President Bush Approves Defense Authorization Bill

Army,  Jan 2004  

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On November 24, President George W. Bush signed the $401.3 billion fiscal year (FY) 2004 National Defense Authorization Act at a ceremony at the Pentagon.

The President emphasized that the legislation sends a clear message to the world:

"In a time of conflict and challenge, America stands with the United States military."

The new law provides:

* An increase of active Army end strength by 2,400, with funding authorization.

* January 2004 pay raises averaging 4.15 percent with higher raises (up to 6.25 percent) for some mid-and senior-level NCOs and mid-level officers.

* Military pay raises after 2006 to at least equal the increase in the Employment Cost Index.

* A January 2004 pay raise of 4.1 percent for federal civilian personnel, achieving parity with the military pay raise.

* A reduction of the average amount of out-of-pocket housing expenses paid by service members from 7.5 percent to 3.5 percent.

* Multiple tax initiatives, including an increase of the survivor death gratuity from $6,000 to $12,000, tax free, retroactive to September 11, 2001; capital gains tax relief on home sales for military personnel retroactive to 1987; reserve component personnel tax deductions for overnight expenses and travel for drills more than 100 miles from home; and expansion of military personnel eligibility for tax filing extensions.

* Unlimited access to commissary stores for members of the Ready Reserve, the Retired Reserve and former members who are eligible for retired pay but have not yet reached 60. Family members of these three groups are also included.

* An extension of eligibility for concurrent receipt of military retirement pay and Veterans Administration disability pay to all 20-year military retirees with a Purple Heart or combat-related disability, including reserve component personnel; authorization of full concurrent receipt, phased in over 10 years, for military retirees with at least 50 percent disability.

* Increases in full-time Army reserve component manning end strength to 39,973 personnel, a 3.5 percent increase from FY 2003; an increase of 837 Army dual-status military technicians, a 2.7 percent increase.

* Immediate medical and dental screening and care for selected reserve component personnel authorized upon alert or mobilization notification.

* Authorization of a one-year trial program for reserve component personnel, including: providing TRICARE enrollment on a cost-share basis for those nonmobilized reservists and their families who are unemployed or lack health insurance; providing coverage to mobilized reservists and families up to 90 days before the start of the reservist's active duty and extending eligibility for transitional medical care to 180 days after demobilization.

* Survivor Benefit Plan coverage for survivors of reserve component members who die from injury or illness incurred or aggravated in the line of duty during inactive duty training.

* Authorization of the same level of commissary privileges for reserve components, reserve component retirees and their dependents as active duty personnel and their dependents have.

* Funding upgrades and modifications for Apache Longbow, Black Hawk and Chinook helicopters and enhancements to Abrams (SEP) tanks and Bradley fighting vehicles and of combat support and combat service support equipment; funding of $73.8 million for eight Shadow tactical unmanned aerial vehicle systems and $12.4 million for their continued development.

* $651.6 million for procurement of Patriot advanced capability missiles (funding for 30 more missiles than the Army's unfunded requirement).

* $955 million for 301 Stryker vehicles for the fourth Stryker brigade combat team with an additional $61 million for further research and development on medium armored vehicles.

* $1.7 billion for the Future Combat Systems and $2 billion for Army science and technology programs.

* $1.1 billion for engineering and manufacturing development of the RAH-66 Comanche helicopter.

* $1.4 billion for the Army's ammunition programs-$103 million above the President's request.

Copyright Association of the United States Army Jan 2004
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