[House Report 108-337]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-337

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

 
 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 30, 2003.--Ordered to be printed

                                _______
                                

 Mr. Young of Florida, from the committee of conference, submitted the 
                               following

                           CONFERENCE REPORT

                        [To accompany H.R. 3289]

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

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

                       TITLE I--NATIONAL SECURITY

                               CHAPTER 1

                    DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

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

                        Military Personnel, Navy

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

                    Military Personnel, Marine Corps

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

                     Military Personnel, Air Force

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

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

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

                    Operation and Maintenance, Navy

                     (INCLUDING TRANSFER OF FUNDS)

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

                Operation and Maintenance, Marine Corps

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

                  Operation and Maintenance, Air Force

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

                Operation and Maintenance, Defense-Wide

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

            Operation and Maintenance, Marine Corps Reserve

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

              Operation and Maintenance, Air Force Reserve

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

             Operation and Maintenance, Air National Guard

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

             Overseas Humanitarian, Disaster, and Civic Aid

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

                           Iraq Freedom Fund

                     (INCLUDING TRANSFER OF FUNDS)

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

                              PROCUREMENT

        Procurement of Weapons and Tracked Combat Vehicles, Army

    For an additional amount for ``Procurement of Weapons and 
Tracked Combat Vehicles, Army'', $101,600,000, to remain 
available until September 30, 2006.

                        Other Procurement, Army

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

                       Aircraft Procurement, Navy

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

                        Other Procurement, Navy

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

                       Procurement, Marine Corps

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

                    Aircraft Procurement, Air Force

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

                     Missile Procurement, Air Force

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

                      Other Procurement, Air Force

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

                       Procurement, Defense-Wide

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

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Navy

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

         Research, Development, Test and Evaluation, Air Force

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

        Research, Development, Test and Evaluation, Defense-Wide

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

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

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

                     National Defense Sealift Fund

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

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

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

         Drug Interdiction and Counter-Drug Activities, Defense

                     (INCLUDING TRANSFER OF FUNDS)

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

                            RELATED AGENCIES

               Intelligence Community Management Account

                     (INCLUDING TRANSFER OF FUNDS)

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

                    GENERAL PROVISIONS, THIS CHAPTER

                          (TRANSFER OF FUNDS)

    Sec. 1101. Upon his determination that such action is 
necessary in the national interest, the Secretary of Defense 
may transfer between appropriations up to $3,000,000,000 of the 
funds made available to the Department of Defense in this 
chapter: Provided, That the Secretary shall notify the Congress 
promptly of each transfer made pursuant to this authority: 
Provided further, That the transfer authority provided in this 
section is in addition to any other transfer authority 
available to the Department of Defense: Provided further, That 
the authority in this section is subject to the same terms and 
conditions as the authority provided in section 8005 of the 
Department of Defense Appropriations Act, 2004, except for the 
fourth proviso.
    Sec. 1102. Funds appropriated in this Act, or made 
available by the transfer of funds in or pursuant to this Act, 
for intelligence activities are deemed to be specifically 
authorized by the Congress for purposes of section 504 of the 
National Security Act of 1947 (50 U.S.C. 414).
    Sec. 1103. Sections 1318 and 1319 of the Emergency Wartime 
Supplemental Appropriations Act, 2003 (Public Law 108-11; 117 
Stat. 571), shall remain in effect during fiscal year 2004.
    Sec. 1104. From October 1, 2003, through September 30, 
2004, (a) the rates of pay authorized by section 310(a) of 
title 37, United States Code, shall be $225; and (b) the rates 
of pay authorized by section 427(a)(1) of title 37, United 
States Code, shall be $250.
    Sec. 1105. Defense Emergency Response Fund Close-Out 
Authority.--(a) Section 1313 of the Emergency Wartime 
Supplemental Appropriations Act, 2003 (Public Law 108-11; 117 
Stat. 569), is amended by inserting ``unobligated'' before 
``balances''.
    (b) Effective November 1, 2003, adjustments to obligations 
that before such date would have been properly chargeable to 
the Defense Emergency Response Fund shall be charged to any 
current appropriations account of the Department of Defense 
available for the same purpose.
    Sec. 1106. During the current fiscal year, funds available 
to the Department of Defense for operation and maintenance may 
be used, notwithstanding any other provision of law, to provide 
supplies, services, transportation, including airlift and 
sealift, and other logistical support to coalition forces 
supporting military and stability operations in Iraq: Provided, 
That the Secretary of Defense shall provide quarterly reports 
to the congressional defense committees regarding support 
provided under this section.
    Sec. 1107. Notwithstanding any other provision of law, from 
funds made available in this Act to the Department of Defense 
under ``Operation and Maintenance, Defense-Wide'', not to 
exceed $150,000,000 may be used by the Secretary of Defense, 
with the concurrence of the Secretary of State, to provide 
assistance only to the New Iraqi Army and the Afghan National 
Army to enhance their capability to combat terrorism and to 
support U.S. military operations in Iraq and Afghanistan: 
Provided, That such assistance may include the provision of 
equipment, supplies, services, training and funding: Provided 
further, That the authority to provide assistance under this 
section is in addition to any other authority to provide 
assistance to foreign nations: Provided further, That the 
Secretary of Defense shall notify the congressional defense 
committees not less than 15 days before providing assistance 
under the authority of this section.
    Sec. 1108. None of the funds provided in this chapter may 
be used to finance programs or activities denied by Congress in 
fiscal year 2004 appropriations to the Department of Defense or 
to initiate a procurement or research, development, test and 
evaluation new start program without prior notification to the 
congressional defense committees.
    Sec. 1109. In addition to amounts made available elsewhere 
in this Act, there is hereby appropriated to the Department of 
Defense $313,000,000, to be used only for recovery and repair 
of damage due to natural disasters including Hurricane Isabel, 
to be distributed as follows:
            ``Operation and Maintenance, Army'', $47,100,000;
            ``Operation and Maintenance, Navy'', $87,600,000;
            ``Operation and Maintenance, Marine Corps'', 
        $6,700,000;
            ``Operation and Maintenance, Air Force'', 
        $169,300,000; and
            ``Other Procurement, Air Force'', $2,300,000.
    Sec. 1110. During the current fiscal year, from funds made 
available in this Act to the Department of Defense for 
operation and maintenance, not to exceed $180,000,000 may be 
used, notwithstanding any other provision of law, to fund the 
Commander's Emergency Response Program, established by the 
Administrator of the Coalition Provisional Authority for the 
purpose of enabling military commanders in Iraq to respond to 
urgent humanitarian relief and reconstruction requirements 
within their areas of responsibility by carrying out programs 
that will immediately assist the Iraqi people, and to establish 
and fund a similar program to assist the people of Afghanistan: 
Provided, That the Secretary of Defense shall provide quarterly 
reports, beginning on January 15, 2004, to the congressional 
defense committees regarding the source of funds and the 
allocation and use of funds made available pursuant to the 
authority provided in this section.
    Sec. 1111. Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report describing an 
Analysis of Alternatives for replacing the capabilities of the 
existing Air Force fleet of KC-135 tanker aircraft.

ENHANCEMENTS TO EXEMPTION FOR MEMBERS WITH COMBAT-RELATED INJURIES FROM 
   REQUIREMENT FOR PAYMENT OF SUBSISTENCE CHARGES WHILE HOSPITALIZED

    Sec. 1112. (a) Exemption Made Permanent.--Subsection (c) of 
section 1075 of title 10, United States Code (as added by 
section 8146(a)(2) of the Department of Defense Appropriations 
Act, 2004 (Public Law 108-87)), is repealed.
    (b) Retroactivity.--Subsection (b) of section 8146 of the 
Department of Defense Appropriations Act, 2004 (Public Law 108-
87), is amended to read as follows:
    ``(b) Effective Date.--(1) Subsection (b)(2) of section 
1075 of title 10, United States Code, as added by subsection 
(a), shall apply with respect to any period of hospitalization 
on or after September 11, 2001, because of an injury covered by 
that subsection that is incurred on or after that date.
    ``(2) The Secretary concerned (as defined in section 101 of 
title 37, United States Code) shall take such action as 
necessary to implement paragraph (1), including--
            ``(A) refunding any amount previously paid under 
        section 1075 of title 10, United States Code, by a 
        person who, by reason of paragraph (1), is not required 
        to make such payment; and
            ``(B) waiving recovery of any unpaid amount for 
        which a person has previously been charged under that 
        section and which that person, by reason of paragraph 
        (1), is not required to pay.''.
    Sec. 1113. None of the funds available to the Department of 
Defense may be obligated to implement any action which alters 
the command responsibility or permanent assignment of forces 
until 270 days after such plan has been provided to the 
congressional defense committees.
    Sec. 1114. Section 1074a of title 10, United States Code, 
is amended by adding at the end the following new subsection:
    ``(f)(1) At any time after the Secretary concerned notifies 
members of the Ready Reserve that the members are to be called 
or ordered to active duty, the administering Secretaries may 
provide to each such member any medical and dental screening 
and care that is necessary to ensure that the member meets the 
applicable medical and dental standards for deployment.
    ``(2) The Secretary concerned shall promptly transmit to 
each member of the Ready Reserve eligible for screening and 
care under this subsection a notification of eligibility for 
such screening and care.
    ``(3) A member provided medical or dental screening or care 
under paragraph (1) may not be charged for the screening or 
care.
    ``(4) Screening and care may not be provided under this 
section after September 30, 2004.''.
    Sec. 1115. (a) Chapter 55 of title 10, United States Code, 
is amended by inserting after section 1076a the following new 
section:

