Summary 

H.R. 3326, the Department of Defense Appropriations Act, 2010, would provide $636.3 billion in new discretionary spending authority for the Department of Defense (DoD), including $128.2 billion in funding for overseas contingency operations. The total is $3.9 billion below the President’s budget request, equal to the House, and $4.4 billion above the Fiscal Year 2009 enacted level, including supplemental appropriations. The bill provides $4 billion in General Transfer Authority. 

This Legislative Bulletin draws from summaries of the bill prepared by the Senate Committee on Appropriations staff, the Committee report, (111-74), as well as the bill language.

Major Provisions

Title I: Military Personnel

H.R. 3326 would provide a total of $124.8 billion for military personnel, which is $447.8 million below the President’s request and $10.4 billion more than the previous year’s funding level. It funds an overall DoD end strength of 2,269,500 (1,425,000 for the Active component and 844,500 for the Reserve Component). Funding levels would be provided as follows: 

Troop Strength. H.R. 3326 would support the Active component and Reserve and National Guard end strength levels as recommended in S. 1390, the National Defense Authorization Act for Fiscal Year 2010. This includes requested end strength increases of 22,000 for the Army (funded in title IX of the bill) and would sustain the grow the force end strength levels already reached by Marine Corps and the Army National Guard and Reserve forces. Funding for several personnel accounts have been decreased (as the above chart shows) based on findings of a Government Accountability Office (GAO) analysis of projected Fiscal Year 2010 end strength levels, as well as GAO analysis of past year obligation rates.

Title II: Operation and Maintenance

 H.R. 3326 would provide $154 billion for operation and maintenance, which is $2.4 billion less than the President’s budget request but $1.1 billion more than the Fiscal Year 2009 level. The bill would provide the following appropriations for the armed services: Army, $30.67 billion; Navy, $34.77 billion; Marine Corps, $5.44 billion; Air Force, $33.74 billion; Army Reserve, $2.58 billion; Navy Reserve, $1.27 billion; Marine Corps Reserve, $219.42 million; Air Force Reserve, $3.08 billion; Army National Guard, $5.99 billion; and Air Force National Guard, $5.86 billion. The bill would also provide $28.2 billion for Defense-Wide operation and maintenance. 

Key readiness programs.The bill would provide full funding for key readiness programs that are critical to prepare forces for combat operations and other peace-time missions, including OPTEMPO flying hours and steaming days, depot maintenance, training, spare and repair parts, base operations, and facility maintenance. 

U.S. Court of Appeals. The legislation would appropriate $13.9 million to the U.S. Court of Appeals for the Armed forces, which is equal to the requested amount. 

Environmentalclean up.H.R. 3326 would provide environmental restoration funding as follows: $430.9 million for the Army ($15 million above the President’s request); $285.9 million for the Navy; 494.3 million for the Air Force; and $11.1 million for the Defense-wide account. Further, the bill would add $40 million to the President’s request for environmental clean up at Formerly Used Defense Sites (FUDS), for a total of $307.7 million. 

Cooperative Threat Reduction.The bill would provide $424 million for Cooperative Threat Reduction activities, which is $20 million above the President’s request. 

Defense Acquisition Workforce Development Fund. H.R. 3226would appropriate $100 million to DOD’s Acquisition Workforce Development Fund, which is equal to the requested amount.

Title III: Procurement

H.R. 3326 would provide $108 billion for procurement, which is $2.8 billion above the President’s budget request and $7 billion more than the Fiscal Year 2009 level.

Aircraft. The bill would: 

• Fully fund 22 EA-18G aircraft;
• Fully fund the F-35 Joint Strike Fighter request for both the Navy and Air Force;
• Defer six aircraft in the UH-1Y/AH-1Z program due to funds provided in the Fiscal Year 2009 supplemental bill and operational readiness concerns;
• Fully fund V-22 procurement;
• Fund procurement of six P-8A Poseidon aircraft;
• Adds funding to procure two HH-60 helicopters for the Air Force;
• Provide requested funding for procurement of UH-60 Black Hawk, CH-47 Chinook, and UH-72 Lakota helicopters;
• Fund the MH-60S and MH-60R helicopter programs;
• Fund procurement of two E-2D Hawkeye aircraft;
• Fund 28 Joint Primary Air Training System (JPATS) aircraft for the Navy;
• Add 10 C-17 Globemaster strategic airlift aircraft;
• Eliminate the HC-130/MC-130 aircraft already funded in the Fiscal Year 2009 supplemental bill;
• Fund the request for three C-130J aircraft;
• Defer funding for the C-130 Avionics Modernization Program; and
• Fund the request for C-37 and C-40 aircraft.

Weapons and missiles. The bill would fully fund the Standard Missile Program, the Tomahawk missile program, Minuteman III modifications, and requested Solid Rocket Motor Warm Line Program. It also would provide the requested quantity for Joint Direct Attack Munitions.

