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First FY2005 Appropriations Bill Heads to White House

This week, the House and Senate approved the conference report for the FY2005 Department of Defense spending bill, making it the first of the annual FY2005 appropriations bills to become law. The House also approved the FY2005 District of Columbia and Military Construction spending bills. The House Appropriations Committee approved the FY2005 Transportation, Treasury, and Independent Agencies and Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies spending bills.

Department of Defense

On July 22, the Senate approved, 96-0, the conference report for the FY2005 Department of Defense spending bill (H.R. 4613). A few hours later, the House approved the conference report, 410-12. It will now go to the White House for President Bush’s signature.

H.R. 4613 would provide $416.2 billion for the Department of Defense in FY2005, a $48 billion increase over FY2004, but $1.6 billion below the administration’s request.

As requested by President Bush, the measure would provide $25 billion to partially cover the projected costs of continuing operations in Iraq and Afghanistan. The bill also would provide $95 million for humanitarian assistance in the Darfur region of Sudan.

Several women’s health research programs would be funded under the bill: $150 million for the Army’s Peer-Reviewed Breast Cancer Research Program and $10 million for the Ovarian Cancer Research Program. Both breast cancer research and ovarian cancer research would be level-funded. The measure also would provide $1 million for the Comprehensive Bioactive Products Program for Breast Cancer, $1 million for targeted nano-therapeutics for advanced breast and prostate cancer, $1.3 million for advances in breast cancer care therapy, $1.1 million for computer-aided detection and diagnostics for breast cancer, and $2.5 million for the biomedical research imaging core related to bone marrow transplantation, and breast and prostate cancer.

The bill would provide $50 million for a Peer-Reviewed Medical Research Program. According to the conference report, projects under the program could include diabetes research, lupus, osteoporosis and related bone diseases, and autoimmune diseases such as scleroderma.

The bill would provide $4.3 million for the Gynecologic Disease Program, $50,000 more than FY2004. The measure also would provide $3 million in FY2005 for the Gynecological Cancer Center. In addition, the Comprehensive Reproductive System Care Program would receive $15 million, $1.4 million more than FY2004.

The measure would provide $1.3 million for the Air Force Environmental and Occupational Factors in Women’s Health Program, $1.5 million for genetic cancer research in women, $1 million for the Maternal-Fetal Health Informatics and Outreach Program, and $200,000 for the Military-Civilian Education and Sexual Health Decision-Making Program. None of these programs were funded in FY2004.

The measure also would provide $14.14 million for military HIV/AIDS research, $2.86 million less than FY2004 and $7.5 million above the administration’s request. Funding for global HIV/AIDS prevention would receive $7.5 million in FY2005, $3.25 million above the FY2004 level. In addition, the conference report states that no less than $4.25 million “shall be available for HIV prevention educational activities undertaken in connection with U.S. military training, exercises, and humanitarian assistance activities conducted primarily in African nations.”

H.R. 4613 would provide $17 million for the Family Advocacy Program, $5 million less than FY2004. The measure also would provide $1.8 million for the Department of Defense Office of Victims Advocate.

According to the conference report, “The conferees believe that hardships resulting from U.S. troop deployments to Iraq and Afghanistan make it imperative for the Department of Defense to offer adequate mental health services for active duty and reserve members deployed to combat theaters. The conferees also are concerned that sufficient mental health services be made readily available to dependents of active duty and reserve members. As such, the conferees direct the Secretary of Defense to conduct a comprehensive review of mental health services available to our military members deployed in combat theaters, as well a review of services that may be available to their dependents during and after a military member’s deployment.”

Finally, the bill would provide $1 million for the Women in Military Service for America Memorial Foundation, an increase of $500,000 above the FY2004 level.

House Action

District of Columbia

On July 20, the House approved, 371-54, the FY2005 District of Columbia spending bill (H.R. 4850). The House Appropriation Committee approved the measure on July 14 (see The Source, 7/16/04).

H.R. 4850 would allocate $560 million for the District of Columbia in FY2005, a $15 million increase over FY2004, but $300,000 below the administration’s request.

