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Pursuant to a congressional request, GAO discussed the Coast Guard's budgets for fiscal years 1999 and 2000, focusing on the: (1) Coast Guard's progress in justifying the Deepwater Replacement Project and addressing GAO's concerns about its affordability; (2) Coast Guard's plans for spending its fiscal year (FY) 1999 emergency funds; and (3) budget strategies the agency may have to consider in the future to address continuing budget constraints.

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