(2010) CRS - FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs

CRS Report for Congress Prepared for Members and Committees of Congress FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs (name redacted), Coordinator Specialist in U.S. Defense Policy and Budget (name redacted) Specialist in National Defense (name redacted)<> Analyst in Emergency Management Policy (name redacted) Specialist in International Humanitarian Policy (name redacted)<><><> Analyst in Foreign Affairs (name redacted)<><> Specialist in Latin American Affairs (name redacted) Specialist in Foreign Affairs August 6, 2010 Congressional Research Service 7-.... www.crs.gov R41232 FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service Summary The Administration requested $64.3 billion in FY2010 supplemental appropriations: • $5.1 billion to replenish the U.S. Disaster Relief Fund administered by the Federal Emergency Management Agency (FEMA); • $33 billion for the Department of Defense (DOD) primarily for deploying 30,000 additional troops to Afghanistan; $4.5 billion in war-related foreign aid; and $2.8 billion for Haiti earthquake-related relief and reconstruction aid; • $243 million for activities related to the Deepwater Horizon oil spill; • $600 million for border security, and $129 million to reduce backlogs in patent requests; and • $13.4 billion to compensate veterans exposed to Agent Orange, and $3.4 billion to settle court cases about trust claims of American Indians (Cobell) and $1.2 billion for discrimination claims of black farmers (Pigford II). Much of the debate about this year’s supplemental focused on the effect on the deficit of additional spending and, particularly, whether certain spending should be designated as emergency spending that Congress is not required to offset under congressional rules. Offsets can come from either rescissions, which cancel prior year budget authority (BA), and then apply that BA to new spending, thus reducing the amount of new budget authority required, or from savings in direct spending or mandatory programs. On March 24, 2010, the House passed H.R. 4899, the Disaster Relief and Summer Jobs Act, by a vote of 239 to 175, with $5.7 billion in funding, including $5.1 billion to replenish FEMA’s Disaster Assistance Fund and $600 million for a Labor Department summer jobs program. Taking the bill’s $600 million in offsetting rescissions into account, the bill required $5.1 billion in new budget authority (BA). A House Appropriations Committee (HAC) markup of an $84.8 billion draft bill with additional domestic spending scheduled for May 26, 2010, was cancelled. On May 27, the Senate passed its version of H.R. 4899 by a vote of 67-28, with $59.2 billion in funding for disaster assistance, war funding, Haiti relief, and new VA benefits, but without funding for the two court cases. Including its $380 million in rescissions, the Senate version required $58.8 billion in new budget authority. On July 1, 2010, the House passed an amended version of H.R. 4899 totaling $81.8 billion for disaster assistance, wars, Haiti relief, and new VA benefits, and additional domestic spending to prevent teacher layoffs, provide agricultural and energy loans, and Pell Grants, in discretionary spending and funding to settle the two court cases. With its $12.2 billion in rescissions and $4.5 billion in 10-year mandatory savings from lower government drug prices, this bill would have required $65.1 billion in new BA. On July 22, 2010, the Senate sent a message to the House disagreeing with the earlier version passed by the House on July 1, 2010. On July 27 th , the House passed the Senate’s May 27 version, which was signed by the President on July 29, 2010, and became P.L. 111-212. Part of the debate and timing of congressional action was driven by funding deadlines cited by the Department of Defense, FEMA, and the Coast Guard, some which proved to be somewhat flexible. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service Contents Most Recent Developments.........................................................................................................1 Highlights of Congressional Action.............................................................................................2 House July 27, 2010, Debate on H.R. 4899...........................................................................2 Funding and War Issues ..................................................................................................2 Debate on H.Con.Res. 301 Requiring the Withdrawal of U.S. Troops from Pakistan .......................................................................................................................3 Senate Action on July 22, 2010.......................................................................................3 Final Version of H.R. 4899 and the Administration Request.........................................................3 War-Related Funding in the FY2010 Supplemental...............................................................4 Summary of Congressional Action on H.R. 4899...................................................................9 Overview, Deadlines, and Potential Issues...................................................................................9 Budget Rules and Supplemental Requests........................................................................... 11 Potential Deadlines .............................................................................................................12 Concerns that Funds for Coast Guard Oil Spill Response Activities Could Run Out in Mid-June.........................................................................................................12 Concerns that Defense Department Deadline Could Be Mid-August..............................13 FEMA Limited Disaster Assistance to Extend Deadline.................................................14 Concerns about State Department Disaster Funding Running Low.................................15 Deadline for Funding Court Settlements Uncertain........................................................15 Issues: Emergency Designations, Timelines, and Effectiveness............................................15 Federal Emergency Management Agency Request.....................................................................16 FY2010 Supplemental Issues..............................................................................................16 Regular vs. Emergency Budgeting for Disasters ............................................................16 Justifying the Current Estimate......................................................................................18 Congressional Action on U.S. Disaster Assistance Request..................................................18 Other Disaster Assistance..............................................................................................18 War-Related Supplemental Requests.........................................................................................19 Department of Defense War Funding Request .....................................................................19 Increases in U.S., NATO Troops, and Afghan Security Forces .......................................19 DOD Request Shifts Bulk of War Funding to Afghanistan.............................................21 Timeline for U.S. Military’s Role in Afghanistan...........................................................22 Most of DOD’s Request Is for Afghanistan....................................................................23 Questions Could Be Raised About Per Troop Costs .......................................................24 Funds to Accelerate Training Afghan Security Forces....................................................26 Whether Some of DOD’s Request Could Have Been Funded in Regular FY2011 Bill ............................................................................................................................30 Final Congressional Action on the Defense Request ......................................................31 More Spending for Bases in Afghanistan Raises Questions of Permanency and Execution.........................................................................................................................33 Building to Fight vs. Building to Stay: Congressional Restrictions.................................37 “Permanent Stationing” and “Long-term Presence” .......................................................37 Higher Funding and DOD’s Proposed Legislative Change.............................................38 Execution Issues ...........................................................................................................39 Final Congressional Action on the Defense Basing Request...........................................40 