[House Report 113-446]
[From the U.S. Government Publishing Office]
113th Congress } { Rept. 113-446
2d Session } HOUSE OF REPRESENTATIVES { Part 2
=======================================================================
HOWARD P. ``BUCK'' MCKEON NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL
YEAR 2015
_______
May 19, 2014.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. McKeon, from the Committee on Armed Services,
submitted the following
SUPPLEMENTAL REPORT
[To accompany H.R. 4435]
[Including cost estimate of the Congressional Budget Office]
This supplemental report shows the cost estimate of the
Congressional Budget Office with respect to the bill (H.R.
4435), as reported, which was not included in part 1 of the
report submitted by the Committee on Armed Services on May 13,
2014 (H. Rept. 113-446, pt. 1).
Congressional Budget Office Estimate
In compliance with clause 3(c)(3) of rule XIII of the House
of Representatives, the cost estimate prepared by the
Congressional Budget Office and submitted pursuant to section
402 of the Congressional Budget Act of 1974 is as follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 16, 2014.
Hon. Howard P. ``Buck'' McKeon,
Chairman, Committee on Armed Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4435, the Howard
P. ``Buck'' McKeon National Defense Authorization Act for
Fiscal Year 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Robert A. Sunshine
(For Douglas W. Elemendorf, Director).
Enclosure.
H.R. 4435--Howard P. ``Buck'' McKeon National Defense Authorization Act
for Fiscal Year 2015
Summary: H.R. 4435 would authorize appropriations totaling
$594 billion for fiscal year 2015 for the military functions of
the Department of Defense (DoD), for certain activities of the
Department of Energy (DOE), and for other purposes. That total
includes $79 billion for the cost of overseas contingency
operations, primarily in Afghanistan. In addition, H.R. 4435
would prescribe personnel strengths for each active-duty and
selected-reserve component of the U.S. armed forces. CBO
estimates that appropriation of the authorized amounts would
result in outlays of $581 billion over the 2015-2019 period.
The bill also contains provisions that would increase or
decrease the costs of defense programs funded through
discretionary appropriations in 2016 and future years. Those
implicit authorizations would affect force structure, DoD
compensation and benefits, and other programs and activities.
CBO has analyzed the costs of a select number of those
authorizations and estimates that they would, on a net basis,
lower the amount of appropriations needed to implement defense
programs relative to current law by about $29 billion over the
2016-2019 period. The effects of those reductions are not
included in the total amount of outlays in the previous
paragraph because funding for those activities would be covered
by specific authorizations in future years.
In addition, H.R. 4435 contains provisions that would
affect direct spending. CBO estimates that, on net, those
provisions would decrease direct spending by $35 million over
the 2015-2019 period, but increase such spending by $1 million
over the 2015-2024 period. Because enacting the legislation
would affect direct spending, pay-as-you-go procedures apply.
Enacting the bill would not affect revenues.
The bill would impose an intergovernmental mandate as
defined in the Unfunded Mandates Reform Act (UMRA) by
preempting state laws governing child custody in some cases.
Although the mandate would limit the application of state laws,
it would impose no duty on states that would result in
additional spending. Therefore, CBO estimates that the cost of
the mandate would fall well below the threshold established in
UMRA for intergovernmental mandates ($76 million in 2014,
adjusted annually for inflation).
Also, this bill contains a new private-sector mandate as
defined in UMRA by imposing a time limit on filing claims
against the United States for losses covered by the Federal
Aviation Administration's War Risk Insurance Program. CBO
estimates that the cost of this mandate would be small and
would fall well below the private-sector threshold established
in UMRA ($152 million in 2014, adjusted annually for
inflation).
Estimated cost to the Federal Government: The estimated
budgetary effects of H.R. 4435 are summarized in Table 1.
Almost all of the $594 billion that would be authorized by the
bill is for activities within budget function 050 (national
defense). Some authorizations, however, fall within other
budget functions, including: $226 million for the Maritime
Administration (function 400--transportation); $147 million for
activities within the Department of Veterans Affairs (function
700--veterans benefits and services); $63 million for the Armed
Forces Retirement Home (function 600--income security); and $20
million for the Naval Petroleum Reserves (function 270--
energy).