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

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

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

    Sec. 1116. Section 1074 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d)(1) For the purposes of this chapter, a member of a 
reserve component of the armed forces who is issued a delayed-
effective-date active-duty order, or is covered by such an 
order, shall be treated as being on active duty for a period of 
more than 30 days beginning on the later of the date that is--
            ``(A) the date of the issuance of such order; or
            ``(B) 90 days before date on which the period of 
        active duty is to commence under such order for that 
        member.
    ``(2) In this subsection, the term `delayed-effective-date 
active-duty order' means an order to active duty for a period 
of more than 30 days in support of a contingency operation 
under a provision of law referred to in section 101(a)(13)(B) 
of this title that provides for active-duty service to begin 
under such order on a date after the date of the issuance of 
the order.
    ``(3) This section shall cease to be effective on September 
30, 2004.''.
    Sec. 1117. (a) Subject to subsection (b), during the period 
beginning on the date of the enactment of this Act and ending 
on September 30, 2004, section 1145(a) of title 10, United 
States Code, shall be administered by substituting for 
paragraph (3) the following:
    ``(3) Transitional health care for a member under 
subsection (a) shall be available for 180 days beginning on the 
date on which the member is separated from active duty.''.
    (b)(1) Subsection (a) shall apply with respect to 
separations from active duty that take effect on or after the 
date of the enactment of this Act.
    (2) Beginning on October 1, 2004, the period for which a 
member is provided transitional health care benefits under 
section 1145(a) of title 10, United States Code, shall be 
adjusted as necessary to comply with the limits provided under 
paragraph (3) of such section.
    Sec. 1118. (a) At the time members of reserve components of 
the Armed Forces are called or ordered to active duty under 
Section 12302(a) of title 10, United States Code, each member 
shall be notified in writing of the expected period during 
which the member will be mobilized.
    (b) The Secretary of Defense may waive the requirements of 
subsection (a) in any case in which the Secretary determines 
that it is necessary to do so to respond to a national security 
emergency or to meet dire operational requirements of the Armed 
Forces.
    Sec. 1119. The authority to utilize funds appropriated for 
fiscal year 2003 for purposes provided by the first clause of 
section 1314(1) of Public Law 108-11, shall apply to the 
utilization of available funds appropriated for fiscal year 
2004 for such purposes.
    Sec. 1120. (a) Not later than April 30 and October 31 of 
each year, the Secretary of Defense shall submit to Congress a 
report on the military operations of the Armed Forces and the 
reconstruction activities of the Department of Defense in Iraq 
and Afghanistan.
    (b) Each report shall include the following information:
            (1) For each of Iraq and Afghanistan for the half-
        fiscal year ending during the month preceding the due 
        date of the report, the amount expended for military 
        operations of the Armed Forces and the amount expended 
        for reconstruction activities, together with the 
        cumulative total amounts expended for such operations 
        and activities.
            (2) An assessment of the progress made toward 
        preventing attacks on United States personnel.
            (3) An assessment of the effects of the operations 
        and activities in Iraq and Afghanistan on the readiness 
        of the Armed Forces.
            (4) An assessment of the effects of the operations 
        and activities in Iraq and Afghanistan on the 
        recruitment and retention of personnel for the Armed 
        Forces.
            (5) For the half-fiscal year ending during the 
        month preceding the due date of the report, the costs 
        incurred for repair of Department of Defense equipment 
        used in the operations and activities in Iraq and 
        Afghanistan.
            (6) The foreign countries, international 
        organizations, and nongovernmental organizations that 
        are contributing support for the ongoing military 
        operations and reconstruction activities, together with 
        a discussion of the amount and types of support 
        contributed by each during the half-fiscal year ending 
        during the month preceding the due date of the report.
            (7) The extent to which, and the schedule on which, 
        the Selected Reserve of the Ready Reserve of the Armed 
        Forces is being involuntarily ordered to active duty 
        under section 12304 of title 10, United States Code.
            (8) For each unit of the National Guard of the 
        United States and the other reserve components of the 
        Armed Forces on active duty pursuant to an order to 
        active duty under section 12304 of title 10, United 
        States Code, the following information:
                    (A) The unit.
                    (B) The projected date of return of the 
                unit to its home station.
                    (C) The extent (by percentage) to which the 
                forces deployed within the United States and 
                outside the United States in support of a 
                contingency operation are composed of reserve 
                component forces.
    Sec. 1121. In addition to amounts made available elsewhere 
in this Act, there is hereby appropriated to the Department of 
Defense $100,000,000, for ``Operation and Maintenance, Army'': 
Provided, That these funds are available only for the purpose 
of securing and destroying conventional munitions in Iraq, such 
as bombs, bomb materials, small arms, rocket propelled 
grenades, and shoulder-launched missiles.

                               CHAPTER 2

                    DEPARTMENT OF HOMELAND SECURITY

                       United States Coast Guard

                           OPERATING EXPENSES

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

                  Emergency Preparedness and Response

                            DISASTER RELIEF

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

                    GENERAL PROVISION, THIS CHAPTER

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

                               CHAPTER 3

                         MILITARY CONSTRUCTION

                      Military Construction, Army

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

                      Military Construction, Navy

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

                    Military Construction, Air Force

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

             Family Housing Operation and Maintenance, Army

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

    Family Housing Operation and Maintenance, Navy and Marine Corps

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

          Family Housing Operation and Maintenance, Air Force

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

                    GENERAL PROVISION, THIS CHAPTER

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

    TITLE II--IRAQ AND AFGHANISTAN RECONSTRUCTION AND INTERNATIONAL 
                               ASSISTANCE

                               CHAPTER 1

                         DEPARTMENT OF JUSTICE

                            Legal Activities

                        GENERAL LEGAL ACTIVITIES

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

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    DIPLOMATIC AND CONSULAR PROGRAMS

                         (INCLUDING RESCISSION)

    For necessary expenses for ``Diplomatic and Consular 
Programs'', $156,300,000, of which $35,800,000 shall remain 
available until September 30, 2006.
    Of the funds appropriated under this heading in the 
Emergency Wartime Supplemental Appropriations Act, 2003, 
$35,800,000 are rescinded.

            EMBASSY SECURITY, CONSTRUCTION, AND MAINTENANCE

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

           EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

                     (INCLUDING TRANSFER OF FUNDS)

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

                      International Organizations

        CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

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

                             RELATED AGENCY

                    Broadcasting Board of Governors

                 INTERNATIONAL BROADCASTING OPERATIONS

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

                    GENERAL PROVISION--THIS CHAPTER

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

                               CHAPTER 2

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

           United States Agency for International Development

   Operating Expenses of the United States Agency for International 
                              Development

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

                        CAPITAL INVESTMENT FUND

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

                  OTHER BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                  IRAQ RELIEF AND RECONSTRUCTION FUND

                     (INCLUDING TRANSFERS OF FUNDS)

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

       Operating Expenses of the Coalition Provisional Authority

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

                         Economic Support Fund

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

              International Disaster and Famine Assistance

                     (INCLUDING TRANSFERS OF FUNDS)