War-Related Foreign Aid and Diplomatic Operations ..........................................................40 FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service Congressional Action on War-Related Foreign Aid..............................................................41 Afghanistan ..................................................................................................................43 Congressional Action on the Afghanistan Request .........................................................45 Iraq...............................................................................................................................46 Congressional Action on the Iraq Request .....................................................................48 Pakistan ........................................................................................................................48 Congressional Action on the Pakistan Request...............................................................49 Haiti FY2010 Supplemental Proposal........................................................................................50 Congressional Action on Haiti FY2010 Supplemental Proposal...........................................52 Humanitarian Relief Funding..............................................................................................52 Relief Funding: International Disaster Assistance and Emergency Food Aid..................52 Key Concerns and Priorities..........................................................................................55 Department of Defense and U.S. Coast Guard Relief Activities .....................................56 State Department’s Contributions to International Peacekeeping Activities (CIPA) ........57 Assistance to Haitian Evacuees and Migrants ................................................................58 Final Congressional Action on Haiti Relief Funding......................................................61 Recovery and Reconstruction Funding for Haiti..................................................................61 Key Concerns: Priorities, Decentralization, Poverty Reduction, and Capacity Building ......................................................................................................62 Economic Support Funds for Infrastructure and Other Development Activities..............64 International Narcotics Control and Law Enforcement Funds for Security .....................64 USAID and Treasury Funds for Oversight and Advisors................................................65 U.S. Funds for International Donor Trust Fund and Debt Relief.....................................65 Final Congressional Action on Haiti Recovery and Reconstruction Funding..................66 Funding for Diplomatic Operations in Haiti.........................................................................67 Congressional Action on Diplomatic Operations Funding in Haiti FY2010....................68 Other Foreign Economic and Humanitarian Assistance..............................................................68 Other Domestic Program Funding.............................................................................................69 Congressional Action ..........................................................................................................70 Funds to Prevent Layoffs of Teachers, Law Enforcement Officers and Firefighters..............70 Final Congressional Action in the Supplemental on Funds for Teachers.........................70 Final Congressional Action on Funds for Law Enforcement Officers.............................71 Final Congressional Action on Funds for Firefighters ....................................................72 Agriculture and Energy Loans and Pell Grants ....................................................................72 Final Congressional Action in Supplemental on Rural Housing and Agricultural Loans, and Food Programs ........................................................................................73 Final Congressional Action in Supplemental on Department of Energy Loan Guarantee Program ....................................................................................................73 Final Congressional Action in Supplemental on Pell Grants 181 .......................................74 Border Security Request......................................................................................................75 Administration Request for Border Security Funds........................................................75 Final Congressional Action in Supplemental on Border Security...................................75 Deepwater Horizon Oil Spill Provisions ....................................................................................76 Final Congressional Action on Oil Spill Programs...............................................................77 Mandatory Spending for Veterans’ Benefits, Settling Court Cases, and Oil Spill Response Activities ...............................................................................................................................77 Additional Benefits for Veterans Exposed to Agent Orange .................................................78 Potential Change in the Estimate...................................................................................79 FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service Final Congressional Action on New Veterans’ Benefits..................................................79 Resolving Black Farmers and American Indian Trust Lands Court Cases.............................79 Settlement of the Black Farmers Discrimination Case ...................................................80 Indian Trust Litigation Settlement .................................................................................80 Final Congressional Action in Supplemental on Court Cases.........................................81 Reducing Medical Costs by Increasing Medicaid Drug Rebates and Improving Generic Drug Access........................................................................................................81 Final Congressional Action in Supplemental on Proposed Changes in Drug Purchasing .................................................................................................................82 Improving Access to Generic Drugs by Preventing Pay-for-Delay Agreements..............82 Targeting Waste, Fraud, and Abuse in Selected Programs ..............................................83 Additional Funds for Coast Guard Response Activities and New Unemployment Benefit.............................................................................................................................84 Oil Spill Liability Trust Fund: Advance of Funds for Federal Response Efforts..............85 Final Congressional Action on Oil Spill Trust Fund and Unemployment Benefit............85 House Passed H.R. 4899 on March 24, 2010.......................................................................87 Procedures and Debate..................................................................................................90 Figures Figure 1. U.S. Disaster Relief Funding, FY2000-FY2011 Request.............................................17 Figure 2. Boots on the Ground in Afghanistan and Iraq, 2001-2010...........................................20 Tables Table 1. Overview of H.R. 4899: FY2010 Supplemental.............................................................5 Table 2. DOD War Funding, FY2001-FY2011 Request.............................................................22 Table 3. DOD Functional Categories for War Funding: Afghanistan, FY2009-FY2011..............25 Table 4. Funding for Afghan Security Forces (ASFF), FY2009-FY2011....................................28 Table 5. Department of Defense Bridge & Supplemental Funding, FY2009-FY2011.................32 Table 6. Military Construction for the Afghan War, FY2003-FY2011........................................34 Table 7. War-Related Foreign Aid and Diplomatic Operations: FY2010 Supplemental...............41 Table 8. Haiti Supplemental: Relief, Reconstruction and Diplomatic Operations, FY2009-FY2011....................................................................................................................51 Table 9. Haiti Relief Funding, FY2009-FY2011........................................................................53 Table 10. Haiti Recovery and Reconstruction Funding, FY2009-FY2011..................................62 Table 11. Diplomatic Operations Funding for Haiti, FY2009-FY2011........................................68 Table 12. Foreign Economic and Humanitarian Assistance in FY2010 Supplemental.................69 Appendixes Appendix. Congressional Action on H.R. 4899..........................................................................87 FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service Contacts Author Contact Information ......................................................................................................93 Acknowledgments....................................................................................................................93 FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 1 Most Recent Developments On July 29, 2010, the President signed the final version of H.R. 4899, P.L. 111-212, which was passed by the House on July 27 and by the Senate on May 27, 2010. The enacted version of the bill includes $59.2 billion in spending for war costs, U.S. disaster assistance, Haiti relief and reconstruction, and new benefits for Vietnam veterans. The House passed this bill under suspension of the rules by a vote of 308 to 114 after receding from (or withdrawing its support of) an amended version passed by the House on July 1, 2010, with $81.8 billion in spending. 