EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503

June 11, 2019
(House Rules)

STATEMENT OF ADMINISTRATION POLICY
H.R. 2740—Labor, Health and Human Services, Education, Defense, State, Foreign
Operations, and Energy and Water Development Appropriations Act, 2020
(Rep. Lowey, D-NY)
The Administration opposes House passage of H.R. 2740, as amended by the House Committee
on Rules, making appropriations for the Departments of Labor, Health and Human Services, and
Education, and related agencies, for the Department of Defense, for the Department of State,
foreign operations, and related programs, and for energy and water development and related
agencies for the fiscal year (FY) ending September 30, 2020 and for other purposes. The
Administration is strongly opposed to the budgetary framework that underlies this and other
appropriations bills being considered by the House of Representatives. This framework would
raise the discretionary spending caps by more than $350 billion in fiscal years (FY) 2020 and
2021 and does not reflect either a House-passed budget resolution or a bipartisan, bicameral
agreement. It would put the Federal Government on track to add nearly $2 trillion to deficits
over 10 years, adding significantly to the national debt, which is already more than $22 trillion
and rising.
In addition, the House Democrats’ framework continues to adhere to the misguided and
unfounded notion that increases to defense spending must be matched or exceeded by increases
to non-defense spending. In fact, the appropriations bills under consideration would provide
more than twice as much additional funding in FY 2020 for non-defense programs as for defense
programs, relative to FY 2019 levels. Investing in our national security remains a key
Administration priority, but strengthening our defense does not require additional non-defense
discretionary spending.
Overall, according to the Congressional Budget Office, H.R. 2740 would spend $984.7 billion—
$63.4 billion, or 6.9 percent, above the FY 2020 Budget request and $31.5 billion above the
FY 2019 enacted level. In addition, this legislation includes a number of particularly
problematic provisions implicating key Administration priorities, including provisions that
would block implementation of new Title X and conscience protection rules at the Department of
Health and Human Services, as well as restrict implementation of the Protecting Life in Global
Health Assistance policy. The bill also includes problematic language that would prohibit the
transfer and execution of funds to improve our Nation’s border security, and that would
otherwise impede immigration enforcement.
If H.R. 2740 were presented to the President in its current form, his advisors would recommend
that he veto it.

 The Administration would like to take this opportunity to share additional views regarding the
House Appropriations Committee’s (Committee) version of the bill.
Division A—Departments of Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 2020
Department of Labor
Apprenticeship. The Administration appreciates the bill’s support for the expansion of
apprenticeship model, but opposes its restriction that the funding only be spent on registered
apprenticeships. This restriction limits the Department’s ability to engage employers in adopting
the apprenticeship model, particularly employers in industries in which apprenticeships are not
already common.
Protecting Union Members. The Administration strongly objects to the bill’s underfunding of
the Office of Labor-Management Standards (OLMS). The increase requested in the FY 2020
Budget is necessary to restore OLMS’s investigative workforce and strengthen protections for
transparency for union members by supporting more audits and investigations to uncover flawed
officer elections, fraud, and embezzlement.
Job Corps. The bill provides $1.9 billion for Job Corps, ensuring excessive funds would
continue to be spent on low-performing centers that are failing students. The Administration
continues to strongly support reforms to create a program to better prepare youth for jobs and
keep them safe while doing so.
Department of Health and Human Services (HHS)
Unaccompanied Alien Children (UAC). While the Administration appreciates the funding that
the bill provides for the UAC program, the level provided in the bill would be insufficient to
meet current program needs, which are at crisis levels, as acknowledged in the recent
humanitarian supplemental request. The Administration urges the Congress to include the
$2 billion mandatory contingency fund proposed in the FY 2020 Budget request, which is the
most effective way to manage the inherent uncertainty in this program. The Administration also
opposes the numerous provisions that might impede HHS’s ability to effectively operate the
UAC program and to protect the safety of children in HHS’s care, and provisions that would
create additional barriers preventing the Government from enforcing the Nation’s immigration
laws.
