[House Report 117-118]
[From the U.S. Government Publishing Office]
117th Congress } { Rept. 117-118
HOUSE OF REPRESENTATIVES
1st Session } { Part 2
======================================================================
NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2022
_______
September 17, 2021.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Smith of Washington, from the Committee on Armed Services,
submitted the following
SUPPLEMENTAL REPORT
[To accompany H.R. 4350]
[Including cost estimate of the Congressional Budget Office]
This supplemental report shows the cost estimate of the
Congressional Budget Office with respect to the bill (H.R.
4350), as reported, which was not included in part 1 of the
report submitted by the Committee on Armed Services on
September 10, 2021 (H. Rept. 117-118, pt. 1).
This supplemental report also includes the correct recorded
vote tally in the ``Committee Position'' portion in part 1 of
the report submitted by the Committee on Armed Services on
September 10, 2021.
Committee Position
On September 1, 2021, the Committee on Armed Services held
a markup session to consider H.R. 4350. The committee ordered
the bill H.R. 4350, as amended, favorably reported to the House
of Representatives by a recorded vote of 57-2, a quorum being
present.
Congressional Budget Office Estimate
In compliance with clause 3(c)(3) of rule XIII of the House
of Representatives, the cost estimate prepared by the
Congressional Budget Office and submitted pursuant to section
402 of the Congressional Budget Act of 1974 is as follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 15, 2021.
Hon. Adam Smith,
Chairman, Committee on Armed Services,
House of Representatives, Washington, DC.
Dear Chairman Smith: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4350, the National
Defense Authorization Act for Fiscal Year 2022.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would
Authorize appropriations totaling an
estimated $767.6 billion for 2022 for military
functions of the Department of Defense (DoD) and the
atomic energy defense activities of the Department of
Energy
Authorize an estimated $2.7 billion for
nondefense activities over the 2022-2024 period
Prescribe personnel levels for active-duty
and selected-reserve components of the U.S. Armed
Forces
Extend DoD's authority to pay various
bonuses and allowances to military personnel
Change compensation, health care, and
retirement benefits for military personnel and their
families
Create a Space National Guard
Require certain DoD contractors to pay
employees at least $15 per hour
Impose intergovernmental and private-sector
mandates by increasing the authorized end strength for
active-duty personnel, requiring local agencies to
enforce military protective orders, expanding Selective
Service registration requirements, and placing
prohibitions on debt collectors and consumer reporting
agencies
Areas of significant uncertainty include
Predicting the frequency of public health
emergencies
Estimating the number of workers affected by
the requirement for DoD contractors to increase their
wages to at least $15 per hour and the amount of that
increase that would be passed on to DoD as higher costs
Anticipating the size and structure of a
Space National Guard
Bill summary
H.R. 4350 would authorize appropriations totaling an
estimated $770.3 billion over the 2022-2024 period. Nearly all
of that amount, $767.6 billion for 2022, would be specifically
authorized for defense programs and activities of the
Department of Defense (DoD) and the Department of Energy. An
additional $2.7 billion would be authorized for the Maritime
Administration and various other nondefense programs over the
2022-2024 period--$2.5 billion in specified authorizations and
$0.2 billion in estimated authorizations. Of those amounts, a
total of $2.5 billion would be authorized for 2022. CBO
estimates that appropriation of the authorized amounts would
increase outlays by $743.1 billion over the 2022-2026 period.
The bill also contains provisions that would affect the
costs of defense programs that would be funded with
discretionary appropriations in 2023 and future years. Those
provisions mainly would affect force structure, compensation
and benefits, and multiyear procurement of weapons systems. CBO
has analyzed the costs of some of those provisions and
estimates that they would, on a net basis, increase the cost of
those programs compared to current law by about $12.2 billion
over the 2023-2026 period. The net costs of those provisions in
2023 and beyond are not included in the total amount of outlays
described above because CBO expects that appropriations for
those activities would be specifically authorized in National
Defense Authorization Acts in future years.
In addition, enacting H.R. 4350 would increase direct
spending by $72 million over the 2022-2031 period. It would
also increase revenue by $72 million over that same period;
thus, the net effect on the deficit would be insignificant.
Estimated Federal cost
The estimated budgetary effects of H.R. 4350 are shown in
Table 1. Of the $770.0 billion authorized for 2022, nearly
all--$767.6 billion--would be for activities within budget
function 050 (national defense).
Some authorizations, however, would fall within other
budget functions and would together total $2.5 billion. Those
authorizations include
$2.2 billion over the 2022-2023 period for
the Maritime Administration and Coast Guard in function
400 (transportation);
$75 million in 2022 for the Armed Forces
Retirement Home and $188 million over the 2022-2024
period for a medical facility demonstration fund and
other programs in function 700 (veterans benefits and
services);
$14 million for the Naval Petroleum Reserves
in function 270 (energy); and
Smaller amounts in other budget functions.
Basis of estimate
For this estimate, CBO assumes that H.R. 4350 will be
enacted near the start of fiscal year 2022 and that the
authorized and estimated amounts will be appropriated each
fiscal year. Outlays for existing programs were estimated using
historical spend-out rates.
Spending subject to appropriation
H.R. 4350 would authorize appropriations of $770.3 billion
over the 2022-2026 period, of which almost all ($770.1
billion), would be specifically authorized by the bill. Of that
amount, $767.6 billion would be authorized in 2022 for defense
programs and $2.5 billion would be specifically authorized over
the 2022-2024 period for nondefense programs (see Table 2). The
bill also includes estimated authorizations of $0.2 billion
over the 2022-2026 period for certain nondefense programs. CBO
estimates that appropriation of the specified and estimated
amounts would increase outlays by $743.1 billion over the 2022-
2026 period.
The $767.6 billion specifically authorized for defense
programs in 2022 would represent an increase of $35.8 billion
(or 5 percent) compared to the $731.8 billion appropriated for
defense in 2021. That 2021 figure includes both amounts that
count against the cap for defense spending set in the Budget
Control Act (BCA), as amended, and amounts not subject to the
cap--primarily for overseas contingency operations in and
around Iraq and Afghanistan ($69.0 billion) and for amounts
designated as emergency funding for increased security at the
U.S. Capitol ($1.0 billion). The BCA does not include defense
spending caps after 2021, and H.R. 4350 does not distinguish
between amounts authorized for overseas contingency operations
for 2022 from other defense activities.
Relative to amounts appropriated for 2021, H.R. 4350 would
increase authorizations for all major categories of defense
spending: military personnel by $4.2 billion (or 3 percent),
operations and maintenance by $7.0 billion (or 2 percent),
procurement by $6.8 billion (or 5 percent), and research and
development by $11.6 billion (or 11 percent). Authorizations
for all other defense categories combined would increase by
$6.2 billion (17 percent); most of that increase would arise
from an additional $4.9 billion for military construction and
family housing.