1 With both houses adopting the same version of the bill, H.R. 4899 was cleared and sent to the President. Taking into account $380 million in rescissions of previously appropriated budget authority (BA), P.L. 111-212 provides $58.8 billion in new BA, compared to the $65.1 billion in new BA provided in the previous July 1 House version including its rescissions. Although the earlier House version included $22.1 billion more in domestic spending, that was offset by $12.2 billion in offsetting rescissions, and $4.5 billion in mandatory savings over 10 years (see Table 1). 2 Rescissions and mandatory savings both offset or reduce the amount of new Budget Authority (BA) required to finance spending. Rescissions cancel previously unobligated appropriated budget authority (BA), and that BA can then be used to finance new spending. Savings in mandatory programs reduce the amount needed for new direct spending. As part of the consideration of H.R. 4899, the House also debated House Concurrent Resolution 301, proposed by Representative Kucinich and Representative Paul, that would require the President to withdraw all U.S. troops from Pakistan within 30 days of adoption, or no later than December 31, 2010, if the President determines the earlier date would not be safe. The resolution was defeated by a vote of 38 to 372. 3 Earlier, the House, passed H.Res. 1566, the rule which set up an hour of debate on H.Con.Res. 301 under the War Powers Act, by a vote of 222 to 196. 4 The Senate sent the House its message of disagreement with the July 1 House amended version of the bill on July 22, 2010, after failing by 46 to 51, to adopt a cloture vote on the House July 1 version of H.R. 4899, signaling an inability to limit debate, and prevent a filibuster. 5 In light of the Senate’s opposition to the House version of the bill which would have added $22.5 billion to the Senate version to prevent teacher layoffs, for Pell grants, for agricultural and energy loans, border security, and to settle the Cobell and Pigford II court cases, the House dropped its support of this version and adopted the May 27, 2010, Senate version. The House also adopted the Senate version because of concerns raised by Defense Department officials that the Army would run out of funding in August unless additional funds were transferred from other DOD accounts. 6 The enacted version of H.R. 4899 adopts the $59.2 billion in the Senate’s version for war funding, Haiti relief and reconstruction, other foreign aid, and new benefits for Vietnam veterans that were 1 Congressional Record, July 22, 2010, p. S6188-p. S6190. 2 See version of H.R. 4899 as passed by the House on July 1, 2010. 3 Congressional Record, July 27, 2010, p. H6112, p.H6124. 4 Congressional Record, July 27, 20102, p. H6106 and p. H6112. 5 Congressional Record, July 22, 2010,p. S6190. 6 See testimony by Undersecretary Joseph W. Westphal before the House Armed Services Committee, Transcript, “Managing the Defense Department in a Time of Tight Budget,” p. 16, July 22, 2010. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 2 included in its May 27, 2010, version that passed by a vote of 67 to 28. That version includes $59.2 billion for wars, Haiti relief, FEMA and other disaster relief, and new VA benefits, but excludes funds to settle the Pigford II and Cobell court cases requested by the Administration (see Table 1 and Appendix). Highlights of Congressional Action The House and Senate debate on H.R. 4899 revolved around two main themes – whether additional domestic spending proposals were appropriately considered to be emergencies that would not require offsets, and whether the Administration’s new war policy in Afghanistan was likely to succeed. (See Appendix for previous congressional action.) House July 27, 2010, Debate on H.R. 4899 Funding and War Issues In introducing the Senate version of H.R. 4899 for House consideration on July 27, 2010, Representative David Obey, Chair of the House Appropriations Committee (HAC), said that the House had added funds to the FEMA disaster funding in the original March 24, 2010, version of the FY2010 Supplemental, first to include war funding, and then to “do something about other emergencies this year, such as the loss of more than 100,l000 teachers’ jobs because of devastating State and local budget cuts,” Pell fund shortfalls because more students qualified for aid, and border security, which were “largely paid for with offsets to other programs,” but these domestic proposals “fell by the wayside.” 7 In stating his opposition to the bill, Representative Obey said that he could not support the war funding in the bill because the governments of Afghanistan and Pakistan were not able to “do their parts” to support the war, and because Congress had not adopted a proposed House amendment that would have required Congress to “vote up or down explicitly on whether or not to continue this policy” after submission of a new National Intelligence Estimate (NIE), but which was not adopted. 8 Nevertheless, Representative Obey believed that the process needed to go forward. Representative Lewis, Ranking Minority of the HAC complimented the Senate for “rejecting billions of dollars of nonemergency spending placed on the backs of our troops,” that urged enactment of the bill to “support our men and women in uniform, [and] support disaster assistance for areas of the country in great need.” 9 Other members voiced support for particular parts of the bill, including DOD’s war funding and the additional disability benefits for Vietnam veterans who incur diseases linked to exposure to Agent Orange. Representative Ike Skelton, Chair of the House Armed Services Committee, supported the bill while Representative Jim McGovern raised concerns about “corruption and 7 Congressional Record, p. H6062 , July 27, 2010. 8 Congressional Record, p. H6062 , July 27, 2010; H.Rept. 111-522, pp. 59-p.62, and See Congressional Record, p. D766, July 1, 2010, for consideration of Amendment No. 5. 9 Congressional Record, July 27, 2010, p.H6062. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 3 incompetence in the Afghan Government ... [and] the role of the Pakistani intelligence services,” highlighted in the documents recently released by Wikileaks. 10 Representative Norm Dicks, Chair of the HAC-Defense Subcommittee, and Representative Chris Van Hollen cited concerns raised by Secretary of Defense Robert Gates that funding for the war would run out in August, with the House due to go on recess. 11 Debate on H.Con.Res. 301 Requiring the Withdrawal of U.S. Troops from Pakistan As part of the consideration of H.R. 4899, the House voted on H.Res. 1556, which set up an hour’s debate on H.Con.Res. 301, the Kucinich-Paul resolution invoking the War Powers Act and requiring the President to withdraw all U.S. troops from Pakistan within 30 days of passage or no later than December 31, 2010, if the President determined it not to be safe, or earlier if the President determined it to be safe. After a debate about the applicability of the War Powers Act, the implications of expanding the “footprint of our troops” in Pakistan with some 230 U.S. military personnel, and the effectiveness of some $18.1 billion in U.S. aid since FY2002 in light of Pakistan public opinion polls citing hostility to the United States, the resolution was defeated by 38 to 372. 12 Senate Action on July 22, 2010 On July 22, 2010, the Senate failed to adopt cloture and limit debate on the House July 1 version of H.R. 4899 by a vote of 46 to 51, suggesting that the Senate would be unable to pass the House version of the bill. Under the rule adopted, the Senate then sent the House July 1 amended version back to the House with a message stating their disagreement. 