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Congressional Research S~
Informing the IegisI9tive debate since 191


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                                                                                                October 23, 2024

Congressional Direction of Military Infrastructure Funding


Congress has a variety of legislative and budgetary options
for directing U.S. Department of Defense (DOD)
infrastructure spending. During the past 10 years, Congress
has used statutory provisions to direct infrastructure
spending to support construction or renovation of DOD
research laboratories, child development centers,
unaccompanied  housing facilities, and certain projects in
the Indo-Pacific region.
Funding for DOD's infrastructure generally comes from
one of two types of DOD appropriations accounts: 1)
military construction (MILCON) accounts, which provide
for construction of new facilities; and 2) accounts known as
Facilities Sustainment, Restoration and Modernization
(FSRM),  which are primarily intended for renovation of
existing facilities. FSRM is a component of Operation and
Maintenance (O&M)   accounts.
Both MILCON   and FSRM   provide mechanisms for
Congress to direct budget authority or expedite
infrastructure investment for a particular purpose or for
certain types of facilities.

Miitary Construction
Congress annually reviews DOD's budget request and
determines whether or not to fund individual major
MILCON   projects, among other budgetary line items. In
making the determination of which projects to provide line
item-level authorization and appropriation in annual
defense budget legislation, Congress may prioritize funding
for specific individual projects or for certain types of
facilities. (The list of individual projects that Congress
funds each year is typically contained in the Joint
Explanatory Statement for the annual Military
Construction, Veterans Affairs, and Related Agencies Act.)
Congress may also exercise its discretion regarding DOD's
unfunded priorities lists (UPLs), which generally refer to
reports submitted to the congressional defense committees
by the highest-ranking officers of the U.S. military services
and combatant commands.  In deciding whether or not to
fund particular MILCON projects in the UPLs, Congress
has an additional opportunity to prioritize funding for
certain types of facilities.
Beyond  approving individual MILCON projects, Congress
may  enact new authorities for DOD to carry out certain
types of MILCON  projects. For example, Section 2835 of
the National Defense Authorization Act for Fiscal Year
2024 (FY2024  NDAA;   P.L. 118-31) authorized a pilot
program that allows the Secretaries of the military
departments (Army, Navy and Air Force) to carry out
MILCON   projects to replace certain substandard enlisted
barracks, also known as unaccompanied housing facilities.
Such MILCON projects  do not need further authorization


and the Secretary concerned may, in some cases, use O&M
or unspecified minor MILCON  funding authority.


U


nstruction


Unspecified minor military construction (sometimes
referred to as UMMC) is defined under 10 U.S.C. §2805 as
projects whose total cost does not exceed a certain
threshold, currently $9 million in most instances. UMMC
differs from larger construction projects in that the law does
not require individual UMMC projects to receive
authorization and appropriation at the line-item level in the
annual DOD  budget process. Instead, Congress provides
lump-sum  funding for the military services and DOD
components, providing defense officials with the discretion
to make decisions about which individual UMMC projects
to prioritize and carry out.
When  seeking to direct infrastructure spending to certain
types of projects, Congress can increase UMMC thresholds
as applied to those specific types of projects. For example,
Section 2810 of the FY2006 NDAA  (P.L. 109-163)
authorized a temporary increase in the cost thresholds for
UMMC as   applied to child development center (CDC)
construction projects. Similarly, Section 2810 of the
FY2024  NDAA   authorized the commander of U.S. Indo-
Pacific Command  (INDOPACOM) to carry   out UMMC
projects that cost up to $15 million.
Another way to direct infrastructure spending via minor
military construction is by providing dedicated
appropriations for certain types of UMMC projects. For
example, the FY2024 MILCON-VA Act (P.L. 118-42)
provided $62 million in UMMC  funding for projects in the
INDOPACOM area of responsibility. Similarly, Section
129 of the FY2024 MILCON-VA Act provided $10 million
to each of the military departments for UMMC projects to
improve DOD   laboratory facilities.

P  anning   and   Design
Congress provides military departments and DOD
components  with funding to support planning and design
activities, which are essential to developing the detailed
budget justification and cost estimate that Congress
typically requires when DOD requests full funding for a
MILCON   project. Generally, Congress provides the
military departments and DOD components with a lump
sum annual amount for planning and design that military
leaders can use at their discretion. In some instances,
Congress may  appropriate funding for planning and design
to be dedicated to a particular purpose or to a certain type of
facility. Investment of planning and design funding for
certain types of projects can help DOD move more projects
into the early development stage, which in subsequent years
can provide DOD  and Congress with additional options for
funding full military construction projects.

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