H.R. 1363

Department of Defense and Further Additional Continuing Appropriations Act, 2011

Sponsor	Rep. Rogers, Hal
Committee	Appropriations
Date	April 7, 2011 (112th Congress, 1st Session)
Staff Contact	Andy Koenig

On Thursday, April 07, 2011, the House is scheduled to consider H.R. 1363, the Department of Defense and Further Additional Continuing Appropriations Act, 2011, under a rule.  The rule provides for one hour of debate, equally divided between the chairman and ranking member of the House Appropriations Committee.  H.R. 1363 was introduced by Rep. Harold Rogers (R-KY) on April 4, 2011, and was referred to the House Committee on Appropriations, which took no official action.

H.R. 1363 would provide $515.76 billion in discretionary funding for the Department of Defense (DoD) through October 1, 2011, the remainder of FY 2011.  According to Congressional Budget Office analysis of H.R. 1363 as posted on the Rules Committee website on April 4, 2011, the bill would increase DoD funding by $7 billion or 1.4 percent over current levels.  The level of discretionary funding for the DoD is the same amount provided by H.R. 1.  In addition, the bill would provide appropriations for all discretionary government operations for one week, through April 15, 2011. 

Under the legislation, discretionary funding for non-Defense programs would be reduced by $13.1 billion (see the cost analysis section at the bottom of this document for further information).  The net effect of the bill—including the increase for DoD and the reductions for other discretionary spending—would be to reduce spending by $6.1 billion from current spending levels.  The bill would provide a total of $1.071 trillion in discretionary budget authority for FY 2011.  Presently, government operations are being temporarily funded at $1.077 trillion annually under H.J. Res. 48, a three week Continuing Resolution which the House passed on March 15, 2011, and will expire on April 8, 2011.

In addition to providing DoD funding for the remainder of FY 2011 and additional appropriated funding for one week, the bill includes a number of policy provisions.  Specifically, the bill would prevent Guantanamo Bay detainees from being transferred into the U.S. for any purpose and prevent both federal and local funds from being used to provide abortions in the District of Columbia.

 

H.R. 1363 Discretionary Budget Authority Compared to Current Levels and Other CRs
(in millions of dollars)
Funding Under FY 2010 CR (Expired March 4)	Current Three-Week CR                              (H.J.Res. 48)	H.R. 1 Passed by the House	H.R. 1363	CR Savings from Current Spending Levels
1,087,465	1,077,447	1,025,976	1,071,341	6,106

Source:  Congressional Budget Office

 

Discretionary Budget Authority

Excluding funding increases for the full year DoD appropriation, H.R. 1363 would reduce spending levels for discretionary government programs by $13.1 billion or 2.3 percent from current levels.  When combined with the previous two short-term CRs, (H.J. Res. 44 and H.J. Res. 48) total funding for discretionary appropriations would be cut by a total of $16.1 billion below the level appropriated by the December 2010 CR which expired on March 4, 2011.  Excluding spending increases for DoD, total discretionary spending would be reduced by $23.1 billion below the December 2010 CR.

 

H.R. 1363  Compared to Current Funding
	Current Funding Levels Under H.J. Res. 48	Funding Level Under One Week CR	Funding Changes Under One Week CR (- = Spending Increase)	Percent Change (- = Spending Increase)
Agriculture	22,773	21,482	1,291	5.67%
CJS	54,150	53,720	430	0.79%
Energy and Water	32,878	32,248	630	1.92%
Financial Services	22,181	21,591	590	2.66%
Homeland Security	42,185	40,784	1,401	3.32%
Interior	31,565	30,292	1,273	4.03%
Labor/HHS/Education	166,904	164,306	2,598	1.56%
Leg Branch	4,652	4,652	0	0.00%
Mil-Con/VA	75,649	74,669	980	1.30%
State/Foreign Ops	50,757	49,923	834	1.64%
THUD	65,061	61,910	3,151	4.84%
Total Excluding DoD	568,755	555,577	13,178	2.32%
Including Defense	508,692	515,764	7,072	-1.39%
Total With DoD	1,077,447	1,071,341	6,106	0.57%
1,087,465	1,077,447	1,025,976	1,071,341	6,106

Source:  Congressional Budget Office

 

Defense

According to the House Appropriations Committee, H.R. 1363 would provide $515.8 billion in base funding for the Department of Defense.  The bill would also provide a total of $157.8 billion for overseas contingency operations to fund our missions abroad.   Also included is $126.4 billion for military personnel, providing for 1,432,400 active duty and 846,200 reserve troops.  The bill would provide a total of $165.6 billion for operations and maintenance, $102.1 billion for procurement, $75.0 billion for research and development, and $31.4 billion for Defense health programs.