Shipbuilding. H.R. 3326 would: 

• Provide $170 million in advance procurement for LHA(R);
• Provide an additional $1.7 billion for a second DDG 51 destroyer;
• Fully fund the budget request for the DDG 1000 program;
• Provide the requested amount for DDG and CG Modernization;
• Include an additional $25 million to recapitalize the Navy’s training and weapons range support craft; and
• Eliminate funding for the terminated Advanced SEAL Delivery System.

Vehicles and force protection. The bill would fund procurement of Future Combat System Spin Out equipment, the Army’s Family of Heavy Tactical Vehicles Program, the High Mobility Multi-Purpose Wheeled Vehicle Program, modifications for the Stryker vehicle fleet, the Bradley Fighting Vehicle modification program, and the Abrams Tank modification and upgrade programs. It would reduce funding for the Army’s Family of Medium Tactical Vehicles due to program execution and also would reduce funding for Night Vision Devices due to production delays. 

National Guard and Reserve Equipment. H.R. 3326 would provide an additional $1.5 billion in funding for equipping National Guard and Reserve forces to address the significant shortfalls facing these forces as a result of overseas deployments. 

Readiness.The bill would increase funding for key training and weapons range readiness initiatives across the services.

Title IV: Research, Development, Test, and Evaluation

H.R. 3326 would provide $78.5 billion for research, development, testing, and evaluation (RDT&E), which is $183.9 million below the President’s budget request and $2.1 billion below than the Fiscal Year 2009 level. 

Aircraft.The bill would: 

• Provide an additional $50 million for the continued development of the RTIP sensor for large aircraft;
• Provide more than $560 million for F-22 modernization initiatives;
• Terminate the Combat Search and Rescue helicopter program and transfer the funding to HH-60 replacement helicopters;
• Provide $79.3 million for Battlefield Airborne Communications Node (BACN) payload for Global Hawk to improve communications in theater;
• Provide only the funds needed to restart a competition for the next generation presidential helicopter;
• Fully fund research and development of the P-8A Poseidon, Broad Area Maritime Surveillance (BAMS) UAV, and CH-53K; and
• Provide no funding for JSF alternate engine development. 

Shipbuilding. The bill would fully fund research for the next generation ballistic missile submarine. It would reduce funding for the delayed CG(X) program by $64 million. 

Missile defense. H.R. 3326 would provide $7.7 billion for the Missile Defense Agency (MDA), which is equal to the President’s budget request. The bill, however, would shift funding to provide additional funds for MDA’s near-term programs, specifically the Ground-based Missile Defense (GMD), Aegis Ballistic Missile Defense, and the TPY-2 radars that support the Theater High Altitude Area Defense (THAAD) batteries. It would reduce funding for farther-term missile defense research in order to ensure that the near term programs remain MDA’s highest priority.

Specifically, the bill would: 

• Provide an additional $50 million for GMD due to the MDA identified shortfall to maintain the Ground-Based Interceptor production line;
• Provide an additional $57.6 million for six additional Standard-Missile-3 Block 1A interceptors, which maintains the program at the Fiscal Year 2009 production level;
• Provide an additional $35 million for increased development of the future variants of the Standard Missile-3;
• Provide an additional $41 million for advance procurement of TPY-2 radar to support the THAAD batteries once they are fielded; and
• Provide $82.8 million for the Israeli cooperative programs, including Short Range Ballistic Missile Defense, Arrow-2, Arrow-3, and the Upper Tier program. 

Other provisions.The bill would fully fund the President’s request for the Expeditionary Fighting Vehicle as well as the request to start development of the Long Endurance Multi-Intelligence Vehicle (LEMV). Further, it would provide additional funding as follows: $75 million for alternative energy research, $50 million for next generation military communications satellite research and development; and $30 million for the Industrial Base Innovation Fund, as authorized. 

Title V: Revolving and Management Funds

H.R. 3326 would provide a total of $2.7 billion for revolving and management funds, which is $422 million below the President’s request. This includes $1.5 billion for Defense Working Capital Funds, which is equal to the President’s budget request and $1.2 billion to the National Defense Sealift Fund, which is $400 million below the requested amount. 

Title VI: Other Department of Defense Programs

H.R. 3326 would provide $31.2 billion for other DoD programs, which is $197 million below the President’s budget request but $3.8 billionmore than the Fiscal Year 2009 level. 

Defense Health Program. The bill would provide $28.3 billion for the Defense Health Program, which is $408 million above the requested amount and $2.49 billion above last year’s enacted amount. This includes: 

• Peer reviewed medical research program.H.R. 3326 would provide $50 million for a medical research fund.
   
• Military medical research. The bill would support the President’s budget requested increase of $372 million in military medical research, and urges DOD to focus on priority areas of research identified by the three Services.
   
