Summary: Pursuant to a congressional request, GAO provided information on how the Department of Defense (DOD) prioritizes its Morale, Welfare, and Recreation (MWR) budget. GAO noted that: (1) the extent to which MWR activities are supported by DOD appropriated funds is based on the type of activity or program being supported; (2) MWR activities such as child development centers, libraries, and youth activities receive more funding than golf courses, officer and enlisted clubs, and bowling centers, since these latter activities generate revenues which support other MWR activities; (3) MWR construction project prioritization is based on in-house and external project reviews, various service and DOD organization reviews, and congressional notification and approval; (4) child care centers compete for construction priority because they are built using nonappropriated funds; (5) the services have unmet MWR needs, since funding limitations have prevented the construction of all requested projects; (6) when selecting revenue- and nonrevenue-generating construction projects, the services try to ensure that sufficient funds are available to support MWR programs; (7) $38.1 million of the $71.6 million in 1996 MWR appropriated funding went towards increasing child care services; (8) DOD plans to satisfy 65 percent of its child care needs by the end of 1996 and 80 percent by 2005; (9) DOD expects that the remaining 20 percent of its child care needs will be met by private sources; and (10) the MWR funds used to support the existing golf courses at Andrews Air Force Base could have been used to fund other bases' lower priority nonappropriated projects.