Opioids. The Administration appreciates that the bill includes funding to fight the opioids
epidemic, most notably the $1.5 billion provided for State grants to address opioid abuse
including prevention, treatment, and recovery support services.
Ending HIV Epidemic Initiative. The Administration appreciates that the bill includes funding
for the Centers for Disease Control and Prevention (CDC), Health Resources and Services
Administration, and the National Institutes of Health (NIH) to undertake this priority initiative.

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 NIH. The Administration supports the inclusion of funding for high priority research areas
identified in the FY 2020 Budget request, such as the Childhood Cancer Data Initiative.
However, the bill also includes funding for NIH in excess of $7 billion above the FY 2020
Budget request. The Administration supports strategic funding to accelerate the development of
treatments and strongly opposes across-the-board increases to the NIH topline that are
unsustainable and redirect resources from the highest priority research. In addition, the
Administration is disappointed that the bill does not consolidate the Agency for Healthcare
Research and Quality activities in NIH, as requested in the FY 2020 Budget. The Administration
strongly supports better coordination of health services research and the elimination of funding
for potentially duplicative or lower priority activities.
Title X Family Planning. The Administration opposes language that would prevent
implementation of the new rule that would ensure compliance with statutory Title X program
integrity provisions among HHS programs, in particular the prohibition on funding of programs
wherein abortion is a method of family planning. The new rule makes notable improvements
designed to increase the number of patients served and to improve the quality of care they
receive. In addition, the bill includes $114 million more than the FY 2020 Budget request for
Title X Family Planning. The Administration is also disappointed that the bill does not contain
language requested in the FY 2020 Budget that would prohibit Federal funding from being
provided to certain providers of abortion services.
CDC, National Institute for Occupational Safety and Health (NIOSH). The Administration is
disappointed that the bill provides unrequested funding for NIOSH activities, which is
contributing to the overall excessive spending in the bill. The bill provides $346 million, which
is $156 million more than requested in the FY 2020 Budget.
Teen Pregnancy Prevention (TPP) Program. The Administration opposes the bill’s inclusion of
$110 million in unrequested funds for the TPP program. The bill also requires that the
Administration continue to fund through 2020 grants awarded for FYs 2015 through 2019. The
TPP program began in FY 2010 to provide competitive grants to replicate successful TPP
approaches, test new TPP approaches, and identify the effectiveness of these interventions. The
TPP program serves less than one percent of teenagers in the United States. Although the
teenage pregnancy rate has declined significantly, the evidence suggests that TPP has not been a
major driver in that reduction.
Conscience Protection Rule Implementation Prohibition. The Administration strongly objects to
the inclusion of section 240 of the bill, which prohibits the HHS Office for Civil Rights from
using appropriated funds to finalize, implement, or enforce the newly published conscience
protection final rule. This rule protects conscience rights for healthcare entities and
professionals.
Reassignment of Medicaid Provider Claims. The Administration strongly objects to the bill’s
prohibition on the use of funds to implement the final rule to Protect Medicaid Provider
Payments. This rule ensures that any diversions of Medicaid providers’ payments are consistent
with statute.

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 Medicaid Nonemergency Medical Transportation (NEMT). The Administration objects to the
bill’s prohibition on the use of funds to publish the forthcoming Centers for Medicare and
Medicaid Services rule to provide States with greater flexibility regarding the provision of
NEMT for Medicaid beneficiaries.
Firearm Injury and Mortality Prevention Research. The Administration is concerned that the
bill requires the CDC and NIH to fund research on firearm injury and mortality prevention.
Indirect Costs. The Administration objects to the inclusion of section 224, which prohibits
changes to the method that NIH uses to pay grantee institutions for facilities and administrative
costs. The section also prohibits other Federal departments and agencies from developing or
implementing modified indirect cost policies, which inhibits agency staff and stakeholders from
developing strategies to maximize the effectiveness of Federal Government programs and reduce
burden.
Syringe Services General Provision. The Administration notes that the bill does not continue the
general provision in current law allowing the use of Federal funds to support elements of
evidence-based syringe services programs, as requested in the FY 2020 Budget. The
Administration looks forward to working with the Congress to ensure that these important
services can continue to protect Americans from the infectious disease consequences of opioid
and other drug use, improve rates of addiction treatment and recovery services, and improve
public health, consistent with current law.
