An FY10 Defense Appropriations Conference Report (H.R. 3326) is slated for consideration on the House floor next week, as lawmakers scramble to complete all 12 regular appropriations bills before a continuing resolution—legislation currently funding most government agencies at FY09 levels—expires on December 18.

Ironically, the defense legislation's "must-pass" nature may complicate its prospects, as House Democratic leadership is planning to use H.R. 3326 as a vehicle for a slate of economic recovery initiatives, along with an increase to the nation's $12.104 trillion debt ceiling, a limit that Treasury says it could reach by mid- or late December. These provisions have the potential of imposing significant hurdles to the bill's timeline for passage, especially in the Senate, where Republicans and a handful of fiscally conservative Democrats are likely to object.

However, significant appropriations progress was made on Thursday when the House, by a vote of 221-201, adopted a $446.8 billion FY10 omnibus package (H.R. 3288), a compilation of six of the seven remaining regular appropriations bills, including: Commerce-Justice-Science (H.R. 2847), Financial Services (H.R. 3170), Labor-HHS-Education (H.R. 3293), Military Construction-VA (H.R. 3082), State-Foreign Operations (H.R. 3081) and Transportation-HUD (H.R. 3288). The Senate is expected to vote on final passage of the omnibus package on Monday, at the latest.

Military Construction Sees Three Percent Funding Increase In FY10

The House-passed omnibus package includes a $134.6 billion Military Construction-VA bill that tallies in at $7.8 billion above FY09 levels and $1.1 billion above the President's request. Below are some of the bill's key spending components:

  • Military Construction. $23.3 billion for military construction and family housing ($712 million increase over regular FY09 appropriations and $334 million above the President's request).
  • Base Realignment And Closure (BRAC). $8 billion to support ongoing BRAC operations ($1.5 billion below FY09 levels and $76 million above the President's request).
  • Afghanistan Construction. $1.4 billion for construction projects aimed at supporting operations and previously scheduled troop deployments in Afghanistan (matches the President's request). Additional funding to support operations related to the President's new Afghanistan strategy will be provided in the FY10 emergency war supplemental appropriations bill, which will likely be considered next spring.
  • VA Major Construction. $1.2 billion for major construction modernization projects, alteration and VA facility improvements ($271 million above FY09 levels and equal to the President's request).
  • VA Minor Construction. $703 million for construction projects under $10 million ($39 million below FY09 levels and $103 million above the President's request).
  • Veterans Health Programs. For the first time, the measure provides $48.2 billion in advance appropriations for VA health programs in FY 2011 in order to avoid funding disruptions caused by delays in the annual appropriations process.

Pentagon Readies Next Year's Budget

As Congress continues its work on FY10 military spending bills, the Pentagon is actively preparing its FY11 budget. According to DoD officials, Secretary of Defense Robert Gates will meet with leaders of the military services next week regarding appeals to the President's FY11 budget proposal—which the DoD is aiming to complete by December 22.

The FY11 DoD budget request will largely be driven by the Pentagon's ongoing Quadrennial Defense Review (QDR)—an assessment that Deputy Defense Secretary William J. Lynn III said recently "comes at a time when the nature of war is changing in ways that we need to adapt to...and seeks to identify these changes and the challenges they present to our security." Unlike previous QDRs, the upcoming review will place heavier emphasis on non-conventional national security threats, such as those in Iraq and Afghanistan, leading many observers to predict that additional cuts to major defense programs in FY11 are imminent. Recent news reports have cited leaks on Capitol Hill that the QDR will likely lead to decreases in Navy carrier groups and Joint Strike Fighter Aircraft, along with the elimination of the Marine Expeditionary Fighting Vehicle.

Quote Of The Week

"The president's decision rapidly resources our strategy, recognizing that the next 18 months will likely be decisive, and ultimately enable success. I fully support the president's decision."

Gen. Stanley McChrystal, the top U.S. and NATO commander in Afghanistan, during testimony to the House and Senate Armed Services Committees this week regarding the President's strategy in Afghanistan.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.