[House Report 108-312]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-312

======================================================================

 
 MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR DEFENSE AND FOR THE 
   RECONSTRUCTION OF IRAQ AND AFGHANISTAN FOR THE FISCAL YEAR ENDING 
               SEPTEMBER 30, 2004, AND FOR OTHER PURPOSES

                                _______
                                

October 14, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Young of Florida, from the Committee on Appropriations, submitted 
                             the following

                              R E P O R T

                             together with

                    DISSENTING, AND ADDITIONAL VIEWS

                        [To accompany H.R. 3289]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making emergency 
supplemental appropriations for defense and for the 
reconstruction of Iraq and Afghanistan for the fiscal year 
ending September 30, 2004, and for other purposes.

                              Bill Summary

    The bill recommended by the Committee includes 
$86,856,029,000 in emergency supplemental appropriations for 
fiscal year 2004. This includes $65,270,629,000 for defense 
activities and $21,585,400,000 for reconstruction and 
international assistance, principally for Iraq and Afghanistan. 
The bill also includes other international assistance, such as 
the United States' share of the assessment for the United 
Nations' peacekeeping mission in Liberia, as well as funding to 
repair storm damage caused by Hurricane Isabel.

                       TITLE I--NATIONAL SECURITY


                               CHAPTER 1


                    DEPARTMENT OF DEFENSE--MILITARY

    In the supplemental budget request, the President requested 
$65,147,554,000 for programs and activities funded through 
defense appropriations acts. These funds are for additional 
military personnel costs, military health care support, 
increased operational tempo costs, procurement of equipment, 
increased maintenance, and support for classified activities. 
According to budget justification materials submitted with the 
request, this total includes $51,200,000,000 for Operation 
Iraqi Freedom (OIF); $10,300,000,000 for Operation Enduring 
Freedom (OEF); $2,200,000,000 for Operation Noble Eagle (ONE); 
and $1,400,000,000 to reimburse coalition countries for 
logistical and military support provided to the United States 
military in connection with military operations in Iraq and 
Afghanistan.
    The Committee recommends total new appropriations of 
$64,702,854,000. This includes $64,289,554,000 for ongoing 
military operations, as well as an additional $413,300,000 to 
provide for repairs to military facilities resulting from 
recent natural disasters. The Committee notes that funding 
requested in this chapter for the Coalition Provisional 
Authority has instead been provided in title II of the 
Committee bill.
    The following table summarizes, by appropriations account 
or general provision, the Committee's recommendations compared 
to the President's request.

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                   Request       Recommendation      request
----------------------------------------------------------------------------------------------------------------
Military Personnel:
    Military Personnel, Army.................................       12,858,870       12,188,870         -670,000
    Military Personnel, Navy.................................          816,100          816,100                0
    Military Personnel, Marine Corps.........................          753,190          753,190                0
    Military Personnel, Air Force............................        3,384,700        3,384,700                0
                                                              --------------------------------------------------
      Total Military Personnel...............................       17,812,860       17,142,860         -670,000
                                                              ==================================================
Operation and Maintenance:
    O&M, Army................................................       24,190,464       24,355,664          165,200
    O&M, Navy................................................        2,106,258        1,934,058         -172,200
    O&M, Marine Corps........................................        1,198,981        1,198,981                0
    O&M, Air Force...........................................        5,948,368        5,598,368         -350,000
    O&M, Defense-Wide........................................        4,618,452        4,485,452         -133,000
    O&M, Marine Corps Reserve................................           16,000           16,000                0
    O&M, Air Force Reserve...................................           53,000           53,000                0
    O&M, Air National Guard..................................          214,000          214,000                0
    Overseas Humanitarian, Disaster & Civic Aid..............           35,500           35,500                0
    Iraq Freedom Fund........................................        1,988,600        1,988,600                0
                                                              --------------------------------------------------
      Total Operation and Maintenance........................       40,369,623       39,879,623         -490,000
                                                              ==================================================
Procurement:
    Missile Procurement, Army................................            6,200                0           -6,200
    Procurement of WTCV, Army................................           46,000          101,600           55,600
    Other Procurement, Army..................................          930,687        1,250,287          319,600
    Aircraft Procurement, Navy...............................          128,600          158,600           30,000
    Other Procurement, Navy..................................           76,357           76,357                0
    Procurement, Marine Corps................................          123,397          123,397                0
    Aircraft Procurement, Air Force..........................           40,972           53,972           13,000
    Missile Procurement, Air Force...........................           20,450           20,450                0
    Other Procurement, Air Force.............................        3,441,006        3,418,006          -23,000
    Procurement, Defense-Wide................................          435,635          418,635          -17,000
                                                              --------------------------------------------------
      Total Procurement......................................        5,249,304        5,621,304          372,000
                                                              ==================================================
Research, Development, Test and Evaluation:
    RDT&E, Navy..............................................           34,000           34,000                0
    RDT&E, Air Force.........................................           39,070           39,070                0
    RDT&E, Defense-Wide......................................          265,817          195,817          -70,000
                                                              --------------------------------------------------
      Total Research, Development, Test and Evaluation.......          338,887          268,887          -70,000
                                                              ==================================================
Revolving and Management Funds:
    Defense Working Capital Funds............................          600,000          600,000                0
    National Defense Sealift Fund............................           24,000           24,000                0
                                                              --------------------------------------------------
      Total Revolving and Management Funds...................          624,000          624,000                0
                                                              ==================================================
Other Department of Defense Programs:
    Defense Health Program...................................          658,380          658,380                0
    Drug Interdiction & Counter-Drug Activities, Defense.....           73,000           73,000                0
                                                              --------------------------------------------------
      Total Other Department of Defense Programs.............          731,380          731,380                0
                                                              ==================================================
Related Agencies: Intelligence Community Management Account..           21,500           21,500                0
                                                              --------------------------------------------------
      Total Related Agencies.................................           21,500           21,500                0
                                                              ==================================================
General Provisions: Section 1109--Storm Damage...............                0          413,300          413,300
                                                              ==================================================
      Grand Total............................................       65,147,554       64,702,854         -440,700
----------------------------------------------------------------------------------------------------------------

                    Recovery From Natural Disasters

    The Committee bill includes a general provision that 
provides $413,300,000 in funding for Operation and Maintenance 
and Procurement accounts, only for the military services to 
accomplish recovery and repairs made necessary by recent 
natural disasters including Hurricane Isabel. The Committee has 
provided funding in this general provision for recovery and 
repair requirements at affected Army, Navy, Marine Corps, and 
Air Force bases in New Jersey, Delaware, Maryland, District of 
Columbia, Virginia, and North Carolina. These funds are 
allocated as follows:

Operation and Maintenance, Army.........................     $73,600,000
Operation and Maintenance, Navy.........................     126,400,000
Operation and Maintenance, Marine Corps.................       9,200,000
Operation and Maintenance, Air Force....................     201,900,000
Other Procurement, Air Force............................       2,200,000

                          Equipment Shortages

    The Committee notes the recent efforts the Department of 
Defense has made to address equipment shortages experienced by 
American soldiers in Iraq, Afghanistan and elsewhere. 
Unfortunately, many individuals and units in the active and 
reserve force continue to suffer from shortages in equipment 
that if provided would enhance their survivability and enable 
them to better complete their assigned missions. For instance, 
the Committee has learned that some active duty soldiers and 
reservists are spending as much as $650 out of pocket to buy 
Interceptor Body Armor vests and small arms protective insert 
plates to replace the Vietnam era flak vests issued when they 
arrive in Iraq. Also, the capability of currently fielded 
portable radio jammers does not provide an effective defense 
against remotely detonated explosives being used increasingly 
against American soldiers. With the continued rotation of 
active forces and the anticipatedactivation of National Guard 
Enhanced Separate Brigades to sustain present operating levels, these 
problems could become even more acute.
    The Committee finds it wholly unacceptable for American 
soldiers to be deployed to the Iraq or Afghanistan theaters 
with anything but the best equipment. It must be the Secretary 
of Defense's highest priority to eliminate shortages that, if 
not addressed, could cost soldiers their lives. As such, the 
Committee recommends significant increases in this bill to 
purchase protective body armor, improved portable radio 
frequency jammers, spare parts, and other critical items. 
Moreover, the Committee directs the Department and, in 
particular, the Army to fully fund requirements identified 
under the Soldier Enhancement Program, the Centralized Funding 
and Fielding activity, and other accounts designed to 
expeditiously field new equipment to soldiers. Of special 
interest, the Committee directs the Department to use funds 
approved in this measure to increase the availability of modern 
hydration systems to soldiers in the Iraq Theater.
    The Secretary of Defense is directed to submit quarterly 
update reports to the congressional defense committees, 
starting December 31, 2003, that identify significant soldier 
equipment, weapon system, or spare parts shortages in the Iraq 
and Afghanistan theaters of operations for all major active and 
reserve component units. These updates also should present the 
solutions and timetables for procuring and distributing 
equipment and parts to address any identified shortages.

           Assessment of Attacks on U.S. and Coalition Forces

    The Committee believes that the security of U.S. and 
coalition forces deployed in Iraq and Afghanistan and the 
success of the reconstruction efforts in both countries depend 
on a better understanding of the individuals or groups who are 
engaging in attacks on our forces. The Committee directs that 
within 60 days of enactment of this act, the Director of 
Central Intelligence shall submit a classified report to the 
House Permanent Select Committee on Intelligence, the Senate 
Select Committee on Intelligence, and the congressional defense 
committees, providing the intelligence community's assessment 
based on the best available intelligence of what individuals, 
groups, or organizations are involved in such attacks on U.S. 
armed forces, coalition forces, and United Nations personnel in 
Iraq and Afghanistan. This report should also provide a 
judgment on how these individuals or groups are being 
organized, led, and financed.

         Fiscal Year 2004 Appropriations Reporting Requirements

    The Committee recommendation for supplemental funding is 
based on the best estimates available. The supplemental budget 
request was submitted by the President prior to the beginning 
of fiscal year 2004, and is intended to fully fund known and 
urgent requirements that cannot reasonably be met through the 
use of existing funds. By promptly considering this request, 
the Committee seeks to ensure critical support for our military 
forces in Iraq, Afghanistan, and elsewhere, as well as 
stabilizing funding for critical maintenance, readiness 
training, and base operations support at home stations.
    The Committee expects that as the year progresses the 
Department of Defense and the military departments will be able 
to provide actual fiscal execution information, and better, 
more refined projections of expected costs. Accordingly, the 
Committee directs the Secretary of Defense to submit to the 
congressional defense committees, no later than January 31, 
April 30, and July 31, 2004, a comprehensive financial analysis 
and update for fiscal year 2004. This report will detail both 
actual and projected obligation of appropriations provided in 
this Act and the Department of Defense Appropriations Act, 
2004.

                          Classified Programs

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

                           MILITARY PERSONNEL

    The Committee recommends a total of $17,142,860,000 for the 
Military Personnel accounts, a decrease of $670,000,000 below 
the President's request. Funds are provided for the incremental 
costs of pay and allowances of the active duty and Reserve 
components for personnel deployed overseas in support of 
Operation Iraqi Freedom, Operation Enduring Freedom, and 
Operation Noble Eagle. Funds are also provided for costs to 
cover Guard and Reserve mobilization, and personnel related 
costs for additional military personnel maintained on active 
duty above the normal strength levels and affected by military 
stop loss programs.
    The Committee's recommendation transfers funds from 
Military Personnel, Army to Operation and Maintenance, Army to 
support contracting for civilian security guards to replace 
Reserve component soldiers that are performing such security 
duty for Army installations. The Army has advised the Committee 
that this action would allow the Army to have equal protection 
at their installations, while permitting the demobilization of 
approximately 7,000 to 10,000 reserve component soldiers. The 
adjustment to the Military Personnel accounts is shown below:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                   Request       Recommendation      request
----------------------------------------------------------------------------------------------------------------
Military Personnel, Army:
    Pay and Allowances.......................................       12,858,870       12,188,870         -670,000
----------------------------------------------------------------------------------------------------------------

                       OPERATION AND MAINTENANCE

    The Committee recommends $39,879,623,000 for the Operation 
and Maintenance accounts, $490,000,000 below the amount 
requested by the President. Funds are provided for personnel 
support such as temporary duty allowances and specialized 
clothing and equipment. Incremental military operations support 
funding provides for incremental flying hours, ship steaming 
days, ground operations, special airlift, spare parts, 
logistics support and fuel. Funding also provides for 
incremental requirements in communications, base operations 
support, and morale welfare and recreation support. Adjustments 
to the Operation and Maintenance accounts are shown below:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                   Request       Recommendation      request
----------------------------------------------------------------------------------------------------------------
Operation and Maintenance, Army:
    Depot Maintenance Transportation.........................                0           90,000           90,000
    Unit Level Maintenance...................................        1,900,000        2,010,000          110,000
    SAPI Plates & Unexploded Ordnance Clearance..............                0          251,200          251,200
    Contract Guards..........................................                0          500,000          500,000
    Theater Communications...................................                0           72,000           72,000
    Coalition Provisional Authority (Note: These funds have            858,000                0         -858,000
     been transferred to title II)...........................
Operation and Maintenance, Navy:
    Military Operations Support..............................        1,255,000        1,105,000         -150,000
    ATARS Insufficient Justification.........................           22,200                0          -22,200
Operation and Maintenance, Air Force:
    Military Operations Support..............................        5,220,400        4,870,400         -350,000
Operation and Maintenance, Defense-Wide:
    Train and Equip..........................................          200,000          100,000         -100,000
    Other (Reduction to classified programs).................        1,141,900        1,108,900          -33,000
    Emergency and extraordinary expenses.....................         [15,000]                0          -15,000
    DLA (DPAO technical correction)..........................                0           15,000          +15,000
----------------------------------------------------------------------------------------------------------------

    The Committee has provided additional funding over the 
request for Army unit level maintenance (commonly referred to 
as 10/20 maintenance), Army second destination transportation 
support for depot maintenance, and in support for theater-wide 
communications. In addition, the Committee has increased 
funding for Army units to purchase body armor Special Armor 
Plate Insert (SAPI) and to contract for the clearing of 
unexploded ordnance, two critical force protection items, and 
strongly encourages the Army to complete these requirements as 
soon as possible. The Committee's recommendations for Navy and 
Air Force operation support/OPTEMPO, are below the budget 
request as offsets to reduce risk in Army force protection and 
unit readiness. Finally, as discussed earlier in this report, 
the Committee transfers funding from Military Personnel, Army 
to Operation and Maintenance, Army to support contracting for 
civilian security guards to replace reserve component soldiers 
that are performing such security duty.

                                 ATARS

    The supplemental budget request included $22,200,000 for 
ATARS repairs and upgrades. The Committee recommendation 
includes no funding for ATARS. Supporting documentation 
inadequately addressed the requirement, providing the Committee 
with no clear understanding for the basis of the request.

