, making it unresponsive to the Congress, 
the Office of the Secretary of Defense, and the Navy itself. 
For these reasons, the Committee designates all funds 
appropriated for staffing of the Navy Financial Management/
Comptroller organization to be of special interest under 
procedures set forth in the DoD Financial Management 
Regulation. Section 2105 of this bill is intended to facilitate 
enhanced Congressional oversight of the large annual 
expenditure of funds by this organization. The provision also 
suspends the authority to reprogram Navy funds on other than a 
prior approval basis due to the Navy's apparent 
misunderstanding of Defense regulations and Congressional 
policy and intent.
    The following table provides details of the supplemental 
appropriations in title II, chapter 1 of the bill:

                                        Fiscal Year 1997 DOD Supplemental                                       
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                                     Committee                  
                                                                      Request     recommendation      Change    
----------------------------------------------------------------------------------------------------------------
                     Contingency Operations                                                                     
                                                                                                                
Bosnia:                                                                                                         
    Military Personnel:                                                                                         
        Army....................................................          $318.0          $302.0          -$16.0
        Navy....................................................             4.9             4.9  ..............
        Marine Corps............................................             0.3             0.3  ..............
        Air Force...............................................            22.5            22.5  ..............
                                                                 -----------------------------------------------
          Total Military Personnel..............................           345.7           329.7           -16.0
                                                                 ===============================================
    Operation and maintenance:                                                                                  
        Army....................................................           629.3           504.5          -124.8
        Navy....................................................            92.7            82.7           -10.0
        Marine Corps............................................             1.5             1.5  ..............
        Air Force...............................................           247.8           247.8  ..............
        Defense-Wide............................................           157.2           148.2            -9.0
                                                                 -----------------------------------------------
          Total Operation and maintenance.......................         1,128.5           984.7          -143.8
                                                                 ===============================================
    Defense Health Program......................................            21.8            21.8  ..............
                                                                 ===============================================
      Total Bosnia--All Appropriations..........................         1,496.0         1,336.2          -159.8
                                                                 ===============================================
Southwest Asia:                                                                                                 
    Military Personnel:                                                                                         
        Army....................................................             4.8             4.8  ..............
        Navy....................................................             3.0             3.0  ..............
        Air Force...............................................             6.6             6.6  ..............
                                                                 -----------------------------------------------
          Total Military Personnel..............................            14.4            14.4  ..............
                                                                 ===============================================
    Operation and maintenance:                                                                                  
        Navy....................................................            83.1           103.1           +20.0
        Air Force...............................................           389.6           434.6           +45.0
        Defense-Wide............................................             9.2             8.2            -1.0
        Navy Reserve............................................             0.5             0.5  ..............
                                                                 -----------------------------------------------
          Total Operation and maintenance.......................           482.4           546.4           +64.0
                                                                 ===============================================
    Defense Health Program......................................             1.4             1.4  ..............
                                                                 ===============================================
      Total Southwest Asia--All Appropriations..................           498.2           562.2           +64.0
                                                                 ===============================================
Drawdown Recovery:                                                                                              
    Operation and maintenance, Air Force........................            12.0            12.0  ..............
                                                                 ===============================================
          Total--Contingency Operations.........................         2,006.2         1,910.4           -95.8
OPLAN 34A/35 P.O.W. Payments....................................            20.0            20.0  ..............
Reserve Mobilization Income Insurance Fund......................            72.0            72.0  ..............
Defense Health Program..........................................  ..............            21.0           +21.0
Operation and Maintenance, Defense-Wide (Force Protection)......  ..............            10.0           +10.0
                                                                 -----------------------------------------------
      Grand total...............................................         2,098.2         2,033.4           -64.8
----------------------------------------------------------------------------------------------------------------

                        south korean air defense

    The Committee voices its deep concern over the possibility 
that South Korea may procure Russian S300 systems for air 
defense as opposed to the U.S. Patriot system. The Patriot 
possesses superior radar and engagement capabilities and 
requires less manpower to operate and maintain. Most 
importantly, acquisition of the Patriot ensures 
interoperability with other assets assigned to U.S. Forces, 
Korea enhancing the overall safety and combat effectiveness of 
U.S. and allied forces. Considering the almost half century 
relationship between our two countries, and the closeness with 
which our troops train together, it would be most unfortunate 
for our South Korean allies to procure a non-U.S. air defense 
system.

                     airborne mine countermeasures

    The National Defense Authorization Act for fiscal year 1997 
directed the Navy to conduct a competitive evaluation of 
candidate technologies (Magic Lantern and ATD-111) for an 
active Navy airborne laser mine detection system. The Act 
further directed that the competitive evaluation be conducted 
no later than July 1, 1997 and that a procurement plan be 
established for the winning system. In August, 1996 the Under 
Secretary of the Navy informed the Committee that the Navy's 
intended approach is consistent with the Authorization 
Conference Report. Subsequently, anadditional $12,000,000 was 
provided in the fiscal year 1997 Department of Defense Appropriations 
Act to conduct the competitive flyoff.
    The Committee believes it is critically important to 
provide the active Naval forces with an airborne laser mine 
detection and classification system as soon as possible to 
effectively counter floating and shallow-moored mines, a 
capability which the active Navy does not now possess. The 
Committee also believes that the competitive flyoff must be 
conducted on time, as the Under Secretary committed to last 
year, in order to allow the congressional defense committees to 
consider the result during deliberations on the fiscal year 
1998 Department of Defense budget. The Committee directs that 
the competitive flyoff be conducted and concluded by July 1, 
1997 and that the Secretary of the Navy report the results and 
his recommended procurement plan to the congressional defense 
committees by July 21, 1997.

                               CHAPTER 2

                              Rescissions

                       Committee Recommendations

    The supplemental request for the Department of Defense 
included one proposed general provision and two proposed 
rescissions.
    The general provision requested by the President would 
cancel $4,800,000,000 of unidentified appropriations from the 
fiscal year 1997 Defense Appropriations and Military 
Construction Acts, and grant the Secretary of Defense authority 
to determine which programs shall be canceled within this 
amount. The Committee does not recommend adoption of this 
provision, but instead proposes rescissions totaling 
$2,033,867,000 contained in five general provisions in title 
II, chapter 2 of the Committee bill. This amount completely 
offsets the funding provided for the Department of Defense in 
chapter 1 of this title.
    These rescissions include savings resulting from updated 
fiscal year 1997 inflation estimates and foreign currency 
exchange rates, unexpired balances of budget authority which 
are expected to lapse at the end of the current fiscal year, 
and program-specific rescissions targeted at nearly 60 defense 
programs or activities reflecting changes in program status, 
contract or cost savings, and instances where available funding 
is excessive.
    The supplemental request also included two proposed 
rescissions, totaling $72,000,000, as an offset for the Reserve 
Mobilization Income Insurance Fund mentioned above. The 
Committee does not recommend a rescission of $62,000,000 of 
fiscal year 1997 funds made available for ``National Guard and 
Reserve Equipment,'' as proposed by the President. However, the 
Committee does agree with the rescission of $10,000,000 from 
fiscal year 1997 ``Operation and Maintenance, Defense-Wide'' 
funds as proposed by the President and has included this 
rescission in Section 2204.