For nondefense programs, the bill would specifically
authorize $2.5 billion over the 2022-2024 period. That amount
includes $1.7 billion in 2022 for the Maritime Administration,
$545 million over the 2022-2023 period for certain Coast Guard
programs, $188 million over the 2022-2024 period for certain
programs of the Department of Veterans Affairs (VA), $75
million for the Armed Forces Retirement Home, and $14 million
for the Naval Petroleum Reserves.
H.R. 4350 also contains provisions that would affect the
costs of various defense and nondefense discretionary programs
in future years. The estimated effects of some of those defense
provisions are shown in Table 3 and described below. Spending
for affected programs and activities would be subject to the
appropriation of the estimated amounts. The net costs of the
defense-related provisions are not added to the total
authorized amounts described above because CBO expects those
activities would be funded with the amounts specifically
authorized in this bill for defense activities in 2022. Amounts
for those defense activities over the 2023-2026 period would be
authorized by future defense authorization acts. Estimated
amounts for nondefense provisions in Table 3, which total $0.2
billion over the 2022-2026 period, are included in the total
authorized amounts discussed above because they may not be
included in subsequent specified authorizations of
appropriation.
Military Force End Strength. The bill would affect the
force structure of the various military services by setting
end-strength levels for 2022 and modifying the minimum end-
strength levels authorized in permanent law.
Title IV would authorize end-strength levels in 2022 for
active-duty personnel and personnel in the Selected Reserves of
1,346,400 and 806,500, respectively. Of those reservists,
92,699 would serve full time on active duty in support of the
reserves. In total, active-duty end strength would decrease by
1,975 and selected-reserve end strength would decrease by
2,500, while the number of selected reservists who would serve
in full-time support positions would increase by 2,403, when
compared with levels authorized under current law for 2021. The
specified end-strength levels for each component of the armed
forces are detailed below with CBO's estimate of the effects of
those changes on DoD's costs for personnel and for operation
and maintenance. Those costs for personnel include components
of military compensation such as basic pay, allowances,
bonuses, and health care, as well as operating costs for
training and maintenance.
Active Duty. Section 401 would authorize the following
decreases in active-duty personnel for three of the five
services: 2,700 fewer for the Marine Corps, 1,600 fewer for the
Navy, and 900 fewer for the Army. The end strength authorized
for the Department of the Air Force would increase by 3,225:
1,966 more for the Space Force and 1,259 more for the Air
Force. CBO estimates that the net reduction in active-duty
personnel of 1,975 service members would reduce costs by almost
$1.0 billion over the 2022-2026 period.
Selected Reserve. Under section 411, the end strengths for
four of the six reserve components in DoD would decrease: 1,700
fewer for the Marine Corps Reserve, 500 fewer for the Army
National Guard, 300 fewer for the Army Reserve, and 200 fewer
for the Navy Reserve. End strength for the Air National Guard
would increase by 200, while the authorized level for the Air
Force Reserve would not change. CBO estimates that the net
decrease of 2,500 reservists would reduce costs by $0.5 billion
over the 2022-2026 period.
Full-Time Selected Reserve. Section 412 would increase the
number of reservists who serve full time on active duty in
support of the reserves by 2,403 compared with currently
authorized end-strength levels for 2021. Those additional full-
time reservists would increase costs by $1.7 billion over that
same period.
Reserve Technicians. Section 413 would reduce the end
strength for dual-status military technicians by 1,945. Those
personnel are federal civilian employees who are required to
maintain membership in the Selected Reserve as a condition of
their employment. CBO estimates spending on salaries for dual
status positions would decrease by $1.0 billion over the 2022-
2026 period. (Changing the number of dual-status technicians
would not change the number of reservists set by sections 411
and 412, discussed above. Thus, the only budgetary effects
would be the reduction in civilian compensation.)
Defense Compensation and Benefits. H.R 4350 includes
several provisions that would affect compensation and benefits
for uniformed personnel and civilian employees of DoD.
Expiring Bonuses and Allowances. Section 611 would extend
for one year DoD's authority to enter agreements to pay certain
bonuses and allowances to military personnel. The authority to
enter into such agreements expires on December 31, 2021. Some
bonuses are paid in lump sums, while others are paid in annual
or monthly installments over several years of military service.
On the basis of DoD's budget request for fiscal year 2022, CBO
estimates that extending that authority for one year would cost
$10.5 billion over the 2022-2026 period.
Incentive Pay for Reservists. DoD awards incentive pay to
members of the military to compensate them for filling certain
jobs such as doctors, pilots, or divers that require special
skills, extensive training, are especially dangerous, or are
otherwise difficult to fill. Under current law, some reservists
earn less in incentive pay than active-duty members, because
the latter are paid the incentive for a full month while
reservists are paid a prorated amount based on the number of
days that they perform a qualifying type of duty. Section 602
would require DoD to pay reservists the same amount of
incentive pay that active-duty members receive for performing
similar duty--that is for a full month--regardless of the
number of days they are on military duty in that month. On the
basis of information from DoD, CBO estimates that roughly
30,000 reservists would receive an average annual increase in
incentive pay of $3,700 beginning in 2023. Thus, CBO estimates
that higher incentive pay for reservists would increase costs
by $440 million over the 2022-2026 period.
Wage Grade Localities. Section 1114 would reduce the number
of geographical areas used by DoD and other federal agencies to
calculate pay for federal wage system (FWS) employees--civilian
workers in blue-collar jobs, such as crafts and trades. On the
basis of information from the Office of Personnel Management
(OPM), CBO estimates that roughly 10,250 DoD employees and
3,400 employees of other federal agencies would be affected by
the change in wage calculations. CBO estimates that average
annual pay would increase by $4,400 per employee starting in
mid-2023, accounting for the time it would take OPM to
implement the change. Thus, CBO estimates that higher pay for
FWS employees under section 1114 would increase DoD's costs by
$175 million over the 2022-2026 period. Other federal agencies'
costs would increase by $55 million over that same period.
(That amount is included in the amount shown in Table 1 for
nondefense estimated authorizations under the heading
``Estimated Authorizations for Various Departments and
Agencies'').
Compensation for Abused Dependents. Section 622 would
authorize DoD to provide up to 36 months of compensation and
health benefits to spouses and former spouses who have filed
for divorce or are divorced from active-duty members of the
armed forces because of alleged abuse by the service member.
Under current law, DoD only provides those benefits if the
department takes punitive action to discharge the member from
the military because of the abuse. On the basis of information
from the DoD, CBO estimates that about 570 spouses would begin
receiving transition compensation each year. Those payments
would average $2,000 a month. Additionally, roughly 40 percent
of those spouses would also use health benefits averaging $500
a month. CBO estimates that, on average, recipients would use
both benefits for 35 months.
On that basis and accounting for the time needed to
implement the new policy, CBO estimates that about 420 spouses
would earn five months of transitional compensation payments
starting in 2022 and that 170 of those spouses would use health
benefits for a similar portion of the year. Annual costs would
grow with the addition of new recipients until the cohort that
started getting payments in 2022 received their final payments
in 2025. At that point, the population of annual recipients
under section 622 would stabilize at about 1,700 people. In
total, CBO estimates that additional transition compensation
and health benefits would increase costs by $146 million over
the 2022-2026 period.
