SPECIAL DEFENSE ACQUISITION FUND MATTERS.

SEC. 1202. [10 U.S.C. 114 note] SPECIAL DEFENSE ACQUISITION FUND MATTERS. (a) Increase in Size.—Effective as of October 1, 2016, paragraph (1) of section 114(c) of title 10, United States Code, is amended by striking “$1,070,000,000” and inserting “$2,500,000,000”. (b) Limited Availability of Certain Amounts.—Such section is further amended— (1) in paragraph (2)(A), by striking “limitation in paragraph (1)” and inserting “limitations in paragraphs (1) and (3)”; and (2) by adding at the end the following new paragraph: “(3) Of the amount available in the Special Defense Acquisition Fund in any fiscal year after fiscal year 2016, $500,000,000 may be used in such fiscal year only to procure and stock precision guided munitions that may be required by partner and allied forces to enhance the effectiveness of current or future contributions of such forces to overseas contingency operations conducted or supported by the United States.” . (c) [10 U.S.C. 114 note] Reports.— (1) Initial plan on use of authority.—Before exercising authority for use of amounts in the Special Defense Acquisition Fund in excess of the size of that Fund as of September 30, 2016, by reason of the amendments made by this section, the Secretary of Defense shall, with the concurrence of the Secretary of State, submit to the appropriate committees of Congress a report on the plan for the use of such amounts. (2) Quarterly spending plan.—Not later than 30 days before the beginning of each fiscal year quarter, the Secretary of Defense shall, with the concurrence of the Secretary of State, submit to the appropriate committees of Congress a detailed plan for the use of amounts in the Special Defense Acquisition Fund for such fiscal year quarter. (3) Annual updates.—Not later than 90 days after the end of each fiscal year, the Secretary of Defense shall, with the concurrence of the Secretary of State, submit to the appropriate committees of Congress a report setting forth the inventory of defense articles and services acquired, possessed, and transferred through the Special Defense Acquisition Fund in such fiscal year. (4) Appropriate committees of congress defined.—In this subsection, the term “appropriate committees of Congress” has the meaning given that term in section 301(1) of title 10, United States Code (as added by section 1241(a)(3) of this Act).