                     General Provisions, Chapter 2

    Section 2201 has been included which rescinds $307,000,000 
of fiscal year 1997 defense appropriations which are available 
as a result of updated inflation estimates. The provision 
requires that reductions within appropriation accounts must be 
applied in equal proportion to each budget activity, activity 
group, and subactivity group. The Committee directs that such 
reductions be made to total funding available in all specified 
fiscal year 1997 budget activities, activity groups, and 
subactivity groups as of the date of enactment of this Act. 
This requirement may not be interpreted to apply only to 
unobligated balances in those activities, activity groups, and 
subactivity groups. In no case may a budget activity, activity 
group, or subactivity group for which additional funds were 
appropriated in fiscal year 1997 above what was originally 
requested by the President be decreased by a higher proportion 
than items which were in the original budget request. The 
Department of Defense shall propose a formal reprogramming 
request to the congressional defense committees should a 
situation arise where such funding reductions would jeopardize 
national security or cause serious harm to financial interests 
of the government.
    Section 2202 has been included which rescinds $308,000,000 
of fiscal year 1997 defense appropriations which are available 
as a result of favorable changes in foreign currency exchange 
rates.
    Section 2203 has been included which rescinds $246,367,000 
of unobligated funds made available in previous Department of 
DefenseAppropriations Acts which, according to the Comptroller 
of the Department of Defense, are expected to expire at the end of the 
current fiscal year.
    Section 2204 has been included which rescinds $992,500,000 
of funds made available in previous Defense Appropriations 
Acts, as specified in the table below:

Rescissions Recommended in the Bill

[Department of Defense--Military]

        Department and activity                                  Amounts

Fiscal year 1994:
    Shipbuilding and Conversion, Navy:
        Service Craft...................................    -$28,700,000
                    --------------------------------------------------------
                    ____________________________________________________
            Total fiscal year 1994......................     -28,700,000
                    ========================================================
                    ____________________________________________________
Fiscal year 1995:
    Aircraft Procurement, Air Force:
        JSTARS, Advanced Procurement....................     -14,400,000
    Missile Procurement, Air Force:
        Missile Replacement Equipment...................      -4,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Total fiscal year 1995......................     -18,400,000
                    ========================================================
                    ____________________________________________________
Fiscal year 1996:
    Aircraft Procurement, Army:
        Blackhawk, Advanced Procurement.................      -5,000,000
        Spares..........................................      -8,000,000
        Avionics Support Equipment......................      -5,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -18,000,000
                    ========================================================
                    ____________________________________________________
    Procurement of Weapons and Tracked Combat Vehicles, 
      Army:
        Carrier Mods....................................      -3,000,000
        Bradley Fighting Vehicle System.................     -10,000,000
        Weapons/Combat Vehicle..........................     -13,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -26,000,000
                    ========================================================
                    ____________________________________________________
    Procurement of Ammunition, Army:
        Provision of Industrial Facilities..............      -8,000,000
        Layaway Industrial Facilities...................      -6,000,000
        Ammunition Base.................................     -20,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -34,000,000
                    ========================================================
                    ____________________________________________________
    Other Procurement, Navy:
        Shipboard Tactical Communications...............      -3,000,000
    Aircraft Procurement, Air Force:
        JSTARS..........................................     -25,000,000
        F-16............................................     -12,000,000
        F-16 Post Production Support....................     -15,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -52,000,000
                    ========================================================
                    ____________________________________________________
    Other Procurement, Air Force:
        Strategic C2....................................     -10,000,000
    Procurement of Ammunition, Air Force:
        CBU-87..........................................     -21,100,000
    Procurement, Defense-Wide:
        DISA/Defense Message System.....................     -12,000,000
        Major Equipment.................................     -10,700,000
        SDIO Major Equipment............................     -12,100,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -34,800,000
                    ========================================================
                    ____________________________________________________
    Research, Development, Test and Evaluation, Navy:
        MK-48 ADCAP (CBASS-New Start)...................      -4,000,000
        Standard Missile Improvements (LASM-New Start)..        -500,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................      -4,500,000
                    ========================================================
                    ____________________________________________________
    Research, Development, Test and Evaluation, Air 
      Force:
        Night Precision Attack..........................      -2,000,000
    Research, Development, Test and Evaluation, Defense-
      Wide:
        University Research.............................      -9,200,000
        Defense Reinvestment............................      -6,200,000
        Medical Electron Laser..........................      -3,300,000
        High Performance Computing......................      -1,600,000
        Theater High Altitude Area Defense..............     -40,000,000
        NATO Research and Development...................      -5,200,000
        Office of Secretary of Defense Studies..........      -5,700,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -71,200,000
                    ========================================================
                    ____________________________________________________
    Developmental Test and Evaluation, Defense:
        Central Test and Evaluation.....................      -2,200,000
        Foreign Cooperative Testing.....................      -6,200,000
        Test and Evaluation.............................      -3,800,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -12,200,000
                    ========================================================
                    ____________________________________________________
    Chemical Agents and Munitions Destruction, Defense:
        Procurement.....................................     -22,000,000
            Total fiscal year 1996......................    -310,800,000
                    ========================================================
                    ____________________________________________________
Fiscal year 1997:
    Military Personnel, Air National Guard:
        Endstrength Pricing.............................      -7,600,000
    Operation and Maintenance, Army:
        Capital Fund Transfer...........................     -17,000,000
    Operation and Maintenance, Defense-Wide:
        Office of the Secretary of Defense..............     -10,000,000
    Procurement of Ammunition, Army:
        Armament Retooling and Manufacturing Support....     -10,000,000
    Other Procurement, Army:
        Family of Medium Tactical Vehicles..............      -6,000,000
    Aircraft Procurement, Navy:
        F/A-18 E/F, Advanced Procurement................     -48,000,000
    Aircraft Procurement, Air Force:
        F-15............................................     -35,000,000
    Missile Procurement, Air Force:
        Medium Launch Vehicles..........................      -5,000,000
        Titan IV........................................    -115,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................    -120,000,000
                    ========================================================
                    ____________________________________________________
    Research, Development, Test and Evaluation, Army:
        C-3 Advanced Technology.........................      -7,000,000
        Night Vision Systems--Eng Dev...................      -5,000,000
        155 mm Light Weight Howitzer....................      -3,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -15,000,000
                    ========================================================
                    ____________________________________________________
    Research, Development, Test and Evaluation, Navy:
        Submarine Technology............................     -12,000,000
        Tomahawk........................................     -10,000,000
        MK-48 ADCAP (CBASS-New Start)...................      -1,000,000
        Standard Misssile Improvements (LASM-New Start).      -5,500,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................     -28,500,000
                    ========================================================
                    ____________________________________________________
    Research, Development, Test and Evaluation, Air 
      Force:
        AWACs...........................................     -25,000,000
        Threat Simulator Development....................      -5,000,000
        Classified......................................    -200,000,000
        WCMD............................................      -3,500,000
        JDAM............................................      -4,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Subtotal....................................    -237,500,000
                    ========================================================
                    ____________________________________________________
    Research, Development, Test and Evaluation, Defense-
      Wide: Dual-Use Funds (COSSI)......................    -100,000,000
                    --------------------------------------------------------
                    ____________________________________________________
            Total fiscal year 1997......................    -634,600,000
                    ========================================================
                    ____________________________________________________
            Total fiscal years 1994/1995/1996/1997......    -992,500,000

                     F/A-18 E/F Advance Procurement

    In Section 2204 the Committee recommends a rescission of 
$48,000,000 from amounts appropriated for fiscal year 1997 for 
F/A-18 E/F advance procurement. In fiscal year 1997 the 
Administration requested and the Congress appropriated advance 
procurement funds for 24 F/A-18 E/F aircraft in fiscal year 
1998. The fiscal year 1998 President's budget requests only 20 
aircraft. Therefore, $48,000,000 of fiscal year 1997 funds are 
no longer needed for the purpose for which they were 
appropriated. The Committee makes the recommendation to rescind 
$48,000,000 of excess advance procurement funds without 
prejudice to the F/A-18 E/F program.

                                Titan IV

    In Section 2204 the Committee recommends a rescission of 
$115,000,000 from amounts appropriated for fiscal year 1997 for 
the Titan IV missile program.
    It is the Committee's understanding that funds excess to 
program requirements are available due to the pending 
reimbursement of Air Force funds expended on NASA's Cassini 
mission. Additionally, recent changes in the Department of 
Defense's launch manifest make certain requalification efforts 
and long lead acquisition unnecessary. The Committee makes this 
recommendation without prejudice to the Titan IV program.

                   Theater High Altitude Area Defense

    In Section 2204 the Committee recommends a rescission of 
$40,000,000 from the amounts appropriated for fiscal year 1996 
for the Theater High Altitude Area Defense (THAAD) program. The 
Committee strongly supports the THAAD program, as evidenced by 
its having appropriated over $1.1 billion for this effort over 
the past two years, including an increase over the budget of 
$140,000,000 for fiscal year 1997. However, the program has 
experienced significant delays due to a series of test 
failures. Because the program has slipped by 13 months, the 
Committee proposes to rescind $40,000,000 in unobligated fiscal 
year 1996 funds which are now expected to lapse at the end of 
the fiscal year. This rescission should not affect the ability 
of the program to deploy a User Operational Evaluation System 
(UOES) by 1999.