This legislation would also eliminate all Defense earmark account funding, a cut of $4.2 billion from last year’s level.

 

Non-Defense Program and Account Reductions

According to information supplied by the House Appropriations Committee, H.R. 1363 would include the following program reductions:

Agriculture:  H.R. 1363 includes approximately $1.4 billion in cuts to Agriculture programs compared to last year’s level. Some of these cuts include approximately $43 million in Department of Agriculture administrative costs including rent, facilities, and operations, $137 million from rural development and conservation accounts, $350 million from a dairy industry program that was intended to be one-time funds, and $39 million in unused broadband loan program funding. 

Commerce/Science/Justice:  The CR cuts $430 million for accounts within the Commerce/Science/Justice section. Some of the cuts include $149 million from federal law enforcement construction accounts, $22 million from the Census Bureau, $139 million from NASA construction projects and to continue the phase out of the Space Shuttle program, and $20 million from the National Institute of Standards and Technology (NIST) construction grants.

Energy and Water:  The Energy and Water section of the CR cuts a total of $632 million.  The legislation includes cuts that were included in both the House and Senate budget proposals, and/or the White House budget requests totaling $287 from nine programs – including $192 million from the Department of Energy’s environmental cleanup programs. In addition, $344 million is rescinded from unspent prior year balances or from programs which have been cancelled. 

Military Construction/Veterans Affairs:  The CR includes rescissions totaling $629.5 million from military construction accounts.  These rescissions are the result of construction costs decreasing from original estimates due to a competitive bidding environment. In addition, funding for information technology programs at the Department of Veterans Affairs is reduced by $160 million to reflect cancellation of the FLITE project, $147 million is cut to reflect reduced personnel costs in fiscal year 2010, and $43 million is cut from VA construction programs to match the fiscal year 2011 budget request.

Financial Services:  The CR cuts a total of $590 million from Financial Services programs. Approximately $417 million is cut from various Treasury Department programs including $400 million from the Treasury Forfeiture Fund (saves $310 million compared to FY 10). In addition, $53 million is cut from accounts within the Executive Office of the President, $17 million is cut from Federal Judiciary accounts, $42 million is cut from programs within the District of Columbia, and a total of approximately $61 million is cut from various other accounts. 

Homeland Security:  Department of Homeland Security (DHS) programs are reduced by $1.4 billion. Funding is reduced from DHS programs the President proposed to cut in FY 2011, and from programs that are behind schedule, failing to execute their budgets, and that are not measuring their effectiveness.  Specific reductions include $495 million from FEMA's first responder grants, $112 million from IT programs, and multiple reductions to administrative expenses. Security operations are funded at current levels and DHS is allowed flexibility to transfer funds as necessary to meet emergency needs, and critical operational requirements, to avoid furloughs or reductions in force, or to provide funding for critical programs and activities required by law.   

Interior:  Funding cuts in the Interior portion of the CR total $1.27 billion, and reflect several Administration proposed cuts contained in the President’s budget requests, as well as cuts to project-based grant, construction, and land acquisition accounts which can absorb funding reductions due to the fact that new projects have not been started for fiscal year 2011. Some of the reductions in the Interior section include $150 million in unobligated FY 2010 Wildland Fire Suppression funding, $71.5 million from the Land and Water Conservation Fund, $80 million from the Fish and Wildlife Service, and $700 million from the Clean Water and Drinking Water Revolving Funds.

Labor/Health and Human Services:  The CR cuts $2.5 billion from Labor, Health and Human Services programs, many of which were also included in the President’s budget requests, in the Senate’s CR proposal, or in the Office of Management and Budget’s (OMB) CR proposal. These cuts include $156 million from Centers for Disease Control Immunization and Respiratory Disease funding, $185 million in hospital preparedness grants, $119 million in “Teaching American History” program funding, $390 million from the LIHEAP contingency fund, and $300 million in excess information technology funding at the Social Security Administration.

State/Foreign Operations:  The State and Foreign Operations portion of the CR includes a total of $832 million in spending reductions. Some of these cuts include $212 million from international financial institutions, $466 million from various foreign assistance accounts (including Development Assistance and the Economic Support Fund), and $237 million from United Nations and peacekeeping activities that the US can offset through existing credits at the UN and by scaling back voluntary payments. In addition, the CR funds the full $3 billion foreign military financing commitment for the US-Israel Memorandum of Understanding for fiscal year 2011.