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

                          DEPARTMENT OF STATE

          International Narcotics Control and Law Enforcement

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

    Nonproliferation, Anti-Terrorism, Demining and Related Programs

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

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

                   Foreign Military Financing Program

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

                        Peacekeeping Operations

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

                    GENERAL PROVISIONS, THIS CHAPTER

    Sec. 2201. None of the funds appropriated by this Act or 
any unexpended funds provided in Public Law 108-11 may be used 
to repay, in whole or in part, principal or interest on any 
loan or guarantee agreement entered into by the Government of 
Iraq with any private or public sector entity including with 
the government of any country (including any agency of such 
government or any entity owned in whole or in part by the 
government of such country) or with any international financial 
institution, prior to May 1, 2003: Provided, That for the 
purpose of this section, the term ``international financial 
institution'' shall mean those institutions contained in 
section 530(b) of division E of Public Law 108-7.
    Sec. 2202 (a) Notwithstanding any other provision of law, 
none of the funds appropriated by this Act under the heading 
``Iraq Relief and Reconstruction Fund'' and under the same 
heading in Public Law 108-11 may be used for entering into any 
Federal contract (including follow-on contract) using other 
than full and open competition, except in accordance with the 
Federal Property and Administrative Procedures Act (41 U.S.C. 
251 et seq.), and any exception, if deemed necessary, shall be 
only upon the written approval of the Administrator of the 
Coalition Provisional Authority and the head of the executive 
agency of the United States awarding and managing such contract 
and such authority shall not be delegated.
    (b) In any case in which procedures other than full and 
open competitive procedures are to be used to enter into a 
contract, the Administrator of the Coalition Provisional 
Authority or the head of such executive agency of the United 
States shall submit not later than 7 calendar days before the 
award of the contract a notification to the Committees on 
Appropriations, and the Committees on Government Reform and 
International Relations of the House of Representatives, and 
the Committees on Governmental Affairs and Foreign Relations of 
the Senate. Such notification shall provide the justification 
for use of other than full and open competitive procedures, a 
brief description of the contract's scope, the amount of the 
contract, a discussion of how the contracting agency identified 
and solicited offers from contractors, a list of the 
contractors solicited, and the justification and approval 
documents (as required under section 303(f)(1) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
253(f)(1)) on which was based the determination of use of 
procedures other than full and open competitive procedures.
    (c)(1) This section shall not apply to contracts of less 
than $5,000,000.
    (2) This section also shall apply to any extension, 
amendment or modification of contracts entered into prior to 
the enactment of this Act using other than full and open 
competitive procedures using Iraq Relief and Reconstruction 
Funds in this Act and under Public Law 108-11 or funds made 
available in prior Foreign Operations, Export Financing and 
Related Programs Appropriations Acts.
    (3) This section shall not apply to contracts authorized by 
the Small Business Act (15 U.S.C. 631 et seq.).
    Sec. 2203. (a) Disclosure Required.--
            (1) Publication and public availability.--The 
        Administrator of the Coalition Provisional Authority or 
        the head of an executive agency of the United States 
        that enters into a contract for assistance for Iraq, 
        using funds described in paragraph (2), through the use 
        of other than full and open competitive procedures, 
        shall publish in the Federal Register or Federal 
        Business Opportunities, and otherwise make available to 
        the public, including publication on the Coalition 
        Provisional Authority's website, not later than 7 days 
        before the date on which the contract is entered into, 
        the following information:
                    (A) The amount of the contract.
                    (B) A brief description of the scope of the 
                contract.
                    (C) A discussion of how the executive 
                agency and, when applicable, the Coalition 
                Provisional Authority, identified, and 
                solicited offers from, potential contractors to 
                perform the contract, together with a list of 
                the potential contractors that were issued 
                solicitations for the offers.
                    (D) The justification and approval 
                documents (as required under section 303(f)(1) 
                of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253(f)(1)) on 
                which was based the determination to use 
                procedures other than competitive procedures.
            (2) Funds.--The funds referred to in paragraph (1) 
        are any funds under the heading ``Iraq Relief and 
        Reconstruction Fund'' in this Act, and under the same 
        heading in Public Law 108-11.
            (3) Applicability.--
                    (A) This section shall also apply to any 
                extension, amendment or modification of 
                contracts entered into prior to the enactment 
                of this Act using other than full and open 
                competitive procedures using Iraq Relief and 
                Reconstruction Funds in this Act and under 
                Public Law 108-11 or funds made available in 
                prior Foreign Operations, Export Financing and 
                Related Programs Appropriations Acts.
                    (B) This section shall not apply to 
                contracts of less than $5,000,000.
                    (C) This section shall not apply to 
                contracts authorized by the Small Business Act 
                (15 U.S.C. 631 et seq.).
    (b) Classified Information.--
            (1) Authority to withhold.--The head of an 
        executive agency may--
                    (A) withhold from publication and 
                disclosure under subsection (a) any document 
                that is classified for restricted access in 
                accordance with an Executive order in the 
                interest of national defense or foreign policy; 
                and
                    (B) redact any part so classified that is 
                in a document not so classified before 
                publication and disclosure of the document 
                under subsection (a).
            (2) Availability to congress.--In any case in which 
        the head of an executive agency withholds information 
        under paragraph (1), the head of such executive agency 
        shall make available an unredacted version of the 
        document containing that information to the chairman 
        and ranking member of each of the following committees 
        of Congress:
                    (A) The Committee on Governmental Affairs 
                of the Senate and the Committee on Government 
                Reform of the House of Representatives.
                    (B) The Committees on Appropriations of the 
                Senate and the House of Representatives.
                    (C) Each committee that the head of the 
                executive agency determines has legislative 
                jurisdiction for the operations of such 
                department or agency to which the information 
                related.
    (c) Relationship to Other Disclosure Laws.--Nothing in this 
section shall be construed as affecting obligations to disclose 
United States Government information under any other provision 
of law.
    (d) Definitions.--In this section and section 2202 of this 
Act, the terms ``full and open competitive procedures'' and 
``executive agency'' have the meanings given such terms in 
section 4 of the Office of Federal Procurement Policy Act (41 
U.S.C. 403).
    Sec. 2204. Section 1503 of Public Law 108-11 is amended--
            (1) by striking ``equipment'' and inserting in lieu 
        thereof ``equipment, including equipment''; and
            (2) by striking ``2004'' and inserting in lieu 
        thereof ``2005''.
    Sec. 2205. Section 1504 of Public Law 108-11 is amended 
by--
            (1) in the first proviso, striking the first 
        proviso, and inserting in lieu thereof: ``Provided, 
        That, subject to the notification requirements of this 
        section, exports may be authorized of lethal military 
        equipment designated by the Secretary of State for use 
        by a reconstituted (or interim) Iraqi military or 
        police force, and of small arms designated by the 
        Secretary of State for use for private security 
        purposes:''; and
            (2) in the last proviso, striking ``2004'' and 
        inserting in lieu thereof ``2005''.
    Sec. 2206. Section 202(b) of the Afghanistan Freedom 
Support Act of 2002 (Public Law 107-327) is amended by striking 
``$300,000,000'' and inserting in lieu thereof 
``$450,000,000''.
    Sec. 2207. (a) The Director of the Office of Management and 
Budget, in consultation with the Administrator of the Coalition 
Provisional Authority (CPA) and the Committees on 
Appropriations, shall submit to the Committees on 
Appropriations not later than January 5, 2004 and prior to the 
initial obligation of funds appropriated by this Act under the 
heading ``Iraq Relief and Reconstruction Fund'' a report on the 
proposed uses of all funds under this heading on a project-by-
project basis, for which the obligation of funds is anticipated 
during the 3 month period from such date, including estimates 
by the CPA of the costs required to complete each such project: 
Provided, That up to 20 percent of funds appropriated under 
such heading may be obligated before the submission of the 
report: Provided further, That in addition such report shall 
include the following:
            (1) The use of all funds on a project-by-project 
        basis for which funds appropriated under such heading 
        were obligated prior to the submission of the report, 
        including estimates by the CPA of the costs required to 
        complete each project.
            (2) The distribution of duties and responsibilities 
        regarding such projects among the agencies of the 
        United States Government.
            (3) Revenues to the CPA attributable to or 
        consisting of funds provided by foreign governments and 
        international organizations, disaggregated by donor, 
        any obligations or expenditures of such revenues, and 
        the purpose of such obligations and expenditures.
            (4) Revenues to the CPA attributable to or 
        consisting of foreign assets seized or frozen, any 
        obligations or expenditures of such revenues, and the 
        purpose of such obligations and expenditures.
    (b) Any proposed new projects and increases in funding of 
ongoing projects shall be reported to the Committees on 
Appropriations in accordance with regular notification 
procedures.
    (c) The report required by subsection (a) shall be updated 
and submitted to the Committees on Appropriations every 3 
months and shall include information on how the estimates and 
assumptions contained in previous reports have changed.
    (d) The requirements of this section shall expire on 
October 1, 2007.
    Sec. 2208. Any reference in this chapter to the ``Coalition 
Provisional Authority in Iraq'' or the ``Coalition Provisional 
Authority'' shall be deemed to include any successor United 
States Government entity with the same or substantially the 
same authorities and responsibilities as the Coalition 
Provisional Authority in Iraq.
    Sec. 2209. Assistance or other financing under chapter 2 of 
this title may be provided for Iraq and Afghanistan 
notwithstanding any other provision of law not contained in 
this Act that restricts assistance to foreign countries and 
section 660 of the Foreign Assistance Act of 1961: Provided, 
That funds made available for Iraq pursuant to the authority of 
this section shall be subject to the regular reprogramming 
notification procedures of the Committees on Appropriations and 
section 634A of the Foreign Assistance Act of 1961, except that 
notification shall be transmitted at least 5 days in advance of 
obligation.
    Sec. 2210. Funds made available in chapter 2 of this title 
are made available notwithstanding section 10 of Public Law 91-
672 and section 15 of the State Department Basic Authorities 
Act of 1956, as amended.
    Sec. 2211. Notwithstanding any other provision of law, the 
Overseas Private Investment Corporation is authorized to 
undertake any program authorized by title IV of the Foreign 
Assistance Act of 1961 in Iraq: Provided, That funds made 
available pursuant to the authority of this section shall be 
subject to the regular reprogramming notification procedures of 
the Committees on Appropriations.
    Sec. 2212. In addition to transfer authority otherwise 
provided in chapter 2 of this title, any appropriation made 
available in chapter 2 of this title may be transferred between 
such appropriations, to be available for the same purposes and 
the same time as the appropriation to which transferred: 
Provided, That the total amount transferred pursuant to this 
section shall not exceed $100,000,000: Provided further, That 
the Secretary of State shall consult with the Committees on 
Appropriations prior to exercising the authority contained in 
this section: Provided further, That funds made available 
pursuant to the authority of this section shall be subject to 
the regular notification procedures of the Committees on 
Appropriations, except that notification shall be transmitted 
at least 10 days in advance of the obligation of funds.
    Sec. 2213. Public Law 107-57 is amended--
            (1) in section 1(b), by striking ``2003'' wherever 
        appearing (including in the caption), and inserting in 
        lieu thereof ``2004'';
            (2) in section 3(2), by striking ``Foreign 
        Operations, Export Financing, and Related Programs 
        Appropriations Act, 2002, as is'' and inserting in lieu 
        thereof ``annual foreign operations, export financing, 
        and related programs appropriations Acts for fiscal 
        years 2002, 2003, and 2004, as are''; and
            (3) in section 6, by striking ``2003'' and 
        inserting in lieu thereof ``2004''.
    Sec. 2214. The Afghanistan Freedom Support Act of 2002 
(Public Law 107-327), is amended in section 108(a), by striking 
``$425,000,000 for each of the fiscal years 2003 through 2006'' 
and inserting in lieu thereof ``$1,825,000,000 for fiscal year 
2004 and $425,000,000 for each of fiscal years 2005 and 2006''.
    Sec. 2215. Reports on Iraq and Afghanistan. (a)(1) The 
Coalition Provisional Authority (CPA) shall, on a monthly basis 
until September 30, 2006, submit a report to the Committees on 
Appropriations which details, for the preceding month, Iraqi 
oil production and oil revenues, and uses of such revenues.
    (2) The first report required by this subsection shall be 
submitted not later than 30 days after enactment of this Act.
    (3) The reports required by this subsection shall also be 
made publicly available in both English and Arabic, including 
through the CPA's Internet website.
    (b) The Secretary of State, in consultation with the heads 
of other relevant Federal agencies, shall submit a report to 
the Committees on Appropriations not later than 90 days after 
enactment of this Act detailing:
            (1) the amount of debt incurred by the Government 
        of Saddam Hussein in Iraq, the impact forgiveness of 
        such debt would have on reconstruction and long-term 
        prosperity in Iraq, and the estimated amount that Iraq 
        will pay, or that will be paid on behalf of Iraq, to a 
        foreign country to service such debt during fiscal year 
        2004;
            (2) the efforts of the Government of the United 
        States to increase resources contributed by foreign 
        countries and international organizations, including 
        the United Nations, to the reconstruction and 
        rehabilitation of Iraq and to increase international 
        participation in peacekeeping and security efforts in 
        Iraq;
            (3) the manner in which the needs of people with 
        disabilities are being addressed in the development and 
        implementation of programs, projects and activities 
        funded by the United States Government in Iraq and 
        Afghanistan;
            (4) the progress being made toward indicting and 
        trying leaders of the former Iraqi regime for war 
        crimes, genocide, and crimes against humanity; and
            (5) the efforts of relevant Iraqi officials and 
        legal advisors to ensure that a new Iraqi constitution 
        preserves religious freedom and tolerance of all 
        faiths.
    (c) Title III of Public Law 107-327 is amended as follows 
by inserting the following new section:

``SEC. 304. REPORTS.

    ``The Secretary of State shall submit reports to the 
Committees on Foreign Relations and Appropriations of the 
Senate, and the Committees on International Relations and 
Appropriations of the House of Representatives on progress made 
in accomplishing the `Purposes of Assistance' set forth in 
section 102 of this Act utilizing assistance provided by the 
United States for Afghanistan. The first report shall be 
submitted no later than December 31, 2003, and subsequent 
reports shall be submitted in conjunction with reports required 
under section 303 of this title and thereafter through December 
31, 2004.''.
    Sec. 2216. None of the funds appropriated or otherwise made 
available under chapter 2 of title II of this Act may be 
obligated or expended for any activity in contravention of 
Articles 1 and 4 of the Optional Protocol to the Convention on 
the Rights of the Child on the Involvement of Children in Armed 
Conflicts.
    Sec. 2217. Participation of Women in Afghanistan and Iraq 
Reconstruction. (a) Governance.--Activities carried out by the 
United States with respect to the civilian governance of 
Afghanistan and Iraq shall, to the maximum extent practicable--
            (1) include the perspectives and advice of women's 
        organizations in Afghanistan and Iraq, respectively;
            (2) promote the high level participation of women 
        in future legislative bodies and ministries and ensure 
        that human rights for women are upheld in any 
        constitution or legal institution of Afghanistan and 
        Iraq, respectively.
    (b) Post-Conflict Reconstruction and Development.--
Activities carried out by the United States with respect to 
post-conflict stability in Afghanistan and Iraq shall, to the 
maximum extent practicable--
            (1) encourage the United States organizations that 
        receive funds made available by this Act to provide 
        significant financial resources, technical assistance 
        and capacity building to counterpart organizations led 
        by Afghans and Iraqis, respectively;
            (2) increase the access of women to, or ownership 
        by women of, productive assets such as land, water, 
        agricultural inputs, credit, and property in 
        Afghanistan and Iraq, respectively;
            (3) provide long-term financial assistance for 
        education for girls and women in Afghanistan and Iraq, 
        respectively; and
            (4) integrate education and training programs for 
        former combatants in Afghanistan and Iraq, 
        respectively, with economic development programs to--
                    (A) encourage the reintegration of such 
                former combatants into society; and
                    (B) promote post-conflict stability in 
                Afghanistan and Iraq, respectively.
    (c) Military and Police.--Activities carried out by the 
United States with respect to training for military and police 
forces in Afghanistan and Iraq shall include training, designed 
in consultation with women's organizations in Afghanistan and 
Iraq, respectively, on the protection, rights, and particular 
needs of women.

