07-F-1733doc2

(b )(2),(b )(S),(b )(6) -· The Honorable .Duncan Hunter Chairman, Committee on Armed Services u.s. Hous~ of Representatives Washington, D.C. 20515 Dear Mr. Chairman: In accordance with the Emergency Wartime Supplemental Appropriations Act, 2003 (Public Law 108 - 11), I am notifying you, on behalf of the Secretary of Defense, of the Department's intent to transfer $2,271.4 million from the Iraqi Freedom Fund (IFF) to various funds and appropriation accounts as detailed in Enclosure 1. Enclosure 2 provides a summary of the $239 million transfer from the Natural Resources Risk Remediation Fund to the Army. This is DoD's second congressional notification of transfers from the IFF. Once we make these funding transfers, the balance in the IFF will be $11,636.3 million. We are available to provide any additional information you or your staff may require. A similar letter is being sent to the Chairmen and Ranking Members of the other congressional Defense Committees. Sincerely, Dov S. Zakheim Enclosures: As stated cc: The Honorable Ike Skelton Ranking Member Transfers from the Iraqi Freedom Fund (IFF) Natural Resources Risk Remediation Fund $238,995,000 Funds are to be transferred from the IFF to the Natural . Resources Risk Remediation Fund for expenses incurred in and around Iraq for emergency fire fighting, to repair damag~d oil facilities and related infrastructure, and to preserve a distribution capabili ty. Defense Working Capital Fund $600,000,000 Funds are to be transferred from the IFF to the Defense Working Capital Fund for increased fuel costs in support of military operations in Iraq (Operation Iraqi Freedom) . Operation and Maintenance, Army $206,400,000 Budget Activity 1: Operating Forces Funds are to be transferred from the IFF to the Operation and Maintenance, Army appropriation for expenses incurred by the Office of the Coalition • '• .. f ' . .. ~ --t Clf"\l . ~ / : i L,. \\ \).. '>. ~ - • r.. ;; "\.( #. ,..... ~~ ' ov·- ;~~-~ p - ~ "\!~(:: & -J, · , . u'JY"-'""'- "r ~ ,~ q' :4) rJ" 1 . · ~~J~\, J / >(ivw(\~~ ~' Provision Authority (CPA) ($161.4 million) and for anticipated costs to be incurred in reconstituting and training an interim Iraqi military capability that will contribute to the territorial defense of Iraq and will be available to help Coalition Forces to conduct stability operations to provide a secure environment for the Iraqi people {$45 million) . The Administrator of the CPA intends to use seized or vested assets to pay the salaries of and to provide direct support (e.g., ·equipment, ·clothing, and food) to the New Iraqi Army. Coast Guard Operating Expenses $304,000,000 Funds are to be transferred from the IFF to the Coast Guard Operating Expenses appropriation for costs incurred in and around traq by the United States Coast Guard in operation Iraqi Freedom. Defense Security Cooperation Agency $800,000,000 O&M, Defense-Wide, Budget Activity 4: Administration & Services Activities Funds are to be transfers from the IFF to the Operation and Defense-Wide (O&M, Defense-Wide) appropriation for payments cooperating nations for logistical and military support, as section 1310 of Public Law 108-11. • to reimburse authorized in National Imagery and Mapping Agency $122,000,000 O&M, Defense -Wide , Budget Activity 4: Administration & Services Activities Funds are to be transferred from the IFF to the O&M, Defense-Wide appropriation for costs incurred in support of Operation Iraqi Freedom. Total Transfers from the IFF $2,271,395,000 Transfers from the Natural Resources Risk Remediation Fund (NRRRF) . Operation and Maintenance, Army $238,995,000 Funds are to be transfers to the Operation and Maintenance, Army for expenses incurred in and around Iraq for emergency fire fighting, to • damaged oil facilities and related infrastructure, and to preserve a distribution capability .. repa~r Ma~ntenance, Total Transfers from the NRRRF $238,995,000 Message Sent To: - J. Michael Daniei/OMB/EOP Robert H. Goldberg/OMB/EOP Toni S. Hustead/OMB/EOP@EOP Bryan R. Smith/OMB/EOP@EOP Chauncey Goss/OMB/EOP Mary Jo Siclari/OMB/EOP Arecia A. Grayton/OMB/EOP@EOP Mary L. Hildreth/OMB/EOP Kim S. White/OMB/EOP@EOP Amber N. Green/OMB/EOP@EOP Kathleen Peroff/OMB/EOP@EOP Edna F. Curtin/OMB/EOP@EOP • "' • Message Copied To: Jeffrey· D. Goldstein/OMB/EOP Richard M. Allen/OMB/EOP@EOP Jennifer S. Kron/OMB/EOP@EOP Daren K. Wong/OMB/EOP@EOP Andrew R. Mcllroy/OMB/EOP@EOP Robert J. Nassif/OMB/EOP@EOP Jason A Pugh/OMB/EOP@EOP Andrea Jo Huston/OMB/EOP@EOP Spencer Kympton/OMB/EOP@EOP • •