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                                FOR IMMEDIATE RELEASE:                                                  CONTACT:     Harald Stavenas

                                November 7, 2003                                                                                 Angela Sowa

                                                 (202) 225-2539
                       

CONFEREES COMPLETE FY04 DEFENSE AUTHORIZATION ACT

Washington, DC - House Armed Services Committee Chairman Duncan Hunter (R-CA) today announced that House and Senate conferees have reached agreement on H.R. 1588, the National Defense Authorization Act for Fiscal Year 2004.  The legislation sets policies, programs and funding levels for the nation's military.

Conferees authorized $400 billion in budget authority for the Department of Defense (DOD) and the national security programs of the Department of Energy (DOE).  The bill will be passed by the House today and by the Senate next week and then sent to President Bush for his signature and enactment into law.

"This legislation authorizes the funding necessary to defend the nation and our interests around the globe," said Hunter.  "It contains important provisions such as concurrent receipt pay for the nation's veterans, common-sense environmental reforms allowing our troops to properly train and important new benefits for military personnel and their families.

"Working with President Bush, we are slowly but surely transforming and rebuilding our military after years of neglect by the previous administration.  Much remains to be done, however, to counter years of cuts to procurement accounts, force structure and readiness.  The funding gap created during the past decade will require many years of significant increases in defense spending.  John Kennedy spent nine percent of America's gross domestic product on defense.  Ronald Reagan spent six percent.  In 2004, we will spend 3.4 percent on defense.  We face an increasingly dangerous world with many disparate threats - we can and must spend more on defense to meet these threats.

"Our national defense begins with our men and women in uniform as well as the families back home who support them.  This bill includes a significant pay raise, along with other retention and recruitment incentives, such as housing allowances and strengthened programs for our National Guard and Reserve personnel.

"In the ongoing war on terrorism, I commend President Bush, Secretary Rumsfeld and our military leaders for taking the fight to those who would do us harm.  We stand committed to provide the resources to ensure our continued success.

 "I am grateful to Ranking Member Ike Skelton (D-MO), Subcommittee Chairmen Curt Weldon (R-PA), Joel Hefley (R-CO), Jim Saxton (R-NJ), John McHugh (R-NY), Terry Everett (R-AL), Roscoe Bartlett (R-MD), and all the members of the House-Senate conference for their hard work in advancing this important legislation."

Selected highlights of the agreement include:

·       Concurrent Receipt for Military Retirees:  Currently, disabled veterans' retirement benefits are offset by the amount of disability coverage that they are eligible for.  H.R. 1588 provides full concurrent receipt of benefits for the most severely disabled veterans.

·       "Freedom to Train":   H.R. 1588 contains common-sense environmental reforms allowing our troops to properly train for operations in the ongoing war on terrorism. 

·       Personnel Benefits:  A pay raise and important new benefits for military personnel and their families are included in the conference report.  Provisions include:

        - A 4.15 percent average increase in base pay for our men and women in uniform. 
        - A reduction in the average amount of housing expenses paid by service members from the current 7.5 percent to 3.5 percent in fiscal year 2004 - with  elimination of the out-of-pocket expense completely by fiscal year 2005.

        - Extension of special pay and bonuses for active duty personnel through December 31, 2004.
        - An increase in the family separation allowance for service members with dependents, worldwide, from $100 per month to $250 per month for the period beginning October 1, 2003 and ending on December 31, 2004.

        - An increase in the rate of special pay for those subject to hostile fire and imminent danger, worldwide, from $150 per month to $225 per month for the period beginning October 1, 2003 to December 31, 2004.

·       Reform of Pentagon personnel system: The legislation allows the DOD to develop a merit based system of management for civilian employees that will support national security, while retaining civil service values and protections related to federal worker pay, evaluation, retention, and grievance procedures.  The legislation accommodates veterans' preference, and respects bargaining with labor.  It preserves the principles of equal opportunity, diversity, systematic development, ethical behavior, due process, protection against non-merit based actions, and non-reprisal against whistleblowers.

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<<FY04 NDAA Conference Summary.pdf>>

The conference report will be available this morning on the House Armed Services website at <http://www.house.gov/hasc>.