  TITLE III--INSPECTOR GENERAL OF THE COALITION PROVISIONAL AUTHORITY.

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

    (a) Purposes.--The purposes of this section are as follows:
            (1) To provide for the independent and objective 
        conduct and supervision of audits and investigations 
        relating to the programs and operations of the 
        Coalition Provisional Authority (CPA).
            (2) To provide for the independent and objective 
        leadership and coordination of, and recommendations on, 
        policies designed to--
                    (A) promote economy efficiency, and 
                effectiveness in the administration of such 
                programs and operations; and
                    (B) prevent and detect fraud and abuse in 
                such programs and operations.
            (3) To provide for an independent and objective 
        means of keeping the head of the Coalition Provisional 
        Authority fully and currently informed about problems 
        and deficiencies relating to the administration of such 
        programs and operations and the necessity for and 
        progress for corrective action.
    (b) Office of Inspector General.--There is hereby 
established the Office of the Inspector General of the 
Coalition Provisional Authority.
    (c) Appointment of Inspector General; Removal.--(1) The 
head of the Office of the Inspector General of the Coalition 
Provisional Authority is the Inspector General of the Coalition 
Provisional Authority, who shall be appointed by the Secretary 
of Defense, in consultation with the Secretary of State.
    (2) The appointment of Inspector General shall be made 
solely on the basis of integrity and demonstrated ability in 
accounting, auditing, financial analysis, law, management 
analysis, public administration, or investigations.
    (3) The nomination of an individual as Inspector General 
shall be made not later than 30 days after the date of the 
enactment of this Act.
    (4) The Inspector General shall be removable from office in 
accordance with the provisions of section 3(b) of the Inspector 
General Act of 1978 (5 U.S.C. App.).
    (5) For purposes of section 7324 of title 5, United States 
Code, the Inspector General shall not be considered an employee 
who determines policies to be pursued by the United States in 
the nationwide administration of Federal law.
    (6) The annual rate of basic pay of the Inspector General 
shall be the annual rate of basic pay provided for positions at 
level IV of the Executive Schedule under section 5315 of title 
5, United States Code.
    (d) Assistant Inspectors General.--The Inspector General 
shall, in accordance with applicable laws and regulations 
governing the civil service--
            (1) appoint an Assistant Inspector General for 
        Auditing who shall have the responsibility for 
        supervising the performance of auditing activities 
        relating to programs and operations of the Coalition 
        Provisional Authority; and
            (2) appoint an Assistant Inspector General for 
        Investigations who shall have the responsibility for 
        supervising the performance of investigative activities 
        relating to such programs and operations.
    (e) Supervision.--(1) Except as provided in paragraph (2), 
the Inspector General shall report directly to, and be under 
the general supervision of, the head of the Coalition 
Provisional Authority.
    (2) Neither the head of the Coalition Provisional 
Authority, any other officer of the Coalition Provisional 
Authority, nor any other officer of the Department of Defense, 
the Department of State, or the United States Agency for 
International Development shall prevent or prohibit the 
Inspector General from initiating, carrying out, or completing 
any audit or investigation, or from issuing any subpoena during 
the course of any audit or investigation.
    (f) Duties.--(1) It shall be the duty of the Inspector 
General to conduct, supervise, and coordinate audits and 
investigations of the treatment, handling, and expenditure of 
appropriated funds by the Coalition Provisional Authority in 
Iraq, and of the programs, operations, and contracts carried 
out utilizing such funds, including--
            (A) the oversight and accounting of the obligation 
        and expenditure of such funds;
            (B) the monitoring and review of reconstruction 
        activities funded by such funds;
            (C) the monitoring and review of contracts funded 
        by such funds;
            (D) the monitoring and review of the transfer of 
        such funds and associated information between and among 
        the Coalition Provisional Authority, other departments, 
        agencies, and entities of the Federal Government, and 
        private and nongovernmental entities; and
            (E) the maintenance of records on the use of such 
        funds to facilitate future audits and investigations of 
        the use of such funds.
    (2) The Inspector General shall establish, maintain, and 
oversee such systems, procedures, and controls as the Inspector 
General considers appropriate to discharge the duty under 
paragraph (1).
    (3) In addition to the duties specified in paragraphs (1) 
and (2), the Inspector General shall also have the duties and 
responsibilities of inspectors general under the Inspector 
General Act of 1978.
    (4) In carrying out the duties, responsibilities, and 
authorities of the Inspector General under this section, the 
Inspector General shall coordinate with, and receive the 
cooperation of, the Inspector General of the Department of 
Defense.
    (5) In carrying out the duties, and responsibilities, and 
authorities of the Inspector General under this section, the 
Inspector General shall coordinate with, and receive the 
cooperation of the Inspector General of the United States 
Agency for International Development.
    (g) Powers and Authorities.--(1) In carrying out the duties 
specified in subsection (f), the Inspector General shall have 
the authorities provided in section 6 of the Inspector General 
Act of 1978.
    (2) The Inspector General shall carry out the duties 
specified in subsection (f)(1) in accordance with section 
4(b)(1) of the Inspector General Act of 1978.
    (h) Personnel, Facilities, and Other Resources.--(1) The 
Inspector General may select, appoint, and employ such officers 
and employees as may be necessary for carrying out the duties 
of the Inspector General, subject to the provisions of title 5, 
United States Code, governing appointments in the competitive 
service, and the provisions of chapter 51 and subchapter III of 
chapter 53 of such title, relating to classification and 
General Schedule pay rates.
    (2) The Inspector General may obtain services as authorized 
by section 3109 of title 5, United States Code, at daily rates 
not to exceed the equivalent rate prescribed for grade GS-15 of 
the General Schedule by section 5332 of such title.
    (3) To the extent and in such amounts as may be provided in 
advance by appropriations Acts, the Inspector General my enter 
into contracts and other arrangements for audits, studies, 
analyses, and other services with public agencies and with 
private persons, and make such payments as may be necessary to 
carry out the duties of the Inspector General.
    (4)(A) Upon request of the Inspector General for 
information or assistance from any department, agency, or other 
entity of the Federal Government, the head of such entity 
shall, insofar as is practicable and not in contravention of 
any existing law, furnish such information or assistance to the 
Inspector General, or an authorized designee.
    (B) Whenever information or assistance requested by the 
Inspector General is, in the judgment of the Inspector General, 
unreasonably refused or not provided, the Inspector General 
shall report the circumstances to the head of the Coalition 
Provisional Authority and to the appropriate committees of 
Congress without delay.
    (5) The head of the Coalition Provisional Authority shall 
provide the Inspector General with appropriate and adequate 
office space at the central and field office locations of the 
Coalition Provisional Authority, together with such equipment, 
office supplies, and communications facilities and services as 
may be necessary for the operation of such offices, and shall 
provide necessary maintenance services for such offices and the 
equipment and facilities located therein.
    (i) Reports.--(1) Not later than March 30, 2004, and every 
calendar quarter thereafter, the Inspector General shall submit 
to the appropriate committees of Congress a report summarizing 
the activities of the Inspector General and the Coalition 
Provisional Authority during the 120-day period ending on the 
date of such report. Each report shall include, for the period 
covered by such report, a detailed statement of all 
obligations, expenditures, and revenues associated with 
reconstruction and rehabilitation activities in Iraq, including 
the following:
            (A) Obligations and expenditures of appropriated 
        funds.
            (B) A project-by-project and program-by-program 
        accounting of the costs incurred to date for the 
        reconstruction of Iraq, together with the estimate of 
        the Coalition Provisional Authority of the costs to 
        complete each project and each program.
            (C) Revenues attributable to or consisting of funds 
        provided by foreign nations or international 
        organizations, and any obligations or expenditures of 
        such revenues.
            (D) Revenues attributable to or consisting of 
        foreign assets seized or frozen, and any obligations or 
        expenditures of such revenues.
            (E) Operating expenses of the Coalition Provisional 
        Authority and of any other agencies or entities 
        receiving appropriated funds.
            (F) In the case of any contract described in 
        paragraph (2)--
                    (i) the amount of the contract or other 
                agreement;
                    (ii) a brief discussion of the scope of the 
                contract or other agreement;
                    (iii) a discussion of how the Coalition 
                Provisional Authority identified, and solicited 
                offers from, potential contractors to perform 
                the contract, together with a list of the 
                potential contractors that were issued 
                solicitations for the offers; and
                    (iv) the justification and approval 
                documents on which was based the determination 
                to use procedures other than procedures that 
                provide for full and open competition.
    (2) A contract described in this paragraph is any major 
contract or other agreement that is entered into by the 
Coalition Provisional Authority with any public or private 
sector entity for any of the following purposes:
            (A) To build or rebuild physical infrastructure of 
        Iraq.
            (B) To establish or reestablish a political or 
        societal institution of Iraq.
            (C) To provide products or services to the people 
        of Iraq.
    (3) Not later than June 30, 2004, and semiannually 
thereafter, the Inspector General shall submit to the 
appropriate committees of Congress a report meeting the 
requirements of section 5 of the Inspector General Act of 1978
    (4) The Inspector General shall publish each report under 
this subsection in both English and Arabic on the Internet 
website of the Coalition Provisional Authority.
    (5) Each report under this subsection may include a 
classified annex if the Inspector General considers it 
necessary.
    (6) Nothing in this subsection shall be construed to 
authorize the public disclosure of information that is--
            (A) specifically prohibited from disclosure by any 
        other provision of law;
            (B) specifically required by Executive order to be 
        protected from disclosure in the interest of national 
        defense or national security or in the conduct of 
        foreign affairs; or
            (C) a part of an ongoing criminal investigation.
    (j) Report Coordination.--(1) The Inspector General shall 
also submit each report under subsection (i) to the head of the 
Coalition Provisional Authority.
    (2)(A) Not later than 30 days after receipt of a report 
under paragraph (1), the head of the Coalition Provisional 
Authority may submit to the appropriate committees of Congress 
any comments on the matters covered by the report as the head 
of the Coalition Provisional Authority considers appropriate.
    (B) A report under this paragraph may include a classified 
annex if the head of the Coalition Provisional Authority 
considers it necessary.
    (k) Transparency.--(1) Not later than 60 days after the 
date of the submittal to Congress of a report under subsection 
(i), the head of the Coalition Provisional Authority shall make 
copies of such report available to the public upon request, and 
at a reasonable cost.
    (2) Not later than 60 days after the date of the submittal 
to Congress under subsection (j)(2) of comments on a report 
under subsection (i), the head of the Coalition Provisional 
Authority shall make copies of such comments available to the 
public upon request, and at a reasonable cost.
    (l) Waiver.--(1) The President may waive the requirement 
under paragraph (1) or (3) of subsection (i) for the inclusion 
in a report under such paragraph of any element otherwise 
provided for under such paragraph if the President determines 
that the waiver is justified for national security reasons.
    (2) The President shall publish a notice of each waiver 
made under this subsection in the Federal Register no later 
than the date on which the reports required under paragraph (1) 
or (3) of subsection (i) are submitted to Congress. The reports 
required under paragraph (1) or (3) of subsection (i) shall 
specify whether waivers under this subsection were made and 
with respect to which elements.
    (m) Appropriate Committees of Congress Defined.--In this 
section, the term ``appropriate committees of Congress'' 
means--
            (1) the Committees on Appropriations, Armed 
        Services, and Foreign Relations of the Senate; and
            (2) the Committees on Appropriations, Armed 
        Services, and International Relations of the House of 
        Representatives.
    (n) Funding.--(1) Of the amounts appropriated for fiscal 
year 2004 for the Operating Expenses of the Coalition 
Provisional Authority in title II of this Act, $75,000,000 
shall be available to carry out this section.
    (2) The amount available under paragraph (1) shall remain 
available until expended.
    (o) The Office of Inspector General shall terminate 6 
months after the authorities and duties of the Coalition 
Provisional Authority cease to exist.