• Cancer research.H.R. 3326 includes $240 million for cancer research, allocated as follows: $150 million for the Breast Cancer Research Program; $80 million for the Prostate Cancer Research Program; and $10 million for the Ovarian Cancer Research Program.
   
• Peer reviewed psychological health and traumatic brain injury research program.The bill would provide $60 million for this program.
   
• TRICARE shortfall.H.R. 3326 includes $307 million to address the TRICARE private sector shortfall in Fiscal Year 2010, as identified by DOD. 

Chemical agents and munitions destruction.The legislation would provide $1.5 billion, which is $20.9 million below the requested amount, for the destruction of U.S. chemical agents and munitions as required under the Chemical Weapons Convention. 

Drug interdiction and counter-drug activities.H.R. 3326 would provide $1.1 billion for drug interdiction and counter-drug activities, which is $44.1 million above the President’s budget request. 

Office of the Inspector General (IG).The bill would provide $288 million for the Department of Defense IG, which is $15.6 million above the requested amount, to accelerate the growth of the Office of the IG in order to keep pace with the growth in the size of the defense budget and the number of defense contracts.

Title VII: Related Agencies

Central Intelligence Agency Retirement and Disability Fund. The bill provides $290.9 million for this fund, which is equal to the request. 

Intelligence Community Management Account. H.R. 3326would allocate $750.8 million for this account, which is $78 million above the President’s budget request. 

Title IX: Overseas Contingency Operations

H.R. 3326would provide $128.2 billion in funding for appropriations related to overseas contingency operations in Fiscal Year 2010, which is $14.9 billion below Fiscal Year 2009 appropriations. The appropriations recommended in the legislation would fully fund current deployments in Iraq and Afghanistan and also fully fund the increase of 22,000 in the Army’s end strength. It also provides for $4 billion in Special Transfer Authority. 

As the Committee report notes, “The inclusion of these funds as regular appropriations will ensure that resources, equipment, and supplies are available to our service members without interruption, and will enable the Department to avoid absorbing incremental operational costs from within baseline programs that are critical to future readiness and home-station activities.” The bill includes several reporting requirements, to ensure timely and detailed accounting of obligations and expenditures of appropriations for operational costs for Operation Iraqi Freedom and Operation Enduring Freedom. 

Military personnel.The bill would provide $14.1 billion for pay, allowances, and other personnel costs for Active, Reserve, and Guard troops activated for duty in Iraq, Afghanistan, and other contingency operations. It also supports required pre- and post-mobilization training for Reserve and National Guard units. Funding is provided as follows: $9.6 billion for the Army, $1.17 billion for the Navy, $670.7 million for the Marine Corps, $1.4 billion for the Air Force, $293.6 million for the Army Reserve, $37 million for the Navy Reserve, $31.3 million for the Marine Corps Reserve, $19.8 million for the Air Force Reserve; $825 million for the Army National Guard, and $9.5 million for the Air Force National Guard. 

Operation and Maintenance. H.R. 3326would provide $86.9 billion for the operation and reserve accounts. The bill would fully fund key readiness programs critical to preparing forces for combat operations and other missions, including OPTEMPO flying hours and steaming days, depot maintenance, training, spare parts, and base operations. It also includes an additional $329 million for fuel to begin providing relief for the projected Fiscal Year 2010 fuel shortfall. Funding is allocated as follows: $51.9 billion for the Army, $5.9 billion for the Navy, $3.8 million for the Marine Corps; $9.9 million for the Air Force, and $7.55 billion for the defense-wide account, $234.9 million for the Army Reserve, $68 million for the Navy Reserve, $87 million for Marine Corps Reserve, $125.9 million for the Air Force Reserve, $289.9 million for the Air National Guard, and $450 million for the Army National Guard. 

• Commander’s Emergency Response Program. The bill would provide $1.2 billion for the program, including $1 billion for Afghanistan and $200 million for Iraq.
   
• Afghanistan Security Forces Fund. The bill includes $6.6 billion to continue efforts to train, equip, and sustain the Afghanistan Security Forces and assist the government in assuming greater authority for its nation’s security. This amount $900 million below the President’s budget request, due to the Committee’s determination that such funds would not be needed for this program until Fiscal Year 2011. Therefore, the bill includes language which recommends redirecting $900 million of the requested amount for this Fund to the Mine Resistant Ambush Protected Vehicle Fund in order to meet a JROC validated requirement for increased MRAP-All Terrain Vehicles in Afghanistan.
   

Procurement. H.R. 3326would provide $22.2 billion for procurement accounts, for costs associated with U.S. contingency operations in Iraq and Afghanistan. Funding is provided to replace combat losses and equipment left behind in theater, sustain munitions and other procurement needs, and reset units returning home to an equipment-ready status.
 

