The House passed its version of the fiscal year (FY) 2000 defense authorization bill on June 10th and the Senate passed its version on May 27th. Both bills would add roughly $8.3 billion to the administration’s $280.5 billion request for national defense. Conferees from the House and Senate are now meeting to iron out the differences between these two bills. Both houses then will vote on the bill before sending it to the president for his signature.

On June 8th the Senate passed its version of the FY 2000 defense appropriations bill and on July 22nd the House passed its version of the funding bill. When combined with funding in other defense-related appropriations bills (primarily the military construction and energy & water appropriations bills), the House would appropriate a total of about $287.8 billion for national defense, $7.3 billion above the president's request. By comparison, the Senate would appropriate a total of some $285.2 billion, a $4.6 billion increase. Conferees are not expected to reconcile differences between the two versions of the defense appropriations bill until after the August congressional recess.

Highlights

• Procurement: The Senate authorization bill would add about $2.9 billion and the House version, about $2.6 billion to the administration’s $53 billion FY 2000 request for procurement. The House appropriations bill would cut about $52 million from the request, while the Senate appropriations bill would add $1.9 billion in procurement funding.

• Research and Development (R&D): Both the Senate and House authorization bills would add $1.5 billion to the administration’s $34.4 billion request for research and development (R&D). The House appropriations bill would add $2.5 billion, while the Senate would add $1.9 billion in R&D funding.

• Kosovo Supplemental: In addition to the funding provided in the FY 2000 defense authorization act, Congress appropriated $1.838 billion in FY 2000 contingent emergency funding in the recently enacted FY 1999 Kosovo supplemental. This funding would cover the FY 2000 costs of the pay raise and retirement changes included in the two defense authorization bills, but—because of its emergency designation—would not count toward the FY 2000 discretionary spending caps specified in the 1997 balanced budget agreement.

• Military Pay: Both the Senate and House authorization bills include a 4.8 percent military pay raise for 2000, 0.4 percent above the level requested by the administration. The two bills differ, however, over future pay raises. The Senate bill would require that future pay raises be 0.5 percent above the employment cost index (ECI)—a measure of wage growth in the overall civilian economy—while the House bill would set future pay increases at the same rate as the ECI.

• Retirement Benefits: Consistent with the administration’s request, both bills would also repeal the Military Retirement Reform Act of 1986 (“REDUX”). Under both bills, military personnel who joined after July 31, 1986 would now be able to retire after 20 years of service at 50 percent pay, rather than 40 percent pay. In other words, they would be provided essentially the same retirement benefits currently available to those who entered service on or before July 31, 1986.

• Ballistic Missile Defense (BMD): The administration requested about $4.25 billion in funding for BMD programs in FY 2000, including $550 million in contingent emergency funding approved in the FY 1999 emergency supplemental and $3.7 billion in new funding. In terms of new funding, the House and Senate authorization bills would provide, respectively, $123 million and $424 million more than requested. The House appropriations bill would actually provide $3.3 million less in new funding, but would allocate $230 million in FY 1999 emergency funding to FY 2000. Finally, the Senate appropriations bill would provide $476 million more in new funding for BMD programs.

• Military Construction: The House authorization bill would add $2.7 billion and the Senate version $2.8 billion to the $2.3 billion requested by the administration for military construction, and $486 million and $498 million, respectively, to its $3.1 billion request for family housing. The House and Senate military construction appropriations bills would add $2.6 billion and $2.4 billion, respectively, to the military construction request and $455 million and $424 million, respectively, to the family housing request. For the most part, this change reflects Congress’ rejection of the administration’s proposal to incrementally fund military construction projects in FY 2000, rather than a significant expansion of military construction and family housing projects.

• Department of Energy (DoE): The Senate and House authorization bills would cut, respectively, about $170 million and $76 million from the administration’s $12.4 billion request for DoE defense activities. The House energy & water appropriations bill would provide $11.371 million, $900 million less than authorized and nearly $1 billion less than requested. Conversely, the Senate energy & water appropriations bill would provide $12.612 billion, an increase of $252 million over the request and $422 million over the authorizers.

• Other: The House bill would modify the prohibition against obligating funds for the retirement of strategic nuclear delivery systems below START I levels. This change would allow the president to waive the prohibition as long as 98 percent of the 6,000 warheads permitted under START I remain deliverable by strategic nuclear delivery vehicles. The prohibition also could be waived if Russia ratifies START II. On the other hand, the Senate authorization bill would permit the Navy, consistent with START II, to reduce its nuclear submarine force from 18 to 14 boats as the Service requested. However, the Senate would prohibit further adjustments to the strategic nuclear force for FY 2000.

