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B-237297.4 1 (1990-02-20)

handle is hein.gao/gaobadbsd0001 and id is 1 raw text is: 

Comptroller Gene;±l
of the United States
Washington, D.C. 20548

February  20, 1990

B-237297.4




The Honorable Robert C. Byrd
Chairman
Committee on Appropriations
United States Senate

Dear Mr. Chairman:

This letter  responds to your February 7, 1990 letter, also
signed by Senator Mark 0. Hatfield,  regarding $1,359,050,000
of fiscal year 1990 Defense  Department appropriations
recently deferred by the President,  citing recent develop-
ments in Europe  and the Soviet Union.  In your letter, you
point out that in his budget  proposal the President has
requested that these  funds be transferred to other programs
for fiscal year 1991.  You asked  that we review this matter
to determine  whether these funds are being deferred in
accordance with applicable  law.  As explained in further
detail below,  we conclude that $1,251,050,000 of the
deferrals are not authorized  under the Impoundment Control
Act of 1974,  as amended, 2 U.S.C. § 681 et seq.

We are continuing to  review the remaining $108,000,000 in
deferrals  and will address them in our upcoming report on
the President's  special message.  We are also reviewing
Defense Department  programs and funding to assist the
Congress  in reaching its own judgment as to whether it
wishes to make  any adjustments in the Department's
spending.

BACKGROUND

As you  know, in its third special impoundment message,
dated February  6, 1990, the Administration reported 19
deferrals  of budget authority, totalling $2,193,850,000,
affecting  several Department of Defense (DoD) programs.
Although  the special message does not so indicate, the
Administration  in its budget for fiscal year 1991 has
proposed  that the Congress transfer amounts in 16 of the
deferrals,  totalling $1,359,050,000, to finance other
programs  in fiscal year 1991.  Of these funds, the
Administration  has proposed $860,300,000 for transfer to the
appropriation  Procurement of Weapons and Tracked Combat
Vehicles,  Army, for the M-1 tank program.  Budget of the
United  Sates  Government Fiscal Year 1991, at A-577 (1990).

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