                     Dual-Use Applications Program

    In Section 2204 the Committee recommends a rescission of 
$100,000,000 from the amounts appropriated in fiscal year 1997 
for the Dual-Use Applications Program. The funds appropriated 
in Section 5803 of Public Law 104-208 were intended for the 
Dual Use Applications Program as defined in Section 203 of 
Public Law 104-201. However, the Department of Defense has 
initiated a new program, the Commercial Operations and Support 
Savings Initiative (COSSI), which is not related to the program 
for which funds were appropriated. The COSSI program may have 
merit. However, this new start program has never been fully 
justified or properly requested by the Department. Therefore, 
the Committee recommends rescission of these funds.

                     Unapproved New Start Programs

    The Committee has learned the Navy recently initiated two 
costly programs that had not been previously explained to nor 
approved by Congress. One program will cost nearly one-half 
billion dollars to complete. The Committee discourages 
initiation of new programs through reprogrammings or 
reallocations made outside of the normal appropriations process 
except in extraordinary circumstances, for example, those 
involving pressing issues of safety and national security. 
Long-standing procedures have been in place to provide prior 
Congressional notification and approval for new programs when 
an urgent requirement warrants such exceptional treatment. The 
Committee is dismayed that the Navy would ignore these 
procedures and expose taxpayers to large expenses without 
public or Congressional review.
    The Secretary of the Navy is directed to report to the 
Committee by May 15, 1997 on the circumstances surrounding this 
breach in fundamental budget procedure and the actions that 
will be taken to see that no further breakdowns occur. In 
Section 2204, the Committee bill rescinds the funding for the 
two new start programs and the Committee will consider them for 
thefirst time as part of the fiscal year 1998 appropriations 
process. Should such abuses continue, the Committee will have no choice 
but to consider further restrictions on the reallocation of funds.

                          Classified Programs

    Details of the Committee's recommendations are discussed in 
the classified annex to this report.

                         Military Construction

                             (RESCISSIONS)

    Section 2205 recommends rescissions of fiscal year 1996 
appropriated amounts totaling $180,000,000 to offset unbudgeted 
costs associated with contingency operations. Of this total, 
$152,000,000 is rescinded to reflect savings from revised 
economic assumptions, as follows:

Military Construction, Air Force Reserve................      $5,000,000
Military Construction, Defense-wide.....................      13,000,000
Base Realignment and Closure Account, Part II...........      35,391,000
Base Realignment and Closure Account, Part III..........      75,638,000
Base Realignment and Closure Account, Part IV...........      22,971,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     152,000,000

    In addition, $28,000,000 is rescinded to reflect savings 
from program execution, as follows:

Military Construction, Defense-wide [Defense Logistics 
    Agency].............................................     $19,000,000
Military Construction, Defense-wide [Defense Medical 
    Facilities].........................................       9,000,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total...........................................      28,000,000

    The Committee directs that these rescissions reflecting 
savings from revised economic assumptions and program execution 
shall not result in the delay or reduction in scope of any 
project for which funds have been appropriated.

                               CHAPTER 3

                           General Provisions

                      Marine Corps Family Housing

    Marine Corps Base Camp Lejeune, North Carolina and Marine 
Corps Air Station Cherry Point, North Carolina sustained 
substantial damage to family housing units as a result of 
Hurricane Bertha [July 5-14, 1996] and Hurricane Fran [August 
24-September 6, 1996]. Necessary repairs totaling $20,420,000 
have been accomplished by deferring the performance of other 
programmed family housing work at a number of installations.
    In section 2301, the Committee recommends project 
cancellation and rescission of $6,480,000 from funds 
appropriated in fiscal year 1995 for a bachelor enlisted 
quarters project at Norfolk, Virginia. This project is no 
longer required due to a net reduction in Marine Corps 
personnel in Norfolk as a result of personnel transfers to Camp 
Lejeune. Further, in section 2302 the Committee recommends 
appropriation of $6,480,000 to partially reimburse the Family 
Housing, Navy and Marine Corps account for hurricane repair 
Operation and Maintenance costs that have been absorbed. This 
appropriation is authorized by 10 U.S.C. 2854, which provides 
authority for the restoration or replacement of damaged or 
destroyed facilities. In addition, if any foreign currency 
fluctuation savings are realized within the Family Housing, 
Navy and Marine Corps account, the Committee directs the Navy 
to further reimburse the Marine Corps for hurricane repair 
costs that have been absorbed.

                               TITLE III

                      GENERAL PROVISIONS--THIS ACT

                     Bilateral Economic Assistance

  Assistance for the New Independent States of the Former Soviet Union

   Progress Toward Economic Reform and Elimination of Corruption in 
                                Ukraine

    The Committee is recommending a conditional Presidential 
waiver of earmarks with regard to Ukraine under the heading, 
``Assistance for the New Independent States of the Former 
Soviet Union'' in the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1997.
    United States support for market reform and rule of law in 
Ukraine is not well served by limitations on the President's 
ability to link assistance to progress by the Government of 
Ukraine. The parliament of Ukraine's failure to enact needed 
reform legislation and the recent resignation of reform leaders 
from the Government mark a setback for reform since the 1997 
Act was signed in September 1996.
    The Committee strongly recommends that the Secretary of 
State make use of the flexibility provided by the waiver to 
assist American investors inUkraine who are adversely affected 
by arbitrary, illegal, or corrupt actions by officials in Ukraine.

                  Agency for International Development

                         new management system

    In House Report No. 104-600, the Committee on 
Appropriations requested the Inspector General of the Agency 
for International Development to report regularly on the 
implementation of the New Management System (NMS) of the Agency 
for International Development. The latest audit report of the 
Inspector General indicates that the NMS is not operating 
effectively; indeed, the report states that, as of March of 
1997, ``none of the NMS subsystems was fully operational.'' In 
addition, the report concludes: ``USAID has not implemented the 
disciplined IRM processes that are critical to success. USAID's 
decision to deploy NMS before it was capable of operating 
effectively has disrupted operations, increased vulnerability 
to fraud and abuse, wasted resources, and created morale 
problems. By diverting resources to fix numerous software 
defects, premature deployment has postponed efforts to correct 
the underlying design deficiencies that will continue to limit 
NMS from operating effectively.'' (Audit Report No. A-000-97-
004-P, March 31, 1997.)
    The Inspector General made five recommendations to USAID, 
including that operations of the accounting subsystem be 
suspended ``until technical deficiencies are corrected, 
implementation issues are resolved, and testing shows the 
system--or a cost-effective subset of the system--operates 
effectively and complies with federal financial management 
system requirements.'' The Committee expects USAID to comply at 
the earliest possible time with the Inspector General's 
recommendations. In that regard, the agency should report 
within the next thirty days on the steps it is taking to 
implement these recommendations. The failure to take corrective 
action in the near future will be a major consideration in 
future decisions by the Committee on support for USAID's 
operating expenses.
               CHANGES IN THE APPLICATION OF EXISTING LAW