Benefits for Civilians in Combat Zones. Section 1102 would
extend for one year the authority to grant certain benefits to
federal civilian employees who perform official duty in a
combat zone. Those benefits, which expire under current law on
September 30, 2022, include death gratuities, paid leave and
travel for one trip home, and up to three leave periods per
year for rest and recuperation. Based on information from DoD
and the Office of Personnel Management, CBO estimates that
about 1,000 civilian employees of DoD and 500 employees of
other federal agencies will work in a designated combat zone in
2023 and, under this provision, would receive an average
benefit that would cost about $57,000 a year. Thus, CBO
estimates that implementing section 1102 would cost DoD $55
million and cost other federal agencies $30 million. (That
amount is included in Table 1 for nondefense estimated
authorizations under the heading ``Estimated Authorizations for
Various Departments and Agencies'').
Basic Needs Allowance. Section 601 would authorize DoD to
pay a monthly allowance to service members whose gross incomes
are less than 130 percent of the federal poverty guidelines
established by the Department of Health and Human Services. The
amount of the allowance would be the difference between a
service member's monthly gross income and the monthly income
level at 130 percent of poverty guidelines for the location in
the United States where the member lives and the size of the
member's household. The basic allowance for housing would be
excluded from the calculation of gross income; DoD would
determine what other compensation, such as the basic allowance
for subsistence, hostile fire pay, or reenlistment bonuses,
would be included in gross income to determine eligibility for
the new allowance. On the basis of information from DoD, CBO
expects that the department would define gross income to
include basic pay and the basic allowance for subsistence.
DoD would evaluate a service member's income annually and
notify candidates of their potential eligibility for the
allowance by December 31 of each year. Candidates (those who
received notification of potential eligibility and any other
service members who want to apply) would have until January 31
to submit applications with any required documentation to
demonstrate eligibility. DoD would review those applications
and notify the applicants of DoD's final eligibility
determination by February 28. CBO expects that some service
members would decline to receive the allowance or they would
not submit the required information by the application
deadline. Recipients would be awarded the benefit for a full
year; monthly payments would start in April and end in March of
the following year.
CBO estimates that payments would begin in April of 2023 to
allow time for DoD to develop regulations and procedures and to
implement the new policy. On the basis of data about service
members' pay and family sizes, CBO estimates that roughly 3,000
service members would receive an average benefit of $400 each
month. Those allowances would cost $50 million over the 2022-
2026 period.
FMLA Eligibility. Section 1110 would make certain veterans
who work for the federal government eligible for family and
medical leave benefits (including paid parental leave available
to federal employees) sooner than they otherwise would have
been, by counting military service toward the time required to
earn those benefits. Using birth rates from the Centers for
Disease Control and information from the Office of Personnel
Management to determine the number and salaries of veterans who
would be eligible for paid parental leave, CBO estimates the
federal government would pay $90 million to veterans who would
use such leave: $36 million for employees of DoD and $54
million for employees of other agencies. Because the family and
medical leave benefits other than parental leave are unpaid,
CBO does not estimate any cost for employees using those
benefits. (The $54 million for other agencies is included in
the amount shown in Table 1 for nondefense estimated
authorizations under the heading ``Estimated Authorizations for
Various Departments and Agencies'').
Military Health System. Title 7 would increase
discretionary costs for the Military Health System.
PFAS Blood Testing. Section 715 would require DoD to
administer blood testing as part of routine medical check-ups
to all service members who are exposed to perfluoroalkyl and
polyfluoroalkyl substances (PFAS). PFAS are a group of man-made
chemicals used in many products that may cause adverse health
effects. There is significant uncertainty as to which service
members would receive the blood testing required by this
provision. Because the use of PFAS chemicals is widespread,
most people in the United States have detectable levels of PFAS
in their blood.\1\ Research to determine acceptable levels is
ongoing. Using information from DoD on current PFAS blood
testing for military firefighters, CBO estimates that PFAS
blood tests cost about $100 each. If DoD tests all 1.4 million
active-duty members on a regular basis, the cost could be as
much as $140 million per year. If, however, DoD determines it
is only necessary to test service members in occupations that
are at high risk of exposure, testing may cost a few million
dollars per year. It's also possible DoD may test only those
who served at facilities with higher-than-normal levels of PFAS
in the environment. For this estimate, CBO used the mid-point
of the range of possible outcomes, or about $70 million per
year. Costs would be lower in the first year because of the
time needed to issue regulations. In total, CBO estimates
section 715 would increase the need for appropriations by $315
million over the 2022-2026 period.
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\1\Agency for Toxic Substances and Disease Registry, ``PFAS Blood
Testing'' (accessed September 10, 2021), http://www.atsdr.cdc.gov/pfas/
health-effects/blood-testing.html.
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Cost Sharing for Telehealth. Subsection 703(a) would
require DoD to waive beneficiary cost sharing for telehealth
appointments during all public health emergencies and during
the 180-day period after the conclusion of the emergency for
the COVID-19 pandemic. DoD currently has authority to waive
cost sharing for telehealth services, and they have been doing
so during the COVID-19 emergency. It is not clear how long the
department will continue to do so.
At least some portion of the United States has been under a
public health emergency for most of the past decade, usually in
response to localized natural disasters. Using data from DoD,
CBO estimates that waiving cost sharing for all telehealth
appointments would cost DoD about $80 million per year. Given
the uncertainty about the future timing and geographic
distribution of public health emergencies and how DoD will use
its current waiver authority, CBO estimates the probability
that this provision would result in additional waivers in a
given year is about 25 percent. Thus, on a probabilistic basis,
the requirement would cost about $20 million per year. Costs
would be lower in 2022 because DoD intends to use its current
waiver authority through the end of the COVID-19 emergency,
which CBO currently anticipates will end in late fiscal year
2022. After factoring for inflation and the requirement to
waive cost-sharing for 180 days after the conclusion of the
COVID-19 emergency, which would increase costs in 2022 and
2023, CBO estimates this provision would increase the need for
appropriations by $100 million over the 2022-2026 period.
Subsection 703(a) would also affect direct spending for
health care. Those effects are described under the heading
``Direct Spending and Revenues.''
Contraception Cost Sharing. Section 705 would eliminate
cost sharing for contraceptive pharmaceuticals and devices for
those who use TRICARE during the one-year period beginning 30
days after the enactment of the bill. On the basis of
information from DoD, CBO estimates that beneficiaries
currently pay about $15 million each year for their share of
contraceptive drugs and devices. Under the proposal, those
costs would be borne by DoD. In addition, eliminating out-of-
pocket costs would increase beneficiaries' use of brand-name
drugs and decrease the use of generic drugs because
beneficiaries would no longer incur higher copayments for
brand-name drugs. On the basis of various studies and data on
the number of generic pharmaceuticals currently used by TRICARE
beneficiaries, CBO estimates this substitution effect would
cost about $5 million. In total, CBO estimates section 705
would cost $20 million over the 2022-2023 period.
