In an early signal about fiscal year 2007 spending, the House Appropriations Committee has recommended slicing construction accounts at the Depts. of Defense and Veterans Affairs. The panel on May 10 approved a spending measure that would provide $2 billion for DOD family housing construction, down 7% from 2006, and $6.1 billion for other military building, a 14% cut. The positive note for construction is that the budget for the new base realignment and closure round would more than triple, to $5.5 billion.
VA’s major construction account also would suffer a hit. Appropriators are allotting $284 million for that program in 2007, down 53% from 2006, even when this year’s emergency appropriations are excluded.
There has been no Senate action yet on 2007 appropriations.