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.

This report shows in tabular form how much the Administration requested and how much Congress appropriated during the past 11 years for U.S. payments to the multilateral development banks (MDBs). It also provides a brief description of the MDBs and the ways they fund their operations.