                              PROCUREMENT

    The Committee recommends a total of $5,621,304,000 for 
various procurement appropriations. The following table 
provides a summary of the recommendation:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                   Request       Recommendation      request
----------------------------------------------------------------------------------------------------------------
Missile Procurement, Army....................................            6,200                0           -6,200
    Multiple Launch Rocket System............................            6,200                0           -6,200
Procurement of Weapons and Tracked Combat Vehicles, Army.....           46,000          101,600          +55,600
    Paladin..................................................            2,400                0           -2,400
    Rapid Equip Force........................................            6,000            6,000                0
    Rapid Fielding Initiative................................           26,200           26,200                0
    Enhanced Separate Brigades...............................           11,400           11,400                0
    APS-5 Replenishment......................................                0           58,000          +58,000
Other Procurement, Army......................................          930,687        1,250,287         +319,600
    Logistics Support Equipment..............................           30,500           30,500                0
    C2 Equipment.............................................           42,200           42,200                0
    Radio Frequency Identification Tags......................            3,400            3,400                0
    Technical Collection (Guardrail).........................            8,000            8,000                0
    Enhanced Separate Brigades...............................          122,500          122,500                0
    Up-Armored HMMWVs........................................          177,200          177,200                0
    Rapid Equip Force........................................           47,100           47,100                0
    Rapid Fielding Initiative................................           76,600           76,600                0
    Base Camp Housing Units..................................          344,687          344,687                0
    Mobile Search Devices....................................           12,600           12,600                0
    Basic Language Translation Service.......................            2,000            2,000                0
    Packbots.................................................            5,000            5,000                0
    Joint Tactical Terminals.................................           41,100           41,100                0
    Joint Communications Support Element.....................            7,500            7,500                0
    Classified...............................................           10,300           10,300                0
    APS-5 Replenishment......................................                0          190,600         +190,600
    Theater Stabilized Communications........................                0           83,000          +83,000
    Portable Radio Jammers...................................                0           46,000          +46,000
Aircraft Procurement, Navy...................................          128,600          158,600          +30,000
    E-2C Outer Wing Panels...................................            1,500            1,500                0
    Aircraft Spares..........................................           59,100           59,100                0
    EA-6B Outer Wing Panels..................................           55,000           70,000          +15,000
    EA-6B Wing Center Section................................                0           15,000          +15,000
    F-18 Equipment...........................................           13,000           13,000                0
Other Procurement, Navy......................................           76,357           76,357                0
    C2 Equipment.............................................            5,800            5,800                0
    OPN Spares...............................................           27,200           27,200                0
    Explosive Ordnance Disposal Equipment....................           24,957           24,957                0
    Medical Support Equipment--Fleet Hospitals...............           13,200           13,200                0
    Global Broadcast Service (Shipboard).....................            4,500            4,500                0
    Classified Program.......................................              700              700                0
Procurement, Marine Corps....................................          123,397          123,397                0
    M88A2 Recovery Vehicle...................................            8,300            8,300                0
    MK48 Light Armored Vehicle (LVS) Mod.....................           13,100           13,100                0
    Light Armored Vehicle....................................           23,200           23,200                0
    AAV Reliability, Availability, Maintainability Upgrade...           78,797           78,797                0
Aircraft Procurement, Air Force..............................           40,972           53,972          +13,000
    War Consumables Recap....................................           35,702           35,702                0
    Technical Collection (RC-135 and U2).....................                0           13,000          +13,000
    Aircraft Common Support Equipment........................            5,270            5,270                0
Missile Procurement, Air Force...............................           20,450           20,450                0
    Predator (Hellfire Missiles).............................            4,850            4,850                0
    Classified Programs......................................           15,600           15,600                0
Other Procurement, Air Force.................................        3,441,006        3,418,006          -23,000
    Theater Deployable Communications........................           38,500           38,500                0
    Other Logistics Equipment................................           68,700           68,700                0
    Medical/Dental Equipment Losses..........................           13,665           13,665                0
    CPA Counter Intelligence Support.........................            3,810            3,810                0
    Replace Theater Communications...........................           85,000           85,000                0
    Aircraft Refueling Vehicles..............................           25,000           25,000                0
    Support Equipment........................................           20,306           20,306                0
    All-purpose Remote Transport System......................            1,500            1,500                0
    Technical Collection (RC-135 and U2).....................           23,000                0          -23,000
    Red Horse Reconstitution.................................           25,900           25,900                0
    Diego Garcia Vehicles....................................           14,625           14,625                0
    Classified Programs......................................        3,121,000        3,121,000                0
Procurement, Defense-Wide....................................          435,635          418,635          -17,000
    MC-130P Quick Engine Change Kits (SOCOM).................           13,800           13,800                0
    MH-53 Gearbox (SOCOM)....................................            7,700            7,700                0
    Critical C4I Equipment (SOCOM)...........................           36,600           36,600                0
    SOF Soldier Systems (SOCOM)..............................           23,800           23,800                0
    SOF Ammunition (SOCOM)...................................           23,900           23,900                0
    SOF Intelligence Systems (SOCOM).........................           13,100           13,100                0
    Psychological operations (PSYOP) Equipment (SOCOM).......           14,800           14,800                0
    Target Tracking and Locating Devices (SOCOM).............            2,700            2,700                0
    Inflatable Antennas......................................            6,500            6,500                0
    CENTRIX..................................................           17,700           17,700                0
    Information Assurance....................................           16,200           16,200                0
    Worldwide Base Stations..................................            6,000            6,000                0
    NSC Date Replication (DISA)..............................            3,900            3,900                0
    Iraq Communications Backbone (DISA)......................            6,100            6,100                0
    CENTCOM Global C2 System (GCCS) Joint Hardware (DISA)....            1,500            1,500                0
    Improved Imagery Capability (NIMA).......................           21,600           21,600                0
    Decontamination Equipment................................            8,000            8,000                0
    Collective Protection....................................           17,535           17,535                0
    Classified Programs......................................          194,200          177,200          -17,000
                                                              --------------------------------------------------
      Total, Procurement.....................................        5,249,304        5,621,304         +372,000
----------------------------------------------------------------------------------------------------------------

        PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY


                       Army Prepositioned Stocks

    The Committee recommends an increase of $248,600,000 above 
the supplemental request for the purpose of replenishing Army 
prepositioned stocks, specifically material and equipment from 
APS-5 which was lost orwashed-out during the conduct of 
Operation Iraqi Freedom. Of this amount, $58,000,000 is provided in 
Procurement of Weapons and Tracked Combat Vehicles, Army, and 
$190,600,000 is provided in Other Procurement, Army.

                        OTHER PROCUREMENT, ARMY


              Theater Stabilized Communications Equipment

    The Committee is aware that the Army has an unfunded 
requirement to replace organic tactical communications 
equipment with equivalent, commercially available equipment to 
provide for theater communications requirements. Accordingly, 
the Committee recommends an increase of $155,000,000 above the 
supplemental request for Theater Stabilized Communications. Of 
this amount, $72,000,000 is provided in Operation and 
Maintenance, Army, and $83,000,000 is provided in Other 
Procurement, Army.

                       AIRCRAFT PROCUREMENT, NAVY


                       EA-6B Repair Requirements

    The Committee recommends an increase of $30,000,000 for EA-
6B repair requirements. The Committee understands the EA-6B 
aircraft has significantly increased its operational tempo in 
support of Operation Iraqi Freedom. As a result, the aircraft 
is experiencing increased fatigue cracking in the outer wing 
panels and the wing center section. Additional funds to replace 
the wing panels and accelerate replacement of the wing center 
section are required to preclude aircraft grounding and flight 
restrictions.

                    AIRCRAFT PROCUREMENT, AIR FORCE


                          Technical Collection

    The Committee recommends $13,000,000 for technical 
collection capabilities. The request erroneously included these 
funds in the Other Procurement, Air Force appropriation. Of 
this amount, $8,000,000 is provided for improvements to the U-2 
and $5,000,000 is provided for tracking capabilities for the 
RC-135.
    The Committee directs that none of the funds provided for 
the U-2 program may be obligated or expended until the Air 
Force submits the January 15, 2004 report on the U-2 as 
requested by Congress in the report (House Report 108-283) 
which accompanies the Department of Defense Appropriations Act, 
2004.

                      OTHER PROCUREMENT, AIR FORCE


                          Technical Collection

    The Committee recommendation for ``Technical Collection'' 
is found in the Aircraft Procurement, Air Force appropriation.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The Committee recommends a total of $268,887,000 for 
various Research, Development, Test and Evaluation 
appropriations. The following table provides a summary of the 
recommendation:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                   Request       Recommendation      request
----------------------------------------------------------------------------------------------------------------
Research, Development, Test and Evaluation, Navy.............           34,000           34,000                0
    Classified Programs......................................           34,000           34,000                0
Research, Development, Test and Evaluation, Air Force........           39,070           39,070                0
    Classified Programs......................................           39,070           39,070                0
Research, Development, Test and Evaluation, Defense-Wide.....          265,817          195,817          -70,000
    Classified Programs......................................          265,817          195,817          -70,000
                                                              --------------------------------------------------
      Total, Research, Development, Test and Evaluation......          338,887          268,887          -70,000
----------------------------------------------------------------------------------------------------------------

                     REVOLVING AND MANAGEMENT FUNDS


                     DEFENSE WORKING CAPITAL FUNDS

    The Committee recommends $600,000,000 for the Defense 
Working Capital Funds to cover unforeseen fuel price increases, 
the amount requested by the President.

                     NATIONAL DEFENSE SEALIFT FUND

    The Committee recommends $24,000,000 for the National 
Defense Sealift Fund, the amount requested by the President.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS


                         DEFENSE HEALTH PROGRAM

    The Committee recommends $658,380,000 for Defense Health 
Program operation and maintenance costs, the amount requested 
by the President.

         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

    The Committee recommends $73,000,000 for Drug Interdiction 
and Counter-Drug Activities, Defense, the amount requested by 
the President. The Committee strongly supports Department of 
Defense participation in attacking the Afghan drug problem, 
which generates funds for terrorists and extremists not only in 
Afghanistan but also throughout the region. The Committee is 
concerned, however, that plans to properly utilize these funds 
are still being developed and that justification material 
presented to the Congress lacks specificity. The Committee 
therefore directs that none of the funds provided in this 
account be obligated or expended until the Secretary of Defense 
provides the congressional defense committees with a report 
which at a minimum outlines the goals and objectives of this 
program; the extent to which the Department will partner with 
other DoD entities, other Federal Agencies, and foreign 
military and law enforcement agencies; an accounting of the 
appropriations to which these funds will be transferred; and a 
detailed analysis of the purposes for which these funds are to 
be used.

                            RELATED AGENCIES


               INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

    The Committee recommends $21,500,000 for the Intelligence 
Community Management Account, the amount requested by the 
President.

                    GENERAL PROVISIONS--THIS CHAPTER

    Section 1101 of the Committee bill amends a new general 
provision, proposed in the supplemental request, which provides 
the Secretary of Defense with $3,000,000,000 of transfer 
authority for funds provided in this chapter for the Department 
of Defense.
    Section 1102 of the Committee bill includes a new general 
provision, proposed in the supplemental request, which provides 
that funds appropriated in this Act for intelligence activities 
are deemed to be specifically authorized by the Congress.
    Section 1103 of the Committee bill includes a new general 
provision, proposed in the supplemental request, which 
continues existing authorities, which authorizes the payment of 
per diem for travel of family members of military personnel who 
are ill or injured as a result of service on active duty, and 
also authorizes the Department to provide civilian clothing for 
service members to wear during their hospital stay.
    Section 1104 of the Committee bill amends a new general 
provision, proposed in the supplemental request, which 
continues the increased monthly rates of Imminent Danger Pay 
and Family Separation Allowances through September 30, 2004.
    Section 1105 of the Committee bill amends a new general 
provision, proposed in the supplemental request, which allows 
available appropriations in the ``Defense Emergency Response 
Fund'' to be charged to any current appropriations account of 
the Department of Defense for the same purpose.
    Section 1106 of the Committee bill amends a new general 
provision, proposed in the supplemental request, which allows 
the Department to use operation and maintenance funds made 
available in this Act to provide supplies, services, 
transportation, and other logistical support to coalition 
forces supporting operations in Iraq.
    Section 1107 of the Committee bill amends a new general 
provision, proposed in the supplemental request, which allows 
the Department to use not to exceed $100,000,000 of the funds 
made available in this Act under ``Operation and Maintenance, 
Defense-Wide'' for assistance to the new militaries of Iraq and 
Afghanistan, and provides that the Secretary of Defense shall 
notify the congressional defense committees not less than 15 
days before providing such assistance.
    Section 1108 of the Committee bill includes a new general 
provision which limits the use of procurement and research, 
development, test and evaluation funds.
    Section 1109 of the Committee bill includes a new general 
provision which appropriates $413,300,000 to various 
appropriations accounts for repairs resulting from natural 
disasters, as discussed earlier in this report.
    Section 1110 of the Committee bill includes a new general 
provision which allows the Department of Defense to use not to 
exceed $180,000,000 of the funds made available in this Act for 
operation and maintenance for the Commander's Emergency 
Response Program in Iraq, and to establish a similar program 
for use in Afghanistan.
    Section 1111 of the Committee bill includes a new general 
provision which directs the Secretary of Defense to submit, 
within thirty days of enactment of this Act, a report 
describing an Analysis of Alternatives for replacing the 
capabilities of the existing Air Force KC-135 fleet.

                               CHAPTER 2


                    DEPARTMENT OF HOMELAND SECURITY


                       United States Coast Guard


                           OPERATING EXPENSES

    The Committee recommends an additional $23,183,000 for 
``Operating Expenses'' to repair damages the Coast Guard 
incurred during Hurricane Isabel. The entire amount is 
designated as a contingent emergency appropriation.

                               CHAPTER 3


                         DEPARTMENT OF DEFENSE


                         MILITARY CONSTRUCTION


                      Military Construction, Army

    The Committee recommends $185,100,000 for Military 
Construction, Army, instead of $119,900,000 as requested by the 
President. The recommendation includes $119,900,000, as 
requested, to finance various military construction projects in 
support of U.S. troops in Iraq. These projects are as 
follows:''

------------------------------------------------------------------------
         Location/facility            Project description       Cost
------------------------------------------------------------------------
Iraq: Baghdad International Airport  Helicopter Pads and      $3,300,000
                                      Aviation Taxiway.
Iraq: Baghdad International Airport  Entry Control Points.     4,500,000
Iraq: West Baghdad International     Power Plant and          18,000,000
 Airport.                             Electrical
                                      Distribution.
Iraq: Balad Airfield...............  Theater-wide Postal       7,000,000
                                      Distribution
                                      Facility.
Iraq: Balad Airfield...............  Power Plant and          16,000,000
                                      Electrical
                                      Distribution.
Iraq: Balad........................  Base Camp Water           9,800,000
                                      Treatment Plant.
Iraq: Balad........................  Base Camp Wastewater      6,000,000
                                      Treatment Plant.
Iraq: Baghdad--Victory Base........  Power Plant..........     7,600,000
Iraq: Baghdad--Radwaniya Palace      Sensitive                 6,000,000
 Complex.                             Compartmented
                                      Information Facility.
Iraq: Baghdad--Radwaniya Palace      Joint Operations          3,500,000
 Complex.                             Center.
Iraq: Baghdad--Radwaniya Palace      Training Facility....     2,200,000
 Complex.
Iraq: Taji Military Complex........  Power Plant and          16,500,000
                                      Electrical
                                      Distribution.
Iraq: Tikrit-Camp Speicher.........  Power Plant and          15,500,000
                                      Electrical
                                      Distribution.
Worldwide Various..................  Planning and Design..     4,000,000
                                                           -------------
      Total........................  .....................   119,900,000
------------------------------------------------------------------------

    The recommendation also includes $65,200,000, not requested 
by the President, to repair facilities damaged by Hurricane 
Isabel at Fort Monroe, Virginia. Projects included in the 
recommendation are as follows:

------------------------------------------------------------------------
         Location/facility            Project description       Cost
------------------------------------------------------------------------
Virginia: Fort Monroe..............  Seawall and Pier        $26,400,000
                                      Repair/Improvements.
Virginia: Fort Monroe..............  Road/Revetment Repair/    3,900,000
                                      Improvements.
Virginia: Fort Monroe..............  Utilities Repair.....     8,500,000
Virginia: Fort Monroe..............  Unspecified Minor        23,000,000
                                      Construction.
Worldwide Various..................  Planning and Design..     3,400,000
                                                           -------------
      Total........................  .....................    65,200,000
------------------------------------------------------------------------

                      Military Construction, Navy

    The Committee recommends $45,530,000 for Military 
Construction, Navy. These funds, not requested by the 
President, are for facilities damaged beyond repair as a result 
of Hurricane Isabel. The recommendation includes $40,920,000 to 
replace the central chilled water plant at the United States 
Naval Academy, Maryland, and $4,610,000 to replace Building 
3104, Lucas Hall, at Quantico, Virginia.

