Highlights of the FY 2004 Defense Appropriations Conference Agreement
Prepared by:
Christopher Hellman
Director, Project on Military Spending Oversight
Center for Arms Control and Non-Proliferation 322 4th Street, N.E.
Washington, D.C. 20002
W: (202) 546-0795
H: (703) 379-0859
The conference agreement includes a total of $368.2 billion in new discretionary spending authority for the Department of Defense for fiscal year 2004. This amount is $3.8 billion more than was appropriated for fiscal year 2003 (excluding the amounts provided in the Iraq supplemental in April 2003), and is $3.5 billion below the President’s fiscal year 2004 budget request.
This reduction is the result of an agreement reached earlier this year by appropriators to find an extra $6 billion to fund non-defense discretionary programs. These cuts were made with the expectation that the funds will be recouped as part of a future supplemental spending package in fiscal year 2004. The remaining $3 billion for new non-defense spending is funded by reductions in already-appropriated Iraq supplemental funds that are not currently required due to lower than expected war costs in fiscal year 2003.
TOTAL SPENDING: $368.2 billion ($3.8 billion above FY’03) House: $368.7 billion Senate: $368.6 billion Request: $372.3 billion NOTE: These figures do not reflect the $87 billion war supplemental requested by the Bush Administration for FY 2004.
TOTAL SPENDING BY TITLE
PERSONNEL Conference: $98.5 billion ($4.9 billion above FY’03) House: $98.3 billion Senate: $98.8 billion Request: $98.9 billion
OPERATIONS & MAINTENANCE Conference: $115.9 billion ($1.2 billion above FY’03) House: $115.3 billion Senate: $115.6 billion Request: $117.0 billion
PROCUREMENT Conference: $74.7 billion ($3.1 billion above FY’03) House: $74.7 billion Senate: $74.0 billion Request: $72.7 billion
RESEARCH & DEVELOPMENT Conference: $65.2 billion ($7.0 billion above FY’03) House: $64.6 billion Senate: $63.6 billion Request: $61.8 billion
MAJOR CONFERENCE RECOMMENDATIONS:
BALLISTIC MISSILE DEFENSE:
Conference: $9.1 billion House: $8.9 billion Senate: $9.1 billion Request: $9.1 billion
MAJOR WEAPONS SYSTEMS
TACTICAL AIRCRAFT
F/A-22 “Raptor” Fighter (acquisition only) Conference: $3.6 billion for 22 aircraft House: $3.6 billion for 22 aircraft Senate: $4.1 billion for 22 aircraft Request: $4.2 billion for 22 aircraft
Joint Strike Fighter Conference: $4.3 billion House: $4.2 billion Senate: $4.4 billion Request: $4.4 billion
F/A-18E/F “Super Hornet” Navy Fighter Conference: $2.9 billion for 42 aircraft House: $2.9 billion for 42 aircraft Senate: $3.0 billion for 42 aircraft Request: $3.0 billion for 42 aircraft
ARMY
UH-60 “Blackhawk” Helicopters (acquisition) Conference: $ 228 million for 19 aircraft House: $ 252 million for 19 aircraft Senate: $215.7 million for 17 aircraft Request: $167.0 million for 10 aircraft
“Stryker” Armored Combat Vehicle Conference: $990.0 million for 301 vehicles House: $990.0 million for 301 vehicles Senate: $990.0 million for 301 vehicles Request: $955.0 million for 301 vehicles
Comanche Helicopter Conference: $1.1 billion House: $1.1 billion Senate: $1.1 billion Request: $1.1 billion
NAVY/MARINES
V-22 “Osprey” Tiltrotor Aircraft Conference: $1.5 billion for 11 aircraft (9 Marine Corps, 2 Air Force) House: $1.5 billion for 11 aircraft (9 Marine Corps, 2 Air Force) Senate: $1.5 billion for 11 aircraft (9 Marine Corps, 2 Air Force) Request: $1.5 billion for 11 aircraft (9 Marine Corps, 2 Air Force)
“Tomahawk” Cruise Missile Conference: $355 million for 350 missiles House: $485 million for 450 missiles Senate: $272.3 million for 325 missiles Request: $277.6 million for 267 missiles
“Virginia” Attack Submarine Conference: $2.6 billion for 1 submarine House: $2.6 billion for 1 submarine Senate: $ 2.3 billion for 1 submarine Request: $2.6 billion for 1 submarine The Conferees agreed to a five-year “multi-year” contract for the construction of 5 submarines. The Administration had requested a five-year contract for 7 submarines.
DDG-51 “Arleigh Burke” Destroyer Conference: $3.2 billion for 3 ships House: $3.2 billion for 3 ships Senate: $3.2 billion for 3 ships Request: $3.2 billion for 3 ships
LPD-17 Amphibious Transport Ship Conference: $1.3 billion for 1 ship House: $1.4 billion for 1 ship Senate: $1.2 billion for 1 ship Request: $1.2 billion for 1 ship
Aircraft Carrier Replacement Program (Advanced Procurement) Conference: $1.5 billion House: $1.5 billion Senate: : $1.2 billion Request: $1.5 billion
AIR FORCE
C-17 Transport Aircraft Conference: $2.1 billion for 11 aircraft House: $2.1 billion for 11 aircraft Senate: $3.4 billion for 11 aircraft Request: $3.4 billion for 11 aircraft
PERSONNEL ISSUES
The Conference agreement fully funds an average 4.1 percent military personnel pay raise (as requested).
The agreement approves housing allowances for the buy down of service personnel’s out of pocket housing expenses from 7.5 percent in fiscal year 2003 to 3.5 percent in fiscal year 2004.
The agreement provides $128 million for the continuation of increased rates for Imminent Danger Pay and Family Separation Allowances.
Defense Health Program: $15.7 billion (an increase of $886 million over the fiscal year 2003 enacted level)
SOURCES: House and Senate Appropriations committees, reports to accompany H.R. 2658 and S. 1382.