House Report 114-577 - DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2017

[House Report 114-577]
[From the U.S. Government Publishing Office]

114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-577

_______________________________________________________________________

DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2017

----------

R E P O R T

of the

COMMITTEE ON APPROPRIATIONS

together with

ADDITIONAL VIEWS

[TO ACCOMPANY H.R. 5293]

May 19, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2017

114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-577

_______________________________________________________________________

DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2017

__________

R E P O R T

of the

COMMITTEE ON APPROPRIATIONS

together with

ADDITIONAL VIEWS

[TO ACCOMPANY H.R. 5293]

May 19, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

____________________

U.S. GOVERNMENT PUBLISHING OFFICE

20-161 PDF WASHINGTON : 2016

C O N T E N T S

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Page
Bill Totals...................................................... 1
Committee Budget Review Process.................................. 3
Introduction..................................................... 3
Definition of Program, Project, and Activity..................... 4
Funding Increases................................................ 4
Committee Recommendations by Major Category...................... 4
Active, Reserve, and National Guard Military Personnel......... 4
Operation and Maintenance...................................... 5
Procurement.................................................... 5
Research, Development, Test and Evaluation..................... 6
Defense Health Program......................................... 7
Overseas Contingency Operations/Global War on Terrorism
Requirements................................................... 7
Classified Programs.............................................. 7
Overseas Contingency Operations/Global War on Terrorism.......... 7
Countering Russian Aggression in the Arctic...................... 9
Readiness........................................................ 9
Cost of Nuclear Modernization.................................... 10
Israeli Missile Defense Programs................................. 10
Recognition of Women's Service in the Armed Forces............... 11
Cyberspace Operations............................................ 11
TITLE I. MILITARY PERSONNEL...................................... 15
Military Personnel Overview.................................... 17
Summary of End Strength...................................... 17
Overall Active End Strength.................................. 17
Overall Selected Reserve End Strength........................ 17
Full-Time Support Strengths.................................. 18
Reprogramming Guidance for Military Personnel Accounts....... 19
Military Personnel Special Interest Items.................... 19
Alternative Learning for Military Dependents................. 19
Maternity Care............................................... 20
Suicide Prevention........................................... 20
Minority Outreach and Officer Accessions..................... 20
Cultural Sensitivity Training................................ 20
Foreign Language Training.................................... 21
Military Personnel, Army....................................... 21
Military Personnel, Navy....................................... 25
Military Personnel, Marine Corps............................... 29
Military Personnel, Air Force.................................. 33
Reserve Personnel, Army........................................ 37
Reserve Personnel, Navy........................................ 40
Reserve Personnel, Marine Corps................................ 43
Reserve Personnel, Air Force................................... 46
National Guard Personnel, Army................................. 49
National Guard Personnel, Air Force............................ 52
TITLE II. OPERATION AND MAINTENANCE.............................. 55
Reprogramming Guidance for Operation and Maintenance Accounts 57
Operation and Maintenance Special Interest Items............. 58
Operation and Maintenance Military Intelligence Program
Budget Justification Material.............................. 58
Military Uniforms............................................ 59
Cyberspace Operations........................................ 59
Army, Army National Guard, and Army Reserve Cyberspace
Operations................................................. 59
Information Technology Workforce Certification............... 61
Cloud Computing.............................................. 61
Quality of Life Programs..................................... 61
African Americans Buried at the Normandy American Cemetery... 62
Operation and Maintenance, Army................................ 62
Depot Maintenance--Productivity Enhancement Program.......... 68
Operation and Maintenance, Navy................................ 68
Readiness Cost Assessment Tool............................... 75
Expeditionary Medical Facilities............................. 75
Operation and Maintenance, Marine Corps........................ 75
Townsend Bombing Range....................................... 79
Operation and Maintenance, Air Force........................... 79
Air Education and Training Command Facilities................ 84
Offutt Air Force Base........................................ 84
Operation and Maintenance, Defense-Wide........................ 84
Background Investigation Systems............................. 89
Security Clearance Determinations............................ 89
Base Security and Access Control Systems..................... 89
Performance-Based Logistics.................................. 90
Meals Ready-To-Eat War Reserve............................... 90
Defense Logistics Agency and the Federal Prison Industry
Mission.................................................... 90
Improving Asset Tracking and In-Transit Visibility........... 90
Department of Defense Education Activity..................... 91
Public Schools on Department of Defense Installations........ 91
Pilot Program to Assist Members of the Armed Forces.......... 91
Social Media Analytical Cell................................. 92
Child Abuse and Neglect...................................... 92
Operation and Maintenance, Army Reserve........................ 92
Operation and Maintenance, Navy Reserve........................ 95
Operation and Maintenance, Marine Corps Reserve................ 98
Operation and Maintenance, Air Force Reserve................... 101
Air Force Reserve Specialized Missions....................... 104
Operation and Maintenance, Army National Guard................. 104
Operation and Maintenance, Air National Guard.................. 107
United States Court of Appeals for the Armed Forces............ 110
Environmental Restoration, Army................................ 110
Environmental Restoration, Navy................................ 110
Vieques and Culebra Environmental Restoration................ 110
Environmental Restoration, Air Force........................... 110
Environmental Restoration, Defense-Wide........................ 111
Environmental Restoration, Formerly Used Defense Sites......... 111
Overseas Humanitarian, Disaster, and Civic Aid................. 111
Cooperative Threat Reduction Account........................... 111
TITLE III. PROCUREMENT........................................... 113
Reprogramming Guidance for Acquisition Accounts.............. 115
Procurement Special Interest Items........................... 115
Funding Increases............................................ 115
Classified Annex............................................. 115
Aircraft Procurement, Army..................................... 115
Missile Procurement, Army...................................... 120
Procurement of Weapons and Tracked Combat Vehicles, Army....... 123
Procurement of Ammunition, Army................................ 127
Ammunition Production Base Support........................... 130
Other Procurement, Army........................................ 130
Combat Support Hospital Infrastructure....................... 139
Tactical Auditory Protection Systems......................... 139
Aircraft Procurement, Navy..................................... 139
Navy Reserve Combat Aircraft................................. 146
Weapons Procurement, Navy...................................... 146
Procurement of Ammunition, Navy and Marine Corps............... 150
Improved Munitions on Naval Surface Combatants............... 153
Shipbuilding and Conversion, Navy.............................. 153
Cruiser Modernization........................................ 156
Other Procurement, Navy........................................ 156
Procurement, Marine Corps...................................... 167
Aircraft Procurement, Air Force................................ 173
MQ-9 Fleet Size.............................................. 179
Missile Procurement, Air Force................................. 179
Space Procurement, Air Force................................... 182
Procurement of Ammunition, Air Force........................... 185
Other Procurement, Air Force................................... 188
Procurement, Defense-Wide...................................... 193
SM-3 Block IB and IIA Inventories............................ 198
Defense Production Act......................................... 198
Domestic Supply of Beryllium................................. 198
TITLE IV. RESEARCH, DEVELOPMENT, TEST AND EVALUATION............. 199
Reprogramming Guidance for Acquisition Accounts.............. 201
Research, Development, Test and Evaluation Special Interest
Items...................................................... 201
Funding Increases............................................ 201
Classified Annex............................................. 201
Joint Strike Fighter Follow-On Development................... 201
Joint Strike Fighter Autonomic Logistics Information System.. 202
Joint Strike Fighter Test Aircraft........................... 202
Research, Development, Test and Evaluation, Army............... 203
Warfighter Lethality......................................... 215
Technology Advancement and Retention Center.................. 215
Army Net Zero Industrial Base Technology Program............. 215
Environmental Control Units.................................. 215
Advanced Lightweight Multifunctional Transparent Armor....... 216
Multi-Role Armament Systems.................................. 216
Access to Contested Areas.................................... 216
Subterranean and Dense Urban Complex Environment............. 216
Advanced Energetics.......................................... 216
Directed Energy Armament Systems............................. 217
Improved Turbine Engine Program.............................. 217
Active Response to Underbody Explosions...................... 217
Ballistic Resistant Adaptive Seating System.................. 217
Technologies to Delay Ripening............................... 217
Materials and Metals Processing Science and Engineering...... 218
Lightweight Combat Vehicle Components........................ 218
Silicon Carbide Power Electronics............................ 218
Protected Satellite Communications Capability................ 218
Advanced Multi-Purpose Vehicle............................... 219
Science and Technology Reinvention Laboratories.............. 219
Research, Development, Test and Evaluation, Navy............... 219
Condition-Based Maintenance for Navy Ships................... 235
Navy Unmanned Aerial Vehicle Development..................... 235
Marine Corps Performance and Resiliency Program.............. 235
Coastal Environmental Research............................... 235
Active Protection Systems for Marine Corps Vehicles.......... 235
Research, Development, Test and Evaluation, Air Force.......... 236
Joint Surveillance Target Attack Radar System
Recapitalization........................................... 249
Presidential Aircraft Replacement............................ 249
Improved Global Positioning System Receivers................. 249
Space Based Infrared System.................................. 250
Satellite Communications..................................... 250
Weather Satellite Follow-On.................................. 250
Antenna Research............................................. 251
Research, Development, Test and Evaluation, Defense-Wide....... 251
Manufacturing Innovation Institute for High Temperature
Superconductors............................................ 263
United States-Israeli Anti-Tunneling Technology.............. 263
National Security Education Program.......................... 263
Access to Trusted Microelectronics........................... 263
High Energy Lasers........................................... 264
STEM Improvement within Historically Black Colleges and
Universities and Minority Serving Institutions............. 264
Operational Test and Evaluation, Defense....................... 264
TITLE V. REVOLVING AND MANAGEMENT FUNDS.......................... 267
Defense Working Capital Funds.................................. 267
TITLE VI. OTHER DEPARTMENT OF DEFENSE PROGRAMS................... 269
Defense Health Program......................................... 269
Reprogramming Guidance for the Defense Health Program........ 273
Carryover.................................................... 273
Peer-Reviewed Cancer Research Programs....................... 273
Peer-Reviewed Breast Cancer Research Program................. 274
Metastatic Cancer Research................................... 274
Joint Warfighter Medical Research Program.................... 275
Electronic Health Records.................................... 275
Mental Health of Military Dependents......................... 275
The Cancer Center at Walter Reed National Military Medical
Center..................................................... 276
Emerging Infectious Diseases................................. 276
Multi-Disciplinary Brain Research............................ 276
Impact of Gut Microbiome on Chronic Conditions............... 277
Combat Ocular Trauma......................................... 277
Expanded Canine Therapy Research............................. 277
Water Safety on Military Bases............................... 277
Hyperbaric Oxygen Therapy.................................... 278
Applied Biomedical Technology................................ 278
Service Records Loss through Fire............................ 278
Burn Patient Transfer System................................. 279
Thermal Injury Protection Systems............................ 279
Existing Research Needs...................................... 279
HIV Testing.................................................. 279
Opioid Abuse in the Military................................. 280
Advanced Orthopedic Surgical Training........................ 280
Chemical Agents and Munitions Destruction, Defense............. 280
Drug Interdiction and Counter-Drug Activities, Defense......... 281
Joint Urgent Operational Needs Fund............................ 281
Office of the Inspector General................................ 281
TITLE VII. RELATED AGENCIES...................................... 283
National and Military Intelligence Programs.................... 283
Classified Annex............................................. 283
Central Intelligence Agency Retirement and Disability System
Fund......................................................... 283
Intelligence Community Management Account...................... 283
Wildlife Trafficking......................................... 284
TITLE VIII. GENERAL PROVISIONS................................... 284
TITLE IX. OVERSEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM 295
Committee Recommendation....................................... 295
Reporting Requirements......................................... 295
Intelligence, Surveillance, and Reconnaissance Fund............ 295
Southeast Asia................................................. 296
Military Personnel............................................. 297
Operation and Maintenance...................................... 304
Assistance to Ukraine........................................ 318
Counterterrorism Partnerships Fund............................. 318
Direct Funding to the Kurdistan Regional Government.......... 318
Afghanistan Security Forces Fund............................... 318
Women in the Afghan National Security Forces................. 318
Counter-Islamic State of Iraq and the Levant Train and Equip
Fund......................................................... 318
Procurement.................................................... 318
National Guard and Reserve Equipment......................... 334
Virtual Training and Simulation.............................. 334
Research, Development, Test and Evaluation..................... 334
Navy Underwater Test Ranges.................................. 339
Revolving and Management Funds................................. 339
Defense Working Capital Funds................................ 339
Other Department of Defense Programs........................... 339
Defense Health Program....................................... 339
Drug Interdiction and Counter-Drug Activities, Defense....... 340
Joint Improvised Explosive Device Defeat Fund................ 340
Office of the Inspector General.............................. 340
General Provisions............................................. 340
TITLE X.......................................................... 343
HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS.................. 343
Statement of General Performance Goals and Objectives.......... 343
Rescissions.................................................... 343
Transfer of Funds.............................................. 344
Earmark Disclosure Statement................................... 346
Compliance with Rule XIII, CL. 3(e) (Ramseyer Rule)............ 346
Changes in the Application of Existing Law..................... 346
Appropriations not Authorized by Law........................... 359
Comparison with the Budget Resolution.......................... 360
Five-Year Outlay Projections................................... 360
Financial Assistance to State and Local Governments............ 360
Program Duplication............................................ 360
Directed Rule Making........................................... 361
Full Committee Votes........................................... 361
Additional Views............................................... 391

114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-577

======================================================================

DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2017

_______

May 19, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

Mr. Frelinghuysen, from the Committee on Appropriations, submitted the
following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 5293]

The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for the Department of Defense, and for other
purposes, for the fiscal year ending September 30, 2017.

BILL TOTALS

Appropriations for most military functions of the
Department of Defense are provided for in the accompanying bill
for fiscal year 2017. This bill does not provide appropriations
for military construction, military family housing, civil
defense, and military nuclear warheads, for which requirements
are considered in connection with other appropriations Acts.
The President's fiscal year 2017 budget request for
activities funded in the Department of Defense Appropriations
Act totals $576,856,382,000 in new budget obligational
authority.

COMMITTEE BUDGET REVIEW PROCESS

During its review of the fiscal year 2017 budget request
and execution of appropriations for fiscal year 2016, the
Subcommittee on Defense held a total of eleven hearings and six
formal briefings during the period of February 2016 to April
2016. Testimony received by the Subcommittee totaled 950 pages
of transcript. Hearings were held in open session, except when
the security classification of the material to be discussed
presented no alternative but to conduct those hearings in
executive or closed session.

INTRODUCTION

The Committee recommendation for the fiscal year 2017
Department of Defense base budget is $517,130,000,000, which is
a decrease of $586,831,000 below the budget request. The
Committee recommendation for overseas contingency operations/
global war on terrorism is $58,626,000,000, which is an
increase of $449,000 above the budget request.
To reach the reduced base allocation, the Subcommittee has
reviewed in detail the budget request and found areas and
programs where reductions are possible without adversely
impacting the warfighter or modernization and readiness
efforts. Examples of such reductions include: programs that
have been terminated or restructured since the budget was
submitted, savings from favorable contract pricing adjustments,
contract or schedule delays resulting in fiscal year 2017
savings, unjustified cost increases or funding requested ahead
of need, anticipated or historical underexecution, rescissions
of unneeded prior year funds, and reductions that are
authorized in the National Defense Authorization Act for fiscal
year 2017.
In spite of recent force reductions, missions and
operations tempo have increased. Simultaneously, funding cuts
as a result of sequestration have forced the Services to choose
between addressing readiness needs and funding other essential
programs. Consequently, neither is properly funded. At the same
time, strategic peers and adversaries continue to modernize
their equipment and technology, eroding the technological and
strategic advantages that have provided United States troops
with decisive superiority when they enter battle. This erosion
directly threatens the global stability which has prevented
widespread conflicts since World War II.
To address these concerns, the Committee has moved funds
from overseas contingency operations/global war on terrorism
(OCO/GWOT) requirements to invest in readiness and equipment
modernization, and ensure all servicemembers are properly
prepared and equipped for battle. The Committee has provided
funding to fully support OCO/GWOT requirements for warfighters
until the end of April 2017. Additional OCO/GWOT funding will
be required in calendar year 2017 to support ongoing
operations.
Funding above the President's request to support readiness
and equipment needs across the Services and the defense
agencies includes $1,648,895,000 for facilities sustainment,
restoration, and modernization; $6,383,235,000 for operation
and maintenance and general readiness requirements; and
$9,569,556,000 for equipment recapitalization and
modernization.
The Committee is also concerned that the cuts to end
strength in recent years have eroded morale, readiness, and
strategic superiority. The draw down of end strength that was
put in motion five years ago did not account for the current
global uncertainty and instability of adversaries. Simply put,
the budget request for end strength in fiscal year 2017 does
not address the evolving threats that exist today. The
Committee recommendation provides an additional $2,989,012,000
in the military personnel and operation and maintenance
accounts to restore end strength to an appropriate level.

DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

For the purposes of the Balanced Budget and Emergency
Deficit Control Act of 1985 (Public Law 99-177), as amended by
the Balanced Budget and Emergency Deficit Control Reaffirmation
Act of 1987 (Public Law 100-119), and by the Budget Enforcement
Act of 1990 (Public Law 101-508), the terms ``program, project,
and activity'' for appropriations contained in this Act shall
be defined as the most specific level of budget items
identified in the Department of Defense Appropriations Act,
2017, the related classified annexes and Committee reports, and
P-1 and R-1 budget justification documents as subsequently
modified by congressional action.
The following exception to the above definition shall
apply: the military personnel and the operation and maintenance
accounts, for which the term ``program, project, and activity''
is defined as the appropriations accounts contained in the
Department of Defense Appropriations Act.
At the time the President submits the budget request for
fiscal year 2018, the Secretary of Defense is directed to
transmit to the congressional defense committees budget
justification documents to be known as the ``M-1'' and ``O-1''
which shall identify, at the budget activity, activity group,
and sub-activity group level, the amounts requested by the
President to be appropriated to the Department of Defense for
military personnel and operation and maintenance in any budget
request, or amended budget request, for fiscal year 2018.

FUNDING INCREASES

The Committee directs that the funding increases outlined
in the tables for each appropriation account shall be provided
only for the specific purposes indicated in the tables.

COMMITTEE RECOMMENDATIONS BY MAJOR CATEGORY

ACTIVE, RESERVE, AND NATIONAL GUARD MILITARY PERSONNEL

In title I of the bill, the Committee recommends a total of
$128,168,468,000 for active, reserve, and National Guard
military personnel, a decrease of $733,864,000 below the budget
request, and a decrease of $1,060,190,000 below the fiscal year
2016 enacted level. The Committee recommendation provides
funding to increase basic pay for all military personnel by 2.1
percent, as authorized by current law, effective January 1,
2017. The recommendation provides the resources required for an
additional 28,715 active forces and 25,000 Selected Reserve
forces above the requested end strength levels in order to meet
operational needs in fiscal year 2017.

OPERATION AND MAINTENANCE

In title II of the bill, the Committee recommends a total
of $173,680,060,000 for operation and maintenance support to
the military Services and other Department of Defense entities,
an increase of $2,361,572,000 above the budget request, and an
increase of $6,194,890,000 above the fiscal year 2016 enacted
level. The recommended levels will robustly fund operational
training programs in fiscal year 2017. Requests for unit and
depot-level maintenance, facilities sustainment, restoration
and modernization, and base operations support program funding
have been fully supported.

PROCUREMENT

In title III of the bill, the Committee recommends a total
of $104,200,570,000 for procurement. In title IX of the bill,
the Committee recommends a total of $7,277,843,000 for
additional base requirements.
Major initiatives and modifications include:
$881,124,000 for the remanufacture of 52 AH-64 Apache
helicopters;
$374,210,000 for the procurement of ten AH-64 Apache
helicopters; an increase of $374,210,000 and ten helicopters
above the President's request;
$1,195,346,000 for the procurement of 72 UH-60 Blackhawk
helicopters; an increase of $440,200,000 and 36 helicopters
above the President's request;
$688,857,000 for the procurement of 27 CH-47 Chinook
helicopters;
$423,201,000 for the procurement of 85 MSE missiles for the
Patriot missile system;
$541,598,000 for the procurement of WIN-T Ground Forces
Tactical Networks;
$131,000,000 for the procurement of 20 UH-72A Lakota
helicopters;
$439,831,000 for the procurement of 123 Stryker vehicle
upgrades;
$250,388,000 for the procurement of 12 MQ-1 Gray Eagle
unmanned aerial vehicles;
$1,200,000,000 for the procurement of 14 F/A-18E/F Super
Hornet aircraft, an increase of $1,200,000,000 and 14 aircraft
above the President's request;
$1,821,245,000 for the procurement of 11 P-8A Poseidon
multi-mission aircraft;
$805,682,000 for the procurement of 26 UH-1Y/AH-1Z
helicopters, an increase of two aircraft above the President's
request;
$8,318,512,000 for the procurement of 74 F-35 Lightning
aircraft, an increase of $988,200,000 and 11 aircraft above the
President's request: 18 short take-off and vertical landing
variants for the Marine Corps, eight carrier variants for the
Navy, and 48 conventional variants for the Air Force;
$21,570,824,000 for the procurement of 15 Navy ships,
including two DDG-51 guided missile destroyers, two fully
funded SSN-774 attack submarines, three Littoral Combat Ships,
one moored training ship, one LHA replacement, one amphibious
ship replacement, and five ship to shore connectors, an
increase of $3,215,950,000 and five ships above the President's
request;
$773,138,000 for the initial procurement of the Ohio
Replacement Submarine;
$1,961,471,000 for the procurement of 24 C/HC/MC/KC-130J
aircraft, an increase of $748,012,000 and ten aircraft above
the President's request;
$1,616,929,000 for the procurement of 21 MV/CV-22 aircraft,
an increase of five aircraft and $352,795,000 above the
President's request;
$453,030,000 for the procurement of 24 MQ-9 Reaper unmanned
aerial vehicles;
$2,801,891,000 for the procurement of 15 KC-46 tanker
aircraft;
$1,028,439,000 for the procurement of three Evolved
Expendable Launch Vehicles; and
$332,000,000 for the Israeli Cooperative Programs under the
Missile Defense Agency, an increase of $290,000,000 above the
President's request.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

In title IV of the bill, the Committee recommends a total
of $70,292,888,000 for research, development, test and
evaluation. In title IX of the bill, the Committee recommends a
total of $162,990,000 for additional base requirements.
Major initiatives and modifications include:
$700,811,000 for the continued development of the
replacement for the Ohio class ballistic missile submarine;
$311,947,000 for the continued development of the E-2D
Advanced Hawkeye aircraft;
$545,822,000 for the continued development of the Next
Generation Jammer;
$1,791,268,000 for the continued development of the F-35
Lightning Joint Strike Fighter aircraft;
$338,357,000 for the continued development of the
replacement for the Presidential helicopter program;
$1,358,309,000 for the continued development of a new
penetrating bomber;
$128,019,000 for the development of a Next Generation
JSTARS aircraft;
$351,220,000 for the development of a Presidential Aircraft
Replacement;
$304,331,000 for the continued development of a new combat
rescue helicopter;
$161,966,000 for the continued development of the Space
Based Infrared Satellite and associated ground support systems;
$393,268,000 for the continued development of the Global
Positioning System III operational control segment;
$141,888,000 for the continued development of the Global
Positioning System III space segment;
$296,572,000 for the development of an alternative rocket
engine for space launch;
$2,923,036,000 for the Defense Advanced Research Projects
Agency; and
$268,735,000 for the Israeli Cooperative Program under the
Missile Defense Agency, an increase of $164,900,000 above the
President's request.

DEFENSE HEALTH PROGRAM

The Committee recommends a total of $33,576,563,000 for the
Defense Health Program to support worldwide medical and dental
services for active forces and other eligible beneficiaries.
The Committee recommends funding to augment the request for
enduring traumatic brain injury, psychological health, and
wounded, ill and injured requirements. To address these
challenges of the Defense Health Program, the Committee
recommends the following:

Traumatic brain injury and psychological health research $125,000,000;
Peer-reviewed spinal cord research...................... $30,000,000;
Peer-reviewed orthopedic research....................... $30,000,000.

OVERSEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM REQUIREMENTS

In title IX of the bill, the Committee recommends a total
of $42,949,994,000 for overseas contingency operations/global
war on terrorism requirements. This funding level will fully
support OCO/GWOT operations through the end of April 2017 and
includes:
Military Personnel: The Committee recommends a total of
$2,199,059,000 for military personnel OCO/GWOT requirements in
title IX of the bill.
Operation and Maintenance: The Committee recommends a total
of $29,960,628,000 for operation and maintenance OCO/GWOT
requirements in title IX of the bill.
Procurement: The Committee recommends a total of
$9,357,564,000 for procurement OCO/GWOT requirements in title
IX of the bill.
Research, Development, Test and Evaluation: The Committee
recommends a total of $333,679,000 for research, development,
test and evaluation OCO/GWOT requirements in title IX of the
bill.

CLASSIFIED PROGRAMS

As described elsewhere in this report, the Committee's
budget review of classified programs is published in a
separate, detailed, and comprehensive classified annex.
Adjustments to the classified programs are addressed in the
classified annex accompanying this report.

OVERSEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM

The United States military and Intelligence Community
remain engaged in responding to crises, conflicts, and
instability across the globe. As intelligence and military
leaders have testified repeatedly before Congress, the list of
threats against United States interests has rarely, if ever,
been greater.
Tragically, Russia seems to have returned to a Cold War
posture based on the recent actions of Vladimir Putin.
Aggression for propaganda purposes seems to be the new norm.
Russian occupation of Crimea and Eastern Ukraine has
destabilized the region and the support to the Syrian regime of
Bashar al-Assad has propped up a dictator who has killed over
300,000 of his own countrymen, including with chemical weapons.
Further, Russian support gives the Syrian regime greater
confidence and enables Assad to delay negotiations with
opposition forces and rebuff attempts at a meaningful and
lasting ceasefire.
Iran continues to threaten international stability, even
though the nuclear agreement with Iran has been negotiated.
Iran's new-found positive public appearance masks its actions
to reestablish Persian dominance in the Middle East. It has
proxy forces on several battlefields and is working in the
cyber arena to destabilize both military operations and global
commerce.
Other nation state actors have been allowed to retrench and
plan as the international community has focused for the past 15
years on the Middle East. For over fifty years, North Korea has
used escalatory tactics and provocation on the Korean peninsula
to blackmail the world into acquiescing to its demands. With
the death of Kim Jong Il, there was hope that North Korea could
join the world as a partner. Unfortunately, the opposite
appears to be true. The inflammatory actions taken by Kim Jong
Un leave no room for negotiations and may ultimately lead to an
escalation of hostilities on the Korean peninsula, which will
be difficult to defuse or contain.
Also in the Pacific, the manipulation of shoals and reefs
in the South and East China Seas by China can no longer be
ignored. These man-made islands on other nations' sovereign
territories will hamper the freedom of navigation and commerce.
These provocative actions may eventually lead to an incident
that may spiral out of control and involve all Pacific Rim
nations.
Finally, international terrorism continues to metastasize.
Although the Islamic State of Iraq and the Levant (ISIL) has
faced setbacks in Syria and Iraq, it is expanding its reach
into northern Africa. Its attacks in Europe and inspiration for
attacks in the United States in calendar year 2016 have claimed
the lives of dozens in addition to the thousands who have died
in Iraq and Syria. Al Qaida and its affiliates, while
diminished, continue to plan attacks on the West while they
build safe havens in unstable regions. These are but two of the
terrorist groups which continue to use extortion and terror,
and prey upon ignorance, to achieve their objectives.
The Committee recognizes the changing face of warfare and
does not assume that military engagements in the future will be
limited to current regions of instability, or that conflicts
will be predicted well in advance. Appropriate responses to
these threats require a variety of military and Intelligence
Community resources that can address the entire spectrum of
warfare today and in the future. The Committee continues to
support the warfighter and the Intelligence Community with
resources that will allow for the preparation and fast-reaction
to both current contingencies and future unknown crises.
To address these threats and challenges, the bill includes
increases in base funding to rebuild troop levels, readiness,
and equipment while pursuing technological advances and
strengthening Intelligence Community capabilities. The bill
also supports the European Reassurance Initiative to help deter
President Putin from further actions to destabilize Europe, and
includes additional Intelligence, Surveillance, and
Reconnaisance funding to ensure warfighters have the
operational awareness they rely upon to detect and respond to
threats around the world.
The bill also specifically supports efforts to degrade and
reverse the gains of ISIL where it currently exists and
wherever it may try to gain a new foothold, maintain security
along Jordan's borders, and stem aggression within the Levant.
The Committee includes sufficient resources for the Counter-
ISIL Train and Equip Fund to support allies, including by
providing assistance to military and other security forces of
the Government of Iraq, such as Kurdish and tribal security
forces.
Since the war on terrorism is truly global, the Committee
includes funding under several authorities and efforts to
support the United States Africa Command's Theater Campaign
Concept to combat al-Qaeda in the Islamic Maghreb, Boko Haram,
al-Qaeda East Africa, and al-Shabaab, instability caused by the
Lord's Resistance Army, and piracy and illicit trafficking.
These same authorities are expanded using the Counterterrorism
Partnerships Fund and are available, but not limited to, the
countries bordering the Gulf of Aden, the Seas of Indonesia,
the South China Sea, and other global havens for terrorism and
extremism.