                 TITLE IV--GENERAL PROVISIONS, THIS ACT

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

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

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

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

                       TITLE I--NATIONAL SECURITY

                               CHAPTER 1

                    DEPARTMENT OF DEFENSE--MILITARY

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                  Request           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Military Personnel:
    Military Personnel, Army................       12,858,870       12,188,870       12,858,870       12,858,870
    Military Personnel, Navy................          816,100          816,100          816,100          816,100
    Military Personnel, Marine Corps........          753,190          753,190          753,190          753,190
    Military Personnel, Air Force...........        3,384,700        3,384,700        3,384,700        3,384,700
                                             -------------------------------------------------------------------
      Total Military Personnel..............       17,812,860       17,142,860       17,812,860       17,812,860
                                             ===================================================================
Operation and Maintenance:
    O&M, Army...............................       24,190,464       24,257,664       24,946,464       23,997,064
    O&M, Navy...............................        2,106,258        1,934,058        1,976,258        1,956,258
    O&M, Marine Corps.......................        1,198,981        1,198,981        1,198,981        1,198,981
    O&M, Air Force..........................        5,948,368        5,598,368        5,516,368        5,416,368
    O&M, Defense-Wide.......................        4,618,452        4,485,452        4,218,452        4,355,452
    O&M, Marine Corps Reserve...............           16,000           16,000           16,000           16,000
    O&M, Air Force Reserve..................           53,000           53,000           53,000           53,000
    O&M, Air National Guard.................          214,000          214,000          214,000          214,000
    Overseas Humanitarian, Disaster and                35,500           35,500           35,500           35,500
     Civic Aid..............................
    Iraq Freedom Fund.......................        1,988,600        2,086,600        1,988,600        1,988,600
                                             -------------------------------------------------------------------
      Total Operation and Maintenance.......       40,369,623       39,879,623       40,163,623       39,231,223
                                             ===================================================================
Procurement:
    Missile Procurement, Army...............            6,200  ...............            6,200  ...............
    Procurement of WTCV, Army...............           46,000          101,600          104,000          101,600
    Other Procurement, Army.................          930,687        1,250,287        1,078,687        1,143,687
    Aircraft Procurement, Navy..............          128,600          158,600          128,600          158,600
    Other Procurement, Navy.................           76,357           76,357           76,357           76,357
    Procurement, Marine Corps...............          123,397          123,397          123,397          123,397
    Aircraft Procurement, Air Force.........           40,972           53,972           40,972           53,972
    Missile Procurement, Air Force..........           20,450           20,450           20,450           20,450
    Other Procurement, Air Force............        3,441,006        3,418,006        3,441,006        3,438,006
    Procurement, Defense-Wide...............          435,635          418,635          435,635          418,635
                                             -------------------------------------------------------------------
      Total Procurement.....................        5,249,304        5,621,304        5,455,304        5,534,704
                                             ===================================================================
Research, Development, Test and Evaluation:
    RDT&E, Navy.............................           34,000           34,000           34,000           34,000
    RDT&E, Air Force........................           39,070           39,070           39,070           39,070
    RDT&E, Defense-Wide.....................          265,817          195,817          265,817          260,817
                                             -------------------------------------------------------------------
      Total RDT&E...........................          338,887          268,887          338,887          333,887
                                             ===================================================================
Revolving and Management Funds:
    Defense Working Capital Funds...........          600,000          600,000          600,000          600,000
    National Defense Sealift Fund...........           24,000           24,000           24,000           24,000
                                             -------------------------------------------------------------------
      Total Revolving & Management Funds....          624,000          624,000          624,000          624,000
                                             ===================================================================
Other Department of Defense Programs:
    Defense Health Program..................          658,380          658,380          658,380          658,380
    Drug Interdiction & Counter-Drug                   73,000           73,000           73,000           73,000
     Activities, Defense....................
                                             -------------------------------------------------------------------
      Total Other...........................          731,380          731,380          731,380          731,380
                                             ===================================================================
Related Agencies:
    Intelligence Community Management                  21,500           21,500           21,500           21,500
     Account................................
General Provisions:
    Storm Damage (Sec. 1109)................  ...............          413,300  ...............          313,000
    Munitions Security and Destruction (Sec.  ...............  ...............  ...............          100,000
     1121)..................................
                                             ===================================================================
      Grand Total Chapter 1.................       65,147,554       64,702,854       65,147,554       64,702,554
----------------------------------------------------------------------------------------------------------------

         Fiscal Year 2004 Appropriations Reporting Requirements

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

                          Classified Programs

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

                           MILITARY PERSONNEL

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

                       OPERATION AND MAINTENANCE

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

                        [In thousands of dollars]

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

                   AAFES Support for Deployed Forces

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

                      Rest and Recuperation Travel

      The conferees recommend that of the funds provided in 
Operation and Maintenance, Army, $55,000,000 be used only for 
covering the travel costs of troops on rest and recuperation 
leave. Specifically, these funds shall be used to cover any 
additional costs incurred by troops returning from the Iraq or 
Afghanistan theaters to reach their home of record (in the 
United States, or its territories and commonwealths) from 
established disembarkation points in the United States. 
Department officials may use these funds to cover troop travel 
costs from established disembarkation points to places other 
than their home of record in a manner consistent with current 
Department of Defense travel regulations and guidelines. 
Further, the conferees agree that, to the maximum extent 
practicable, the commercial airline industry should charge 
Armed Forces members and their families the lowest available 
fares for air travel in connection with rest and recuperation 
leave.

                        Family Advocacy Program

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

                National Guard Family Readiness Program

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

                              PROCUREMENT

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

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

                           Up-Armored HMMWVs

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

                          Equipment Shortages

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

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

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

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

                    GENERAL PROVISIONS--THIS CHAPTER

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

Operation and Maintenance, Army.........................     $47,100,000
Operation and Maintenance, Navy.........................      87,600,000
Operation and Maintenance, Marine Corps.................       6,700,000
Operation and Maintenance, Air Force....................     169,300,000
Other Procurement, Air Force............................       2,300,000
      Of the amount provided in this section for ``Operation 
and Maintenance, Air Force'', $6,500,000 is for repair of 
facilities at the NASA Langley Research Center, including 
facilities used for Department of Defense research programs.
      The conferees agree to retain section 1110, as proposed 
by the House, which makes $180,000,000 from funds available in 
this Act for operation and maintenance for the Commander's 
Emergency Response Program for military commanders to respond 
to urgent humanitarian needs in Iraq and Afghanistan.
      The conferees agree to retain section 1111, as proposed 
by the House, which requires the Secretary of Defense to 
provide a description of an Analysis of Alternatives for 
replacing Air Force KC-135 aircraft.
      The conferees agree to retain section 1112, as proposed 
by the House, which exempts members of the armed forces from 
the requirement to pay subsistence charges while hospitalized, 
makes the exemption permanent, and makes the exemption 
retroactive to September 11, 2001. The Senate included similar 
language.
      The conferees agree to retain and amend section 1113, as 
proposed by the Senate, which prohibits use of funds in this 
Act to alter command responsibility or permanent assignment of 
forces until 270 days after notification to the congressional 
defense committees.
      The conferees agree to retain and amend section 1114, as 
proposed by the Senate, which authorizes administering 
Secretaries to provide medical or dental screening or care at 
no cost for all members of the Ready Reserve who are ordered to 
active duty.
      The conferees agree to retain and amend section 1115, as 
proposed by the Senate, which provides the TRICARE benefit to 
inactive Reservists and their family members, if they are 
eligible for unemployment compensation or not eligible for 
health care benefits under an employer-sponsored health 
benefits plan.
      The conferees agree to retain and amend section 1116, as 
proposed by the Senate, which amends section 1074 of title 10, 
U.S.C. to expand the time period a Reservist would be 
considered to be on active duty for the purpose of TRICARE 
eligibility.
      The conferees agree to retain and amend section 1117, as 
proposed by the Senate, which amends the Transitional 
Assistance Medical Program (TAMP) benefit program from 60 days 
to 180 days beginning on the date on which the member is 
separated from active duty.
      These four new provisions (sections 1114, 1115, 1116, and 
1117) enhance TRICARE access for members of the National Guard 
and Reserve Components. It is the conferees' intent that these 
provisions constitute a one-year demonstration program to 
determine whether a permanent benefit beyond fiscal year 2004 
should be authorized.
      The conferees direct the Department of Defense to report 
to the congressional defense committees no later than May 30, 
2004 on the implementation of this demonstration program and 
its associated impact on recruiting and retaining both active 
and reserve component personnel.
      Based on information provided to the Congress from the 
Congressional Budget Office, the conferees have been advised 
that the cost of this demonstration program is approximately 
$200,000,000. However, the conferees recognize that these are 
estimates based on projected utilization rates. Accordingly, 
the conferees assume that not more than $400,000,000 shall be 
required to implement this demonstration program in fiscal year 
2004.
      The conferees further direct the Department of Defense, 
no later than April 15, 2004, to provide the congressional 
defense committees the cost estimates of this demonstration 
program based on actual and projected utilization rates.
      The conferees agree to retain and amend section 1118, as 
proposed by the Senate, which requires the Department to notify 
each Reservist who is ordered to active duty in writing of the 
expected period during which they will be mobilized.
      The conferees agree to retain and amend section 1119, as 
proposed by the Senate, which provides that authority in 
section 1314(1) of Public Law 108-11, making funds available to 
build an Infantry Brigade Rifle Range for the South Carolina 
National Guard, shall apply to the use of available funds 
appropriated for fiscal year 2004.
      The conferees agree to include a new provision, section 
1120, which directs the Secretary of Defense to submit biannual 
reports on Iraq and Afghanistan to the Congress.
      The conferees agree to include a new provision, section 
1121, which provides an additional $100,000,000 for securing 
and destroying conventional munitions in Iraq.