Transportation/ Housing and Urban Development:  The CR cuts Transportation and HUD programs by nearly $2 billion. Of this, $1.5 billion is cut from High Speed Rail Corridors and Intercity Passenger Rail Service Capital Assistance through the elimination of excessive grant funds. In addition, Capital Investment Grants are cut by $280 million, the Public Housing Operating fund is cut by $149 million, and the University Community Fund is eliminated, saving $25 million.

The following is a summary of account reductions by subcommittee as scored by the Congressional Budget Office based on H.R. 1363 as posted on the Rules Committee website on April 4, 2011.  The accounts that would be adjusted by H.R. 1363 are listed.

Agriculture	Current Funding	H.R. 1363	Savings
Departmental Management	446	404	42
National Agricultural Statistics Service	162	152	10
National Institute of Food and Agriculture	1,217	1,182	35
Animal and Plant Health Inspection Service	886	838	48
Farm Service Agency	2,088	1,714	374
Natural Resources Conservation Service	368	327	41
Rural Development	202	187	15
Rural Utilities Service	598	541	57
Rural Housing Service	1,728	1,705	23
Rural Business Cooperative Service	142	84	58
Foreign Agricultural Service	2,083	1,838	245
Food and Nutrition Service	7,699	7,356	343
Total - Agriculture Accounts Subject to Reductions	17,619	16,328	1,291
Commerce, Justice, Science	Current Funding	H.R. 1363	Savings
Bureau of the Census (rescission)	-517	-539	22
National Institute of Standards and Technology	804	784	20
DOJ General Administration	2,304	2,224	80
Legal Activities and U.S. Marshals	3,627	3,617	10
Federal Bureau of Investigation	7,736	7,603	133
Bureau of Alcohol, Tobacco, Firearms, and Explosives	1,119	1,113	6
Office of Justice Programs (rescission)	-1,848	-1,868	20
National Aeronautics and Space Administration	18,661	18,522	139
Total - Energy and Water  (Accounts Subject to Reductions)	31,886	31,456	430
Energy and Water Development	Current Funding	H.R. 1363	Savings
National Nuclear Security Administration	10,495	10,482	13
Environmental Defense Activities	6,151	6,002	149
Energy Programs	9,683	9,385	298
Departmental Administration	221	209	12
Corps of Engineers	4,930	4,788	142
Denali Commission	12	-4	16
Total - Commerce, Justice, Science (Accounts Subject to Reductions)	31,492	30,862	630
Financial Services and General Government	Current Funding	H.R. 1363	Savings
Supreme Court of the United States	87	80	7
Courts of Appeals, District Courts	6,179	6,169	10
National Institute of Standards and Technology	4	3	1
Department of Treasury Departmental Offices	687	291	396
Financial Management Service	244	233	11
Alcohol and Tobacco Tax and Trade Bureau	103	100	3
Bureau of the Public Debt	186	179	7
GSA Real Property Activities	-1,280	-1,296	16
GSA General Activities	266	247	19
Office of Personnel Management	243	239	4
Executive Office of the President for Unanticipated Needs	39	1	38
Federal Drug Control Programs	396	381	15
District of Columbia Courts	316	300	16
District of Columbia General Payments	184	158	26
National Archives and Records Administration	442	421	21
Total - Financial Services (Accounts Subject to Reductions)	8096	7506	590
Homeland Security	Current Funding	H.R. 1363	Savings
Departmental Offices	0	-23	23
Departmental Management and Operations	1,135	1,108	27
Citizenship and Immigration Services	224	216	8
United States Secret Service	1,483	1,482	1
Transportation Security Administration	5,257	5,225	32
Federal Law Enforcement Training Center	282	273	9
Security, Enforcement, and Investigations	0	-11	11
Immigration and Customs Enforcement	5,437	5,408	29
Customs and Border Protection	9,975	9,522	453
United States Coast Guard	8,516	8,498	18
National Protection and Programs Directorate	1,425	1,347	78
Federal Emergency Management Agency	6,987	6,430	557
Science and Technology	958	819	139
Domestic Nuclear Detection Office	376	360	16
Total - Homeland Security (Accounts Subject to Reductions)	42055	40654	1401
Interior and the Environment	Current Funding	H.R. 1363	Savings
Forest Service	5,052	4,896	156
Bureau of Land Management	1,093	1,055	38
United States Geological Survey	1,094	1,076	18
United States Fish and Wildlife Service	1,603	1,522	81
National Park Service	2,619	2,620	-1
Bureau of Indian Affairs	2,617	2,613	4
Interior Departmental Offices	77	75	2
Interior Insular Affairs	72	54	18
Interior Department-Wide Programs	958	933	25
Environmental Protection Agency	10,061	9,150	911
Commission of Fine Arts	12	2	10
Smithsonian Institution	980	969	11
Total - Interior and the Environment (Accounts Subject to Reductions)	26,238	24,965	1,273
Labor-HHS-Education	Current Funding	H.R. 1363	Savings
Health Resources and Services Administration	7,010	6,993	17
Centers for Disease Control and Prevention	6,369	6,044	325
Administration for Children and Families	17,314	16,900	414
HHS Departmental Management	1,303	368	935
Employment and Training Administration	10,703	10,684	19
Labor Departmental Management	479	475	4
Social Security Administration	9,057	8,757	300
Office of Elementary and Secondary Education	22,224	21,895	329
Office of Innovation and Improvement	1,160	1,019	141
Office of Safe and Drug-Free Schools	361	341	20
Office of Special Education and Rehabilitative Services	13,198	13,173	25
Office of Vocational and Adult Education	1,928	1,898	30
Office of Postsecondary Education	2,383	2,351	32
Railroad Retirement Board	179	172	7
Total - Labor-HHS-Education (Accounts Subject to Reductions)	93,668	91,070	2,598
Military Construction and Veterans Affairs	Current Funding	H.R. 1363	Savings
Military Construction	15,921	15,291	630
Departmental Administration	8,255	7,905	350
Total - Mil Con / VA (Accounts Subject to Reductions)	24,176	23,196	980
State and Foreign Operations	Current Funding	H.R. 1363	Savings
Administration of Foreign Affairs	11,398	11,284	114
International Organizations and Conferences	3,808	3,640	168
Other	11,446	11,439	7
Millennium Challenge Corporation	1,105	900	205
International Security Assistance	13,381	13,512	-131
Multilateral Assistance	2,524	2,268	256
Agency for International Development	5,822	5,763	59
Export-Import Bank of the United States	3	-147	150
United States Institute of Peace	49	43	6
Total - State and Foreign Operations (Accounts Subject to Reductions)	49,536	48,702	834
Transportation and HUD	Current Funding	H.R. 1363	Savings
Office of the Secretary	890	884	6
Federal Aviation Administration	12,477	12,465	12
Federal Railroad Administration	4,304	2,801	1503
Federal Transit Administration	2,388	2,106	282
Public and Indian Housing Programs	34,932	34,783	149
Community Planning and Development	8,368	8,343	25
Housing Programs	-728	-1,902	1174
Total - State and Foreign Operations (Accounts Subject to Reductions)	62631	59480	3151