COUNTERING RUSSIAN AGGRESSION IN THE ARCTIC

The Committee is concerned with increasing Russian military
expansion and unprovoked aggression in the Arctic region. Over
the last few years, Russia has built multiple new bases and
begun permanently stationing troops in the region. As the area
becomes more heavily transited, it is imperative that the
seaways remain free and open for international traffic.
Russia's revived interest in the Arctic as a military outpost
threatens the geopolitical stability of the region, including
the interests of the United States and allies. The Committee
urges the Secretary of Defense to review Russia's Arctic
strategy, including the modernization of its Northern Fleet,
and to make maritime security and countering the Russian
aggression in the Arctic region a priority.

READINESS

Readiness has reached historically low levels and the
budget request represents the bare minimum needed to sustain
the readiness recovery. This is unacceptable. The Committee has
provided an additional $6,383,235,000 to provide for additional
flight time, battle training, depot maintenance, equipment
modernization, and critical infrastructure sustainment so the
Services may more effectively meet their combat readiness
requirements. This includes an additional $750,000,000 for the
Army, Navy, and Air Force each to apply towards its most
critical readiness gaps that exist due to inadequate budget
requests.
For example, the budget request funds the Army, Navy, and
Air Force flying hour programs between 85 percent and 91
percent of their requirements. Utilizing the additional
readiness funds provided for the flying hour programs, the
Services will meet 100 percent of their requirements.
Similarly, the Army is currently funding just 78 percent of
their ground operating tempo (OPTEMPO) training requirement.
Utilizing the additional readiness funds provided, the Army
will meet 100 percent of its ground OPTEMPO requirement.
Furthermore, across the Services, facility sustainment is
funded at approximately 74 percent of the requirement set forth
in the Department's Facility Sustainment Model, resulting in
the deferral of routine maintenance and repair actions and
increasing the likelihood of accelerated facility degradation
and subsequent mission degradation due to poor infrastructure
support. Within the amount provided, the Committee has provided
an additional $1,648,895,000 above the budget request for
facilities sustainment, restoration, and modernization (FSRM).
This increase will enable the Services to fund FSRM at more
than 80 percent of the requirement set forth in the
Department's Facility Sustainment Model, in line with
historical execution levels.
Finally, on average depot maintenance is funded at just 81
percent of the requirement across the active duty components.
Within the amount provided, the Committee has included an
additional $752,867,000 above the budget request for depot
maintenance. This funding level will enable the Navy to meet
100 percent of its aircraft depot maintenance and ship depot
maintenance requirement, the Marine Corps to meet 100 percent
of its total depot maintenance requirement, and the Air Force
to meet 100 percent of its weapons systems sustainment
requirement.

COST OF NUCLEAR MODERNIZATION

The Committee notes the Secretary of Defense's testimony
that the total cost of nuclear modernization, estimated by the
Secretary to be $350,000,000,000 to $450,000,000,000, presents
an enormous affordability challenge. The Committee directs the
Secretary of Defense to submit a report to the congressional
defense committees not later than 180 days after the enactment
of this Act detailing the estimated life-cycle costs associated
with the Department of Defense's plan for replacing and
sustaining all legs of the nuclear triad, including the ground-
based strategic deterrent, the B-21 bomber, the long-range
standoff weapon, the Ohio replacement program, and any
associated warheads and supporting infrastructure. This report
may be submitted with a classified annex if necessary.

ISRAELI MISSILE DEFENSE PROGRAMS

The Committee recommendation includes $332,000,000 in
Procurement, Defense-Wide, an increase of $290,000,000 above
the request, and $268,735,000 in Research, Development, Test
and Evaluation, Defense-Wide, an increase of $164,900,000 above
the request, for the Israeli Missile Defense Cooperative
programs.
The Committee directs that of the $150,000,000 appropriated
for co-production activities associated with the Short Range
Ballistic Missile Defense program, not more than $90,000,000
may be obligated or expended until the establishment of a
United States-Israeli co-production agreement. In addition, of
the $120,000,000 appropriated for co-production activities
associated with the Arrow 3 Upper Tier, not more than
$70,000,000 may be obligated or expended until the
establishment of a United States-Israeli co-production
agreement.

RECOGNITION OF WOMEN'S SERVICE IN THE ARMED FORCES

The Committee notes with regret the decision by the former
Secretary of the Army to rescind inurnment rights at Arlington
National Cemetery for Women Airforce Service Pilots. The
Committee strongly urges the Secretary of Defense to use his
authorities to reverse this decision in recognition of the
selfless and groundbreaking service these pilots contributed
during World War II.
In addition, the Committee notes the strong support for
military service memorials and museums highlighting the role of
women in the military. The Committee recommendation includes a
legislative provision making up to $5,000,000 available for
such facilities upon the submission of a report from the
Secretary of Defense.

CYBERSPACE OPERATIONS

The Committee recommendation fully funds the fiscal year
2017 base budget request of $6,734,000,000 for cyberspace
operations, an increase of $992,000,000 over the fiscal year
2016 enacted level. While the Department of Homeland Security
and the Department of Justice are responsible for investigating
intrusions into private companies and protecting government
websites, the Department of Defense is responsible for
defending military networks, systems, and information;
defending the nation against cyberattacks of significant
consequence; and providing cyber support to operational and
contingency plans. A total of $6,734,000,000 is provided to the
Army, Navy, Marine Corps, Air Force, and the defense agencies
to continue to organize, train, and equip Cyber Mission Forces
to become fully operational by the end of fiscal year 2018; to
support cyber-focused research and technology projects; to
develop innovative approaches to cyber training in order to
respond to an evolving threat environment; and to support both
defensive and offensive cyberspace operations.
While the Committee supports the requested increases in
funding for cyber operations, it remains concerned over the
lack of detail and clarity regarding how requested funding will
be spent. While the Service and defense-wide budget
justification material provides some level of detail, much of
the funding is encompassed within larger programs and funding
lines, which limits visibility and insight into requested
funding for cyber operations specifically. The Department of
Defense classified cyberspace operations information technology
investments budget justification materials provide additional
information regarding the overall requested funding by
cyberspace investment activity, but include limited
justification for changes in requested funding. The lack of
clarity in the justification material limits proper
congressional oversight.
The Department of Defense cyberspace operations table
included in the Committee report shows the amount of funding
provided to each Service and defense-wide account in fiscal
years 2016 and 2017. Funding provided in the operation and
maintenance, procurement, and research, development, test and
evaluation appropriation accounts for cyberspace operations at
the provided funding levels is designated a congressional
special interest item. Funding appropriated may only be used
for cyberspace operations as justified in the classified
cyberspace operations information technology investment budget
request for fiscal year 2017. The Committee directs the
Secretary of Defense that normal prior approval reprogramming
procedures must be used to obligate or expend these funds for
any purpose other than cyberspace operations as justified in
the cyberspace operations information technology investments
budget request for fiscal year 2017.
In addition, the Committee directs the Secretary of Defense
to submit two reports to the congressional defense committees,
not later than April 1, 2017 and October 15, 2017, detailing
the obligations and expenditure of cyberspace operations
appropriated funds by account, budget activity group, and sub-
activity group for the operation and maintenance appropriations
accounts and account, program element, and line item for the
procurement and research, development, test and evaluation
accounts.
The Committee directs the Department of Defense Chief
Information Officer, in coordination with the Service
Secretaries and the Under Secretary of Defense (Comptroller),
to work with the House and Senate Appropriations Committees to
provide increased visibility and clarity into the cyberspace
operations funding requirements and requested changes to
funding requirements from the enacted levels as part of the
fiscal year 2018 classified cyberspace operations information
technology funding justification materials.

TITLE I

MILITARY PERSONNEL

The fiscal year 2017 Department of Defense military
personnel budget request totals $128,902,332,000. The Committee
recommendation provides $128,168,468,000 for the military
personnel accounts. The table below summarizes the Committee
recommendations:

MILITARY PERSONNEL OVERVIEW

The Committee recommendation provides $128,168,468,000 for
the military personnel accounts, which funds military pay and
allowances, recruitment and retention initiatives, and overall
quality of life programs for active duty, National Guard, and
reserve personnel. The recommendation provides the resources
required for an additional 27,000 active forces and 25,000
selected reserve forces above the requested end strength levels
in order to meet operational needs for fiscal year 2017. The
recommendation also provides increased basic pay for all
military personnel by 2.1 percent as authorized by current law,
effective January 1, 2017. The Committee continues to encourage
constructive evaluations of recruitment and retention programs,
bonus and special pay incentives, and personnel benefit
programs for fiscal year 2017. The Committee remains supportive
of programs intended to enhance the morale and quality of life
of military personnel and their families.

SUMMARY OF END STRENGTH

The fiscal year 2017 budget request includes a decrease of
27,015 in total end strength for the active forces and a
decrease of 9,800 in total end strength for the Selected
Reserve as compared to the fiscal year 2016 authorized levels.
The following tables summarize the Committee recommendations
for end strength levels, both in the aggregate and for each
active and Selected Reserve component.

OVERALL ACTIVE END STRENGTH

Fiscal year 2016 authorized........................... 1,308,915
Fiscal year 2017 budget request....................... 1,281,900
Fiscal year 2017 recommendation....................... 1,310,615
Compared with fiscal year 2016.................... +1,700
Compared with fiscal year 2017 budget request..... +28,715

OVERALL SELECTED RESERVE END STRENGTH

Fiscal year 2016 authorized........................... 811,000
Fiscal year 2017 budget request....................... 801,200
Fiscal year 2017 recommendation....................... 826,200
Compared with fiscal year 2016.................... +15,200
Compared with fiscal year 2017 budget request..... +25,000

SUMMARY OF MILITARY PERSONNEL END STRENGTH
----------------------------------------------------------------------------------------------------------------
Fiscal year 2017
-------------------------------------------------
Fiscal year Change
2016 Budget Committee Change from
authorized request recommended from fiscal
request year 2016
----------------------------------------------------------------------------------------------------------------
Active Forces (End Strength)
Army............................................. 475,000 460,000 480,000 20,000 5,000
Navy............................................. 329,200 322,900 324,615 1,715 -4,585
Marine Corps..................................... 184,000 182,000 185,000 3,000 1,000
Air Force........................................ 320,715 317,000 321,000 4,000 285
--------------------------------------------------------------
Total, Active Forces..................... 1,308,915 1,281,900 1,310,615 28,715 1,700
--------------------------------------------------------------

Guard and Reserve Forces (End Strength)
Army Reserve..................................... 198,000 195,000 205,000 10,000 7,000
Navy Reserve..................................... 57,400 58,000 58,000 - - - 600
Marine Corps Reserve............................. 38,900 38,500 38,500 - - - -400
Air Force Reserve................................ 69,200 69,000 69,000 - - - -200
Army National Guard.............................. 342,000 335,000 350,000 15,000 8,000
Air National Guard............................... 105,500 105,700 105,700 - - - 200
--------------------------------------------------------------
Total, Selected Reserve.................. 811,000 801,200 826,200 25,000 15,200
--------------------------------------------------------------
Total, Military Personnel........................ 2,119,915 2,083,100 2,136,815 53,715 16,900
----------------------------------------------------------------------------------------------------------------

FULL-TIME SUPPORT STRENGTHS

There are four categories of full-time support in the
National Guard and reserve components: military technicians
(dual status), Active Guard and Reserve, non-technician
civilians, and active component personnel.
Full-time support personnel organize, recruit, train,
maintain, and administer the reserve components. Military
technicians (dual status) directly support units and are
critical to helping units maintain readiness and meet the
wartime missions of the Army and Air Force.
The following table summarizes the National Guard and
reserve components full-time support end strengths:

SUMMARY OF GUARD AND RESERVE FULL TIME STRENGTH
----------------------------------------------------------------------------------------------------------------
Fiscal year 2017
-------------------------------------------------
Fiscal year Change
2016 Budget Committee Change from
authorized request recommended from fiscal
request year 2016
----------------------------------------------------------------------------------------------------------------
Army Reserve:
AGR.............................................. 16,261 16,261 16,261 - - - - - -
Technicians...................................... 7,395 7,570 7,570 - - - 175
Navy Reserve:
AR............................................... 9,934 9,955 9,955 - - - 21
Marine Corps Reserve:
AR............................................... 2,260 2,261 2,261 - - - - - -
Air Force Reserve:
AGR.............................................. 3,032 2,955 2,955 - - - -77
Technicians...................................... 9,814 10,061 10,061 - - - 247
Army National Guard:
AGR.............................................. 30,770 30,155 30,155 - - - -615
Technicians...................................... 26,099 25,507 25,507 - - - -592
Air National Guard:
AGR.............................................. 14,748 14,764 14,764 - - - 16
Technicians...................................... 22,104 22,103 22,103 - - - -1
Totals:
AGR/AR........................................... 77,005 76,351 76,351 - - - -654
Technicians...................................... 65,412 65,241 65,241 - - - -171
--------------------------------------------------------------
Total, Full-Time Support................. 142,417 141,592 141,592 - - - -826
----------------------------------------------------------------------------------------------------------------

REPROGRAMMING GUIDANCE FOR MILITARY PERSONNEL ACCOUNTS

MILITARY PERSONNEL SPECIAL INTEREST ITEMS

Items for which additional funds have been provided or have
been specifically reduced as shown in the project level tables
or in paragraphs using the phrase ``only for'' or ``only to''
in this report are congressional special interest items for the
purpose of the Base for Reprogramming (DD Form 1414). Each of
these items must be carried on the DD Form 1414 at the stated
amount as specifically addressed in the Committee report. Below
Threshold Reprogrammings may not be used to either restore or
reduce funding from congressional special interest items as
identified on the DD Form 1414.

ALTERNATIVE LEARNING FOR MILITARY DEPENDENTS

The Committee recognizes that the educational needs of
military children are often taxing to both military and
civilian school systems. In order to address this issue and
capitalize on emerging technology, the Committee directs the
Secretary of Defense to establish a three year pilot program to
assess a virtual school option for military dependent children.
The Committee directs the Secretary of Defense to submit a
report to the congressional defense committees not later than
180 days after the enactment of this Act, and quarterly reports
thereafter, on the progress of the pilot program.

MATERNITY CARE

The Committee commends the Secretary of Defense for making
maternity care for female servicemembers a priority by adopting
a Department of Defense-wide twelve week maternity leave
policy. The Committee directs the Secretary of Defense to
conduct an analysis of how this policy affects readiness and
retention across the Services and to submit a report containing
its findings to the congressional defense committees not later
than 90 days after the enactment of this Act.

SUICIDE PREVENTION

The Committee remains concerned by the high rate of
suicides among servicemembers. The Committee recognizes the
successes of organizations outside of the federal government to
address and prevent servicemember suicides. These organizations
understand military culture and work with combat-wounded and
other at-risk servicemembers to build resiliency, increase
normal day-to-day performances, and increase health and fitness
levels, all of which may reduce suicides. The Committee
encourages the Secretary of Defense to develop policies for
finding, qualifying, and interacting with suicide prevention
organizations outside of the federal government to assist in
reducing suicides.
The Committee is also concerned that the Department of
Defense does not have a 24-hour suicide hotline. Therefore, the
Committee directs the Secretary of Defense to submit a report
to the congressional defense committees not later than 60 days
after the enactment of this Act on efforts to establish a 24-
hour hotline.

MINORITY OUTREACH AND OFFICER ACCESSIONS

Minorities remain underrepresented in the general officer
ranks across the Services. To build a more diverse military,
the Committee supports efforts to conduct outreach and
recruiting programs focused on increasing officer accessions
from minority communities and encourages the Secretary of
Defense and the Service Secretaries to support such efforts
with both personnel and resources.

CULTURAL SENSITIVITY TRAINING

The Committee recognizes that the Department of Defense and
the Services have multiple cultural sensitivity training
programs for military personnel. The Committee also believes in
the importance of protecting servicemembers' rights regarding
religious exercise and ethnic heritage. As such, the Committee
supports efforts to identify resource and personnel gaps that
may exist in the Office of Diversity Management and Equal
Opportunity of the Department of Defense as well as efforts to
identify existing gaps in protections for new and prospective
servicemembers.

FOREIGN LANGUAGE TRAINING

The Committee recognizes the important role of the Defense
Language Institute (DLI) in providing foreign language training
and interpretation to the military and Intelligence Community
and supports efforts to ensure that the DLI can continue to
effectively conduct its primary mission of training career or
professional linguists. The Committee urges the Secretary of
Defense to ensure that any deficiencies in the requirements
generation process for combatant commands' foreign language
operational needs is fully addressed by developing a
comprehensive process for identifying emerging and future
capability requirements and by fully resourcing the DLI.
Furthermore, the Committee encourages the Secretary of Defense
to make valuable language skill training available to more
servicemembers, including non-commissioned officers, from all
Services.

MILITARY PERSONNEL, ARMY

Fiscal year 2016 appropriation........................ $41,045,562,000
Fiscal year 2017 budget request....................... 40,028,182,000
Committee recommendation.............................. 39,986,962,000
Change from budget request............................ -41,220,000

The Committee recommends an appropriation of
$39,986,962,000 for Military Personnel, Army which will provide
the following program in fiscal year 2017:

MILITARY PERSONNEL, NAVY

Fiscal year 2016 appropriation........................ $27,835,183,000
Fiscal year 2017 budget request....................... 27,951,605,000
Committee recommendation.............................. 27,774,605,000
Change from budget request............................ -177,000,000

The Committee recommends an appropriation of
$27,774,605,000 for Military Personnel, Navy which will provide
the following program in fiscal year 2017:

MILITARY PERSONNEL, MARINE CORPS

Fiscal year 2016 appropriation........................ $12,859,152,000
Fiscal year 2017 budget request....................... 12,813,412,000
Committee recommendation.............................. 12,701,412,000
Change from budget request............................ -112,000,000

The Committee recommends an appropriation of
$12,701,412,000 for Military Personnel, Marine Corps which will
provide the following program in fiscal year 2017:

MILITARY PERSONNEL, AIR FORCE

Fiscal year 2016 appropriation........................ $27,679,066,000
Fiscal year 2017 budget request....................... 27,944,615,000
Committee recommendation.............................. 27,794,615,000
Change from budget request............................ -150,000,000

The Committee recommends an appropriation of
$27,794,615,000 for Military Personnel, Air Force which will
provide the following program in fiscal year 2017:

RESERVE PERSONNEL, ARMY

Fiscal year 2016 appropriation........................ $4,463,164,000
Fiscal year 2017 budget request....................... 4,561,703,000
Committee recommendation.............................. 4,458,963,000
Change from budget request............................ -102,740,000

The Committee recommends an appropriation of $4,458,963,000
for Reserve Personnel, Army which will provide the following
program in fiscal year 2017:

RESERVE PERSONNEL, NAVY

Fiscal year 2016 appropriation........................ $1,866,891,000
Fiscal year 2017 budget request....................... 1,924,155,000
Committee recommendation.............................. 1,898,825,000
Change from budget request............................ -25,330,000

The Committee recommends an appropriation of $1,898,825,000
for Reserve Personnel, Navy which will provide the following
program in fiscal year 2017:

RESERVE PERSONNEL, MARINE CORPS

Fiscal year 2016 appropriation........................ $702,481,000
Fiscal year 2017 budget request....................... 744,995,000
Committee recommendation.............................. 736,305,000
Change from budget request............................ -8,690,000

The Committee recommends an appropriation of $736,305,000
for Reserve Personnel, Marine Corps which will provide the
following program in fiscal year 2017:

RESERVE PERSONNEL, AIR FORCE

Fiscal year 2016 appropriation........................ $1,682,942,000
Fiscal year 2017 budget request....................... 1,742,906,000
Committee recommendation.............................. 1,718,126,000
Change from budget request............................ -24,780,000

The Committee recommends an appropriation of $1,718,126,000
for Reserve Personnel, Air Force which will provide the
following program in fiscal year 2017:

NATIONAL GUARD PERSONNEL, ARMY

Fiscal year 2016 appropriation........................ $7,892,327,000
Fiscal year 2017 budget request....................... 7,910,694,000
Committee recommendation.............................. 7,827,440,000
Change from budget request............................ -83,254,000

The Committee recommends an appropriation of $7,827,440,000
for National Guard Personnel, Army which will provide the
following program in fiscal year 2017:

NATIONAL GUARD PERSONNEL, AIR FORCE

Fiscal year 2016 appropriation........................ $3,201,890,000
Fiscal year 2017 budget request....................... 3,280,065,000
Committee recommendation.............................. 3,271,215,000
Change from budget request............................ -8,850,000

The Committee recommends an appropriation of $3,271,215,000
for National Guard Personnel, Air Force which will provide the
following program in fiscal year 2017:

TITLE II

OPERATION AND MAINTENANCE

The fiscal year 2017 Department of Defense operation and
maintenance budget request totals $171,318,488,000. The
Committee recommendation provides $173,680,060,000 for the
operation and maintenance accounts. The table below summarizes
the Committee recommendations:

REPROGRAMMING GUIDANCE FOR OPERATION AND MAINTENANCE ACCOUNTS

The Committee directs the Secretary of Defense to submit
the Base for Reprogramming (DD Form 1414) for each of the
fiscal year 2017 appropriation accounts not later than 60 days
after the enactment of this Act. The Secretary of Defense is
prohibited from executing any reprogramming or transfer of
funds for any purpose other than originally appropriated until
the aforementioned report is submitted to the House and Senate
Appropriations Committees.
The Committee directs the Secretary of Defense to use the
normal prior approval reprogramming procedures to transfer
funds in the Services' operation and maintenance accounts
between O-1 budget activities in excess of $15,000,000. In
addition, the Secretary of Defense should follow prior approval
reprogramming procedures for transfers in excess of $15,000,000
out of the following budget sub-activities:
Army:
Maneuver units
Modular support brigades
Land forces operations support
Force readiness operations support
Land forces depot maintenance
Base operations support
Facilities sustainment, restoration, and modernization
Navy:
Aircraft depot maintenance
Ship depot maintenance
Facilities sustainment, restoration, and modernization
Marine Corps:
Depot maintenance
Facilities sustainment, restoration, and modernization
Air Force:
Primary combat forces
Combat enhancement forces
Combat communications
Facilities sustainment, restoration, and modernization
Air Force Reserve:
Depot maintenance
Air National Guard:
Depot maintenance
Additionally, the Secretary of Defense should follow prior
approval reprogramming procedures for transfers in excess of
$15,000,000 into the following budget sub-activity:
Operation and Maintenance, Army National Guard:
Other personnel support/recruiting and advertising
With respect to Operation and Maintenance, Defense-Wide,
proposed transfers of funds to or from the levels specified for
defense agencies in excess of $15,000,000 shall be subject to
prior approval reprogramming procedures.
During fiscal year 2017, the Committee directs the Service
Secretaries to submit written notification and justification to
the congressional defense committees not later than 15 days
prior to implementing transfers in excess of $15,000,000 out of
the following budget sub-activities:
Navy:
Mission and other flight operations
Mission and other ship operations
Air Force:
Operating forces depot maintenance
Mobilization depot maintenance
Training and recruiting depot maintenance
Administration and service-wide depot maintenance
These transfers may be implemented 15 days after a
congressional notification unless an objection is received from
one of the congressional defense committees.

OPERATION AND MAINTENANCE SPECIAL INTEREST ITEMS

OPERATION AND MAINTENANCE MILITARY INTELLIGENCE PROGRAM BUDGET
JUSTIFICATION MATERIAL

The explanatory statement accompanying the Department of
Defense Appropriations Act, 2016 noted that previous budget
justification material submitted for the operation and
maintenance portion of the Military Intelligence Program (MIP)
and the exhibits for the Security Programs sub-activity groups
(SAGs) in the Operation and Maintenance Army, Navy, Marine
Corps, and Air Force accounts did not provide full visibility
into requested funding, which limited congressional oversight.
Accordingly, the explanatory statement directed the Secretary
of Defense to provide classified OP-5 and OP-32 budget exhibits
with the budget submission for each of the Security Program
SAGs, which would provide the non-National Intelligence Program
funding amount requested in the SAG and a summary and
justification for changes in the level of resources required
for each SAG. For fiscal year 2017, the Services and defense
agencies were directed to work with the House and Senate
Appropriations Committees to provide this information during
the budget review process. The new tables and budget exhibits
are to be included as a part of the budget submission for
fiscal year 2018, as the current budget justification material
for the operation and maintenance portion of the MIP and the
exhibits for the Security Programs SAGs in the Operation and
Maintenance Army, Navy, Marine Corps, and Air Force accounts do
not provide full visibility into requested funding.
In addition, beginning in fiscal year 2018, the Secretary
of Defense is directed to break out requested funding for
operation and maintenance accounts at the line item level of
funding in the MIP congressional budget justification material.
Further, requested changes from the fiscal year 2017 enacted
level in operation and maintenance funding should break out the
change by price and program as defined by the Department of
Defense Financial Management Regulation.

MILITARY UNIFORMS

The Committee recognizes that there is an increasing
movement towards prohibiting halogenated flame retardants in
commercial products due to health and safety concerns. The
Committee believes that servicemembers should be provided the
same protection against potential toxic exposure. As such, the
Committee encourages the Secretary of Defense to explore the
potential of utilizing non-halogenated flame retardants in
military uniforms.

CYBERSPACE OPERATIONS

The Committee is extremely concerned by the risk that
cyberattacks and cyber threats present not only to national
security but also to economic security, and therefore supports
an increase of $992,000,000 in fiscal year 2017 above the
fiscal year 2016 enacted level to bolster Department of Defense
cyber defensive and offensive operations and capabilities. The
Committee is also concerned by the risk posed by unauthorized
or malicious access to data assets and encourages the Secretary
of Defense to keep the congressional defense committees
informed when such intrusions are detected.
In addition, the Committee recognizes the importance of
recruiting and retaining a trained and qualified cyber
workforce. Many cyber workforce positions require security
clearances, which can present a hurdle to hiring recent college
graduates. The Committee encourages the exploration of methods
of recruiting students prior to graduation in order to expedite
the security clearance and hiring processes. The Committee also
encourages initiatives to specifically reach out to minority-
serving public institutions to build a pipeline for scientists
and engineers from minority communities to enter the cyber
workforce upon graduation. In addition, the Committee supports
efforts to include newly qualified applicants, such as interns
and college graduates, in cybersecurity related contract labor
categories. The Committee recognizes that the adoption of next
generation end user computing could result in cost savings
while also improving desktop security, and it encourages the
Secretary of Defense to continue to explore the use of next
generation end user computing.

ARMY, ARMY NATIONAL GUARD, AND ARMY RESERVE CYBERSPACE OPERATIONS

The Committee recommendation includes $1,330,000,000 across
appropriation accounts to the Department of the Army, including
the Army National Guard and the Army Reserve, for cyberspace
operations in fiscal year 2017, an increase of $384,000,000
over the fiscal year 2016 enacted level. The Army's
contribution to the joint Cyber Mission Forces (CMF) is 41
teams made up of active duty personnel. In addition to the 41
active duty CMF teams, the Department of the Army has chosen to
grow 21 Cyber Protection Teams (CPTs) in the reserve component.
While the Committee strongly supports the Army CMF efforts to
reach full operating capability by fiscal year 2018, the
Committee is concerned that because the Army Reserve and the
Army National Guard are not formally part of the CMF, they are
not resourced through the United States Cyber Command training
pipeline, which hinders access to training. As a result, the
Army National Guard has chosen to establish a separate training
course at its Professional Education Center. While the
Committee supports the intent of this course, it is concerned
that this is not the most efficient use of Army National Guard
resources in the current constrained budget environment. The
Committee is aware that the Army Cyber Center of Excellence at
Fort Gordon is growing capabilities and capacity and will
provide training to the reserve component beginning in the
summer of 2016. The Committee is also aware that the reserve
component has not fully identified its training throughput
requirements to support development of the 21 reserve component
CPTs, which has made it difficult to ensure that reserve cyber
warriors receive the training they need.
The Committee directs the Commander, United States Cyber
Command, the Secretary of the Army, the Chief of the Army
Reserve, and the Director of the Army National Guard to
cooperate to ensure that the Army National Guard and Army
Reserve have adequate access to the Army training pipeline to
ensure the reserve component CPTs will meet full operating
capability within their current fielding plans and to submit a
report to the congressional defense committees not later than
120 days after the enactment of this Act detailing the
implementation of this plan. The Committee also encourages the
Director of the National Security Agency (NSA), to collaborate
with the Secretary of the Army to ensure that training courses
that require NSA certification are reviewed in a timely manner.
The Committee recognizes the threat that attempted attacks
to critical infrastructure and associated control systems by
cyber hackers presents both domestically and internationally.
The Committee supports collaborative efforts by the Department
of Defense, Department of Homeland Security, the Department of
Energy national laboratories, universities, and private
industry in order to spur innovation and create cost
efficiencies while addressing these threats across multiple
sectors. In addition, the Committee recognizes that the Army
National Guard, through its CPTs, offers a flexible and ready
force that can provide specialized experience. The Committee
supports efforts by the Army National Guard, as part of its
title 32 duties, to partner with these entities to provide
training focused on protecting industrial control systems
associated with critical infrastructure.
The Committee further supports Army Reserve efforts to
engage with universities and the private sector to develop
formal cyber public-private partnerships to further cyber
training and employment for Army Reserve cyber warriors. The
Committee understands that the Army Reserve has experienced
challenges in certifying the cyber public-private partnership
program due to the classified nature of the cyber common
technical core course. The Committee encourages the Director of
the NSA and the Commander, United States Cyber Command to work
with the Chief of the Army Reserve to provide a pathway for
certification of this program.