                               CHAPTER 2

                    DEPARTMENT OF HOMELAND SECURITY

                       United States Coast Guard

                           OPERATING EXPENSES

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

                  Emergency Preparedness and Response

                            DISASTER RELIEF

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

                            OTHER ACTIVITIES

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

                         Science and Technology

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

                    GENERAL PROVISION, THIS CHAPTER

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

                         PROVISIONS NOT ADOPTED

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

                               CHAPTER 3

                         DEPARTMENT OF DEFENSE

                         MILITARY CONSTRUCTION

                       Items of General Interest

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

                      Military Construction, Army

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

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

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

                      Military Construction, Navy

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

                    Military Construction, Air Force

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

             Family Housing Operation and Maintenance, Army

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

    Family Housing Operation and Maintenance, Navy and Marine Corps

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

          Family Housing Operation and Maintenance, Air Force

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

                    GENERAL PROVISION--THIS CHAPTER

      The conference agreement includes one general provision, 
section 1301, as proposed by the House and modified by the 
Senate. This provision gives the Secretary of Defense authority 
to use up to $150,000,000 in operation and maintenance funds 
for construction projects that support Operation Iraqi Freedom 
or the Global War on Terrorism. The purpose of the provision is 
to provide troops in the field flexibility to construct 
emergency projects using operation and maintenance funds. The 
provision requires DOD to submit a quarterly report that 
describes the project, includes supporting documentation, and 
provides the amount of funds obligated for these purposes. The 
Senate modification requires DOD to provide Congress with 
notification of the project 15 days after obligation of funds.

    TITLE II--IRAQ AND AFGHANISTAN RECONSTRUCTION AND INTERNATIONAL 
                               ASSISTANCE

                               CHAPTER 1

                         DEPARTMENT OF JUSTICE

                            Legal Activities

                        GENERAL LEGAL ACTIVITIES

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

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    DIPLOMATIC AND CONSULAR PROGRAMS

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

            EMBASSY SECURITY, CONSTRUCTION, AND MAINTENANCE

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

           EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

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

                      International Organizations

        CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

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

                             RELATED AGENCY

                    Broadcasting Board of Governors

                 INTERNATIONAL BROADCASTING OPERATIONS

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

                    GENERAL PROVISION--THIS CHAPTER

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

  FOREIGN OPERATIONS, EXPORT FINANCING, RELATED AGENCIES APPROPRIATIONS

                               CHAPTER 2

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

   Operating Expenses of the United States Agency for International 
                              Development

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

                        Capital Investment Fund

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

                  Iraq Relief and Reconstruction Fund

                     (INCLUDING TRANSFERS OF FUNDS)

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

                  Iraq Relief and Reconstruction Fund

               (Budget authority, dollars in millions) \1\
------------------------------------------------------------------------
                                          Supplemental      Conference
       Category and description             request         agreement
------------------------------------------------------------------------
Security and law enforcement:
    Police training and technical                   950              950
     assistance.......................
    Traffic police....................               50  ...............
    Border Enforcement................              150              150
    Facilities Protection Services....               67               67
                                       ---------------------------------
      Subtotal, Law enforcement.......            1,217            1,167
                                       =================================
    Establishment of the New Iraqi                2,000            2,000
     Army (NIA).......................
        (NIA Facilities)..............            (745)            (745)
        (NIA Equipment)...............            (879)            (879)
        (NIA Operations and Training).            (375)            (375)
    Iraq Civil Defense Corps..........               76               76
        (Operations and Personnel)....           (58.4)           (58.4)
        (Equipment)...................           (17.2)           (17.2)
                                       ---------------------------------
          Subtotal, National Security.            2,076            2,076
                                       =================================
          Total, Security and Law                 3,293            3,243
           Enforcement................
                                       =================================
Justice, Public Safety Infrastructure
 and Civil Society:
    Witness Protection Program........              100               75
    Other technical investigative                    10               10
     methods..........................
    Penal facilities..................              400              100
    Reconstruction and modernization                109              109
     of detention facilities..........
    Facilities protection, mine                     500              400
     removal, fire service, and public
     safety facility and equipment
     repairs..........................
        (Demining)....................             (61)             (61)
    Public safety training and                      274              199
     facilities.......................
    National Security Communications                150               90
     Network..........................
    Investigations of crimes against                100               75
     humanity.........................
    Judicial security and facilities..              200              150
    Democracy building activities.....  ...............              100
    United States Institute of Peace..  ...............               10
                                       ---------------------------------
      Total, Justice, Public Safety               1,843            1,318
       Infrastructure and Civil
       Society........................
                                       =================================
Electric Sector:
    Generation........................            2,900            2,810
    Transmission......................            1,550            1,550
    Network infrastructure............            1,000            1,000
    Automated monitoring and control                150              150
     system...........................
    Institutional strengthening.......               25  ...............
    Security..........................               50               50
                                       ---------------------------------
      Total, Electric Sector..........            5,675            5,560
                                       =================================
Oil Infrastructure:
    Infrastructure....................            1,200            1,200
    Emergency supplies of refined                   900              690
     petroleum products...............
                                       ---------------------------------
      Total, Oil Infrastructure.......            2,100            1,890
                                       =================================
Water Resources and Sanitation:
    Potable water.....................            2,830            2,830
    Water conservation................               30               30
    Sewerage..........................              697              675
    Solid waste management/trash                    153  ...............
     trucks...........................
    Other solid waste management......  ...............               22
                                       ---------------------------------
      Subtotal, Public Works Projects.            3,710            3,557
                                       =================================
    Pumping stations and generators...              150              150
    Irrigation and drainage systems...              130              130
    Major irrigation projects.........              130              130
    Dam repair, rehab, and new                      125              125
     construction.....................
    Umm Qasr to Basra water pipeline                200              200
     and treatment plant..............
    Marsh projects....................              100  ...............
    Basra Channel Flushing............               40               40
                                       ---------------------------------
      Subtotal, Water Resources                     875              775
       projects.......................
                                       =================================
      Total, Water Resources and                  4,585            4,332
       Sanitation.....................
                                       =================================
Transportation and Telecommunications
 Projects:
    Airports..........................              165              165
    Umm Qasr Port rehab...............               45               45
    Railroad rehab and restoration....              303              300
    Iraqi Telecom and Postal                        124              100
     Corporation......................
        (Postal IT ZIP Codes).........              (9)              (-)
    Iraqi Communications systems......              109               95
        (Business practices for Iraqi              (10)              (-)
         TV and radio)................
        (Numbering scheme911                        (4)              (-)
         initiative)..................
    Iraqi Communications operations...               89               75
    Undistributed reduction,            ...............             -280
     transportation and
     telecommunications...............
                                       ---------------------------------
      Total, Transportation and                     835              500
       Telecommunications Projects....
                                       =================================
Roads, Bridges, and Construction:
    Housing construction..............              100  ...............
    Public buildings construction and               130              130
     repair...........................
    Roads and bridges.................              240              240
                                       ---------------------------------
      Total, Roads, Bridges, and                    470              370
       Construction...................
                                       =================================
Health care:
    Nationwide hospital and clinic                  393              493
     improvements \2\.................
    Equipment procurement and                       300              300
     modernization....................
    Initiate 700m Basrah hospital                   150  ...............
     project..........................
    Health care partnerships..........                7  ...............
                                       ---------------------------------
      Total, Health Care..............              850              793
                                       =================================
Private Sector Development:
    American-Iraqi Enterprise Fund....              200  ...............
    Expanded network of Employment                    8                8
     Centers..........................
    Training..........................              145              100
    Micro-Small-Medium Enterprises....  ...............               45
                                       ---------------------------------
      Total, Private Sector                         353              153
       Development....................
                                       =================================
Education, Refugees, Human Rights,
 Democracy, and Governance:
    Migration and Refugee Assistance..              105              105
    Local Information Centers.........               90  ...............
    Property Claims Tribunal..........               30               30
    Banking system modernizations.....               30               30
    Business training courses.........               20  ...............
    Human rights......................               15               15
    Education.........................  ...............               90
    Civic programs....................               10               10
                                       ---------------------------------
      Total, Education, Refugees,                   300              300
       Human Rights, and Governance...
                                       =================================
Transfer/financing....................  ...............              210
                                       =================================
      Total, Iraq Relief and                     20,304          18,649
       Reconstruction Fund............
------------------------------------------------------------------------
\1\ Figures in parenthesis are included in amounts above.
\2\ Includes $50 million for pediatric facility in Basra.

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

       Operating Expenses of the Coalition Provisional Authority

      The conference report recommends $983,000,000 for 
``Operating Expenses of the Coalition Provisional Authority'' 
under this new heading as proposed by the House, instead of 
providing for administrative costs of the Coalition Provisional 
Authority (CPA) in Iraq within the total amount under the 
heading ``Operation and Maintenance, Army'' as requested in the 
supplemental request and included in the Senate bill. The 
conference agreement provides an amount that is $125,000,000 
above the House bill, reflecting $75,000,000 for the expenses 
of a new CPA Inspector General and office as provided in Title 
III of this Act, and $50,000,000 for reporting and monitoring 
requirements and other supporting costs. The conferees have 
included language to ensure that the Department of Defense is 
able to continue to furnish assistance and services and any 
other support to the CPA.
      The CPA currently oversees the reconstruction of Iraq, 
especially the non-military programs described in the Iraq 
Relief and Reconstruction Fund section of this report, from 
building waste water treatment systems to renovating health 
care centers to training law enforcement officials to providing 
computer training for Iraqi youth.
      The conference report acknowledges CPA's leadership and 
role. The managers expect to be kept updated on the progress of 
reconstruction efforts, roles and missions of supporting 
agencies, and implementation of programs funded by this Act.
      The managers note that transparency is crucial for 
ensuring efficient, accountable reconstruction activities in 
Iraq. Therefore, this recommendation provides for the first 
time a direct operating appropriation for the CPA, and, under 
the Iraq Relief and Reconstruction Fund, the organization is 
given the authority to receive direct apportionment of program/
project funds. The conferees expect that the Office of 
Management and Budget will transmit to the Committees on 
Appropriations by January 5, 2004, a budget justification for 
this new Operating Expenses account, including information 
required by OMB Circular A-11, such as standard financial 
information, program and financing and object classification 
schedules, and personnel summary data.
      The conference report does not alter the reporting 
relationship of the Administrator of the CPA to the President 
through the Secretary of Defense. However, it does further 
transparency by clarifying the operational cost of United 
States reconstruction efforts in Iraq as part of United States 
foreign assistance, and the scope of the non-military 
reconstruction efforts.
      Since the CPA is less than a year old and it is possible 
that the organization could require additional operational 
resources during this year, the managers also have included 
bill language in the Iraq Relief and Reconstruction Fund that 
provides authority, if needed, to transfer up to 1 percent for 
CPA's operating expenses.

