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1 Direct Spending and Revenue Effects of S. 4049, the National Defense Authorization Act for Fiscal Year 2021 1 (June 24, 2020)

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O       CONGRESSIONAL BUDGET OFFICE                     Phillip L. Swagel, Director
        U.S. Congress
        Washington, DC 20515


                                   June 24, 2020


       Honorable James M. Inhofe
       Chairman
       Committee on Armed Services
       United States Senate
       Washington, DC 20510

       Re:   Direct Spending and Revenue Effects of S. 4049, the National Defense
             Authorization Act for Fiscal Year 2021

       Dear Mr. Chairman:

       The Congressional Budget Office has completed the enclosed estimate of
       the direct spending and revenue effects of S. 4049, the National Defense
       Authorization Act for Fiscal Year 2021, as reported by the Senate
       Committee on Armed Services on June 23, 2020.

       Enacting the bill would increase net direct spending by $488 million over
       the 2021-2030 period. Those effects arise from five provisions:

           During a national emergency, section 723 would allow the
             Department of Defense (DoD) to waive the statutes and regulations
             that govern the military health system;
           Section 602 would require DoD to provide hazardous-duty pay for
             military service related to the COVID- 19 emergency;
           Section 707 would require DoD to conduct a pilot program for drug
             pricing;
           Section 551 would result in the award of additional Medals of
             Honor; and
           Section 1413 would allow retirees from the reserve components to
             reside at the Armed Forces Retirement Home.

       S. 4049 also would change net revenues by less than $500,000, CBO estimates.
       Sections 526, 532, 703, and 1043 would change the amount of fines and penalties
       collected by the government. Section 1047 would reduce amounts collected from
       visa fees.

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