INFORMATION TECHNOLOGY WORKFORCE CERTIFICATION

The Committee notes that information technology users
remain one of the most significant vulnerabilities in
preventing cybersecurity breaches and is aware that to combat
this, the Department of Defense conducts a certification
process to train personnel with information assurance
responsibilities and access to Department of Defense networks.
The Committee supports the efforts of the Chief Information
Officer (CIO) of the Department of Defense to update and expand
established policies and assigned responsibilities for managing
the Department's cyberspace workforce through the
implementation of Department of Defense Directive 8140. The
Committee encourages the CIO to consider expanding the existing
certification requirement, which could enhance the Department's
information technology infrastructure security posture and
position servicemembers to easily transition into the civilian
information technology workforce once their military service
has ended.

CLOUD COMPUTING

The Committee is concerned with the findings of the
Department of Defense Inspector General Audit Report 2016-038
which stated that the Department did not establish a standard,
Department-wide cloud computing definition or an integrated
repository to provide detailed information on cloud computing
contracts. These findings inhibited the Inspector General's
ability to determine actual cost savings from using cloud
computing services.
The Committee directs the Chief Information Officer of the
Department of Defense to submit a report to the congressional
defense committees not later than 90 days after the enactment
of this Act on the implementation of the recommendations of the
Department of Defense Inspector General Audit Report 2016-038.
The report should include what costing models are used, such as
the utility-based model, for purchasing commercial cloud
services; cost savings garnered in fiscal year 2016 by the use
of commercial cloud services; and the status of implementation
of existing commercial cloud security initiatives and their
costs, to include transitioning Federal Information Security
Modernization Act systems and data to cloud computing.

QUALITY OF LIFE PROGRAMS

The Committee supports the continued investment in quality
of life programs for servicemembers and their families.
Programs such as Operation Live Well and the Healthy Base
Initiative are Committee priorities, as are initiatives that
provide for safe living conditions and healthy water supplies
for bases and surrounding communities. In addition, the
Committee recommendation includes $1,648,895,000 above the
budget request for facilities sustainment, restoration, and
modernization to ensure appropriate levels of maintenance and
upkeep at military installations and that servicemembers and
their families are receiving medical treatment in modern, well-
maintained facilities. The Committee will continue to monitor
the Department's efforts to ensure a high quality of life on
military bases and encourages the Secretary of Defense to
continue to promote these programs across all military
installations.

AFRICAN AMERICANS BURIED AT THE NORMANDY AMERICAN CEMETERY

The Committee recognizes the critical role that African
Americans, including servicemembers, support staff, and women
played during World War II. The Committee requests that the
Army Chief of Military History, in coordination with the
Secretary of the American Battle Monuments Commission, submit a
report to the congressional defense committees not later than
90 days after the enactment of this Act that lists the names
and positions of the African American servicemembers, support
staff, and women buried at the Normandy American Cemetery in
Normandy, France. The report should also estimate the number of
African Americans buried at the Normandy American Cemetery
absent identification.

OPERATION AND MAINTENANCE, ARMY

Fiscal year 2016 appropriation........................ $32,399,440,000
Fiscal year 2017 budget request....................... 33,809,040,000
Committee recommendation.............................. 34,436,295,000
Change from budget request............................ +627,255,000

The Committee recommends an appropriation of
$34,436,295,000 for Operation and Maintenance, Army which will
provide the following program in fiscal year 2017:

DEPOT MAINTENANCE--PRODUCTIVITY ENHANCEMENT PROGRAM

The Committee recognizes that organic depot maintenance
capacity provides the Department of Defense with a valuable
resource that contributes to overall military readiness. It is
imperative that depot equipment is maintained and modernized to
continue to provide the highest possible capability. The
Committee encourages the Secretary of the Army to modernize the
electronic test and measurement equipment of organic depots.

OPERATION AND MAINTENANCE, NAVY

Fiscal year 2016 appropriation........................ $39,600,172,000
Fiscal year 2017 budget request....................... 39,483,581,000
Committee recommendation.............................. 40,213,485,000
Change from budget request............................ +729,904,000

The Committee recommends an appropriation of
$40,213,485,000 for Operation and Maintenance, Navy which will
provide the following program in fiscal year 2017:

READINESS COST ASSESSMENT TOOL

The Committee continues to support the Navy's Readiness
Cost Assessment Tool (RCAT) proficiency initiative. The
Committee directs the Secretary of the Navy to submit a report
to the congressional defense committees not later than 60 days
after the enactment of this Act that describes the current
funding profile of the RCAT initiative and the potential to
accelerate or streamline the current program strategy.

EXPEDITIONARY MEDICAL FACILITIES

The Committee understands the importance of the Department
of the Navy efforts to correct performance and safety issues in
legacy Expeditionary Medical Facilities systems and encourages
the Secretary of the Navy to prioritize such improvements in
purchases for Expeditionary Health Services Systems.

OPERATION AND MAINTENANCE, MARINE CORPS

Fiscal year 2016 appropriation........................ $5,718,074,000
Fiscal year 2017 budget request....................... 5,954,258,000
Committee recommendation.............................. 6,246,366,000
Change from budget request............................ +292,108,000

The Committee recommends an appropriation of $6,246,366,000
for Operation and Maintenance, Marine Corps which will provide
the following program in fiscal year 2017:

TOWNSEND BOMBING RANGE

The Committee is aware of the Marine Corps' intention to
seek designation by the Federal Aviation Administration to
become the using agency for the coastal military operations
areas associated with the Townsend Bombing Range. The Committee
directs the Secretary of the Navy to submit a report to the
congressional defense committees not later than 180 days after
the enactment of this Act that includes the plans for such a
transition and any potential for related changes in air traffic
control that could impede existing commercial and general
aviation traffic in the coastal Georgia area or impose
restrictions on military training at Fort Stewart and Hunter
Army Airfield.

OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2016 appropriation........................ $35,727,457,000
Fiscal year 2017 budget request....................... 37,518,056,000
Committee recommendation.............................. 38,209,602,000
Change from budget request............................ +691,546,000

The Committee recommends an appropriation of
$38,209,602,000 for Operation and Maintenance, Air Force which
will provide the following program in fiscal year 2017:

AIR EDUCATION AND TRAINING COMMAND FACILITIES

The report accompanying the House-passed Department of
Defense Appropriations Act, 2016 recognized the adverse impact
that flooding and other infrastructure challenges have had on
Air Education and Training Command facilities, equipment,
operations, and training. The Committee recognizes that steps
have been taken to begin the mitigation of some of these
effects through multi-year projects. The Committee supports
these efforts and urges completion of projects that are
underway, along with the utilization of a similar approach to
address additional deficiencies.

OFFUTT AIR FORCE BASE

The Committee understands the Air Force is replacing the
runway at Offutt Air Force Base. The Committee urges the
Secretary of the Air Force to continually inform the House and
Senate Appropriations Committees on its progress.

OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2016 appropriation........................ $32,105,040,000
Fiscal year 2017 budget request....................... 32,571,590,000
Committee recommendation.............................. 32,263,224,000
Change from budget request............................ -308,366,000

The Committee recommends an appropriation of
$32,263,224,000, for Operation and Maintenance, Defense-Wide
which will provide the following program in fiscal year 2017:

BACKGROUND INVESTIGATION SYSTEMS

In response to increasing cybersecurity threats, including
the recent compromise of information stored at the Office of
Personnel Management (OPM), the Administration has proposed the
creation of the National Background Investigations Bureau
(NBIB). As a result of this effort, and as part of a series of
changes to strengthen how the federal government safeguards
background investigations of its employees and contractors, the
Interagency Deputies Committee and the Office of Management and
Budget (OMB) have determined that the responsibility for the
development and sustainment of a new federal government
background information technology system should transfer from
OPM to the Department of Defense. The Defense Information
Systems Agency (DISA) would be responsible for the development,
implementation, and sustainment of this new background
investigation system. The Committee requires more information
about the Administration's proposal to create the NBIB, which
would replace OPM's Federal Investigative Services Division.
The Committee directs the Director of DISA, in coordination
with the Director of OPM, to submit a progress report to the
House and Senate Appropriations Committees not later than 90
days after the enactment of this Act, and quarterly thereafter,
that includes the NBIB implementation plan, timeline with
milestones, costs for each phase of implementation, anticipated
outyear costs, governance structure, resource management
structure, personnel structure, accountability policies between
OPM and the Department of Defense, and any other significant
issues related to the establishment of the NBIB.

SECURITY CLEARANCE DETERMINATIONS

The Committee is interested in understanding trends related
to security clearance determinations, both initial or periodic
reinvestigations, and denials due to Foreign Preference or
Foreign Influence. The Committee directs the Secretary of
Defense, in coordination with the Director of National
Intelligence, to submit a report to the congressional defense
committees not later than 180 days after the enactment of this
Act that includes the number of denials or revocations of
security clearance requests for fiscal year 2016 and fiscal
year 2017 and a list of countries and the number of times each
was cited per Guideline B (Foreign Influence) or Guideline C
(Foreign Preference) as the disqualifying security concern
cause for denial, revocation, or adjudicative delay exceeding
one year.

BASE SECURITY AND ACCESS CONTROL SYSTEMS

The Department of Defense and the Services continue to
develop and deploy various credentialing and physical access
control systems, which often result in different approaches to
vetting and screening individuals that require access to
military installations. The Committee encourages the Secretary
of Defense to work with the Service Secretaries to update
Department-wide policy and guidance concerning internally
developed credentialing and physical access control systems to
ensure that these systems are being utilized effectively. The
Committee directs the Under Secretary of Defense (Comptroller),
in conjunction with the Under Secretary of Defense (Policy), to
submit a report to the congressional defense committees not
later than 180 days after the enactment of this Act that
identifies and describes all Department credentialing and
physical access control systems currently deployed, including
commercially contracted services, any systems that are
presently in development or in pilot demonstration, all costs
associated with these systems, and any military installations
that are not currently scanning credentials at base access
points.

PERFORMANCE-BASED LOGISTICS

The Committee recognizes that the Department of Defense
values the use of performance-based logistics (PBL) contracts
for maintenance and repair. The Services routinely use PBL to
improve support for components such as aircraft engines and
tires. Similarly, the Defense Logistics Agency is combining
multiple contracts for similar items into a single PBL
arrangement that supports all the Services. The Committee
encourages the Secretary of Defense and the Service Secretaries
to continue expanding their use of PBL contracts.

MEALS READY-TO-EAT WAR RESERVE

The Committee recommendation fully supports the fiscal year
2017 request for the Defense Logistics Agency to maintain
2,500,000 cases of meals ready-to-eat and reaffirms support for
the War Reserve stock objective of 5,000,000 cases.

DEFENSE LOGISTICS AGENCY AND THE FEDERAL PRISON INDUSTRY MISSION

While the Committee supports the Federal Prison Industry
(FPI) mission to reduce crime by preparing inmates for
successful reentry into society through job training, the
Committee is increasingly concerned that the Defense Logistics
Agency's (DLA) reliance on FPI is coming at the expense of the
private sector, particularly small and disadvantaged
businesses. This is especially troubling since the FPI
organizing statute requires it be operated so that it ``reduces
to a minimum competition with private industry or free labor.''
Therefore, the Committee directs the Under Secretary of Defense
(Acquisition, Technology, and Logistics), in coordination with
the Director of DLA, to submit a report to the congressional
defense committees not later than 90 days after the enactment
of this Act that lists the contracts for which FPI is
responsible for more than five percent of the production of any
individual item. In addition, for each contract on the list,
the report should identify whether any small businesses
competed for, but did not win, the contract.

IMPROVING ASSET TRACKING AND IN-TRANSIT VISIBILITY

The Committee remains interested in the Department of
Defense's strategy for improving asset tracking and in-transit
visibility. The Committee supports the goal of enhancing asset
visibility through item-unique identification (IUID) and
automatic identification technology/automatic identification
and data capture processes, but remains concerned with the
Department's compliance with its own IUID policy that was
issued in September 2015. The Committee directs the Director of
the Defense Contract Management Agency (DCMA) to submit a
report to the congressional defense committees not later than
60 days after the enactment of this Act that describes the
DCMA's plan to foster the adoption, implementation, and
verification of the revised IUID policy across the Department
and the defense industrial base.

DEPARTMENT OF DEFENSE EDUCATION ACTIVITY

The Committee recognizes the importance of continually
evolving and improving the curriculum of high school students
to remain current with emerging technology and to inspire and
educate young students to be independent thinkers, designers,
and inventors. The Committee directs the Director of the
Department of Defense Education Activity (DODEA) to submit a
report to the congressional defense committees not later than
120 days after the enactment of this Act that describes how a
new program could be initiated to integrate digital education,
design thinking, and additive manufacturing into the curriculum
for DODEA high school students.

PUBLIC SCHOOLS ON DEPARTMENT OF DEFENSE INSTALLATIONS

In fiscal year 2011, the Office of Economic Adjustment was
provided authority to evaluate the condition and capacity of
public schools located on Department of Defense installations.
These schools, although on base, are run by local public school
districts but serve a significant number of military dependent
children. A priority list was approved in 2011 to disburse
funds to the most disadvantaged schools. Since 2011, many
schools have experienced changes due to military activity that
directly impact capacity and conditions. The Committee
encourages the Secretary of Defense to conduct an updated
assessment and to create a priority list to address the
condition and capacity of public schools on military
installations that may have been included in the priority list
from July 2011 but have not yet received funding.

PILOT PROGRAM TO ASSIST MEMBERS OF THE ARMED FORCES

The Committee remains concerned with the ability of
servicemembers to attain employment after they leave the
military and understands that a pilot program to address this
issue was authorized in the National Defense Authorization Act
for fiscal year 2015. The Committee directs the Secretary of
Defense, in coordination with the Secretary of Veterans
Affairs, to submit a report to the congressional defense
committees not later than January 15, 2017, that details the
feasibility of establishing a pilot program to assist members
of the armed forces in obtaining post-service employment, the
program requirements set forth in the National Defense
Authorization Act for fiscal year 2015, and the annual funding
required by the Department of Defense and the Department of
Veterans Affairs to implement and sustain such a program.

SOCIAL MEDIA ANALYTICAL CELL

The Committee is concerned with the widespread use of
social media to foster unrest and to encourage recruitment to
terrorist organizations. The creation of a social media
analytical cell that is capable of analyzing transnational
threats and social media recruitment and providing counter-
messages would be an asset to the Department of Defense. The
Committee urges the Secretary of Defense to consider starting a
pilot program for a social media analytical cell in the United
States European Command area of responsibility.

CHILD ABUSE AND NEGLECT

The Committee is concerned about the impact that child
abuse and neglect among military families have on military
family health and overall military readiness. It has been
reported that the number of confirmed cases of abuse and
neglect of military children is at its highest level in ten
years. Therefore, the Committee directs the Secretary of
Defense to conduct a study that examines the reasons for the
increase in confirmed cases of abuse and neglect and the
actions taken to understand the causes for this increase. The
Secretary of Defense shall submit a report to the congressional
defense committees not later than 180 days after the enactment
of this Act with the results of the study, plans to partner
with experts in child abuse clinical care, research, and
education, and provide recommendations on research needs to
prevent instances of child abuse and neglect among military
families.

OPERATION AND MAINTENANCE, ARMY RESERVE

Fiscal year 2016 appropriation........................ $2,646,911,000
Fiscal year 2017 budget request....................... 2,712,331,000
Committee recommendation.............................. 2,767,471,000
Change from budget request............................ +55,140,000

The Committee recommends an appropriation of $2,767,471,000
for Operation and Maintenance, Army Reserve which will provide
the following program in fiscal year 2017:

OPERATION AND MAINTENANCE, NAVY RESERVE

Fiscal year 2016 appropriation........................ $998,481,000
Fiscal year 2017 budget request....................... 927,656,000
Committee recommendation.............................. 975,724,000
Change from budget request............................ +48,068,000

The Committee recommends an appropriation of $975,724,000
for Operation and Maintenance, Navy Reserve which will provide
the following program in fiscal year 2017:

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

Fiscal year 2016 appropriation........................ $274,526,000
Fiscal year 2017 budget request....................... 270,633,000
Committee recommendation.............................. 320,066,000
Change from budget request............................ +49,433,000

The Committee recommends an appropriation of $320,066,000
for Operation and Maintenance, Marine Corps Reserve which will
provide the following program in fiscal year 2017:

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

Fiscal year 2016 appropriation........................ $2,980,768,000
Fiscal year 2017 budget request....................... 3,067,929,000
Committee recommendation.............................. 3,106,066,000
Change from budget request............................ +38,137,000

The Committee recommends an appropriation of $3,106,066,000
for Operation and Maintenance, Air Force Reserve which will
provide the following program in fiscal year 2017:

AIR FORCE RESERVE SPECIALIZED MISSIONS

The Committee understands that the Air Force Reserve
includes units that have a designated specialized mission as
well as a traditional tactical mission. The Committee is aware
of concerns that these specialized units may lack sufficient
training hours to fulfill both their tactical and specialized
missions. The Committee encourages the Chief of the Air Force
Reserve to review requirements to ensure that specialized units
are allocated sufficient training hours to successfully perform
both their specialized and tactical missions and are allocated
equipment upgrades necessary to address safety concerns
associated with these missions. When deciding which specialized
missions to target for equipment upgrades, the Committee urges
that strong consideration be given to those missions utilizing
the oldest equipment. The Committee also supports efforts to
build partnerships between units performing specialized
missions and other government agencies when practical.

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

Fiscal year 2016 appropriation........................ $6,595,483,000
Fiscal year 2017 budget request....................... 6,825,370,000
Committee recommendation.............................. 6,923,595,000
Change from budget request............................ +98,225,000

The Committee recommends an appropriation of $6,923,595,000
for Operation and Maintenance, Army National Guard which will
provide the following program in fiscal year 2017:

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

Fiscal year 2016 appropriation........................ $6,820,569,000
Fiscal year 2017 budget request....................... 6,703,578,000
Committee recommendation.............................. 6,708,200,000
Change from budget request............................ +4,622,000

The Committee recommends an appropriation of $6,708,200,000
for Operation and Maintenance, Air National Guard which will
provide the following program in fiscal year 2017:

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

Fiscal year 2016 appropriation........................ $14,078,000
Fiscal year 2017 budget request....................... 14,194,000
Committee recommendation.............................. 14,194,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $14,194,000
for the United States Court of Appeals for the Armed Forces.

ENVIRONMENTAL RESTORATION, ARMY

Fiscal year 2016 appropriation........................ $234,829,000
Fiscal year 2017 budget request....................... 170,167,000
Committee recommendation.............................. 170,167,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $170,167,000
for Environmental Restoration, Army.

ENVIRONMENTAL RESTORATION, NAVY

Fiscal year 2016 appropriation........................ $300,000,000
Fiscal year 2017 budget request....................... 281,762,000
Committee recommendation.............................. 289,262,000
Change from budget request............................ +7,500,000

The Committee recommends an appropriation of $289,262,000
for Environmental Restoration, Navy.

VIEQUES AND CULEBRA ENVIRONMENTAL RESTORATION

The Committee remains interested in the pace and scope of
environmental restoration on the island municipalities of
Culebra and Vieques in Puerto Rico, and commends the Department
of Defense for demonstrating progress in a recent report
provided to the Committee. However, public safety hazards still
exist on each island and decontamination of these islands
should be a priority for environmental restoration programs
within the Department. The Committee directs the Assistant
Secretary of Defense (Energy, Installations, and Environment)
to brief the House and Senate Appropriations Committees not
later than 90 days after the enactment of this Act on the
progress of the current implementation strategy, the status of
the installation restoration program sites and the military
munitions response program sites, and the remediation
investigations timeline for Culebra and Vieques. The brief
should include potential links between the identified ordnance
to be removed and any possible threats to public health.

ENVIRONMENTAL RESTORATION, AIR FORCE

Fiscal year 2016 appropriation........................ $368,131,000
Fiscal year 2017 budget request....................... 371,521,000
Committee recommendation.............................. 371,521,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $371,521,000
for Environmental Restoration, Air Force.

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

Fiscal year 2016 appropriation........................ $8,232,000
Fiscal year 2017 budget request....................... 9,009,000
Committee recommendation.............................. 9,009,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $9,009,000 for
Environmental Restoration, Defense-Wide.

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

Fiscal year 2016 appropriation........................ $231,217,000
Fiscal year 2017 budget request....................... 197,084,000
Committee recommendation.............................. 222,084,000
Change from budget request............................ +25,000,000

The Committee recommends an appropriation of $222,084,000
for Environmental Restoration, Formerly Used Defense Sites.

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

Fiscal year 2016 appropriation........................ $103,266,000
Fiscal year 2017 budget request....................... 105,125,000
Committee recommendation.............................. 108,125,000
Change from budget request............................ +3,000,000

The Committee recommends an appropriation of $108,125,000
for Overseas Humanitarian, Disaster, and Civic Aid.

COOPERATIVE THREAT REDUCTION ACCOUNT

Fiscal year 2016 appropriation........................ $358,496,000
Fiscal year 2017 budget request....................... 325,604,000
Committee recommendation.............................. 325,604,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $325,604,000
for the Cooperative Threat Reduction Account which will provide
the following program in fiscal year 2017:

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Committee Change from
Budget Request Recommended Request
----------------------------------------------------------------------------------------------------------------
COOPERATIVE THREAT REDUCTION
Strategic Offensive Arms Elimination............... 11,791 11,791 - - -
Chemical Weapons Destruction....................... 2,942 2,942 - - -
Global Nuclear Security............................ 16,899 16,899 - - -
Cooperative Biological Engagement.................. 213,984 213,984 - - -
Proliferation Prevention........................... 50,709 50,709 - - -
Threat Reduction Engagement........................ 2,000 2,000 - - -
Other Assessments/Admin Costs...................... 27,279 27,279 - - -
----------------------------------------------------------------------------------------------------------------
TOTAL, COOPERATIVE THREAT REDUCTION................ 325,604 325,604 - - -
----------------------------------------------------------------------------------------------------------------

TITLE III

PROCUREMENT

The fiscal year 2017 Department of Defense procurement
budget request totals $101,916,357,000. The Committee
recommendation provides $104,200,570,000 for the procurement
accounts. The table below summarizes the Committee
recommendations:

REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

The Committee directs the Secretary of Defense to continue
to follow the reprogramming guidance as specified in the report
accompanying the House version of the Department of Defense
Appropriations bill, 2008 (House Report 110-279). Specifically,
the dollar threshold for reprogramming funds will remain at
$20,000,000 for procurement and $10,000,000 for research,
development, test and evaluation.
Also, the Committee directs the Under Secretary of Defense
(Comptroller) to continue to provide the congressional defense
committees quarterly, spreadsheet-based DD Form 1416 reports
for Service and defense-wide accounts in titles III and IV of
this Act. Reports for titles III and IV shall comply with the
guidance specified in the explanatory statement accompanying
the Department of Defense Appropriations Act, 2006. The
Department shall continue to follow the limitation that prior
approval reprogrammings are set at either the specified dollar
threshold or 20 percent of the procurement or research,
development, test and evaluation line, whichever is less. These
thresholds are cumulative from the Base for Reprogramming value
as modified by any adjustments. Therefore, if the combined
value of transfers into or out of a procurement (P-1) or
research, development, test and evaluation (R-1) line exceeds
the identified threshold, the Secretary of Defense must submit
a prior approval reprogramming to the congressional defense
committees. In addition, guidelines on the application of prior
approval reprogramming procedures for congressional special
interest items are established elsewhere in this report.

PROCUREMENT SPECIAL INTEREST ITEMS

Items for which additional funds have been provided as
shown in the project level tables or in paragraphs using the
phrase ``only for'' or ``only to'' in this report are
congressional special interest items for the purpose of the
Base for Reprogramming (DD Form 1414). Each of these items must
be carried on the DD Form 1414 at the stated amount
specifically addressed in the Committee report. These items
remain special interest items whether or not they are repeated
in a subsequent conference report.

FUNDING INCREASES

The Committee directs that the funding increases outlined
in these tables shall be provided only for the specific
purposes indicated in the tables.

CLASSIFIED ANNEX

Adjustments to the classified programs are addressed in a
classified annex accompanying this report.

AIRCRAFT PROCUREMENT, ARMY

Fiscal year 2016 appropriation........................ $5,866,367,000
Fiscal year 2017 budget request....................... 3,614,787,000
Committee recommendation.............................. 4,628,697,000
Change from budget request............................ +1,013,910,000

The Committee recommends an appropriation of $4,628,697,000
for Aircraft Procurement, Army which will provide the following
program in fiscal year 2017:

MISSILE PROCUREMENT, ARMY

Fiscal year 2016 appropriation........................ $1,600,957,000
Fiscal year 2017 budget request....................... 1,519,966,000
Committee recommendation.............................. 1,502,377,000
Change from budget request............................ -17,589,000

The Committee recommends an appropriation of $1,502,377,000
for Missile Procurement, Army which will provide the following
program in fiscal year 2017:

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

Fiscal year 2016 appropriation........................ $1,951,646,000
Fiscal year 2017 budget request....................... 2,265,177,000
Committee recommendation.............................. 2,244,547,000
Change from budget request............................ -20,630,000

The Committee recommends an appropriation of $2,244,547,000
for Procurement of Weapons and Tracked Combat Vehicles, Army
which will provide the following program in fiscal year 2017:

PROCUREMENT OF AMMUNITION, ARMY

Fiscal year 2016 appropriation........................ $1,245,426,000
Fiscal year 2017 budget request....................... 1,513,157,000
Committee recommendation.............................. 1,513,157,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $1,513,157,000
for Procurement of Ammunition, Army which will provide the
following program in fiscal year 2017:

AMMUNITION PRODUCTION BASE SUPPORT

The Army has reported that approximately $200,000,000 per
year is required to properly modernize and sustain the eight
government-owned, contractor-operated Army Ammunition Plants
(AAPs), many of which were built during World War II. The
Committee notes that the fiscal year 2017 budget request
actually exceeds this baseline investment, committing
$268,000,000 per year during the fiscal year 2017-2021 period.
Despite this commitment, significant safety, environmental, and
operational discrepancies exist among the four largest AAPs
that will require investments far above what is programmed
under the Army's modernization plan. The mismatch between
documented need and allotted investment calls into question the
adequacy of the Army's investment strategy and the analysis
used to determine required funding. The Committee therefore
directs the Secretary of the Army to reevaluate the AAP funding
investment model and the underlying recapitalization
assumptions in order to determine a more accurate steady-state
funding baseline for the fiscal year 2018 budget request.

OTHER PROCUREMENT, ARMY

Fiscal year 2016 appropriation........................ $5,718,811,000
Fiscal year 2017 budget request....................... 5,873,949,000
Committee recommendation.............................. 6,081,856,000
Change from budget request............................ +207,907,000

The Committee recommends an appropriation of $6,081,856,000
for Other Procurement, Army which will provide the following
program in fiscal year 2017:

COMBAT SUPPORT HOSPITAL INFRASTRUCTURE

The Committee supports the continued deployment and
modernization of the Army's combat support hospital and
recognizes the important goal of transitioning dated legacy
systems to rapidly erectable hospital infrastructure. Improving
and correcting safety and performance issues in the combat
support hospital legacy systems should take a high priority in
the equipment purchases of the Army Medical Department. The
Committee urges the Secretary of the Army to make modernization
and upgrade of combat support hospital deployable
infrastructure a priority, with continued focus on improving
the safety of legacy systems while upgrading their performance.