Section 705 also would affect direct spending. Those
effects are described under the heading ``Direct Spending and
Revenues.''
Other Defense Provisions. Various other provisions would
affect discretionary spending for other defense programs.
$15 Minimum Wage. Section 804 would require federal
contractors working on services and construction contracts for
DoD to pay employees at least $15 per hour. That requirement
would apply to contracts that are subject to the Fair Labor
Standards Act, the Service Contract Act, or the Davis-Bacon Act
and are awarded on or after January 30, 2022. The minimum wage
for employees working on such contracts is currently $10.95 per
hour. Under the bill, the rate would be adjusted annually for
inflation after 2022. CBO estimates that implementing section
804 would cost DoD about $3.8 billion over the 2021-2026
period.
On July 22, 2021, the Department of Labor published a
notice of proposed rulemaking to implement Executive Order
14026, Increasing the Minimum Wage for Federal Contractors.
Using information from that notice, CBO estimates that
implementing section 804 would increase the pay of about 65,000
contractor employees working on DoD contracts in 2022, and
130,000 annually over the 2023-2026 period. The number of
affected employees would be lower in 2022 because the higher
wage rate would only apply to contracts entered into on or
after January 30, 2022. On average, those employees would
receive a pay increase of about $2.50 per hour over a 37-hour
workweek, costing DoD $315 million in additional wages in 2022
(or about $630 million on an annualized basis) as contractors
pass those higher wage costs to the department. Over the 2021-
2026 period, those employees would receive about $3.0 billion
more in wages, CBO estimates.
In addition to the wage increase estimated above, CBO
expects that federal contractors would pass along other costs
such as payroll taxes, fringe benefits, overhead, and general
administrative costs that increase because of the higher wages
paid to their employees. CBO estimates that those expenses
would add 25 percent (or about $770 million) to contract costs
over the 2021-2026 period.
Because the Department of Labor has published a notice of
proposed rulemaking to increase the hourly minimum wage to $15,
CBO's baseline reflects the assumption that there is a 50
percent probability that the rule will be finalized and take
effect. The costs shown in Table 3, therefore, equal 50 percent
of the estimated $3.8 billion cost of implementing section 804.
If the rule is finalized, those costs would be passed through
to DoD under current law. In that case, section 804 would not
affect the federal budget.
Multiyear Procurement Contracts. The bill would authorize
DoD to enter into multiyear procurement contracts (MYP) for
four weapons systems. Multiyear procurement is a special
contracting method authorized in current law that permits the
government to enter into contracts covering acquisitions for
more than one year but not more than five years, even though
the total funds required for all years are not appropriated at
the time the contracts are awarded. Contracts that would cost
more than $500 million must be specifically authorized in law.
Section 112 would authorize the Army to
enter a multiyear contract beginning in fiscal year
2022 to purchase UH/HH-60M Blackhawk aircraft. The UH/
HH-60M is a medium-lift helicopter that is used to
transport military personnel and supplies. On the basis
of information from the Army, CBO estimates that under
such a contract the service would buy those aircraft
over the 2022-2026 period at a cost of $2.3 billion.
The service estimates that a single multiyear contract
would cost $361 million less than five annual
contracts.
Section 111 would authorize the Army to
enter a multiyear contract beginning in fiscal year
2022 to purchase AH-64E Apache aircraft. The AH-64E is
a heavy attack helicopter capable of firing missiles
and other munitions. On the basis of information from
the Army, CBO estimates that under such a contract the
service would buy those aircraft over the 2022-2026
period at a cost of $1.7 billion. The service estimates
that a single multiyear contract would cost $213
million less than five annual contracts.
The Navy is authorized to enter a MYP
contract for three San Antonio-class amphibious ships
and one America-class amphibious ship in fiscal year
2021. Section 121 would extend that authority to fiscal
year 2022. Section 123 would authorize the department
to enter a multiyear contract to purchase up to 15
Arleigh Burke-class destroyers beginning in fiscal year
2023. Because the Navy did not request those MYP
contract authorities and has not provided information
on how it would use them, CBO cannot estimate the costs
of those sections or any potential savings that could
arise from using MYP contracts rather than a series of
annual contracts.
Space National Guard. Sections 921-924 would create a Space
National Guard as a new reserve component of the Space Force.
The costs of a new Space National Guard would vary
significantly depending on the size and organizational
structure of this new component.
In a recent report, CBO analyzed the potential cost for a
small Space National Guard that would be created by
transferring 1,500 personnel from Air National Guard and Army
National Guard units.\2\ CBO estimates that it would cost about
$100 million annually to operate and support a Space National
Guard of that size. We also estimated that construction of
additional facilities would cost about $20 million.
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\2\Congressional Budget Office, Costs of Creating a Space National
Guard (June 2020), www.cbo.gov/publication/56374.
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CBO also analyzed the potential cost for a large Space
National Guard that would be about one-third the size of the
Space Force, the same size as the Air National Guard in
comparison with the size of the Air Force. Under that approach,
the Space National Guard would consist of 4,900 to 5,800
personnel. CBO estimates that it would cost $385 million to
$490 million annually to operate and support such a Space
National Guard. Constructing additional facilities and
equipping the new units would cost of $400 million to $900
million, CBO estimates.
Nondefense Provisions. Several provisions would affect
discretionary spending for nondefense programs.
Expanded Registration for Selective Service. Under current
law, male citizens and certain other men who are residing in
the United States and who are between the ages of 18 and 26,
must register with the Selective Service System (SSS). Section
513 would require all citizens, not just men, who meet the age
and other registration requirements to register for the SSS,
making them eligible for a military draft.
To implement the new requirement, SSS would need to hire
additional personnel, increase office space and equipment, and
publicize additional materials the public about this new
requirement. Because section 513 would establish a duty for all
citizens who turn 18 one year after enactment of the bill to
register, CBO estimates that SSS would start to process the
expanded registrations in 2023.
Based on information from SSS, CBO expects the agency would
begin to hire and train new personnel and publicize the new
requirement to register in 2022. CBO estimates that section 513
would increase discretionary costs to SSS by $68 million over
the 2021-2026 period. (Those discretionary costs are included
in the amount shown in Table 1 for nondefense estimated
authorizations under the heading ``Estimated Authorizations for
Various Departments and Agencies'').
Goldwater Education. Title 50 would amend the act
authorizing the Barry Goldwater Scholarship and Excellence in
Education Foundation. Because the bill would amend the
activities of the Foundation and the uses of the trust fund,
CBO estimates authorization of appropriations for the
Foundation's activities in future years. Based on funding
levels of other federal foundations, CBO estimates the bill
would authorize the appropriation of $1 million for each of
fiscal years 2023 through 2026. Title 50 also would affect
direct spending. Those effects are described under the heading
``Direct Spending and Revenues.''