13 Final Version of H.R. 4899 and the Administration Request The final version of H.R. 4899 appropriates $59.2 billion in spending, $5.0 billion below the request. The total funding in the final version matches or is close to the Administration’s request for the following: • $5.1 billion for FEMA’s Disaster Assistance Fund; • $13.4 billion for Vietnam veterans affected by Agent Orange; and • $30.8 billion for the Department of Defense (DOD) war-related funding ($148 million below the request) and $2.1 billion for DOD’s non-war request; and 10 Congressional Record, July 27, 2010, p. H6064. 11 Ibid., p. H6065 and p. H6067. 12 Congressional Record, July 27, 2010, pp. H6114-p. 6124. 13 Congressional Record, “Daily Digest,” p. D833. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 4 • $2.9 billion approved ($129 million above the request) for Haiti with small adjustments in individual accounts (see Table 1). The chief differences in funding between the enacted version and the Administration’s request were: • $3.8 billion in funding for war-related foreign aid vs. $4.5 billion requested, a decrease of $710 million; • Zero vs. the $4.6 billion requested to settle the Cobell and Pigford II court cases; • Zero vs. $600 million requested for border security; • Zero vs. $139 million requested to reduce backlogs in the U.S. Trademark and Patent Office; • $600 million added by Congress in other foreign aid and humanitarian assistance for Mexico, Jordan, El Salvador, Vietnam, and Congo that was not requested; and • $400 million added by Congress for flood and drought relief. In the final version, Congress did not include additional domestic funding to prevent teacher layoffs, provide more Pell grants, fund summer jobs, or provide agricultural and energy grants funding that was not requested by the Administration, but which was included in an earlier version of the bill that the House passed on July 1, 2010, and then receded from (withdrew its support) on July 27, 2010. On July 27, the House adopted the Senate version of the bill that was passed on May 27, 2010 (see Table 1). The final version of H.R. 4899 also did not include $600 million for border security, and $129 million to reduce patent backlogs in the Commerce Department that was requested by the Administration after passage of the Senate bill that was ultimately adopted. On July 28, 2010, the House passed separate bills with this funding (H.R. 5874 and H.R. 5875) by voice vote, and those bills went to the Senate. 14 War-Related Funding in the FY2010 Supplemental The FY2010 Supplemental, P.L. 111-212 includes a total of $34.2 billion for the Defense Department and the State Department for the Afghan and Iraq wars. Of this amount, • $31.5 billion is for the Afghan war, including $29.8 billion for DOD and $1.7 billion for State/USAID programs; and • $2.7 billion for the Iraq war including $1.0 billion for DOD and $1.7 billion for State/USAID programs (see Table 5 and Table 7). 15 Taking into account funding already provided in DOD and the State Department’s regular FY2010 appropriations bills, as well as funding for war-related VA medical costs, total FY2010 14 Congressional Record, “Daily Digest,” p. D865, July 28, 2010. 15 These figures exclude $2.0 billion of non-war funding that is within the total for Operation and Maintenance in Table 5. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 5 for the Afghan and Iraq war as of the enactment of the FY2010 supplemental, P.L. 111-212 is $$169.9 billion. This amount includes: • $104.4 billion is for the Afghan war, including $99.3 billion for DOD, $4.7 billion for State/USAID programs, and $471 million for VA/Medical; and • $65.5 billion for the Iraq war including $61.1 billion for DOD and $2.9 billion for State/USAID programs, and $1.5 billion for VA/Medical. 16 These figures do not include some $2.0 billion in non-war funding provided to DOD and $375 million in funding in P.L. 111-212 for foreign aid for Pakistan. Table 1. Overview of H.R. 4899: FY2010 Supplemental in billions of dollars Agency/Purpose FY2010 Enacted FY2010 Supp Request House version of H.R. 4899 as passed 3-24-10 House- amended version of H.R. 4899 as passed 7-1-10 and receded from 7-27-10 a P.L. 111-212, enacted version of H.R. 4899 as passed by the Senate 5-27-10 and by the House 7-27-10 Brief Description Federal Emergency Management Agency: Disaster Relief Fund 1.6 5.1 5.1 5.1 5.1 Replenishes the Disaster Relief Fund. Other U.S. Disaster relief 10.9 0 0 .4 .4 Provides flood and drought relief including Community Development Block grants. Defense: Afghan and Iraq wars 129.6 31.0 0 30. 8 30.8 Includes $30 billion for Afghanistan and $1 billion for Iraq. Defense: Non-War- Related NA 2.1 0 2.5 2.1 Funds baseline fuel increases, Air Force family housing utility cost increases and, Guam improvements. State/USAID: Afghanistan, Iraq, and Pakistan war-related aid 5.6 4.5 0 3.8 3.8 Includes $1.7 billion for Afghanistan, $1.7 billion for Iraq and $375 million for Pakistan for foreign aid and diplomatic operations. State/USAID/DOD: Haiti humanitarian aid and reconstruction .6 2.8 0 2.9 2.9 Includes 1.6 billion for disaster relief, $1.1 billion for foreign aid activities and $147 million for diplomatic operations. 16 See Tables 1, 2, 3, and 4 in CRS Report RL33110, The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9/11, by (name redacted). FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 6 Agency/Purpose FY2010 Enacted FY2010 Supp Request House version of H.R. 4899 as passed 3-24-10 House- amended version of H.R. 4899 as passed 7-1-10 and receded from 7-27-10 a P.L. 111-212, enacted version of H.R. 4899 as passed by the Senate 5-27-10 and by the House 7-27-10 Brief Description State/USAID: Other foreign aid and humanitarian assistance NA 0 0 .6 .6 Provides $592 million for foreign aid to Mexico, Jordan, El Salvador, Vietnam and the Congo, and humanitarian assistance. Education Department: Education Job Funds 0 0 0 10.0 0 Would have prevented layoffs of 100,000 teachers and other educational staff. Education Dept.: Pell Grants 17.5 0 0 5.0 0 Would have provided additional post-secondary school Pell Grants. Labor Department: Training and Employment Services 0 0 0.6 1.0 0 Would have funded Labor Dept.’s summer Jobs program. Dept. of Homeland Security and Dept. of Justice: Border Security NA .6 0 .7 0 b Would have provided primarily additional border security enforcement personnel. Various: Program Integrity Initiatives NA 0 0 .5 0 Would have targeted Medicare and Medicaid waste, fraud, and abuse. Agriculture Dept.: Agricultural and farm loans and food aid .6 0 0 .1 c Would have funded rural housing, farm loans, and emergency food aid. Various: Oil Spill Recovery Activities 0 .1 0 .2 .1 Provides funds for inspections, studies and compensation for fishermen. Dept. of Energy: Innovative Technology Energy Loan Guarantee Program d 0 0 .2 0 Would have supported nuclear and alternative energy loans. Health and Human Services and Dept. of Labor: Mine Safety NA 0 0 e e Funds additional inspections and mine safety research. Commerce Dept.: Patent Office NA .1 0 0 0 f Would have provided funds to decrease backlogs offset by additional fees. Other Programs h NA i i i i Funds various other programs. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 7 Agency/Purpose FY2010 Enacted FY2010 Supp Request House version of H.R. 4899 as passed 3-24-10 House- amended version of H.R. 4899 as passed 7-1-10 and receded from 7-27-10 a P.L. 111-212, enacted version of H.R. 4899 as passed by the Senate 5-27-10 and by the House 7-27-10 Brief Description Total DISCRETIONARY SPENDING 167.1 46.3 5.7 63.8 45.8 Total spending excluding the effect of rescissions. Department of Veterans Affairs: Compensation and Pensions 0 13.4 0 13.4 13.4 Provides compensation for Vietnam veterans likely to become eligible for new or additional benefits due to diseases related to exposure to Agent Orange. Treasury: Settling Cobell v. Salazar 0 3.4 0 3.4 0 Would have authorized and paid for recent settlement of management and accounting claims for individual Indian trust funds and lands. Agriculture: Settling Pigford Discrimination Claims 0 1.2 0 1.2 0 Would have funded recent court-approved settlement of discrimination claims by black farmers. Oil Spill Recovery Activities 0 0.2 0 j j Provides additional financing for Coast Guard response activities also funded in a separate act; would have set up unemployment benefit program for those affected by the Gulf Oil spill. MANDATORY TOTAL 0 18.1 0 18.0 13.4 TOTAL RESCISSIONS 0 0 -.6 -12.2 -.4 TOTAL 10-YEAR MANDATORY SAVINGS k 0 0 0 -4.5 0 Government drug cost savings from increased Medicaid price rebates and improved access to generic drugs. DISCRETIONARY AND MANDATORY SPENDING TOTAL 167.1 64.3 5.7 81.8 59.2 FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 8 