TACTICAL AUDITORY PROTECTION SYSTEMS

The Committee recognizes the importance of providing
soldiers with equipment that concurrently protects their
hearing and improves their auditory situational awareness,
making them more effective in combat while reducing the
incidence of noise-induced hearing loss. In light of the high
level of funding spent annually for veterans' hearing aids and
hearing disability compensation, the Committee views this
investment as prudent, and encourages the Secretary of the Army
to continue funding tactical auditory protection systems at
previously projected rates.

AIRCRAFT PROCUREMENT, NAVY

Fiscal year 2016 appropriation........................ $17,521,209,000
Fiscal year 2017 budget request....................... 14,109,148,000
Committee recommendation.............................. 15,900,093,000
Change from budget request............................ +1,790,945,000

The Committee recommends an appropriation of
$15,900,093,000 for Aircraft Procurement, Navy which will
provide the following program in fiscal year 2017:

NAVY RESERVE COMBAT AIRCRAFT

The Committee remains concerned that the aging aircraft of
the Navy Reserve Combat air fleet will further hamper the
mission of these vital tactical aviation squadrons. The Navy
Reserve squadrons provide critical adversary support and strike
fighter weapons training to active duty forces, and must
maintain a high mobilization readiness level for immediate
deployment in the event of war or national emergency.
The Committee has become aware that the Navy Reserve will
not be able to transition to F/A-18-E/F Super Hornets until
2034. However, the legacy F/A-18A-D aircraft they will rely
upon until then are rapidly nearing the end of their service
lives. The Secretary of the Navy has reported to the Committee
that the number of aircraft considered as out-of-reporting
status will increase from 53 percent in fiscal year 2015 to 67
percent by July 2016, as depots have been unable to achieve
production requirements. This puts a strain on both the reserve
squadrons and the active component squadrons that must augment
the fleet adversary support mission of the reserves. The
recommendation includes more than $1,350,000,000 for the
procurement of 16 F/A-18E/Fs and increases funding for Navy
aircraft depot maintenance to help alleviate these concerns.
The Committee directs the Secretary of the Navy, in
coordination with the Chief of the Navy Reserve, to submit a
report to the congressional defense committees not later than
90 days after the enactment of this Act that includes a three
year recapitalization and funding plan for the Navy Reserve F/
A-18 squadrons. The report should include the cost and schedule
for accelerating the fielding of new F/A-18E/F Super Hornets to
the Navy Reserve Combat air fleet and the benefits such a
replacement would provide. Additionally, the Committee believes
that the Secretary of the Navy should provide a sufficient
number of operational ready for tasking aircraft to the Navy
Reserve Combat air fleet to allow it to continue its mission.

WEAPONS PROCUREMENT, NAVY

Fiscal year 2016 appropriation........................ $3,049,542,000
Fiscal year 2017 budget request....................... 3,209,262,000
Committee recommendation.............................. 3,102,544,000
Change from budget request............................ -106,718,000

The Committee recommends an appropriation of $3,102,544,000
for Weapons Procurement, Navy which will provide the following
program in fiscal year 2017:

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

Fiscal year 2016 appropriation........................ $651,920,000
Fiscal year 2017 budget request....................... 664,368,000
Committee recommendation.............................. 601,563,000
Change from budget request............................ -62,805,000

The Committee recommends an appropriation of $601,563,000
for Procurement of Ammunition, Navy and Marine Corps which will
provide the following program in fiscal year 2017:

IMPROVED MUNITIONS ON NAVAL SURFACE COMBATANTS

The Committee is aware of the potential for improved
munitions for 5" guns on naval surface combatants. The
Committee directs the Secretary of the Navy to submit a report
to the congressional defense committees not later than 90 days
after the enactment of this Act that examines the types of
munitions that could be considered to improve the effectiveness
of the 5" guns. The report should include an analysis of the
effectiveness and utilization of current munitions and an
analysis of available munitions that may provide improvement in
distance and precision.

SHIPBUILDING AND CONVERSION, NAVY

Fiscal year 2016 appropriation........................ $18,704,539,000
Fiscal year 2017 budget request....................... 18,354,874,000
Committee recommendation.............................. 18,484,524,000
Change from budget request............................ +129,650,000

The Committee recommends an appropriation of
$18,484,524,000 for Shipbuilding and Conversion, Navy which
will provide the following program in fiscal year 2017:

CRUISER MODERNIZATION

The Committee is disappointed that the Navy's fiscal year
2017 budget request is once again attempting to renegotiate the
terms for the modernization of the 22 remaining Ticonderoga-
class cruisers. The position of this Committee, as well as the
entire Congress, is very clear and has been stated repeatedly
over the last four years. The Committee remains adamant that
the Navy will not lay up half of the remaining cruisers for an
extended period of time. The Navy's own stated requirement for
guided missile cruisers in the 30 year shipbuilding plan
remains steady at 22. The requirement is not for eleven
cruisers in an extended lay-up status while eleven others
continue to operate. The Secretary of the Navy has repeatedly
stated his desire to increase the size of the fleet, yet
placing half of the Navy's cruisers, the centerpiece of area
air defense for the Navy's carrier battlegroups, would seem to
contradict any desire to build up the fleet. Therefore, the
bill once again contains a provision that provides the
Secretary of the Navy explicit direction for how to conduct the
cruiser modernization program--no more than two cruisers may
enter a modernization period each year, the modernization
period for each cruiser may last no longer than four years, and
there can only be a maximum of six ships in a modernization
period at any one time. The Committee understands that the Navy
has sufficient funding remaining in the Ship Modernization,
Operations, and Sustainment Fund to further these efforts in
fiscal year 2017. Further, the Committee directs the Secretary
of the Navy to brief the congressional defense committees
quarterly on the status of each of the 22 Ticonderoga class
cruisers to ensure that these ships are being operated
appropriately and as a way for the committees to ensure that
the Navy is not attempting to sidestep the intent of the
committees by keeping the ships in extended alongside
availabilities.
Additionally, the Committee expects the Secretary of the
Navy to comply with these statutorily directed rules for
cruiser modernization in future budget submissions.

OTHER PROCUREMENT, NAVY

Fiscal year 2016 appropriation........................ $6,484,257,000
Fiscal year 2017 budget request....................... 6,338,861,000
Committee recommendation.............................. 6,099,326,000
Change from budget request............................ -239,535,000

The Committee recommends an appropriation of $6,099,326,000
for Other Procurement, Navy which will provide the following
program in fiscal year 2017:

PROCUREMENT, MARINE CORPS

Fiscal year 2016 appropriation........................ $1,186,812,000
Fiscal year 2017 budget request....................... 1,362,769,000
Committee recommendation.............................. 1,213,872,000
Change from budget request............................ -148,897,000

The Committee recommends an appropriation of $1,213,872,000
for Procurement, Marine Corps which will provide the following
program in fiscal year 2017:

AIRCRAFT PROCUREMENT, AIR FORCE

Fiscal year 2016 appropriation........................ $15,756,853,000
Fiscal year 2017 budget request....................... 13,922,917,000
Committee recommendation.............................. 14,325,117,000
Change from budget request............................ +402,200,000

The Committee recommends an appropriation of
$14,325,117,000 for Aircraft Procurement, Air Force which will
provide the following program in fiscal year 2017:

MQ-9 FLEET SIZE

The Committee notes the objective procurement quantity of
MQ-9 Reapers has declined from over 400 as recently as fiscal
year 2014 to 347 in the fiscal year 2017 budget request, and
the current plan does not include procurement of any further
MQ-9 aircraft after fiscal year 2017, despite an increasing
demand for intelligence, surveillance, and reconnaissance from
the combatant commanders and the attrition of at least 22
aircraft since 2009. The Committee understands that the Air
Force is currently conducting a new analysis of the objective
MQ-9 fleet, including an updated attrition model, and directs
the Secretary of the Air Force to report the results of this
study to the congressional defense committees not later than 30
days after its completion.

MISSILE PROCUREMENT, AIR FORCE

Fiscal year 2016 appropriation........................ $2,912,131,000
Fiscal year 2017 budget request....................... 2,426,621,000
Committee recommendation.............................. 2,288,772,000
Change from budget request............................ -137,849,000

The Committee recommends an appropriation of $2,288,772,000
for Missile Procurement, Air Force which will provide the
following program in fiscal year 2017:

SPACE PROCUREMENT, AIR FORCE

Fiscal year 2016 appropriation........................ $2,812,159,000
Fiscal year 2017 budget request....................... 3,055,743,000
Committee recommendation.............................. 2,538,152,000
Change from budget request............................ -517,591,000

The Committee recommends an appropriation of $2,538,152,000
for Space Procurement, Air Force which will provide the
following program in fiscal year 2017:

PROCUREMENT OF AMMUNITION, AIR FORCE

Fiscal year 2016 appropriation........................ $1,744,993,000
Fiscal year 2017 budget request....................... 1,677,719,000
Committee recommendation.............................. 1,609,719,000
Change from budget request............................ -68,000,000

The Committee recommends an appropriation of $1,609,719,000
for Procurement of Ammunition, Air Force which will provide the
following program in fiscal year 2017:

OTHER PROCUREMENT, AIR FORCE

Fiscal year 2016 appropriation........................ $18,311,882,000
Fiscal year 2017 budget request....................... 17,438,056,000
Committee recommendation.............................. 17,342,313,000
Change from budget request............................ -95,743,000

The Committee recommends an appropriation of
$17,342,313,000 for Other Procurement, Air Force which will
provide the following program in fiscal year 2017:

PROCUREMENT, DEFENSE-WIDE

Fiscal year 2016 appropriation........................ $5,245,443,000
Fiscal year 2017 budget request....................... 4,524,918,000
Committee recommendation.............................. 4,649,876,000
Change from budget request............................ +124,958,000

The Committee recommends an appropriation of $4,649,876,000
for Procurement, Defense-Wide which will provide the following
program in fiscal year 2017:

SM-3 BLOCK IB AND IIA INVENTORIES

The Committee is concerned by the continual erosion in
quantities programmed across the future years defense program
for SM-3 Block IB and SM-3 Block IIA production. After the
fiscal year 2015 and 2016 budgets substantially reduced the
quantity of SM-3 Block IB interceptors requested, Congress
added more than $340,000,000 to add back 31 interceptors to the
production line to maintain an economically efficient
production rate. The lack of an inventory objective for this
critical missile defense system makes it particularly
challenging for the congressional defense committees to assess
annual progress towards meeting warfighter requirements. The
Committee directs the Director of the Missile Defense Agency,
in coordination with the Secretary of the Navy, to establish
and report the inventory objective required to satisfy
warfighter requirements for the SM-3 Block IB and Block IIA
missile as part of the fiscal year 2018 and subsequent budget
requests.

DEFENSE PRODUCTION ACT

Fiscal year 2016 appropriation........................ $76,680,000
Fiscal year 2017 budget request....................... 44,065,000
Committee recommendation.............................. 74,065,000
Change from budget request............................ +30,000,000

The Committee recommends an appropriation of $74,065,000
for the Defense Production Act which will provide the following
program in fiscal year 2017:

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
[In thousands of dollars]
------------------------------------------------------------------------
Change from
Budget Committee Request
Request Recommended
------------------------------------------------------------------------
DEFENSE PRODUCTION ACT PURCHASES 44,065 74,065 30,000
Program increase............ 30,000
------------------------------------------------------------------------
TOTAL, DEFENSE 44,065 74,065 30,000
PRODUCTION ACT
PURCHASES..............
------------------------------------------------------------------------

DOMESTIC SUPPLY OF BERYLLIUM

The Committee recognizes the importance of the strategic
and critical material beryllium to national security. The
Committee is pleased that the Department of Defense began to
invest in a domestic beryllium manufacturing facility in 2004
to maintain the security of supply and the affordability of
beryllium for defense systems. The Committee encourages the
Secretary of Defense to continue to take affirmative steps to
maintain a secure, domestic source of beryllium and to consider
investing in improvements to make the production of domestic
beryllium more efficient and affordable.

TITLE IV

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

The fiscal year 2017 Department of Defense research,
development, test and evaluation budget request totals
$71,391,771,000. The Committee recommendation provides
$70,292,888,000 for the research, development, test and
evaluation accounts. The table below summarizes the Committee
recommendations:

REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

RESEARCH, DEVELOPMENT, TEST AND EVALUATION SPECIAL INTEREST ITEMS

FUNDING INCREASES

The Committee directs that the funding increases outlined
in these tables shall be provided only for the specific
purposes indicated in the tables.

CLASSIFIED ANNEX

Adjustments to the classified programs are addressed in a
classified annex accompanying this report.

JOINT STRIKE FIGHTER FOLLOW-ON DEVELOPMENT

The Committee notes that a recent report by the Government
Accountability Office (GAO) found that the cost and character
of follow-on development for the F-35 Joint Strike Fighter
(JSF), also known as Block 4, would require designation as a
Major Defense Acquisition Program (MDAP) if it were constituted
as a separate program rather than being managed within the
baseline of the overall JSF program. The GAO found that the
current management of follow-on development exposed this effort
to greater cost and schedule risk and potentially could
confound congressional oversight. The GAO recommended that the
Department of Defense manage follow-on development as a
separate and distinct MDAP. The Department did not concur with
this recommendation on the grounds that existing oversight
mechanisms and potential actions, such as an independent cost
estimate, would provide sufficient transparency and
accountability. The Committee believes that the quality of
information provided to the Congress is more important than the
formal designation of follow-on development as an MDAP or the
bureaucratic foundation that would be required to support its
management as such, as long as the Department is able and
willing to provide the information needed for congressional
oversight. Therefore, the Committee directs the Secretary of
Defense to submit, not later than 30 days after the submission
of the fiscal year 2018 budget request, a report to the
congressional defense committees on JSF follow-on development
containing information similar to that provided in a
comprehensive annual selected acquisition report, with
additional information as necessary to clarify the content,
scope, and phasing of the capabilities to be acquired for all
variants of the JSF. This report may be submitted with a
classified annex if necessary.

JOINT STRIKE FIGHTER AUTONOMIC LOGISTICS INFORMATION SYSTEM

The Committee remains concerned with the development of the
Autonomic Logistics Information System (ALIS) for the F-35
Joint Strike Fighter (JSF). ALIS has repeatedly been identified
by Department of Defense officials, congressional defense
committees, and the Government Accountability Office as a major
source of both developmental and operational risk for the JSF
program. The Committee understands that the F-35 Joint Program
Office is in the process of developing a ``Technical Roadmap''
for ALIS to inform the fiscal year 2018 budget request. The
Committee directs the Secretary of Defense to submit a report
to the congressional defense committees on the ``Technical
Roadmap'' not later than 30 days following its approval along
with the most recent cost estimates for ALIS.

JOINT STRIKE FIGHTER TEST AIRCRAFT

The Committee recommendation for Joint Strike Fighter
development includes $251,700,000, the same as the request, to
modify operational test aircraft to the Block 3F configuration
in support of initial operational test and evaluation (IOT&E).
The Committee expects that the Secretary of Defense will
allocate aircraft to support both developmental and operational
testing consistent with the approved Test and Evaluation Master
Plan. The Committee further urges the Secretary of Defense to
ensure that necessary modifications to operational test
aircraft will be given appropriate priority in the depot flow
plan to meet the IOT&E timeline.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

Fiscal year 2016 appropriation........................ $7,565,327,000
Fiscal year 2017 budget request....................... 7,515,399,000
Committee recommendation.............................. 7,864,517,000
Change from budget request............................ +349,118,000

The Committee recommends an appropriation of $7,864,517,000
for Research, Development, Test and Evaluation, Army which will
provide the following program in fiscal year 2017:

WARFIGHTER LETHALITY

The Committee is adamant that in a hostile environment
warfighters must enter a conflict with a decisive technical and
capability advantage. Due to world events including state
aggression, terrorism, and global weapons proliferation, in the
report accompanying the House-passed Department of Defense
Appropriations Act, 2015, the Committee directed the Secretary
of the Army to conduct a study focused on the status of lethal
mechanisms such as armament systems, munitions, and missiles.
The study identified numerous areas of concern including, but
not limited to, the loss of weapons range overmatch, reductions
in the use of area weapons, the proliferation of low-cost
commercially available unmanned aerial systems, urban scenarios
and associated humanitarian concerns, and sub-optimization of
weapon acquisition planning. The Committee commends the
Secretary of the Army's attention and action on the report's
findings and has provided resources for select mitigation
activities that can be conducted in the near-term. The
Committee directs the Secretary of the Army to establish and
advance armament systems integration capability through
existing capacity and mechanisms to advance and coordinate
armament systems development and effectiveness.

TECHNOLOGY ADVANCEMENT AND RETENTION CENTER

The Committee believes that automating and optimizing
ammunition propellant production processes such as those for
solvent-less and spherical propellants and integrating new
materials such as consumable structural materials will benefit
the Army's manufacture of conventional ammunition. Further, the
Committee believes that these processes and materials could
play a crucial role in reducing cost, increasing ammunition
performance, and enhancing soldier safety. The Committee
encourages the Secretary of the Army to equip the national
technical industrial base with these manufacturing processes
and materials.

ARMY NET ZERO INDUSTRIAL BASE TECHNOLOGY PROGRAM

The Committee supports the research, development, and
demonstration of advanced technologies to increase the Army's
ability to address its Net Zero Energy, Water, and Solid Waste
Policy and enhance the sustainable operation of its industrial
munitions base.

ENVIRONMENTAL CONTROL UNITS

The Committee recognizes that a significant amount of fuel
used at forward operating bases is consumed by environmental
control units that keep servicemembers and major electronic
systems cool in austere environments. The Committee encourages
the Secretary of the Army to consider determining the potential
efficiency that could be created through the use of enclosure-
sized environmental control units and systems. An evaluation
between distributed cooling and legacy approaches to compare
the size, weight, power, purchase, and overall operational
costs would provide the Army with information that could yield
fuel and operational cost savings, as well as more efficient
ways to cool servicemembers and electronics.

ADVANCED LIGHTWEIGHT MULTIFUNCTIONAL TRANSPARENT ARMOR

The Committee encourages the Secretary of the Army to
consider the development of advanced lightweight
multifunctional transparent armor material for facial shields,
goggles, spectacles, and other solider protection gear.

MULTI-ROLE ARMAMENT SYSTEMS

The Committee notes that the Army's combat vehicle
modernization strategy has identified requirements for greater
lethality for existing combat vehicles, in developing new
platforms, and in maintaining technical superiority. The Army's
modification of combat vehicles over the years has resulted in
additional protection at the expense of mobility, and lagging
increases in lethality. The Committee urges the Secretary of
the Army to develop new armament systems for both current and
future combat vehicles that will provide lethality overmatch as
well as the ability to defeat multiple target sets, active
protection systems, and lethal and non-lethal capability within
the same weapon system.

ACCESS TO CONTESTED AREAS

The Committee notes that many potential adversaries have
established anti-access and area denial measures. To facilitate
access to contested areas, the Committee encourages the
Secretary of the Army to focus on developing capabilities that
can be airdropped into contested areas, operated in GPS-denied
environments, and that can survive an initial fight until
heavier reinforcements become available. The Committee
encourages the Secretary of the Army to consider the
development of lighter platforms that have the lethality of the
Abrams tank but can be airdropped, as well as armed robotic
platforms that are deployable with manned platforms.

SUBTERRANEAN AND DENSE URBAN COMPLEX ENVIRONMENT

The Army Research Development Engineering Center (ARDEC) is
the lead for dense urban warfare materiel solutions and has the
responsibility to coordinate and demonstrate materiel solutions
that are responsive to warfighting challenges that impede
operations. The Committee understands that numerous challenges
exist that impede operations and encourages the Director of the
ARDEC to adapt existing technologies to subterranean hard
target defeat needs, to support experimentation of technologies
to disable and neutralize underground facilities and their
associated components, and to demonstrate new emerging
technologies to enable delivery of effects in dense urban
environments.

ADVANCED ENERGETICS

The Committee urges the Secretary of the Army to
demonstrate, through application of novel manufacturing pilot
processes, next generation insensitive energetic materials
enabling increased gun-launched munition performance to achieve
longer ranges and increased terminal effects against a spectrum
of threats.

DIRECTED ENERGY ARMAMENT SYSTEMS

The Committee understands that the Air Force and the Navy
are currently investing in high energy laser directed energy
programs. Accordingly, the Army should also consider investing
in directed energy capabilities for both combat vehicles and
dismounted soldiers. Existing Army work in this area is
targeted at high power systems on large ground platforms that
lack mobility and may not be available as an organic asset to
companies and below, to include dismounted soldiers. The
Committee encourages the Secretary of the Army to invest in
reducing the size, weight, power, and cost for these directed
energy systems and to focus on integrating them into existing
or future combat and tactical vehicles, as well as individual
soldier weapon systems.

IMPROVED TURBINE ENGINE PROGRAM

The Committee commends the Army for moving forward with the
research and development phase of the Improved Turbine Engine
program and encourages the Secretary of the Army to examine
options to accelerate the development and fielding of this
critical aviation modernization program.

ACTIVE RESPONSE TO UNDERBODY EXPLOSIONS

The Committee is aware of the development of technology to
detect and autonomously respond to vehicle underbody explosive
incidents with an active real-time response to counter vehicle
flight, and to reduce the physical effects on vehicle occupants
through a cooperative research and development agreement
between industry and the Army. The Committee directs the
Secretary of the Army to continue testing this technology,
including with the use of explosive testing, through available
funds, and to submit a report to the congressional defense
committees not later than March 31, 2017 on the progress and
results of these tests.

BALLISTIC RESISTANT ADAPTIVE SEATING SYSTEM

The Committee understands that helicopter pilots and
aircrew members have reported back pain and increased fatigue
while flying, which reduces their effectiveness and affects
safety. Additionally, with more military specialties open to
females, a number of pilots are flying in seats that do not fit
their physical geometry. Therefore, the Committee
recommendation provides $7,000,000 above the request for the
Ballistic Resistant Adaptive Seating System program in order to
accelerate prototype fabrication and destructive testing of
adaptive seats.

TECHNOLOGIES TO DELAY RIPENING

The Committee is aware of the development of entirely
natural food applications that can be kept at room temperature,
thereby negating the need for refrigeration. This technology
can help extend the ripening process and shelf-life of combat
rations for servicemembers, thereby controlling cost and
improving quality. The Committee encourages the Secretary of
the Army to continue to invest in this technology.

MATERIALS AND METALS PROCESSING SCIENCE AND ENGINEERING

The Committee supports continued expansion of the Army
Research Laboratory's (ARL) efforts in research, education, and
technology development in materials and metals processing
science and engineering. These investments have the potential
to accelerate transformation of the affordability, performance,
and environmental sustainability of strategic materials vital
to national security. The Committee values ARL's recent
expansion of its open campus concept to materials and
manufacturing science laboratories and encourages such
collaborations with the academic community and industry.

LIGHTWEIGHT COMBAT VEHICLE COMPONENTS

The Committee acknowledges that incorporating alternative
materials into combat vehicle components may offer an
opportunity to significantly reduce the weight of the vehicle,
thereby extending the service life of the vehicle. The
Committee encourages the Commanding General of the United
States Army Tank Automotive Research, Development and
Engineering Center to continue to test, develop, and field
components that can reduce vehicle weight, reduce fuel
consumption, increase payload capacity, and extend service
life.

SILICON CARBIDE POWER ELECTRONICS

The Committee supports the Army's investment to advance
power and energy technology to meet requirements for higher
electric power loads at forward operating bases through
efficient generators, to extend silent watch capabilities for
ground vehicles, and to improve vehicle performance. Silicon
carbide power modules may be an enabling technology that meets
Army requirements for power distribution and management for
generator and battery systems. The Committee urges the
Secretary of the Army to support demonstration and deployment
of silicon carbide power electronics.

PROTECTED SATELLITE COMMUNICATIONS CAPABILITY

The Committee understands that the Army is pursuing a
protected satellite communications (SATCOM) capability and that
an interim software-only solution could be implemented with
wideband global SATCOM system certification within two years.
The Committee is concerned the fiscal year 2017 budget request
may not be sufficient to maintain the current program execution
plan over the future years defense program. Lack of sufficient
funding could derail required hardware and software efforts and
hinder near-term progress on an anti-jam solution. Therefore,
the Committee directs the Secretary of the Army to submit a
report to the congressional defense committees not later than
60 days after the enactment of this Act on the technical and
budgetary feasibility for continuing this effort, including an
assessment of the capability in enterprise and tactical
communications networks. Furthermore, the Secretary is urged to
consider prioritizing funding for these capabilities in future
budgets.

ADVANCED MULTI-PURPOSE VEHICLE

The Committee recognizes the priority that the Army is
placing on the Advanced Multi-Purpose Vehicle (AMPV) program
and fully supports the fiscal year 2017 budget request of
$184,200,000 to move forward with prototype testing. Given the
importance of the AMPV program, the total estimated program
cost of $10,200,000,000, and the Army's troubled acquisition
record in new start modernization programs, the Committee
directs the Secretary of the Army to submit a report to the
congressional defense committees not later than 90 days after
the enactment of this Act, and quarterly thereafter, with
updates on cost and schedule metrics and the vehicle's
performance in meeting established performance requirements.

SCIENCE AND TECHNOLOGY REINVENTION LABORATORIES

The Committee acknowledges the unique, valuable
contributions of the Department of Defense Science and
Technology Reinvention Laboratories (STRL) to the national
technology base. As such, the Committee believes that each STRL
must be able to accept and execute funding from other STRLs,
Department of Defense organizations, government agencies,
industry, and academia.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

Fiscal year 2016 appropriation........................ $18,117,677,000
Fiscal year 2017 budget request....................... 17,276,301,000
Committee recommendation.............................. 16,831,290,000
Change from budget request............................ -445,011,000

The Committee recommends an appropriation of
$16,831,290,000 for Research, Development, Test and Evaluation,
Navy which will provide the following program in fiscal year
2017:

CONDITION-BASED MAINTENANCE FOR NAVY SHIPS

The Committee is encouraged that the Navy continues to
develop and implement condition-based maintenance solutions
that will likely provide demonstrable improvements in fleet
readiness. The Committee encourages the Secretary of the Navy
to learn from and adapt the successes of the Littoral Combat
Ship condition-based maintenance efforts to other classes of
ships with aging weapons systems, such as the Aegis class
cruisers and destroyers.

NAVY UNMANNED AERIAL VEHICLE DEVELOPMENT

The Committee understands that the Navy is continuing to
restructure and refine its requirements for unmanned aerial
vehicles that can be launched and recovered aboard aircraft
carriers and are mission survivable in anti-access, area-denied
environments. The Committee encourages the Secretary of the
Navy to examine and invest in already proven technologies that
can host a variety of payloads, including communications,
electronic attack, and strike capability.

MARINE CORPS PERFORMANCE AND RESILIENCY PROGRAM

The Committee is aware of the Marine Corps Performance and
Resiliency program and encourages the Secretary of the Navy to
continue to invest in integrated research in injury
rehabilitation, nutrition, and neurocognition to improve
recovery outcomes. The Committee believes that particular
attention should be given to the readiness of combat support
Marines and that there should be a plan to transition lessons
learned from the Performance and Resiliency program to the
Director of the Defense Health Agency for Department-wide
application of prevention management, performance, and
rehabilitation strategies.

COASTAL ENVIRONMENTAL RESEARCH

The Committee understands the importance of the littoral
region to Navy operations worldwide. The Committee believes
that additional research of the magnetic and electric field
characteristics in coastal ocean regions and the development of
predictive techniques to distinguish ships and submarines from
naturally occurring background features would be beneficial for
littoral operations. The Committee encourages the Secretary of
the Navy to conduct additional research in this critical area.