Direct Spending and Revenues
Four provisions of the bill would significantly affect both
direct spending, one of which would also affect revenues.
However, those effects would offset overall so that the net
effect on the deficit would be insignificant over the 2022-2031
period (see Table 4). Other provisions in this bill would have
insignificant effects on direct spending and revenues.
Military Health Fraud and Abuse Program. Section 713 would
allow DoD to levy fines on providers in the military health
system who commit fraud and abuse and would allow DoD to retain
and spend those amounts without further appropriation. Fines
are classified as revenues, and the spending of those amounts
would constitute direct spending.
The authorities granted by section 713 would be similar to
those used by the Department of Health and Human Services to
address fraud in the Medicare program. Based on the amount of
collections relative to total spending for that program, CBO
estimates that DoD would take in about $15 million per year
with this new authority. Half of that amount would arise from
recoupment of amounts previously paid to providers. Recoveries
are classified as receipts, or reductions in direct spending
that would be fully offset by the subsequent spending of the
amount. The remaining half would be fines and penalties, which
are classified as revenues. The spending of those revenues
would increase direct spending. Thus, collections of fines and
penalties would increase revenues by about $7 million per year
and increase direct spending by the same amount, resulting in
an insignificant change in the deficit. After factoring for
inflation and the time needed to pursue and collect from
violators, which would delay collections in the first few
years, CBO estimates section 713 would increase both direct
spending and revenues by $72 million over the 2023-2031 period.
Cost Sharing for Telehealth. Subsection 703(a) would
require DoD to waive beneficiary cost sharing for telehealth
appointments during public health emergencies and during the
180-day period after the conclusion of the emergency for the
COVID-19 pandemic. In addition to the effects on costs for
military personnel health care, spending would increase for
Medicare-eligible retirees and retirees of the other uniformed
services (Coast Guard, National Oceanic and Atmospheric
Administration, and Public Health Service) and their
dependents, who comprise about 3 percent of the affected
population. Health benefits for those beneficiaries are paid
from mandatory appropriations. In total, CBO estimates that
subsection 703(a) would increase direct spending by $9 million
over the 2022-2031 period. Implementing the provision also
would increase discretionary spending. Details of those
effects, as well as additional details about the estimate, are
described under the heading ``Spending Subject to
Appropriation.''
Retired Pay for Reservists. Subsection 703(b) would allow
military retirees who serve in positions in the ready reserve
that are short of personnel to receive both retired pay and
duty pay during the four-year period after enactment. Under
current law, retirees who serve in the reserve forfeit retired
pay in exchange for duty pay. CBO expects that more retirees
would serve in the reserves because of the change. The
accumulation of additional service time would increase retired
pay, which is paid from the Military Retirement Fund, a
mandatory appropriation. On the basis of information from DoD
about critical personnel shortages in the ready reserve, CBO
expects that about 1,200 retirees would serve in the ready
reserve during the temporary program. After that service, their
retired pay would increase by about $1,500 per year because of
the additional duty time. Enacting subsection 703(b) would
increase direct spending by $16 million over the 2022-2031
period, CBO estimates.
Open Enrollment Period for Survivor Benefit Plan.
Subsection 703(c) would allow military retirees who
discontinued their enrollment in the Survivor Benefit Plan
(SBP) to reenroll during the period beginning on the date of
enactment and ending on January 1, 2023. As a condition of
their enrollment, they would be required to make retroactive
premium payments back to the date on which they discontinued
their enrollment. On net, that would increase receipts in the
near term; that reduction is classified as a decrease in direct
spending. Spending would eventually increase over time as
survivor benefits are paid from the Military Retirement Fund.
On the basis of information from DoD, CBO expects that about
1,000 retirees would reenroll in the SBP. Those retirees would
pay an average of $17,000 in back premiums and $2,000 in annual
premiums. CBO expects that by 2031, about 100 survivors of
reenrolled retirees would receive benefits averaging about
$1,800 per month. In total, CBO expects that subsection 703(c)
would reduce direct spending by $25 million over the 2022-2031
period.
Other Provisions. Several provisions in H.R. 4350 would
have insignificant effects on direct spending and revenues,
generally because they would affect very few people, would have
offsetting effects, or involve transactions of very small
amounts.
Section 512 would reduce the service
commitment that service members owe after taking a one-
time career intermission (or sabbatical) from active
service. During a career intermission, a service member
retains eligibility for disability retirement. Section
512 could increase the number of service members who
receive retired pay for disabilities incurred during a
career intermission.
Section 513 would require all citizens, not
just men, to register with the Selective Service
System. As a result, a very small number of people who
are not currently U.S. citizens would lose eligibility
for some mandatory federal benefits because they would
fail to register. They would also have to wait longer
to sponsor noncitizen family members for legal
permanent resident status.
Section 517 would amend the administrative
separation process, which could result in changes to
characterizations of discharges of some service
members. Because eligibility for some mandatory
benefits is tied to the characterization of discharge,
a change in those characterizations would affect direct
spending.
Section 519C would require the Secretary of
the Navy to award additional years of service for
retirement eligibility to service members who
participated in the Seaman to Admiral-21 program in
2010-2014 if those service members were not properly
informed that such participation would not count toward
retirement eligibility. Few of those service members
would receive retired pay during the 2022-2031 period.
Sections 525, 539C, and 539D would establish
or modify punishable offenses under the military
justice system. Additional penalties collected as a
result of those provisions would be classified as
revenues.
Section 526 would make it easier for a
person to prove they were subjected to unlawful
reprisal for protected whistleblower actions. CBO
estimates that enacting section 526 would increase the
number of whistleblowers found to have suffered
reprisal and that some would receive retroactive pay
and benefits.
Section 622 would allow certain spouses to
retain eligibility to shop at commissary stores, thus
increasing the patron base for those stores and the
number of credit and debit card transactions processed.
The processing costs for those transactions are paid
from mandatory appropriations.
Section 623 would authorize DoD to seek
reimbursement from a provider of shipping services when
that provider damages, loses, or destroys the personal
effects of a deceased service member. A portion of
reimbursements would be retained in the Treasury, which
would be classified as a reduction in direct spending.
Section 705 would lower the out-of-pocket
cost of contraceptives for retirees of the other
uniformed services (U.S. Coast Guard, National Oceanic
and Atmospheric Administration, and Public Health
Service) and their dependents. Health benefits for
those retirees are paid from mandatory appropriations.
Section 716 would prohibit DoD from
discharging service members with a discharge
characterization of anything less than honorable based
solely on their COVID-19 vaccination status. CBO
expects that few unvaccinated service members will be
discharged with a characterization that differs from
what they would have received in the absence of a
vaccination requirement and any characterizations less
than honorable will be based on aspects of their
service. Thus, few discharge characterizations would be
upgraded under this section. Veterans must be honorably
discharged to use education benefits from the
Department of Veterans Affairs.