The provisions that would affect direct spending are
primarily for activities within budget functions 050 and 600.
Basis of estimate: For this estimate, CBO assumes that H.R.
4435 will be enacted near the end of fiscal year 2014 and that
the authorized and estimated amounts will be appropriated at
about that time.
TABLE 1--BUDGETARY EFFECTS OF H.R. 4435, THE HOWARD P. ``BUCK'' McKEON NATIONAL DEFENSE AUTHORIZATION ACT FOR
FISCAL YEAR 2015
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------
2015 2016 2017 2018 2019
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Specified Authorization of Regular
Appropriations for 2015, Primarily for the
Departments of Defense and Energy:
Authorization Level..................... 514,263 0 0 0 0 514,263
Estimated Outlays....................... 329,991 106,494 39,146 18,397 8,343 502,372
Estimated Authorization of Additional
Regular Appropriations for 2015 for Accrual
Payments:a
Estimated Authorization Level........... 727 0 0 0 0 727
Estimated Outlays....................... 727 0 0 0 0 727
Specified Authorization of Appropriations
for Overseas Contingency Operations:
Authorization Level..................... 79,445 0 0 0 0 79,445
Estimated Outlays....................... 40,017 24,784 8,778 3,066 958 77,602
Other Authorizations of Appropriations:b
Estimated Authorization Level........... 0 8 0 0 0 8
Estimated Outlays....................... 0 6 2 0 0 8
-------------------------------------------------------------------
Total
Estimated Authorization Level....... 594,435 8 0 0 0 594,443
Estimated Outlays................... 370,735 131,284 47,926 21,463 9,301 580,709
CHANGES IN DIRECT SPENDINGc
Estimated Budget Authority.................. -1 -30 -11 * 7 -35
Estimated Outlays........................... -1 -30 -11 * 7 -35
----------------------------------------------------------------------------------------------------------------
Notes: Except as noted below, the authorization levels in this table reflect amounts that would be specifically
authorized by the bill. The bill also would implicitly authorize some defense activities in 2016 and future
years; those authorizations are not included above (but estimates for a select number of them are shown in
Table 3) because funding for those activities would be covered by specific authorizations in future years.
* = less than $500,000; Numbers may not add up to totals because of rounding.
\a\This authorization reflects CBO's estimate of the added cost of certain accrual payments required under
current law but not fully reflected in the amounts specifically authorized by the bill.
\b\This authorization reflects the estimated cost for extending certain benefits to federal civilian workers who
perform official duties in a combat zone and are employed by departments and agencies other than DoD.
\c\In addition to the changes in direct spending shown above (a decrease of $35 million over the 2015-2019
period), H.R. 4435 would have effects beyond 2019. CBO estimates that over the 2015-2024 period, H.R. 4435
would increase direct spending by $1 million (see Table 4).
Spending Subject to Appropriation
The bill would authorize appropriations for 2015 totaling
$594 billion, of which $51 billion would be specific
authorizations of regular appropriations for ``base budget''
costs (not directly related to overseas contingency
operations). Funding for base budget costs would be
specifically authorized as follows: $496 billion for DoD and
$18 billion for atomic energy defense activities of DOE and for
various other programs (see Table 2).
The funding that would be authorized for DoD's base budget
is $1 billion above the appropriations enacted for 2014. For
that comparison, the amount that would be authorized for DoD's
base budget also reflects CBO's estimate of the additional
amount needed--$727 million--to fully fund certain accrual
payments required under current law but not fully reflected in
the amounts specifically authorized by the bill. Funding would
increase for both operation and maintenance ($4 billion, or 2
percent) and for research and development ($1 billion, or 2
percent), and would remain nearly unchanged for two other large
categories of spending--military personnel and procurement.
Funding for military construction, family housing, and the
department's revolving funds would--on a combined basis--
decline by $4 billion, or about 30 percent.
For DOE and other programs, the $18 billion that would be
authorized for 2015 represents a $0.5 billion (3 percent)
increase over the amount appropriated for 2014.
