This report discusses the section 1207 of the National Defense Authorization Act (NDAA) for Fiscal Year 2006 that provides authority for the Department of Defense (DOD) to transfer to the State Department up to $100 million per fiscal year in defense articles, services, training, or other support for reconstruction, stabilization, and security activities in foreign countries. The 111th Congress must decide whether to extend Section 1207, which expires on September 30, 2009. This report discusses what issues Congress must take into consideration when making this decision.