Agency/Purpose FY2010 Enacted FY2010 Supp Request House version of H.R. 4899 as passed 3-24-10 House- amended version of H.R. 4899 as passed 7-1-10 and receded from 7-27-10 a P.L. 111-212, enacted version of H.R. 4899 as passed by the Senate 5-27-10 and by the House 7-27-10 Brief Description DISCRETIONARY TOTAL WITH RESCISSIONS 167.1 46.3 5.1 51.7 45.4 Reflects new Budgetary Authority (BA) required, that is, total spending offset by rescissions. MANDATORY TOTAL WITH 10- YEAR SAVINGS 0 18.1 0 13.5 13.4 Reflects mandatory BA and mandatory savings. DISCRETIONARY AND MANDATORY WITH RESCISSIONS AND MANDATORY SAVINGS 167.1 64.4 541 65.1 58.8 Reflects total discretionary and mandatory spending and total rescissions and 10-year mandatory savings. Sources: OMB, “FY2010 War-Related Supplemental;” http://www.whitehouse.gov/omb/budget/fy2011/assets/sup.pdf; OMB, “FY2010 Disaster Relief and Court Case Supplemental;” hereinafter, OMB, “FY2010 Haiti Supplemental,” http://www.whitehouse.gov/omb/assets/budget_amendments/amendment_03_24_10.pdf; OMB, “Oil Spill Request;” http://www.whitehouse.gov/omb/assets/budget_amendments/supplemental_05_12_10.pdf; OMB Estimate No. 4, “FY2010 Supplemental Proposals For a General Provision to Allow the Transfer of Funds from the Department of Defense to the Department of Transportation’s Maritime Administration for Improvements to the Port of Guam; and for Additional FY2010 Funding to the Legislative Branch for the Capitol Police,” April 5, 2010; http://www.whitehouse.gov/omb/assets/budget_amendments/amendment_04_05_10.pdf; OMB, Border Security Request, 6-22-10; http://www.whitehouse.gov/omb/assets/budget_amendments/amendment_06_22_10.pdf. OMB, “Estimate No. 9, FY2010 Supplemental Proposals in the FY2011 Budget for the Department of Commerce to support efforts to reduce patent pendency and reform U.S. Patent and Trademark Office operations and ensure continuation of efforts to administer and oversee grants awarded under the Broadband Technology Opportunity Program, fully offset from within the Department of Commerce’s Census Bureau,” 7-12-10; H.R. 4899 as passed by the Senate on May 27, 2010, and H.Rept. 111-188, May 13, 2010; H.R. 4899 as amended by the House on July 1,2010, and receded from on July 27, 2010, and H.Rept. 111-522 on H.Res. 1500, rule for H.R. 4899; H.R. 4899 as passed by the House July 27, 2010. Notes: CRS calculations based on sources above. May not add to total due to rounding. a. A motion to recede is a motion to withdraw from its previous position. b. House included $129 million in H.R. 5874, offset by additional fees, passed by voice vote, July 28, 2010, and sent to the Senate. c. Final version included $32 million for the Farm Loan Program. d. FY2010 enacted included $3 million for this program. e. $22 million was provided for mine safety inspections and research. f. House passed H.R. 5875 with $701million in spending and $166.5 million in offsets on July 28, 2010; Senate amended bill with funding of $600 million, fully offset, on August 5, 2010. g. The House included these funds in H.R. 5875, fully offset, passed by voice vote, July 28, 2010; passed by the Senate on July 29 th and sent to the President, July 30, 2010. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 9 h. Includes funds for D.C. Public Defender Service, Financial Crisis Inquiry Commission, Small Business Administration loans, Coast Guard acquisition, House of Representatives Payments to widows of deceased Members, Capitol Police and GAO audits of American Recovery and Reinvestment Act funding. i. $16 million was provided for “Other programs in the House March version, $67 million in the July 1, 2010, version and $20 million in the enacted version. j. $27 million was provided in the July 1, 2010, version and $125 million in the final version but this funding was also included in S. 3473/P.L. 111-191, separate legislation passed on June 5, 2010, so it is not counted here. k. Savings for medical cost initiatives estimated by CBO. Summary of Congressional Action on H.R. 4899 Congress addressed the Administration’s $64.3 billion request for supplemental spending for FY2010 in the following actions between March 24, 2010, and July 27, 2010 (see Table 1): • The House passed H.R. 4899 by a vote of 239-174 of H.R. 4899 on March 24, 2010 (no House report) with $5.1 billion in spending for the Disaster Relief Fund in Federal Emergency Management Agency (FEMA), and $600 million for the Department of Labor’s summer jobs program, to be funded by $5.1 billion in new Budget Authority (BA) and $600 million in offsetting rescissions; • The Senate passed H.R. 4899 by a vote of 67 to 28 H.R. 4899 on May 27, 2010 (S.Rept. 111-188) with $59.2 billion in spending, for disaster relief, war funding, war-related foreign assistance, Haiti relief and reconstruction, additional benefits for Vietnam veterans exposed to Agent Orange; other disaster relief, other foreign assistance, and oil spill recovery funding, funded with $58.9 billion in new BA and $380 million in offsetting rescissions; • The House adopted the Senate’s May 25, 2010, version of H.R. 4899 and added funds for the Education Jobs Fund, Pell Grants, summer youth employment, funding for the Cobell and Pigford II court cases on July 1, 2010, with a total of $81.8 billion in spending, funded with $65.1 billion in new BA and $16.7 billion in rescissions and mandatory savings; • The Senate failed to invoke cloture on the House’s July 1, 2010, amended version, and sent a message of disagreement with that version to the House on July 22, 2010; • The House receded from (withdrew its support of) the July 1, 2010, version of H.R. 4899 that it had passed, and adopted the Senate May 27 version by a vote of 308-114 (two-thirds of those present required under suspension of the rules) on July 27, 2010; and • The President signed the bill on July 29, 2010, P.L. 111-212. Overview, Deadlines, and Potential Issues The Administration requested a total of $64.4 billion in supplemental funding in FY2010 to deploy more U.S. troops for the Afghan War, replenish Disaster Assistance Funds, support recovery and foreign aid funds for Haiti in response to the January 2010 earthquake, enhance FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 10 border security, and settle two recently decided court cases for American Indians and black farmers. Specifically, the FY2010 supplemental requests included: • $5.1 billion to replenish the U.S. Disaster Relief Fund administered by the Federal Emergency Management Agency; • $33.0 billion for the Defense Department, primarily to deploy 30,000 more troops to Afghanistan; • $4.5 billion in foreign assistance for Afghanistan, Iraq, and Pakistan; • $2.8 billion for Haiti reconstruction and foreign aid in the wake of January’s earthquake; • $13.4 billion to compensate veterans exposed to Agent Orange; • $243 million for appropriations-related responses to the Deepwater Horizon oil spill; • $600 million primarily for additional border security personnel; and • $3.4 billion to settle land trust claims of American Indians in the long-standing Cobell case and $1.2 billion to settle the discrimination claims of 70,000 black farmers in the Pigford II case (see Table 1). One of the chief issues that arose as the Senate and House considered H.R. 4899 was the effect of this supplemental spending on the federal deficit. Each version had different amounts of rescissions to offset discretionary spending—rescissions cancel earlier appropriations and thus reduce the amount of new Budget Authority (BA) needed—and different amounts of mandatory savings spending, which offset direct spending. In the first version of H.R. 4899, passed by the House on March 24, 2010, the House bill included $600 million in offsets for the $5.7 billion in spending. In the second version, passed by the Senate on May 27, 2010, the bill included $380 million in offsets to offset the $59.3 billion recommended in the bill. In the third version of the bill, amended by the House on July 1, 2010, H.R. 4899 included $12.2 billion in rescissions and $4.5 billion in mandatory savings to offset the $81.8 billion in proposed spending (see Table 1). The effect on the deficit depends on the net amount of new BA needed for each version. 17 Congressional rules require that spending fit within totals set for discretionary and mandatory spending in the annual budget resolution, unless the funds are designated as emergencies. Although the budget resolution cites criteria for emergency spending, it is up to Congress to designate spending as emergency. Of the $45.8 billion in discretionary spending in the final version of H.R. 4899, almost all the spending was designated as emergency, and thus would not count against the budget caps set in the FY2010 concurrent resolution. If those caps are exceeded, spending could be subject to a point of order, which would need to be waived for the spending to be approved (see discussion below). 