The $79 billion that would be authorized for overseas
contingency operations represents a $6 billion (7 percent)
decline relative to current appropriations. Funding for
operation and maintenance would decline by $4 billion (5
percent), while funding for military personnel would decrease
by $1 billion (12 percent). Appropriations for all other
categories (combined) would also decline by $1 billion (12
percent).
H.R. 4435 also contains provisions that would affect the
cost of various discretionary programs in future years. Most of
those provisions would affect end strength, military
compensation and benefits, and DoD's acquisition programs. The
estimated effects of some of those provisions are shown in
Table 3 and discussed below. The following discussion does not
address the timing of outlays from those estimated
authorizations. All such spending would be subject to
appropriation action.
TABLE 2--SPECIFIED AUTHORIZATIONS OF APPROPRIATIONS IN H.R. 4435
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------
2015 2016 2017 2018 2019 2015-2019
----------------------------------------------------------------------------------------------------------------
Authorization of Regular Appropriations:
Department of Defense
Military Personnel:\a\
Authorization Level............... 135,244 0 0 0 0 135,244
Estimated Outlays................. 125,358 8,053 676 37 0 134,125
Operation and Maintenance:
Authorization Level............... 196,987 0 0 0 0 196,987
Estimated Outlays................. 138,400 40,295 9,797 3,592 1,342 193,426
Procurement:
Authorization Level............... 92,078 0 0 0 0 92,078
Estimated Outlays................. 20,783 27,887 20,989 11,749 5,142 86,550
Research and Development:
Authorization Level............... 63,791 0 0 0 0 63,791
Estimated Outlays................. 31,224 23,028 4,723 2,151 1,481 62,607
Military Construction and Family
Housing:
Authorization Level............... 6,807 0 0 0 0 6,807
Estimated Outlays................. 953 2,095 1,973 890 398 6,309
Revolving Funds:
Authorization Level............... 1,334 0 0 0 0 1,334
Estimated Outlays................. 1,123 206 5 0 0 1,334
General Transfer Authority:
Authorization Level............... 0 0 0 0 0 0
Estimated Outlays................. 200 -80 -60 -40 -20 0
Subtotal, Department of Defense:
Authorization Level........... 496,241 0 0 0 0 496,241
Estimated Outlays............. 318,041 101,484 38,103 18,379 8,343 484,351
Atomic Energy Defense Activities:
Authorization Levelb.............. 17,565 0 0 0 0 17,565
Estimated Outlays................. 11,625 4,933 1,007 0 0 17,565
Other Programs:
Authorization Levelc.............. 457 0 0 0 0 457
Estimated Outlays................. 325 77 36 18 0 456
Subtotal, Authorization of Regular
Appropriations:
Authorization Level........... 514,263 0 0 0 0 514,263
Estimated Outlays............. 329,991 106,494 39,146 18,397 8,343 502,372
Authorization of Appropriations for Overseas
Contingency Operations:
Military Personnel:
Authorization Level................... 7,140 0 0 0 0 7,140
Estimated Outlays..................... 6,633 450 7 0 0 7,090
Operation and Maintenance:
Authorization Level................... 64,675 0 0 0 0 64,675
Estimated Outlays..................... 31,238 21,925 7,114 2,264 517 63,058
Procurement:
Authorization Level................... 6,180 0 0 0 0 6,180
Estimated Outlays..................... 1,607 2,095 1,421 618 315 6,056
Other:d
Authorization Level................... 1,450 0 0 0 0 1,450
Estimated Outlays..................... 464 344 258 199 133 1,398
Special Transfer Authority:
Authorization Level............... 0 0 0 0 0 0
Estimated Outlays................. 75 -30 -23 -15 -8 0
Subtotal, Overseas Contingency
Operations:
Authorization Level........... 79,445 0 0 0 0 79,445
Estimated Outlays............. 40,017 24,784 8,778 3,066 958 77,602
-----------------------------------------------------------------
Total Specified Authorizations:
Authorization Level....................... 593,708 0 0 0 0 593,708
Estimated Outlays......................... 370,008 131,278 47,924 21,463 9,301 579,974
----------------------------------------------------------------------------------------------------------------
Notes: This table summarizes the authorizations of appropriations explicitly stated in the bill in specified
amounts. Various provisions of the bill also would authorize activities and provide authorities that would
result in additional costs in 2016 and in future years. Because the bill would not specifically authorize
appropriations to cover those costs, they are not reflected in this table. Rather, Table 3 contains the
estimated costs of some of those provisions.