• House authorization bill additions: $60 million for one unrequested V-22 Osprey, $252 million for four unrequested KC-130J aircraft, and $27 million for three unrequested UH-60 helicopters.

• Senate authorization bill additions: $375 million for partial funding of the LHD-8 amphibious assault ship (altogether this ship is projected to cost over $1.5 billion), $123 million for two unrequested V-22 Osprey tilt-rotor aircraft, $130 million for two unrequested KC-130J aircraft, $90 million for nine unrequested UH-60 helicopters, and $67 million for three unrequested CH-60 helicopters.

• House appropriations bill changes: Cut the entire $1.8 billion request for F-22 procurement. Added $100 million more for Joint Strike Fighter development, $440 million for eight unrequested F-15s, $98 million for five more F-16s, $60 million for an additional MV-22 Osprey tilt-rotor aircraft, $564 million for eight unrequested KC-130J tankers, $121 million for 11 unrequested UH-60 helicopters, and $76 million for four unrequested CH-60 helicopters.

• Senate appropriations bill additions: $500 million for partial funding of the LHD-8 amphibious assault ship, $150 million more for a national missile defense system, $220 million for four unrequested F-15s, $123 million for two unrequested MV-22s, $64 million for one unrequested KC-130J aircraft, $121 million for 11 unrequested UH-60 helicopters, and $76 million for four unrequested CH-60 helicopters.

Strategic Forces
B-2: The FY 2000 request includes $106.9 million to cover various production support costs and $202 million for continued development of the B-2 bomber. The House authorization bill would add $35 million for post-production support, while the Senate authorization bill would fund the program at the requested level. The House authorization bill would also add $152 million for integration of a new datalink, a new mission display system and a stealth enhancement program. In addition, the House bill would require the Air Force next year to submit a conceptual study of a next-generation bomber for deployment in 2015. Similarly, the Senate version would add $37 million in R&D funding to begin a near-term modernization initiative involving the installation of a datalink (Link 16) in the bomber.

The House appropriations bill would provide $75.5 million in procurement funding, reflecting a transfer of $47.6 million to the O&M account for interim contractor support and an addition of $16.2 million for B-2 shelters. The bill also would provide $344.2 million, a $142 million increase, for continued development of various B-2 upgrades. The Senate appropriations bill also would add $37 million to the request to upgrade the B-2 and to enhance maintainability.

Ballistic Missile Defenses: The administration’s request includes $4.25 billion for ballistic missile defense programs, of which $3.9 billion is for the Ballistic Missile Defense Organization (BMDO). This amount also includes $550 million of the $1 billion provided for missile defense in the FY 1999 emergency supplemental. In addition, the administration is requesting $229 million for the Space Based Infrared System-Low (SBIRS-Low). SBIRS-Low is a 24-satellite constellation program intended to provide midcourse tracking and discrimination data for national missile defense (NMD) and theater missile defense (TMD) systems, as well as supplement other intelligence and space surveillance capabilities.

The House authorization bill would add $122.8 million to the administration's overall request, while the Senate version would add $424.0 million. The Senate appropriations bill would add $476.1 million. The House appropriations bill would cut $3.3 million from the overall request.

National Missile Defense (NMD): The administration requested $836.6 million to continue development of a NMD system and allocated another $450 million in FY 2000 from the FY 1999 supplemental. This system is designed to protect the United States from a limited attack by intercontinental-range ballistic missiles (ICBMs). The House authorization bill would decrease NMD R&D funding slightly, by $700,000. The Senate version would fund FY 2000 NMD programs at the requested level.

The House appropriations bill would provide $761.6 million for NMD, and direct the administration to use $75 million from the FY 1999 emergency supplemental to entirely offset the reduction. The Senate appropriations bill as amended would provide $986 million for NMD, an increase of $150 million. This year Congress also passed, and the president recently signed, separate legislation declaring that it is the policy of the United States to deploy a national missile defense system “as soon as technologically feasible.”

Theater Missile Defense (TMD): Both the Theater High Altitude Area Defense (THAAD) and the Navy Theater-wide (NTW) programs are intended to provide broad area protection to forward-deployed U.S. troops. The THAAD program has been the lead TMD system, but in the wake of concerns over a series of THAAD testing failures, the administration has decided to hold a competition between it and the NTW system. Under this new plan, the winning program will be chosen by the end of 2000 and will receive the lion's share of future funding, although the other system might eventually be deployed as well. The FY 2000 request includes R&D funding of $612 million for THAAD and $330 million for NTW.