Department of Education
Unnecessary Department of Education Programs. The Administration is concerned that the bill
funds 29 programs that the Administration has proposed for elimination in the FY 2020 Budget
request. Eliminating these programs, which are either duplicative, narrowly focused, or unable
to demonstrate effectiveness, would save $6.7 billion in FY 2020.
Charter Schools. The Administration is concerned that the bill reduces funding for charter
schools by $40 million below the FY 2019 enacted level. The $500 million requested in the
FY 2020 Budget for charter schools is critical to the Administration’s efforts to provide more
families with high-quality educational options. In addition, the bill does not provide the
Department of Education with the flexibility needed to efficiently allocate funding to charter
school programs based on applicant demand.
Expansion of Public Service Loan Forgiveness. The Administration opposes the wasteful
$350 million funding level provided in the bill for a temporary benefit in the Federal Direct
Student Loan program that expands Public Service Loan Forgiveness (PSLF) eligibility. The
Administration’s FY 2020 Budget request proposes to eliminate the PSLF program, which
unfairly favors certain career choices over others, and instead focuses assistance on
undergraduate student borrowers from all professions through a single income-based repayment
plan.
Other Independent Agencies
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 Corporation for National and Community Service (CNCS). The Administration opposes the
$1.1 billion funding level for CNCS. This funding is unnecessary and wasteful, as the
Corporation’s mission is not a core Government function.
Corporation for Public Broadcasting (CPB). The Administration proposes to eliminate Federal
funding for CPB in the FY 2020 Budget request and opposes the $495 million funding level for
FY 2022 provided for CPB through the two-year advance appropriation. CPB grants represent a
small share of the total funding for the Public Broadcasting Service and National Public Radio
and the Administration believes private donations would be sufficient to fund these operations.
Division B—Department of Defense Appropriations Act, 2020
Department of Defense (DOD)
Defense Base and Overseas Contingency Operations (OCO) Funding. The Administration
strongly objects to the allocation in the bill between base defense funding and OCO funding. As
outlined in the FY 2020 Budget request, the Administration prefers to limit base national defense
funding to the current law discretionary cap, while using both OCO and emergency funding to
provide the necessary resources to support the National Defense Strategy (NDS). This approach
is vital to ensure that necessary funding to defend the Nation is not dependent on another budget
agreement or legislation increasing the base budget defense cap in current law.
Transfer Authority. The Administration strongly objects to language in sections 8005 and 9002
of the bill that would significantly decrease DOD’s general and special transfer authorities.
Specifically, section 8005 of the bill would limit DOD’s base budget general transfer authority to
$1 billion in FY 2020, $4 billion below the FY 2020 Budget request. Section 9002 of the bill
would limit OCO special transfer authority to $0.5 billion in FY 2020, $4 billion below the
FY 2020 Budget request. Limiting DOD’s transfer authorities would severely constrain the
Department’s ability to shift funds between accounts to meet unforeseen or emerging military
requirements.
Border Funding. The Administration strongly objects to language in section 8127 of the bill that
would prohibit the use of FY 2020 or prior-year defense appropriations to construct barriers or
security infrastructure along the southern border. The Administration also objects to restrictions
included in the bill that would prohibit DOD from augmenting counter-drug appropriations using
transfer authority, or using counter-drug appropriations for the construction of fences under
section 284 of Title 10, United States Code. The use of prior-year appropriations and transfer
authority are critical to assist Department of Homeland Security (DHS) efforts to secure and
manage the southern border. Physical barriers impede the flow of illegal crossings, drugs, and
other contraband, and therefore make DHS efforts at the border more effective.