                    Military Construction, Air Force

    The Committee recommends $292,550,000 for Military 
Construction, Air Force, as requested by the President. This 
funding provides resources for various construction projects in 
support of Operation Iraqi Freedom and Operation Enduring 
Freedom, as follows:

------------------------------------------------------------------------
         Location/facility            Project description       Cost
------------------------------------------------------------------------
Delaware: Dover Air Force Base.....  Airfreight Terminal..   $56,000,000
Afghanistan: Bagram Air Base.......  Aircraft Runway          48,000,000
                                      Repair.
Diego Garcia: Diego Garcia.........  Communications Remote     3,450,000
                                      Switch Facility.
Iraq: Balad Air Base...............  Aircraft Parking Ramp    18,000,000
Italy: Camp Darby..................  Munitions Maintenance     5,000,000
                                      Storage and Wash Pad.
Qatar: Al Udeid Air Base...........  Expand Tactical/         20,000,000
                                      Strategic Airlift
                                      Ramps.
Qatar: Al Udeid Air Base...........  Refueler Ramp and        40,000,000
                                      Hydrant System.
United Arab Emirates: Al Dhafra Air  Aircraft Parking         47,000,000
 Base.                                Apron and Hydrant
                                      Fuel System.
United Arab Emirates: Al Dhafra Air  Temporary Cantonment     15,300,000
 Base.                                Area.
Worldwide Classified...............  Classified Project...    17,500,000
Worldwide Various..................  Planning and Design..    22,300,000
                                                           -------------
      Total........................  .....................   292,550,000
------------------------------------------------------------------------

             Family Housing Operation and Maintenance, Army

    The Committee recommends $8,151,000 for Family Housing 
Operation and Maintenance, Army. Though not requested by the 
President, the Committee provides these funds to repair family 
housing units damages by Hurricane Isabel at Fort Monroe and 
Fort Lee, Virginia.

    Family Housing Operation and Maintenance, Navy and Marine Corps

    The Committee recommends $6,280,000 for Family Housing 
Operation and Maintenance, Navy and Marine Corps. Though not 
requested by the President, the Committee provides these funds 
to repair family housing units damaged by Hurricane Isabel at 
various locations in Virginia and North Carolina.

          Family Housing Operation and Maintenance, Air Force

    The Committee recommends $6,981,000 for Family Housing 
Operation and Maintenance, Air Force. Though not requested by 
the President, the Committee provides these funds to repair 
family housing units damaged by Hurricane Isabel at Langley Air 
Force Base, Virginia.

                    GENERAL PROVISION--THIS CHAPTER

    Section 1301 authorizes the Secretary of Defense to use 
operation and maintenance funds for unforeseen military 
construction requirements in support of Operation Iraqi Freedom 
or the Global War on Terrorism. This language was provided to 
streamline the process for approving operation and maintenance 
funds for emerging construction requirements.

    TITLE II--IRAQ AND AFGHANISTAN RECONSTRUCTION AND INTERNATIONAL 
                               ASSISTANCE


                               CHAPTER 1


                         DEPARTMENT OF JUSTICE


                            Legal Activities


                        General Legal Activities

    The Committee recommends $15,000,000 for ``Salaries and 
Expenses, General Legal Activities,'' for additional Civil 
Division expenses related to the administration of the 
September 11th Victims Compensation Program.

                 DEPARTMENT OF STATE AND RELATED AGENCY


                          DEPARTMENT OF STATE


                   Administration of Foreign Affairs


                    Diplomatic and Consular Programs


                         (INCLUDING RESCISSION)

    The Committee recommends $156,300,000 for costs related to 
increased diplomatic and border security, and to opening a 
mission in Iraq. The recommendation includes $109,500,000 for 
requirements related to the provision of consular services; 
$11,000,000 for increased security measures in Afghanistan; and 
$35,800,000 for costs associated with the reestablishment of a 
diplomatic mission in Iraq. The recommendation rescinds 
$35,800,000 provided under Public Law 108-11.

            Embassy Security, Construction, and Maintenance

    The Committee recommends $43,900,000 for the costs of 
establishing a temporary embassy annex compound in Kabul, 
Afghanistan, to support embassy surge staffing requirements 
associated with the acceleration of assistance activities.

           Emergencies in the Diplomatic and Consular Service


                     (INCLUDING TRANSFER OF FUNDS)

    The Committee recommends $50,000,000 under this heading for 
anticipated costs of terrorism rewards. The Committee 
recommendation includes language allowing funds under this 
account to be transferred to, and merged with, the Diplomatic 
and Consular Programs account to maintain funding levels for 
the fiscal year 2004 Border Security program.

                      International Organizations


        CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

    The Committee recommends $245,000,000 for assessed costs of 
United Nations peacekeeping in Liberia.

                             Related Agency


                    Broadcasting Board of Governors


                 INTERNATIONAL BROADCASTING OPERATIONS

    The Committee recommends $40,000,000 to expand broadcasting 
efforts to Iraq, including the initiation of Middle East 
Television Network broadcasting to Iraq.

                    GENERAL PROVISION--THIS CHAPTER

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

                               CHAPTER 2


                     BILATERAL ECONOMIC ASSISTANCE


                  Funds Appropriated to the President


           United States Agency for International Development


   Operating Expenses of the United States Agency for International 
                              Development

    The Committee recommends $40,000,000 for ``Operating 
Expenses of the United States Agency for International 
Development'', as requested by the President. The Committee has 
included language reserving these funds for support of relief 
and reconstruction in Afghanistan, including up to $13,000,000 
for interim facilities required by the United States Agency for 
International Development in an expanded Embassy compound or 
elsewhere in Kabul. It is the Committee's intention that 
Embassy facilities and vehicles funded by USAID be used 
primarily by USAID personnel, and to be available for other 
agencies only with the prior written concurrence of the USAID 
mission director in Kabul and, when feasible, on a reimbursable 
basis.
    Should U.S. military air transport remain scarce or 
unavailable to support reconstruction in Afghanistan, and to 
the extent required by security conditions in the field, a 
portion of this appropriation may be used for dedicated 
contract air service within Afghanistan and access neighboring 
countries. The Committee expects the Department of State 
Coordinator for Afghan Assistance and USAID to consult with it 
prior to obligating funds for this purpose.
    The Committee provides for operating expenses of USAID in 
Iraq elsewhere in this Chapter.

                  Other Bilateral Economic Assistance


                  Iraq Relief and Reconstruction Fund


                     (INCLUDING TRANSFERS OF FUNDS)

    The Committee recommends $18,649,000,000, to remain 
available until September 30, 2005, for the ``Iraq Relief and 
Reconstruction Fund'' (the Fund). This figure represents a 
reduction of $1,655,000,000 below the request and an increase 
of $16,174,000,000 above the level provided in the fiscal year 
2003 Emergency Wartime Supplemental Appropriations Act when 
this account was created. The supplemental request proposed an 
appropriation of $20,304,000,000 to remain available until 
expended.
    The Committee recommended bill language provides 
allocations, as requested, for functional areas, such as health 
care, although some allocation categories have been modified 
for clarity. For example, the separate categories of public 
works and water resources have been combined into one category 
named ``water resources and sanitation.'' The Committee has not 
included requested language that allows unlimited funding 
reallocations or language that allows transfers to be made to 
any federal government activity. Instead, the Committee has 
included language allowing any allocation category to be 
reduced by up to 10 percent or increased by up to 20 percent. 
Such transfers, if necessary, would be made subject to the 
standard notification procedures of the Committees on 
Appropriations. The Committee has included language, not 
proposed in the request, that provides for an annual spending 
plan for reconstruction programs for these allocations, 
including project-by-project detail. The plan must specify 
which United States agency (and relevant partners if 
applicable) is responsible for implementation of the projects. 
This plan is required to be submitted to the Committees on 
Appropriations not later than January 1, 2004, and is to be 
updated every 180 days thereafter.
    The Committee has reinstated bill language, currently in 
the fiscal year 2003 Iraq Relief and Reconstruction Fund but 
not included in the request, that specifies agencies that may 
receive apportionment from the Fund. Consistent with previous 
language, the Committee has again listed the Department of 
Defense, the Department of Health and Human Services, the 
Department of State, the Department of Treasury and the United 
States Agency for International Development. The Committee 
recommends adding the Coalition Provisional Authority (CPA) in 
Iraq to this list. The Committee has included bill language 
providing that up to 1 percent of the total appropriated for 
the Fund may be transferred to ``Operating Expenses of the 
Coalition Provisional Authority'' as well as bill language 
providing not less than $35,000,000 for the administrative 
expenses of the Department of State Bureau of International 
Narcotics and Law Enforcement Affairs and the United States 
Agency for International Development. The Committee has 
included new language that the Coalition Provisional Authority 
shall work, in conjunction with relevant Iraqi officials, to 
ensure that a new Iraqi constitution preserves full rights to 
religious freedom.
    The reconstruction of Iraq is among the most important 
issues affecting United States foreign policy and security. The 
creation of a free, democratic, and economically prosperous 
Iraq is important to U.S. security, to winning the war on 
terrorism, and it is essential to stability and peace in the 
Middle East.
    Having won its military objectives in Iraq, the United 
States is faced with what may be an even more daunting 
challenge. Reconstructing an Iraq that has suffered from 
decades of tyranny, cruelty, mismanagement, and under-
investment is a massive undertaking. The deplorable condition 
of Iraq's basic infrastructure and the scope of reconstruction 
requirements have only fully come to light since the triumph of 
United States and United Kingdom Armed Forces. Holding free 
elections and empowering locally elected officials, providing 
dependable power, potable water, and access to health care, and 
creating a vibrant private sector--all present significant 
change and transformation of Iraqi society.
    The Committee strongly supports the efforts of the 
Administration and the CPA to reconstruct Iraq. The programs 
supported by the funding recommended in the Iraq Relief and 
Reconstruction Fund will make a substantial difference in the 
lives of the Iraqi people. Basic services, such as electricity, 
clean water, sewage treatment and disposal are urgently needed 
to give Iraqis hope for a better future. The creation of 
professional civilian police forces, border security forces, 
and a new Iraqi National Army is critically important to 
reducing violence, maintaining security and reducing reliance 
on American military personnel. As CENTCOM Commander General 
John Abizaid testified before the Committee on September 24, 
2003, regarding the current request for reconstruction:

          There is no strictly military solution to the 
        problems we face * * * It requires that we move 
        together on the political front, the economic front, on 
        the reconstruction front in a manner that is 
        synchronized and coordinated. If we don't do that, I do 
        not believe we can be successful. So you can pay the 
        military to stay there, but you are only paying us to 
        stay forever.

    The Committee recommendation of $18,649,000,000 represents 
a bold and balanced response to an urgent situation. The 
Committee assigns highest priority to security, and basic 
infrastructure such as electric power, water resources and 
sanitation, energy production and distribution, and health 
care. The Committee has not recommended funding programs that 
are not executable, are lower priority, or will likely be 
supported by other international donors and organizations such 
as the World Bank. The Committee is also concerned that 
sufficient attention should be given to the follow-on, 
recurring costs that will be incurred in future years as a 
result of programs funded under this Act.
    The Committee recommends $3,243,000,000 for security and 
law enforcement, $50,000,000 less than the amount requested. 
Included in the recommendation is $950,000,000 for recruiting, 
training and equipping police forces in Iraq and providing a 
police training center with international trainers to improve 
professionalism and policing skills. The Committee 
recommendation provides the foundation for a modern civilian 
police force that respects the rule of law and human rights. 
$217,000,000 is provided to support border enforcement and 
facilities protection services. Similarly, the recommendation 
includes $2,076,000,000 for training, equipping, deploying and 
sustaining the new Iraqi Army and Civil Defense Corps. The 
Iraqi Army is being rebuilt to a force structure of 40,000 
personnel in 9 brigades (27 battalions) by August 2004. The 
Committee has not included$50,000,000 requested for buildings, 
equipment, and vehicles in support of Iraq's traffic police.
    The Committee recommends $1,318,000,000 for Justice, Public 
Safety and Civil Society Infrastructure, $525,000,000 less than 
requested for programs making up this category.
    The Committee recommendation supports the creation of a 
professional justice system and judiciary, and it supports 
redress of the crimes perpetrated against the Iraqi people by 
Saddam Hussein and his regime. The recommendation provides 
$100,000,000 for investigations into crimes against humanity, 
such as the mass killings of innocent Iraqi civilians. The 
Committee also has provided $100,000,000 to support Iraqis who 
help Coalition forces fight terrorism and criminals through 
creation of a witness protection program. The Committee 
recommends $599,000,000 for public safety facilities, fire 
services, mine action, civil defense services, public safety 
facilities, and public safety training--a level that is 
$175,000,000 less than requested for this array of programs. 
The Committee supports these programs but does not believe the 
request can be fully executed by 2005. The Committee provides 
$100,000,000 for the National Security Communications Network, 
one of many networks requested by the CPA, which is $50,000,000 
less than requested.
    The Committee recommends $209,000,000 for prison and 
detention facilities, a reduction of $300,000,000 from the 
amount requested. The Committee recommendation provides 
$99,000,000 for reconstruction and modernization of 26 adult 
and juvenile detention and prison facilities, which should 
increase capacity to 19,700 beds. The Committee also has 
included $100,000,000 for a new prison, approximately the 
amount needed to build a medium security prison in the United 
States. The Committee notes that about half the cost of prison 
construction is attributable to labor, and the cost of manpower 
in Iraq is significantly below the prevailing rates in the 
United States. Accordingly, the Committee does not approve the 
$400,000,000 requested to build two prisons at $50,000 per bed 
as proposed by the CPA.
    The Committee recommends $5,560,000,000 to repair, 
rehabilitate and procure electric generation and distribution 
infrastructure in Iraq. The recommendation is $115,000,000 less 
than the amount requested. The Committee notes that United 
States Agency for International Development, working in support 
of the CPA, already has made significant, intensive efforts to 
repair electric power production and transmission capability. 
Nevertheless, Iraq's electric generating capacity is around 
3,600 megawatts, still below pre-conflict levels. The Committee 
recommendation should enable Iraq to increase electric power 
production to 7,000 megawatts by 2005. Among other investments 
in this sector, the Committee recommendation provides for: (1) 
rehabilitation of existing power stations and provision of 
spare parts; (2) installation of new gas turbine power 
stations, and (3) construction of new thermal power stations. 
The Committee has not recommended $25,000,000 which the request 
describes as necessary for ``institution strengthening'' for 
providing consultants, developing a master plan for continued 
development, and rehabilitating buildings. This request 
duplicates a number of other similar requests included in the 
overall submission.
    The Committee recommends $2,100,000,000, the same as 
requested, for rebuilding Iraq's oil infrastructure and 
procurement of emergency stocks. CPA's strategy for Iraq's 
economic viability and Iraq's ability to finance its own 
government and governmental programs, including the various 
security forces mentioned earlier in this section, are 
dependent on the petroleum industry's recovery and growth. The 
recommendation provides for continued investment in Iraq's oil 
infrastructure and oil production and refinement capacity. It 
builds upon progress that has been made since April 2003. 
Included is $900,000,000, as requested, for procurement and 
distribution of refined products such as kerosene, used for 
heating, and Liquefied Petroleum Gas used by many Iraqis for 
cooking. These funds will enable the CPA to provide these 
products and help sustain the population through the upcoming 
winter until in-country refining capacity and stocks recover.
    The Committee recommends $4,332,000,000 for water resources 
and sanitation, $253,000,000 below the request. Included in the 
recommendation is $2,830,000,000, the amount requested, to 
increase access to potable water across urban and rural areas 
in Iraq. $30,000,000 is recommended to reduce water losses by 
repairing water distribution networks, which should reduce 
water loss from 60 percent to 40 percent. $697,000,000, as 
requested, is included for increasing access to sewage services 
for Iraq's population. Current waste water treatment across 
Iraq is estimated to cover only 6 percent of the population. 
The treatment of polluted wastewater also is a health issue; 
these improvements are needed to combat disease and stem Iraq's 
high child mortality rate. Therecommended level should enable 
almost one million Iraqis to gain access to wastewater treatment 
services.
    Also included in the recommendation is $775,000,000 for 
water resource projects, such as irrigation projects, pumping 
stations, dam repair and rehabilitation, and flushing of 
polluted channels in Basra.
    The Committee does not recommend $153,000,000 requested for 
improving solid waste management programs, including the 
procurement of 40 trash trucks at $50,000 each. Solid waste 
disposal and management are important issues. However, the 
Committee notes that there is no shortage of vehicles in Iraq 
for hauling garbage, and the creation of new landfills and 
recycling programs/plants is not a problem that must proceed in 
this first year of reconstruction.
    The Committee recommendation does not provide $100,000,000 
for environmental restoration projects. The Committee believes 
these marsh restoration projects have great merit both 
environmentally and politically, but the $100,000,000 request 
is likely a small part of the total cost of restoring and 
significantly restructuring the water flows in these areas. 
Further, these projects are among those most likely to be 
funded by other international donors.
    The Committee recommendation provides $500,000,000 for 
transportation and communications projects, $335,000,000 below 
the supplemental request. The Committee recommendation provides 
$45,000,000 to complete the modernization of the Port of Um 
Qasir, and assigns priority to investments needed for aviation 
safety at Basra International, Baghdad International, and other 
airports in Iraq. The Committee supports reopening of Basra 
International Airport on a priority basis.
    The Committee questions a number of projects proposed in 
this category of the request, such as the need to build parking 
lots and ``cosmetic improvements'' at airports. The Committee 
has not provided $4,000,000 requested for a nationwide 
telephone numbering scheme, $9,000,000 for postal information 
architecture and zip codes and $10,000,000 to modernize the 
business practices of the Iraqi television and radio industry. 
The Committee questions whether the U.S. government--versus the 
private sector--must fund the numerous telecommunications 
projects and information technology improvements requested.
    The Committee recommends $370,000,000 for roads, bridges 
and construction, $100,000,000 below the level requested. The 
recommendation includes $130,000,000 for public buildings 
supporting Iraqi Ministries, minor construction and 
refurbishment projects. $240,000,000 is recommended for repair 
and modernization of roads and bridges, including railroad 
bridges. The Committee recommendation does not include the 
$100,000,000 requested by the CPA to build seven housing 
communities, totaling 3,528 housing units, a place of worship 
and other community facilities.
    The Committee recommends $793,000,000 for health care 
programs, $57,000,000 below the supplemental request. The 
Committee recommendation provides $493,000,000, $100,000,000 
more than requested, to refurbish and modernize medical 
clinics, primary health care services, and hospitals throughout 
Iraq. The Committee recommendation will allow the 
rehabilitation of all 240 hospitals, 5 regional and maternal 
and pediatric referral centers, and 1,000 of the nation's 1,200 
primary health care clinics. The Committee recommendation 
provides $300,000,000 as requested to repair and procure 
medical equipment for Iraq's hospitals and health care clinics.
    The Committee recommendation does not provide $150,000,000 
to initiate a new $500,000,000 to $700,000,000 children's 
hospital in Basra. The Committee recommendation does not 
provide an additional $7,000,000 to facilitate partnerships 
between American and Iraqi health care organizations and 
centers. The Committee strongly supports such partnerships and 
believes that they can be undertaken when security permits 
without this additional federal funding.
    The Committee recommends $153,000,000 for the private 
sector development function, $200,000,000 less than requested. 
The Committee recommendation supports on-the-job training 
programs, and computer literacy training, vocational training 
and English language training. In connection with this request, 
the Committee recommends that the CPA examine the successful 
computer literacy program that the Kingdom of Jordan has 
developed, including the successful ``NetCorps'' program, which 
brings the Internet and computer training to rural Jordanian 
communities.
    The Committee has not provided $200,000,000 to create an 
American-Iraqi Enterprise Fund. The Committee believes that it 
would be premature to establish a fund at this time and notes 
that the conditions that promoted the unique success of the 
Polish-American Enterprise Fund do not exist in Iraq. The 
Committee recommends, to avoid duplication, any future 
enterprise fund in Iraq should be coordinated, if not overseen, 
by the Department of State's Middle East Partnership Initiative 
(which is considering an enterprise fund for the Middle East 
and North Africa).
    The Committee recommends $280,000,000 for education, 
refugees, human rights, democracy, and governance programs. The 
recommended funding level is $20,000,000 below the request. The 
Committee recommendation provides $95,000,000 for migration and 
refugee assistance, $30,000,000 for resolving property 
ownership disputes, and $30,000,000 for helping Iraq create a 
modern banking system. The recommendation provides $15,000,000 
for: (1) research and documentation on atrocities conducted by 
Saddam Hussein; (2) funding to strengthen local capacity on 
exhumations and family assistance, and (3) support of the Human 
Rights Ministry. Finally, $10,000,000 is recommended to support 
women's programs, $10,000,000 for civic education and youth 
programs, and $90,000,000 for education. The recommendation 
does not provide $90,000,000 requested to provide Public 
Information Centers in Iraq's 266 municipalities, and 
$20,000,000 in catch-up business training, a four-week course 
at $10,000 per pupil. The Committee believes that effective 
business training can be provided at much lower cost, such as a 
number of successful USAID programs operated in Southeastern 
Europe.
    The Committee believes that restoration of the agricultural 
sector is absolutely essential for economic recovery in Iraq. 
Increased domestic Iraqi food production, processing, and 
marketing would greatly improve employment and self-
sufficiency, and would decrease reliance on international food 
aid and commercial importation of commodities. Therefore, the 
Committee supports increased efforts through the Coalition 
Provisional Authority in support of training and outreach 
efforts to benefit the Iraqi domestic agricultural sector.
    With respect to the bill language in the Fund regarding 
religious freedom, the Committee expects that the President 
will report to the appropriate Committees of the Congress, on 
efforts by the CPA and relevant Iraqi officials to ensure that 
the Iraqi constitution preserves religious freedom.