The House authorization bill would cut THAAD funding by $105 million. Of this amount, $15 million would represent a real cut (equal to the amount by which the contractor, Lockheed Martin, is to reimburse DoD as a consequence of program troubles), and $90 million would be a transfer of funds from THAAD to a new program element. This new program element would be used to fund future tests by either THAAD or NTW, depending on which program demonstrates greater success.

The Senate authorization bill also would cut THAAD funding, but only by the $15 million DoD is to be reimbursed by Lockheed Martin. The Senate bill would also provide a $120 million increase in the NTW program to accelerate its development.

The House and Senate appropriations bills would both decrease THAAD funding to $527.9 million, eliminating the $83.8 million requested for THAAD engineering and development. The House appropriations bill would add $90 million and the Senate bill, $50 million for the NTW program.

PAC-3: The FY 2000 request includes $29.1 million for development and testing and $300.9 million for procurement of the Patriot Advanced Capability-3 (PAC-3) missile, a land-based, shorter range TMD interceptor designed to provide a “lower tier” defense against theater ballistic missiles. The House authorization bill would fund the procurement request and increase R&D by $48.5 million. In response to concerns about shortfalls in the FY 2000 procurement budget, the Senate version would add $60 million in procurement funding, for a total of $360.9 million, to ensure the program can commence low-rate initial production in FY 2000. The bill also would boost development funding by $152 million to a total of $181.4 million.

Both appropriations bills follow the recommendations of their respective authorization bills. The House appropriations bill would fund the procurement request and would add $48.5 million to PAC-3 development; in addition it would direct the administration to apply $75 million in FY 1999 emergency supplement funds to PAC-3 development. The Senate appropriations bill would fully fund the procurement request and would add $152 million to cover anticipated growth in program costs.

Navy Area Defense System: The House authorization bill would provide the requested $324 million for the lower-tier Navy Area Defense system, but would shift the $55 million requested for procurement to the R&D account. By contrast, the Senate would fund the program at the levels requested by the administration, including $55 million for procurement and $268.4 million for continued development. Both appropriations bills would provide $310 million for Navy Area Defense R&D, a $41.8 million addition. However, the Senate bill would not fund the $55 million procurement request for Navy Area Defense.

Other Programs: Both authorization bills would authorize the $308.6 million requested for the Air Force Airborne laser program, $24.9 million for the Army Aerostat program, and $229 million for SBIRS-Low. The Senate authorization bill would add $25 million to the space-based laser program, while the House bill would cut $15 million from the program.

Both appropriations bills would provide the request $308.6 million for the Airborne laser program and $24.9 million for the Aerostat program. The House appropriations bill would cut $45 million from the space-based laser program, while the Senate version would add $10 million—$5 million less than authorized—to the $138.8 million request. The House bill would fully fund the SBIRS-Low request, while the Senate bill would add $50 million for a total of $279 million.

Tactical Aircraft
F-22: The Air Force plans to spend at least $63 billion to develop and procure 339 F-22s, a next-generation, air superiority fighter intended to replace the current F-15 fighter fleet. As part of the 1997 Quadrennial Defense Review (QDR), the Air Force trimmed its planned purchase from 438 to 339 aircraft and reduced the maximum, annual projected production rate from 48 to 36, to be reached in FY 2004. In its FY 2000 request, the administration includes $1.575 billion to procure six F-22s, $277 million in advanced procurement for 10 aircraft in FY 2001 and $1.222 billion to continue development and testing. Both authorization bills and the Senate appropriations bill would provide the requested amount.

By contrast, the House appropriations bill would fund only the $1.222 billion R&D request. It would provide no funding for procurement. Instead, it recommends a pause in the program based on: technical concerns, including manufacturing problems with titanium casting and excess engine vibration; questions regarding the program's affordability and high potential for further cost growth; the current U.S. numerical advantage over potential adversaries in advanced fighter aircraft; the potential availability of affordable alternatives; and the need to address, in the appropriators' view, more pressing problems in readiness, personnel and other modernization programs.

F/A-18E/F Super Hornet: The Navy is requesting $2.692 billion in procurement funding for 36 F/A-18E/Fs in FY 2000, $162 million in advanced procurement funding and $143 million for continued R&D. The Navy procured the first 12 of these multi-mission tactical fighters in FY 1997, and will procure a total of between 548 and 785 aircraft. The precise number will depend in large part on whether the Joint Strike Fighter program experiences significant cost growth, technical problems or schedule delays. The F/A-18E/F offers enhanced range, payload and survivability compared to its predecessor, the F/A-18C/D. It is intended to replace not only the C/D, but also the A-6E and F-14 aircraft, aboard U.S. aircraft carriers. Both authorization bills would fully fund the request.

