Pursuant to a congressional request, GAO reviewed fiscal year (FY) 1993 and FY 1994 funding and spending for Department of Defense (DOD) programs designed to address the economic challenges to communities as a result of reduced defense spending.

GAO found that: (1) in FY 1993 DOD committed or obligated about $2.7 billion of the approximately $3.2 billion authorized and appropriated for 57 defense conversion programs; (2) in FY 1994 DOD committed or obligated about $1.9 billion of the approximately $2.9 billion authorized and appropriated for 54 defense conversion programs; (3) estimates of DOD funds to be spent on defense reinvestment and conversion initiatives for FY 1993 through FY 1997 are increasing; (4) DOD was originally scheduled to receive, over 5 years, 42 percent of the President's $19.6-billion defense reinvestment initiative; and (5) the Office of Management and Budget estimates that the cost of the President's initiative will be $21.6 billion, while the DOD portion has increased to 59 percent.