Section 817 would modify the requirements
for DoD to use competitive procurement procedures for
purchases from Federal Prison Industries (FPI). FPI is
a government-owned corporation that produces goods and
services with prison labor. Its collections and
spending are considered mandatory; thus, attempts to
modify its market would likely result in changes in net
direct spending.
Section 1110 would make certain veterans who
work for the federal government eligible for family and
medical leave benefits (including paid parental leave
available to federal employees) sooner than they
otherwise would have been, by counting military service
toward the time required to earn those benefits. Some
federal employees would accrue higher sick leave
balances during their career because they would use the
new paid parental leave benefits in lieu of sick leave.
As a result, some of those employees would see a higher
federal pension when they retire.
Section 1114 would reduce the number of
geographical areas used by DoD and other federal
agencies to calculate pay under the federal wage
system, increasing wages for some employees. Enacting
Section 1114 could affect direct spending by some
agencies that are authorized to increase certain fees
to cover operating costs. The net effect of higher fees
and spending would be insignificant.
Sections 731, 1221, 1223, 2821, and 2863,
would extend or add to agencies' authority to accept
and spend amounts received from nonfederal entities for
various purposes. Because some of those agencies would
not spend all the funds they receive, those sections
would reduce direct spending.
Sections 2852, 2853, and 2854 would
authorize the conveyance of several parcels of land to
nonfederal entities.
Section 3517 would allow the Coast Guard to
collect a documentation fee for a vessel that it would
not otherwise collect under current law.
Section 3520 would authorize the Maritime
Administration to use previously appropriated but
unobligated amounts to purchase duplicate medals for
certain merchant mariners who served during World War
II.
Section 6005 would allow qualified
Portuguese nationals to be admitted into the United
States as nonimmigrant (temporary) traders or
investors. Those nonimmigrants would be eligible for
health-insurance subsidies if they otherwise qualify.
Section 6011 would extend the period that
people can use education benefits under programs
administered by the Department of Veterans Affairs (VA)
if such use is delayed because their school closes for
an emergency or other reasons determined by VA.
Section 6012 would waive application fees
for two immigration benefits if the applicant is the
parent, spouse, or minor child of a service member who
was awarded the Purple Heart.
Title 50 would authorize additional
appropriations to the trust fund of the Barry Goldwater
Scholarship and Excellence in Education Foundation,
which would be invested in Treasury obligations. The
interest earned on balances in the fund would be spent
on the trust fund's activities without appropriation.
That interest would be an intergovernmental transfer
and thus would not affect federal spending. The outlays
by the Foundation would be classified as direct
spending.
Uncertainty
Most estimates for this bill are affected by some level of
uncertainty, but three provisions in particular are difficult
to estimate. Subsection 703(a), which would require DoD to
waive cost sharing for telehealth appointments during public
health emergencies, is subject to considerable uncertainty. It
is difficult to predict when a public health emergency will be
declared, how long it will last, and how DoD would implement
the waiver requirement in relation to its other authorities.
Several factors would ultimately determine the cost of section
804, which would require DoD contractors to pay their employees
at least $15 per hour. The cost of that section would depend on
the number of affected workers, the amount of the increase that
contractors would pass on to DoD, and the effect on wages of
employees currently making more than $15 per hour. The cost of
a Space National Guard (sections 921-924) would depend on the
size and organizational structure of this new component.
Pay-As-You-Go considerations
The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting
direct spending or revenues. The net changes in outlays and
revenues that are subject to those pay-as-you-go procedures are
shown in Table 4.
Increase in long-term deficits
CBO estimates that enacting H.R. 4350 would not increase
on-budget deficits by more than $5 billion in any of the four
consecutive 10-year periods beginning in 2032.
Mandates
H.R. 4350 would impose intergovernmental and private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
CBO estimates that the aggregate cost to comply with the
intergovernmental mandates would not exceed the threshold
established in UMRA ($85 million in 2021, adjusted annually for
inflation). However, CBO cannot determine whether the aggregate
cost of the mandates on private-sector entities would exceed
the threshold established in UMRA ($170 million in 2021,
adjusted annually for inflation).
CBO has not reviewed section 1075 of the bill for
intergovernmental or private-sector mandates. Section 4 of UMRA
excludes from the application of that act any legislative
provision that enforces constitutional rights of individuals.
CBO has determined that section 1075 falls within that
exclusion because it would enforce constitutional rights
related to voting.
Intergovernmental mandates
The bill would impose an intergovernmental mandate in title
X, subtitle F, on Washington, D.C., by transferring control of
the District of Columbia National Guard to the city without
providing a mechanism for refusal. The bill would amend the
Code of the District of Columbia to designate the city's mayor
as the Guard's commander-in-chief, with authority to activate
the Guard in response to local events that would be the same as
that of state governors. Under current law, the President
serves in that role. CBO expects that the provision would not
alter the Guard's funding structure and therefore estimates
that it would have no budgetary effect.
Section 529 would impose a mandate on state, local,
territorial, and tribal courts and law enforcement agencies by
requiring them to enforce protective orders issued by military
courts. Those orders would be issued by military judges and
magistrates to protect at-risk military personnel and
civilians, such as victims of alleged sexual assault or
domestic violence. The cost to comply would depend on the
number of protective orders issued each year; in fiscal year
2019, fewer than 1,000 such orders were issued. CBO estimates
that the cost of enforcement would be small.
Intergovernmental and private-sector mandates
Section 401 would increase the costs of complying with
existing intergovernmental and private-sector mandates by
increasing the number of service members on active duty by
about 7,700 relative to currently authorized levels. Those
additional service members would be eligible for protections
under the Servicemembers Civil Relief Act (SCRA). Protections
under SCRA require public and private entities to grant active-
duty personnel various allowances for business and tax
transactions and court procedures.
For example, SCRA allows service members to maintain a
single state of residence for paying state and local personal
income taxes and to request deferrals for certain state and
local fees. SCRA also requires creditors to charge no more than
6 percent interest on service members' loan obligations for
loans acquired before a member started active-duty service, and
it allows courts to temporarily stay certain civil proceedings,
such as evictions, foreclosures, and repossessions. SCRA also
prohibits lenders from using service members' personal assets
to satisfy trade or business liabilities while they are in
military service.
Under the bill, the number of active-duty service members
covered by SCRA would increase by about 1 percent, CBO
estimates. Service members' use of the various provisions of
SCRA depends on factors such as the frequency and duration of
their deployments. The increase in the number of active-duty
service members covered by SCRA would be small, and CBO
estimates that the incremental cost of compliance for public or
private entities also would be small.