Numbers may not add up to totals because of rounding.
a. The authorization of appropriations for military personnel in section 421 includes $6,237 million for accrual
payments to the Medicare-Eligible Retiree Health Care Fund. However, CBO estimates that amount understates--by
$727 million--the amount required for those payments; thus $727 million has been added to the estimated cost
of the bill as reflected in Table 1.
b. This authorization is primarily for atomic energy activities of the Department of Energy.
c. This authorization is for the Maritime Administration ($226 million), veterans' benefits and services ($147
million), the Armed Forces Retirement Home ($63 million), and the Naval Petroleum Reserves ($20 million). The
authorized amount for the Maritime Administration does not include the $186 million specified in the bill for
payments to shipping companies under the maritime security program because that program is authorized under
current law for 2015.
d. This authorization is for the defense health program, drug interdiction and counter-drug activities, and
equipment for the national guard and reserve.
Force Structure. The bill would affect the force structure
of the various military services by setting end strengths for
2015 and modifying the minimum end strengths authorized in
permanent law.
Under title IV, the authorized end strengths in 2015 for
active-duty personnel and personnel in the selected reserves
would total 1,308,920 and 827,800 respectively. Of those
selected reservists, 77,414 would serve on active duty in
support of the reserves. In total, active-duty end strength
would decrease by 52,480 and selected-reserve end strength
(including the Coast Guard Reserve) would decrease by 14,900
when compared with levels authorized under current law for
2015. The specified end strengths for the components of the
armed forces are detailed below.
Active-Duty End Strengths. Compared with end strengths
authorized under current law for 2015, section 401 would
authorize reductions in active-duty personnel for three of the
four services: 30,000 fewer for the Army; 6,100 fewer for the
Marine Corps; and 16,380 fewer for the Air Force. The end
strength authorized for the Navy would remain the same. CBO
estimates that reducing the number of active-duty personnel by
52,480 service members would decrease costs to DoD by $32.8
billion over the 2015-2019 period, assuming appropriations are
reduced by that amount. That estimate includes reduced costs
for personnel compensation and benefits, as well as lower costs
for operation and maintenance.
TABLE 3--ESTIMATED CHANGES TO AUTHORIZATIONS OF APPROPRIATIONS FOR SELECTED PROVISIONS IN H.R. 4435
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------
2015a 2016 2017 2018 2019 2015-2019
----------------------------------------------------------------------------------------------------------------
FORCE STRUCTURE
Active-Duty End Strengths..................... -3,859 -6,381 -7,171 -7,584 -7,789 -32,784
Selected-Reserve End Strengths................ -239 -461 -550 -597 -614 -2,461
Reserve Technicians End Strengths............. -53 -109 -112 -116 -120 -510
Coast Guard Reserve End Strength.............. -12 -27 -33 -37 -37 -146 COMPENSATION AND BENEFITSExpiring Bonuses and Allowances............... 750 469 274 246 123 1,862
Pilot Program to Assist Post-Service 5 25 35 35 0 100
Employment...................................
Civilian Benefits in a Combat Zone Department 0 35 0 0 0 35
of Defenseb.................................. OTHER PROVISIONSIncrementally Fund a San Antonio Class Ship... 800 1,178 0 0 0 1,978
Delay Reorganization of Military Treatment 15 25 40 35 20 135
Facilities...................................