    Pursuant to clause 3 of rule XXI of the Rules 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.
    Rescissions of previously appropriated funds have been 
included in several instances throughout the bill (see the 
table of rescissions included pursuant to clause 1(b) of rule X 
of the Rules of the House ``Rescissions'').
    Fund for Rural America.--Provides that of the funds made 
available to the Secretary on January 1, 1997 for the Fund for 
Rural America, not more than $80 million shall be available. 
The bill also provides that the Secretary can use any of these 
funds for the WIC program.
    Emergency Conservation Program.--Provides the Secretary of 
Agriculture the authority to use these funds for expenses 
related to livestock carcass removal.
    Tree Assistance Program.--Provides $9 million to replace or 
rehabilitate trees and vineyards damaged by natural disasters.
    Conservation Reserve Program.--Provides that none of the 
funds made available to the Secretary shall be used to enroll 
more than 14 million acres in the Conservation Reserve Program.
    Rural Housing Service.--Provides that notwithstanding sec. 
520 of the Housing Act of 1949, the College Station area of 
Pulaski County, Arkansas shall be eligible for loans and 
grants.
    Special Supplemental Nutrition Program for Women, Infants, 
and Children (WIC).--Provides that the Secretary shall allocate 
funds through any means he deems necessary.
    The Emergency Food Assistance Program.--Provides that the 
amount available through sec. 27(a) of the Food Stamp Act shall 
not exceed $80 million.
    Export Credit.--Provides that none of the funds in Public 
Law 104-180 shall be used to carry out an export credit 
guarantee program in excess of $3.5 billion.
    Export Enhancement Program.--Provides that none of the 
funds in Public Law 104-180 shall be used to carry out an 
export enhancement program in excess of $10,000,000.
    Under Department of Commerce, National Institute of 
Standards and Technology, Industrial Technology Services, 
language is included designating not to exceed $35,000,000 as 
the amount available for new awards out of the total funding 
provided for the Advanced Technology Program under Public Law 
104-208.
    River Basin Commissions.--Language is included providing 
that, beginning in fiscal year 1997 and thereafter, the United 
States members and the alternate members appointed under the 
Susquehanna River Basin Compact (Public Law 91-575), and the 
Delaware River Basin Compact (Public Law 87-328), shall be 
officers of the U.S. Army Corps of Engineers, who hold 
Presidential appointments as Regular Army officers with Senate 
confirmation, and who shall serve without additional 
compensation.
    Endangered Species Act.--Language is included amending 
Public Law 87-328 (75 Stat. 688, 691) to provide that the 
United States member of the Delaware River Basin Commission 
shall serve ``at the pleasure of the President'' rather than 
``during the term of office of the President''.
    Language is included which provides that the policy issued 
on February 19, 1997, by the U.S. Fish and Wildlife Service 
implementing emergency provisions of the Endangered Species Act 
in 46 counties in California shall apply to all counties 
declared Federal disaster areas in 1997 and to repair of flood 
control facilities in response to an imminent threat to human 
life and property and shall remain in effect until the 
Assistant Secretary of the Army for Civil Works determines that 
100 percent of emergency repairs have been completed, but shall 
not remain in effect later than December 31, 1998.
    The bill provides a Presidential waiver of several earmarks 
of assistance to Ukraine under the heading, ``Assistance for 
the New Independent States of the Former Soviet Union'' in the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1997.
    Language is included in Title I, chapter 4, under Bureau of 
Land Management, Oregon and California Grant Lands, which 
provides that funds made available in Public Law 104-134 shall 
be used for current emergency disaster relief.
    Language is included in Title I, chapter 4, under General 
Provision, Department of the Interior and Related Agencies, 
amending the recreational fee demonstration program which was 
enacted in fiscal year 1996.
    Language has been included under Title II, Chapter 1--
Department of Defense--Military to add DoD working capital fund 
accounts to ``Overseas Contingency Operations Transfer Fund''.
    A new appropriation paragraph ``OPLAN 34A/35 P.O.W. 
Payments'' has been included under Title II, Chapter 1--
Department of Defense--Military that provides funds to make 
payments to eligible South Vietnamese individuals or their 
survivors who were captured or incarcerated during the Vietnam 
conflict.
    Language has been included (Section 2102) under Title II, 
Chapter 1--Department of Defense--Military which provides a 
transfer of funds to ``Operation and Maintenance, Marine 
Corps'' for hurricane and flood damages.
    Language has been included (Section 2105) under Title II, 
Chapter 1--Department of Defense--Military which places 
restrictions on certain personnel practices and budget 
reprogramming procedures of the Department of the Navy unless 
prior approval is granted by the Committees on Appropriations 
of the House and Senate.
    The bill includes language regarding the administration of 
the Emergency relief program and the federal-aid highway 
obligation limitation.
    The bill also includes language that make emergency relief 
funding available for the repair or reconstruction of CA 
Highway 1 at Devil's Slide in San Mateo County.
    The bill includes provisions that correct enrolling errors 
in Public Law 104-205.
    The bill includes language that makes available contract 
authority for programs under section 410 of title 23 U.S.C. and 
section 30308(a) of title 49, U.S.C.
    Language is included under the Department of Housing and 
Urban Development, preserving existing housing investment, 
which authorizes and appropriates funds for a preservation 
project in Syracuse, New York.
    Language is included under Department of Housing and Urban 
Development, drug elimination grants for low-income housing, 
which provides for the appropriation of $30,200,000 by transfer 
from the homeownership and opportunity for people everywhere 
grants program.
    Language is included under the Department of Veterans 
Affairs, administrative provision, which authorizes the parking 
structure component of the ambulatory care addition project at 
the Cleveland VA Medical Center.
    Language is included under the Federal Emergency Management 
Agency, national flood insurance fund, which changes the 
waiting period before which flood insurance takes effect after 
purchase from 30 days to 15 days.
                  COMPLIANCE WITH RULE XIII--CLAUSE 3

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

    The accompanying bill would amend Section 2.2 of Public Law 
87-328, the Delaware River Basin Compact, as follows:
    Commission Membership. The commission shall consist of the 
Governors of the signatory states, ex officio, and one 
commissioner to be appointed by the President of the United 
States to serve [during the term of office of the President] at 
the pleasure of the President.
    Section 315 (c) (1), subsections (A) and (B), under the 
heading ``Title III--General Provisions'' in section 101(c) of 
Public Law 104-134 is amended as follows:
    (A) Of the amount in excess of [104%] 100% of the amount 
collected in fiscal year [1995] 1994, [and thereafter annually 
adjusted upward by 4%,] eighty percent to a special account in 
the Treasury for use without further appropriation, by the 
agency which administers the site, to remain available for 
expenditures in accordance with paragraph (2)(A).
    (B) Of the amount in excess of [104%] 100% of the amount 
collected in fiscal year [1995] 1994, [and thereafter annually 
adjusted upward by 4%,] twenty percent to a special account in 
the Treasury for use without further appropriation, by the 
agency which administers the site, to remain available for 
expenditure in accordance with paragraph (2)(B).

    The accompanying bill would amend the Department of 
Transportation and Related Agencies Appropriations Act, 1997, 
as follows:

 DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS ACT, 
                         1997 (Pub. L. 104-205)

          * * * * * * *

                                TITLE I

          * * * * * * *

                     FEDERAL TRANSIT ADMINISTRATION

          * * * * * * *

                          Discretionary Grants

                      (limitation on obligations)

                          (highway trust fund)

    None of the funds in this Act shall be available for the 
implementation or execution of programs the obligations for 
which are in excess of $1,900,000,000 in fiscal year 1997 for 
grants under the contract authority in 49 U.S.C. 5338(b): 
Provided, That there shall be available for fixed guideway 
modernization, $760,000,000; there shall be available for the 
replacement, rehabilitation, and purchase of buses and related 
equipment and the construction of bus-related facilities, 
$380,000,000; and, notwithstanding any other provision of law, 
except for fixed guideway modernization projects, $8,890,000 
made available under Public Law 102-240 and Public Law 102-143 
under ``Federal Transit Administration, Discretionary Grants'' 
for projects specified in those Acts or identified in reports 
accompanying those Acts, not obligated by September 30, 1996; 
together with, notwithstanding any other provision of law, 
$744,000 funds made available for the ``New Bedford and Fall 
River Massachusetts commuter rail extension'' under Public Law 
103-331; together with, notwithstanding any other provision of 
law, $47,322,000 funds made available for the ``Chicago Central 
Area Circulator Project'' in Public Law 103-122 and Public Law 
103-331, shall be available for new fixed guideway systems 
together with the $760,000,000 made available for new fixed 
guideway systems in this Act, to be available as follows:
          $6,390,000 for the Alaska-Hollis to Ketchikan ferry 
        project;
          [$661,000,000] $661,000 for the DeKalb County, 
        Georgia light rail project:
          * * * * * * *

                     TITLE III--GENERAL PROVISIONS

                     (including transfers of funds)

          * * * * * * *
    Sec. 325. Notwithstanding 31 U.S.C. 3302, funds received by 
the Bureau of Transportation Statistics from the sale of data 
products, for necessary expenses incurred pursuant to the 
provisions of section 6006 of the Intermodal Surface 
Transportation Efficiency Act of 1991, may be credited to the 
Federal-aid highways account for the purpose of reimbursing the 
Bureau for such expenses: Provided, That such funds shall not 
be subject to the obligation limitation for Federal-aid 
highways and highway safety construction. [That in addition to 
amounts otherwise provided in this Act, not to exceed 
$3,100,000 in expenses of the Bureau of Transportation 
Statistics necessary to conduct activities related to airline 
statistics may be incurred, but only to the extent such 
expenses are offset by user fees charged for those activities 
and credited as offsetting collections.]
          * * * * * * *
    The accompanying bill would amend section 410 of Title 23, 
United States Code, as follows:

              SECTION 410 OF TITLE 23, UNITED STATES CODE

Sec. 410. Alcohol-impaired driving countermeasures

    (a) * * *
          * * * * * * *
    (j) Authorization of Appropriations.--For purposes of 
carrying out this section, there is authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass 
Transit Account) $25,000,000 for each of fiscal years 1994 
through 1997[.], and an additional $500,000 for fiscal year 
1997. Amounts made available to carry out this section are 
authorized to remain available until expended.

