Pentagon leaders are urging Congress to pass the emergency war-spending bill swiftly to avoid closing down a popular program designed to respond to urgent local needs in Iraq and Afghanistan.

Secretary of Defense Robert Gates and Chairman of the Joint Chiefs of Staff Adm. Mike Mullen told a Senate panel Tuesday that the Commander’s Emergency Response Program (CERP) will be out of money by June.

The Pentagon requested $1.7 billion for CERP in the 2008 war emergency supplemental, but Congress only approved $500 million as part of 2008 supplemental funding it passed last year. At least one senator has expressed concerns about the growing scope — and expense — of the project.

Without the remaining $1.2 billion, “this vital program will come to a standstill,” Gates warned. The Pentagon cannot extend funding beyond the $977 million authority provided in the 2008 defense authorization bill, Gates explained.

CERP is a military-led effort that pays for urgent local projects both in Iraq and Afghanistan.

If field commanders learn that a certain area is in dire need of facilities, such as water compact units, sewage pumps, health centers or school renovations, they can immediately undertake the projects since they have authority over the money. Oftentimes, young captains are given access to this money to respond quickly to the needs of local communities.

The money is also used to pay salaries for the Sons of Iraq, who provide security in a number of communities, explained Mullen. As the U.S. forces advance in securing more areas across Iraq, CERP has become “ammunition for success throughout Iraq where security has improved,” said Mullen.

Mullen said that captains are only given specific amounts of money for a given period of time and that the money is carefully monitored.  

One lawmaker expressed concern over the growing scope of the program.

“It boggles my mind a little bit to have trickling down $1.3 billion ... to captains who are getting maybe $200 or $300 [apiece to distribute],” said Sen. Ted Stevens (R-Alaska), the panel’s ranking member. “This fund is building up and up and up.”

Meanwhile, Gates said that with Congress’s delay in approving the remaining $102.5 billion for 2008, the Pentagon is using fourth-quarter funds from the 2008 defense budget.

The Army, after June 15, will run out of money to pay its soldiers, including those serving in Iraq and Afghanistan, said Gates.

Around July 5, all services starting with the Army will run out of operations and maintenance funds.

“This may result in civilian furloughs, limits on training and curbing family support activities,” said Gates.

If war funds will not be available by the end of May, the Pentagon can transfer funds from Navy and Air Force military personnel accounts to pay soldiers, but that maneuver can sustain the Pentagon only until late July. The Pentagon can also ask Congress for a limited fund transfer authority, but that also will help the department only through the end of July.

If Congress does not approve the supplemental by Memorial Day, the Pentagon will send a reprogramming request — taking money from less pressing accounts to front war costs — on May 27 to avoid depletion of the Army’s personnel and operations funds, Gates said.

The war funding measure failed in the House last week. On Tuesday, Senate Majority Leader Harry Reid (D-Nev.) lowered expectation that the Senate would be able to vote on the package before Memorial Day recess next week.

Both Gates and Mullen expressed concern over news that the House, and therefore Congress, may not approve the fiscal 2009 defense appropriations bill. The Hill reported Tuesday that Rep. John Murtha (D-Pa.) was unsure the House Appropriations Committee will mark up a bill this year.

The consequences of not having Pentagon spending approved for 2009 “are of great significance,” said Mullen.

If Congress only approves a continuing resolution funding the Pentagon at the 2008 base budget levels, the department will lose the $8.7 billion requested for 2009 to grow the Army and the Marine Corps, according to Gates.

The Department of Defense would also not receive money to stand up the new Africa Command, nor would it have the necessary $1.8 billion to implement base closures and realignments, Gates added.

The chairman of the Senate Defense panel assured Gates he will take up the 2009 defense appropriations bill.

“I will assure this committee will act expeditiously as we have done in the past,” said Sen. Daniel Inouye (D-Hawaii).