To provide for the transfer of the Nebraska Avenue Naval Complex in the District of Columbia to facilitate the establishment of the headquarters for the Department of Homeland Security, to provide for the acquisition by the Department of the Navy of suitable replacement facilities.

(This measure has not been amended since it was passed by the House on June 14, 2004. The summary of that version is repeated here.)

Directs the Secretary of the Navy to transfer the parcel of Department of the Navy real property in the District of Columbia known as the Nebraska Avenue Complex to the administrative jurisdiction of the Administrator of General Services to accommodate the Department of Homeland Security (DHS). Authorizes the Secretary to retain jurisdiction over that portion of the Complex that, as of this Act's enactment date, is being used to provide Navy family housing. Directs the Secretary, within nine months, to: (1) complete the transfer of the Complex to the Administrator; and (2) relocate Navy activities at the Complex to other locations.

Makes the Secretary of DHS responsible for the payment of the costs to move furnishings and equipment related to the initial relocation of Navy activities from the Complex and costs incident to the initial occupancy by such activities of interim leased space. Authorizes appropriations to DHS for FY 2005 through 2007.

Expresses the sense of Congress that the Secretary of the Navy should receive, from Federal agencies other than the Department of Defense (DOD), funds authorized and appropriated for the purpose of covering reasonable costs incurred by the Secretary to permanently relocate Navy activities from the Complex. Directs the Secretary to submit to the Director of the Office of Management and Budget and Congress an initial and revised estimates of such costs; (2) use relocation funds received from sources outside DOD to relocate Navy activities from the Complex; and (3) notify Congress in writing when a decision is made to carry out a military construction project using such funds.

Directs the Secretary of the Navy, at the end of the five-year period beginning on the date on which the transfer of the Complex is to be completed, to submit to Congress a report specifying: (1) the total amount needed to cover both the initial and permanent costs of relocating Navy activities; (2) the total amount of the initial relocation costs paid by the Secretary of DHS; and (3) the total amount of appropriated funds received by the Secretary of the Navy from sources outside DOD to cover the permanent relocation costs. Directs: (1) the President to certify to Congress whether the amounts specified in the report are sufficient to cover both the initial and permanent relocation costs; and (2) the Administrator, if the President certifies that such amounts are insufficient, to restore the Complex to the Navy's jurisdiction, at the request of the Secretary, who then shall convey the Complex by competitive sale and deposit amounts received in a special Treasury account to be used for facility maintenance and repair or environmental restoration.