Support of Foreign Military Liaison Officers.. 4 10 10 10 10 44
Mental Health Assessments..................... 6 7 7 7 8 35
Integrated Disability Evaluation System Pilot. 5 15 5 1 1 27
----------------------------------------------------------------------------------------------------------------
Notes: Amounts shown in this table for 2016 through 2019 are not included in amounts that would be specifically
authorized by the bill (and therefore are not reflected in Tables 1 and 2). Rather, those amounts would be
covered by specific authorizations for defense programs in future years.
Numbers may not add up to totals because of rounding.
aAmounts shown in this table for 2015 are included in amounts specifically authorized to be appropriated by the
bill (as reflected in Table 2 and summarized in Table 1).
bThis provision also would increase costs in 2016 for departments and agencies other than DoD by an estimated $8
million. Those costs are included in Table 1 under ``Other Authorizations of Appropriations.''
Selected-Reserve End Strengths. Sections 411 and 412 would
set the end strengths for reserve components, including those
who serve on active duty in support of the reserves. Under this
bill, all six of the reserve components would experience
decreases in end strength: 3,000 fewer reservists for the Army
Reserve, 1,800 fewer for the Navy Reserve, 400 fewer for the
Marine Corps Reserve, 3,300 fewer for the Air Force Reserve,
4,000 fewer for the Army Guard, and 400 fewer for the Air
Guard. The number of full-time reservists who serve on active-
duty in support of the reserves would decline by 972 compared
with current authorized end strengths for 2015. CBO estimates
that implementing those provisions would decrease costs for
salaries and expenses for selected reservists by $2.5 billion
over the 2015-2019 period, assuming appropriations are reduced
by the same amount.
Reserve Technicians End Strengths. Section 413 would set
the minimum end strengths for dual-status military technicians,
who are federal civilian personnel required to maintain
membership in a selected-reserve component as a condition of
their employment. The bill would lower the minimum number of
technicians required by 1,223 relative to the number currently
authorized. CBO estimates that implementing that change would
decrease costs for civilian salaries and expenses by $510
million over the 2015-2019 period.
Coast Guard Reserve End Strength. Section 411 also would
authorize an end strength in 2015 for the Coast Guard Reserve
of 7,000 service members, compared with the 9,000 service
members that are authorized under current law. However, the
number of reservists in the Coast Guard is well below the
authorized level--about 7,800 as of March 2014. Therefore, CBO
estimates that implementing this provision would reduce the
size of the Coast Guard Reserve by about 1,000 members. CBO
estimates that reducing end strength by that amount would
decrease costs by $146 million over the 2015-2019 period,
assuming appropriations are reduced by the same amount.
Compensation and Benefits. H.R. 4435 contains several
provisions that would affect compensation and benefits for
uniformed personnel and civilian employees of DoD. The bill
would specifically authorize regular appropriations of $135
billion for the costs of military pay and allowances in 2015.
For related costs resulting from overseas contingency
operations (primarily in Afghanistan), the bill would authorize
the appropriation of an additional $7 billion for 2015.
Expiring Bonuses and Allowances. Sections 611 through 615
would extend for another year DoD's authority to enter into
agreements to pay certain bonuses and allowances to military
personnel. The authority to enter into such agreements is
currently scheduled to expire on December 31, 2014. Some
bonuses are paid in a lump sum, while others are paid in annual
or monthly installments over a period of obligated service.
Based on DoD's budget submission for fiscal year 2015, CBO
estimates that extending that authority for one year would cost
$1.9 billion over the 2015-2019 period.
Pilot Program to Assist Post-Service Employment. Section
552 would establish a pilot program to help current service
members find a job following separation from military service
in the case of active-duty members, or release from active duty
in the case of part-time reserve members. Under the program,
DoD would work with civilian employment agencies to place
service members in post-service jobs. To encourage employers to
hire members of the military, DoD would pay a portion of the
employment agency's fee for up to 800 hours of work that an
employee hired under this program completed.
The amount of money that the Secretary of Defense could
obligate under the pilot program would be limited to $35
million in any fiscal year during the life of the program,
which would expire on September 30, 2018. CBO estimates that
implementing this pilot program would increase costs by $100
million over the 2015-2019 period. The cost of the program
would be small in the first year, $5 million, because DoD would
need time to establish the program, including writing
regulations and negotiating with employment agencies. The
program would grow in 2016, and CBO expects it would reach full
capacity in 2017.