Private-Sector mandates
Section 5101 of the bill would impose private-sector
mandates as defined in UMRA by prohibiting debt collectors from
threatening members of the armed forces and their dependents
with certain adverse actions. The cost of the mandate would be
the revenue lost by collectors who otherwise would collect
payments on the affected debts. According to the Consumer
Financial Protection Bureau, active-duty service members hold
roughly $3 billion in student loans that are in deferral,
delinquency, or default, which only represents a portion of the
debt affected under the bill. Because the amount of collections
that could be directly attributed to actions that are
prohibited under the bill is unknowable, CBO cannot determine
whether the cost of the mandates would exceed the private-
sector threshold established in UMRA.
The bill also would impose two additional private-sector
mandates. One would expand an existing mandate by requiring all
citizens, not just men, between the ages of 18 and 26 to
register with Selective Service. The second would prohibit
consumer reporting agencies from reporting any adverse item of
information in consumer reports that would arise as a result of
a consumer being a victim of sex trafficking or human
trafficking. CBO estimates that the cost of complying with
those mandates would be small.
Other effects
Expanding the requirement to register for the Selective
Service could result in other actions by governmental entities.
Many states have enacted laws that support compliance with the
federal registration requirement. Some states, for example,
require male citizens to prove that they are registered to be
eligible to obtain a driver's license. If a state chose to
support the expansion of the registration requirement by
updating its laws or regulations, it would incur additional
administrative costs; however, those costs would be incurred as
a result of state laws and would not stem from a mandate under
UMRA.
Previous CBO estimate
On July 26, 2021, CBO transmitted a cost estimate for S.
576, the Great Lakes Winter Commerce Act, as ordered reported
by the Senate Committee on Commerce, Science, and
Transportation on April 28, 2021. Parts of S. 576 are similar
to section 5301 of H.R. 4350: Both bills would authorize the
appropriation of $350 million in 2022 for the acquisition of an
icebreaker. Section 5301 would authorize an additional $20
million for icebreaker acquisition in 2023; S. 576 would not.
Estimate prepared by
Federal Costs: Caroline Dorminey: Weapons Procurement;
Justin Humphrey: Goldwater Education Program; Aaron Krupkin:
Maritime Administration and Coast Guard; William Ma: Operation
and Maintenance, Military Justice, and Minimum Wage;
Christopher Mann: Military Construction and Family Housing;
Aldo Prosperi: Research and Development and Selective Service;
David Rafferty: Military Retirement and Immigration; Dan Ready:
Wage Localities and FMLA Eligibility; Dawn Sauter Regan:
Military and Civilian Personnel; Matt Schmit: Specified
Authorizations and Military Health System.
Mandates: Brandon Lever.
Estimate reviewed by
David Newman, Chief, Defense, International Affairs, and
Veterans' Affairs Cost Estimates Unit; Kathleen FitzGerald,
Chief, Public and Private Sector Mandates Unit; Sheila Dacey,
Chief, Income Security and Education Cost Estimates Unit;
Christi Hawley Anthony, Chief, Projections Unit; Susan Willie,
Chief, Natural and Physical Resources Cost Estimates Unit; Leo
Lex, Deputy Director of Budget Analysis; Theresa Gullo,
Director of Budget Analysis.
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 4350, AS REPORTED BY THE HOUSE COMMITTEE ON ARMED SERVICES ON
SEPTEMBER 10, 2021
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------
2021 2022 2023 2024 2025 2026 2021-2026
----------------------------------------------------------------------------------------------------------------
Increases in Spending Subject to Appropriation
Specified Authorizations for Defense
Appropriations
Authorization Levela................... 0 767,585 0 0 0 0 767,585
Estimated Outlays...................... 0 449,642 185,386 61,755 30,811 13,150 740,744
Specified Authorizations for Nondefense
Appropriations
Authorization Levelb................... 0 2,431 32 14 0 0 2,477
Estimated Outlays...................... 0 447 282 386 507 480 2,102
Subtotal, Specified Authorizations
Authorization Level................ 0 770,016 32 14 0 0 770,062
Estimated Outlays.................. 0 450,089 185,668 62,141 31,318 13,630 742,846
Estimated Authorizations for Nondefense
Appropriationsc
Estimated Authorization Level.......... 0 27 68 39 38 39 211
Estimated Outlays...................... 0 25 64 42 38 39 208
Total
Estimated Authorization Level...... 0 770,043 100 53 38 39 770,273
Estimated Outlays.................. 0 450,114 185,732 62,183 31,356 13,669 743,054
Increases and Decreases (-) in Direct Spending and Revenuesd
Changes in Direct Spending Outlays......... 0 -18 3 6 8 10 9
Increases in Revenues...................... 0 0 3 5 7 8 23
----------------------------------------------------------------------------------------------------------------
Except as discussed in footnote c, the authorization levels in this table reflect amounts that would be
specifically authorized by the bill (as reflected in Table 2). Some provisions in the bill also would affect
the costs of defense programs in 2023 and future years but not specifically authorize appropriations for those
years. Estimates for some of those provisions, which are shown in Table 3, are not included above because CBO
expects authorizations of appropriations for those costs would be provided in subsequent defense authorization
acts.
aAmounts that would be specifically authorized by the bill for defense programs, detailed in Table 2.
bAmounts that would be specifically authorized by the bill for nondefense programs, detailed in Table 2.
cEstimated authorizations for nondefense programs are detailed in Table 3. Those totals are displayed above
because CBO does not assume that they would be included in any future specified authorization of
appropriations.
dIn addition to the changes in direct spending and revenue shown here, H.R. 4350 would have effects beyond 2026.
CBO estimates that over the 2022-2031 period, the bill would increase direct spending outlays by $72 million.
However, it would also increase revenue by $72 million over the same period so that the net effect on the
deficit would be insignificant (see Table 4).
TABLE 2.--SPECIFIED AUTHORIZATIONS OF APPROPRIATIONS IN H.R. 4350, AS REPORTED BY THE HOUSE COMMITTEE ON ARMED
SERVICES ON SEPTEMBER 10, 2021
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------
2021 2022 2023 2024 2025 2026 2021-2026
----------------------------------------------------------------------------------------------------------------
Specified Authorizations for Defense Appropriations
Department of Defense Military Personnel
Authorization Level.................... 0 166,859 0 0 0 0 166,859
Estimated Outlays...................... 0 155,383 9,275 226 45 0 164,929
Operation and Maintenance
Authorization Level.................... 0 290,958 0 0 0 0 290,958
Estimated Outlays...................... 0 188,976 75,983 11,853 4,127 1,771 282,710
Procurement
Authorization Level.................... 0 148,159 0 0 0 0 148,159
Estimated Outlays...................... 0 31,277 42,586 33,625 19,441 8,814 135,743
Research and Development
Authorization Level.................... 0 118,074 0 0 0 0 118,074
Estimated Outlays...................... 0 53,758 46,619 10,050 4,486 1,112 116,025
Military Construction and Family Housing
Authorization Level.................... 0 13,421 0 0 0 0 13,421
Estimated Outlays...................... 0 974 2,560 3,544 2,697 1,449 11,224
Revolving Funds
Authorization Level.................... 0 1,902 0 0 0 0 1,902
Estimated Outlays...................... 0 1,506 322 63 7 3 1,901
Subtotal, Department of Defense
Authorization Level................ 0 739,372 0 0 0 0 739,372
Estimated Outlays.................. 0 431,874 177,345 59,361 30,803 13,149 712,532
Atomic Energy Defense Activitiesa
Authorization Level.................... 0 28,212 0 0 0 0 28,212
Estimated Outlays...................... 0 17,768 8,041 2,394 8 1 28,212
Total Specified Authorizations for
Defense Appropriations
Authorization Level................ 0 767,585 0 0 0 0 767,585
Estimated Outlays.................. 0 449,642 185,386 61,755 30,811 13,150 740,744
Specified Authorizations for Nondefense Appropriationsb
Various Department and Agenciesb
Authorization Level.................... 0 2,431 32 14 0 0 2,477
Estimated Outlays...................... 0 447 282 386 507 480 2,102
Total Specified Authorizations
Authorization Level................ 0 770,016 32 14 0 0 770,062
Estimated Outlays.................. 0 450,089 185,668 62,141 31,318 13,630 742,846
----------------------------------------------------------------------------------------------------------------
This table reflects specified authorizations of appropriations in the bill. Various provisions of the bill also
would authorize activities and provide authorities that would affect costs in 2023 and in future years.