Space Force. While the Administration appreciates the Committee’s recognition that space
capabilities are an integral part of the Nation’s security and economy, the bill only provides
$15 million to study the establishment of the United States Space Force, which is $57 million
below the FY 2020 Budget request. Over the last 20 years, various commissions authorized by
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 the Congress and the Government Accountability Office have studied DOD’s current
organizational structure and have reached the same conclusion—DOD is not properly structured
for the challenges the Nation faces in space. We look forward to working with the Congress to
authorize and fully fund the Space Force. Insufficient resources could delay its establishment,
putting at risk the Nation’s ability to adapt to the rapidly changing warfighting domain of space.
Republic of Turkey. Section 8111 of the bill would prohibit the use of any funds to deliver F-35
aircraft or related equipment to the Republic of Turkey. The Administration shares the concerns
reflected in the bill regarding the transfer of F-35s should Turkey purchase the S-400, which is
incompatible with its continued participation in the F-35 program. However, section 8111 of the
bill is unacceptable as currently written as it could prohibit delivery of F-35s even if Turkey
foregoes the S-400 system. The Administration supports ongoing discussions between the
United States and Turkey and seeks to retain Turkey in the F-35 program, as long as Turkey
declines the S-400 system.
Removal of United States Armed Forces from Yemen. The Administration strongly objects to the
language in section 10002 of the bill that would require the removal of United States Armed
Forces from hostilities in or affecting the Republic of Yemen, except for operations directed at al
Qaeda or associated forces. Removal of United States Armed Forces would harm bilateral
relationships in the region, negatively affect the military’s ability to prevent the spread of violent
extremist organizations, and would establish a bad precedent for future legislation by defining
“hostilities” to include defense cooperation activities such as aerial refueling. In addition, the
Administration’s continued cooperation with regional partner nations allows the United States to
support diplomatic negotiations to end the conflict, promote humanitarian access, mitigate
civilian casualties, and defeat terrorists who seek to harm the United States.
Authorization for Use of Military Force (AUMF). The Administration strongly objects to section
9025 of the bill, which would repeal the current AUMF. The 2001 and 2002 AUMFs grant the
United States the legal authority to fight the counter-terrorism campaign against the Taliban, al
Qaeda, and associated forces, including the Islamic State of Iraq and Syria. While DOD is not
seeking a new or revised AUMF, the Department continues to participate in productive
discussions with the Congress on the 2001 AUMF. Arbitrarily repealing the 2001 AUMF would
risk the military’s ability to pursue and defeat terrorists who seek to harm the United States and
the Nation’s interests at home and abroad.
Ground Based Strategic Deterrent (GBSD). The Administration strongly objects to the
$108 million reduction in funding in the bill for the GBSD, the Minuteman III/Intercontinental
Ballistic Missile (ICBM) replacement. Failure to provide the full funding requested in the
FY 2020 Budget would lead to delays in planned contract awards, increase the risk of not
meeting the Combatant Commander’s timelines, and hinder the Department’s effort to replace
the aging ICBM fleet.
Intermediate Range Cruise Missile Capability. The Administration strongly objects to the
elimination of research and development funding in the bill for Intermediate Range Cruise
Missile capability. This elimination would disadvantage the United States in the event that
Russia does not return to compliance with its obligations under the Intermediate-Range Nuclear
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 Forces Treaty (INF) by the August 2, 2019 deadline endorsed by the North Atlantic Treaty
Organization. The reduction would leave the United States unprepared to respond to the postINF military environment that will have been created by Russia.
Next Generation Air Dominance (NGAD). The Administration strongly objects to the
$500 million reduction in funding in the bill for the NGAD program. This 50 percent funding
reduction from the FY 2020 Budget request would have a severe impact on the ability of the
program to field NGAD capabilities that will be needed in the 2030 timeframe to meet the
growing challenges of peer adversaries. Full funding of NGAD is also critical for maintaining a
strong United States industrial base capable of building the world’s most advanced aircraft.
Research, Development, Test and Evaluation (RDT&E). The Administration objects to the
reduced funding in the bill for RDT&E. The bill provides $101 billion for RDT&E—$3 billion
below the FY 2020 Budget request. Underfunding RDT&E would constrain DOD’s ability to
make key investments in research, engineering, and prototyping to maintain the military’s
technological superiority.