Civilian Benefits in a Combat Zone. Section 1102 would
extend for one year the authority to grant certain benefits to
federal civilian employees who perform official duty in a
combat zone. Those benefits, which expire under current law on
September 30, 2015, include death gratuities, paid leave and
travel for one trip home, and up to three leave periods per
year for rest and recuperation. Based on information from DoD
and the Office of Personnel Management, CBO estimates that
about 2,300 civilian employees of DoD and 500 employees of
other federal agencies will work in a designated combat zone in
2016 and, under this provision, would receive an average
benefit that would cost about $15,000 a year. Thus, CBO
estimates that in 2016, section 1102 would increase the costs
of civilian employees of DoD by $35 million and of other
federal employees by $8 million.
Other Provisions. A number of other provisions in H.R. 4435
would increase discretionary costs in 2015 and over the 2016-
2019 period.
Incrementally Fund a San Antonio Class Ship. Section 122
would allow the Navy to use incremental funding to enter into a
contract, beginning in fiscal year 2015, for the construction
of one additional San Antonio class amphibious ship (referred
to as LPD-17 class ships). The bill also would authorize the
appropriation of $800 million for 2015 for that purpose.
Currently, nine of the LPD-17 class warships are in service and
two more are nearing the end of construction. Based on
information from the Navy, CBO expects that the Navy would
build the additional ship and estimates that costs would total
about $2 billion over the 2015-2016 period.
Delay Reorganization of Military Treatment Facilities. In
an effort to produce efficiencies and cost savings, DoD is
planning to consolidate or eliminate some underutilized
services offered through certain military treatment facilities.
Based on information from DoD, CBO estimates those changes will
result in savings of about $15 million in 2015, increasing to
about $50 million in annual savings by 2019. Section 714 would
delay those planned changes until various studies are
completed, which CBO estimates would delay any savings by about
three years, increasing costs to DoD by about $135 million over
the 2015-2019 period.
Support of Foreign Military Liaison Officers. Section 1203
would expand DoD's authority to pay for certain expenses of
military liaison officers from foreign militaries. Currently,
DoD is allowed to cover travel, subsistence, and medical
expenses of such officers if they are assigned to U.S. military
commands in connection with a military operation. This
provision would broaden that authority by allowing DoD to
provide such support without the requirement that assignments
be connected with a military operation. Section 1203 also would
limit the number of officers who can receive such support to 60
at any one time, and cap the amount of support per person at
$200,000 annually, adjusted for inflation.
CBO anticipates that as operations in Afghanistan are
curtailed, the number of individuals receiving support pursuant
to the existing authority--currently about 40--would be greatly
reduced. Based on information from DoD, CBO expects that agency
will fully utilize the amended authority, mostly in support of
U.S. military engagements in areas where DoD has a relatively
limited presence. On that basis, CBO estimates that DoD would
provide support to an additional 45 officers a year under this
authority at a cost of $44 million over the 2015-2019 period.
Mental Health Assessments. Section 701 would require DoD to
administer a mental health assessment to deployed personnel
once every six months. Based on current deployment levels, CBO
estimates DoD would need to deploy nearly 20 additional mental
health professionals to conduct those assessments. Based on
information from DoD, CBO estimates the annual cost to deploy
each of those additional personnel would be about $130,000 in
2015 and would increase to about $142,000 in 2019. In addition,
there would be a cost to DoD to replace those personnel in the
continental United States, so that current mental health
caseload demands can be met. CBO estimates DoD would need to
pay for an additional 35,000 hours per year of mental health
services in the continental United States, at a hourly cost of
about $115 in 2015, increasing to about $145 in 2019. In total,
CBO estimates section 701 would cost $35 million over the 2015-
2019 period.