The bill would provide $202.1 million for the operation of the D.C. courts, $34.3 million above the FY2004 level, but $25.9 million less than administration’s request. This total would include funding for the Family Court, which handles all cases in the District pertaining to child abuse and neglect, domestic violence, adoption, and foster care.

With the goal of expanding school choice in the District of Columbia, the measure would provide $14 million for private school vouchers, $13 million for the improvement of public schools, and $13 million for charter schools. In FY2004, Congress provided $13 million for all three categories.

Under the bill, $1 million would be allocated for the Family Literacy Program, $1 million less than FY2004. President Bush did not request funding for the program.

H.R. 4850 would provide $5 million for improvements to the District’s foster care system, $9 million below the FY2004 level. The administration’s budget request did not include funding for this purpose.

Included in the bill is a provision that would prohibit the use of federal funds to implement a D.C. law that permits municipal employees to purchase health insurance benefits for their domestic partners, regardless of gender or marital status.

The bill also would maintain current law with respect to the prohibition on the use of local and federal funds for abortion coverage for low-income women on Medicaid. Exceptions for abortion coverage would be made in cases of rape, incest, or life endangerment.

Finally, the measure would maintain current law prohibiting the use of local and federal funds for a needle exchange program.

Military Construction

On July 22, the House approved, 420-1, the FY2005 Military Construction spending bill (H.R. 4837). The House Appropriations Committee approved the measure on July 9 (see The Source, 7/9/04). The Senate Appropriations Committee approved its version of the bill (S. 2674) on July 15 (see The Source, 7/16/04).

H.R. 4837 would allocate $10 billion in FY2005, a $687 million increase over FY2004, $450 million above the administration’s request, and equal to the Senate bill.

As requested by President Bush, $4.2 billion would be allocated for military family housing, of which $1.6 billion would be allocated for new family housing units and improvements to existing units, and $2.5 billion would be used for the operation and maintenance of existing units. Congress allocated $3.9 billion in FY2004 for military family housing.

The measure also would include $26 million for child development centers. In FY2004, Congress provided $16 million for child development centers.

The rule governing floor debate was narrowly approved, 212-211, after Democrats protested its failure to protect a provision that would have raised the statutory cap on spending for a military family housing initiative. Under the rule, the provision was subject to a budget point of order because it would have constituted legislating on an appropriations bill.

Calling the rule “a slap in the face of America’s military families,” Rep. Chet Edwards (D-TX) stated, “We are going to hear a lot of excuses today. We are going to hear that technicalities prevent us from preventing a freeze on the most important military housing program ever. Baloney. The House Committee on Rules, with one phone call from the Speaker, could have done what it has done repeatedly in this Congress on 25 occasions: protect an important provision in this bill from a technical point of order. Unbelievably, unbelievably, that call was not made.”

In an effort to address strong support for the program, Budget Committee Chair Jim Nussle (R-IA) introduced a stand-alone bill (H.R.4879) that would eliminate the cap. The House passed the bill, 423-0.

During consideration of the bill, Rep. Nussle stated, “Today the Committee on Appropriations brought to the floor a bill that busts the budget by $1.2 billion instead of looking throughout the rest of their budget, the rest of their appropriations allocation of $821 billion, to find enough money in order to meet the needs of our military families…Yes, these are arcane rules, but the reason that we have these rules is so that we can try to get a handle on spending. And, no, it is not just for military families. I ask Members to look through the $821 billion [bill] and they will find many places that are less important than our military families. That is why this bill needs to be supported. We need to pass it, and we need to put pressure on the other body that stands in the way of all progress for our military, passing the Department of Defense authorization, passing appropriations bills.”

House Committee Action

Transportation, Treasury, and Independent Agencies

On July 22, the House Appropriations Committee approved, by voice vote, the FY2005 Transportation, Treasury, and Independent Agencies spending bill (as-yet-unnumbered). A House Appropriations subcommittee approved the measure on July 15 (see The Source, 7/16/04).