 

On February 19, 2011, the House approved H.R. 1, a bill to provide discretionary funding for government functions for the duration of FY 2011, by a vote of 235 - 189.  As passed, H.R. 1 would have saved $61.5 billion from FY 2010 spending levels as provided under a continuing resolution (CR) which expired on March 4, 2011.  Since the passage of H.R. 1, two additional short-term CRs were approved by Congress and signed into law in order to provide temporary funding for discretionary government operations.  The first short-term bill was a two-week CR, H.J.Res. 44, which cut $4 billion from FY 2010 spending levels and eliminated funding for eight government programs.  The second short-term CR, H.J.Res. 48, provided three weeks of discretionary funding and cut an additional $6 billion from FY 2010 levels while eliminating or reducing funding for 25 government programs.  Funding under H.J. Res. 48 is set to expire on April 8, 2011.

According to the Congressional Budget Office (CBO), the bill would provide $1.071 trillion in annual discretionary budget authority and reduce current spending levels by $6.1 billion.  The bill would increase DoD funding by $7 billion or 1.4 percent over current levels.  Under the legislation, discretionary funding for non-Defense programs would be cut by $13.1 billion. 

Note: In February, the Federal Housing Authority (FHA) announced an administrative premium increase of 25 basis points for single-family mortgages insured on or after April 28, 2011.  CBO has estimated that this will result in an additional $1.174 billion in receipts for the FHA Mutual Mortgage Insurance program in FY 2011; the updated receipt estimate has been incorporated into the budget authority and outlay estimates in CBO’s score for H.R. 1363.  Excluding this scoring adjustment, the provisions of H.R. 1363 would reduce spending for non-defense appropriations by $12 billion.