ACTIVE PROTECTION SYSTEMS FOR MARINE CORPS VEHICLES

The Committee is concerned with the growing threat to the
warfighter from inexpensive shoulder-launched munitions such as
rocket-propelled grenades and commends the Secretary of the
Army for initiating the acquisition and testing of active
protection systems that provide a higher level of survivability
against these threats for Army ground vehicles. The Committee
recommendation includes an additional $10,000,000 in overseas
contingency operations/global war on terrorism funding to
advance the development and testing of active protection
systems. In addition, the Committee notes that the Marine Corps
is currently leveraging Army investments on the Abrams tanks,
and directs the Secretary of the Navy to consider conducting
similar demonstrations on other Marine Corps ground vehicles.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

Fiscal year 2016 appropriation........................ $25,217,148,000
Fiscal year 2017 budget request....................... 28,112,251,000
Committee recommendation.............................. 27,106,851,000
Change from budget request............................ -1,005,400,000

The Committee recommends an appropriation of
$27,106,851,000 for Research, Development, Test and Evaluation,
Air Force which will provide the following program in fiscal
year 2017:

JOINT SURVEILLANCE TARGET ATTACK RADAR SYSTEM RECAPITALIZATION

The Committee is concerned by further delays in the
acquisition schedule for the recapitalization of the E-8 Joint
Surveillance Target Attack Radar System (JSTARS) fleet. The
Committee is also concerned by direction from the Office of the
Secretary of Defense that would appear to contemplate further
delays to entering the engineering and manufacturing
development phase of the program based on progress in radar
risk reduction.
The Committee urges the Secretary of Defense and the
Secretary of the Air Force to avoid any further slips to the
present schedule. The Committee recommends that the Secretary
of the Air Force adopt a clear size, weight, power, and cooling
requirement based on data and analysis that takes into account
both prior experience on past acquisition programs and the
present state of technology. The Committee also recommends that
the Secretary of the Air Force consider an increase in the
number of developmental aircraft and utilize a contracting
method that will incentivize the prime contractor to accelerate
delivery of JSTARS recap aircraft and expedite the achievement
of initial operating capability, which is currently projected
to occur in fiscal year 2024. In order to preclude further
delays to the program, the Committee recommendation includes a
provision that prohibits the obligation or expenditure of
JSTARS recapitalization program funds for pre-milestone B
activities, including radar technology maturation and risk
reduction, beyond December 31, 2017.
Finally, in order to preserve JSTARS capability for the
combatant commanders during the transition to a recapitalized
fleet, the Committee also recommends an increase of $19,700,000
above the budget request to complete modifications to the
primary mission equipment of the existing operational E-8
JSTARS fleet. A recent report from the Air Force noted that two
aircraft have not received these modifications solely due to
budget restraints and that these modifications are essential to
ensuring continued JSTARS mission relevance in the near term.

PRESIDENTIAL AIRCRAFT REPLACEMENT

The Committee includes $351,220,000, the same as the budget
request, for the continued development of the Presidential
Aircraft Replacement (PAR). The Committee directs the Secretary
of the Air Force to provide a quarterly briefing on the PAR
program to the congressional defense committees. The first such
brief shall be provided not later than 30 days following the
end of the fourth quarter of fiscal year 2016.

IMPROVED GLOBAL POSITIONING SYSTEM RECEIVERS

The fiscal year 2017 budget request includes funds to
integrate improved military global positioning system (GPS)
receivers with various Air Force weapon systems and munitions.
The Committee acknowledges the need for this improvement but is
concerned about the coherence of these multiple efforts and the
Air Force's ability to properly execute the funding that has
been requested. Therefore, the Committee recommends a reduction
in funding for these efforts pending further information. The
Committee directs the Secretary of the Air Force to review the
execution plan for improved military GPS receivers and brief
the House and Senate Appropriations Committees on the results
of this review not later than September 15, 2016.

SPACE BASED INFRARED SYSTEM

The Committee continues to be concerned that the Space
Based Infrared System (SBIRS) program of record continues to
develop new payload technology without an approved future
systems architecture. Further, the Committee is troubled that
the SBIRS analysis of alternatives for a future system does not
benefit from clearly defined roles and responsibilities within
the Overhead Persistent Infrared family of systems to determine
what requirements any new system should meet. The analysis of
alternatives also lacks a full review of resiliency
requirements and the risks associated with transitioning to any
new architecture. Therefore, the Committee directs the
Secretary of the Air Force to brief the congressional defense
and intelligence committees on the findings from the post
analysis of alternatives actions and reduces funding for
Evolved SBIRS by $20,000,000.

SATELLITE COMMUNICATIONS

The Committee is troubled that the Department of Defense
does not have a unified satellite communications (SATCOM)
architecture, to include the purchase of commercial services,
with one organization responsible for lead planning and
budgeting. Further, the Services and various components of the
Office of the Secretary of Defense appear at odds with one
another when planning for future space, ground, and user
equipment systems. Though the Committee is encouraged by the
progress made by the Principal Department of Defense Space
Advisor, it appears that the Department continues to
independently plan each major piece of the architecture,
thereby sub-optimizing capability, performance, and
affordability. The Committee encourages the Secretary of
Defense to consolidate SATCOM planning and budget authority
into one entity and reduces funding for Evolved Advanced
Extremely High Frequency by $30,000,000.

WEATHER SATELLITE FOLLOW-ON

The Committee is concerned that the Department of Defense
lacks sufficient focus and planning capability to efficiently
and affordably meet weather data collection requirements. Five
near-term capability gaps exist, two of which the Air Force has
no approved plan for remediation. Remediation of the remaining
three gaps relies upon building and launching a demonstration
satellite to determine if sufficient technological maturation
exists to meet collection requirements. If successful, the Air
Force plans to launch a free flying interim satellite at
significant cost until a long-term plan is designed.
Unfortunately, there is no formal effort underway to design a
baseline system, including utilizing applicable federal and
international partnerships, that is capable of meeting all
weather data collection requirements. Therefore, the Committee
reduces the fiscal year 2017 budget request by $30,000,000.

ANTENNA RESEARCH

The Committee is aware that the Air Force has funded
research in deployable and reconfigurable multifunctional
antennas. The Committee encourages the Director of the Air
Force Office of Scientific Research to partner with academic
institutions capable of advancing technologies with a
potentially transformational impact on important applications
for military use, such as expandable antennas for satellite
communications and collapsible antennas that can benefit ground
personnel by reducing the weight and footprint of antennas.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

Fiscal year 2016 appropriation........................ $18,695,955,000
Fiscal year 2017 budget request....................... 18,308,826,000
Committee recommendation.............................. 18,311,236,000
Change from budget request............................ +2,410,000

The Committee recommends an appropriation of
$18,311,236,000 for Research, Development, Test and Evaluation,
Defense-Wide which will provide the following program in fiscal
year 2017:

MANUFACTURING INNOVATION INSTITUTE FOR HIGH TEMPERATURE SUPERCONDUCTORS

The Committee notes that high temperature superconductors
offer the potential to reduce the magnetic signature of Navy
warships, to accelerate the use of motors and generators for
all-electric ships and aircraft, to develop minesweeping
magnets, and to create magnetic energy storage systems and rail
guns. The Committee urges the Secretary of Defense to consider
establishing a Manufacturing Innovation Institute that focuses
on high temperature superconductors.

UNITED STATES-ISRAELI ANTI-TUNNELING TECHNOLOGY

In fiscal year 2016 the United States and Israel jointly
initiated the development of a system to detect tunnels built
by its enemies, in an effort to prevent future terrorist
incursions on the Israeli border. This new system may also have
an application in curbing illegal migration on United States
borders.
Of the funding provided in fiscal year 2016, Israel
promised to match contributions with a combination of actual
funding and in-kind contributions of up to the appropriated
level of $40,000,000. For fiscal year 2017, the Israeli
government has requested and the Committee recommendation
provides an additional $42,700,000 to continue this effort.
The Committee understands that when practical, every effort
will be made to complete portions of this research that are
better accomplished in the United States by United States
vendors and military research and development centers.

NATIONAL SECURITY EDUCATION PROGRAM

The Committee supports the Department of Defense and
Intelligence Community's partnerships with institutions of
higher education to ensure an adequate level of servicemembers
maintain proficiency in critical languages. The Committee
believes that these efforts should include minority serving
institutions, such as Historically Black Colleges and
Universities and Hispanic Serving Institutions, to ensure
diversity within the Intelligence Community and to increase the
number of analysts with proficiency in critical languages and
cultural studies, including Russian, Chinese, Farsi, Arabic,
and Turkish.

ACCESS TO TRUSTED MICROELECTRONICS

The Committee is concerned by the risk that reliance on
foreign suppliers of critical information technology components
and suppliers with connections to foreign governments poses.
However, the Committee is aware of efforts the Department of
Defense has initiated to address concerns with access to
microelectronics from trusted sources. The fiscal year 2017
budget request includes funding for a multi-faceted approach
designed to protect microelectronics designs and intellectual
property, while at the same time enabling access to advanced
technology from the commercial sector. The Committee is
encouraged by the Department's engagement with industry,
academia, national laboratories, and other government agencies
to both implement near-term actions and develop a long-term
science and technology based approach that reduces risk of
reliance on sole source foundry operations.
The Committee believes that the Department has
appropriately scoped and adequately funded this effort. The
consolidation of the Department of Defense Trusted Foundry
contract management efforts at the Defense Microelectronics
Activity effectively preserves the organization's role, while
at the same time initiates development of a new trust approach
to shift away from the traditional trust model. This provides a
sensible and affordable investment strategy that will enable
United States intelligence and weapons systems to remain secure
and technologically advanced. The Committee encourages the
Secretary of Defense to inform the congressional defense
committees of issues with foreign suppliers of critical
information technology components and progress on the
implementation of the new trust approach.

HIGH ENERGY LASERS

The Committee is aware of efforts within the High Energy
Laser Joint Technology Office to develop advanced, directed-
energy, high energy laser weapons that have the potential to
perform a wide variety of military missions. The Committee
encourages the Secretary of Defense to explore further
development and evaluation of this important technology.

STEM IMPROVEMENT WITHIN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
AND MINORITY SERVING INSTITUTIONS

The Committee remains concerned about the long-term
development of the Science, Technology, Engineering and
Mathematics (STEM) workforce pipeline for underrepresented
minorities. The Committee encourages the Secretary of Defense
to emphasize STEM education improvement within the Historically
Black Colleges and Universities and Minority Serving
Institutions, Tribal and Native American Colleges, and Hispanic
Colleges and Universities, and to focus on increasing the
participation of minority students through engaged mentoring,
enriched research experiences, and opportunities to publish,
present, and network. The Committee encourages the Secretary of
Defense to consider these factors when awarding competitive
funding under this program to expand STEM opportunities for
underrepresented minorities.

OPERATIONAL TEST AND EVALUATION, DEFENSE

Fiscal year 2016 appropriation........................ $188,558,000
Fiscal year 2017 budget request....................... 178,994,000
Committee recommendation.............................. 178,994,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $178,994,000
for Operational Test and Evaluation, Defense which will provide
the following program in fiscal year 2017:

TITLE V

REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS

Fiscal year 2016 appropriation........................ $1,738,768,000
Fiscal year 2017 budget request....................... 1,371,613,000
Committee recommendation.............................. 1,371,613,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $1,371,613,000
for the Defense Working Capital Funds accounts which will
provide the following program in fiscal year 2017:

TITLE VI

OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

Fiscal year 2016 appropriation........................ $32,329,490,000
Fiscal year 2017 budget request....................... 33,467,516,000
Committee recommendation.............................. 33,576,563,000
Change from budget request............................ +109,047,000

The Committee recommends an appropriation of
$33,576,563,000 for the Defense Health Program which will
provide the following program in fiscal year 2017:

REPROGRAMMING GUIDANCE FOR THE DEFENSE HEALTH PROGRAM

The Committee remains concerned regarding the transfer of
funds from the In-House Care budget sub-activity to pay for
contractor-provided medical care. To limit such transfers and
improve oversight within the Defense Health Program operation
and maintenance account, the Committee includes a provision
which caps the funds available for Private Sector Care under
the TRICARE program subject to prior approval reprogramming
procedures. The provision and accompanying report language
should not be interpreted as limiting the amount of funds that
may be transferred to the In-House Care budget sub-activity
from other budget sub-activities within the Defense Health
Program. In addition, funding for the In-House Care budget sub-
activity continues to be designated as a congressional special
interest item. Any transfer of funds from the In-House Care
budget sub-activity into the Private Sector Care budget sub-
activity or any other budget sub-activity requires the
Secretary of Defense to follow prior approval reprogramming
procedures for operation and maintenance funds.
The Committee remains concerned that transfers of funds
from the Private Sector Care budget sub-activity often occur
without the submission of written notification as required by
prior year Department of Defense Appropriations Acts. The
Committee directs the Secretary of Defense to provide written
notification to the congressional defense committees of
cumulative transfers in excess of $10,000,000 out of the
Private Sector Care budget sub-activity not later than fifteen
days after such a transfer. Furthermore, the Committee directs
the Secretary of Defense to provide a report to the
congressional defense committees not later than 30 days after
the enactment of this Act that delineates transfers of funds,
and the dates any transfers occurred, from the Private Sector
Care budget sub-activity to any other budget sub-activity for
fiscal year 2016.
The Committee further directs the Assistant Secretary of
Defense (Health Affairs) to provide quarterly reports to the
congressional defense committees on budget execution data for
all of the Defense Health Program budget activities and to
adequately reflect changes to the budget activities requested
by the Services in future budget submissions.

CARRYOVER

For fiscal year 2017, the Committee recommends one percent
carryover authority for the operation and maintenance account
of the Defense Health Program. The Committee directs the
Assistant Secretary of Defense (Health Affairs) to submit a
detailed spending plan for any fiscal year 2016 designated
carryover funds to the congressional defense committees not
less than 30 days prior to executing the carryover funds.

PEER-REVIEWED CANCER RESEARCH PROGRAMS

The Committee recommends $120,000,000 for the peer-reviewed
breast cancer research program, $90,000,000 for the peer-
reviewed prostate cancer research program, $20,000,000 for the
peer-reviewed ovarian cancer research program, $10,000,000 for
the peer-reviewed kidney cancer research program, $12,000,000
for the peer-reviewed lung cancer research program, and
$30,000,000 for the peer-reviewed cancer research program that
would research cancers not addressed in the aforementioned
programs currently executed by the Department of Defense.
The funds provided in the peer-reviewed cancer research
program are directed to be used to conduct research in the
following areas: bladder cancer, brain cancer, colorectal
cancer, listeria vaccine for cancer, liver cancer, lymphoma,
melanoma and other skin cancers, mesothelioma, pancreatic
cancer, stomach cancer, and cancer in children, adolescents,
and young adults.
The funds provided under the peer-reviewed cancer research
program shall be used only for the purposes listed above. The
Committee directs the Assistant Secretary of Defense (Health
Affairs) to provide a report not later than 180 days after the
enactment of this Act to the congressional defense committees
on the status of the peer-reviewed cancer research program. For
each research area, the report should include the funding
amount awarded, the progress of the research, and the relevance
of the research to servicemembers and their families.
The Committee commends the Department of Defense for
ensuring that projects funded through the various peer-reviewed
cancer research programs maintain a focus on issues of
significance to military populations and the warfighter. This
includes promoting collaborative research proposals between
Department of Defense researchers and non-military research
institutions. These collaborations leverage the knowledge,
infrastructure, and access to clinical populations that the
partners bring to the research effort. Additionally, promoting
these collaborations provides a valuable recruitment and
retention incentive for military medical and research
personnel. The Committee encourages the Assistant Secretary of
Defense (Health Affairs) to continue to emphasize the
importance of these collaborations between military and non-
military researchers throughout the peer review process.

PEER-REVIEWED BREAST CANCER RESEARCH PROGRAM

The Committee is encouraged by ongoing efforts within the
Defense Health Program to research breast cancer. Recent
medical journals have described the promise of immunotherapy in
combating several forms of metastatic cancer and as such, the
Committee encourages the Assistant Secretary of Defense (Health
Affairs) to investigate immunotherapeutic vaccines for the
treatment of metastatic breast cancer, prioritizing efforts
that have already shown success.

METASTATIC CANCER RESEARCH

The Committee continues to support the establishment of a
task force to research metastasized cancer with a focus on
clinical and translational research aimed at extending the
lives of advanced state and recurrent patients. The Committee
directs the Assistant Secretary of Defense (Health Affairs) to
submit an updated report to the congressional defense
committees not later than 60 days after the enactment of this
Act on the status of the establishment of a task force under
the Congressionally Directed Medical Research Program to focus
on research for metastatic cancer of all types.

JOINT WARFIGHTER MEDICAL RESEARCH PROGRAM

The Committee recommendation includes $30,000,000 for the
continuation of the joint warfighter medical research program.
The funding shall be used to augment and accelerate high
priority Department of Defense and Service medical requirements
and to continue prior year initiatives that are close to
achieving their objectives and yielding a benefit to military
medicine. The funding shall not be used for new projects nor
for basic research, and it shall be awarded at the discretion
of the Secretary of Defense following a review of medical
research and development gaps as well as unfinanced medical
requirements of the Services. Further, the Committee directs
the Assistant Secretary of Defense (Health Affairs) to submit a
report not later than 180 days after the enactment of this Act
to the congressional defense committees that lists the projects
that receive funding. The report should include the funding
amount awarded to each project, a thorough description of each
project's research, and the benefit the research will provide
to the Department of Defense.

ELECTRONIC HEALTH RECORDS

The Committee continues to be concerned about the pace at
which the Departments of Defense and Veterans Affairs have
developed and procured an interoperable electronic health
records solution. The Committee reiterates that the two systems
must be completely and meaningfully interoperable and
encourages the Under Secretary of Defense (Acquisition,
Technology, and Logistics) to focus on the overall goal of
seamless compatibility between the two Departments' electronic
health record systems. Furthermore, the Committee directs the
Director of the Interagency Program Office (IPO) to continue to
provide quarterly reports on the progress of interoperability
between the two Departments to the House and Senate Defense
Appropriations Subcommittees and the House and Senate Military
Construction, Veterans Affairs, and Related Agencies
Appropriations Subcommittees. Additionally, the Program
Executive Officer (PEO) for Defense Healthcare Management
Systems (DHMS), in conjunction with the Director of the IPO, is
directed to provide quarterly reports to the congressional
defense committees on the cost and schedule of the program, to
include milestones, knowledge points, and acquisition
timelines, as well as quarterly obligation reports. The
Committee directs the PEO DHMS to continue briefing the House
and Senate Defense Appropriations Subcommittees on a quarterly
basis, coinciding with the report submission.

MENTAL HEALTH OF MILITARY DEPENDENTS

The Secretary of Defense has indicated that military
dependents are at a higher risk of depression and pediatric
behavioral issues compared to the general population, and that
further research to improve military dependent psychological
health issues is needed to continue the adaptation and
development of appropriate evidence-based interventions and
targeted therapies. In fiscal year 2016, the Committee directed
the Secretary of Defense to fully fund a program to address
this issue starting in fiscal year 2017. While the fiscal year
2017 budget request includes robust funding for mental health
care, the budget request fails to identify funding that
satisfies the fiscal year 2016 requirement. It is imperative
that the Department develop efficient means to identify
children at risk of deployment-related mental health issues and
to provide tools, education, and guidance to the professionals
and families caring for these children. Therefore, the
Committee directs the Secretary of Defense to develop a program
to address this issue and to brief the House and Senate
Appropriations Committees not later than 90 days after the
enactment of this Act on the steps that will be taken in fiscal
year 2017 to address the fiscal year 2016 requirement.

THE CANCER CENTER AT WALTER REED NATIONAL MILITARY MEDICAL CENTER

The Committee recognizes the close cooperation between The
John P. Murtha Cancer Center at Walter Reed National Military
Medical Center and the Assistant Secretary of Defense (Health
Affairs) that has enabled the expedited completion of a
partnership agreement between the Murtha Cancer Center and the
Oncology Research Information Exchange Network. This new
relationship between these two programs will further advance
research at the Murtha Cancer Center through the enhanced use
of patient data derived from large patient studies that include
long-term health records, bio specimen repositories, and
research collaborations involving major academic cancer
centers. The Committee commends the Assistant Secretary of
Defense (Health Affairs) for assisting the Murtha Cancer Center
in completing this agreement and strongly encourages increased
support to allow for rapid enrollment of patients and
collaboration on research initiatives toward the goal of
enhanced cancer treatment for all servicemembers and their
families.

EMERGING INFECTIOUS DISEASES

The Committee understands that the impact of infectious
diseases on servicemembers can be significant, including lost
service time, reduction in operational readiness, and an
increased logistical burden to provide replacement troops. The
Department of Defense's critical role in the swift response to
viral outbreaks of Ebola and Zika demonstrates the value of
continued investment in military infectious disease research
and development capabilities. The Committee encourages the
Assistant Secretary of Defense (Health Affairs) to pursue
partnerships with colleges and universities that have strong
research programs in emerging infectious diseases and to
support research efforts that incorporate genomic technologies,
bioinformatics, and computational biology.

MULTI-DISCIPLINARY BRAIN RESEARCH

The Committee recognizes recent efforts by the Department
of Defense to leverage partnerships with academia and the
private sector to understand and improve prevention and
treatment of traumatic brain injuries to servicemembers. The
Committee encourages the Assistant Secretary of Defense (Health
Affairs) to continue to leverage partnerships with academia and
the private sector and to support further studies of traumatic
brain injuries to gain a deeper understanding of concussive
injuries including how they impact the brain, how and to what
extent the brain recovers, and how prevention and treatment
methods may be improved.

IMPACT OF GUT MICROBIOME ON CHRONIC CONDITIONS

Recent research suggests that levels of microbiota can
affect a patient's overall health. The Committee is aware that
the Defense Health Agency plans to investigate the impact of
gut microbiome on warfighter readiness and performance in
fiscal year 2017. The Committee encourages the Director of the
Defense Health Agency to also investigate the impact of gut
microbiome on long-term chronic conditions such as heart
disease, kidney disease, and hypertension.

COMBAT OCULAR TRAUMA

The Committee is concerned about incidents of combat ocular
trauma, which is an injury to the eye or neuro-ophthalmological
pathways. These injuries often result in severe vision loss and
visual dysfunction. Therefore, the Committee encourages the
Assistant Secretary of Defense (Health Affairs) to evaluate the
effectiveness and safety of treatments such as transcorneal
electrical stimulation to improve visual function after ocular
trauma.

EXPANDED CANINE THERAPY RESEARCH

The Committee is aware that canine therapy for treatment of
post-traumatic stress disorder (PTSD) and traumatic brain
injury (TBI) symptoms is a promising alternative or adjunct to
pharmaceutical treatment, which can have harmful side-effects.
While still experimental, canine therapy has shown
effectiveness in treating PTSD and other psychological
disorders, from hospitalized psychiatric patients to children
with developmental disorders, patients with substance abuse
problems, and victims of trauma. The Committee notes that
canine therapy is a promising area for further research as a
complementary or alternative treatment for the signature wounds
sustained in ongoing conflicts. Therefore, the Committee
continues to encourage the Service Surgeons General to initiate
or expand their research into canine therapy to validate its
therapeutic effectiveness in the treatment of PTSD and TBI.

WATER SAFETY ON MILITARY BASES

The Committee is concerned about actual and potential
incidents of contaminated drinking water on and around military
bases. The Committee understands that in more than one
instance, the Services' use of firefighting foam during
training exercises caused perfluorinated chemicals to enter the
ground and drinking water supply. It is the responsibility of
the Department of Defense to ensure that its activities do not
adversely affect supplies of drinking water at military
installations and in surrounding communities. Additionally,
appropriate policies and procedures must be in place to address
any future contaminations, including the availability of clean
drinking water in the event of an incident.
Therefore, the Committee directs the Assistant Secretary of
Defense (Health Affairs) to submit a report to the
congressional defense committees not later than 90 days after
the enactment of this Act that identifies the current water
quality status of each of the military bases worldwide. The
report should outline the current procedures that are in place
to provide clean drinking water if the current water supply is
deemed unhealthy. Additionally, the Committee directs the
Assistant Secretary of Defense (Health Affairs) to conduct a
study to determine if the Department's current policies and
procedures for monitoring drinking water are sufficient and to
submit a report to the congressional defense committees not
later than 120 days after the enactment of this Act with the
results of the study and recommendations for improving the
quality of water testing.

HYPERBARIC OXYGEN THERAPY

In December 2015, the Government Accountability Office
(GAO) published a report that identified research on the use of
hyberbaric oxygen therapy to treat traumatic brain injury (TBI)
and post-traumatic stress disorder (PTSD). Patients suffering
from these conditions are often prescribed various psychotropic
drugs to ease their symptoms. These drugs often have negative
side effects and carry the risk of leading to dependency. The
GAO report indicated that there is no conclusive evidence at
this point to determine whether or not hyperbaric oxygen
therapy is effective. The Committee urges the Assistant
Secretary of Defense (Health Affairs) to continue to study the
effects of hyperbaric therapy on servicemembers with TBI and/or
PTSD and to continually inform the House and Senate
Appropriations Committees on its progress.

APPLIED BIOMEDICAL TECHNOLOGY

The Committee is encouraged by scientific advances which
may enhance the ability to diagnose and treat chronic
conditions caused by neurotrauma, including post-traumatic
stress disorder and traumatic brain injury. The Committee is
eager to review findings from the Defense Health Agency's
applied biomedical technology research to enhance military
readiness and encourages the Assistant Secretary of Defense
(Health Affairs) to explore the development of a diagnostic
tool which uses advanced imaging analysis to assess
demyelination in various patient populations.

SERVICE RECORDS LOSS THROUGH FIRE

The 1973 fire at the National Personnel Records Center in
Overland, Missouri destroyed millions of military service
records. This loss has created numerous challenges for some
veterans and has prevented access to benefits and decorations
earned through their service. While the Department of Defense
and the Department of Veterans Affairs have an established
process for veterans affected by this fire, the coordination
between the two Departments could be improved. The Committee
urges the Secretary of Defense and the Secretary of Veterans
Affairs to create a clear, coordinated plan to improve the
process to address the issue of proving military service when a
veteran's official service record has been lost or destroyed
while in possession of the federal government.

BURN PATIENT TRANSFER SYSTEM

The Committee understands the necessity of developing
strategies and technologies to improve the logistics of burn
patient triage and transfer in and between military and
civilian treatment facilities in the event of a mass casualty
event. The Committee recognizes that, following such an event,
military treatment facilities would experience a significant
increase in burn patient volume. The ability to maximize
efficiency and effectiveness of triage and subsequent care
would be critical to the management of an overwhelming surge in
burn patient volume and intensity. The Committee encourages the
Assistant Secretary of Defense (Health Affairs) to research the
development of a burn patient transfer system that would
provide a platform for reporting immediate and surge burn bed
availability and electronically match patient acuity with open
beds at clinical burn facilities within the system.

THERMAL INJURY PROTECTION SYSTEMS

The Committee is aware of ongoing efforts to protect
servicemembers from burn injuries related to engine, fuel tank,
crew compartment, and external fires that are triggered by
hostile actions. It is imperative that safe and effective
combat prevention and protection technologies, including
passive fire suppression systems, are available on military
vehicles in theater. The Committee encourages the use of
technologies that continue to support protection from potential
burn injuries.

EXISTING RESEARCH NEEDS

The Committee encourages the Service Surgeons General and
the Director of the Defense Health Agency to continue to focus
on the medical research needs of servicemembers and their
families and to make recommendations on where research gaps
exist and how to address these shortfalls. The research
programs supported by Congress and the Department of Defense
are valuable tools for addressing gaps in medical research and
should be focused on efforts that make the greatest impact on
servicemembers and their families with input from all of the
Services.

HIV TESTING

The Committee believes that all health delivery services
within the Military Health System, including HIV testing,
should be of the highest quality and should be administered in
the most cost effective and efficient manner possible. The
Committee remains concerned with the decisions by the
Department of the Navy and the Department of the Army to
transition HIV testing from a contracted service to an in-house
capability. The Committee directs the Department of Defense
Inspector General to examine the business case analyses
undertaken by the Army and the Navy, including data on cost,
performance, flexibility, and subject matter expertise, and to
provide a report on its findings to the congressional defense
committees not later than 90 days after the enactment of this
Act.

OPIOID ABUSE IN THE MILITARY

The Committee is concerned by the high rate of opioid abuse
among servicemembers. Despite low levels of illicit drug use,
abuse of prescription drugs by servicemembers is higher than in
the general population. The Committee understands that
servicemembers face unique wartime stresses--multiple
deployments and combat exposure can lead to conditions such as
post-traumatic stress disorder, which can further exacerbate
the need for pain medications. The Committee notes the strong
commitment of the Department of Defense and the Department of
Veterans Affairs to research improved pain management
protocols, including the formation of a Pain Management Task
Force. A National Advisory Council on Complementary and
Integrative Health working group recommended that the
Department of Defense and the Department of Veterans Affairs
undertake one or more large-scale studies to answer important
policy and patient care questions about the use of integrative
approaches in pain management. The Committee encourages the
Assistant Secretary of Defense (Health Affairs) to examine the
feasibility of completing the large-scale studies.
Additionally, the Centers for Disease Control recently
published guidelines for prescribing opioids for chronic pain.
The Committee encourages the Assistant Secretary of Defense
(Health Affairs) to ensure its prescribers are familiar with
the guidelines and also to prioritize abuse-deterrent
formulations of prescription opioids through TRICARE
formularies.

ADVANCED ORTHOPEDIC SURGICAL TRAINING

The Committee understands that servicemembers and their
families regularly undergo orthopedic procedures and that these
types of musculoskeletal injuries account for a significant
amount of medical separations or retirements from military
service. Delivery of direct training based on best practices
related to orthopedic procedures for injuries to the knee,
shoulder, and other extremities has become an increasingly
important readiness issue. The Committee encourages the
Assistant Secretary of Defense (Health Affairs) to ensure that
military orthopedic health professionals are provided with
advanced surgical training in arthroscopic techniques and to do
so in partnership with medical professional societies that
maintain best practices related to arthroscopic surgery and
techniques.

