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FY 2001 Defense Plus-Up May Come Through FY 2000 Supplemental
Although the CBR is unlikely to include more than a very modest increase in funding for defense in FY 2001, the Defense Department may get a significant boost through the “back door” of the FY 2000 supplemental appropriation. In February, the administration requested $2.3 billion in supplemental appropriations, primarily to pay the FY 2000 costs of operations in Kosovo. The House appropriations committee added another $2.9 billion to the supplemental, including $1.6 billion to cover the Defense Department’s higher-than-expected fuel costs and $854 million to address shortfalls in the military healthcare program. In addition, on March 29, the full House approved an amendment that would add $4 billion more in defense funding to the supplemental. Importantly, this amendment specified that the funding would remain available for obligation through September 30, 2001 (the last day of FY 2001). To be sure, some of this funding, especially the $2.3 billion requested by the administration and $2.9 billion added by the appropriations committee, will be needed to cover FY 2000 costs. However, much of the $4 billion added on the House floor seems likely to be available to cover FY 2001 costs. In addition, although most of the funds in the House version of the supplemental are for readiness-related activities (O&M and military personnel), the inclusion of this extra funding may allow Congress to allocate a somewhat greater share of the FY 2001 defense budget to weapons procurement and R&D, areas Congress has traditionally focused upon.

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