       Operating Expenses of the Coalition Provisional Authority

    The Committee recommends $858,000,000 for ``Operating 
Expenses of the Coalition Provisional Authority'' under this 
new heading, instead of providing the same amount for 
administrative costs of the Coalition Provisional Authority 
(CPA) in Iraq, within the total amount under the heading 
``Operation and Maintenance, Army'' as requested in the 
Supplemental request.
    The Committee takes note of the outstanding job that 
Ambassador L. Paul Bremer and his staff have performed on 
behalf of both the American and Iraqi people. Ambassador 
Bremer, the CPA employees and the men and women from various 
federal agencies supporting the CPA and Iraq's reconstruction 
have labored under the most difficult of circumstances.
    The CPA currently oversees the reconstruction of Iraq, 
especially the non-military programs described in the Iraq 
Relief and Reconstruction Fund section of this report, from 
building waste water treatment systems to renovating health 
care centers to training law enforcement officials to providing 
computer training for Iraqi youth. The CPA is empowered with 
managing the largest entire amount of U.S. foreign assistance 
provided to the rest of the world. The CPA developed the 
$20,304,000,000 Iraq assistance request currently before the 
Committee, and it may well administer much of the amount that 
is appropriated in this Act.
    The Committee recommendation acknowledges CPA's leadership 
and role. The Committee applauds the CPA for recently 
establishing a presence in Washington DC, and expects to be 
kept updated on the progress ofreconstruction efforts, roles 
and missions of supporting agencies, and implementation of programs 
funded by this Act.
    However, the Committee notes that during the past six 
months, it has been difficult for the Congress and the 
Appropriations Committees to get current and specific 
information about reconstruction activities in Iraq, with the 
exception of information from the United States Agency for 
International Development. The Committee has continued to ask 
the CPA and Administration detailed questions about the 
$20,304,000,000 request; many have gone unanswered.
    The Committee notes that the transparency is crucial for 
ensuring efficient, accountable reconstruction activities in 
Iraq. To this effect, this recommendation provides for the 
first time a direct operating appropriation for the CPA, and, 
under the Iraq Relief and Reconstruction Fund, the organization 
is given the authority to receive direct apportionment of 
program/project funds.
    The Committee recommendation does not alter the reporting 
relationship of Ambassador Bremer to the President through the 
Secretary of Defense. However, it does further transparency by 
clarifying the operational cost of the United States' 
reconstruction effort in Iraq as part of U.S. foreign 
assistance, and the scope of the non-military reconstruction 
efforts. It acknowledges that the American people have a right 
to know the cost of maintaining a 3,700-person activity. It 
also should improve the flow of information to Congress and, 
thus, Congressional oversight of foreign assistance.
    Since the CPA is less than a year old and it is possible 
that the organization could require additional operational 
resources during this year, the Committee also has included 
bill language in the Iraq Relief and Reconstruction Fund that 
provides authority, if needed, to transfer up to 1 percent, or 
an additional $186,490,000 from the Fund for CPA's operating 
expenses.

                         Economic Support Fund

    The Committee recommends $872,000,000 for the ``Economic 
Support Fund.'' The recommendation is $450,000,000 above the 
request, primarily for reconstruction in Afghanistan. The 
recommended increase is fully offset by proposed reductions in 
the request for Iraq reconstruction, and, thus, does not result 
in a net increase above the overall request. These funds would 
remain available for obligation until December 31, 2004.
    The recommendation reserves $672,000,000 for accelerated 
assistance for Afghanistan instead of $422,000,000 as 
requested. The Committee notes the increasing terrorist 
activity against the Government of Afghanistan, international 
Coalition forces, and private non-governmental organizations 
providing relief and reconstruction assistance within 
Afghanistan, and concludes that the pace of reconstruction, as 
well as that of security assistance provided elsewhere in this 
Chapter, must respond to the deteriorating security conditions, 
especially in the southern and eastern provinces of 
Afghanistan.
    After considering reports from several field reviews in 
Afghanistan by Committee members and professional staff, the 
Committee fully supports most of the urgent programs included 
in the budget justification for Afghanistan civil 
reconstruction, including roads, education, health, power 
generation/private sector development, and provincial 
reconstruction teams. The State Department Coordinator of 
Assistance to Afghanistan and the Administrator of USAID are 
requested to provide the Committee not laterthan December 5, 
2003, a fiscal year 2004 strategic and financial plan, including 
projected quarterly obligations by sector and major project (in excess 
of $250,000), for all reconstruction and security activities in 
Afghanistan undertaken with funds provided by this Act and prior 
Appropriations acts.
    The Committee recommends $191,000,000 for major and 
provincial roads, an endeavor that is critical to both economic 
development and security in Afghanistan. The Committee commends 
those engaged in the challenging project to reconstruct and 
pave the major Kabul-Kandahar road by the end of 2003, 
recognizes the dire security threat from neo-Taliban forces 
along its route, and urges United States Armed Forces in 
Afghanistan to increase surveillance of the construction areas 
and support for the private and Afghan national police security 
forces protecting the Kandahar road. The additional funding 
will sustain the momentum of the Kabul-Kandahar project, by 
financing secondary and tertiary road development, primarily in 
the previously neglected southern and central regions, through 
the Afghan-led National Emergency Employment Program and UNOPS, 
and, with other international donors, by expanding primary road 
construction from Kandahar toward Herat.
    The Committee recommendation provides an additional 
$95,000,000 for schools and education in Afghanistan, 
$55,000,000 above the request. The Committee has promoted 
Afghan education, especially for girls, for many years, even 
during the period of Soviet and Taliban control. The Ministry 
of Education is doing a better job of coordinating the numerous 
foreign donor projects and developing a strategy that can 
maximize use of future funding. The additional funding will 
support more extensive teacher training and special efforts to 
accelerate learning and jump-start schooling opportunities for 
the 10- to 30-year-old Afghan whose education was interrupted 
or prevented by 23 years of war.
    The Committee recommends $95,000,000 for private sector 
development and power generation, $50,000,000 above the 
request. The Committee recommendation supports market centers-
industrial parks, land titling, natural resources assessment 
and power generation projects. The Committee recommendation 
does not include $10,000,000 for a venture capital fund. The 
Committee recommendation provides $65,000,000 to repair, 
rehabilitate and procure electric generation and distribution 
infrastructure in Afghanistan. In addition to the power 
requirements of Kabul already requested, the Committee has 
provided additional funds to rehabilitate and increase power 
generation from the Kajaki Dam facility that is essential to 
successful reconstruction in the politically sensitive Kandahar 
and Helmand provinces. Also, the Coordinator should consider 
installing mini-hydro or more reliable thermal generators in 
regional towns adjacent to the provincial reconstruction team 
locations.
    The Committee recommends an additional $70,000,000 for 
support to the Government of Afghanistan (GoA), $33,000,000 
above the request. Demonstrating to the Afghan people that 
their central government is capable of providing security and 
minimal services to them is key to the establishment of a 
stable Afghanistan that is able to resist terrorist incursions. 
To accomplish this, the Government must collect sufficient 
revenues and pay salaries to its military and civilian 
officials. Of the recommended $70,000,000, not less than 
$25,000,000 will meet key GoA infrastructure needs, especially 
telecommunications between Kabul and the provinces. The 
Ministry of Finance will use not less than $10,000,000 to 
improve customs collections at Afghanistan's 11 official border 
posts and remitting of customs to the ministry on a timely 
basis. An indeterminate amount will be needed to augment other 
donor contributions to an international trust fund to pay 
government salaries until economic growth increases government 
revenue sufficiently to meet salary costs. If official payrolls 
are missed, the anticipated 2004 elections will be threatened.
    The Committee recommends $69,000,000 for elections and 
improved governance in Afghanistan, $12,000,000 above the 
request. As no recent census is available for Afghanistan, 
registration of voters prior to the summer, 2004, elections 
called for by the 2001 Bonn Accords will be difficult and 
costly. Public education of voters and the promotion of 
powerful, unarmed civil voices require outside financial 
support in 2004. In governance, the Committee recommends that 
activities be undertaken to promote private investment and 
trade capacity building.
    In order to limit the number of costly United States 
expatriate advisors in Kabul, the Committee has included bill 
language limiting the amount available for additional technical 
expert positions and the number of senior advisors paid from 
funds made available by this Act or by prior Appropriations 
acts. This provision does not apply to the dozens of U.S. 
officials required to design and manage a massive Afghanistan 
assistance program, the actual number of which is presently 
insufficient due toEmbassy allocation of scarce housing and 
office space to other purposes. The Committee urges the Department of 
State and USAID to continue to resolve this situation, and keep it 
fully informed of progress toward deploying an adequately staffed 
Mission in Kabul.
    The Committee recommendation provides $50,000,000, as 
requested, for projects directly involving requirements 
identified by provincial reconstruction teams (PRTs) in eight 
to twelve provinces. As requested earlier by the Committee, 
Congress was notified in September of the intent to obligate an 
initial $10,000,000 for the PRTs. Although several of the PRTs 
are commanded by Coalition forces, such as the United Kingdom 
and New Zealand, each is expected to include USAID and State 
officials who will have a major voice in allocating U.S. 
assistance funds for small projects that will directly benefit 
local populations who are not helped by current reconstruction 
efforts. The PRT concept is based on expansion of security 
throughout Afghanistan, but each is also prepared to assist 
local oversight of assistance managed by the USAID Mission in 
Kabul, complement DoD humanitarian assistance, and support 
expansion of central Government of Afghanistan services. The 
Committee notes that successful implementation of the 
innovative PRT concept is contingent on timely transportation 
and security support by Kabul-based civilian and military 
authorities.
    The Committee recommends an additional $49,000,000 for 
health services in Afghanistan, $21,000,000 above the request. 
These funds will support the construction of more than 90 
health clinics, enabling more than 3 million additional rural 
Afghans gain access to a basic health delivery system. If a 
permissive security situation is extended throughout all of 
Afghanistan during 2004, the additional health and road funds 
will accelerate achievement of the objective of bringing all 
Afghans within 4 hours' travel of a health clinic.
    The Committee recommendation provides an initial 
$30,000,000 for disarmament, demobilization and reintegration 
(DDR) projects, $30,000,000 below the request. The Committee 
notes that Japan has already provided full funding for the 
initial pilot projects in Northern Afghanistan that will help 
determine the feasibility of DDR projects prior to the training 
and deployment of a multi-ethnic Afghan National Army that is 
firmly under civilian Afghan control. The Committee believes 
that Japan and other donors will make additional contributions 
to DDR projects if the pilot effort is a success and is 
replicable in other regions.
    The Committee also recommends that $23,000,000, not 
included in the request, be provided for water projects in 
Afghanistan. Because of the essential role of irrigation in 
agriculture, and the lack of potable water in many urban areas 
and small towns, the Committee requests USAID to report not 
later than January 15, 2004 on the feasibility of expanding 
rural and urban water projects in Afghanistan.
    The Committee takes note of the outstanding jobs that 
Ambassador William B. Taylor and Major General Karl Eikenberry, 
their staffs and their colleagues in Afghanistan have performed 
on behalf of both the American and Afghan people. As 
coordinators of civilian and security assistance for 
Afghanistan, both officials and the men and women of USAID, the 
Departments of Defense and State and other federal agencies 
supporting the Embassy in Kabul and Afghanistan's 
reconstruction have labored under the most difficult of 
circumstances. The Committee acknowledges the important role of 
non-governmental organizations operating in Afghanistan.
    As the cooperation of the Government of Pakistan is vital 
to United States and Coalition efforts to build a stable 
Afghanistan, the Committee has agreed to language proposed by 
the President to allow up to $200,000,000 from ``Economic 
Support Fund'' to be made available for the subsidy cost of 
modifying direct loans and guarantees previously issued for 
Pakistan. The recommendation includes the $200,000,000, subject 
to a determination by the President that the Government of 
Pakistan is fully cooperating with the United States in the 
global war on terrorism.