The House appropriations bill would fund the procurement request, and would add $40 million in R&D funds for development of a jammer variant of the E/F. The Senate appropriations bill would provide a net increase of $4 million to the procurement request, a $10 million cut due to a late contract award (ATAR) and a $14 million increase toward the advance procurement of 6 additional aircraft in FY 2001. The Service is planning to procure 42 F/A-18E/Fs in FY 2001.

Joint Strike Fighter (JSF): The JSF program is intended to yield an affordable, next-generation strike fighter to replace the existing fleets of Air Force F-16s, Navy F/A-18C/Ds and F-14s, and Marine Corps F/A-18C/Ds and AV-8s. Lockheed Martin Corporation and the Boeing Company are building prototypes of the JSF. The winner of this "flyoff" will be selected to produce the JSF, with engineering and manufacturing development scheduled to begin in FY 2001. Altogether, according to the QDR, the Services will buy 2,852 JSF aircraft for an estimated $153-223 billion (FY 2000 dollars). This year's request includes $242 million in Air Force and $235 million in Navy funding for the JSF, or $477 million total.

The administration’s request includes $33 million for development of an alternate engine. The House authorization bill would add $30 million to accelerate development of such an engine. Similarly, the Senate version would add $15 million to reduce technical risks and to accelerate development of this engine.

The House appropriations bill would provide $576.6 million for the JSF, a $100 million increase in Air Force R&D funding for risk reduction. Like the Senate authorization bill, the Senate appropriations bill would provide an extra $15 million for the development of an alternate engine.

F-15 Fighter: The Air Force did not request any F-15s for FY 2000, and neither authorization bills includes funding for new F-15s. However, the House appropriations bill would provide $440 million for eight F-15s and $152.7 million, a $40 million increase, for development of a service life extension program and jamming countermeasures. The Senate appropriations bill as amended includes $220 million for four aircraft.

F-16 Fighter: The Air Force's budget request includes $252.6 million to procure 10 F-16 fighters. The latest Air Force plan calls for buying a total of 30 F-16s through FY 2003. According to the Air Force these aircraft are needed to address a shortfall in aircraft designed for the suppression of enemy air defenses. The request also includes $112.5 million to develop upgrades of the F-16. The House authorization bill would authorize slightly less than the requested level of funding, while the Senate version would add $14.4 million to develop an imagery module for the plane's data modem, allowing it to process still target imagery.

The House appropriations bill would provide $374.6 million, an increase of $98 million to procure five additional aircraft plus $24 million in advance procurement funding for the FY 2001 buy. It would also boost R&D funding by $15 million to improve F-16 jamming countermeasures. The Senate appropriations bill would add $50 million, for $302.6 million in all, to acquire 12 F-16 in FY 2000, including $24 million in advance procurement funding for more F-16s in FY 01. The bill would add $6 million in development funding.

Other Aircraft
C-17: The C-17 is a wide-body cargo aircraft intended to replace existing C-141 aircraft in the strategic airlift role. To date the Air Force has procured 70 C-17s. It is requesting funding for 15 more aircraft in FY 2000. Original plans had called for acquiring another 35 between FY 2001 and FY 2003 (120 in all). Now the Air Force plans to purchase an additional 14 C-17s over the FY 2003-05 period for special operations forces (134 in all). The request includes $3.080 billion to procure 15 aircraft, $304.9 million in advance procurement funding for 15 C-17s in FY 2001 and $170.7 million for continued development. The Senate authorization bill would fund the program at the requested level, while the House version would add $3.5 million in advance procurement funding for an Air National Guard maintenance training system.

The House appropriations bill would cut $409 million in procurement funding, transferring most of that funding ($396.6 million) for interim contractor support, to the O&M budget. It would also reduce the R&D request by $20.8 million. The Senate appropriations bill would fully fund the request.

V-22: The administration request includes $796.4 million for 10 Marine Corps versions of the V-22 (MV-22) aircraft, $71 million in advance procurement funding for 16 MV-22s in FY 2001, and $49.5 million in advance procurement funding for an Air Force variant, the CV-22. The administration also is requesting $183 million for continued R&D. A tilt-rotor, vertical take-off and landing aircraft, the V-22 is intended primarily to replace the Marine Corps' CH-46 and CH-53 helicopters. The QDR calls for acquisition of 360 MV-22s, 50 CV-22s for special operations and 48 Navy variants, the HV-22, for search and rescue missions. Over the next six years, the Marine Corps plans to buy a total of 136 MV-22s (three more than in last year's plan) and the Air Force, 37 CV-22s.