18 17 In many cases, rescissions cancel funding that would expire in the current fiscal year, raising some questions about whether those monies would actually have been spent. If those appropriations were not rescinded, those funds would expire and the deficit would decrease by those amounts. 18 See Sec. 3002 in Senate version of H.R. 4899, and Section 102 in House-passed version of H.R. 4899 for emergency designation; see CBO, “H.R. 4899, Supplemental Appropriations, FY2010, Non-Emergency by Title, Discretionary (continued...) FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 11 Federal budget rules distinguish between two types of federal spending, discretionary spending (e.g., annual appropriations acts) and direct (or mandatory) (e.g., Medicare) spending. 19 Of the $64.4 billion in the President’s supplemental request, $46.3 billion is discretionary spending and $18.1 billion is mandatory or direct spending (see Table 1). The Administration submitted these requests to Congress in supplemental proposals included as part of the Administration’s FY2011 budget, and in budget amendments submitted on February 12, 2010, March 24, 2010, April 5, May 12, May 22, and July 12, 2010. 20 Many see emergency supplemental appropriations as undermining budgetary discipline because funding is not subject to annual caps in budget resolutions on overall discretionary spending that often require trade-offs between different types of spending. Section 403 (f) in S.Con.Res. 13, the FY2010 budget resolution, defines spending as emergency if it is “essential ... sudden ... compelling ... unanticipated,” but it is a congressional prerogative to decide where the emergency designation is appropriate. Supplementals are also perceived as receiving less scrutiny than regular appropriations. In the current fiscal environment, some Members are concerned about the impact of this additional spending on the deficit. Budget Rules and Supplemental Requests 21 In dealing with any supplemental appropriations request, Congress may debate whether to increase spending above the level already appropriated for that year and, in some cases, levels for subsequent fiscal years. If Congress decides the additional spending is necessary, it must also decide whether the request warrants increasing the budget deficit or whether to offset the additional spending by either cutting federal spending or increasing revenues. (...continued) Only,” 5/14/10. 19 Discretionary spending is provided in appropriations acts generally on an annual basis. Direct spending, in contrast, is generally provided (in many cases, on a permanent basis, and in other cases, for a set number of fiscal years) in authorizing legislation that requires federal payments to individuals or entities, often based on eligibility criteria and benefit formulas set forth in statute. Some direct spending is provided in appropriations acts but is controlled by the authorizing statute(s) or provided by legislative language in an appropriations acts, such as legislative language authorizing a litigation settlement. 20 Office of Management and Budget, Budget of the United States, FY2011, “Supplemental Proposals,” 2-1-10, hereinafter OMB, “FY2010 War-Related Supplemental;” http://www.whitehouse.gov/omb/budget/fy2011/assets/ sup.pdf; OMB, FY2010 Supplemental, “Estimate No. 2, Request for Department of Homeland Security for Disaster Relief, for continued response and recovery efforts associated with prior large events, such as Hurricane Katrina and the Midwest floods; and for general provisions,” February 12, 2010, hereinafter, OMB, “FY2010 Disaster Relief and Court Case Supplemental;” Request; Office of Management and Budget, “Estimate No. 3, March 24, 2010; FY2010 Emergency Supplemental Proposals in the FY2011 Budget for Costs Associated with Relief and Reconstruction Support for Haiti following the Earthquake of January 12, 2010, for the Departments of Agriculture, Defense, Health and Human Services, Homeland Security, State, and the Treasury,“ March 24, 2010, hereinafter, OMB, “FY2010 Haiti Supplemental,” http://www.whitehouse.gov/omb/assets/budget_amendments/amendment_03_24_10.pdf; OMB, Estimate No. 5, “To provide critical funds and authorities for the Departments of Labor, Agriculture, Commerce, Justice, the Interior, the Environmental Protection Agencies, the Departments of Health and Human Services, Homeland Security, and the Treasury needed to respond to Deepwater Horizon Oil Spill in the Gulf of Mexico spill as well as changes to current law to better prepare the nation for any future spills, 5/12/10,” hereinafter, OMB, “Oil Spill Request;” http://www.whitehouse.gov/omb/assets/budget_amendments/supplemental_05_12_10.pdf.. 21 Written by William Heniff, Analyst on Congress and the Legislative Process, Government and Finance Division, 707-8646, CRS. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 12 Congress considers all spending or revenue legislation, including supplemental appropriations bills, within rules and procedures that are intended to address these policy options. 22 In particular, Congress considered the FY2010 supplemental appropriations request within the constraints set by the FY2010 budget resolution (S.Con.Res. 13, H.Rept. 111-89), as well as other budget rules, such as congressional pay-as-you-go rules and the recently enacted Statutory PAYGO Act of 2010 (P.L. 111-139). Under these budget rules, Congress could have exempted all or portions of the spending from these constraints by designating the spending as an emergency (or as being for “overseas deployments or other activities” in the House). 23 Alternatively, under congressional rules, the applicable points of order could have been waived, or simply not raised during consideration of the supplemental appropriation measure. While an emergency designation would exempt spending from these budget rules, the emergency designation itself could be subject to a point of order. 24 This applicable point of order may be waived in both houses. In the House, it can be waived by a special rule reported by the House Rules Committee and agreed to by the House, and in the Senate, by waiver motion, which requires a three-fifths affirmative vote of Senators (60 votes if there is no more than one vacancy in the Senate). Potential Deadlines Throughout consideration of H.R. 4899 from late March to late July 2010, the Coast Guard, the Defense Department, the State Department, the Federal Emergency Management Agency, and the plaintiffs in the Cobell and Pigford II cases have all cited deadlines for when the supplemental funding would be needed, although there appears to have been some flexibility in the dates. Concerns that Funds for Coast Guard Oil Spill Response Activities Could Run Out in Mid-June In a June 4, 2010, letter to congressional leaders, Admiral Thad Allen, National Incident Commander for the Deepwater Horizon oil spill, and Department of Homeland Security Secretary Janet Napolitano urged Congress to act on the Administration’s proposal to raise the cap on funds that could be drawn from the Oil Spill Liability Trust Fund for these response activities. They stated that “at the current pace of BP/Deepwater Horizon response operations, funding available 22 For an overview of federal budget procedures, see CRS Report 98-721, Introduction to the Federal Budget Process, by (name redacted); for more detailed information on points of order that apply to budgetary legislation, see CRS Report 97-865, Points of Order in the Congressional Budget Process, by (name redacted)<>; for information on PAYGO rules, see CRS Report RL33850, The House’s “Pay-As-You-Go” (PAYGO) Rule in the 110 th Congress: A Brief Overview, by (name redacted), CRS Report RL31943, Budget Enforcement Procedures: Senate Pay-As-You-Go (PAYGO) Rule, by (name redacted), and CRS Report R41157, The Statutory Pay-As-You-Go Act of 2010: Summary and Legislative History, by (name redacted). 23 The emergency and overseas deployments designations are provided for in Sections 403 and 423 of S.Con.Res. 13, the FY2010 congressional budget resolution, as applicable to the Senate and House, respectively. 24 For additional information on the emergency designation, see CRS Report RS21035, Emergency Spending: Statutory and Congressional Rules, by (name redacted). FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 13 in the Emergency Fund [from the Oil Spill Liability Trust Fund] will be insufficient to sustain Federal response operations within two weeks.” 