              International Disaster and Famine Assistance


                     (INCLUDING TRANSFERS OF FUNDS)

    The Committee recommends $100,000,000 for International 
Disaster and Famine Assistance, especially for Sudan and 
Liberia, instead of $100,000,000 for a new ``Emergency Fund for 
Complex Foreign Crises'' as requested by the President. Thus, 
this recommendation does not result in a net increase above the 
request.
    As other funds are available to respond to natural 
disasters abroad, the Committee recommendation limits the 
circumstances under which these funds may be obligated to those 
where the President determines that theproposed United States 
response to a complex foreign crisis is in the national interest and 
essential to efforts to reduce international terrorism. The Committee 
anticipates that these funds may be required for assistance to Sudan 
and Liberia.
    The Committee has included a provision authorizing the 
transfer of up to one percent of certain other funds to this 
account. All proposed obligations made available under this 
heading are made subject to the regular notification procedures 
of the Committees on Appropriations.

                          DEPARTMENT OF STATE


          International Narcotics Control and Law Enforcement

    The Committee recommends $170,000,000 for ``International 
Narcotics Control and Law Enforcement'', $50,000,000 more than 
requested for accelerated assistance for Afghanistan. The 
recommended increase is offset by proposed reductions in the 
request for Iraq reconstruction, and, thus, does not result in 
a net increase above the overall request. These funds would 
remain available for obligation until December 31, 2004.
    The Committee is gravely concerned about the increasing 
terrorist activity against the Government of Afghanistan and 
private non-governmental organizations providing relief and 
reconstruction assistance within Afghanistan. The capacity of 
Afghan security forces to protect their own government and 
international reconstruction efforts must be expanded as 
rapidly as feasible, and the increased funding responds to that 
urgent requirement.
    The Committee also notes reports of the pervasive 
dependence of regional economies in Afghanistan on opium 
cultivation and narcotics trafficking. The Committee notes the 
leadership role of Germany, the United Kingdom and Italy in the 
police training, counter-narcotics and judicial reform sectors, 
respectively, and encourages each of these Coalition members to 
accelerate its assistance efforts in Afghanistan.
    In order to respond to this rapidly evolving situation, the 
Committee is providing $160,000,000 to accelerate the training 
and equipment of the Afghan National Police and Border Police 
and to increase counter-narcotics law enforcement capacity. In 
addition, $10,000,000 is provided for the training of 
prosecutors, court officers and the Afghan judiciary. The 
Committee intends that all assistance to Afghanistan be 
conducted on a basis of non-discrimination among its ethnic 
groups and include special emphasis on the rights of women and 
minorities.

    Nonproliferation, Anti-Terrorism, Demining, and Related Programs

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

                          MILITARY ASSISTANCE


                  Funds Appropriated to the President


                   Foreign Military Financing Program

    The Committee recommends $297,000,000 for ``Foreign 
Military Financing Program'', $75,000,000 more than requested 
for accelerated security assistance on a non-repayable basis 
for Afghanistan. The recommended increase is offset by proposed 
reductions in the request for Iraq reconstruction, and, thus, 
does not result in a net increase above the overall request. 
These funds would remain available for obligation until 
September 30, 2004.
    As mentioned earlier in this Report, the Committee is 
gravely concerned about the increasing terrorist activity 
against the Government of Afghanistan and the international 
Coalition. The rapid training and deployment of an ethnically 
balanced, professional national army for Afghanistan is 
essential to the success of Coalition efforts to promote a 
stable and peaceful Afghanistan.
    The Committee encourages the President, the Secretary of 
State and the Secretary of Defense to continue to remind the 
Government of Afghanistan that United States military 
assistance is provided to build a new Afghanistan army that is 
professional, multi-ethnic, and loyal to the civilian 
leadership in the central government. Failure of the Government 
of Afghanistan to continue moving rapidly toward this common 
objective should not be rewarded with continuing military 
assistance by any agency of the United States Government to 
armed militias or army units that do not share these 
objectives.
    To this end, the Committee requests the Secretary of 
Defense, in consultation with the Secretary of State, to 
provide it with periodic reports on the progress of the new 
Afghan army. The reports may include such matters as the 
Secretaries may determine, but include an evaluation of 
professional development, ethnic and regional balance, 
including data on retention rates by ethnic and regional 
origin, coordination with Coalition provincial reconstruction 
teams, and responsiveness to central civilian leadership of the 
Government of Afghanistan. The initial report should also fully 
identify the major prime and major sub-contractors 
participating in the foreign military financing and similar 
programs in Afghanistan in fiscal years 2003 and 2004, describe 
the contractual arrangements with each, including whether or 
not they were made on a fully competitive basis, and, if not, 
the reasons for a limited competition or sole source award; and 
the actual and proposed obligations for each. For the purposes 
of this report, a ``major'' contract is one in excess of 
$250,000. The initial report should also detail and evaluate 
training and support for the new Afghan army that has been or 
is anticipated to be provided by international Coalition 
members. Reports should be provided to the Committees on 
Appropriations and foreign affairs through the Office of 
Management and Budget not later than December 5, 2003, March 5, 
2004, and July 9, 2004.

                        Peacekeeping Operations

    The Committee recommends $50,000,000 for ``Peacekeeping 
Operations''. This level is the same as the request, and would 
support multilateral peacekeeping needs in Iraq and 
Afghanistan.

                    GENERAL PROVISIONS--THIS CHAPTER

    The task before the United States in Iraq and Afghanistan 
is formidable, and amounts to laying the groundwork for entire 
governments. The Committee remains mindful that the President 
must have flexibility in order to address the often rapidly 
changing situations in these countries. However, the 
authorities requested by the President to move money among 
accounts are nearly without limit. The Committee has not 
approved several provisions, and modified several others, in 
order to increase transparency and accountability of the use of 
funds for the reconstruction and stabilization of Iraq and 
Afghanistan.
    For instance, the Committee recommendation does not include 
a general provision requested by the President that would have 
allowed transfers among international assistance programs in 
the supplemental request in an amount not to exceed 
$200,000,000. Existing provisions of law under the Foreign 
Assistance Act and annual acts making appropriations for 
foreign operations, export financing, and related programs 
already provide sufficient authority to transfer funds.
    The Committee recognizes that debt incurred under the 
Hussein regime presents a potential challenge to the country's 
development. However, this supplemental appropriation request 
is intended to meet emergency needs, and the Committee is of 
the opinion that paying foreign debtors out of United States 
funds is not among those needs. The Committee includes a new 
general provision, section 2201, that prohibits the use of 
funds appropriated in this Act, or in the 2003 Iraq 
Supplemental Appropriations Act (P.L. 108-11), to be used to 
pay for any debt entered into by the Iraqi government before 
the defeat and overthrow of Saddam Hussein. The provision 
pertains to all public and private lenders including 
international financial institutions. The Committee strongly 
opposes the use of appropriations to repay any credit extended 
to the repressive regime of Saddam Hussein. Nothing in this 
provision, however, should be construed as discouraging the 
Departments of State and Treasury from working with lenders in 
reducing and restructuring Iraq's debt burden.
    The Committee has been concerned for some time with the 
lack of transparency with which several contracts have been let 
for Iraq. In its fiscal year 2004 Foreign Operations, Export 
Financing and Related Programs bill, the House of 
Representatives included a provision requiring full and open 
competition in Iraq reconstruction contracts.
    It is in the best interests of most involved, including the 
U.S. business sector and the Iraqi people, to use open and full 
competition for all but a very limited number of contracts. For 
situations in which ensuring such competition might be 
inappropriate--such as in cases of emergency--the Committee 
believes that existing federal regulations allow for adequate 
flexibility.
    Therefore, the Committee includes language in sections 2202 
and 2203 to limit the use of non-competitive contracts in the 
``Iraq Relief and Reconstruction Fund'' in this Act and from 
funds under the same heading in Public Law 108-11. This 
language preserves the prerogative of the President to waive 
the requirement for full and open competition in certain 
circumstances, as outlined in applicable federal procurement 
regulations. The provisions require that the executive branch 
provide Congress and the public with notification, with some 
allowance for classified material, when this prerogative is 
exercised, and with an explanation for its use.
    In section 2204, the Committee recommends language to 
extend to September 30, 2005, authorities provided in section 
1503 of Public Law 108-11 to suspend relevant provisions of the 
Iraq Sanctions Act and to make inapplicable to Iraq certain 
provisions of law that restrict assistance to countries that 
support terrorism. The President requested that section 1503 be 
made permanent. Additionally, the Committee amends the section 
to make Committee intent clear on the export of military 
equipment. In section 2205, the Committee amends Section 1504 
of Public Law 108-11 to allow the export of small arms to Iraq. 
This was addressed by the Administration in its request for 
amending section 1503.
    The Committee has included language in section 2206 that 
increases the cumulative value of military equipment that the 
Department of Defense may provide to Afghanistan from 
$300,000,000 to $450,000,000.
    Other general provisions that the Committee includes are of 
a more technical nature. For instance, the Committee 
recommendation includes a provision (section 2210) as requested 
by the President that would allow the appropriations requested 
in this chapter to be made available without specific 
authorization.
    The Committee also recommends language in section 2211 that 
allows the Overseas Private Investment Corporation to operate 
in Iraq notwithstanding any other provision of law. The 
Committee supports OPIC programs in Iraq, and therefore the 
Committee has provided language to waive existing requirements 
that the President enter into agreements with a host country 
government before opening and operating insurance and guaranty 
programs. However, the Committee does not expect that OPIC's 
authority will be exercised to waive other existing statutory 
requirements including longstanding Congressional mandates; 
therefore, the Committee has made the exercise of such 
authority subject to the regular notification procedures of the 
Committees on Appropriations.