Aircraft.The bill would: 

• Add funds for an additional nine F/A-18E/F Super Hornet aircraft;
• Fund the request for two AH-1Z helicopters;
• Fund two projected battle losses of UH-60 Black Hawk, CH-47 Chinook, and AH-64 Apache helicopters;
• Fund the request for Directed Infrared Countermeasures for Navy aircraft;
• Fund one C-130J to replace a combat loss;
• Fully fund the request for Army C-12 EMARSS reconnaissance aircraft;
• Provide requested funding for six battle loss replacement OH-58 Kiowa Warrior helicopters;
• Delete funding for 12 MQ-1C Sky Warrior UAVs due to lack of production capacity; and
• Fund modifications for the MQ-1 Predator and MQ-9 Reaper unmanned aerial vehicles.
   

Weapons/Missiles. H.R. 3326would provide a total of $1.9 billion for the purchase of ammunition and missiles to replenish war expenditures and reserve stockpiles. 

Vehicles/Force Protection.The bill would: 

• Fund Common Remotely Operated Weapons Stations for Army vehicles;
• Reduce the Bradley Fighting Vehicle modification program, reflecting funds provided in the Fiscal Year 2009 supplemental bill;
• Fund the Army’s Heavy and Medium Tactical Vehicle Programs;
• Fund the High Mobility Multi-Purpose Wheeled Vehicle Program;
• Fund the Counter-Rocket, Artillery, and Mortar Systems; and
• Defer additional funding for the Army’s modification of In-Service Equipment due to availability of prior year funds.
   

Mine Resistant Ambush Protected (MRAP) Vehicle Fund.The bill also includes $6.6 billion for the Fund, which is $1.2 billion above the President’s budget request to fund the sustainment and upgrades of MRAPs and for the procurement of MRAP-ATVs. The additional funding is provided to address urgent unfunded need for the procurement of additional M-ATVs for our troops fighting in Afghanistan. 

Other Procurement. H.R. 3226 would also provide funds for 20 Army Force Provider deployable facility modules to replace equipment lost or degraded in theater. 

Research, Development, Test, and Evaluation. H.R. 3326would provide $293.6 million for research, development, test and evaluation in support of overseas contingency operations. 

Revolving and Management Funds.The bill would provide $412 million for the Defense Working Capital Funds, which is $15.3 million above the President’s request. The additional funding is included for the Transportation Working Capital Fund for the transportation of fallen heroes. 

Defense Health Program. H.R. 3326would provide $1.6 billion for the Defense Health Program, which is $307 million above the requested amount. 

Drug Interdiction and Counter-Drug Activities.The legislation includes $353.6 million, which is $29 million above the President’s request, to support efforts set forth by the Department of Defense for drug interdiction and counter-drug activities in Afghanistan, Pakistan, and Central Asia. 

Joint Improvised Explosive Device Defeat Organization (JIEDDO). H.R. 3326would provide $2 billion for the Fund, which is $499 million above the requested amount, to ensure JIEDDO has the resources necessary to continue its mission in protecting our troops from improvised explosive devices (IEDs) and combating the terrorist networks responsible for them. The bill would transfer $66 million to Service overseas contingency operations accounts for proper execution. 

Office of the Inspector General. The bill includes $8.9 million for the IG’s office, which is equal to the President’s request. 

General Provisions.The bill includes language which prohibits the transfer, release or incarceration of any individual who was detained as of October 1, 2009 at Naval Station, Guantanamo Bay, Cuba, to or within the United States or its territories, which is consistent with language previously adopted by the Senate. 

Legislative History

On September 10, 2009, the Senate Appropriations Committee ordered H.R. 3326, the Department of Defense Appropriations Act, 2010, with an amendment in the nature of a substitute to be reported favorably to the full Senate, by a vote of 30-0. 

On July 30, 2009, the House of Representatives passed H.R. 3326, the Department of Defense Appropriations Act, 2010, by a vote of 400-30. 

Previous Votes

On September 27, 2008, the Senate passed H.R. 2638, Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, which included Fiscal Year 2009 funding for Department of Defense programs (Division C), by a vote of 78-12. The bill was signed into law (P.L. 110-329) on September 30, 2008. 

On October 3, 2007, the Senate passed H.R. 3222, the Department of Defense Appropriations Act, 2008, by voice vote. The Senate adopted the conference report on November 8, 2007 by a voice vote and the bill was signed into law (P.L. 110-116) on November 13. 

Statement of Administration Policy

On September 25, 2009, the Obama Administration issued a Statement of Administration Policy (SAP) for the Senate version of H.R. 3326, which identified several provisions of concern in the bill. This SAP can be accessed on the Office of Management and Budget’s website (http://www.whitehouse.gov/omb/assets/sap_111/saphr3326s_20090925.pdf).  

Possible Amendments

The DPC will distribute information on possible amendments as it becomes available.