25 This letter suggested that the Coast Guard could reach the current $150 million annual cap on the amount that can be drawn from the Oil Spill Liability Trust Fund by June 18, 2010. If the Coast Guard were not able to tap other funding sources (such as its regular operating account) to finance its oil spill response activities, additional monies from the trust fund would not be available until October 1, 2010. Concerned about the letter, the House and Senate passed S. 3473, P.L. 111-191, on June 9 and June 20, 2010, raising the $150 annual cap on funds that can be drawn from the trust to fund oil spill activities to $1 billion specifically for the Deepwater Horizon Spill. The act allows funds to be withdrawn in $100 million increments and are to be reported to Congress within seven days. 26 Concerns that Defense Department Deadline Could Be Mid-August The Department of Defense (DOD) received $129.6 billion, 80% of its total FY2010 war funding in bridge funds included in its regular appropriations acts enacted last December (P.L. 111-118 and P.L. 111-117), almost double the 45% received in the bridge the previous year. In early May, Secretary of Defense Gates reiterated that DOD would need the additional $33 billion for the 30,000 troops deploying to Afghanistan by Memorial Day, the same date cited in previous years when the funding available was substantially lower. 27 In February testimony, the Secretary of the Army, the department facing the greatest need for war funding, testified that the timeframe for the Army “in which we can comfortably fund this [war funding] would be at the end of June, beginning of July.” 28 Based on CRS calculations using DOD data, the Army, Navy and USMC could, if necessary, cover both its regular base activities and war operations through August 2010 based on war obligations to date and the current request, and even later if funds were temporarily transferred from other appropriation accounts using currently available authority. 29 In June 16, 2010, testimony, Secretary of Defense Gates cited his concern about the “lack of progress on the supplemental,” and urged passage by the July 4 recess, saying the money that we have in the overseas contingency fund for the Navy and the Marine Corps will begin to run out in July. We will then turn to O&M money in the base budget for them, causing us to disrupt other programs. The Army comes along a little behind that ... we begin to have to do disruptive planning and disruptive actions beginning in July We could reach a pointing August, in early to mid-August, where we actually could be in a position where the 25 Letter to House Speaker Nancy Pelosi, Majority Leader Hoyer, Minority Leader Boehner, Senate Majority Leader Reid and Minority Leader McConnell from Secretary of Homeland Security Janet Napolitano and Admiral Thad Allen, National Incident Commander, June 4, 2010. 26 S. 3473 as passed by the House and the Senate. 27 CQ, Budget Tracker, “Morning Briefing,” May 7, 2010. 28 Senate Armed Services Committee, Transcript, “Fiscal 2011 Army Budget Request,” p. 16, February 23, 2010. 29 CRS calculation based on Operation and Maintenance obligations of services through May 31, 2010, for war funds and estimates for base funding. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 14 money that we have available to us in the base budget runs out and we could have a situation where we are furloughing civilians and where we have active duty military we cannot pay. 30 In mid-July, DOD press spokesman Geoff Morrell said that the Army and Marine Corps could run out of funding sometime in August. 31 In testimony, Under Secretary of the Army, Joseph Westphal testified that the Army had sufficient funds through mid-August and could last through the recess if reprogramming requests were approved. 32 Based on the May 31, 2010, DOD Cost of War report, the latest available during final congressional consideration of H.R. 4899, each of the services had funds still available in their War Bridge Operation and Maintenance accounts—$1.2 billion for the Marine Corps, $1.5 billion for the Navy, $15.3 billion for the Army, and $2.2 billion for the Air Force. Assuming that monthly spending increased by 20% from the April 2010 level as additional troops arrived in theater, the Army and Marine Corps, the services most heavily taxed by war spending, could rely on already appropriated war bridge funds through August, or somewhat sooner if spending increased more rapidly. 33 Since 2004,the services have tapped funding from their base budget that would be needed at the end of the fiscal year to fund war funding while awaiting passage of supplementals, at which point funds are restored to the base budget accounts. Using base budget funding to finance or “cash-flow” war funding temporarily, and assuming the services need all funding requested in the supplemental, each of the services could have lasted through the end of July and into August and still longer if funds were transferred from other accounts, which DOD has done in previous years when necessary. 34 FEMA Limited Disaster Assistance to Extend Deadline To make the Disaster Relief Fund last longer pending consideration of the FY2010 Supplemental, the Federal Emergency Management Agency (FEMA) limited the release of funds for claims, delayed interagency reimbursements, and recovered funds from previous years. Nevertheless, in May 2010, FEMA estimated that the Disaster Relief Fund would become insolvent the end of June assuming average monthly spending of $350 million and a balance at the end of April 2010 of $600 million. 35 30 Senate Appropriations Committee, Transcript, “FY2011 Budget Request for the Defense Department,” June 16, 2010,testimony of Secretary Gates, p. 5 and p. 28. 31 DOD, Press Transcript, July 14, 2010. 32 House Armed Services Committee, Transcript, “Managing the Defense Department in a Time of Tight Budgets,” July 22, 2100, p. 16. 33 CRS calculations from Department of Defense, Cost of War Report as of May 31, 2010, taking into account amounts in DOD’s base budget, FY2010 enacted bridge in P.L. 111-118, and obligations to date. 34 CRS calculations based on budget authority available in FY2010 for the base budget and from war bridge funding, assuming average monthly obligations increase 20% above May level. The amounts in the request assume that O&M funding for the services would be 36% higher in the last four months of the fiscal year than in May 2010; typically the services spend at a higher rate in the last month of the fiscal year.. 35 CQ, Budget Briefing, “A Bit More Breathing Room for FEMA,” May 7, 2010; Statement of James L. Oberstar, Subcommittee on Economic Development, Public Buildings, and Emergency Management, May 5, 2010; telephone conversation with a legislative liaison for the Department of Homeland Security, April 28, 2010. [... middle sections omitted for long document ...] FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 90 Procedures and Debate In H.Res. 1500, adopted by the House rule to govern floor consideration of H.R. 4899, Members voted separately first on the rule itself and then on whether to adopt four separate amendments described in H.Rept. 111-522. If the rule and at least one of the amendments were passed, then the entire bill, as amended, was enrolled and sent to the Senate. On July 1, 2010, the House adopted the rule by a vote of 215 to 210. 238 Adoption of the rule entailed not only set the procedures governing consideration but also adopted the Senate May version of the bill. In addition, adoption of the rule authorized and funded the two settlement costs of the two court cases (Pigford II and Cobell), provided $1 billion for the summer jobs program, set FY2011 total discretionary and mandatory funding levels in the House through a “deeming” resolution, and changed certain transportation grant formulas and tax eligibility rules for cellulosic biofuel producers. 239 After adopting the rule, the House passed House Amendment No. 2 by 239 to 182. That amendment included the additional funding for domestic programs that was not in the Senate bill (see above). During the debate on July 1, 2010, Republican members argued that the House should pass the Senate version of the bill, confining spending to the Administration’s request for FEMA disaster assistance, war funding, new VA benefits, and settling the court cases, and that the additional domestic spending was not justifiable in light of current and prospective high deficits. Democratic members argued that the additional domestic spending was justified as a way to prevent layoffs during the current recession and provide additional government-sponsored credit for farmers and energy projects, and for students facing difficulties because of the current tightened lending environment. 240 In considering the three war-related amendments (Amendments 4, 5, and 6 in H.Rept. 111-522), debate focused on the wisdom of the current Administration policy in Afghanistan, the need for DOD to get its war funding, and the President’s policy announced December 1, 2009, to begin withdrawal of troops from Afghanistan in July 2011. 