                TITLE III--GENERAL PROVISIONS--THIS ACT

    Section 3001 limits the availability of funds provided in 
this Act to the current fiscal year, unless otherwise provided 
in the Act.
    Section 3002 states that none of the funds in this or any 
other Act may be used for any defense or reconstruction 
activities in Iraq or Afghanistan coordinated by any officer of 
the United States Government whose office is not subject to 
appointment by the President by and with the advice and consent 
of the Senate.
    Section 3003 concerns Impact Aid eligibility for certain 
students.
    Section 3004 states that none of the funds in this Act may 
be provided to any unit of the security forces of a foreign 
country participating with coalition forces in Afghanistan or 
Iraq if the Secretary of State or the Secretary of Defense has 
credible evidence that such unit has committed gross violations 
of human rights, unless the appropriate Secretary determines 
and reports to the Committees on Appropriations that the 
government of such country is taking effective measures to 
bring the responsible members of the security forces to 
justice.
    Section 3005 would prohibit the use of funding in this or 
any other appropriations Act to execute any program that would 
remove Mexican citizens or nationals by land from the United 
States by returning them to a location other than the United 
States port of entry closest to the location where they were 
apprehended, last imprisoned, or acquitted. The Secretary may 
waive this provision if compliance is determined to be 
infeasible and notification is provided to the Committees on 
Appropriations and the Judiciary of the House of 
Representatives and the Senate.
    Section 3006 would prohibit the use of funding in this or 
any other appropriations Act for the issuance of immigration 
Form I-20A by the San Antonio Office of Detention and Removal 
of the Bureau of Immigration and Customs Enforcement of the 
Department of Homeland Security.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    The bill includes appropriations that are not authorized by 
law and as such may be construed as legislative in nature.
    The bill includes emergency appropriation designations that 
may be construed as legislative in nature.
    Language is included that restricts the availability of the 
funds to the current fiscal year unless otherwise provided.
    Language has been included for Department of Defense--
Military in ``Operation and Maintenance, Navy'' which provides 
that $80,000,000 may be transferred to the Department of 
Homeland Security for Coast Guard operations.
    Language has been included for Department of Defense--
Military in ``Operation and Maintenance, Defense-Wide'' which 
provides funds for the CINC Initiative Fund; and provides funds 
for payments to reimburse key cooperating nations for 
logistical and military support in connection with the global 
war on terrorism.
    Language has been included for Department of Defense--
Military in ``Iraq Freedom Fund'' which provides funds for 
transfer to other appropriations, and requires certain 
notification and reporting requirements of the Secretary of 
Defense.
    Language has been included for Department of Defense--
Military in ``Drug Interdiction and Counter-Drug Activities, 
Defense'' which provides funds for such activities related to 
the drug problem in the Afghanistan region.
    Language has been included for Department of Defense--
Military in ``Intelligence Community Management Account'' which 
provides that $3,000,000 may be transferred to the Department 
of Energy, and $15,500,000 may be transferred to the Federal 
Bureau of Investigation.
    Language has been included in Department of Defense--
Military in section 1101 which provides the Secretary of 
Defense with additional transfer authority for funds in this 
Act.
    Language has been included in Department of Defense--
Military in section 1102 which provides authority to obligate 
funds for intelligence activities pursuant to section 504 of 
the National Security Act of 1954.
    Language has been included in Department of Defense--
Military in section 1103 which continues certain wartime 
personnel benefits for travel and transportation allowances for 
family members.
    Language has been included in Department of Defense--
Military in section 1104 which continues the monthly rate 
increases for Imminent Danger Pay and Family Separation 
Allowances through September 30, 2004.
    Language has been included in Department of Defense--
Military in section 1105 which allows the balance of funds in 
the ``Defense Emergency Response Fund'' to be charged to any 
current appropriations account of the Department of Defense.
    Language has been included in Department of Defense--
Military in section 1106 which provides that funds available 
for operation and maintenance may be used to provide a variety 
of services and support for coalition forces in Iraq.
    Language has been included in Department of Defense--
Military in section 1107 which provides that not to exceed 
$100,000,000 in funds under ``Operation and Maintenance, 
Defense-Wide'' may be used for assistance for the new 
militaries in Iraq and Afghanistan.
    Language has been included in Department of Defense--
Military in section 1108 which limits the use of procurement 
and research, development, test and evaluation funds.
    Language has been included in Department of Defense--
Military in section 1109 providing additional appropriations to 
repair damages at military installations.
    Language has been included in Department of Defense--
Military in section 1110 which provides that not to exceed 
$180,000,000 in funds made available in this Act for operation 
and maintenance for the Commander's Emergency Response Program 
in Iraq, and to establish a similar program for use in 
Afghanistan.
    Language is included that enables operations and 
maintenance funds to be used for emerging construction 
requirements if the construction is necessary to support 
Operation Iraqi Freedom or the Global War on Terrorism.
    Language is included waiving prior authorization 
requirements for the expenditure of funds by the Department of 
State or the Broadcasting Board of Governors.
    Under ``Operating Expenses of the United States Agency for 
International Development'', $40,000,000 is made available for 
direct support of operations in Afghanistan and is to remain 
available until September 30, 2005.
    Under ``Iraq Relief and Reconstruction Fund'', 
$18,649,000,000 is made available until September 30, 2005 for 
necessary expenses to carry out the purposes of the Foreign 
Assistance Act of 1961, for security, relief, rehabilitation 
and reconstruction in Iraq. The amounts are allocated as 
follows: $3,243,000,000 for security and law enforcement; 
$1,318,000,000 for justice, public safety infrastructure, and 
civil society; $5,560,000,000 for the electric sector; 
$2,100,000,000 for oil infrastructure; $4,332,000,000 for water 
resources and sanitation; $500,000,000 for transportation and 
telecommunications; $370,000,000 for roads, bridges, and 
construction; $793,000,000 for health care; $153,000,000 for 
private sector development; and $280,000,000 for education, 
refugees, human rights, democracy, and governance. Language is 
included that allows the President to reallocate up to 10 
percent of any of the preceding allocations, except that the 
total for the allocation receiving such funds may not be 
increased by more than 20 percent. Additionally, language is 
included that designates 10% of funds apportioned to USAID made 
available for subcontracts should be reserved for small 
businesses. The bill requires an annual spending plan for 
reconstruction programs under the preceding allocations, 
including project-by-project detail, by the President not later 
than January 1, 2004, and is to be updated and submitted every 
180 days thereafter. Language is included specifying that funds 
appropriated under this heading shall be apportioned only to 
the Coalition Provisional Authority in Iraq, the Department of 
State, the Department of Health and Human Services, the 
Department of Treasury, the Department of Defense, and the 
United States Agency for International Development. Provides 
not less than $35,000,000 for administrative expenses of the 
Department of State Bureau of International Narcotics and Law 
Enforcement Affairs and the United States Agency for 
International Development for support of the reconstruction 
activities in Iraq, and that up to 1 percent of the amount 
appropriated for the Fund may be transferred to ``Operating 
Expenses of the Coalition Provisional Authority''. 
Contributions of funds for the purposes provided from any 
person, foreign government, or international organization, may 
be credited to the Fund and used for such purposes, and the 
Committees on Appropriations must be notified quarterly of any 
collections pursuant to the previous proviso. Additionally, the 
CPA shall work, in conjunction with relevant Iraqi officials, 
to ensure that a new Iraqi constitution preserves full rights 
to religious freedom.
    Under ``Operating Expenses of the Coalition Provisional 
Authority'', $858,000,000 is made available until September 30, 
2005.
    Under ``Economic Support Fund'', $872,000,000 is made 
available until December 31, 2004. Of this amount, not less 
than $672,000,000 is available for Afghanistan, not to exceed 
$30,000,000 may be used for activities related to disarmament, 
demobilization, and reintegration of militia combatants, not to 
exceed $2,000,000 may be used to provide additional policy 
experts in Afghan ministries and not more than five senior 
advisors to the United States Ambassador may be deployed in 
Afghanistan, and not less than $17,250,000 is available only 
for security requirements that directly support United States 
and Coalition personnel who are implementing assistance 
programs in Afghanistan. Additionally, not to exceed 
$200,000,000 is made available for modifying direct loans and 
guarantees for Pakistan only after the President makes a 
determination that the Government of Pakistan is fully 
cooperating with the United States in the global war on 
terrorism.
    Under ``International Disaster and Famine Assistance'', 
$100,000,000 is made available to respond to or prevent 
unforeseen complex foreign crises, especially in Sudan and 
Liberia, and not to exceed 1 percent of other funds in the 
Chapter may be transferred to this account. These funds are 
provided only pursuant to a national interest determination by 
the President; these funds may not be available to respond to 
natural disasters, and funds made available are subject to 
notification.
    Section 2201 prohibits funds in this Act from being used to 
forgive debts owed by the Government of Iraq.
    Section 2202 requires that no funds in the ``Iraq Relief 
and Reconstruction Fund'' may be used to enter into any 
contract unless it is entered into in accordance with title III 
of the Federal Property and Administrative Services Act. 
Language is included allowing a waiver of this prohibition, but 
certain reporting requirements must be followed.
    Section 2203 requires certain public disclosure 
requirements for any noncompetitive contracting using funds 
available for Iraq or for the ``Iraq Relief and Reconstruction 
Fund''.
    Section 2204 extends the date of applicability of section 
1503 of Public Law 108-11 from September 30, 2004 to September 
30, 2005 and clarifies Committee intent.
    Section 2205 amends section 1504 of Public Law 108-11 by 
permitting the import of small arms into Iraq for Iraqi 
government and private security forces.
    Section 2206 amends the Afghanistan Freedom Support Act of 
2002 by increasing the cumulative value of military equipment 
that the Department of Defense may provide to Afghanistan from 
$300,000,000 to $450,000,000.
    Section 2207 requires certain reports by the Coalition 
Provisional Authority.
    Section 2208 deems the Coalition Provisional Authority in 
Iraq to include any successor United States Government entity 
with the same or substantially the same authorities and 
responsibilities as the Coalition Provisional Authority in 
Iraq.
    Section 2209 allows that assistance under chapter 2 of 
title 1 may be provided for Iraq and Afghanistan 
notwithstanding any other provision of law not contained in 
this Act that restricts assistance to foreign countries and 
section 660 of the Foreign Assistance Act of 1961.
    Section 2210 allows funds appropriated in the bill to be 
obligated in the absence of a prior authorization of 
appropriations.
    Section 2211 allows that notwithstanding any other 
provision of law, the Overseas Private Investment Corporation 
is authorized to undertake programs in Iraq, but such authority 
is subject to notification.
    Section 2212 includes certain reporting requirements on 
military operations and reconstruction efforts in Iraq and 
Afghanistan.
    Section 2213 requires the review of contracts by the 
Comptroller General in excess of $1,000,000 using funds 
appropriated by this Act for foreign assistance.
    Language is included stating that none of the funds in this 
or any other Act may be used for any defense or reconstruction 
activities in Iraq or Afghanistan coordinated by any officer of 
the United States Government whose office is not subject to 
appointment by the President and with the advice and consent of 
the Senate.
    Language is included concerning Impact Aid eligibility for 
certain students.
    Language is included prohibiting the use of any 
appropriations funding to remove Mexican citizens or nationals 
by land from the United States by returning them to a location 
other than the United States port of entry closest to the 
location where they were apprehended, last imprisoned, or 
acquitted. It also provides waiver authority to the Secretary 
of Homeland Security.
    Language is included prohibiting the use of any 
appropriations to fund the issuance of immigration Form I-20A 
by the San Antonio Office of Detention and Removal of the 
Bureau of Immigration and Customs Enforcement of the Department 
of Homeland Security.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                              Appropriations
               Agency/program                 Last year of   Authorization   in last year of   Appropriations in
                                             authorization       level        authorization        this bill
----------------------------------------------------------------------------------------------------------------
Department of Defense--Military:
    Military Personnel, Army...............          2003               (1)      26,855,017          12,188,870
    Military Personnel, Navy...............          2003               (1)      21,927,628             816,100
    Military Personnel, Marine Corps.......          2003               (1)       8,501,087             753,190
    Military Personnel, Air Force..........          2003               (1)      21,981,277           3,384,700
    Operation and Maintenance, Army........          2003       23,922,251       23,992,082          24,355,664
    Operation and Maintenance, Navy........          2003       29,264,939       29,331,526           1,934,058
        Transfer to Dept. of Homeland        .............  ...............               0             (80,000)
         Security..........................
    Operation and Maintenance, Marine Corps          2003        3,559,636        3,585,759           1,198,981
    Operation and Maintenance, Air Force...          2003       27,419,488       27,339,533           5,598,368
    Operation and Maintenance, Defense-Wide          2003       14,145,310       14,707,506           4,485,452
    Operation and Maintenance, Marine Corps          2003          189,532          187,532              16,000
     Reserve...............................
    Operation and Maintenance, Air Force             2003        2,160,604        2,163,104              53,000
     Reserve...............................
    Operation and Maintenance, Air National          2003        4,104,810        4,117,585             214,000
     Guard.................................
    Overseas Humanitarian, Disaster, and             2003           58,400           58,400              35,500
     Civic Aid.............................
    Iraq Freedom Fund......................          2003                0                0           1,988,600
    Procurement of Weapons & Tracked Combat          2003        2,276,751        2,266,508             101,600
     Vehicles, Army........................
    Other Procurement, Army................          2003        5,857,814        5,874,674           1,250,287
    Aircraft Procurement, Navy.............          2003        8,979,275        8,812,855             158,600
    Other Procurement, Navy................          2003        4,494,754        4,612,910              76,357
    Procurement, Marine Corps..............          2003        1,355,491        1,388,583             123,397
    Aircraft Procurement, Air Force........          2003       12,676,505       13,137,255              53,972
    Missile Procurement, Air Force.........          2003        3,504,139        3,174,739              20,450
    Other Procurement, Air Force...........          2003       10,846,048       10,672,712           3,418,006
    Procurement, Defense-Wide..............          2003        3,691,604        3,414,455             418,635
    Research, Development, Test and                  2003       13,244,164       13,946,085              34,000
     Evaluation, Navy......................
    Research, Development, Test and                  2003       18,337,078       18,822,569              39,070
     Evaluation, Air Force.................
    Research, Development, Test and                  2003       17,659,099       17,524,596             195,817
     Evaluation, Defense-Wide..............
    Defense Working Capital Funds..........          2003          387,156        1,784,956             600,000
    National Defense Sealift Fund..........          2003          934,129          942,629              24,000
    Defense Health Program.................          2003       14,468,994       14,843,542             658,380
    Drug Interdiction and Counter-Drug               2003          859,907          881,907              73,000
     Activities, Defense...................
    Intelligence Community Management                2003          163,479          163,479              21,500
     Account...............................
        Transfer to Dept of Energy.........  .............  ...............               0              (3,000)
        Transfer to Dept of Justice........                                         (34,100)            (15,500)
    Sec. 1101 Transfer Authority...........          2003       (2,500,000)      (2,500,000)         (3,000,000)
    Sec. 1109 Storm Damage.................          2003                0                0             413,300
    Military Construction, Army............          2003        1,685,710        1,685,710             185,100
    Military Construction, Navy............          2003        1,353,228        1,353,228              45,530
    Family Housing Operations and                    2003        1,106,007        1,106,007               8,151
     Maintenance, Army.....................
    Military Construction, Air Force.......          2003        1,233,147        1,233,147             292,550
    Family Housing Operation and                     2003          861,788          861,788               6,280
     Maintenance, Navy and Marine Corps....
    Family Housing Operation and                     2003          864,850          864,850               6,981
     Maintenance, Air Force................
    Department of Justice: General Legal             2003          659,181          605,368              15,000
     Activities............................
    Department of State: Administration of           2003        5,133,390        5,098,804             214,000
     Foreign Affairs.......................
        International Organizations........          2003        1,617,359        1,529,702             245,000
    Broadcasting Board of Governors........          2003          644,486          533,841              40,000
    Operating expenses of the United States          1987      387,000,000      340,600,000          40,000,000
     Agency for International Development..
    Iraq Relief and Reconstruction Fund....             0                0                0      18,649,000,000
    Operating expenses of the Coalition                 0                0                0         858,000,000
     Provisional Authority.................
Economic Support Fund......................          1987    3,800,000,000    3,555,000,000         872,000,000
International Disaster and Famine                    1987       25,000,000       70,000,000         100,000,000
 Assistance................................
International Narcotics Control and Law              1994      171,500,000      100,000,000         170,000,000
 Enforcement...............................
Nonproliferation, Anti-terrorism, demining              0                0                0          35,000,000
 and related programs......................
Foreign Military Financing Program.........          2003    4,107,000,000    6,104,632,000         297,000,000
Peacekeeping operations....................          1999       83,000,000       76,500,000          50,000,000
----------------------------------------------------------------------------------------------------------------
\1\ The FY 2003 National Defense Authorization Act authorizes $93,829,525,000 for military personnel.

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    Language has been included in Department of Defense--
Military in ``Operation and Maintenance, Navy'' which provides 
for the transfer of$80,000,000 to the Department of Homeland 
Security for Coast Guard operations.
    Language has been included in Department of Defense--
Military in the ``Iraq Freedom Fund'' which provides for the 
transfer of funds out of and into this account.
    Under ``Iraq Relief and Reconstruction Fund'', up to 1 
percent may be transferred to and merged with ``Operating 
Expenses of the Coalition Provisional Authority.''
    Under ``International Disaster and Famine Assistance'', 
language has been included that provides that up to one percent 
of funds under other headings in this chapter may be 
transferred and merged with funds under this heading.
    Language has been included in Department of Defense--
Military in ``Drug Interdiction and Counter-Drug Activities, 
Defense'' which transfers funds to other appropriations 
accounts of the Department of Defense.
    Language has been included in Department of Defense--
Military in ``Intelligence Community Management Account'' which 
provides for the transfer of $3,000,000 to the Department of 
Energy and $15,500,000 to the Federal Bureau of Investigation.
    Language has been included in Department of Defense--
Military in section 1101 which provides the Department with 
transfer authority for funds in this Act.
    Language is included which allows the transfer of funds 
within the Department of State, from ``Emergencies in the 
Diplomatic and Consular Service'' to ``Diplomatic and Consular 
Programs''.

                              Rescissions

    Clause 3(f)(2) of rule XIII of the Rules of the House of 
Representatives requires a report on rescissions in the 
accompanying bill.

                        [In thousands of dollars]

Department of State:
    Diplomatic and Consular Programs....................         $35,800

                 Comparison With the Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the applicable fiscal 
year.
    Appropriations in this bill are designated emergency and 
therefore will not be measured against the section 302 
allocations.

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) 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:

                                                                Millions
Budget Authority........................................          86,856
Outlays:
    2004................................................          36,599
    2005................................................          33,334
    2006................................................          11,639
    2007................................................           2,970
    2008 and beyond.....................................           1,830

               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:

                                                                Millions
Budget Authority........................................           - - -
Fiscal Year 2004 outlays resulting therefrom............           - - -

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII 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.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

         Compliance With Clause 3 of Rule XIII (Ramseyer Rule)

    In compliance with clause 3(e) 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):

           *       *       *       *       *       *       *


SECTION 1313 OF THE EMERGENCY WARTIME SUPPLEMENTAL APPROPRIATIONS ACT, 
                                  2003


                          (TRANSFER OF FUNDS)

    Sec. 1313. As of October 31, 2003, all unobligated balances 
of funds remaining in the ``Defense Emergency Response Fund'' 
shall be transferred to, and merged with, the ``Iraq Freedom 
Fund'', and shall be available for the same purposes, and under 
the same terms and conditions, as funds appropriated to the 
``Iraq Freedom Fund'' in this chapter.

           *       *       *       *       *       *       *


        EMERGENCY WARTIME SUPPLEMENTAL APPROPRIATIONS ACT, 2003

(Public Law 108-11)

           *       *       *       *       *       *       *


TITLE I--WAR-RELATED APPROPRIATIONS

           *       *       *       *       *       *       *


CHAPTER 5

           *       *       *       *       *       *       *


GENERAL PROVISIONS, THIS CHAPTER

           *       *       *       *       *       *       *


  Sec. 1503. The President may suspend the application of any 
provision of the Iraq Sanctions Act of 1990: Provided, That 
nothing in this section shall affect the applicability of the 
Iran-Iraq Arms Non-Proliferation Act of 1992 (Public Law 102-
484), except that such Act shall not apply to humanitarian 
assistance and supplies: Provided further, That the President 
may make inapplicable with respect to Iraq section 620A of the 
Foreign Assistance Act of 1961 or any other provision of law 
that applies to countries that have supported terrorism: 
Provided further, That military [equipment] equipment, 
including equipment, as defined by title XVI, section 
1608(1)(A) of Public Law 102-484, shall not be exported under 
the authority of this section: Provided further, That section 
307 of the Foreign Assistance Act of 1961 shall not apply with 
respect to programs of international organizations for Iraq: 
Provided further, That provisions of law that direct the United 
States Government to vote against or oppose loans or other uses 
of funds, including for financial or technical assistance, in 
international financial institutions for Iraq shall not be 
construed as applying to Iraq: Provided further, That the 
President shall submit a notification 5 days prior to 
exercising any of the authorities described in this section to 
the Committee on Appropriations of each House of the Congress, 
the Committee on Foreign Relations of the Senate, and the 
Committee on International Relations of the House of 
Representatives: Provided further, That not more than 60 days 
after enactment of this Act and every 90 days thereafter the 
President shall submit a report to the Committee on 
Appropriations of each House of the Congress, the Committee on 
Foreign Relations of the Senate, and the Committee on 
International Relations of the House of Representatives 
containing a summary of all licenses approved for export to 
Iraq of any item on the Commerce Control List contained in the 
Export Administration Regulations, 15 CFR Part 774, Supplement 
1, including identification of end users of such items: 
Provided further, That the authorities contained in this 
section shall expire on September 30, [2004] 2005, or on the 
date of enactment of a subsequent Act authorizing assistance 
for Iraq and that specifically amends, repeals or otherwise 
makes inapplicable the authorities of this section, whichever 
occurs first.
  Sec. 1504. Notwithstanding any other provision of law, the 
President may authorize the export to Iraq of any nonlethal 
military equipment [controlled] or small arms controlled under 
the International Trafficking in Arms Regulations on the United 
States Munitions List established pursuant to section 38 of the 
Arms Export Control Act (22 U.S.C. 2778), if the President 
determines and notifies within 5 days prior to export the 
Committee on Appropriations of each House of the Congress, the 
Committee on Foreign Relations of the Senate, and the Committee 
on International Relations of the House of Representatives that 
the export of such nonlethal military equipment is in the 
national interest of the United States: Provided, That the 
limitation regarding nonlethal military equipment shall not 
apply to military equipment designated by the Secretary of 
State for use by a reconstituted (or interim) Iraqi military or 
police force: Provided further, That the authorities contained 
in this section shall expire on September 30, 2004, or on the 
date of enactment of a subsequent Act authorizing assistance 
for Iraq and that specifically amends, repeals or otherwise 
makes inapplicable the authorities of this section, whichever 
occurs first.