    The accompanying bill would amend section 30308 of Title 
49, United States Code, as follows:

             SECTION 30308 OF TITLE 49, UNITED STATES CODE

Sec. 30308. Authorization of appropriations

    (a) General.--The Secretary of Transportation shall make 
available from amounts made available to carry out section 402 
of title 23 $4,000,000 for each of the fiscal years ending 
September 30, 1993, and September 30, 1994, and $2,550,000 for 
each of fiscal years 1995 [and 1996], 1996, and 1997 to carry 
out this chapter.
          * * * * * * *
                  APPROPRIATIONS NOT AUTHORIZED BY LAW

    Pursuant to clause 3 of rule XXI of the Rules of the House 
of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:
Department of Commerce
  Economic Development Administration, except Salaries and 
            Expenses
    National Oceanic and Atmospheric Administration, 
Construction
Department of Defense
  Military Personnel, Army
  Military Personnel, Navy
  Military Personnel, Marine Corps
  Military Personnel, Air Force
  Overseas Contingency Operations Transfer Fund
  OPLAN 34A/35 P.O.W. Payments
  Reserve Mobilization Income Insurance Fund
  General Provisions--Section 2102 of Chapter 1, Title II
  General Provisions--Section 2103 of Chapter 1, Title II
  General Provisions--Section 2104 of Chapter 1, Title II
Independent Agency
  Federal Election Commission
Department of Housing and Urban Development
  Preserving Existing Housing Investment
  Drug Elimination Grants for Low-Income Housing
Department of Transportation
    Emergency Railroad Rehabilitation and Repair
                        CONSTITUTIONAL AUTHORITY

    Clause 2(l)(4) of rule XI of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.
                           TRANSFER OF FUNDS

    Pursuant to clause 1(b) of rule X of the Rules of the House 
of Representatives, the following is submitted describing the 
transfer of funds provided in the accompanying bill.
    The following table shows the appropriations affected by 
the transfers:

                                 APPROPRIATED TRANSFERS RECOMMENDED IN THE BILL                                 
----------------------------------------------------------------------------------------------------------------
                                                                 Account from which transfer is to              
      Account to which transfer is to made           Amount                    made                    Amount   
----------------------------------------------------------------------------------------------------------------
Department of the Interior: Bureau of Land          $3,003,000  Department of the Interior: Bureau    $3,003,000
 Management Construction.                                        of Land Management, Oregon and                 
                                                                 California Grant Lands.                        
Department of Defense: Operation and                23,000,000  Department of Defense: Military        4,000,000
 Maintenance, Marine Corps.                                      Personnel, Marine Corps.                       
                                                                Operation and Maintenance, Marine     11,000,000
                                                                 Corps.                                         
                                                                Procurement of Ammunition, Navy        4,000,000
                                                                 and Marine Corps 1996/1998.                    
                                                                Procurement, Marine Corps, 1996/       4,000,000
                                                                 1998.                                          
----------------------------------------------------------------------------------------------------------------


    Fund for Rural America.--The bill allows the Secretary to 
transfer funds available on January 1, 1997 to the special 
supplemental nutrition program for women, infants, and children 
(WIC).
    The Committee has included language transfering $30,200,000 
of unobligated balances from the Homeownership and Opportunity 
for People Everywhere (HOPE) Grants program to the Drug 
Elimination Grants Program. These funds are necessary to 
augment HUD's crime prevention efforts in federally assisted 
low-income housing.
                              RESCISSIONS

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

                   RESCISSIONS RECOMMENDED IN THE BILL                  
------------------------------------------------------------------------
                                                            Amounts     
                Department or activity                  recommended for 
                                                           rescission   
------------------------------------------------------------------------
                DEPARTMENT OF JUSTICE                                   
                                                                        
General Administration: Working Capital Fund.........        -$6,400,000
Legal Activities: Asset Forfeiture Fund..............         -3,000,000
Immigration and Naturalization Service: Construction.         -1,000,000
                                                                        
                DEPARTMENT OF COMMERCE                                  
                                                                        
National Institute of Standards and Technology:                         
 Industrial Technology Services......................         -7,000,000
National Oceanic and Atmospheric Administration:                        
 Fleet Modernization, Shipbuilding and Conversion....         -2,000,000
                                                                        
                   RELATED AGENCIES                                     
                                                                        
Federal Communications Commission: Salaries and                         
 Expenses............................................         -1,000,000
Ounce of Prevention Council: Direct Appropriation....         -1,000,000
Energy Supply, Research and Development Activities...         22,532,000
Department of Energy, Clean Coal Technology..........         17,000,000
Department of Energy, Strategic Petroleum Reserve....         11,000,000
                                                                        