                         Economic Support Fund

      The conference report recommends $872,000,000 for the 
``Economic Support Fund'' as proposed by the House, instead of 
$422,000,000, as proposed by the Senate, primarily for 
reconstruction in Afghanistan. These funds would remain 
available for obligation until December 31, 2004.
      The recommendation reserves $672,000,000 for accelerated 
assistance for Afghanistan. The managers note the increasing 
terrorist activity against the Government of Afghanistan, 
international Coalition forces, and private non-governmental 
organizations providing relief and reconstruction assistance 
within Afghanistan, and concludes that the pace of 
reconstruction, as well as that of security assistance provided 
elsewhere in this chapter, must respond to the tenuous security 
conditions, especially in the southern and eastern provinces of 
Afghanistan.
      The conferees recognize that further expansion of the 
mandate of the International Security Assistance Force (ISAF) 
can help improve the security environment in Afghanistan, and 
strongly encourage the Administration to support such expansion 
of ISAF.
      The conferees fully support most of the urgent programs 
included in the budget justification for Afghanistan civil 
reconstruction, including roads, education, health, power 
generation/private sector development, and provincial 
reconstruction teams. The conference agreement provides 
$60,000,000 for Afghan women and girls to ensure that programs, 
projects and activities funded in this Act include the 
participation of women and advance the social, economic, and 
political rights and opportunities of women in Afghanistan.
      The State Department Coordinator of Assistance to 
Afghanistan and the Administrator of USAID are requested to 
provide the Committees not later than December 15, 2003, a 
fiscal year 2004 strategic and financial plan, including 
projected quarterly obligations by sector and major project (in 
excess of $250,000), for all reconstruction and related 
activities in Afghanistan undertaken with funds provided by 
prior Acts, this Act and theForeign Operations, Export 
Financing and Related Programs Appropriations Act, 2004.
      The conference report recommends $181,000,000 for major 
and provincial roads, an endeavor that is critical to both 
economic development and security in Afghanistan. The conferees 
commend those engaged in the challenging project to reconstruct 
and pave the major Kabul-Kandahar road by the end of 2003, 
recognize the dire security threat from neo-Taliban forces 
along its route, and urge United States Armed Forces in 
Afghanistan to increase surveillance of the construction areas 
and support for the private and Afghan national police security 
forces protecting the Kandahar road. The additional funding 
will sustain the momentum of the Kabul-Kandahar project, by 
financing secondary and tertiary road development, primarily in 
the previously neglected southern and central regions.
      The conference report provides an additional $95,000,000 
for schools and education in Afghanistan, $55,000,000 above the 
request, and $95,000,000 for private sector development and 
power generation, $50,000,000 above the request. The funds are 
expected to support market centers-industrial parks, land 
titling, natural resources assessment and power generation 
projects. The conference agreement does not include $10,000,000 
for a venture capital fund. The conference agreement provides 
$65,000,000 to repair, rehabilitate and procure electric 
generation and distribution infrastructure in Afghanistan. In 
addition to the power requirements of Kabul already requested, 
the conference report has provided additional funds to 
rehabilitate and increase power generation from the Kajaki Dam 
facility that is essential to successful reconstruction in the 
politically sensitive Kandahar and Helmand provinces.
      The conference report recommends an additional 
$70,000,000 for support to the Government of Afghanistan (GoA). 
Of the recommended $70,000,000, not less than $25,000,000 will 
meet key GoA infrastructure needs, especially 
telecommunications between Kabul and the provinces. The 
Ministry of Finance will use not less than $10,000,000 to 
improve customs collections at Afghanistan's 11 official border 
posts and remitting of customs to the ministry on a timely 
basis. An indeterminate amount will be needed to augment other 
donor contributions to an international trust fund to pay 
government salaries until economic growth increases government 
revenue sufficiently to meet salary costs.
      The conference report recommends $69,000,000 for 
elections and improved governance in Afghanistan, $12,000,000 
above the request. In governance, the conference report 
recommends that activities be undertaken to promote private 
investment and trade capacity building. The managers also 
support Senate report language recommending $15,000,000 for 
media outreach activities in Afghanistan.
      The conferees note that women in Afghanistan continue to 
struggle to achieve basic rights, which they were denied under 
the Taliban. Women were severely affected by their inability 
during those times to participate in local and national 
governance. The conferees have agreed to provide $60,000,000 
for technical and vocational education, programs for women and 
girls against sexual abuse and trafficking, shelters for women 
and girls, humanitarian assistance for widows, support of 
women-led NGOs, programs to disseminate information about the 
rights of women, and to provide women's rights training to 
military, police and legal personnel. Significant funding above 
the Administration's request has been added for Afghanistan to 
accelerate reconstruction efforts. Funds have been made 
available for these specific purposes to ensure that programs 
that address these critical needs are adequately funded.
      Where possible, such programs should be implemented by 
local civil society groups, and especially local women's 
groups. The managers expect USAID to provide technical and 
other assistance to strengthen the capacity of these groups and 
to support their activities. The conferees are concerned that 
without greater attention to the specific challenges facing 
women and girls in Afghanistan, the country's prospects for 
broad-based economic growth and democratic development will be 
sharply reduced.
      The managers have included bill language requiring that 
obligation of funds made available by this Act or by prior 
appropriations Acts for senior advisors to the Chief of Mission 
in Kabul be subject to notification. This provision does not 
apply to U.S. officials required to design and manage a massive 
Afghanistan assistance program, the actual number of which is 
presently insufficient due to a shortage of housing and office 
space. Ample funds are provided in this Act to construct an 
interim facility to accommodate additional assistance and 
security personnel in Kabul. The managers urge the Departments 
of State and Defense and USAID to immediately accelerate 
efforts to provide adequate office and housing space required 
for the effective management and oversight of activities funded 
in this Act, and keep the Committees fully informed of progress 
toward deploying an adequately staffed mission in Kabul.
      The conference agreement provides $50,000,000, as 
requested, for projects directly involving requirements 
identified by provincial reconstruction teams (PRTs) in eight 
to twelve provinces. In addition, $8,000,000 is provided for 
dedicated air service, armored vehicles,and other security 
enhancements for the civilians deployed to the PRTs and other 
assistance managers in Afghanistan.
      The conferees support an additional $49,000,000 for 
health services in Afghanistan. If a permissive security 
situation is extended throughout all of Afghanistan during 
2004, the additional health and road funds will accelerate 
achievement of the objective of bringing all Afghans within 4 
hours' travel of a health clinic.
      The managers expect not less than $10,000,000 in ESF 
assistance to be made available through appropriate 
humanitarian organizations for additional food, clothing, 
heating and cooking fuel, emergency shelter materials, and 
other basic necessities for displaced Afghans in and around 
Kabul.
      The conference agreement recommends an initial 
$30,000,000 for disarmament, demobilization and reintegration 
(DDR) projects, $30,000,000 below the request. The managers 
note that Japan has already provided full funding for the 
initial pilot projects in Northern Afghanistan that will help 
determine the feasibility of DDR projects prior to the training 
and deployment of a multi-ethnic Afghan National Army that is 
firmly under civilian Afghan control. The managers believe that 
Japan and other donors will make additional contributions to 
DDR projects if the pilot effort is a success and is replicable 
in other regions.
      The managers also recommend that $23,000,000, not 
included in the request, be provided for water projects in 
Afghanistan. Because of the essential role of irrigation in 
agriculture, and the lack of potable water in many urban areas 
and small towns, the managers request USAID to report not later 
than January 15, 2004 on the feasibility of expanding rural and 
urban water projects in Afghanistan.
      The managers take note of the outstanding jobs that the 
men and women of USAID, the Departments of Defense and State 
and other federal agencies supporting the Embassy in Kabul and 
Afghanistan's reconstruction have accomplished under the most 
difficult of circumstances.
      As the cooperation of the Government of Pakistan is vital 
to United States and Coalition efforts to build a stable 
Afghanistan, the conference agreement includes language 
proposed by the President to allow up to $200,000,000 from 
``Economic Support Fund'' to be made available for the subsidy 
cost of modifying direct loans and guarantees previously issued 
for Pakistan. The conference report includes the $200,000,000, 
subject to a determination by the President that the Government 
of Pakistan is cooperating with the United States in the global 
war on terrorism.
      The conference agreement also provides for the transfer 
to the Economic Support Fund from the Iraq Relief and 
Reconstruction Fund of $100,000,000 for assistance for Jordan.