241 Additional Funding The House amended July 1, 2010, version included the following additional spending: • $10.0 billion for the Education Job Funds to prevent teacher layoffs; • $5.0 billion for Pell Grants; • $701 million for enhanced border security activities; • $538 million for Program Integrity initiatives targeting waste, fraud, and abuse in Medicare and Medicaid; • $180 million for loans for nuclear and alternative energy; 238 See H.Rept. 111-522 for the rule and Congressional Record, p. H5357, July 1, 2010, for the vote. 239 See H.Rept. 111-522 for the rule and Congressional Record, p. H5357, July 1, 2010, for the vote. 240 See Congressional Record, July 1, 2010, pp. H5342-p.5406. 241 Ibid. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 91 • $159 million vs. $94 million for oil spill recovery relief and recovery activities; • $82 million vs. $32 million for agricultural and farm loans and emergency food assistance; and • $67 million vs. $20 million for other activities including mine safety efforts (see Table 1). In addition, the House July-amended version included $2.5 billion compared to $2.0 billion in the Senate May version for non-defense DOD spending, primarily for increased fuel costs for DOD’s base budget. 242 The House version also added $300 million for base closure related transportation improvements, and $16.5 million for a Soldier Readiness Center at Fort Hood, site of the recent fatal shootings. Additional Offsets and Savings The House July-amended version also included substantially larger offsets from both rescissions and savings in mandatory programs including $12.2 billion in rescissions, compared to $381 million in the Senate May 25, 2010, version and $4.5 billion in savings from mandatory programs, that are not addressed by the Senate. Rescissions of unobligated authority can be used to offset new spending. Budget authority (BA) is available for obligation from one to five years depending on the type of authority; for example, military construction authority can be obligated over five years whereas military personnel spending must be obligated within one fiscal year. If budget authority remains unobligated at the end of its useful life, then the funds expire and reduce the deficit by that amount. While some rescissions are controversial, others, particularly where the BA is unlikely to be obligated before the end of its fiscal life, are not controversial. The $12.2 billion in rescissions in the House July-amended version of H.R. 4899 included the following: • $3.2 billion in DOD funding primarily funds due to expire by September 30, 2010, and $500 million in DOD’s Military construction funding from contract savings; • $2.2 billion in unused highway contract authority; • $2. billion in unused funds for pandemic flu; • $1.3 billion in American Recovery Act funding; • $800 million in unobligated Education Department funding for the Administration’s ”Race to the Top” initiative and teacher incentive awards that triggered a veto threat from the Administration; • $748 million in unused or frozen disaster assistance funding; • $220 million in State Department funding; and 242 This total does not include $655 million in DOD funding for its Haiti relief activities. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 92 • $1.8 billion from a variety of other programs. 243 In a Statement of Administration policy issued July 1, 2010, the Office of Management and Budget stated that the President would veto any version of the bill that “undermined his abilities as Commander-in-Chief” to conduct operations in Afghanistan or included the $800 million in rescissions to the Administration’s education initiative. 244 In addition to the spending proposals, the House also considered and rejected three amendments that would have restricted funding or required additional votes on war funding in Afghanistan on July 1, 2010. The first war-related amendment would have deleted all DOD war funding and failed by a vote 25 to 376. The second amendment requiring that war funding in the bill be restricted to paying for providing protection to military, civilian, and contractor personnel and beginning the “safe and orderly” withdrawal of these personnel failed by a vote of 100 to 321. 245 The third war-related amendment would have required that funds in the act could not be obligated or expended “in a manner that is inconsistent” with the President’s policy to begin the withdrawal of troops by July 1, 2011, unless the Congress votes to explicitly approve such a change under expedited procedures. The amendment also required that the President submit a withdrawal plan by April 4, 2011, conduct a new national intelligence estimate for Afghanistan and Pakistan, and report within 90 days of enactment on recommendations to increase oversight of contractors in Afghanistan. This amendment failed by a vote of 162 to 260. 246 Before floor action, the House leadership deleted proposals to add $1.2 billion for the Community Oriented Policing Services (COPS) program and $500 million for Firefighter Assistance grants that were included in a Majority Leadership draft circulated earlier. 247 243 CRS calculations from H.R. 4899 as passed by the House on July 1, 2010. 244 OMB, Statement of Administration Policy, “H.R. 4899 - FY2010 Supplemental Appropriations Act,” July 1, 2010; http://www.whitehouse.gov/omb/assets/sap_111/saphr4899h_20100701.pdf. 245 See H.Rept. 111-522, p. 58-p. 59, and Congressional Record, Daily Digest, p. D766, July 1, 2010. 246 H.Rept. 111-522, pp. 59-p.62 and Congressional Record, p. D766, July 1, 2010. 247 House Majority Whip, James E. Clyburn, “The Whip Question,” June 25, 2010. FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs Congressional Research Service 93 Author Contact Information (name redacted), Coordinator Specialist in U.S. Defense Policy and Budget [redacted]@crs.loc.gov, 7-.... (name redacted)<><><> Analyst in Foreign Affairs [redacted]@crs.loc.gov, 7-.... (name redacted) Specialist in National Defense [redacted]@crs.loc.gov, 7-.... (name redacted)<><><><> Specialist in Latin American Affairs [redacted]@crs.loc.gov, 7-.... (name redacted)<> Analyst in Emergency Management Policy [redacted]@crs.loc.gov, 7-.... (name redacted) Specialist in Foreign Affairs [redacted]@crs.loc.gov, 7-.... (name redacted) Specialist in International Humanitarian Policy [redacted]@crs.loc.gov, 7-.... Acknowledgments In addition to the authors listed on the title page, the following individuals contributed to this report: (name redacted), Specialist in Social Policy, (name redacted), Specialist in Public Health and Epidemiology, (name redacted)<>, Specialist in Immigration Policy, (name redacted), Specialist in American Indian Policy, David Bradley, Analyst in Labor Economics, Julie Whittaker, Specialist in Income Security, Chad Haddal, Analyst in Immigration Policy, (name redacted), Analyst in Health Care Financing, and (name redacted), Specialist in Drug Safety and Effectiveness, all of the Domestic Social Policy Division; (name redacted), Analyst in Natural Resources and Rural Development Policy, (name redacted), Specialist in Energy Policy, (name redacted)<>, and (name redacted)<><>, Specialists in Environmental Policy, Resources, Science, and Industry Division; William Heniff, Analyst on Congress and the Legislative Process, and Richard Beth, Specialist on Congress and the Legislative Process, Government and Finance Division; (name redacted), CRS Specialist in National Security, (name redacted)<><><><>, CRS Specialist in International Relations, and Martin Weiss, Specialist in International Trade and Finance, of the Foreign Affairs, Defense, and Trade Division (FDT). Thanks also to reviewers (name redacted), (name redacted), (name redacted), and Gary Pagliano in FDT, and to Nicole Palmer for help with formatting. The Congressional Research Service (CRS) is a federal legislative branch agency, housed inside the Library of Congress, charged with providing the United States Congress non-partisan advice on issues that may come before Congress. EveryCRSReport.com republishes CRS reports that are available to all Congressional staff. The reports are not classified, and Members of Congress routinely make individual reports available to the public. Prior to our republication, we redacted names, phone numbers and email addresses of analysts who produced the reports. We also added this page to the report. We have not intentionally made any other changes to any report published on EveryCRSReport.com. CRS reports, as a work of the United States government, are not subject to copyright protection in the United States. 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