                DEPARTMENT OF DEFENSE                                   
                                                                        
Fiscal year 1996:                                                       
    Department of Defense--Military Construction:                       
        Military Construction, Air Force Reserve.....         -5,000,000
        Military Construction, Defense-wide..........        -41,000,000
        Base Realignment and Closure Account, Part II        -35,391,000
        Base Realignment and Closure Account, Part                      
         III.........................................        -75,638,000
        Base Realignment and Closure Account, Part IV        -22,971,000
Fiscal year 1995:                                                       
    Department of Defense--Military Construction:                       
        Military Construction, Navy..................         -6,480,000
Department of Defense--Military:                                        
    Fiscal year 1993:                                                   
        Shipbuilding and Conversion, Navy:                              
         Unobligated Balances........................        -10,000,000
    Fiscal year 1994:                                                   
        Shipbuilding and Conversion, Navy: Service                      
         Craft.......................................        -28,700,000
    Fiscal year 1995:                                                   
        Aircraft Procurement, Army: Unobligated                         
         Balances....................................         -1,085,000
        Missile Procurement, Army: Unobligated                          
         Balances....................................         -2,707,000
        Procurement of Weapons and Tracked Combat                       
         Vehicles, Army: Unobligated Balances........         -2,296,000
        Procurement of Ammunition, Army: Unobligated                    
         Balances....................................         -3,236,000
        Other Procurement, Army: Unobligated Balances         -2,502,000
        Aircraft Procurement Navy: Unobligated                          
         Balances....................................        -34,000,000
        Weapons Procurement, Navy: Unobligated                          
         Balances....................................        -16,000,000
        Procurement of Ammunition, Navy and Marine                      
         Corps: Unobligated Balances.................           -812,000
        Other Procurement, Navy: Unobligated Balances         -4,237,000
        Procurement, Marine Corps: Unobligated                          
         Balances....................................         -1,207,000
        Aircraft Procurement, Air Force:                                
            JSTARS, Advanced Procurement.............        -14,400,000
            Unobligated Balances.....................        -33,650,000
        Missile Procurement, Air Force:                                 
            Missile Replacement Equipment............         -4,000,000
            Unobligated Balances.....................         -7,195,000
        Other Procurement, Air Force: Unobligated                       
         Balances....................................         -3,659,000
        Procurement, Defense-Wide: Unobligated                          
         Balances....................................        -12,881,000
        National Guard and Reserve Equipment:                           
         Unobligated Balances........................         -5,029,000
        Chemical Agents and Munitions Destruction,                      
         Defense: Unobligated Balances...............           -456,000
    Fiscal year 1996:                                                   
        Aircraft Procurement, Army:                                     
            Blackhawk, Advanced Procurement..........         -5,000,000
            Spares and repair parts..................         -8,000,000
            Avionics Support Equipment...............         -5,000,000
        Procurement of Weapons and Tracked Combat                       
         Vehicles, Army:                                                
            Carrier Mods.............................         -3,000,000
            Bradley Fighting Vehicle System..........        -10,000,000
            Weapons and other Combat Vehicles........        -13,000,000
        Procurement of Ammunition, Army:                                
            Provision of Industrial Facilities.......         -8,000,000
            Layaway of Industrial Facilities.........         -6,000,000
            Ammunition Base Production Support.......        -20,000,000
        Other Procurement, Navy: Shipboard Tactical                     
         Communications..............................         -3,000,000
        Aircraft Procurement, Air Force:                                
            JSTARS...................................        -25,000,000
            F-16.....................................        -12,000,000
            F-16 Post Production Support.............        -15,000,000
        Other Procurement, Air Force: Strategic C2...        -10,000,000
        Procurement of Ammunition, Air Force: CBU-87.        -21,100,000
        Procurement, Defense-Wide:                                      
            DISA/Defense Message System..............        -12,000,000
            Major Equipment..........................        -10,700,000
            SDIO Major Equipment.....................        -12,100,000
        Research, Development, Test and Evaluation,                     
         Army: Unobligated Balances..................         -4,366,000
        Research, Development, Test and Evaluation,                     
         Navy:                                                          
            MK-48 ADCAP (CBASS--New Start)...........         -4,000,000
            Standard Missile Improvements (LASM--New                    
             Start)..................................           -500,000
            Unobligated Balances.....................        -14,978,000
        Research, Development, Test and Evaluation,                     
         Air Force:                                                     
            Night Precision Attack...................         -2,000,000
            Unobligated Balances.....................        -28,396,000
        Research, Development, Test and Evaluation,                     
         Defense-Wide:                                                  
            University Research......................         -9,200,000
            Defense Reinvestment.....................         -6,200,000
            Medical Electron Laser...................         -3,300,000
            High Performance Computing...............         -1,600,000
            Theater High Altitude Area Defense.......        -40,000,000
            NATO Research and Development............         -5,200,000
            Office of Secretary of Defense Studies...         -5,700,000
            Unobligated Balances.....................        -55,973,000
        Developmental Test and Evaluation, Defense:                     
            Central Test and Evaluation..............         -2,200,000
            Foreign Cooperative Testing..............         -6,200,000
            Test and Evaluation......................         -3,800,000
            Unobligated Balances.....................           -890,000
        Operational Test and Evaluation, Defense:                       
         Unobligated Balances........................           -160,000
        Chemical Agents and Munitions Destruction,                      
         Defense:                                                       
            Unobligated Balances.....................           -652,000
            Procurement..............................        -22,000,000
    Fiscal year 1997:                                                   
        Military Personnel, Army: Foreign Currency                      
         Savings.....................................        -37,000,000
        Military Personnel, Navy: Foreign Currency                      
         Savings.....................................         -9,000,000
        Military Personnel, Air Force: Foreign                          
         Currency Savings............................        -12,000,000
        Military Personnel, Air National Guard:                         
         Endstrength Pricing.........................         -7,600,000
        Operation and Maintenance, Army:                                
            Capital Fund Transfer....................        -17,000,000
            Inflation Adjustment.....................        -19,000,000
            Foreign Currency Savings.................       -124,000,000
        Operation and Maintenance, Navy:                                
            Inflation Adjustment.....................        -24,000,000
            Foreign Currency Savings.................        -22,000,000
        Operation and Maintenance, Air Force:                           
            Inflation Adjustment.....................        -18,000,000
            Foreign Currency Savings.................        -79,000,000
        Operation and Maintenance, Defense-Wide:                        
            Office of the Secretary of Defense.......        -10,000,000
            Inflation Adjustment.....................         -8,000,000
            Foreign Currency Savings.................        -14,000,000
        Operation and Maintenance, Army Reserve:                        
         Inflation Adjustment........................         -1,000,000
        Operation and Maintenance, Navy Reserve:                        
         Inflation Adjustment........................         -1,000,000
        Operation and Maintenance, Air Force Reserve:                   
         Inflation Adjustment........................         -1,000,000
        Operation and Maintenance, Army National                        
         Guard: Inflation Adjustment.................         -2,000,000
        Operation and Maintenance, Air National                         
         Guard: Inflation Adjustment.................         -3,000,000
        Drug Interdiction and Counter-Drug                              
         Activities, Defense: Inflation Adjustment...         -2,000,000
        Environmental Restoration, Army: Inflation                      
         Adjustment..................................           -250,000
        Environmental Restoration, Navy: Inflation                      
         Adjustment..................................           -250,000
        Environmental Restoration, Air Force:                           
         Inflation Adjustment........................           -250,000
        Environmental Restoration, Formerly Used                        
         Defense Sites: Inflation Adjustment.........           -250,000
        Former Soviet Union Threat Reduction:                           
         Inflation Adjustment........................         -2,000,000
        Defense Health Program:                                         
            Inflation Adjustment.....................        -10,000,000
            Foreign Currency Savings.................        -11,000,000
        Aircraft Procurement, Army: Inflation                           
         Adjustment..................................         -8,000,000
        Missile Procurement, Army: Inflation                            
         Adjustment..................................         -2,000,000
        Procurement of Weapons and Tracked Combat                       
         Vehicles, Army: Inflation Adjustment........         -5,000,000
        Procurement of Ammunition, Army:                                
            Armament Retooling and Manufacturing                        
             Support.................................        -10,000,000
            Inflation Adjustment.....................         -1,000,000
        Other Procurement, Army:                                        
            Family of Medium Tactical Vehicles.......         -6,000,000
            Inflation Adjustment.....................        -15,000,000
        Aircraft Procurement, Navy:                                     
            F-18 E/F, Advanced Procurement...........        -48,000,000
            Inflation Adjustment.....................        -28,000,000
        Weapons Procurement, Navy: Inflation                            
         Adjustment..................................         -6,000,000
        Shipbuilding and Conversion, Navy: Inflation                    
         Adjustment..................................        -33,000,000
        Other Procurement, Navy: Inflation Adjustment         -8,000,000
        Aircraft Procurement, Air Force:                                
            F-15.....................................        -35,000,000
            Inflation Adjustment.....................        -20,000,000
        Missile Procurement, Air Force:                                 
            Medium Launch Vehicles...................         -5,000,000
            Titan IV.................................       -115,000,000
            Inflation Adjustment.....................        -11,000,000
        Other Procurement, Air Force: Inflation                         
         Adjustment..................................         -7,000,000
        Procurement, Defense-Wide: Inflation                            
         Adjustment..................................         -5,000,000
        National Guard and Reserve Equipment:                           
         Inflation Adjustment........................         -8,000,000
        Chemical Agents and Munitions Destruction,                      
         Defense: Inflation Adjustment...............         -2,000,000
        Research, Development, Test and Evaluation,                     
         Army:                                                          
            C3 Advanced Technology...................         -7,000,000
            Night Vision Systems--Eng Dev............         -5,000,000
            155 mm Light Weight Howitzer.............         -3,000,000
            Inflation Adjustment.....................        -10,000,000
        Research, Development, Test and Evaluation,                     
         Navy:                                                          
            Submarine Technology.....................        -12,000,000
            Tomahawk.................................        -10,000,000
            MK-48 ADCAP (CBASS-New Start)............         -1,000,000
            Standard Missile Improvements (LASM--New                    
             Start)..................................         -5,500,000
            Inflation Adjustment.....................         -9,000,000
        Research, Development, Test and Evaluation,                     
         Air Force:                                                     
            AWACs....................................        -25,000,000
            Threat Simulator Development.............         -5,000,000
            Classified...............................       -200,000,000
            WCMD.....................................         -3,500,000
            JDAM.....................................         -4,000,000
            Inflation Adjustment.....................        -22,000,000
        Research, Development, Test and Evaluation,                     
         Defense-Wide:                                                  
            Dual-use Funds (COSSI)...................       -100,000,000
            Inflation Adjustment.....................        -15,000,000
                                                                        
             Department of Transportation                               
                                                                        
Federal Aviation Administration, Grants-in-Aid for                      
 Airports (Airport and Airway Trust Fund)............       -750,000,000
National Highway Traffic Safety Administration,                         
 Highway traffic safety grants (Highway Trust Fund)..        -13,000,000
Federal Transit Administration, Trust fund share of                     
 expenses (Highway Trust Fund).......................       -271,000,000
Federal Transit Administration, Discretionary grants                    
 (Highway Trust Fund)................................       -588,000,000
                                                                        
           General Services Administration                              
                                                                        
Federal Buildings Fund: Public Law 104-208...........         -1,400,000
Expenses, Presidential Transition: Public Law 104-208         -5,600,000
                                                                        
     Department of Housing and Urban Development                        
                                                                        
Annual Contributions for Assisted Housing............     -3,823,440,000
------------------------------------------------------------------------

                   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 602 
of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. All budget 
authority provided in the accompanying bill is offset therein.
    The bill provides 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), as amended.