           *       *       *       *       *       *       *

                              ----------                              


       SECTION 202 OF THE AFGHANISTAN FREEDOM SUPPORT ACT OF 2002

SEC. 202. AUTHORIZATION OF ASSISTANCE.

  (a) * * *
  (b) Amount of Assistance.--The aggregate value (as defined in 
section 644(m) of the Foreign Assistance Act of 1961) of 
assistance provided under subsection (a) may not exceed 
[$300,000,000] $450,000,000, except that such limitation shall 
be increased by any amounts appropriated pursuant to the 
authorization of appropriations in section 204(b)(1) and shall 
not count toward any limitation contained in section 506 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2318).
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each rollcall 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: October 9, 2003.
    Measure: Emergency Supplemental for Defense and for the 
Reconstruction of Iraq and Afghanistan Appropriations Bill, FY 
2004.
    Motion by: Mr. Obey.
    Description of motion: To offset the cost of the bill by 
increasing the top marginal tax rate, provide $40,000,000 for 
medical and dental screening for reservists called to active 
duty, provide $60,000,000 to extend transitional health care 
benefits for reservists, provide $50,000,000 to increase 
support for Reserve and National Guard family assistance 
centers, permanently eliminate the subsistence fee for members 
hospitalized for wounds received while in combat or training, 
provide $65,000,000 for telephone and internet service for 
members deployed to a combat zone, provide $50,000,000 for 
government-paid travel under rest and recuperation leave 
program for members serving one year or more in-theatre, 
provide $40,500,000 for essential goods and services for 
troops, establish military campaign medals to recognize service 
in Operation Enduring Freedom and Operation Iraqi Freedom, 
provide $50,000,000 to enhance transition assistance for 
disabled servicemembers returning to civilian life, provide 
$3,126,000,000 for reconstituting the military forces, provide 
$1,000,000,000 to increase Army manpower end-strength level, 
require a report on military operations and reconstruction 
efforts in Iraq and Afghanistan, provide $179,000,000 for 
Military Construction, Army, reduce funding for the Iraq Relief 
and Reconstruction Fund by $4,618,000,000, require a GAO report 
on noncompetitive contracting, require congressional 
notification regarding contracts in excess of $5,000,000 
relating to activities in Iraq, require the head of an 
executive agency entering into a contract relating to 
activities in Iraq to develop a plan for minimizing the costs 
to the Federal Government through the use of Iraqi firms, 
define the legal status of Coalition Provisional Authority for 
Iraq, and establish a $7,000,000,000 Iraq Reconstruction Trust 
Fund.
    Results: Rejected 25 yeas to 36 nays.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Aderholt
Mr. Bishop                          Mr. Bonilla
Mr. Boyd                            Mr. Cramer
Mr. Clyburn                         Mr. Crenshaw
Ms. DeLauro                         Mr. Culberson
Mr. Edwards                         Mr. Cunningham
Mr. Farr                            Mr. Dicks
Mr. Fattah                          Mr. Doolittle
Mr. Hinchey                         Mrs. Emerson
Mr. Hoyer                           Mr. Frelinghuysen
Mr. Jackson                         Mr. Goode
Ms. Kaptur                          Ms. Granger
Mr. Kennedy                         Mr. Hobson
Ms. Kilpatrick                      Mr. Kingston
Mrs. Lowey                          Mr. Kirk
Mr. Moran                           Mr. Knollenberg
Mr. Obey                            Mr. Kolbe
Mr. Olver                           Mr. LaHood
Mr. Pastor                          Mr. Latham
Mr. Price                           Mr. Lewis
Mr. Rothman                         Mr. Mollohan
Ms. Roybal-Allard                   Mr. Murtha
Mr. Sabo                            Mr. Nethercutt
Mr. Serrano                         Mrs. Northup
Mr. Visclosky                       Mr. Peterson
                                    Mr. Regula
                                    Mr. Rogers
                                    Mr. Sherwood
                                    Mr. Simpson
                                    Mr. Tiahrt
                                    Mr. Walsh
                                    Mr. Wamp
                                    Dr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each rollcall 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. 2

    Date: October 9, 2003.
    Measure: Emergency Supplemental for Defense and for the 
Reconstruction of Iraq and Afghanistan Appropriations Bill, FY 
2004.
    Motion by: Mr. Obey.
    Description of motion: To appropriate $14,000,000,000 to 
the Department of Defense for Aircraft Procurement, Air Force.
    Results: Rejected 28 yeas to 33 nays.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Bonilla
Mr. Bishop                          Mr. Crenshaw
Mr. Boyd                            Mr. Culberson
Mr. Clyburn                         Mr. Cunningham
Mr. Cramer                          Mr. Doolittle
Ms. DeLauro                         Mrs. Emerson
Mr. Dicks                           Mr. Frelinghuysen
Mr. Edwards                         Mr. Goode
Mr. Farr                            Ms. Granger
Mr. Fattah                          Mr. Hobson
Mr. Hinchey                         Mr. Istook
Mr. Hoyer                           Mr. Kingston
Mr. Jackson                         Mr. Kirk
Ms. Kaptur                          Mr. Knollenberg
Mr. Kennedy                         Mr. Kolbe
Ms. Kilpatrick                      Mr. LaHood
Mrs. Lowey                          Mr. Latham
Mr. Mollohan                        Mr. Lewis
Mr. Moran                           Mr. Murtha
Mr. Obey                            Mr. Nethercutt
Mr. Olver                           Mrs. Northup
Mr. Pastor                          Mr. Peterson
Mr. Price                           Mr. Regula
Mr. Rothman                         Mr. Sherwood
Ms. Roybal-Allard                   Mr. Simpson
Mr. Sabo                            Mr. Sweeney
Mr. Serrano                         Mr. Tiahrt
Mr. Visclosky                       Mr. Walsh
                                    Mr. Wamp
                                    Dr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each rollcall 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. 3

    Date: October 9, 2003.
    Measure: Emergency Supplemental for Defense and for the 
Reconstruction of Iraq and Afghanistan Appropriations Bill, FY 
2004.
    Motion by: Mr. Hinchey.
    Description of motion: To modify section 2203(a)(3) of the 
bill regarding applicability of public disclosure requirements 
for noncompetitive contracting for the reconstruction of 
infrastructure in Iraq.
    Results: Rejected 29 yeas to 33 nays.
        Member Voting Yea             Members Voting Nay
Mr. Berry                           Mr. Aderholt
Mr. Bishop                          Mr. Bonilla
Mr. Boyd                            Mr. Crenshaw
Mr. Clyburn                         Mr. Culberson
Mr. Cramer                          Mr. Cunningham
Ms. DeLauro                         Mr. Doolittle
Mr. Dicks                           Ms. Emerson
Mr. Edwards                         Mr. Frelinghuysen
Mr. Farr                            Mr. Goode
Mr. Fattah                          Ms. Granger
Mr. Hinchey                         Mr. Hobson
Mr. Hoyer                           Mr. Istook
Mr. Jackson                         Mr. Kingston
Ms. Kaptur                          Mr. Kirk
Mr. Kennedy                         Mr. Knollenberg
Ms. Kilpatrick                      Mr. Kolbe
Mrs. Lowey                          Mr. LaHood
Mr. Mollohan                        Mr. Latham
Mr. Moran                           Mr. Lewis
Mr. Murtha                          Mr. Nethercutt
Mr. Obey                            Mrs. Northup
Mr. Olver                           Mr. Peterson
Mr. Pastor                          Mr. Regula
Mr. Price                           Mr. Sherwood
Mr. Rothman                         Mr. Simpson
Ms. Roybal-Allard                   Mr. Sweeney
Mr. Sabo                            Mr. Tiahrt
Mr. Serrano                         Mr. Walsh
Mr. Visclosky                       Mr. Wamp
                                    Dr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young

                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each rollcall 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. 4

    Date: October 9, 2003.
    Measure: Emergency Supplemental for Defense and for the 
Reconstruction of Iraq and Afghanistan Appropriations Bill, FY 
2004.
    Motion by: Mr. Regula.
    Description of motion: To report the bill, to authorize the 
chairman to seek a rule on such terms and conditions as he may 
deem appropriate, and to authorize the Chairman to move that 
the House disagree to the amendments of the Senate and agree to 
the conference requested by the Senate on the bill.
    Results: Adopted 47 yeas to 14 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Mr. Berry
Mr. Bishop                          Mr. Clyburn
Mr. Bonilla                         Ms. DeLauro
Mr. Boyd                            Mr. Farr
Mr. Cramer                          Mr. Fattah
Mr. Crenshaw                        Mr. Hinchey
Mr. Culberson                       Mr. Jackson
Mr. Cunningham                      Ms. Kaptur
Mr. Dicks                           Ms. Kilpatrick
Mr. Doolittle                       Mr. Moran
Mr. Edwards                         Mr. Obey
Mrs. Emerson                        Mr. Olver
Mr. Frelinghuysen                   Mr. Pastor
Mr. Goode                           Mr. Serrano
Ms. Granger
Mr. Hobson
Mr. Hoyer
Mr. Istook
Mr. Kennedy
Mr. Kingston
Mr. Kirk
Mr. Knollenberg
Mr. Kolbe
Mr. LaHood
Mr. Latham
Mr. Lewis
Mrs. Lowey
Mr. Mollohan
Mr. Murtha
Mr. Nethercutt
Mrs. Northup
Mr. Peterson
Mr. Price
Mr. Regula
Mr. Rothman
Ms. Roybal-Allard
Mr. Sabo
Mr. Sherwood
Mr. Simpson
Mr. Sweeney
Mr. Tiahrt
Mr. Visclosky
Mr. Wamp
Dr. Weldon
Mr. Wicker
Mr. Wolf
Mr. Young



                     DISSENTING VIEWS OF DAVID OBEY

    The $86.9 billion Supplemental Appropriation reported by 
the Committee is a marked improvement over the package 
requested by the President. It provides the Pentagon with no 
flexibility in terms of procuring two types of equipment that 
are of critical importance to the ability of our troops to 
accomplish their mission and return home safely. The first is 
Kevlar flak jacket inserts otherwise known as body armor. The 
second is portable jammers to block the radio signals used to 
detonate the remote controlled bombs that have been repeatedly 
used to kill and wound our troops. For reasons that the 
committee has yet to determine, the current civilian leaders in 
the Pentagon failed to provide adequate supplies of these two 
types of equipment prior to the U.S. invasion of Iraq and 
further failed to purchase such equipment even after it became 
apparent in June that the shortages were costing American 
lives.
    The Committee bill also eliminates some of the more 
egregious items in the administration's proposed Iraq 
``reconstruction'' package such as the two $50,000 a bed 
prisons, the trash trucks and the business training courses 
that appeared to cost more per pupil than the M.B.A. program at 
Harvard.
    But there are several questions that Members of Congress 
should ask themselves before they vote to send this package to 
the President for final approval.
    1. Does it do as much as it should to support our troops 
and allow them to return home safely?
    2. Does it do as much as it should to restore the readiness 
of the U.S. military to respond to future crises in the Middle 
East or other parts of the world?
    3. Does it provide Iraq with the right kind of assistance 
so that Iraqis can assume control of their own government, 
economy and security as quickly as possible allowing our troops 
to leave the country at the earliest possible date?
    4. Does the package provide for reasonable levels of 
assistance that not only meet the most important needs of the 
people of Iraq but also are balanced in terms of our own budget 
situation and in terms of what we are able to do with respect 
to the pressing needs of communities and people here at home?
    5. Does the package place a fair share of the burden for 
rebuilding Iraq on the shoulders of the American taxpayers?
    6. Should the package be financed by adding its cost to the 
public debt as both the administration and the Committee are 
proposing?
    7. Has the administration finally settled on an underlying 
policy that offers a reasonable chance for the sacrifices being 
demanded of our troops, their families and taxpayer to be met 
with success?
    If any Member feels the answer to all of the above 
questions is yes, then he or she should vote in favor of the 
package that has been reported by Committee. If on the other 
hand he or she feels that the answer to one or more of these 
questions is no, there is an obligation to work toward 
improving the package and oppose its moving forward until the 
improvements are in place. There is no question about the 
desire and determination of members of both parties in this 
Congress to move quickly toward adoption of a package that 
provides the funds needed by our military and supports Iraqi 
reconstruction at a level that will allow our troops to return 
home at the earliest possible date. But if Members fear 
challenging critically flawed provisions, they will fail in 
their responsibilities to both the troops and the taxpayer. 
These are my thoughts on each of the above questions.
    1. With respect to the first question, the Committee 
proposal fails to do a number of extremely important things 
needed to support and protect our troops.

Clean Water

    Probably the most important of these is the failure to 
provide needed water purification equipment to supply U.S. 
troops with clean water. The administration requested this 
equipment for only one of the nine major U.S. bases in Iraq. 
Since most of Iraq is without adequate sewage treatment 
facilities, most of the water available throughout the country 
needs a significant level of purification before it is potable. 
The President's request contains only $15 million for such 
purposes leaving approximately 80% of the troops in Iraq 
without clean water.
    This is both inhumane and stupid. Soldiers suffering from 
dysentery cannot perform their duties. Reports indicate 
numerous instances where entire units have been stricken with 
dysentery. There is nothing that the Congress can do to 
alleviate many of the dangerous and uncomfortable conditions 
with which our troops must contend on a daily basis in Iraq. It 
would be unforgivable if we failed to address one that could be 
easily and inexpensively resolved.

Pre Department Health and Dental Screening

    A second issue that should be addressed is the cost to 
reservists being activated for duty in Iraq of pre deployment 
medical and dental screening. Currently such screening is the 
financial responsibility of the individual reservists. Not only 
should the cost of such screening be paid by the Pentagon on 
the basis of simple fairness, it also should be covered for 
purposes of ensuring the success of the mission. The heavy use 
of Reserve and National Guard troops in Iraq means that many 
older soldiers are being placed in a very difficult and 
physically demanding environment. Sending individuals into that 
environment without the physical capacity to cope with such 
conditions puts both the soldier and the mission at risk.
    It strains the expensive and scarce resources we have for 
providing medical assistance in the field and forces medical 
evacuation of troops unable to meet the difficult challenges 
posed by extreme heat, dust, poor water, lack of sleep and high 
levels of stress.

Extending Post Deployment Health Coverage to Six Months

    An additional issue with respect to Reserve and Guard units 
is the length of health care coverage following their 
deployments. Currently, that coverage lasts for only 60 days. 
The harsh and unusual conditions faced by the troops in Iraq 
make it highly probable that many of the important side effects 
of their deployment will not appear in the first two months 
following their deployment. Coverage should be extended to a 
full six months.

Providing Prepaid Phone Cards

    Most members are aware that many of the soldiers stationed 
in Iraq have had to pay exorbitant telephone bills when they 
have had the rare opportunity to phone home. This supplemental 
can and should insure that there are adequate numbers of 
prepaid phone cards to allow U.S. soldiers to call home when 
they have the opportunity. The Committee bill does not do that.