Unmanned Surface Vessels. While the Administration applauds the Committee’s recognition
that Large Unmanned Surface Vessels will provide a more distributed, lethal, and survivable
navy, the bill only provides $307 million for these systems, $200 million below the FY 2020
Budget request. These are critical experimentation vessels with modular payloads to reduce risk,
conduct integration and testing of payloads, and develop Navy tactics and concepts of
operations. The Administration urges the Congress to fully support this critical capability at the
levels in the FY 2020 Budget request.
Next Generation Overhead Persistent Infrared (Next-Gen OPIR). The Administration strongly
objects to the $202 million reduction, and the obligation and expenditure limitation, in the bill
that would reduce and withhold funding for Next-Gen OPIR. The levels proposed in the
FY 2020 Budget request are essential to hire personnel for design work and to purchase materials
to meet the Department’s fielding timeline. Strategic missile warning is a “no-fail” mission and
without full funding, the program would be delayed by a minimum of one year.
Multiple Munitions Reductions. The Administration objects to the $562 million reduction in the
bill for critical warfighter munitions, which would further reduce key weapons stores. The
FY 2020 Budget request increases procurement of preferred and advanced munitions to build
war reserves and successfully execute the NDS. Stable and consistent annual procurements are
vital to increasing DOD’s lethality and warfighting capability.
Unobligated Balance Reductions. The Administration objects to the $1.6 billion in reductions
across Military Personnel and Operation and Maintenance (O&M) accounts. These reductions
fail to account for actions already taken by the Armed Forces to reduce these balances. If
enacted, the reductions to the Military Personnel accounts would be applied to military pay and
allowance programs and would directly affect the Department’s ability to fund full-spectrum
readiness recovery efforts, including the Services’ planned growth in forces. For O&M
accounts, these reductions would negate the Committee’s otherwise clear intent to support
defense readiness, and would directly and negatively impact key readiness priorities including
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 depot maintenance, base operations support, communications, and facilities sustainment,
restoration, and modernization.
Division C—Department of State, Foreign Operations, and Related Programs
Appropriations Act, 2020
Department of State and Other International Programs
International Affairs Topline. The Administration opposes the bill topline level, which far
exceeds the amount requested in the FY 2020 Budget request. This is counter to Administration
efforts to rein in non-defense discretionary funding and eliminate the use of OCO funding for
Function 150 programs. For example, the Department of State and the U.S. Agency for
International Development funding level is $12.4 billion, or 31 percent, above the FY 2020
Budget request.
U.S. Development Finance Corporation (DFC). The Administration appreciates the funding
provided for DFC administrative expenses, but is concerned that the bill significantly underfunds
the new Agency’s programs. In particular, the bill provides $50 million for the DFC’s new
equity program, $100 million, or 67 percent, below the FY 2020 Budget request. This level
undermines an Administration and congressional priority to provide the DFC with a tool that
would catalyze additional investment for development and national security objectives by
mobilizing the private sector.
Middle East Assistance. The Administration appreciates that the bill supports funding for key
partners in the Middle East, including $3.3 billion in Foreign Military Financing for Israel in
support of the 10-year Memorandum of Understanding, bilateral assistance to Jordan in support
of the strong, strategic United States-Jordan relationship, and security and economic assistance to
other key partners, including Egypt.
Economic and Development Assistance. The Administration opposes the high level of spending
provided in the bill for economic and development assistance. The funding in the bill exceeds
what is needed to support United States national security, promote United States prosperity and
economic opportunities, and advance American interests and values around the world. The bill
also does not consolidate this funding into one Economic Support and Development Fund
appropriation, as was proposed in the FY 2020 Budget request, maintaining unnecessary
accounts with specialized objectives and limiting flexibility.
International Organizations Contributions. The Administration opposes the significant increases
for assessed and voluntary contributions to international organizations, including increased
funding for the International Organizations and Programs account, which the FY 2020 Budget
request proposed to eliminate. The funding provided in the bill is counter to the goals of the
FY 2020 Budget request, which fully funds international organizations that are critical to
national security, while also signaling America’s commitment to greater accountability and
transparency and more equitable cost-sharing among members. In addition, the Administration
is concerned that the bill would waive the 25 percent statutory cap on United States
peacekeeping assessments for prior years, and require use of taxpayer funds to pay assessments
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 in excess of the statutory cap despite the failure of the United Nations to act on United States
cost sharing proposals.