The measure would allocate $89.9 billion in FY2005, a $1 billion increase over FY2004 and the administration’s request.

The bill includes funding for job access and reverse commute grants, which are used to aid welfare-to-work recipients who live in “urbanized areas with populations greater than 200,000” and have transportation costs associated with their jobs. In addition, the measure also provides funding for the Minority Business Resource Center, funding for minority business outreach, and funding for the Occupant Protection Incentive Grants.

The bill would maintain current law requiring health plans participating in the Federal Employees Health Benefits Program (FEHBP) to cover prescription contraceptives if they cover other prescription drugs. Physicians and others who provide contraceptives are exempted from the requirement if they object based on religious beliefs. Religiously affiliated health plans also are exempt. Additionally, the measure would prohibit abortion coverage under FEHBP, except when the life of the mother is endangered or in the case of rape or incest. A more detailed summary of the spending bill will be available after the August recess.

Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies

On July 22, the House Appropriations Committee approved, by voice vote, the FY2005 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies spending bill (as-yet-unnumbered). A House Appropriations subcommittee approved the measure by voice vote on July 20.

The measure would allocate $92.9 billion in FY2005, $1.6 billion more than FY2004 and $800 million above the administration’s request.

Department of Housing and Urban Development

The bill would provide $1.2 billion for homeless programs, a $60 million decrease below FY2004 and $80 million less than the administration’s request.

In FY2005, the Housing Opportunities for Persons with AIDS (HOPWA) program would receive $282 million, $14.5 million less than FY2004 and $13 million below the administration’s request.

The measure would include $13.3 billion for Section 8 voucher renewals, $4.3 billion below the FY2004 level and $1.5 billion above the administration’s request.

The American Dream Downpayment program would receive $85 million in FY2005, $115 million below the administration’s request.

The bill does not include the administration’s request of $50 million for the Samaritan Initiative. The House Financial Services Subcommittee on Housing and Community Opportunity held a hearing on the Samaritan Initiative on July 13 (see The Source, 7/16/04).


House Authorizes Additional Assistance Under the Millennium Challenge Account

On July 21, the House approved, by voice vote, a bill (H.R. 4660) to reauthorize additional assistance under the Millennium Challenge Account (MCA). Rep. Tom Lantos (D-CA) sponsored the measure.

Enacted as part of the FY2004 Consolidated Appropriations Act (P.L. 108-199), the MCA grants foreign assistance to developing nations based on a country’s commitment to democratic rule, capitalism, and the respect of human rights. The bill also created a threshold program to provide assistance for countries that have not yet become eligible for assistance under the MCA. Authorization for the threshold program is set to expire on October 1, 2004. H.R. 4660 would authorize funding for the threshold program through FY2005, which is when the MCA is set to expire.

Rep. Jim Leach (R-IA) said that the Millennium Challenge Corporation (MCC) has selected 16 countries that are eligible for assistance under the MCA and expressed his concern for the countries “that just missed passing the eligibility bar.” He explained that the law “authorized the MCC to provide limited assistance through a threshold program to these countries for the purpose of improving in the areas where they fell short. This was done partly in recognition of the fact that many threshold countries have limited resources to invest in the well-being of their people. This [bill] will allow us to continue to support the preparation of worthy threshold countries for their full participation in the Millennium Challenge Account.”

Pointing out that the MCA “has already begun to mitigate the effects of global poverty and to provide poor citizens around the world with the tools for their advancement,” Rep. Lantos stated, “But for the MCA to succeed fully and to maintain solid congressional support, the Millennium Challenge Corporation must undertake serious efforts to expand the number of countries that will benefit from the millennium initiative. The lucky 16 countries that are currently eligible to receive MCA assistance represent only about 3 percent of the world’s poor. The most effective way to expand the number of poor countries that can receive MCA funds is through a program for threshold countries that just miss clearing the eligibility bar. Unfortunately, the threshold program is only authorized through the current fiscal year. My legislation helps ensure that the millennium initiative continues to be available to as many poor people as possible by reauthorizing the threshold program for as long as the MCA operates.”