                      FIVE-YEAR OUTLAY PROJECTIONS

    In compliance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:

                              [In millions]

Budget Authority..............................................      $757
Outlays:
    Fiscal year 1997..........................................       542
    Fiscal year 1998..........................................     1,549
    Fiscal year 1999..........................................     1,176
    Fiscal year 2000..........................................       981
    Fiscal year 2001 and future years.........................     1,549

Note: The above table includes mandatory appropriations and 
discretionary appropriations.
---------------------------------------------------------------------------

               ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

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 financial assistance to State and 
    local governments is as follows:
                              [In millions]

New budget authority....................................          $2,281
Fiscal year 1997 outlays resulting therefrom............             202
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 1

    Date: April 24, 1997.
    Measure: 1997 Emergency Supplemental Appropriations bill.
    Motion by: Mr. Obey.
    Description of Motion: To increase the amount for the 
Special Supplemental Nutrition Program for Women, Infants, and 
Children (WIC) by $38 million.
    Results: Rejected 24 yeas to 28 nays.
        Members Voting Yea            Members Voting Nay
Ms. DeLauro                         Mr. Aderholt
Mr. Dicks                           Mr. Bonilla
Mr. Dixon                           Mr. Callahan
Mr. Edwards                         Mr. Cunningham
Mr. Fazio                           Mr. DeLay
Mr. Foglietta                       Mr. Dickey
Mr. Forbes                          Mr. Frelinghuysen
Mr. Hefner                          Mr. Hobson
Mr. Hoyer                           Mr. Istook
Miss Kaptur                         Mr. Kingston
Mrs. Lowey                          Mr. Knollenberg
Mrs. Meek                           Mr. Kolbe
Mr. Moran                           Mr. Latham
Mr. Murtha                          Mr. Lewis
Mr. Obey                            Mr. Livingston
Mr. Olver                           Mr. McDade
Mr. Pastor                          Mr. Miller
Mr. Price                           Mr. Nethercutt
Mr. Sabo                            Mr. Neumann
Mr. Serrano                         Mrs. Northup
Mr. Skaggs                          Mr. Packard
Mr. Stokes                          Mr. Parker
Mr. Visclosky                       Mr. Regula
Mr. Walsh                           Mr. Rogers
                                    Mr. Skeen
                                    Mr. Tiahrt
                                    Mr. Wamp
                                    Mr. Young
      
    
    
ADDITIONAL VIEWS OF HON. DAVID R. OBEY, LOUIS STOKES, NORMAN D. DICKS, 
 MARTIN OLAV SABO, VIC FAZIO, ALAN B. MOLLOHAN, MARCY KAPTUR, NITA M. 
LOWEY, JOSE E. SERRANO, ROSA L. DeLAURO, JAMES P. MORAN, JOHN W. OLVER, 
      ED PASTOR, CARRIE P. MEEK, DAVID E. PRICE, AND CHET EDWARDS

    This bill contains a number of provisions which will be 
favored by those in both parties; and it is legislation which, 
on balance, will probably be supported by a significant number 
of Members of both parties. There are, however, some failings 
in this legislation which should be noted.

                failure to include emergency cdbg funds

    We are disappointed that the committee did not approve 
President Clinton's request for $100 million in emergency 
supplemental appropriations for the Community Development Block 
Grant (CDBG) program, to be used to aid recovery from the 
devastating floods in North and South Dakota and Minnesota. The 
CDBG program offers a flexible mechanism that can fill in gaps 
left by other federal disaster relief programs. As the full 
dimensions of this disaster continue to unfold, we believe that 
such flexibility will prove to be extremely important in 
achieving the most efficient use of available funds and 
insuring that the most urgent needs are met.

                  rescission of hud section 8 funding

    We also take note that the bill, as reported, includes 
rescissions of $3.8 billion in budget authority from assisted 
housing programs of the Department of Housing and Urban 
Development. The vast majority of this rescission comes from 
``excess'' reserves for section 8 housing vouchers and 
certificates--that is, budget authority committed under section 
8 contracts over the years that has turned out to exceed the 
amounts actually needed under those contracts. We understand 
that rescinding this budget authority will not have a negative 
impact on housing assistance in the current fiscal year.
    If these reserves were not rescinded, however, they would 
carry over into fiscal year 1998, and would be available to 
fund renewal of expiring section 8 housing assistance 
contracts. The number of section 8 contracts needing renewal 
will grow rapidly over the next several years, and the budget 
authority required for contract renewal will increase from $3.6 
billion in 1997 to an estimated $9.2 billion in 1998. If 
sufficient budget authority is not provided to renew these 
contracts when they expire (or to provide alternate housing 
assistance for residents where contracts will not be renewed) 
the consequences could be grave for literally millions of less 
fortunate Americans.
    The majority has given assurances that the rescission of 
section 8 reserves in this bill is not intended to harm or 
prejudice the future of this program. We are not objecting to 
the rescission based on those assurances and with the 
understanding that adequate appropriations will be provided for 
fiscal year 1998 to renew expiring contracts and prevent 
displacement of the elderly and disabled persons, families with 
children, and others receiving assistance under the section 8 
program.

                     denial of full funding for wic

    Our deepest concern with this bill relates to the WIC 
program. We are deeply distressed by the decision of the 
Appropriations Committee to cut half of the requested funds for 
the Special Supplemental Food Program for Women, Infants and 
Children (WIC). The result of that cut will be the elimination 
by September 30 of this year of150,000 to 200,000 pregnant 
women and infants from program participation. We view that as short 
sighted, wasteful and cruel.
    The U.S. Department of Agriculture has collected 
information from all 50 states concerning the availability of 
funds to continue current enrollment levels through the end of 
the year. Based on the data prepared by the states, it is 
apparent that nationwide enrollment will drop from 7.4 million 
enrollees to a little more than 7 million enrollees if no 
additional funds are made available during the current fiscal 
year. In order to prevent this drop in services an additional 
$76 million in funding is necessary.
    Unfortunately, the Committee has voted to provide only $38 
million in additional funding--half of the amount identified by 
the states as the level required to keep participation at 
current levels. In effect, the Committee is reducing the number 
of individuals slated for program termination from 360,000 to 
180,000. This action is reminiscent of the majority's attempt 
two years ago to reduce funding for the school lunch program 
without acknowledging that children would be hurt.
    Those who advocated denying funding to WIC cited several 
reasons. Some say that the numbers used to back up the request 
are ``disingenuous''. In fact, the numbers are based on data 
from the states collected within the past month and reflecting 
the most up-to-date information available. In this most recent 
exercise, 30 states projected reductions in WIC participation 
if supplemental funding is not forthcoming.
    Other opponents of full WIC funding have cited the fact 
that state authorities charged with operating the program 
inevitably have funds left over at the end of the fiscal year. 
They have argued that the carryover funds could be used to 
avert reductions in program participation. While this argument 
may sound reasonable on the surface, it fails to account for 
the fact that state governments must by law maintain sufficient 
funds at the end of a fiscal year to meet all obligations 
incurred in that year. Vouchers for items such as infant 
formula or orange juice which are issued in the later months of 
one fiscal year may not be redeemed for payment by the states 
until the early months of the following fiscal year. Carryover 
amounts projected for the current fiscal year are the lowest in 
the recent history of the program and very close to the minimum 
level which most program authorities feel is consistent with 
prudent program management.
    Finally, some members of the Agriculture Subcommittee have 
pointed to policy differences they have with certain state 
officials over management of the WIC program. While these 
differences may be of valid concern to the Committee, they do 
not constitute a reasonable argument for denying needed food 
supplements to eligible program participants.
    Virtually every analysis of the WIC program has indicated 
that it not only improves the lives of program participants but 
saves U.S. taxpayers significant sums of money by reducing the 
number of low birth weight babies, improving the health of 
expectant mothers and small children and increasing the portion 
of at risk children who begin pre-school, kindergarten and 
elementary school ready to learn. The GAO has estimated that 
every dollar spent in the WIC program saves $3.54, with most of 
the savings coming in the Medicaid program. Spending about $30 
per person per month in the WIC program makes a lot more sense 
to us than spending hundreds or even thousands of dollars a day 
on Medicaid costs.
    It is ironic that the Committee has decided to fund 
virtually every other program in this bill, ranging from 
defense spending to disaster relief, at or above the level 
requested by the White House. We continue to wonder why the 
majority has such difficulty in coming to terms with the need 
for additional funds for the protection of children's health. 
We believe that avoiding potential human disasters is just as 
important as providing funds to respond to natural disasters.

