Source: https://docs.house.gov/billsthisweek/20180723/CRPT-115hrpt863.pdf

JOHN S. McCAIN
NATIONAL DEFENSE AUTHORIZATION ACT
FOR FISCAL YEAR 2019
CONFERENCE REPORT TO ACCOMPANY H.R. 5515

[...]

LEGISLATIVE PROVISIONS NOT ADOPTED

Inclusion of funds for Air Force pass-through items in Defense-wide budget for the Department of Defense

The Senate amendment contained a provision (sec. 1002) that would require the Secretary of Defense to transfer Air Force pass-through budget items to the defense-wide budget for fiscal year 2020 and future budget requests.

The House bill contained no similar provision.

The Senate recedes.


Source: https://www.congress.gov/congressional-report/115th-congress/senate-report/262/1

JOHN S. McCAIN
NATIONAL DEFENSE AUTHORIZATION ACT
FOR FISCAL YEAR 2019
SENATE REPORT TO ACCOMPANY S. 2987

Inclusion of funds for Air Force pass-through items in Defense-wide budget for the Department of Defense (sec. 1002)

The committee recommends a provision that would require the Secretary of Defense to transfer Air Force pass-through budget items to the defense-wide budget for fiscal year 2020 and future budget requests.

Each year, a significant portion of the Air Force budget contains funds that are passed on to, and managed by, other organizations with in the Department of Defense. This portion of the budget, called "pass-through," cannot be altered or managed by the Air Force. It resides within the Air Force budget for the purposes of the President's budget request and apportionment, but is then transferred out of the Service's control. In fiscal year 2018, the Air Force pass-through budget amounted to approximately $22.0 billion, or just less than half of the total Air Force procurement budget. The committee believes that the current Air Force pass-through budgeting process provides a misleading picture of the Air Force's actual investment budget.