Global Fund for HIV/AIDS, Tuberculosis, and Malaria (Global Fund). The Administration is
disappointed that the bill misses an opportunity to seek improved international burden sharing in
support of the Global Fund. The bill provides more than $600 million above the FY 2020
Budget request. While the Administration supports the work of the Global Fund, the proposal in
the FY 2020 Budget request would challenge other donors to do more, and use prior year funds
that other donors have not matched, rather than increasing United States funding unilaterally.
The bill instead would undermine the previous matching pledge and require the United States to
play a larger role, even while the combination of United States bilateral and multilateral efforts
already represent well above half of global funding to combat AIDS.
Program Eliminations and Reductions. The Administration is concerned that the bill increases
or maintains funding that the Administration proposed to eliminate or substantially reduce in the
FY 2020 Budget request. This includes: Educational and Cultural Exchanges; the African
Development Foundation; the Inter-American Foundation; the Asia Foundation; the East-West
Center; the International Fund for Agricultural Development; the U.S. Agency for Global Media;
the U.S. Institute of Peace; and the U.S. Trade and Development Agency.
Mexico City Policy, Other Abortion Restrictions, and Family Planning. The Administration
strongly opposes sections 7058(a) and 7064 of the bill that would effectively block the
Administration’s implementation of the Protecting Life in Global Health Assistance Policy,
which prohibits the funding of foreign non-governmental organizations that promote or perform
abortions. The Administration is also concerned that the bill restores unrequested funding for the
United Nations Population Fund, an organization determined by the Secretary of State to support
or participate in the management of a program of coercive abortion or involuntary sterilization.
Reduced Flexibility. The Administration strongly opposes provisions that would significantly
reduce the Administration’s flexibility to allocate funds to achieve foreign policy objectives.
Section 7019 of the bill again requires that allocations for assistance accounts conform to
numerous detailed congressional funding directives. However, this section goes significantly
beyond restrictions in prior acts which have allowed the Administration to respond to changing
conditions and apply exceptions on a case-by-case basis for urgent or unforeseen needs by both
lowering the threshold for authorized deviations and—crucially—not allowing for exceptions
previously permitted. In addition, the Administration opposes the revision of section 7011,
which by limiting the amount of time funds are available for reprogramming, would significantly
hamper the Administration’s ability to ensure that tax payer resources are being used most
effectively to support programmatic needs in response to evolving circumstances on the ground
and foreign policy priorities.
Paris Agreement. The Administration strongly opposes section 7060 of the bill, which prevents
funding from being used to notify withdrawal from the Paris Agreement. The provision is
inconsistent with the President’s announced intentions.
Venezuela Transition. The Administration is concerned that the bill fails to provide requested
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 authority to flexibly respond to the crisis in Venezuela. Special transfer authority would enable
the United States to initiate additional programming quickly to support a democratic transition
and related needs. The Administration urges the Congress to provide such authority in a final
bill to support the people of Venezuela in their fight against tyranny.
Foreign Military Financing (FMF) Loan Authority. The Administration is disappointed that the
bill fails to include authority requested to provide FMF loans and guarantees, which the
Administration views as an important tool for making United States defense equipment a more
competitive and affordable option for partner countries.
Overseas Humanitarian Assistance Reorganization. The Administration is concerned that the
bill excludes provisions proposed in the FY 2020 Budget request that would strengthen and
improve outdated and fragmented overseas humanitarian assistance, including a new
International Humanitarian Assistance account where spending could adjust flexibly to meet the
needs of affected populations as crises drive populations back and forth across borders and
within their own countries. In addition, section 7006 of the bill retains language enacted in the
Consolidated Appropriations Act, 2019 that limits improvements to the United States
humanitarian structure by unnecessarily micromanaging how bureaus are managed and funds are
administered. The Administration believes that a stronger and seamlessly coherent Federal
Government structure that elevates humanitarian assistance is needed to resolve conflicts
underlying the largest crises while optimizing the outcomes for both beneficiaries and American
taxpayers.