Integrated Disability Evaluation System Pilot. Section 592
would require DoD and the Department of Veterans Affairs (VA)
to operate a three-year pilot program at the Walter Reed
National Military Medical Center to improve the Integrated
Disability Evaluation System (IDES). As part of the pilot, DoD
and VA would be required to modify their information technology
systems to create an interface between their data collection
and tracking systems and also to track the performance of DoD
and VA personnel. Based on information from DoD, CBO estimates
that it would take about three years and cost about $25 million
to make the software modifications required by section 592.
Once the pilot program is up and running (in 2018), CBO
estimates the operating costs would be about $1 million per
year. Based on information from DoD, CBO expects that the
program could be carried out with existing personnel, though
there would be some costs for training, support activities, and
a new working group. In total, CBO estimates that implementing
section 592 would cost about $27 million over the 2015-2019
period.
Direct Spending
Several provisions in H.R. 4435 would affect direct
spending. CBO estimates that those provisions would increase
net direct spending by $1 million over the 2015-2024 period
(see Table 4).
Special Immigrant Visas (SIVs) for Afghan Allies. Section
1218 would amend the Afghan Allies Protection Act of 2009 to
make 1,080 SIVs available in fiscal year 2015 to certain
Afghans. Those SIVs could be issued through the end of fiscal
year 2016. Afghans eligible under this provision are those who
were employed by the U.S. government at some point since 2001
and are experiencing an ongoing serious threat as a
consequence. (Additional SIVs, not subject to limitation, would
be available to certain relatives of those workers.)
CBO estimates that nearly 2,500 people would receive
immigrant visas under section 1218. Because special immigrants
(including their spouses and children) are eligible for public
benefits to the same extent as refugees, they could receive
subsidies through health insurance exchanges and benefits from
Medicaid, nutrition programs, and the Supplemental Security
Income program, if otherwise eligible, upon arrival in the
United States. On that basis, CBO estimates that direct
spending for those benefits would increase by $70 million over
the 2015-2024 period.
National Defense Stockpile. Enacting the bill would
increase receipts from the sale of material in the National
Defense Stockpile. Section 1411 would increase by $50 million
the target contained in the National Defense Authorization Act
for Fiscal Year 1999 (Public Law 105-261, as most recently
amended by Public Law 110-417) for continued sales of tungsten
from the stockpile, and extend those sales for an additional
three years through fiscal year 2019.
In addition, Section 1411 would increase by $20 million the
target contained in the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65, as most recently amended
by Public Law 112-81) for continued sales of chromium
ferroalloy from the stockpile, and extend those sales for an
additional three years through fiscal year 2019. CBO estimates
that there would be sufficient quantities of tungsten and
chromium in the stockpile so that sales could generate
additional receipts of $2 million in 2015 and $70 million over
the 2015-2018 period.
TABLE 4--ESTIMATED EFFECTS OF H.R. 4435 ON DIRECT SPENDING
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
Special Immigrant Visas for Afghan Allies:
Estimated Budget Authority.................... 1 10 9 8 7 7 7 7 7 7 35 70
Estimated Outlays............................. 1 10 9 8 7 7 7 7 7 7 35 70
National Defense Stockpile:
Estimated Budget Authority.................... -2 -40 -20 -8 0 0 0 0 0 0 -70 -70
Estimated Outlays............................. -2 -40 -20 -8 0 0 0 0 0 0 -70 -70
Purple Heart Awards:
Estimated Budget Authority.................... * * * * * * * * * * * 1
Estimated Outlays............................. * * * * * * * * * * * 1
Total Changes in Direct Spending:
Estimated Budget Authority................ -1 -30 -11 * 7 7 7 7 7 7 -35 1
Estimated Outlays......................... -1 -30 -11 * 7 7 7 7 7 7 -35 1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
Purple Heart Awards. Section 571 would require the
Secretary of Defense to award the Purple Heart to members
killed or wounded in attacks motivated or inspired by foreign
terrorist organizations. This policy would be retroactive to
September 11, 2001. In instances when a wounded member retires
for medical reasons, the Purple Heart entitles that member to
Combat-Related Special Compensation (CRSC), which is paid from
the Military Retirement Trust Fund. Based on a review of the
number of military personnel wounded during the November 2009
shooting at Ft. Hood and other incidents, CBO estimates that
about 10 former military members would receive CRSC because of
this provision, and that the average monthly payment would be
about $400 per person. After factoring in retroactive payments
and cost-of-living adjustments, CBO estimates that section 571
would increase direct spending by about $1 million over the
2015-2024 period.