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE

Fiscal year 2016 appropriation........................ $699,821,000
Fiscal year 2017 budget request....................... 551,023,000
Committee recommendation.............................. 551,023,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $551,023,000
for Chemical Agents and Munitions Destruction, Defense which
will provide the following program in fiscal year 2017:

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

Fiscal year 2016 appropriation........................ $1,050,598,000
Fiscal year 2017 budget request....................... 844,800,000
Committee recommendation.............................. 908,800,000
Change from budget request............................ +64,000,000

The Committee recommends an appropriation of $908,800,000
for Drug Interdiction and Counter-Drug Activities, Defense
which will provide the following program in fiscal year 2017:

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Committee Change from
Budget Request Recommended Request
----------------------------------------------------------------------------------------------------------------
COUNTER NARCOTICS SUPPORT.............................. 730,087 631,087 -99,000
Transfer to National Guard counter-drug program.... -99,000
DRUG DEMAND REDUCTION PROGRAM.......................... 114,713 118,713 4,000
Program increase--Young Marines.................... 4,000
NATIONAL GUARD COUNTER-DRUG PROGRAM.................... - - - 159,000 159,000
Transfer from counter-narcotics support............ 99,000
Program increase................................... 60,000
----------------------------------------------------------------------------------------------------------------
TOTAL, DRUG INTERDICTION AND COUNTER-DRUG 844,800 908,800 64,000
ACTIVITIES, DEFENSE...........................
----------------------------------------------------------------------------------------------------------------

JOINT URGENT OPERATIONAL NEEDS FUND

Fiscal year 2016 appropriation........................ - - -
Fiscal year 2017 budget request....................... $99,300,000
Committee recommendation.............................. - - -
Change from budget request............................ -99,300,000

The Committee recommends no funding for the Joint Urgent
Operational Needs Fund.

OFFICE OF THE INSPECTOR GENERAL

Fiscal year 2016 appropriation........................ $312,559,000
Fiscal year 2017 budget request....................... 322,035,000
Committee recommendation.............................. 322,035,000
Change from budget request............................ - - -

The Committee recommends an appropriation of $322,035,000
for the Office of the Inspector General which will provide the
following program in fiscal year 2017:

TITLE VII

RELATED AGENCIES

NATIONAL AND MILITARY INTELLIGENCE PROGRAMS

The National Intelligence Program and the Military
Intelligence Program budgets funded in the Department of
Defense Appropriations Act consist primarily of resources for
the Director of National Intelligence including the
Intelligence Community Management Staff, the Central
Intelligence Agency (CIA), the Defense Intelligence Agency, the
National Reconnaissance Office, the National Security Agency,
the National Geospatial-Intelligence Agency, the intelligence
services of the Departments of the Army, Navy, Air Force, and
the CIA Retirement and Disability fund.

CLASSIFIED ANNEX

The Committee's budget review of classified programs is
published in a separate, detailed, and comprehensive classified
annex. The intelligence community, Department of Defense, and
other organizations are expected to fully comply with the
recommendations and directions in the classified annex
accompanying the Department of Defense Appropriations Act,
2017.

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND

Fiscal year 2016 appropriation........................ $514,000,000
Fiscal year 2017 budget request....................... 514,000,000
Committee recommendation.............................. 514,000,000
Change from budget request............................ - - -

This appropriation provides payments of benefits to
qualified beneficiaries in accordance with the Central
Intelligence Agency Retirement Act of 1964 for Certain
Employees (P.L. 88-643), as amended by Public Law 94-522. This
statute authorized the establishment of the CIA Retirement and
Disability System for certain employees and authorized the
establishment and maintenance of a fund from which benefits
would be paid to those beneficiaries.
The Committee recommends an appropriation of $514,000,000
for the Central Intelligence Agency Retirement and Disability
System Fund. This is a mandatory account.

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

Fiscal year 2016 appropriation........................ $505,206,000
Fiscal year 2017 budget request....................... 533,596,000
Committee recommendation.............................. 483,596,000
Change from budget request............................ -21,610,000

The Committee recommends an appropriation of $483,596,000
for the Intelligence Community Management Account.

WILDLIFE TRAFFICKING

The Committee is concerned that wildlife poaching and
trafficking, particularly of African elephant ivory, can be
used as a source of funding by terrorist organizations,
extremist militias, and transnational organized crime
syndicates in Central and Eastern Africa. The Committee
encourages the Director of National Intelligence to work with
American and international law enforcement and partner
countries to share information and analysis on transnational
criminal organizations, terrorist entities, corrupt officials,
and others that facilitate illegal wildlife trafficking.

TITLE VIII

GENERAL PROVISIONS

The accompanying bill includes 135 general provisions. A
description of each provision follows:
Section 8001 provides that no funds made available in this
Act may be used for publicity or propaganda purposes not
authorized by Congress.
Section 8002 provides for conditions and limitations on the
payment of compensation to, or employment of, foreign
nationals.
Section 8003 provides that no funds made available in this
Act may be obligated beyond the end of the fiscal year unless
expressly provided for a greater period of availability
elsewhere in the Act.
Section 8004 limits the obligation of certain funds
provided in this Act during the last two months of the fiscal
year.
Section 8005 has been amended and provides for the general
transfer authority of working capital funds to other military
functions.
Section 8006 provides that the tables titled ``Explanation
of Project Level Adjustments'' in the Committee report and
classified annex shall be carried out in the manner provided by
the tables to the same extent as if the tables were included in
the text of this Act.
Section 8007 has been amended and provides for the
establishment of a baseline for application of reprogramming
and transfer authorities for the current fiscal year.
Section 8008 provides for limitations on the use of
transfer authority of working capital fund cash balances.
Section 8009 provides that none of the funds appropriated
in this Act may be used to initiate a special access program
without prior notification to the congressional defense
committees.
Section 8010 provides limitations and conditions on the use
of funds made available in this Act to initiate multi-year
contracts.
Section 8011 provides for the use and obligation of funds
for humanitarian and civic assistance costs.
Section 8012 has been amended and provides that civilian
personnel of the Department of Defense may not be managed on
the basis of end strength or be subject to end strength
limitations.
Section 8013 prohibits funding from being used to influence
congressional action on any matters pending before the
Congress.
Section 8014 prohibits compensation from being paid to any
member of the Army who is participating as a full-time student
and who receives benefits from the Education Benefits Fund when
time spent as a full-time student is counted toward that
member's service commitment.
Section 8015 provides for the transfer of funds
appropriated in title III of this Act for the Department of
Defense Pilot Mentor-Protege Program.
Section 8016 provides for the Department of Defense to
purchase anchor and mooring chains manufactured only in the
United States.
Section 8017 prohibits funds made available to the
Department of Defense from being used to demilitarize or
dispose of certain surplus firearms and small arms ammunition
or ammunition components.
Section 8018 provides a limitation on funds for the
relocation of any Department of Defense entity into or within
the National Capital Region.
Section 8019 provides for incentive payments authorized by
section 504 of the Indian Financing Act of 1974 (25 U.S.C.
1544).
Section 8020 provides that no funding for the Defense Media
Activity may be used for national or international political or
psychological activities.
Section 8021 provides for the obligation of funds for
purposes specified in section 2350j(c) of title 10, United
States Code, in anticipation of receipt of contributions from
the Government of Kuwait.
Section 8022 has been amended and provides funding for the
Civil Air Patrol Corporation.
Section 8023 has been amended and prohibits funding from
being used to establish new Department of Defense Federally
Funded Research and Development Centers (FFRDC), with certain
limitations and reduces funding provided for FFRDCs.
Section 8024 provides for the Department of Defense to
procure carbon, alloy, or armor steel plate melted and rolled
only in the United States and Canada.
Section 8025 defines the congressional defense committees
as being the Armed Services Committees of the House and Senate
and the Subcommittees on Defense of the Committees on
Appropriations of the House and Senate.
Section 8026 provides for competitions between private
firms and Department of Defense Depot Maintenance Activities.
Section 8027 provides for the revocation of blanket waivers
of the Buy American Act.
Section 8028 provides for the availability of funds
contained in the Department of Defense Overseas Military
Facility Investment Recovery Account.
Section 8029 provides for the conveyance, without
consideration, of relocatable housing units that are excess to
the needs of the Air Force.
Section 8030 provides authority to use operation and
maintenance appropriations to purchase items having an
investment item unit cost of not more than $250,000.
Section 8031 prohibits the use of funds to disestablish,
close, downgrade from host to extension center, or place on
probation a Senior Reserve Officers' Training Corps.
Section 8032 prohibits the sale of tobacco products in
military resale outlets below the most competitive price in the
local community.
Section 8033 has been amended and prohibits the use of
Working Capital Funds to purchase specified investment items.
Section 8034 has been amended and provides that none of the
funds appropriated for the Central Intelligence Agency shall
remain available for obligation beyond the current fiscal year
except for funds appropriated for the Reserve for
Contingencies, the Working Capital Fund, or other programs as
specified.
Section 8035 provides that funds available for the Defense
Intelligence Agency may be used for the design, development,
and deployment of General Defense Intelligence Program
intelligence communications and intelligence information
systems.
Section 8036 provides for the availability of funds for the
mitigation of environmental impacts on Indian lands resulting
from Department of Defense activities.
Section 8037 requires the Department of Defense to comply
with the Buy American Act, chapter 83 of title 41, United
States Code.
Section 8038 provides conditions under which contracts for
studies, analyses, or consulting services may be entered into
without competition on the basis of an unsolicited proposal.
Section 8039 places certain limitations on the use of funds
made available in this Act to establish Field Operating
Agencies.
Section 8040 places restrictions on converting to
contractor performance an activity or function of the
Department of Defense unless it meets certain guidelines
provided.
Section 8041 has been amended and provides for the
rescission of $1,283,416,000 from the following programs:

2015 Appropriations:
Aircraft Procurement, Army:
Network and mission plan...................... $15,000,000
Other Procurement, Army:
Installation of information infrastructure.... 30,000,000
Aircraft Procurement, Navy:
EA-18G........................................ 150,000,000
Weapons Procurement, Navy:
Fleet satellite comm follow-on................ 16,698,000
Procurement of Ammunition, Navy and Marine Corps
LRLAP 6 inch long range attack projectile..... 43,600,000
Aircraft Procurement, Air Force:
HC-130J....................................... 18,000,000
MC-130J....................................... 12,000,000
MQ-1 Mods..................................... 2,000,000
MQ-9 depot activation......................... 25,000,000
Target drones................................. 8,800,000
2016 Appropriations:
Procurement of Ammunition, Army:
Demolition munitions.......................... 8,000,000
Simulators.................................... 5,000,000
Other Procurement, Army:
Information systems........................... 40,000,000
Modification of in-service equipment.......... 18,000,000
Aircraft Procurement, Navy, 2016/2018
F-35 CV....................................... 6,755,000
Weapons Procurement, Navy:
Sidewinder.................................... 5,307,000
Standard missile.............................. 10,106,000
Procurement of Ammunition, Navy and Marine Corps:
81mm all types................................ 1,000,000
Shipbuilding and Conversion, Navy:
DDG-51........................................ 262,000,000
LPD-17........................................ 14,906,000
Other Procurement, Navy:
Remote minehunting system..................... 53,077,000
Surface combatant HM&E........................ 1,317,000
Aircraft Procurement, Air Force:
HC-130J....................................... 12,500,000
KC-135 block 40/45 installs................... 9,000,000
KC-135 post production support................ 1,500,000
KC-46......................................... 148,800,000
MC-130J....................................... 4,500,000
MQ-1 mods..................................... 2,000,000
Other Procurement, Air Force:
Night vision goggles.......................... 5,950,000
Classified adjustment......................... 17,300,000
Procurement, Defense-Wide:
Classified adjustment......................... 2,600,000
Research, Development, Test and Evaluation, Army:
Communications security equipment............. 6,000,000
Concepts experimentation...................... 6,000,000
Information technology development............ 21,000,000
Manpower, personnel, training advanced 5,000,000
technology...................................
Missile defense system integration............ 7,000,000
Missile and rocket advanced technology........ 10,000,000
Tactical command and control HW & SW.......... 18,000,000
Research, Development, Test and Evaluation, Navy:
Future unmanned carrier-based strike system... 75,000,000
Research, Development, Test and Evaluation, Air
Force:
KC-46 EMD..................................... 181,400,000
Classified adjustment......................... 300,000
Research, Development, Test and Evaluation,
Defense-Wide:
Classified adjustment......................... 3,000,000

Section 8042 prohibits funds made available in this Act
from being used to reduce authorized positions for military
technicians (dual status) of the Army National Guard, Air
National Guard, Army Reserve, and Air Force Reserve unless such
reductions are a direct result of a reduction in military force
structure.
Section 8043 prohibits funding from being obligated or
expended for assistance to the Democratic People's Republic of
Korea unless specifically appropriated for that purpose.
Section 8044 provides for reimbursement to the National
Guard and reserve components when members of the National Guard
and reserve components provide intelligence or
counterintelligence support to the combatant commands, Defense
agencies, and Joint Intelligence Activities.
Section 8045 prohibits the transfer of Department of
Defense and Central Intelligence Agencies drug interdiction and
counter-drug activity funds to other agencies except as
specifically provided in an appropriations law.
Section 8046 prohibits funding from being used for the
procurement of ball and roller bearings other than those
produced by a domestic source and of domestic origin.
Section 8047 has been amended and provides that
competitively procured launch services must open for award to
all certified providers of Evolved Expendable Launch Vehicle-
class systems.
Section 8048 provides funding for Red Cross and United
Service Organization grants.
Section 8049 prohibits funding from being used to purchase
supercomputers which are not manufactured in the United States.
Section 8050 provides funds for the Small Business
Innovation Research program and the Small Business Technology
Transfer program.
Section 8051 prohibits funding from being used for
contractor bonuses being paid due to business restructuring.
Section 8052 provides for prior congressional notification
of article or service transfers to international peacekeeping
organizations.
Section 8053 provides for the Department of Defense to
dispose of negative unliquidated or unexpended balances for
expired or closed accounts.
Section 8054 provides conditions for the use of equipment
of the National Guard Distance Learning Project on a space-
available, reimbursable basis.
Section 8055 prohibits the use of funds to modify command
and control relationships to give Fleet Forces Command
operational and administrative control of United States Navy
forces assigned to the Pacific fleet.
Section 8056 provides funding for Sexual Assault Prevention
and Response Programs.
Section 8057 provides for the limitation on the use of
funds appropriated in title IV to procure end-items for
delivery to military forces for operational training,
operational use or inventory requirements.
Section 8058 provides for a waiver of ``Buy America''
provisions for certain cooperative programs.
Section 8059 prohibits funding in this Act from being used
for repairs or maintenance to military family housing units.
Section 8060 provides obligation authority for new starts
for advanced concept technology demonstration projects only
after notification to the congressional defense committees.
Section 8061 provides that the Secretary of Defense shall
provide a classified quarterly report on certain matters as
directed in the classified annex accompanying this Act.
Section 8062 provides for the use of National Guard
personnel to support ground-based elements of the National
Ballistic Missile Defense System.
Section 8063 prohibits the use of funds made available in
this Act to transfer to any nongovernmental entity ammunition
held by the Department of Defense that has a center--fire
cartridge and is designated as ``armor piercing'' except for
demilitarization purposes.
Section 8064 provides for a waiver by the Chief of the
National Guard Bureau or his designee for all or part of
consideration in cases of personal property leases of less than
one year.
Section 8065 has been amended and provides for the transfer
of funds made available in this Act under Operation and
Maintenance, Army to other activities of the Federal Government
for classified purposes.
Section 8066 prohibits funding to separate, or to
consolidate from within, the National Intelligence Program
budget from the Department of Defense budget.
Section 8067 provides grant authority for the construction
and furnishing of additional Fisher Houses to meet the needs of
military family members when confronted with the illness or
hospitalization of an eligible military beneficiary.
Section 8068 has been amended and provides funding and
transfer authority for the Israeli Cooperative Programs.
Section 8069 has been amended and provides for the funding
of prior year shipbuilding cost increases.
Section 8070 has been amended and provides that funds made
available in this Act for intelligence activities are deemed to
be specifically authorized by Congress for purposes of section
504 of the National Security Act of 1947 until the enactment of
the Intelligence Authorization Act for the current fiscal year.
Section 8071 prohibits funding from being used to initiate
a new start program without prior written notification.
Section 8072 provides that the budget of the President for
the subsequent fiscal year shall include separate budget
justification documents for costs of the United States Armed
Forces' participation in contingency operations for the
military personnel, operation and maintenance, and procurement
accounts.
Section 8073 prohibits funding from being used for the
research, development, test, evaluation, procurement, or
deployment of nuclear armed interceptors of a missile defense
system.
Section 8074 has been amended and reduces appropriations to
reflect savings due to favorable exchange rates.
Section 8075 prohibits funding from being used to reduce or
disestablish the operation of the 53rd Weather Reconnaissance
Squadron of the Air Force Reserve.
Section 8076 prohibits funding from being used for the
integration of foreign intelligence information unless the
information has been lawfully collected and processed during
conduct of authorized foreign intelligence activities.
Section 8077 prohibits funding from being used to transfer
program authority relating to current tactical unmanned aerial
vehicles from the Army and requires the Army to retain
responsibility for and operational control of the MQ-1C
Unmanned Aerial Vehicle.
Section 8078 provides funding under certain conditions for
the Asia Pacific Regional Initiative Program for the purpose of
enabling the Pacific Command to execute certain Theater
Security Cooperation activities.
Section 8079 has been amended and limits the availability
of funding provided for the Office of the Director of National
Intelligence beyond the current fiscal year, except for funds
appropriated for research and technology, which shall remain
available for the current and the following fiscal years.
Section 8080 provides for the adjustment of obligations
within the Shipbuilding and Conversion, Navy appropriation.
Section 8081 has been amended and provides for the
establishment of a baseline for application of reprogramming
and transfer authorities for the Office of the Director of
National Intelligence for the current fiscal year.
Section 8082 prohibits the use of funds to modify Army
Contracting Command--New Jersey without prior congressional
notification.
Section 8083 prohibits funding from being used to violate
the Child Soldiers Prevention Act of 2008.
Section 8084 has been amended provides for the transfer of
funds by the Director of National Intelligence to other
departments and agencies for the purposes of Government-wide
information sharing activities.
Section 8085 provides for limitations on funding provided
for the National Intelligence Program to be available for
obligation or expenditure through a reprogramming or transfer
of funds in accordance with section 102A(d) of the National
Security Act of 1947 (50 U.S.C. 403-1(d)).
Section 8086 directs the Director of National Intelligence
to submit a future-years intelligence program reflecting
estimated expenditures and proposed appropriations.
Section 8087 defines the congressional intelligence
committees as being the Permanent Select Committee on
Intelligence of the House, the Select Committee on Intelligence
of the Senate, and the Subcommittees on Defense of the
Committees on Appropriations of the House and Senate.
Section 8088 directs the Department of Defense to continue
to report incremental contingency operations costs for
Operation Inherent Resolve, Operation Enduring Freedom, or any
other named successor operations on a monthly basis in the Cost
of War Execution Report as required by Department of Defense
Financial Management Regulation.
Section 8089 provides the authority to transfer funding
from operation and maintenance accounts for the Army, Navy, and
Air Force to the central fund for Fisher Houses and Suites.
Section 8090 provides that funds appropriated in this Act
may be available for the purpose of making remittances and
transfers to the Defense Acquisition Workforce Development
Fund.
Section 8091 provides that any agency receiving funds made
available in this Act shall post on a public website any report
required to be submitted by Congress with certain exceptions.
Section 8092 prohibits the use of funds for federal
contracts in excess of $1,000,000 unless the contractor agrees
not to require, as a condition of employment, that employees or
independent contractors agree to resolve through arbitration
any claim or tort related to, or arising out of, sexual assault
or harassment, including assault and battery, intentional
infliction of emotional distress, false imprisonment, or
negligent hiring, supervision, or retention, and to certify
that each covered subcontractor agrees to do the same.
Section 8093 has been amended and provides funds for
transfer to the Joint Department of Defense--Department of
Veterans Affairs Medical Facility Demonstration Fund.
Section 8094 provides for the purchase of heavy and light
armed vehicles for the physical security of personnel or for
force protection purposes up to a limit of $450,000 per
vehicle.
Section 8095 has been amended and prohibits the use of
funds providing certain missile defense information to certain
entities.
Section 8096 has been amended and provides the Director of
National Intelligence with general transfer authority with
certain limitations.
Section 8097 prohibits funding to transfer or release any
individual detained at Guantanamo Bay, Cuba into the United
States, its territories, or possessions. This language is
identical to language enacted in Public Law 112-74.
Section 8098 prohibits funding to modify any United States
facility (other than the facility at Guantanamo Bay, Cuba) to
house any individual detained at Guantanamo Bay, Cuba. This
language is identical to language enacted in Public Law 112-74.
Section 8099 has been amended and prohibits funding to
transfer any individual detained at Guantanamo Bay, Cuba to a
country of origin or other foreign country or entity unless the
Secretary of Defense makes certain certifications. This
language is similar to language enacted in Public Law 112-239.
Section 8100 prohibits funding from being used to violate
the War Powers Resolution Act.
Section 8101 prohibits funds from being used to purchase or
lease new light duty vehicles except in accordance with the
Presidential Memorandum-Federal Fleet Performance.
Section 8102 prohibits funds from being used to enter into
a contract, memorandum of understanding, or cooperative
agreement with, make a grant to, or provide a loan or loan
guarantee to Rosoboronexport, except under certain conditions.
Section 8103 prohibits the use of funds for the purchase or
manufacture of a United States flag unless such flags are
treated as covered items under section 2533a(b) of title 10,
United States Code.
Section 8104 provides that funds may be used to provide ex
gratia payments to local military commanders for damage,
personal injury, or death that is incident to combat operations
in a foreign country.
Section 8105 prohibits the use of funds to reduce or
prepare to reduce the number of deployed and non-deployed
strategic delivery vehicles and launchers.
Section 8106 directs the Secretary of Defense to post grant
awards on a public website in a searchable format.
Section 8107 prohibits the use of funds for flight
demonstration teams outside of the United States.
Section 8108 prohibits the use of funds by the National
Security Agency targeting United States persons under
authorities granted in the Foreign Intelligence Surveillance
Act.
Section 8109 prohibits the use of funds to implement the
Arms Trade Treaty until ratified by the Senate.
Section 8110 prohibits the transfer of administrative or
budgetary resources to the jurisdiction of another Federal
agency not financed by this Act without the express
authorization of Congress.
Section 8111 prohibits the use of funds to provide
counterterrorism support to foreign partners unless the
congressional defense committees are notified accordingly.
Section 8112 prohibits the use of funds to contravene the
War Powers Resolution with respect to Iraq.
Section 8113 prohibits the use of funds to retire the A-10
aircraft.
Section 8114 provides funds to support Department of
Defense activities related to the Digital Accountability and
Transparency Act.
Section 8115 has been amended and prohibits the use of
funds to award a new T-AO(X) program contract for the
acquisition of certain components unless those components are
manufactured in the Unites States.
Section 8116 has been amended and reduces Working Capital
Funds to reflect excess cash balances.
Section 8117 has been amended and reduces the total amount
appropriated to reflect lower than anticipated fuel prices.
Section 8118 prohibits the use of funds to retire the KC-10
fleet.
Section 8119 prohibits the use of funds to retire of the
EC-130H aircraft.
Section 8120 prohibits the use of funds for gaming or
entertainment that involves nude entertainers.
Section 8121 prohibits the use of funds for Base
Realignment and Closure.
Section 8122 is new and provides for multiyear procurement
of AH-64E and UH-60M.
Section 8123 is new and provides transfer authority to the
Ready Reserve Force, Maritime Administration for the National
Defense Reserve Fleet.
Section 8124 is new and makes funds available to transfer
from Ship Modernization, Operations and Sustainment Fund for
equipping and modernizing Ticonderoga-class guided missile
cruisers and Whidbey Island-class dock landing ships.
Section 8125 is new and provides funds to sustain security
and suitability background investigations for the Office of
Personnel Management.
Section 8126 is new and places restrictions on the
obligation of funds for the Joint Surveillance Target Attack
Radar System recapitalization program.
Section 8127 is new and provides for the availability of
funds to implement cost-effective agreements for required
heating facility modernization in the Kaiserslautern Military
Community, Landstuhl Army Regional Medical Center, and Ramstein
Air Base, Germany.
Section 8128 is new and provides funds for the
transportation of fresh fruits and vegetables to commissaries
in Asia and the Pacific.
Section 8129 is new and places restrictions on fresh fruits
and vegetables accepted by commissaries in Asia and the
Pacific.
Section 8130 is new and prohibits the use of funds to close
facilities at Naval Station Guantanamo Bay.
Section 8131 is new and provides for the transfer of funds
for pay for military personnel for purposes of fully funding
the authorized military pay raise.
Section 8132 is new and prohibits the use of funds to
enforce section 526 of the Energy Independence and Security Act
of 2007.
Section 8133 is new and provides for the use of funds to
research and respond to the Zika virus.
Section 8134 is new and provides for the availability of
funds for military service memorials and museums that highlight
the role of women in the military.
Section 8135 is new and prohibits funding for any computer
network that does not block pornography, with certain
exceptions.
Section 8136 is new and prohibits funding for certain
travel regulations.

TITLE IX

OVERSEAS CONTINGENCY OPERATIONS/GLOBAL WAR ON TERRORISM

COMMITTEE RECOMMENDATION

In title IX, the Committee recommends total new
appropriations of $58,626,000,000. A detailed review of the
Committee recommendation for programs funded in this title is
provided in the following pages.

REPORTING REQUIREMENTS

The Committee directs the Secretary of Defense to continue
to report incremental contingency operations costs for all
current and new named operations that may have commenced in the
Central Command Area of Responsibility on a monthly basis in
the Cost of War Execution report as required by Department of
Defense Financial Management Regulation, Chapter 23, Volume 12.
The Committee further directs the Secretary of Defense to
continue providing Cost of War reports to the congressional
defense committees that include the following information by
appropriation account: funding appropriated, funding allocated,
monthly obligations, monthly disbursements, cumulative fiscal
year obligations, and cumulative fiscal year disbursements.
The Committee expects that in order to meet unanticipated
requirements, the Secretary of Defense may need to transfer
within these appropriations accounts for purposes other than
those specified in this report. The Committee directs the
Secretary of Defense to follow normal prior approval
reprogramming procedures should it be necessary to transfer
funding between different appropriations accounts in this title
using authority provided in Section 9002 of this Act.

INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE FUND

The Committee recommendation includes $500,000,000 to
continue support for the Intelligence, Surveillance, and
Reconnaissance (ISR) Fund, the same as the fiscal year 2016
enacted level. The Committee has repeatedly heard from
combatant commanders of their need for greater capacity and
capability in ISR, and commends the Secretary of Defense and
the Service leaders for aggressively working to address this
need. The Committee notes that the Air Force, which provides
the majority of pilots for ISR assets and missions, has
broadened the pool of potential operators by including enlisted
servicemembers as pilots and has increased incentives to
improve recruitment and retention. The Committee directs the
Secretary of the Air Force to submit a report to the
congressional defense committees not later than March 15, 2017
on the implementation progress of the ``get well plan'' for
remotely piloted aircraft announced in January 2015, the
current and projected shortfalls of pilots and sensor
operators, and the proposed measures to increase supply of
those critical skills.
Additionally, the Committee is concerned about the
capability of current bandwidth capacity to meet the rapidly
growing demand for increased communications and ISR
information. The Committee encourages the Secretary of Defense
and the Service Secretaries to identify opportunities for
demand reduction, spectral efficiency, and new technological
investments to ensure that warfighters have the timely and
accurate information they rely upon.