Secretary of State Travel Restriction. The Administration is concerned that the bill seeks to limit
the Secretary of State’s travel expenses unless certain timelines are met for submission of the
Department’s congressional budget justification materials and allocations of appropriated
resources. Such action could adversely affect the ability of the Secretary to support United
States national security objectives, and therefore should be deleted.
Central America Strategy. The Administration is concerned that sections 7045(a)(l)(A) and
7045(a)(l)(B) of the bill retroactively amend and make more restrictive language providing
funding in support of the Central America Strategy. Such language would restrict the flexibility
available to the President and Secretary of State to allocate foreign assistance funding in support
of United States foreign policy objectives and further complicates compliance with numerous
other congressional directives.
Saudi Arabia. The Administration opposes section 704l(i) of the bill, which purports to impose
restrictions on funding related to how the Administration should approach civil nuclear
cooperation with Saudi Arabia. The Administration opposes language that would in any way
aim to restrict flexibility available to the Secretary of State pursuant to authorities under the
Atomic Energy Act of 1954 (as amended). The language also weakens the Administration’s
ability to support the United States civil nuclear industry’s pursuit of commercial opportunities
internationally, at a time when the entire Federal Government should be instead redoubling
efforts to counter Russian and Chinese influence in the civil nuclear market worldwide.

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 Division D—Energy and Water Development and Related Agencies Appropriations Act,
2020
Corps of Engineers
Infrastructure. The bill fails to extend section 1043 of the Water Resources Reform and
Development Act of 2014, as amended, which authorizes non-Federal implementation of
construction of Federal projects, an important tool for reforming and improving investment in
water resources.
Transparency. The Administration is disappointed that the bill fails to revise appropriations
language in five accounts as proposed in the FY 2020 Budget request to enable greater
transparency in how funds are spent. Establishing separate appropriations accounts for the
navigation trust funds would improve accountability, ensure appropriations are used in a manner
consistent with statutory requirements, and increase transparency for the public, including the
users that pay fees to finance some of these costs.
Southern Border Wall Construction. The Administration objects to the inclusion of section 108
in the bill which would preclude the use of funds provided by the bill, or any prior Act, for the
Civil Works program, for use on the design or construction of any border security infrastructure
along the southern border.
Department of Energy
Plutonium Sustainment. The Administration strongly objects to the bill’s reduction of $220
million from the FY 2020 Budget request for Plutonium Sustainment within the National
Nuclear Security Administration (NNSA). The requested level is necessary to meet the DOD
requirement to produce no fewer than 80 pits per year by 2030. This 32 percent reduction would
significantly delay the NNSA’s efforts to improve safety and security features while modernizing
the stockpile. In addition, delaying the program would force NNSA to further increase future pit
production capacity to address plutonium aging, thereby requiring a larger and more costly pit
manufacturing capability.
W87-1 Modification Program. The Administration strongly objects to the bill’s reduction of
$59 million from the FY 2020 Budget request for the W87-1 Modification Program. The W87-1
would provide enhanced safety and security compared to the legacy W78 that it is replacing.
The 53 percent funding reduction would delay the program, increase its cost, and force it out of
alignment with DOD’s plans to deploy the next generation intercontinental ballistic missile,
thereby adding risks and costs to maintain and qualify the existing warhead.
Nuclear Counterterrorism and Incident Response (NCTIR). The Administration objects to the
bill’s reduction of $32 million from the FY 2020 Budget request for the NCTIR program. This
reduction would compromise DOE ability to execute an interagency effort to speed life-saving
responses in the event of a nuclear incident in the United States. Under the Capability Forward
model, DOE would provide enhanced training and equipment to regional Federal Bureau of
Investigation (FBI) teams, enabling them to render safe a nuclear device. Given the
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 interdependence of DOE and FBI in executing the Capability Forward initiative, if the agencies’
budgets do not remain synchronized, the timeline for fielding enhanced capabilities to United
States cities would be severely disrupted.