Other Provisions. Other provisions in the bill would have
insignificant effects on direct spending or revenues, generally
because very few people would be affected.
Sections 501 and 502 would modify rules related to
the selective early retirement of military personnel. In
certain circumstances, those changes might affect the number of
former members drawing retired pay in a given year.
Section 521 would establish certain rules for
judicial review of military personnel decisions relating to the
correction of military records. CBO expects that enactment of
this section would have a small effect on the payment of
mandatory benefits in the event of corrections, but it is
unclear whether the net effect would be to increase or decrease
those payments.
Section 702 would, in certain circumstances, allow
former service members and their dependents to receive free
food and beverages at military treatment facilities. Spending
at such facilities for some of those former members is
classified in the budget as mandatory.
Section 725 would require DoD to establish a pilot
program to examine medication therapy management.
Pharmaceutical spending for some of the beneficiaries covered
by the pilot program is classified in the budget as mandatory.
Section 815 would prohibit the use of reverse
auctions for certain contracts. That prohibition would increase
by an insignificant amount the administrative costs for certain
agencies, some of which are funded from mandatory accounts.
Section 1042 would allow DoD to accept the
voluntary services of law students and those training to be
paralegals. Because those volunteers would be eligible for
mandatory compensation if they are injured while volunteering,
CBO estimates that section 1042 would have an insignificant
effect on direct spending.
Section 2861 would authorize the Secretary of the
Navy to establish a memorial to the victims of the shootings
that occurred on September 16, 2013, at the Washington Navy
Yard. The Secretary could accept and spend donations to
establish and maintain the memorial. Such contributions are
classified as offsetting receipts.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
Enacting H.R. 4435 would not affect revenues.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4435 AS REPORTED BY THE HOUSE COMMITTEE ON ARMED SERVICES ON MAY 13, 2014
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By fiscal year, in millions of dollars--
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-2019 2014-2024
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NET INCREASE OR DECREASE (-) IN THE DEFICITStatutory Pay-As-You-Go Effects........... 0 -1 -30 -11 0 7 7 7 7 7 7 -35 1
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Estimated impact on state, local, and tribal governments:
Section 547 would preempt state laws governing child custody if
those laws provide less protection to the rights of a parent
who is a service member than those provided under the bill.
That preemption would be an intergovernmental mandate as
defined in UMRA. Although the mandate would limit the
application of state laws, it would impose no duty on states
that would result in additional spending. Therefore, CBO
estimates that the cost of the mandate would fall well below
the threshold established in UMRA for intergovernmental
mandates ($76 million in 2014, adjusted annually for
inflation).
Estimated impact on the private sector: Section 1073 of the
bill contains a private-sector mandate because it would impose
a time limit on filing claims for losses covered by the Federal
Aviation Administration's (FAA's) War Risk Insurance Program.
Currently there is no statutorily required time frame. The bill
would require most claims against the United States to be filed
within two years of the loss. However, claimants who do not
have a contractual relationship with the insured party would be
allowed six years to file a claim. Information from the FAA
indicates that in the past almost all cases have been filed
soon after the loss occurred, in accordance with FAA
requirements for insurance policies. Therefore, CBO estimates
that the costs of this mandate would be small and would fall
below the private-sector threshold established in UMRA ($152
million in 2014, adjusted annually for inflation).
Estimate prepared by: Federal Costs: Defense
Authorizations--Kent Christensen, Immigrant Visas--David
Rafferty, Military and Civilian Personnel--Dawn Regan, Military
Construction--David Newman, Military Retirement and Health
Care--Matthew Schmit, Naval Vessels and National Defense
Stockpile--Raymond J. Hall, Operation and Maintenance--Jason
Wheelock, Impact on State, Local, and Tribal Governments:
J'nell L. Blanco, Impact on the Private Sector: Elizabeth Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.