Because the bill would not specifically authorize appropriations to cover those costs, they are not included
in this table. Table 3 provides the estimated costs of some of those provisions.
aPrimarily for the atomic energy defense activities of the Department of Energy.
bThe bill would authorize $1,655 million in 2022 for the Maritime Administration. That amount excludes
authorizations specified in the bill that are already authorized in current law. It also would authorize $545
million over the 2022-2023 period for the Coast Guard, $188 million over the 2022-2024 period for the
Department of Veterans Affairs, $75 million in 2022 for the Armed Forces Retirement Home, and $14 million in
2022 for the Naval Petroleum Reserves.
TABLE 3.--ESTIMATED COSTS FOR SELECTED PROVISIONS IN H.R. 4350, AS REPORTED BY THE HOUSE COMMITTEE ON ARMED
SERVICES ON SEPTEMBER 10, 2021
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
---------------------------------------------------------------
2021 2022 2023 2024 2025 2026 2021-2026
----------------------------------------------------------------------------------------------------------------
Military Force End Strength
Active-Duty..................................... 0 -30 -220 -230 -230 -240 -950
Selected Reserve................................ 0 -80 -100 -100 -110 -110 -500
Full-Time Selected Reserve...................... 0 200 360 370 390 400 1,720
Reserve Technicians............................. 0 -110 -220 -230 -240 -240 -1,040
Defense Compensation and Benefits
Expiring Bonuses and Allowances................. 0 3,580 2,620 1,890 1,860 510 10,460
Incentive Pay for Reservists.................... 0 0 110 110 110 110 440
Wage Grade Localities........................... 0 0 20 50 50 55 175
Compensation for Abused Dependents.............. 0 4 18 33 44 47 146
Benefits for Civilians in Combat Zones.......... 0 0 55 0 0 0 55
Basic Needs Allowance........................... 0 0 5 15 15 15 50
FMLA Eligibility (DoD).......................... 0 7 7 7 7 8 36
Military Health System
PFAS Blood Testing.............................. 0 35 70 70 70 70 315
Cost Sharing for Telehealth..................... 0 10 25 20 20 25 100
Contraception Cost Sharing...................... 0 15 5 0 0 0 20
Other Defense Provisions
$15 Minimum Wage Multiyear Procurement.......... 0 195 405 420 435 450 1,905
UH/HH 60M Black Hawk Helicopters............ 0 494 418 472 474 467 2,325
AH-64E Apache Helicopters................... 0 423 439 484 351 0 1,697
Nondefense Provisionsa
Expanded Registration for Selective Service..... 0 17 17 12 11 11 68
Wage Grade Localities........................... 0 0 10 15 15 15 55
FMLA Eligibility (other agencies)............... 0 10 10 11 11 12 54
Benefits for Civilians in Combat Zones.......... 0 0 30 0 0 0 30
Goldwater Education............................. 0 0 1 1 1 1 4
----------------------------------------------------------------------------------------------------------------
DoD = Department of Defense; PFAS = perfluoroalkyl and polyfluoroalkyl substances.
Amounts shown for defense programs and activities in this table for 2022 are included in the amounts that would
be specifically authorized to be appropriated by the bill (as shown in Table 2 and summarized in Table 1).
Associated costs for defense programs after 2022 would not be specifically authorized by H.R. 4350 (and
therefore are not included in Tables 1 and 2); rather, CBO expects those amounts would be covered by specified
authorizations in future National Defense Authorization Acts.
aFor agencies other than DoD, the bill would not authorize appropriations (in specified amounts) to cover costs
shown above. Table 1 summarizes CBO's estimate of those costs.
TABLE 4.--ESTIMATED CHANGES IN DIRECT SPENDING AND REVENUES UNDER H.R. 4350, AS REPORTED BY THE HOUSE COMMITTEE ON ARMED SERVICES ON SEPTEMBER 10, 2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------------------------------------------
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-2026 2021-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases or Decreases (-) in Direct Spending
Military Health Fraud and Abuse Program
Estimated Budget Authority................. 0 0 3 5 7 8 9 9 10 10 11 23 72
Estimated Outlays.......................... 0 0 3 5 7 8 9 9 10 10 11 23 72
Cost Sharing for Telehealth
Estimated Budget Authority................. 0 * 1 1 1 1 1 1 1 1 1 4 9
Estimated Outlays.......................... 0 * 1 1 1 1 1 1 1 1 1 4 9
Retirees in the Reserves
Estimated Budget Authority................. 0 1 1 1 1 2 2 2 2 2 2 6 16
Estimated Outlays.......................... 0 1 1 1 1 2 2 2 2 2 2 6 16
Survivor Benefit Plan
Estimated Budget Authority................. 0 -19 -2 -1 -1 -1 -1 * * * * -24 -25
Estimated Outlays 0 -19 -2 -1 -1 -1 -1 * * * * -24 -25
Total Changes in Direct Spending
Estimated Budget Authority............. 0 -18 3 6 8 10 11 12 13 13 14 9 72
Estimated Outlays...................... 0 -18 3 6 8 10 11 12 13 13 14 9 72
Increases in Revenues
Military Health Fraud and Abuse Program........ 0 0 3 5 7 8 9 9 10 10 11 23 72
Net Increase or Decrease (-) in the Deficit From Changes in Direct Spending and Revenues
Effect on the Deficit.......................... 0 -18 * 1 1 2 2 3 3 3 3 -14 *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; * = between -$500,000 and $500,000. Estimates relative to CBO's July 2021 baseline.
CBO estimates that enacting H.R. 4350 would not increase on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods
beginning in 2032. Other provisions in H.R. 4350 would have insignificant effects on direct spending and revenues.
[all]