A continuing resolution released Monday night axes more than half of the money the Pentagon needs to meet its base realignment and closure (BRAC) commitments, potentially preventing the military services from completing the process by 2011 as required by law.

The Army, which has 61 percent of the total BRAC budget, is preparing for the consequences of appropriators’ decision to deny the Pentagon more than $3 billion out of the $5.8 billion authorized last year for BRAC.

That decision could have widespread knock-on effects on the rotation of troops in and out of Iraq and Afghanistan, the building of new brigades and the Army’s plan to bring troops back from Germany.

Senior military officials had been pressuring lawmakers to add billions of dollars for necessary base closures as well as military construction and quality-of-life projects to the continuing resolution that would fund the government until the end of fiscal year 2007.

A failure to do so could have a grim impact on the services, military officials warned.

But appropriators did not heed the services’ call and allotted $2.5 billion for BRAC costs for the military to begin work on the highest-priority programs. The money represents an increase of $1 billion over the 2006 budget level.

“It is pretty devastating for us,” said an Army official who asked not to be quoted by name. 

The service has put together a complex plan that links its military construction and troop movement plan with BRAC implementation.

Faced with the loss of billions of dollars this year, the Army is considering how to bring in additional funding for its projects. The delay of those projects ultimately will have an impact on the service’s tactical and operational units, according to the official.

The Army and the rest of the military services could get more money in the upcoming emergency supplemental, but several sources pointed out that it is unlikely the military would get the entire $ 3.3 billion, if much of it at all, in the 2007 war supplemental.

Currently, there is no request of such nature in the supplemental, according to the Army official.

The Pentagon is submitting its supplemental request for the rest of 2007 together with its 2008 budget next week. The service would depend on Congress’s “generosity” to get more money, the official added.

Moreover, the service may be forced to readjust its 2008 budget submission because several requests for military construction are predicated on the completion of projects in 2007, the Army official said.

“There is a trail of things predicated on getting BRAC money in a timely fashion,” the official said.

The Army is standing up new brigades as part of its so-called modularity effort. A lack of funds could shortchange the Army’s plan to create a more easily deployable force and affect overseas operations.

The Army’s force-rotation plan and overall readiness rely on completing its “modularity” plan on time. The Army now faces the possibility of lacking adequate facilities to train new forces and maintain equipment.

For soldiers rotating in and out of Iraq and Afghanistan, the Army also is building facilities; some of that construction is in part linked to BRAC.

In addition, without full BRAC funding, the Army may delay bringing back forces from Germany and keep units returning from conflicts inactivated for a longer period than desired, the official said.

A lack of funding may force the Army to resort to temporary housing — a practice that has long been criticized by Congress.

While it saves money in the short term, it becomes a “colossal waste of money,” according to an industry source. The Army already was criticized for the use of temporary facilities to implement its modularity plans.

“Congress does not consider BRAC as an emergency that they have to do,” the Army official said. “They seem to think that they can extend BRAC.” Such decisions could have wider implications, the official added.

The Army may look for authority to transfer, or reprogram money from its basic military construction accounts into BRAC accounts, said the industry source.

Ultimately, the services and Congress may have to look at the possibility of delaying the implementation of BRAC, but that won’t be able to happen without a change in the law. Currently, the Pentagon has six years after the approval of a BRAC round (in this case, 2005) to finish the process.

In order to increase money for BRAC 2008 and 2009 to catch up, the Army may have to trade money from its regular military-construction accounts, the official said, and that does not come without consequences.

The House is taking up the continuing resolution today and strong debate over the bill is expected.