SOUTHEAST ASIA

The Committee is concerned about the growth of violent
Islamic extremism throughout Southeast Asia. Militant followers
of Abu Sayyaf are using kidnapping and demands for ransom to
raise funds for their extremist cause. As recently as April
2016, the group held true to their threats for ransom and
beheaded a retired Canadian businessman in the tropical jungles
of the Southern Philippines. Although the Philippine government
insists that these acts are merely the works of bandits and
opportunists, and that the Islamic State has no presence in the
nation's south, evidence shows that the followers of Abu Sayyaf
are aligning themselves with the Islamic State of Iraq and the
Levant. This group had previously attempted to align itself
with al-Qaida to gain stature and notoriety.
It is strongly believed that militants from Malaysia,
Indonesia, and the Middle East have a shaped and unified effort
on Basilan Island, a province of the Philippines within the
unconstitutional, yet self-claimed Autonomous Region in Muslim
Mindanao and in and around the Sulu Sea, and have struck a new
alliance under the Islamic State flag to help recruit
Filipinos.
The 600 person United States Joint Special Operations Task
Force-Philippines (JSOTF-P), tasked to help the Philippine
military fight Islamic militants, came to a close in May 2015,
ending 13 years of an advise and assist mission in coordination
with Philippine commandos fighting Islamic separatists in the
southern Philippine islands. All that remains is a foreign
liaison element that provides operational counterterrorism
assistance to higher levels of command within the Philippine
Security Forces.
The Committee applauds the successful effort of the task
force during its 13 year presence, but following the task
force's reduction and shift in effort, the Committee is
seriously concerned about the recent resurgence of violent
Islamic separatist activity in the area. The Committee directs
the Secretary of Defense to submit a report to the
congressional defense committees not later than 90 days after
the enactment of this Act on the Department of Defense's
counterterrorism efforts in Southeast Asia and the appropriate
funding level required for fiscal year 2018, should forces be
reinstated to a 600 person level.
Additionally, the Committee is concerned about the state of
military-to-military relations in Thailand. While the Committee
recognizes that the events of 2014 have weakened political
relations between the countries, it is imperative that the
security relationship remains strong. Since the 2014 coup, the
Committee notes that the Thai leadership has been expanding its
alliances with Russia and China. The Committee strongly
encourages the Secretary of Defense to ensure that United
States military leaders, including senior uniformed leaders,
are able to travel to Thailand to build and strengthen this
important strategic relationship.

MILITARY PERSONNEL

The Committee recommends an additional appropriation of
$4,400,203,000 for Military Personnel. The Committee
recommendation for each military personnel account is as
follows:

OPERATION AND MAINTENANCE

The Committee recommends an additional appropriation of
$35,544,657,000 for Operation and Maintenance. The Committee
recommendation for each operation and maintenance account is as
follows:

ASSISTANCE TO UKRAINE

The Committee recommends an additional $150,000,000 to
provide assistance to the national security forces of Ukraine.
Section 9014 of this Act provides guidance for the use of this
funding and directs the purchase of items such as training,
equipment, lethal weapons of a defensive nature, and logistics
support. This assistance is provided for the purpose of helping
Ukraine secure its sovereign territory and protect its citizens
against foreign aggressors.

COUNTERTERRORISM PARTNERSHIPS FUND

The Committee recommends an additional appropriation of
$750,000,000 for the Counterterrorism Partnerships Fund.

DIRECT FUNDING TO THE KURDISTAN REGIONAL GOVERNMENT

The Peshmerga forces of the Kurdistan Regional Government
(KRG) have been a leading force against the Islamic State of
Iraq and the Levant (ISIL). However, lethal and non-lethal
support for these allies is managed and distributed at the
discretion of the Iraqi government. This process is cumbersome
and leaves the distribution at the whim of Baghdad and local
politics. To date, the Government of Iraq has not fulfilled the
$12,000,000,000 promised support and back tax revenue to the
Kurdish people, resulting in a humanitarian and economic crisis
in the Kurdish region.
There are many authorities at the disposal of the
Department of Defense to build partnership capacity around the
world.
The Committee strongly encourages the Secretary of Defense
to consider the use of all available authorities and funding to
build the capacity of the KRG, a partner in the fight against
ISIL.

AFGHANISTAN SECURITY FORCES FUND

The Committee recommends an additional appropriation of
$3,448,715,000 for the Afghanistan Security Forces Fund.

WOMEN IN THE AFGHAN NATIONAL SECURITY FORCES

The Committee recommendation contains funding and a
legislative provision regarding the recruitment, integration,
retention, training, and treatment of women, and infrastructure
required to address the needs of women in the Afghan National
Security Forces.

COUNTER-ISLAMIC STATE OF IRAQ AND THE LEVANT TRAIN AND EQUIP FUND

The Committee recommends an additional appropriation of
$880,000,000 for the Counter-Islamic State of Iraq and the
Levant Train and Equip Fund.

PROCUREMENT

The Committee recommends an additional appropriation of
$16,635,407,000 for Procurement. The Committee recommendation
for each procurement account is as follows:

NATIONAL GUARD AND RESERVE EQUIPMENT

The Committee recommendation provides $1,000,000,000 for
National Guard and Reserve Equipment. Of that amount,
$330,000,000 is for the Army National Guard; $330,000,000 is
for the Air National Guard; $140,000,000 is for the Army
Reserve; $50,000,000 is for the Navy Reserve; $10,000,000 is
for the Marine Corps Reserve; and $140,000,000 is for the Air
Force Reserve to meet urgent equipment needs that may arise in
fiscal year 2017.
This funding will allow the National Guard and reserve
components to procure high priority equipment that may be used
by these units for both their combat missions and their
missions in support of state governors. The funding within this
account is not to be used to procure equipment that has been
designated as high density critical equipment item, major
weapon systems, aircraft, and other items of equipment central
to a unit's ability to perform its doctrinal mission. The
funding within this account is not to be used to procure
equipment that should be purchased by the senior Service, to
expand or accelerate current Service procurement plans
increasing program risk borne by the reserve components, to
purchase expendable items, or to purchase facilities or
equipment for any requirement that can be satisfied elsewhere.
The Committee directs the Secretary of Defense to ensure
that the National Guard and Reserve Equipment account shall be
executed by the Chiefs of the National Guard and reserve
components with priority consideration given to the following
items: acoustic hailing devices, airborne sense and avoid
systems, common access card for remote access virtual private
network with pre-tunnel authentication, crashworthy
ballistically tolerant auxiliary fuel systems, integrated
facial protection components for standard issue helmets, large
aircraft infrared countermeasures, advanced targeting pods,
electromagnetic in-flight propeller balance system, handheld
and manpack and mid-tier networking vehicular radios, handheld
explosives and chemical weapons detection capabilities, HMMWV
rollover mitigation, modular small arms and self-contained
ranges, joint threat emitter, Marine Corps tactical radio
digital communications, the mobile user objective system, all-
digital radar warning receivers, unstabilized gunnery crew
trainer and small arms simulation trainers, and wireless mobile
mesh self-healing network systems.

VIRTUAL TRAINING AND SIMULATION

Virtual training using simulation allows soldiers to
prepare in virtual environments prior to live fire range
qualifications. Better preparation leads to significantly
higher first time qualification rates and therefore, requires
less ammunition, on range time, remediation, and has less of an
environmental impact. Therefore, the Committee urges the Chiefs
of the reserve components to strongly consider the use of
virtual training systems.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

The Committee recommends an additional appropriation of
$496,669,000 for Research, Development, Test and Evaluation.
The Committee recommendation for each research, development,
test and evaluation account is as follows:

NAVY UNDERWATER TEST RANGES

The Committee is concerned about the state of readiness and
modernization of tactical test ranges that support critical
undersea warfare missions. Such concerns are particularly acute
given the state of evolving, global threats in the undersea
domain and the advanced age of some of the Navy's tactical
underwater ranges. In particular, the Barking Sands Tactical
Underwater Range (BARSTUR) is well beyond its service life and
requires extensive redevelopment. The Committee understands
that substantial resources are required to fully fund the
repair, redevelopment, and modernization of BARSTUR. Therefore,
the Committee includes $9,000,000 above the request to
accelerate the initial analysis and environmental impact
studies related to repairing and modernizing BARSTUR.
Furthermore, the Committee directs the Secretary of the Navy to
submit a report to the congressional defense committees not
later than 45 days after the enactment of this Act on the
future of BARSTUR. The report should include the requirement
for its redevelopment and modernization, the capability that a
fully functioning underwater range at BARSTUR would provide,
the total amount of required funding delineated by activity and
fiscal year, what is currently budgeted for in the Future Years
Defense Program, and the detailed schedule of the
redevelopment.

REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS

The Committee recommends an additional appropriation of
$140,633,000 for the Defense Working Capital Funds accounts.

OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

The Committee recommends an additional appropriation of
$781,764,000 for the Defense Health Program. The Committee
recommendation is as follows:

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Committee Change from
Budget request recommended request
----------------------------------------------------------------------------------------------------------------
OCO/GWOT
IN-HOUSE CARE.......................................... 95,366 95,366 - - -
PRIVATE SECTOR CARE.................................... 233,073 233,073 - - -
CONSOLIDATED HEALTH SUPPORT............................ 3,325 3,325 - - -
SUBTOTAL, OCO/GWOT............................. 331,764 331,764 - - -
----------------------------------------------------------------------------------------------------------------
OCO/GWOT FOR BASE REQUIREMENTS
BASE OPERATIONS AND COMMUNICATIONS..................... - - - 450,000 450,000
Program increase--Army FSRM........................ 150,000
Program increase--Navy FSRM........................ 150,000
Program increase--Air Force FSRM................... 150,000
SUBTOTAL, OCO/GWOT FOR BASE REQUIREMENTS....... - - - 450,000 450,000
----------------------------------------------------------------------------------------------------------------
TOTAL, OPERATION AND MAINTENANCE................... 331,764 781,764 450,000
----------------------------------------------------------------------------------------------------------------

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

The Committee recommends an additional appropriation of
$215,333,000 for Drug Interdiction and Counter-Drug Activities
Defense. The Committee recommendation is as follows:

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

The Committee recommends an additional appropriation of
$408,272,000 for the Joint Improvised Explosive Device Defeat
Fund. The Committee recommendation is as follows:

OFFICE OF THE INSPECTOR GENERAL

The Committee recommends an additional appropriation of
$22,062,000 for the Office of the Inspector General.

GENERAL PROVISIONS

Title IX contains several general provisions, many of which
extend or modify war-related authorities included in previous
Acts. A brief description of the recommended provisions
follows:
Section 9001 has been amended and provides that funds made
available in this title are in addition to funds appropriated
or otherwise made available for the Department of Defense for
the current fiscal year.
Section 9002 provides for general transfer authority within
title IX.
Section 9003 provides that supervision and administration
costs associated with a construction project funded with
appropriations available for operation and maintenance,
Afghanistan Infrastructure Fund, or the Afghanistan Security
Forces Fund may be obligated at the time a construction
contract is awarded.
Section 9004 provides for the procurement of passenger
motor vehicles and heavy and light armored vehicles for use by
military and civilian employees of the Department of Defense in
the United States Central Command area of responsibility.
Section 9005 provides funding for the Commanders' Emergency
Response Program, within certain limitations.
Section 9006 provides lift and sustainment to coalition
forces supporting military and stability operations in Iraq and
Afghanistan.
Section 9007 prohibits the establishment of permanent bases
in Iraq or Afghanistan or United States control over Iraq oil
resources.
Section 9008 prohibits the use of funding in contravention
of the United Nations Convention Against Torture and Other
Cruel, Inhuman or Degrading Treatment or Punishment.
Section 9009 limits the obligation of funding for the
Afghanistan Security Forces Fund until certain conditions have
been met.
Section 9010 provides for the purchase of items of a
particular investment unit cost from funding made available for
operation and maintenance.
Section 9011 has been amended and provides funding for the
operations and activities of the Office of Security Cooperation
in Iraq and security assistance teams.
Section 9012 has been amended and provides security
assistance to the Government of Jordan.
Section 9013 has been amended and prohibits the use of
funds to procure or transfer man-portable air defense systems.
Section 9014 has been modified and provides assistance and
sustainment to the military and national security forces of
Ukraine.
Section 9015 provides replacement funds for items provided
to the Government of Ukraine from the inventory of the United
States.
Section 9016 prohibits the use of funds to procure or
transfer man-portable air defense systems to Ukraine.
Section 9017 restricts funds provided under the heading
Operation and Maintenance, Defense-wide for payments under
Coalition Support Funds for reimbursement to the Government of
Pakistan until certain conditions are met.
Section 9018 has been amended and provides funds to the
Department of Defense to improve intelligence, surveillance,
and reconnaissance capabilities.
Section 9019 prohibits the use of funds with respect to
Syria in contravention of the War Powers Resolution.
Section 9020 has been amended and provides for the
rescission of $669,000,000 from the following programs:

2016 Appropriations:
Operation and Maintenance, Defense-Wide:
DSCA Coalition Support Fund................... $300,000,000
Counterterrorism Partnerships Fund:
Counterterrorism Partnerships Fund............ 200,000,000
Other Procurement, Air Force:
Classified adjustment......................... 169,000,000

Section 9021 has been amended and requires the President to
designate Overseas Contingency Operation/Global War on
Terrorism funds.

TITLE X

GENERAL PROVISIONS

Title X contains the following general provisions:
Section 10001 is new and expresses the sense of Congress
regarding the use of military force against the Islamic State
of Iraq and the Levant.
Section 10002 is new and provides that the amount by which
the applicable allocation of new budget authority under section
302(b) of the Congressional Budget Act of 1974 exceeds the
amount of proposed new budget authority is $0.

HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

The following items are included in accordance with various
requirements of the Rules of the House of Representatives:

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the following is a statement of
general performance goals and objectives for which this measure
authorizes funding:
The Committee on Appropriations considers program
performance, including a program's success in developing and
attaining outcome-related goals and objectives, in developing
funding recommendations.

RESCISSIONS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House or Representatives, the following table is submitted
describing the rescissions recommended in the accompanying
bill:

------------------------------------------------------------------------

------------------------------------------------------------------------
Aircraft Procurement, Army, 2015/2017.......... $15,000,000
Other Procurement, Army, 2015/2017............. 30,000,000
Aircraft Procurement, Navy, 2015/2017.......... 150,000,000
Weapons Procurement, Navy, 2015/2017........... 16,698,000
Procurement of Ammunition, Navy and Marine 43,600,000
Corps, 2015/2017..............................
Aircraft Procurement, Air Force, 2015/2017..... 65,800,000
Procurement of Ammunition, Army, 2016/2018..... 13,000,000
Other Procurement, Army, 2016/2018............. 58,000,000
Aircraft Procurement, Navy, 2016/2018.......... 6,755,000
Weapons Procurement, Navy, 2016/2018........... 15,413,000
Procurement of Ammunition, Navy and Marine 1,000,000
Corps, 2016/2018..............................
Shipbuilding and Conversion, Navy, 2016/2020... 276,906,000
Other Procurement, Navy, 2016/2018............. 54,394,000
Aircraft Procurement, Air Force, 2016/2018..... 178,300,000
Other Procurement, Air Force, 2016/2018........ 23,250,000
Procurement, Defense-Wide, 2016/2018........... 2,600,000
Research, Development, Test and Evaluation, 73,000,000
Army, 2016/2017...............................
Research, Development, Test and Evaluation, 75,000,000
Navy, 2016/2017...............................
Research, Development, Test and Evaluation, Air 181,700,000
Force, 2016/2017..............................
Research, Development, Test and Evaluation, 3,000,000
Defense-Wide, 2016/2017.......................
Overseas Contingency Operations/Global War on
Terrorism:
Operation and Maintenance, Defense-Wide, $300,000,000
2016/2017.................................
Counterterrorism Partnerships Fund, 2016/ 200,000,000
2017......................................
Other Procurement, Air Force, 2016/2018.... 169,000,000
------------------------------------------------------------------------

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following is submitted describing
the transfer of funds provided in the accompanying bill.
Language has been included under ``Operation and
Maintenance, Defense-Wide'' which provides for the transfer of
funds for certain classified activities.
Language has been included under ``Environmental
Restoration, Army'' which provides for the transfer of funds
for environmental restoration, reduction and recycling of
hazardous waste, removal of unsafe buildings and debris, or for
similar purposes.
Language has been included under ``Environmental
Restoration, Navy'' which provides for the transfer of funds
for environmental restoration, reduction and recycling of
hazardous waste, removal of unsafe buildings and debris, or for
similar purposes.
Language has been included under ``Environmental
Restoration, Air Force'' which provides for the transfer of
funds for environmental restoration, reduction and recycling of
hazardous waste, removal of unsafe buildings and debris, or for
similar purposes.
Language has been included under ``Environmental
Restoration, Defense-Wide'' which provides for the transfer of
funds for environmental restoration, reduction and recycling of
hazardous waste, removal of unsafe buildings and debris, or for
similar purposes.
Language has been included under ``Environmental
Restoration, Formerly Used Defense Sites''' which provides for
the transfer of funds for environmental restoration, reduction
and recycling of hazardous waste, removal of unsafe buildings
and debris, or for similar purposes.
Language has been included under ``Research, Development,
Test and Evaluation, Defense-Wide'' which provides for the
transfer of funds for the Defense Rapid Innovation Program to
appropriations for research, development, test and evaluation
for specific purposes.
Language has been included under ``Drug Interdiction and
Counter-Drug Activities, Defense'' which provides for the
transfer of funds to appropriations available to the Department
of Defense for military personnel of the reserve components;
for operation and maintenance; for procurement; and for
research, development, test and evaluation for drug
interdiction and counter-drug activities of the Department of
Defense.
Language has been included under ``General Provisions, Sec.
8005'' which provides for the transfer of working capital funds
to other appropriations accounts of the Department of Defense
for military functions.
Language has been included under ``General Provisions, Sec.
8008'' which provides for the transfer of funds between working
capital funds and the ``Foreign Currency Fluctuations,
Defense'' appropriation and the ``Operation and Maintenance''
appropriation accounts.
Language has been included under ``General Provisions, Sec.
8015'' which provides for the transfer of funds from the
Department of Defense Pilot Mentor-Protege Program to any other
appropriation for the purposes of implementing a Mentor-Protege
Program development assistance agreement.
Language has been included under ``General Provisions, Sec.
8052'' which provides for the transfer of funds from
``Operation and Maintenance, Defense-Wide'' to appropriations
available for the pay of military personnel in connection with
support and services of eligible organizations and activities
outside the Department of Defense.
Language has been included under ``General Provisions, Sec.
8056'' which provides for the transfer of funds from the
Department of Defense to the Army, Navy, Marine Corps, and Air
Force, including Reserve and National Guard, to support high
priority Sexual Assault Prevention and Response Program
requirements and activities.
Language has been included under ``General Provisions, Sec.
8065'' which provides for the transfer of funds from
``Operation and Maintenance, Army'' to other activities of the
federal government.
Language has been included under ``General Provisions, Sec.
8068'' which provides for the transfer of funds from
``Procurement, Defense-Wide'' and ``Research, Development, Test
and Evaluation, Defense-Wide'' for the Israeli Cooperative
Programs.
Language has been included under ``General Provisions, Sec.
8069'' which provides for the transfer of funds under the
heading ``Shipbuilding and Conversion, Navy'' to fund prior
year shipbuilding cost increases.
Language has been included under ``General Provisions, Sec.
8084'' which provides for the transfer of funds appropriated in
the Intelligence Community Management Account for the Program
Manager for the Information Sharing Environment to other
departments and agencies for the purposes of Government-wide
information sharing activities.
Language has been included under ``General Provisions, Sec.
8089'' which provides for the transfer of funds from
``Operation and Maintenance, Army'', ``Operation and
Maintenance, Navy'', and ``Operation and Maintenance, Air
Force'' to the central fund established for Fisher Houses and
Suites.
Language has been included under ``General Provisions, Sec.
8090'' which provides that funds appropriated by this Act may
be made available for the purpose of making remittances to the
Defense Acquisition Workforce Development Fund.
Language has been included under ``General Provisions, Sec.
8093'' which provides for the transfer of funds appropriated
for operation and maintenance for the Defense Health Program to
the Joint Department of Defense--Department of Veterans Affairs
Medical Facility Demonstration Fund.
Language has been included under ``General Provisions, Sec.
8096'' which provides for the transfer of funds for the
National Intelligence Program.
Language has been included under ``General Provisions, Sec.
8124'' which provides for the transfer of funds from ``Ship
Modernization, Operations and Sustainment Fund'' to support
specific Ticonderoga-class guided missile cruisers.
Language has been included under ``General Provisions, Sec.
8131'' which provides for the transfer of funds for pay for
military personnel for purposes of fully funding the authorized
military pay raise.
Language has been included under ``General Provisions, Sec.
8133'' which provides for the transfer of funds to support
activities related to the Zika virus.
Language has been included under title IX ``Operation and
Maintenance, Navy'' for the transfer of funds to the ``Coast
Guard Operating Expenses''' account.
Language has been included under title IX
``Counterterrorism Partnerships Fund'' for the transfer of
funds to other appropriations provided for in this Act.
Language has been included under title IX ``Joint
Improvised Explosive Devise Defeat Fund'' which provides for
the transfer of funds to appropriations available to the
Department of Defense for military personnel; for operation and
maintenance; for procurement; for research, development, test
and evaluation; and for defense working capital funds for
purposes related to assisting United States forces in the
defeat of improvised explosive devices.
Language has been included under ``General Provisions, Sec.
9002'' which provides for the authority to transfer funds
between the appropriations or funds made available to the
Department of Defense in title IX, subject to certain
conditions.
Language has been included under ``General Provisions, Sec.
9018'' which provides for the transfer of funds to the
operation and maintenance, military personnel, and procurement
accounts, to improve the intelligence, surveillance, and
reconnaissance capabilities of the Department of Defense.

EARMARK DISCLOSURE STATEMENT

Neither the bill nor the report contains any congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in Clause 9 of rule XXI.

COMPLIANCE WITH RULE XIII, CL. 3(E) (RAMSEYER RULE)

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, the Committee notes that the
accompanying bill does not propose to repeal or amend a statute
or part thereof.