Covering R&R Transportation Costs

    While we are finally able to allow some troops to return 
home for a short period of rest and relaxation during their 
twelve month deployment, we are not covering the cost of the 
travel beyond the point of their arrival into the United 
States. That too is something that this package could and 
should cover but does not.
    2. The Committee bill fails to take common sense steps to 
repair damaged equipment and leaves our nation's military at an 
unacceptably low state of readiness. The Services estimate that 
the invasion and occupation of Iraq has already placed a very 
heavy toll on the equipment that was deployed for those 
missions. The total cost of reconditioning all of the equipment 
used so far in Iraq exceeds $20 billion.
    While the massive size of the reconditioning efforts 
required makes it impossible to restore all or even most of the 
equipment used in Iraq in the current fiscal year, it is 
remarkable that the administration has requested far less than 
could be used for reconditioning between now and October 1, 
2004. Unfortunately, the Committee also failed to provide the 
funds needed to get reconditioning efforts up to full speed.
    The result of that specific budget decision is that 
thousands of pieces of valuable equipment such as M1 tanks and 
Bradley fighting vehicles, equipment that might be needed 
sooner rather than later, will sit in unusable condition 
throughout this year and well into the next. The capacity of 
our military to sustain itself in theperformance of this 
mission will be placed at risk and our ability to respond to crises 
outside of Iraq will be placed in serious jeopardy.
    3. While the Committee wisely pared back some of the more 
outlandish projects proposed by the Coalition Provisional 
Authority, the bill it is sending to the House does little to 
alter the underlying approach to reconstruction envisaged by 
the CPA. That approach relies on huge contracts with large 
multinational corporations to provide high tech and capital-
intensive construction, training and services to Iraq requiring 
the importation of heavy equipment, highly paid consultants and 
the payment of corporate overhead and profits.
    The consequence of this approach is that the American 
taxpayer will pay more than he or she should; the amount of 
construction or reconstruction that can be preformed within 
available funds will be significantly less than might otherwise 
be accomplished; the development of Iraqi businesses and 
institutions to deal with such problems will be negligible and 
the number of Iraqis who will be employed will be far less than 
could be productively used if less capital-intensive and lower 
tech approaches were followed. In short, we will be paying more 
for fewer results and particularly fewer results with respect 
to employment and other economic changes necessary to bring 
about greater political stability.
    Perhaps the best example of how this approach is bilking 
the taxpayer while inhibiting reconstruction is a recent 
attempt to restore a concrete factory in Northern Iraq. After 
U.S. engineers had estimated that it would cost $15 million to 
bring the factory up to Western standards, Major General David 
Patraeus, Commander of the 101st Airborne Division gave the 
contract to local Iraqis who were able to get the cement plant 
running for just $80,000. In the process, General Patraeus 
stimulated the growth of Iraqi businesses and the ability of 
the country to cope with its own problems through finding its 
own solutions.
    4. Despite the $1.7 billion cut from the Administration's 
request, the Committee provides $18.6 billion for Iraq 
reconstruction and thereby effectively more than doubles U.S. 
foreign aid. The package is not balanced either in terms of 
what we spend in other troubled portions of the world or what 
we are spending to solve problems here at home.
    The amount of money that the administration proposes to 
spend in the coming year for reconstruction of Iraq is so 
massive that it is difficult to place it in perspective.
    While some in the administration have evoked the Marshall 
Plan as a precedent, the request would have us spend ten times 
as much on a per person basis in Iraq in the coming year as we 
spent per year in Europe after World War II even after 
adjusting for inflation.
    The proposal would have us provide more than twice as much 
assistance to Iraq, a country with a per capita income nearly 
four times that of the world's poorestnations, than we provide 
to all the rest of the world. This is in spite of the fact that if all 
of Iraq's 23.5 million people were desperately poor they would still 
constitute less than 1% of such persons on a global basis.
    But the lack of proportionality with the Iraq request is 
also true with respect to the amounts that would be provided 
for infrastructure and training in Iraq compared to similar 
types of investments that the administration is unwilling to 
make here at home. The $3.7 billion requested for sewer and 
water projects in Iraq for instance compares to only slightly 
more than that amount in the federal budget for all of the 
communities and jurisdictions in the United States, a country 
with about 12 times the population.
    5. The Committee bill forces the U.S. taxpayer to cover 
costs for Iraq through direct grants even though Iraq has more 
than $7 trillion in proven and probable oil reserves and is in 
a strong position to repay the sums needed for its own 
reconstruction. The bill does nothing to internationalize the 
burden and encourage other nations to make a contribution.
    All of the $18.6 billion in assistance provided Iraq is 
provided as a direct grant with no obligation to repay. While 
many approaches to providing loans to Iraq are complicated by 
the estimated $100 billion to $200 billion in outstanding debts 
that Iraq may owe to foreign creditors, it is possible for the 
World Bank to lend money to Iraq for reconstruction in the 
context of a debt restructuring agreement. By virtue of that 
agreement, the World Bank would have first claim on Iraqi oil 
earnings.
    Current creditors to Iraq would have a stake in such an 
agreement because the World Bank would provide the resources 
needed to generate the oil revenues necessary for the repayment 
of long-term debt. The unilateral financing of Iraqi 
reconstruction not only places much of the burden for Iraq's 
reconstruction on U.S. taxpayers rather than Iraqis, but also 
provides a disincentive to Iraq creditors to give the World 
Bank or other international lending institutions the 
preeminence in debt restructuring that would be necessary to 
generate new lending.
    An additional advantage of channeling reconstruction aid 
through international lending institutions is that it increases 
the scrutiny over the funding of specific projects and helps to 
insulate the process from the prospect of cronyism that may 
develop when all contracts are controlled by one government 
dominated by one political party.
    6. All of the spending that will result from this $86.9 
billion appropriation will be added to the Public Debt. Our 
children and grandchildren will have to pay that interest every 
year until they find the funds to pay off those loans.
    Based on projections by the Congressional Budget Office, 
interest payments on U.S. treasuries over the next several 
years are likely to average about 5%. That means that on a 
permanent basis we will be spending over $4 billion a year just 
to cover the interest payments that this supplemental will 
require us and future generations to make. To put that in 
perspective, it is more than we currently spend each year for 
research on Alzheimer's disease, autism, breast cancer, ovarian 
cancer, prostate cancer, diabetes, Parkinson's disease, Lou 
Gerhig's disease, multiple sclerosis and all forms of kidney 
disease combined.
    We could quite easily prevent this huge cost from being 
passed on to the next generation by simply returning the top 
income tax bracket to the level it was when George W. Bush was 
inaugurated. High income Americans would still get tax breaks 
as large or larger than those provided to any other income 
group, but they would not get the mega breaks promised in the 
tax measures signed into law the last several years. In total, 
this proposal would generate more than $125 billion in 
additional revenue between now and calendar year 2011. That 
would not only cover the cost of this supplemental, but also at 
least a portion of future Iraq-related military and 
reconstruction costs.
    Some will undoubtedly argue that high-income persons have a 
right to rely on these rate cuts since they have already been 
enacted. But it can also be argued that many guard and reserve 
members had no reason to expect that their lives and careers 
would have been totally disrupted by the lengthy deployments 
that our efforts in Iraq now require. It is important to 
recognize that this effort is imposing consequences beyond what 
was initially expected and that people in all income groups 
should share those consequences.
    7. Even if one concludes that this supplemental adequately 
supports our troops; does all that is necessary to recondition 
equipment necessary for military readiness; provides the right 
reconstruction assistance in the right manner; is balanced and 
proportionate in the assistance it provides to Iraq relative to 
spending here at home and in other needy countries; does not 
place too much burden on American taxpayers and that the 
package should be financed by adding to the public debt, there 
is one additional consideration that thoughtful legislators 
should weigh before they commit themselves to support this 
package. The Administration is still incapable or unwilling to 
articulate a coherent and workable underlying strategy to 
accomplish our mission and bring our troops home. Since the 
power of the purse remains the only effective means that the 
Congress has to ensure for the American people that such a 
strategy exists and that it has a reasonable chance for 
success, support for these funds prior to evidence of such a 
strategy would be an abdication of responsibility.
    During each of the four hearings held before the 
Appropriations subcommittees before reporting this $87 billion 
package, administration witnesses repeatedly stated that they 
could not comment on a time frame for a transition of decision 
making authorities to Iraqi leaders, that they had no idea how 
many troops would be required beyond next September, that they 
could not guess as to whatcontributions in terms of military 
assistance or cash would be forth coming from other nations, that they 
had no idea how much additional Iraqi reconstruction money would be 
requested for fiscal year 2005 or subsequent years, or how the Iraqi 
deployment might affect other long term priorities within the defense 
budget.
    It is clear that if the Congress had more energetically 
exercised its Constitutional responsibilities prior to the 
invasion of Iraq it could have forced the administration to 
make more thoughtful and sober assessments of the costs as well 
as the benefits of the proposed policy and could have brought 
into the open the fact that there was essentially no realistic 
planning for the post invasion phase of the deployment. If the 
Congress allows the current package to move forward without 
more answers than it has now, it is giving up the only 
mechanism the American people have for determining whether the 
current planning is superior to that which brought us to the 
place we now find ourselves and whether or not more realistic 
plans should be formulated before additional assistance is 
taken from the Treasury.

                     OUTLINE OF THE OBEY SUBSTITUTE

    A substitute to the Committee package was offered during 
the markup. The substitute would have done the following:
    1. Reduced total reconstruction grant funds by $4.6 billion 
and added $4.6 billion for a series of military needs:
     $600 million for various quality of life measures 
for our troops including water purification; pre-deployment 
health and dental screening; extension of guard and reserve 
health benefits from 60 days to 6 months after deployment; 
prepaid phone cards; R&R transportation costs and a number of 
other items.
     $3 billion for reconditioning of equipment damaged 
in Iraq. This is on top of the $4 billion already in the bill 
for equipment reconditioning. It is the full amount requested 
by the services and the maximum reconditioning we could 
accomplish over the next twelve months.
     $1 billion to lift the 480,000 cap on Army 
personnel and permit the Army to recruit 20,000 troops or 
approximately one additional division to reduce the strain that 
currently exists on both the regular army and reserve and guard 
units.
    The $4.6 billion reduction in reconstruction could be 
accomplished by reducing reliance on large multinational 
corporate contractors and encouraging the use of local labor 
and be deferring funds for a portion of the large scale 
projects where no construction plan currently exists and the 
ability of the CPA to obligate funds prior to the end of the 
currently fiscal year is highly doubtful.
    2. Divide the remaining $14 billion in reconstruction funds 
into two parts. Seven billion dollars would be provided to the 
CPA for high priority items contained in the request. The other 
$7 billion would be transferred to a Trust Fund at the World 
Bank. World Bank access to those funds would be conditioned on 
contributions from other nations of at least $3.5 billion. The 
resulting $10.5 billion fund would be used as security for the 
sale of an additional $42 billion in World Bank bonds. These 
bonds would be used for Iraq reconstruction. A recent United 
Nations, World Bank assessment of Iraqi infrastructure, 
education, health, private sector and security needs identified 
$54 billion in requirements over the next three years. The 
proposed World Bank trust fund could meet the vast majority of 
those needs without further contributions from the United 
States.
    3. Finally, the proposed substitute was fully paid for by 
returning the tax rate for individuals in the top federal 
income tax bracket (generally people with incomes in excess of 
$350,000) to the 39.6% level that existed in January 2001. 
These individuals would continue to benefit from the rate 
reductions on income at lower levels and would in fact still 
receive tax breaks as large or larger than taxpayers at any 
other income level.
                                                         Dave Obey.

             ADDITIONAL VIEWS OF CONGRESSMAN JOHN P. MURTHA

    The architects of the Iraq war badly miscalculated the 
security, economic, and political challenges the United States 
would face following the end of major conflict. These 
miscalculations have resulted in a heavy price being paid by 
our troops, their families, and the American taxpayer. Let me 
give you some examples:
     I've visited hundreds of our troops in several 
military hospitals and talked to the families of those who died 
in Iraq. For example, recently I visited a young Marine at 
Walter Reed Army Hospital. He had lost his eye, left hand, and 
two fingers from his right hand in an explosion in Iraq as he 
was disarming unexploded bomblets. His left leg ultimately 
required amputation at the kneecap. Every day we see our 
casualties mount and our financial costs grow. The price that 
young Marine paid and we as a Nation are paying is indeed a 
heavy price, yet the architects of this deployment have paid no 
price.
     During a recent trip to Iraq, I learned of severe 
shortages in critical equipment. These included a shortage of 
over 44,000 sets of body armor with life-saving Kevlar inserts, 
radio frequency jammers that prevent the remote detonation of 
bombs, and Kevlar blankets for HMMWVs that provide additional 
protection against injury by mine fragments. Our troops also 
reported that they were in desperate need of up-armored HMMWVs. 
And one-third of the Bradley armored personnel carriers 
possessed by the Army division patrolling the ``Sunni 
Triangle'' were deadlined because there were no spare tracks.
     There have been serious miscalculations in the 
post-war planning with regard to sustaining the troops. Forty-
eight percent of our combat Army troops are currently deployed. 
One-quarter of our Guard and Reserves are currently activated 
and have been ordered to extend their deployments in Iraq from 
six months to one year. Yet, following Operation Desert Storm, 
our allies contributed $51 billion of the total $60 billion 
price tag for that war. The architects of the current 
deployment estimated the United States would receive some $55 
billion in contributions. To date we've received only about 
$1.5 billion; the shortfall leaves virtually the entire cost to 
the United States.
     The degree of resistance to the current occupation 
also surprised the architects. They said we would be greeted 
with ``open arms''. They said we would be able to draw down the 
forces quickly once conflict ended. They did not foresee the 
continuing need for the 130,000 troops that we have stationed 
in Iraq today and did not anticipate that mines and rocket-
propelled grenade attacks would require Bradley fighting 
vehicles to escort every convoy running from Kuwait to Iraq.
     Secretary Rumsfeld recently said, ``I don't think 
people really fully understood how devastating that regime was 
to the infrastructure of that country, how fragile the electric 
system is, how poorly the water is being managed.'' The 
architects of the post-war plan should have placed greater 
emphasis on obtaining such vital information. They should have 
known.
     Four months now from the `official' end of major 
conflict, there is about 60 percent unemployment in Iraq, 
compared to 40 percent prior to the war. Areas of Iraq have 
one-third less electricity, and the oil production is only one-
quarter of what it was prior to the war. Deputy Secretary of 
Defense Paul Wolfowitz, one of the architects of the war, 
completely miscalculated the degree to which oil revenues would 
finance the reconstruction of Iraq when he told Congress in 
March 2003, ``We are dealing with a country that can really 
finance its own reconstruction and relatively soon.''
    The architects should have known.
    President George H.W. Bush said in A World Transformed, 
``Trying to eliminate Saddam, extending the ground war into the 
occupation of Iraq, would have violated our guideline about not 
changing objectives in midstream, engaging in mission creep, 
and would have incurred incalculable human and political costs 
* * * Apprehending him was probably impossible. We had not been 
able to find Noriega in Panama, which we knew intimately. We 
would have been forced to occupy Baghdad and, in effect, rule 
Iraq.''
    General John Abizaid, Commander of CENTCOM, told me during 
one of my visits to the Middle East prior to the war, 
``Indications are that the military problem will not be as 
tough as the aftermath.''
    Former Secretary of the Army Thomas White was right on the 
mark when he said, ``Clearly the view that the war to liberate 
Iraq would instantly produce a pro-United States citizenry, 
ready for economic and political rebirth, ignored the harsh 
realities on the ground.''
    If we hope to receive meaningful international support, if 
we hope to quickly energize Iraq, and if we hope to 
``Iraqatize'' the civil and private sectors there, the 
Administration must hold accountable the people who were 
responsible for these gross miscalculations. In the meantime, 
the United States, the Iraqi people, and the international 
community must work to undue the damage done by the architects' 
miscalculations and quickly stabilize Iraq. Otherwise, we could 
face a long and more costly guerrilla war--a heavy price for 
our soldiers and their families to pay.
                                                    John P. Murtha.

                                