              International Disaster and Famine Assistance

                     (INCLUDING TRANSFERS OF FUNDS)

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

                          DEPARTMENT OF STATE

          International Narcotics Control and Law Enforcement

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

    Nonproliferation, Anti-Terrorism, Demining, and Related Programs

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

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

                   Foreign Military Financing Program

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

                        Peacekeeping Operations

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

                    GENERAL PROVISIONS--THIS CHAPTER

      The managers recognize that debt incurred under the 
Saddam Hussein regime presents a potential challenge to the 
country's development. However, this supplemental 
appropriations act is intended to meet emergency needs, and the 
managers are of the opinion that paying foreign debtors out of 
United States funds is not among those needs. The conference 
report includes section 2201, a general provision included in 
the House bill and similar to the Senate bill, that prohibits 
the use of funds appropriated in this Act, or in the 2003 Iraq 
Supplemental Appropriations Act (P.L. 108-11), to be used to 
pay for any debt entered into by the Iraqi government before 
the defeat and overthrow of Saddam Hussein. Nothing in this 
provision, however, should be construed as discouraging the 
Departments of State and Treasury from working with lenders in 
reducing and restructuring Iraq's debt burden. The House 
addressed this matter in section 2201 and the Senate in section 
2311.
      Both the House and Senate bills included a number of 
provisions intended to require greater adherence to full and 
open competition. Both the House and Senate bills provide that 
when other than full and open competition is pursued, if 
necessary, then the agency using other than full and open 
competitive procedures must inform the Congress and the 
American public.
      It is in the best interests of most involved, including 
the United States business sector and the Iraqi people, to use 
open and full competition for all but a very limited number of 
contracts. For situations in which ensuring such competition 
might be inappropriate--such as in cases of an emergency--the 
managers believe that existing federal regulations allow for 
adequate flexibility.
      Therefore, the conference agreement includes language in 
sections 2202 and 2203 to limit the use of non-competitive 
contracts in the ``Iraq Relief and Reconstruction Fund'' in 
this Act and Public Law 108-11. This language is in lieu of a 
number of ``competition in contracting'' provisions in both the 
House and Senate bills. This conference agreement preserves the 
prerogative to waive the requirement for full and open 
competition in certain circumstances, as outlined in applicable 
federal procurement regulations. The provisions require that 
such a waiver be with the written approval of the Administrator 
of the Coalition Provisional Authority and the head of an 
agency of the United States Government that awards and manages 
the contract, and that information on the contract and the 
justification of the waiver be transmitted to the appropriate 
committees of Congress and be made available to the public. The 
certifications cannot be delegated, and must be transmitted to 
the appropriate congressional committees and made available to 
the public 7 days before the non-competitive contract is 
awarded. The provision pertains to the amendment, extension or 
modification of contracts entered into prior to the enactment 
of this Act using other than full and open competitive 
procedures, including so called ``limited competition'' 
contracts. This is intended to require notification of 
significant changes in scope or increased funding above award 
ceilings for contracts that were previously awarded under 
``limited competition.'' Contracts below a value of $5,000,000 
are exempted from these requirements as are small businesses as 
defined in 15 USC 631 et seq. The House addressed contracting 
issues in sections 2202, 2203, and 3007 and the Senate 
addressed these issues in section 5003.
      In sections 2204 and 2205, the managers recommend 
language similar to that requested by the President to clarify, 
extend and broaden authorities provided in Public Law 108-11. 
These authorities suspend relevant provisions of the Iraq 
Sanctions Act and make inapplicable to Iraq certain provisions 
of law that restrict assistance to countries that support 
terrorism. They also authorize the export of arms to specific 
Iraqi security forces. Instead of making permanent these 
authorities as requested by the President, the conference 
report extends them for another year. The House and Senate 
bills each provided similar language.
      Although the President, on May 7, 2003, exercised his 
authority under section 1503 in Public Law 108-11 as originally 
enacted to make permanently inapplicable to Iraq any provisions 
of law that apply to countries that support terrorism and to 
suspend relevant provisions of theIraq Sanctions Act, the 
amendment in section 2204 extending the expiry date of section 1503 is 
necessary to ensure that laws referred to in its fourth and fifth 
provisos, i.e., section 307 of the Foreign Assistance Act requiring 
withholding of the United States proportionate share of contributions 
to international organizations that have programs in Iraq and 
provisions of law directing voting against or opposing programs, shall 
not apply with respect to Iraq through fiscal year 2005.
      In section 2204, the conference report amends section 
1504 of Public Law 108-11 to include language specifically 
authorizing the export of small arms to private security forces 
and extending the authorities of this section for another year. 
With regard to the export of lethal military equipment for 
private security purposes, the managers intend that only small 
arms may be exported for such purpose. For the purposes of this 
section, the managers understand small arms to mean all 
equipment listed in Category I of the International Traffic in 
Arms Regulations (22 CFR 120-130), and that such exports shall 
be made for the purposes of providing security for contractor 
operations during the reconstruction of Iraq. For all equipment 
exported under this section, the managers expect that the 
notification contained in this section shall contain specific 
information with respect to the end user and the purposes for 
which such equipment has been exported. The conference report 
does not include language requested by the President that would 
authorize the export of advanced conventional equipment to 
Iraq, such as long-range precision guided munitions, fuel air 
explosives, cruise missiles, laser weapons, and military 
satellites.
      The conference report includes language in section 2206 
that increases the cumulative value of military equipment that 
the Department of Defense may provide to Afghanistan from 
$300,000,000 to $450,000,000. This provision was in section 
2206 of the House bill and section 301 of the Defense chapter 
of the Senate amendment.
      The conference report includes a new general provision, 
section 2207, that is similar to the House language requiring 
the Office of Management and Budget to submit to the Committees 
on Appropriations a financial plan no later than January 5, 
2004 and every 3 months thereafter. The managers have 
restricted the obligation of all but up to 20 percent of funds 
under the heading ``International Relief and Reconstruction 
Fund'' until this plan is submitted, but the managers intend 
that any funds spent before the plan is submitted also will be 
detailed in the financial plan. The managers direct that the 
financial plan be updated quarterly to reflect any prospective 
changes to estimates of future or ongoing projects, and require 
that the Administration notify the Committees on Appropriations 
15 days prior to obligation of any increases at the project 
level to the financial plan between quarterly submissions. The 
table in this conference statement under the heading ``Iraq 
Relief and Reconstruction Fund'' provides functional categories 
as well as program activities. The managers expect the 
financial plan to correspond with these functional categories 
but also include more specific project level detail including, 
but not limited to, specific capital projects including 
bridges, railroads, training centers, roads, prisons, 
hospitals, and health clinics, as well as the establishment of 
training programs, and repatriation of refugees and internally 
displaced persons by implementer. For capital projects, the 
managers direct that the OMB include a breakdown of cost 
estimates that explains the assumptions and data on which the 
estimates were based. The managers also intend that for each 
line of project-level activity, the financial plan specify 
which United States Government agency will be expected to 
implement the project. The conference report requires that OMB 
consult with the Committees on Appropriations prior to 
submitting the plan. The managers view this consultation as an 
ongoing process, one that should start immediately after 
enactment of this Act and continue until the first plan is 
submitted, and every 3 months thereafter. The Senate had 
similar language in sections 2310 and 2321.
      Section 2208 is the same as the general provision in the 
House bill that deems any successor United States Government 
entity to the CPA as the CPA for purposes of authorities and 
responsibilities in this Act. The Senate did not address this 
matter.
      In section 2209, House bill language is included so that 
funds are made available for Iraq and Afghanistan 
notwithstanding any other provision of law not contained in 
this Act that restricts assistance to foreign countries, and 
section 660 of the Foreign Assistance Act. Such authority is 
subject to five days notification. The Senate addressed this 
matter in section 2302.
      In section 2210, the conference agreement includes 
language that provides that funds appropriated by this chapter 
may be obligated and expended notwithstanding section 10 of 
Public Law 91-672 and section 15 of the State Department Basic 
Authorities Act of 1956, as proposed by both the Senate and the 
House.
      The conference report includes language in section 2211 
that allows the Overseas Private Investment Corporation to 
operate in Iraq notwithstanding any other provision of law. The 
managers support OPIC programs in Iraq, and the conference 
report provides language to permit the President to enter into 
agreements with an entity other than a host countrygovernment. 
However, the managers do not expect that OPIC's authority will be 
exercised to waive other existing statutory requirements including 
longstanding Congressional mandates; therefore, the conference report 
requires that the exercise of such authority is subject to the regular 
notification procedures of the Committees on Appropriations. The Senate 
addressed this matter in section 2307.
      The managers direct the Export-Import Bank of the United 
States and the Trade and Development Agency to report quarterly 
during fiscal year 2004, beginning 90 days after enactment of 
this Act, to the Committees on Appropriations regarding each 
agency's activities in Iraq.
      In section 2212, the conference report includes a 
provision similar to the Senate amendment that allows transfers 
among international assistance programs in this chapter in an 
amount not to exceed $100,000,000. The House did not address 
this matter.
      Section 2213 of the conference report reflects the Senate 
language on extending the waiver on Pakistan sanctions. The 
House did not address this matter.
      Section 2214 amends the authorization levels in the 
Afghanistan Freedom Support Act to be consistent with the 
levels of funding provided in this Act and H.R. 2800. The 
reporting requirements in section 2312 of the Senate bill are 
addressed in section 2215 of the conference report. The House 
bill did not address this matter.
      Section 2215 is a new section that consolidates many of 
the reporting requirements of the House and Senate bills under 
one provision entitled ``Reports on Iraq and Afghanistan''. 
This includes issues relating to debts owed by the government 
of Saddam Hussein in Iraq, efforts of the United States to 
increase resources contributed by foreign countries and 
international organizations to the reconstruction of Iraq, the 
manner in which the needs of people with disabilities are being 
met in the development and implementation of reconstruction 
activities in Iraq and Afghanistan, progress made in indicting 
leaders of the former Iraqi regime for war crimes, and efforts 
by the Coalition Provisional Authority and relevant Iraqi 
officials to preserve religious freedoms. In addition, this 
provision includes a monthly reporting requirement on Iraqi oil 
production and oil revenues, and the use of such revenues, and 
progress made in accomplishing United States assistance and 
development goals in Afghanistan. This section reflects the 
requirements of House section 2207 and Senate sections 2309 and 
2314.
      In section 2216, the conference report prohibits funds 
appropriated or otherwise made available by chapter 2 of title 
II of this Act from being obligated for any activity in 
contravention of the Optional Protocol to the Convention on the 
Rights of the Child on the Involvement of Children in Armed 
Conflicts. This is similar to Senate section 2318, and the 
House did not address this matter.
      Section 2217 is a new general provision that relates to 
women's participation in reconstruction in Afghanistan and 
Iraq.
      The conference agreement does not include language from 
the Senate bill expressing the sense of Congress on certain 
matters. The managers endorse the intent of this language, 
specifically that: each country that is owed a debt by Iraq 
that was incurred during the regime of Saddam Hussein should 
forgive such debt; arbitrary deadlines should not be set for 
the dissolution of the Coalition Provisional Authority, and 
that transfer of authority should occur only after the 
ratification of an Iraqi constitution and the establishment of 
an elected government in Iraq takes place; the United States 
should make every effort to increase the level of financial 
commitment from other nations to reconstruction in Iraq, and 
that the United States contributions to these efforts should be 
done in a manner that promotes economic growth in Iraq and 
limits the long-term cost to American taxpayers; and, the 
removal of the Government of Iraq under Saddam Hussein enhanced 
the security of Israel and other United States allies.
      The managers do not include House sections 2212 and 2213 
and Senate sections 2308, 2310, 2313, 2314, 2315, 2316, 2317, 
2319, 2320.

  TITLE III--INSPECTOR GENERAL OF THE COALITION PROVISIONAL AUTHORITY

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

                 TITLE IV--GENERAL PROVISIONS--THIS ACT

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

                   Conference Total--With Comparisons

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

                        [In thousands of dollars]

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

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

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

                                
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