CHANGES IN THE APPLICATION OF EXISTING LAW

Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of
the House of Representatives, the following statements are
submitted describing the effect of provisions in the
accompanying bill which directly or indirectly change the
application of existing law.
Language is included in various parts of the bill to
continue ongoing activities which require annual authorization
or additional legislation, which to date has not been enacted.
The bill includes a number of provisions which place
limitations on the use of funds in the bill or change existing
limitations and which might, under some circumstances, be
construed as changing the application of law.
The bill includes a number of provisions which provide for
the transfer of funds and which might, under some
circumstances, be construed as changing the application of law.
The bill includes a number of provisions, which have been
virtually unchanged for many years that are technically
considered legislation.
The bill provides that appropriations shall remain
available for more than one year for some programs for which
the basic authorizing legislation does not presently authorize
each extended availability.
In various places in the bill, the Committee has allocated
funds within appropriation accounts in order to fund specific
programs.
Language is included in various accounts placing a
limitation on funds for emergencies and extraordinary expenses.
Language is included that provides not more than
$15,000,000 for the Combatant Commander Initiative Fund.
Language is included that provides not less than
$35,045,000 for the Procurement Technical Assistance
Cooperative Agreement Program, of which not less than
$3,600,000 shall be available for centers.
Language is included that prohibits the consolidation of
certain legislative affairs or liaison offices.
Language is included that makes available $8,023,000 for
certain classified activities, allows such funds to be
transferred between certain accounts, and exempts such funds
from the investment item unit cost ceiling.
Language is included that limits the use of funds for
official representation purposes under the heading ``United
States Court of Appeals for the Armed Forces''.
Language is included that provides for specific
construction, acquisition, or conversion of vessels under the
heading ``Shipbuilding and Conversion, Navy''.
Language is included that provides for the incurring of
additional obligations for certain activities under the heading
``Shipbuilding and Conversion, Navy''.
Language is included that prohibits the use of funds
provided under the heading ``Shipbuilding and Conversion,
Navy'' for the construction of any naval vessel, or the
construction of major components for the construction or
conversion of any naval vessel, in foreign facilities or
shipyards.
Language is included under the heading ``Research,
Development, Test and Evaluation, Navy'' that provides funds
for certain activities related to the V-22.
Language is included under the heading ``Research,
Development, Test and Evaluation, Defense-Wide'' that provides
$250,000,000 for the Defense Rapid Innovation Program and
provides for the transfer of funds subject to certain
requirements.
Language is included that specifies the use of certain
funds provided under the heading ``Defense Health Program''.
Language is included that provides that not less than
$8,000,000 of funds provided under the heading ``Defense Health
Program'' shall be available for HIV/AIDS prevention
educational activities.
Language is included that provides for the carry-over of no
more than one percent of operation and maintenance funds
provided under the heading ``Defense Health Program''.
Language is included under the heading ``Defense Health
Program'' that provides that not less than $619,100,000 shall
be made available to the U.S. Army Medical Research and
Materiel Command to carry out congressionally directed medical
research programs.
Language is included that specifies the use of certain
funds provided under the heading ``Chemical Agents and
Munitions Destruction, Defense''.
Language is included that provides that no funds made
available in this Act may be used for publicity or propaganda
purposes not authorized by Congress.
Language is included that provides for conditions and
limitations on the payment of compensation to, or employment
of, foreign nationals.
Language is included that provides that no funds made
available in this Act may be obligated beyond the end of the
fiscal year unless expressly provided for in this Act.
Language is included that limits the obligation of certain
funds during the last two months of the fiscal year to no more
than 20 percent with certain exceptions.
Language is included that provides for incorporation of
project level adjustments specified in tables included in this
report.
Language is included that provides for the establishment of
a baseline for application of reprogramming and transfer
authorities for fiscal year 2017 and prohibits reprogramming
and transfers, with certain exceptions, until after submission
of a report.
Language is included that provides for limitations on the
use and transfer of working capital fund cash balances.
Language is included that prohibits the use of funds
appropriated by this Act to initiate a special access program
without prior notification to the congressional defense
committees.
Language is included that provides limitations and
conditions on the use of funds provided in this Act to initiate
multi-year contracts.
Language is included that provides for the use and
obligation of funds for humanitarian and civic assistance costs
under chapter 20 of title 10, United States Code.
Language is included that provides that civilian personnel
of the Department of Defense may not be managed on the basis of
end strength or be subject to end strength limitations, sets
forth certain requirements related to end strength for the
budget submission, and requires that Department of Army Science
and Technology Reinvention Laboratories be managed based on the
available budget.
Language is included that prohibits funds made available in
this Act from being used to influence congressional action on
matters pending before the Congress.
Language is included that prohibits the use of funds to pay
compensation to any member of the Army participating as a full-
time student and receiving benefits from the Education Benefits
Fund when time spent as a full-time student is counted toward
that member's service commitment, with certain exceptions.
Language is included that provides for the transfer of
funds appropriated in title III of this Act for the Department
of Defense Pilot Mentor-Protege Program.
Language is included that provides for the Department of
Defense to purchase anchor and mooring chains manufactured only
in the United States.
Language is included that prohibits the use of funds made
available to the Department of Defense to demilitarize or
destroy surplus firearms or small arms ammunition except under
certain circumstances.
Language is included that provides a limitation on the use
of funds for the relocation of any Department of Defense entity
into or within the National Capital Region.
Language is included that provides for incentive payments
authorized by section 504 of the Indian Financing Act of 1974
(25 U.S.C. 1544).
Language is included that provides that no funds made
available by this Act for the Defense Media Activity may be
used for national or international political or psychological
activities.
Language is included that provides for the obligation of
funds for purposes specified in section 2350j(c) of title 10,
United States Code.
Language is included that provides funding for the Civil
Air Patrol Corporation.
Language is included that prohibits the use of funds
appropriated in this Act to establish a new federally funded
research and development center (FFRDC), pay compensation to
certain individuals associated with an FFRDC, construct certain
new buildings not located on military installations, or
increase the number of staff years for defense FFRDCs beyond a
specified amount.
Language is included that provides for the Department of
Defense to procure carbon, alloy, or armor steel plate melted
and rolled only in the United States or Canada.
Language is included that defines congressional defense
committees for the purposes of this Act.
Language is included that provides for competitions between
private firms and Department of Defense Depot Maintenance
Activities for modification, depot maintenance, and repair of
aircraft, vehicles, and vessels, as well as the production of
components and other Defense-related articles.
Language is included that provides for revocation of
blanket waivers of the Buy America Act upon a finding that a
country has violated a reciprocal trade agreement by
discriminating against products produced in the United States
that are covered by the agreement.
Language is included that provides for the availability of
funds for the Department of Defense Overseas Military Facility
Investment Recovery Account established by section 2921(c)(1)
of the 1991 National Defense Authorization Act.
Language is included that provides for the conveyance,
without consideration, of excess relocatable housing units
located at Grand Forks, Malmstrom, Mountain Home, Ellsworth,
and Minot Air Force Bases to Indian tribes.
Language is included that provides for the availability of
operation and maintenance appropriations to purchase items
having an investment item unit cost of not more than $250,000.
Language is included that prohibits funds from being used
to disestablish, close, downgrade, or place on probation a
Senior Reserve Officers' Training Corps program.
Language is included that provides for the issuance of
regulations placing certain limitations on the sale of tobacco
products in military resale outlets.
Language is included that limits the purchase of specified
investment items with Working Capital Funds.
Language is included that provides that none of the funds
appropriated for the Central Intelligence Agency shall remain
available for obligation beyond the current fiscal year except
for funds appropriated for the Reserve for Contingencies, the
Central Services Working Capital Fund, or other certain
programs authorized under section 503 of the National Security
Act of 1947.
Language is included that provides that funds made
available for the Defense Intelligence Agency may be used for
intelligence communications and intelligence information
systems for the Services, the Unified and Specified Commands,
and the component commands.
Language is included that provides that not less than
$12,000,000 appropriated under the heading ``Operation and
Maintenance, Defense-Wide'' shall be for mitigation of
environmental impacts on Indian lands resulting from Department
of Defense activities.
Language is included that provides for the Department of
Defense to comply with the Buy American Act (chapter 83 of
title 41, United States Code).
Language is included that provides conditions under which
contracts for studies, analysis, or consulting services may be
entered into without competition on the basis of an unsolicited
proposal.
Language is included that limits the use of funds made
available in this Act to establish or support field operating
agencies.
Language is included that limits the use of funds
appropriated by this Act for the conversion of an activity or
function of the Department of Defense to contractor
performance.
Language is included in title VIII and title IX that
provides for the rescission of previously appropriated funds.
Language is included that prohibits the use of funds made
available in this Act from being used to reduce authorized
positions for military technicians (dual status) of the Army
National Guard, Air National Guard, Army Reserve, and Air Force
Reserve unless such reductions are a direct result of a
reduction in military force structure.
Language is included that prohibits the use of funds made
available in this Act for assistance to the Democratic People's
Republic of Korea unless specifically appropriated for that
purpose.
Language is included that provides for the use of operation
and maintenance funds appropriated in this Act for
reimbursement to the National Guard and reserve when members of
the National Guard and reserve provide intelligence or
counterintelligence support to the Combatant Commands, Defense
Agencies, and Joint Intelligence Activities.
Language is included that provides that funds made
available to the Department of Defense and Central Intelligence
Agency for drug interdiction and counter-drug activities may
not be transferred to other agencies except as specifically
provided in an appropriations law.
Language is included that prohibits the use of funds
appropriated by this Act for the procurement of ball and roller
bearings other than those produced by a domestic source and of
domestic origin.
Language is included that places conditions on the use of
funds made available by this Act for Evolved Expendable Launch
Vehicle service competitive procurements.
Language is included to provide funding to make grants to
specified entities upon determination by the Secretary of
Defense that such grants serve the national interest.
Language is included that provides for the Department of
Defense to purchase supercomputers manufactured only in the
United States with an exception for certain circumstances.
Language is included to allow for Small Business Innovation
Research program and Small Business Technology Transfer program
set-asides.
Language is included that prohibits the use of funds made
available in this Act to pay contractor bonuses arising from a
business restructuring.
Language is included that provides for the transfer of
funds to be used in support of personnel supporting approved
organizations and activities outside the Department of Defense.
Language is included that provides for the Department of
Defense to dispose of negative unliquidated or unexpended
balances for expired or closed accounts.
Language is included that provides conditions for the use
of equipment of the National Guard Distance Learning Project on
a space-available, reimbursable basis.
Language is included that prohibits the use of funds to
modify command and control relationships affecting Navy forces
assigned to the Pacific Fleet.
Language is included that provides for the use of funds
made available under the heading ``Operation and Maintenance,
Defense-Wide'' for high priority Sexual Assault Prevention and
Response program requirements, including the transfer of funds.
Language is included that provides a limitation on the use
of funds appropriated in title IV to procure end-items for
delivery to military forces for operational training,
operational use, or inventory requirements.
Language is included that provides for a waiver by the
Secretary of Defense of ``Buy America'' provisions for certain
cooperative programs.
Language is included that prohibits the use of funds made
available in this Act for repairs or maintenance to military
family housing units, for which funds are provided in other
appropriations acts.
Language is included that provides that funds for new
starts for advanced concept technology demonstration projects
may be obligated or expended only after notification to the
congressional defense committees.
Language is included that provides that the Secretary of
Defense shall continue to provide a classified quarterly report
on certain matters as directed in the classified annex
accompanying this Act.
Language is included that provides for the use of National
Guard personnel to support ground-based elements of the
National Ballistic Missile Defense System.
Language is included that prohibits the use of funds
provided in this Act to transfer to any nongovernmental entity
ammunition held by the Department of Defense that has a
center--fire cartridge and is designated as ``armor piercing''
except for demilitarization purposes.
Language is included that provides for a waiver by the
Chief of the National Guard Bureau or his designee for all or
part of consideration in cases of personal property leases of
one year or less to certain organizations specified by section
508(d) of title 32, United States Code.
Language is included that provides for the transfer of
funds made available in this Act under the heading ``Operation
and Maintenance, Army'' to other activities of the Federal
Government for certain purposes.
Language is included that prohibits the modification of the
appropriations account structure or presentation of the budget
request for the National Intelligence Program, or modification
of the process by which National Intelligence Program
appropriations are apportioned, allotted, obligated, and
disbursed.
Language is included that provides grant authority for the
construction and furnishing of additional Fisher Houses to meet
the needs of military family members when confronted with the
illness or hospitalization of an eligible military beneficiary.
Language is included that provides funding and transfer
authority for the Israeli Cooperative missile defense programs.
Language is included that provides for the availability and
transfer of funds to properly complete prior year shipbuilding
programs.
Language is included that provides that funds made
available by this Act are deemed to be specifically authorized
by Congress for purposes of section 504 of the National
Security Act of 1947 until enactment of the Intelligence
Authorization Act.
Language is included that prohibits the use of funds
provided in this Act to initiate a new start program without
prior written notification.
Language is included that provides that the budget of the
President for fiscal year 2018 shall include separate budget
justification documents for costs of the United States Armed
Forces' participation in contingency operations that contain
certain budget exhibits as defined in the Department of Defense
Financial Management Regulation.
Language is included that prohibits the use of funds made
available in this Act for the research, development, test,
evaluation, procurement, or deployment of nuclear armed
interceptors of a missile defense system.
Language is included that reduces the total amount of
funding in this Act to reflect savings due to favorable foreign
exchange rates.
Language is included that prohibits the use of funds made
available in this Act to reduce or disestablish the operation
of the 53rd Weather Reconnaissance Squadron of the Air Force
Reserve.
Language is included that prohibits the use of funds made
available in this Act for the integration of foreign
intelligence information unless the information has been
lawfully collected and processed during conduct of authorized
foreign intelligence activities.
Language is included that prohibits the transfer of program
authorities related to tactical unmanned aerial vehicles from
the Army.
Language is included that provides funding and authority
for the Asia Pacific Regional Initiative program.
Language is included that limits the obligation authority
of funds provided for the Office of the Director of National
Intelligence to the current fiscal year except for research and
technology which shall remain available for the current and the
following fiscal years.
Language is included that provides for the adjustment of
obligations within the ``Shipbuilding and Conversion, Navy''
appropriation.
Language is included that prohibits the reprogramming or
transfer of funds provided in this Act for the National
Intelligence Program until the Director of National
Intelligence submits a baseline for application of
reprogramming and transfer authorities.
Language is included that prohibits the use of funds made
available by this Act to eliminate, restructure, realign, or
reduce certain Army Contracting Command sites without prior
notification to the congressional defense committees.
Language is included that prohibits the use of funds made
available by this Act for excess defense articles, assistance,
or peacekeeping operations for countries designated to be in
violation of the standards of the Child Soldiers Prevention Act
of 2008.
Language is included that provides for the transfer of
funds appropriated to the Intelligence Community Management
Account for the Program Manager for Information Sharing
Environment to other departments and agencies for certain
purposes.
Language is included that sets forth reprogramming and
transfer procedures for the National Intelligence Program.
Language is included that provides that the Director of
National Intelligence shall submit budget exhibits identifying
the future-years intelligence program.
Language is included that defines the congressional
intelligence committees for the purposes of this Act.
Language is included that requires the Department of
Defense to report incremental contingency operations costs on a
monthly basis.
Language is included that provides that funds from certain
operation and maintenance accounts may be transferred to a
central fund established for Fisher Houses and Suites pursuant
to section 2493(d) of title 10, United States Code.
Language is included that provides that funds appropriated
by this Act may be used for making remittances and transfers to
the Defense Acquisition Workforce Development Fund.
Language is included that provides that agencies post
congressionally directed reports on a public website.
Language is included that provides limitations on the award
of contracts to contractors that require mandatory arbitration
for certain claims as a condition of employment or a
contractual relationship. The Secretary of Defense is
authorized to waive the applicability of these limitations for
national security interests.
Language is included that provides for the availability and
transfer of funds for the Joint Department of Defense-
Department of Veterans Affairs Medical Facility Demonstration
Fund.
Language is included that provides for the purchase of
heavy and light armored vehicles for physical security or force
protection purposes.
Language is included that prohibits the use of funds in
contravention of section 130h of title 10, United States Code.
Language is included that provides transfer authority for
the Director of National Intelligence for the National
Intelligence Program subject to certain limitations.
Language is included that prohibits funds to transfer or
release certain individuals detained at Guantanamo Bay, Cuba
into the United States, its territories, or possessions.
Language is included that prohibits the use of funds to
construct, acquire, or modify any facility in the United
States, its territories, or possessions to house individuals
detained at Guantanamo Bay, Cuba.
Language is included that prohibits the use of funds to
transfer any individual detained at Guantanamo Bay, Cuba to the
custody or control of the individual's country of origin, any
other foreign country, or any other foreign entity except in
accordance with sections 1034 of the National Defense
Authorization Act for Fiscal Year 2016 and 1034 of the National
Defense Authorization Act for Fiscal Year 2017.
Language is included that prohibits the use of funds in
contravention of the War Powers Resolution (50 U.S.C. 1541).
Language is included that prohibits the lease or purchase
of new light duty vehicles except in accordance with
Presidential Memorandum-Federal Fleet Performance, dated May
24, 2011.
Language is included that prohibits the Department of
Defense from entering into certain agreements with
Rosoboronexport with certain waiver authorities.
Language is included that prohibits the use of funds for
the purchase or manufacture of a United States flag unless such
flag is treated as a covered item under section 2533a(b) of
title 10, United States Code.
Language is included that provides for the availability of
funds for ex gratia payments in certain circumstances subject
to certain conditions.
Language is included that prohibits the use of funds to
reduce or prepare to reduce the number of deployed and non-
deployed strategic delivery vehicles and launchers below
certain authorized levels.
Language is included that requires grant awards to be
posted on a public website in a searchable format.
Language is included that prohibits the use of funds for
the performance of a flight demonstration team at a location
outside the United States if a performance at a location within
the United States was canceled during the current fiscal year
due to insufficient funding.
Language is included that prohibits the use of funds by the
National Security Agency for certain activities.
Language is included that prohibits the use of funds to
implement the Arms Trade Treaty until the Senate approves a
resolution of ratification.
Language is included that prohibits the use of funds made
available in this or any other Act to pay the salary of any
officer or employee who approves or implements the transfer of
certain administrative responsibilities or budgetary resources
unless expressly provided for in Defense Appropriations Acts.
Language is included that requires certain notification on
the use of funds for activities authorized under section 1208
of the National Defense Authorization Act for Fiscal Year 2005,
with a waiver for exigent circumstances.
Language is included that prohibits the use of funds with
respect to Iraq in contravention of the War Powers Resolution
(50 U.S.C. 1541).
Language is included that prohibits the use of funds to
divest, retire, transfer or place in storage or on backup
status any A-10 aircraft, or to disestablish any A-10 units.
Language is included that provides for the use of funds
from ``Research, Development, Test and Evaluation, Defense-
Wide'' to support Department of Defense activities related to
the implementation of the Digital Accountability and
Transparency Act.
Language is included that prohibits the use of funds to
award a new contract for the T-AO(X) program except under
certain circumstances.
Language is included that reduces the amount of funds
appropriated in title II of this Act due to excess cash
balances in the Department of Defense Working Capital Funds.
Language is included that reduces the amount of funds
appropriated in title II of this Act due to lower than
anticipated fuel costs.
Language is included that prohibits the use of funds made
available by this Act to divest or retire KC-10 aircraft.
Language is included that prohibits the use of funds made
available by this Act to divest, retire, transfer, or place in
storage or on backup inventory status any EC-130H aircraft.
Language is included that prohibits the use of funds made
available by this Act to pay Government Travel Charge Card
expenses for gaming or certain entertainment activities.
Language is included that prohibits the use of funds made
available by this Act to propose, plan for, or execute a new
base realignment and closure round.
Language is included that makes funds appropriated in title
III of this Act available for multiyear procurement contracts
for AH-64E Apache and UH-60M Blackhawk helicopters.
Language is included that makes available funds provided
under the heading ``Operation and Maintenance, Navy'' for
purposes related to the National Defense Reserve Fleet.
Language is included that provides for the transfer of
funds previously appropriated under the heading ``Ship
Modernization, Operations, and Sustainment Fund'' for the
purposes of sustaining, equipping, and modernizing specified
vessels.
Language is included that provides that the Secretary of
Defense may use funds appropriated in titles II, III, and IV of
this Act and Defense Working Capital Funds to develop, replace,
and sustain Federal Government security and suitability
background investigation information technology systems.
Language is included that provides for a limitation on the
use of funds made available by this Act for the Joint
Surveillance Target Attack Radar System recapitalization
program.
Language is included that provides for the Secretary of the
Air Force to implement cost-effective agreements for required
heating facility modernization in the Kaiserslautern Military
Community subject to certain conditions.
Language is included that provides that not less than
$48,000,000 of funds provided under the heading ``Defense
Working Capital Funds'' in this Act shall be used to support
transportation of fresh fruits and vegetables to commissaries
in Asia and the Pacific.
Language is included that provides for limitations on the
acceptance of fresh fruits and vegetables at commissaries in
Asia and the Pacific.
Language is included that prohibits the use of funds made
available in this or any other Act to partially or wholly
close, or partially or wholly transfer from the jurisdiction of
the Department of Defense of the United States, Naval Station
Guantanamo Bay.
Language is included providing for the availability and
transfer of additional amounts for military personnel pay.
Language is included prohibiting the use of funds made
available by this Act to enforce section 526 of the Energy
Independence and Security Act of 2007.
Language is included providing for the availability and
transfer of additional readiness funds made available to the
Services in title II of this Act for activities related to the
Zika virus.
Language is included that makes available funds for
financial support to military memorials and museums for the
purpose of highlighting the role of women in the military,
subject to certain limitations.
Language is included that prohibits funding for computer
networks that do not block pornography, subject to certain law
enforcement and national defense exceptions.
Language is included that prohibits funding for certain
travel regulations.
Language is included under the heading ``Operation and
Maintenance, Defense-Wide'' in title IX that provides for the
use of funds for certain purposes subject to certain
limitations.
Language is included under the heading ``Counterterrorism
Partnerships Fund'' that provides for the transfer and use of
funds for certain purposes.
Language is included under the heading ``Afghanistan
Security Forces Fund'' that provides for the use of funds for
certain purposes and the management of contributions and
returned items.
Language is included under the heading ``Counter-Islamic
State of Iraq and the Levant Train and Equip Fund'' that
provides for the use of funds for certain purposes, compliance
with vetting standards, management of contributions, and the
submission of certain reports.
Language is included under the heading ``National Guard and
Reserve Equipment Account'' providing for the procurement of
certain items and the submission of modernization priority
assessments.
Language is included under the heading ``Joint Improvised-
Threat Defeat Fund'' that makes funds available for certain
purposes notwithstanding any other provision of law and
provides for transfers to other accounts.
Language is included that provides that amounts designed in
this Act as Overseas Contingency Operations/Global War on
Terrorism shall be available only if the President subsequently
so designates all such amounts and transmits such designations
to the Congress.
Language is included that provides that funds made
available in title IX are in addition to amounts appropriated
or otherwise made available for the Department of Defense for
the current fiscal year.
Language is included that provides for supervision and
administration costs for construction projects associated with
overseas contingency operations.
Language is included that provides for the availability of
funds to purchase passenger, heavy, and light armored vehicles
notwithstanding price or other limitations on the purchase of
passenger carrying vehicles for use in the U.S. Central Command
area of responsibility.
Language is included that provides funds and authority for
the Commanders' Emergency Response Program and establishes
certain reporting requirements.
Language is included that authorizes the use of funds to
provide certain assistance to coalition forces supporting
military and stability operations in Afghanistan and to counter
the Islamic State of Iraq and the Levant, and establishes
certain reporting requirements.
Language is included that prohibits the use of funds to
establish permanent bases in Iraq or Afghanistan.
Language is included that prohibits the use of funds in
contravention of certain laws or regulations promulgated to
implement the United Nations Convention Against Torture and
Other Cruel, Inhuman or Degrading Treatment or Punishment.
Language is included that places limitations on the use of
Afghanistan Security Forces Funds and requires certain
certifications.
Language is included that provides for the availability of
funds appropriated in title IX of this Act for the purchase of
items having an investment unit cost of up to $250,000, subject
to certain conditions.
Language is included that authorizes up to $60,000,000
under the heading ``Operation and Maintenance, Air Force'' for
the Office of Security Cooperation in Iraq and security
assistance teams, and operations and activities authorized in
the National Defense Authorization Act for Fiscal Year 2016,
subject to written notice requirements.
Language is included that provides for up to $500,000,000
of funds appropriated by this Act for the Counterterrorism
Partnerships Fund to be used for assistance to the Government
of Jordan for certain purposes.
Language is included prohibiting the use of funds made
available by this Act under the heading ``Counter-Islamic State
of Iraq and the Levant Train and Equip Fund'' to procure or
transfer man-portable air defense systems.
Language is included that provides for $150,000,000 for
assistance to the military and national security forces of
Ukraine for certain purposes and under certain conditions.
Language is included providing for the availability of
funds appropriated in title IX for replacement of items
provided to the Government of Ukraine from the inventory of the
United States to the extent provided for in this Act.
Language is included prohibiting the use of funds made
available by this Act for assistance to Ukraine to procure or
transfer man-portable air defense systems.
Language is included that places limitations on the use of
Coalition Support Funds for the Government of Pakistan.
Language is included that provides for additional funds and
transfer authority to improve the intelligence, surveillance,
and reconnaissance capabilities of the Department of Defense,
subject to a reporting requirement.
Language is included that prohibits the use of funds with
respect to Syria in contravention of the War Powers Resolution
(50 U.S.C. 1541).
Language is included that expresses the sense of Congress
regarding the use of military force against the Islamic State
of Iraq and the Levant.
Language is included that sets the amount by which
subcommittee allocation exceeds the amount of proposed new
budget authority at $0.

COMPARISON WITH THE BUDGET RESOLUTION

Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives requires an explanation of compliance with
section 308(a)(1)(A) of the Congressional Budget and
Impoundment Control Act of 1974 (Public Law 93-344), as
amended, which requires that the report accompanying a bill
providing new budget authority contain a statement detailing
how that authority compares with the reports submitted under
section 302 of the Act for the most recently agreed to
concurrent resolution on the budget for the fiscal year from
the Committee's section 302(a) allocation. This information
follows:

[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
302(b) Allocation This Bill
---------------------------------------------------------
Budget Budget
Authority Outlays Authority Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary:
General Purpose................................... 517,130 527,191 517,130 \1\527,191
Global War on Terrorism\2\........................ 58,626 33,786 58,626 33,786
Mandatory............................................. 514 514 514 514
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Overseas Contingency Operations/Global War on Terrorism.

FIVE-YEAR OUTLAY PROJECTIONS

In compliance with section 308(a)(1)(B) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the following table contains
five-year projections associated with the budget authority
provided in the accompanying bill.

[In millions of dollars]
------------------------------------------------------------------------
Non-GWOT GWOT
------------------------------------------------------------------------
2017.................................... 324,322 33,786
2018.................................... 115,765 11,873
2019.................................... 40,800 6,439
2020.................................... 18,953 3,457
2021 and future years................... 14,948 2,511
------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.
Note: GWOT is Overseas Contingency Operations/Global War on Terrorism.

FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the
Congressional Budget and Impoundment Act of 1974 (Public Law
93-344), as amended, no new budget or outlays are provided by
the accompanying bill for financial assistance to State and
local governments.

PROGRAM DUPLICATION

No provision of this bill establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.

DIRECTED RULE MAKING

This bill does not contain any provision that specifically
directs the promulgation or completion of a rule.

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each roll call on
an amendment or on the motion to report, together with the
names of those voting for and those voting against, are printed
below:
No record votes were ordered during consideration of the
bill in Committee.

ADDITIONAL VIEWS--FISCAL YEAR 2017 DEPARTMENT OF DEFENSE APPROPRIATIONS
BILL

With this bill, the Committee has carried out its
Constitutional responsibility to recommend the appropriations
necessary to provide for the common defense of our Nation. The
Committee did this in a collegial and bipartisan fashion
consistent with its long-standing traditions.
The base portion of this bill provides $517,130,000 in new
budget authority covering all Department of Defense (DoD) and
Intelligence Community functions except for Military
Construction and Family Housing. This is $586,381,000 below the
President's budget request, and $2,982,000 above last year's
enacted level. The Overseas Contingency Operations/Global War
on Terrorism (OCO/GWOT) portion provides a total of
$58,626,000,000, an increase of $449,000 above the President's
budget request. Within the funding provided for OCO/GWOT,
$42,949,994,000 is for OCO/GWOT requirements and
$15,676,000,000 is for base requirements.
These additional views discuss the circumstances and
conditions leading to the proposal to use nearly 27 percent of
the Overseas Contingency Operations (OCO) accounts to fund base
Department of Defense programs, which gives us pause as
Appropriators.
As Appropriators, we disagreed with the arbitrary spending
caps that addressed one-third of the federal budget under the
Budget Control Act of 2011 (BCA). In each session of Congress
we should be making discrete decisions on how we annually
invest our discretionary dollars. Setting inflexible spending
targets for 10 years is nonsensical. More investment is needed
in our roads, ports, water pipes, universities, and our
defense. Congress might disagree on the ways to generate more
resources, and the need to have a serious discussion of our
entitlement programs, but our assumption is that there are very
few people on the Committee or serving in Congress who believe
the federal government is currently making enough of an
investment in the long-term interests of our nation.
And as Appropriators we voted for the Bipartisan Budget Act
of 2015 (BBA), which mitigated the BCA caps on base
discretionary funding and capped OCO spending for Fiscal Years
(FY) 2016 and 2017. A complete repeal of the BCA was
preferable, but nonetheless, we supported the BBA because it
provided clarity to the Appropriations process for the balance
of the 114th Congress. As such, we were able to complete the FY
2016 process and, with a spending level for FY 2017, we were
guardedly optimistic the House would return to regular order.
The Defense Subcommittee was far along in its FY 2017
process when the OCO to Base strategy--conceived to placate
some on other House Committees--was settled upon by the House
Majority. While this bill technically does not violate the caps
established by the BBA for base defense programs and OCO, it is
hard to argue that this bill comports with the spirit of that
law. There is no doubt that the Chairman and Subcommittee staff
made smart investment decisions in executing the $15.7 billion
in OCO to Base funding strategy, but we are troubled by the
circumstances that compelled the subcommittee's action.
First and foremost, the fiscal year begins on October 1,
2016, not May 1, 2017, and it is the responsibility of those of
us holding office in the 2nd session of the 114th Congress to
execute the FY 2017 appropriations process. In order to make
OCO funding available for base programs, our bill only provides
enough funding to fully support the warfighter until the end of
April 2017, which is five months before the end of the fiscal
year. This construct is intended to force the next
administration and the next Congress to pass supplemental
appropriations in calendar year 2017 to support ongoing combat
operations. It forces the new President, as one of her or his
first actions in office to request emergency supplemental
funding. The difference here is about more than bookkeeping.
Sending our military men and women into some of the most
dangerous places on earth--Afghanistan, Iraq, and Syria--
without ensuring that we provide mission support or pay their
salaries for a full year is irresponsible.
It is not the responsibility of the 115th Congress to
finish a predetermined fraction of our work, and we should not
be dismissive of the difficulties we face. To assume there will
be smooth sailing for a supplemental appropriations bill in the
spring is Pollyannaish. It is unknown who will be in the White
House, who will be the civilian leadership at DoD, or even the
composition of the next Congress. As evidenced from the current
Zika virus debate, and past debate on Hurricane Sandy,
supplemental appropriations bills are not without controversy.
Additionally, in making $15.7 billion in cuts to the OCO
budget request, the Subcommittee made assumptions on the pace
of combat operations between now and May 2017. While the
Chairman exercised caution, there is not much wiggle room in
the interim. If the OCO spend rate were to increase for any
reason, Congress and a new Administration would have to act
quickly to pass a supplemental early in 2017. If that
supplemental were not timely, the Department would likely be
forced to reprogram or transfer base dollars to OCO, which
would shortchange other priorities, negate the committee's
funding levels, and still require a supplemental to backfill
both base and OCO. And, possibly, this supplemental would be
funded by offsets from resources within the other 11 bills
within the full committee's jurisdiction, a wholly unacceptable
scenario.
Adding to the uncertainty, the House Majority is going it
alone with this strategy. To date, it has been soundly rejected
by the Administration, the Senate Appropriations Committee, and
the Senate authorizers. While those three are not infallible,
if the House Majority insists upon heading down this path, we
fear the process for conference will be impossible.
Putting concerns about uncertainty aside, as Appropriators,
we further believe the OCO to Base strategy abdicates our
Committee's discretion to the Department of Defense in
executing the remaining OCO funding. In order to free up $15.7
billion, certain appropriations in OCO were subject to
reductions. These reductions were done at the account level,
not at the program level. For example, Navy O&M in the OCO
Title was reduced by $2.9 billion, from its requested level of
$6.8 billion. The Department will now have discretion to apply
a $2.9 billion reduction across the tens of programs under that
account.
A final concern, and one expressed in prior years' markups,
is the continued reliance on OCO funding. We should eliminate
the reliance on OCO funding and shift these activities to the
base budget. It is increasingly difficult after fifteen years
of war to argue that this operational tempo for our military is
a contingency and not the new normal in defending our nation
and our interests. This Subcommittee had begun to limit what is
an eligible expense in OCO, but we have clearly taken a step
back under the BBA, and this latest proposal would take us back
even farther. For example, this bill proposes to increase end
strength by 52,000 above planned reductions for the Army,
Marine Corps, and Air Force. We agree that we need more
personnel to meet increasing operational demands; however, this
additional force structure costs $3 billion in FY 2017, and we
are concerned it would be paid for with OCO to Base dollars.
Using OCO funding can provide a path of least resistance to
increasing defense spending and allows for the postponement of
some very difficult decisions. However, we cannot keep
deferring tough decisions. This is particularly true when BCA
caps are scheduled to lower defense spending by $2 billion in
FY 2018. An increase in end strength creates a tail of spending
in future years. The Department of Defense estimates the troop
levels funded in the bill would increase spending by $30
billion over five years. If this Bill is enacted there will be
a $30 billion unbudgeted requirement our Committee will be
expected to fund.
Despite the concerns just expressed, Chairman Frelinghuysen
and the Subcommittee did an exceptional job with a number of
important priorities.
The bill funds activities to counter Russian
aggression, in part by providing an additional $150 million for
Ukraine and funding for the European Reassurance Initiative
(ERI) to increase the U.S. presence in NATO and eastern
European nations.
The bill includes ``Buy America'' general
provisions to ensure American goods are used for production of
military equipment, helping to maintain the Defense Industrial
Base.
The bill provides $6.7 billion for cyber security,
nearly $1 billion more than FY 2016. Funding would be used to
help cyber mission forces to become fully operational by the
end of 2018, advance cyber training across the department, and
support both defense and offensive operations.
The bill again provides $250 million, which was
not in the President's request, for the Rapid Innovation Fund
to incorporate small business developments into DoD programs.
This fund allows small businesses with big ideas for national
security problems to participate, providing a path into the
defense acquisition community.
The bill provides a robust investment in several
important National Guard modernization programs and $1 billion
for the National Guard and Reserve Equipment Account, which
allows these components to procure high priority equipment for
their dual missions.
The bill provides a pay raise of 2.1 percent, 0.5
percent above the President's Request.
The bill provides robust funding for medical
research, to include an additional $282 million for cancer
research, $125 million for peer-reviewed psychological health
and traumatic brain injury research program, and a greater
focus on hearing and vision restoration.
The bill continues to support efforts on sexual
assault prevention and response, providing $25 million above
the request for Sexual Assault Prevention and Response Program
requirements.
The bill supports Operation Observant Compass and
the Humanitarian Mine Action program. These are just two of the
many smaller programs and operations undertaken by the
Department that work closely with host nations, while
addressing a humanitarian need.
In closing, these views have expressed concerns with the
circumstances that have resulted in the crafting of less than
three percent of the total bill. However, it must be noted that
these circumstances and the uncertainty introduced are an
unnecessary complication and increase the existing burden on
the Chair, the Committee, and the staff. It is a mark of their
talent, their commitment to our troops and our nation's
defense, and their seriousness of purpose, that they have done
so much good to ameliorate the problems caused by this
approach. We look forward to working with the Chairman and the
members of the Committee to advance the process and complete
the task before us.

Nita M. Lowey.
Peter J. Visclosky.