Nonproliferation Fuels Development. The Administration objects to the bill’s inclusion of
funding for development of high-density, low-enriched fuels that could replace highly enriched
uranium for naval applications. In 2018, the Secretaries of Energy and the Navy jointly
determined that the United States should not pursue research and development of an advanced
naval nuclear fuel system based on low-enriched uranium since such a system would result in a
reactor design that is inherently less capable, more expensive, and unlikely to support the
significant cost savings associated with life-of-ship submarine reactors. To fully execute a
development effort of this magnitude would also incur significant risk and compete for resources
against other defense priorities.
Applied Energy Programs. The Administration believes the bill provides excessive funding for
DOE’s applied energy programs. The bill provides $5 billion for these programs, $3 billion
more than the FY 2020 Budget request. The Administration urges the Congress to restrain
funding levels in these programs and focus resources on early-stage research and development
(R&D) across the applied energy technology spectrum rather than late-stage or near-commercial
ready technology.
Loan Programs. The Administration is disappointed that the bill maintains the Title XVII
Innovative Technology Loan Guarantee Program, the Advanced Technology Vehicle
Manufacturing Loan Program, and the Tribal Energy Loan Guarantee Program. The FY 2020
Budget request proposed to eliminate these programs and fund only the minimum administrative
expenses necessary to monitor the existing portfolio. The Administration urges the Congress to
adopt the elimination proposal in order to recognize the private sector’s primary role in taking
risks to finance projects in the energy and automobile manufacturing sectors.
Advanced Research Projects Agency–Energy (ARPA-E). The Administration believes that the
continued funding of ARPA-E makes little strategic sense given the existence of applied energy
research elsewhere within the Department. The Administration urges the Congress to eliminate
ARPA-E and incorporate its more successful elements, such as coordination with industry and
cross-cutting research, into the Department’s applied energy programs.
Petroleum Reserve Sales. The Administration is disappointed that the bill fails to include
language implementing the liquidation and sale of the Northeast Home Heating Oil Reserve and
Northeast Gasoline Supply Reserve. Both of these reserves are costly to maintain, operationally
inefficient, and have never been used for their intended purpose.
Environmental Management. The Administration opposes the $706 million increase,
$487 million of which is defense funding, for the Environmental Management program. The bill
allocates more than half of this increase to the Hanford site in Washington State, where the
Department’s Inspector General recently compiled concerns regarding mismanagement, weak
internal controls, and fraud. The Administration urges the Congress to reallocate these funds to
higher national security priorities.
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 Office of Science. The Administration appreciates the Committee’s support for basic R&D in the
Office of Science. However, the bill provides $6.9 billion, $1.4 billion more than the FY 2020
Budget request. The Administration urges the Congress to use restraint in funding these
programs.
Versatile Advanced Test Reactor. The Administration welcomes the Committee’s support for
the Versatile Advanced Test Reactor. However, the Administration believes that the bill is
substantially underinvesting in this priority. While the Administration agrees that the most costeffective approach should be used and mechanisms such as international cost-sharing should be
considered, the insufficient funding provided in the bill would contribute to problematic delays
and negative impacts on the project’s ability to achieve its strategic goals.
Department of the Interior
Bureau of Reclamation. The bill provides $1.6 billion for the Bureau of Reclamation and the
Central Utah Project (CUP), $528 million or 50 percent above the FY 2020 Budget request. The
Administration appreciates the bill’s investment in water resources through the Bureau of
Reclamation and CUP, but believes funding should be limited to the amount in the FY 2020
Budget request and should be focused on the highest priority needs from a national perspective.
Constitutional Concerns
Certain provisions of the bill raise constitutional concerns. For instance, certain sections would
interfere with the President’s authority as Commander in Chief. Certain other provisions would
contravene the constitutional separation of powers between the Executive Branch and the
Congress. In particular, these provisions would require congressional committee approval of
certain Executive actions, in violation of INS v. Chadha. The Administration looks forward to
working with the Congress to address these concerns.
The Administration looks forward to working with the Congress as the FY 2020 appropriations
process moves forward.
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