                                   Ed Pastor.
                                   Jose E. Serrano.
                                   Carrie P. Meek.
                                   David Price.
                                   Martin O. Sabo.
                                   Jim Moran.
                                   Vic Fazio.
                                   Alan B. Mallohan.
                                   David Obey.
                                   Marcy Kaptur.
                                   Rosa L. DeLauro.
                                   Louis Stokes.
                                   Norman Dicks.
                                   Chet Edwards.
                                   John Olver.
                                   Nita Lowey.
               ADDITIONAL VIEWS OF HON. MARTIN OLAV SABO

    This bill is an important first step in making sure 
adequate funding is available to help the thousands of people 
in Minnesota and the Dakotas who have had their lives turned 
upside down by an unprecedented flood this spring. I was very 
pleased the committee--in response to the needs of that 
region--added an extra $200 million to earlier requests for 
funding.
    Because we don't yet know the full extent of the flood 
damage in this unfolding tragedy, I greatly appreciate Chairman 
Livingston's commitment to revisit the funding issue before 
this legislation becomes final--ensuring the region will get 
the help it needs.
    This much-needed relief will go for families, individuals, 
businesses, and local governments that have suffered losses, 
and will also pay for flood prevention and control efforts. The 
aid--combined with the persistence, creativity, and heroic 
spirit we have already seen from area citizens--will go a long 
way toward getting the region back on its feet.
    Additionally, I appreciate the commitment of Chairman 
Livingston to support Congresswoman Meek and others in their 
efforts to remedy the problems created for legal immigrants by 
last year's welfare bill.
    Under the new law, legal immigrants will be denied 
Supplemental Security Income (SSI), food stamps, and Medicaid 
benefits starting in August of this year. Many of the people 
affected by the new law are elderly people who have lived in 
this country, worked hard, and paid taxes for many years. Many 
of these people came here to escape political or religious 
persecution.
    The new law is unduly harsh on these people and states, 
localities, and private charities have not had nearly enough 
time to find ways to soften the blow. In my state of Minnesota 
alone, estimates show the new law will deny Food Stamps to 
16,000 legal immigrants, Supplemental Security Income to 5,400 
elderly and disabled legal immigrants, and Medicaid coverage to 
470 immigrants. Nationally, millions more will be hurt by these 
changes.
    It is my understanding that budget negotiators and the 
Congressional leadership are looking for ways to remedy the 
worst excesses of this law, but they may not be able to 
complete their work before August. If there is no agreement by 
the time the Supplemental Appropriations bill goes to the 
floor, Congresswoman Meek and others will ask the Rules 
Committee for the right to offer an amendment which would 
temporarily delay the benefit cutoff until a more appropriate 
remedy can be effected.
    While I hope that this will move through Congress swiftly, 
I am very concerned that the bulk of the offsets in this bill 
come from a rescission of funds for assisted housing at the 
Department of Housing and Urban Development.
    This rescission will further complicate the difficult and 
ongoing process of renewing expiring Section 8 rental 
assistance contracts. Today, 4.4 million low-income, disabled, 
and elderly individuals and families utilize the Section 8 
program. Expiring contracts must be renewed, or housing for 
thousands of vulnerable individuals will be placed at risk.
    Over the course of the next few years, the number of 
expiring contracts will increase rapidly, and budget authority 
must increase simultaneously in order to honor our current 
Section 8 commitments. For example, HUD has requested $9.2 
billion in budget authority to renew contracts in FY 1998 in 
contrast to the $3.6 billion required for the same purpose in 
FY 1997. This poses a substantial challenge for Congress, which 
will only be compounded by this $3.823 billion rescission.
    Despite my concern about the assisted housing rescission, I 
greatly appreciate Chairman Livingston's commitment to help 
flood-ravaged areas in Minnesota and the Dakotas, as well as 
his support for our efforts to help legal immigrants.

                                                    Martin O. Sabo.
                ADDITIONAL VIEWS OF HON. CARRIE P. MEEK

    I write separately to applaud the deep concern shown by the 
Committee and the Chairman over the cut-off of Supplemental 
Security Income (``SSI'') checks to our needy legal immigrants 
(including refugees and asylees). Because of a provision in 
last year's welfare law, these checks will stop in August--four 
months from now. At the markup the Chairman indicated that the 
Republican leadership is aware of the problem and is 
considering a legislative solution.
    August is the month Congress is scheduled to be in recess. 
We should not be in recess unless we have dealt with this 
problem.
    The purpose of last year's welfare law was to move people 
from welfare to work. The cut-off of SSI checks has nothing to 
do with that goal.
    SSI checks go to needy people who are at least 65, blind, 
or disabled. These people are not going to get jobs in the 
private sector when these SSI checks stop. Because of the 
interaction of Medicaid and SSI, cutting off SSI means that 
some of these people may also lose their Medicaid benefits. 
That means elderly legal immigrants may be thrown out of 
nursing homes this summer.
    Two months ago the Social Security Administration (``SSA'') 
began mailing letters to 800,000 legal immigrants telling them 
their SSI checks may end this summer.
    These letters are causing fear throughout the land. Two 
weeks ago a legal immigrant committed suicide in Miami after 
learning that he might lose his SSI check. Last week 5,000 
Jewish legal immigrants from the former Soviet Union held a 
rally at the Capitol to protest this cut-off. At this rally, 
Yosef Abramowitz, President of the Union of Councils for Soviet 
Jews, asked Congress to immediately pass legislation ``to 
continue the benefits until a permanent legislative solution is 
found and enacted.''
    Leaders in both parties now recognize that something must 
be done about this provision in the new Federal welfare law. On 
April 14 the Senate passed unanimously a resolution of Majority 
Leader Lott. It says ``It is the sense of the Senate that 
elderly and disabled legal immigrants who are unable to work 
should receive assistance essential to their well-being, and 
that the President, Congress, the States, and faith-based and 
other organizations should continue to work together toward 
that end.''
    The nation needs time to adjust. Many State legislatures 
have already adjourned for this year. People need time to try 
to become citizens. In Miami the waiting list to become a 
citizen is now over a year.
    We can postpone the cut-off of SSI checks and still balance 
the budget. The ``Blue Dog Coalition'' balanced budget proposal 
contains a two year postponement. According to the 
Congressional Budget Office, a postponement through the end of 
the fiscal year will cost the Federal government about $240 
million in spending. There is no need to require offsets for 
this additional spending, just as there are no offsets for the 
additional $757 million in mandatory spending for veterans 
benefits that the reported bill contains.
    In conclusion, in the reported bill we are providing relief 
to the victims of floods and other natural disasters. We are 
doing this because we are a compassionate nation. We should 
extend our compassion to needy legal immigrants who have paid 
their taxes and lived by our rules.

                                                    Carrie P. Meek.