Sec. 1041. LIMITATION ON EXPENDITURE OF FUNDS FOR EMERGENCY AND EXTRAORDINARY EXPENSES FOR INTELLIGENCE AND COUNTER-INTELLIGENCE ACTIVITIES

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## SEC. 1041 LIMITATION ON EXPENDITURE OF FUNDS FOR EMERGENCY AND EXTRAORDINARY EXPENSES FOR INTELLIGENCE AND COUNTER-INTELLIGENCE ACTIVITIES ###

(a)Limitation Subsection

(c)of section 127 of title 10, United States Code, is amended by adding at the end the following new paragraph: > > #### “(4) > > > #####

(A)> > Notwithstanding paragraph (1), funds may not be obligated or expended in an amount in excess of $100,000 under the authority of subsection

(a)or

(b)for intelligence or counter-intelligence activities until the Secretary of Defense has notified the congressional defense committees and the congressional intelligence committees of the intent to obligate or expend the funds and 15 days have elapsed since the date of the notification. > > > ##### “(B) > > The Secretary of Defense may waive subparagraph

(A)if the Secretary determines that such a waiver is necessary due to extraordinary circumstances that affect the national security of the United States. If the Secretary issues a waiver under this subparagraph, the Secretary shall submit to the congressional defense and congressional intelligence committees, by not later than 48 hours after issuing the waiver, written notice of and justification for the waiver.” > . ###

(b)Annual Report Subsection

(d)of such section is amended— ####

(1)by striking “Not later” and inserting “(1) Not later”; ####

(2)by striking “to the congressional defense committees” and all that follows through the period at the end and inserting an em dash; and ####

(3)by adding at the end the following: > > ##### “(A) > > to the congressional defense committees a report on all expenditures during the preceding fiscal year under subsections

(a)and (b); and > > > ##### “(B) > > to the congressional intelligence committees a report on expenditures relating to intelligence and counter-intelligence during the preceding fiscal year under subsections

(a)and (b). > > > #### “(2) > > Each report required to be submitted under paragraph

(1)shall include a detailed explanation, by category of activity and approving authority (the Secretary of Defense, the Inspector General of the Department of Defense, and the Secretary of a military department), of the expenditures during the preceding fiscal year.” > . ###

(c)Definition Such section is further amended by adding at the end the following new subsection: > > ### “(e) Definition of Congressional Intelligence Committees > > In this section, the term ‘congressional intelligence committees’ means the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate.” > . ###

(d)Report on Intelligence and Counter-intelligence Funding Authorities Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense and intelligence committees a report describing current and, if necessary, any required, funding authorities to sustain recurring expenses for intelligence and counter-intelligence activities in lieu of section 127 of title 10, United States Code. Such report shall include a description of the potential benefits and negative consequences of the codification of a distinct authority for such purposes.