Both authorization bills would approve the request for continued development and for advance procurement funding for the CV-22. The Senate bill would authorize $1.04 billion for a total of 12 MV-22s, $123 million and two aircraft more than requested, while the House bill would authorize $976.9 billion for 11 MV-22s, $60 million and one aircraft more than requested. Both would fully fund the Air Force request for CV-22 advance procurement.

As in the House authorization bill, the House appropriations bill would add $60 million for one more MV-22 in FY 2000. But it would cut advance procurement funding for the CV-22 by $12.5 million. Like the Senate authorization bill, the Senate appropriations bill would add $123 million to acquire two additional MV-22s. Both appropriations bills would fully fund the R&D request for the program.

E-8 Joint Surveillance Target Attack Radar Systems (JSTARS): The administration's request contains $130.5 million for continued development and $280.3 million to procure the 14th and final JSTARS aircraft. JSTARS is an airborne system designed to locate enemy forces operating behind the forward edge of the battle area. As part of the 1997 QDR, the Air Force reduced the program goal from 19 to 13 aircraft with the understanding that NATO would procure 12-16 JSTARS. In the end, NATO decided against buying any JSTARS, leading the Air Force to boost its planned procurement from 13 to 14 aircraft.

The House authorization bill would add $46 million in advance procurement funding for a 15th aircraft in FY 2001. The Senate version would add $46 million in procurement funding to be used either to close down the production line or as advance procurement funding for a 15th aircraft, pending the outcome of a DoD review of how best to meet its requirements. The House authorization bill would increase R&D funding to $160.5 million and the Senate bill to $185.7 million, primarily to continue the radar technology insertion program.

The House appropriations bill would provide $468.5 million for procurement, a $188 million increase to buy two JSTARS in FY 2000 and $162 million for R&D. The Senate appropriations bill would provide an unrequested $46 million in procurement funding for another aircraft or for production line shutdown expenses.

C-130J: Intended to replace the C-130E early next century, the C-130J is an intratheater airlift aircraft designed to transport troops and supplies. The administration requested $30.6 million for spare parts and logistics required for prior acquisitions. Current plans call for procuring additional C-130Js in FY 2002. The House authorization bill would provide the requested level of funding. But the Senate version would provide a total of $84.8 million, including an additional $24.2 million to help meet logistics support requirements and $30 million more to fully reconfigure an EC-130J procured in a prior year. The House appropriations bill would transfer $12.9 million—funding for interim contractor support—of the $30 million C-130J request to the O&M account, leaving a balance of $17.7 million. The Senate appropriations bill would provide an additional $24 million, for a total of $54.8 million, to help meet C-130J logistics support requirements and would provide an unrequested $87.8 million to acquire one EC-130J.

The administration also is requesting $12.3 million for logistics support for the seven KC-130J Marine Corps tankers procured over the last three years. The Senate authorization bill would add $129.8 million to acquire two unrequested KC-130J tanker aircraft, while the House version would add $252 million to acquire four KC-130Js. The House appropriations bill would add $564 million to acquire eight unrequested KC-130Js. The Senate version would add $64.9 million for one KC-130J.

UH-60 Blackhawk: The Army budget request includes $86.1 million to procure eight Blackhawk utility helicopters and $16.7 million in advance procurement funding. Under its current plan, the Service expects to procure another nine UH-60s in FY 2001. The Senate authorization bill would provide an additional $90 million to procure nine unrequested helicopters, while the House version would provide an extra $27 million to procure three unrequested helicopters for the Army National Guard.

The House and Senate appropriations bills would both add $121 million: $54 million to acquire six more UH-60s for the Army National Guard and $67 million to acquire five medical evacuation versions of the UH-60. In the case of the House bill, the latter would be for National Guard use only.

Apache Longbow: The Army budget request contains $729.5 million in procurement funding to modify 74 Apaches to the Longbow configuration and $35.7 million in advance procurement funding to modify 60 in FY 2001. Under the Longbow Apache upgrade program, part of the Apache fleet will be equipped with a mast-mounted fire control radar and an upgraded and enhanced airframe, and all existing Apaches will be upgraded to carry the radar-frequency fire-and-forget version of the Hellfire missile.

The Senate authorization bill would provide $810 million in procurement funding, $45 million more than requested to address a “processor obsolescence issue” associated with the second multi-year request for these helicopters. The House bill would provide $815 million in procurement funding, $45 million more than requested to replace obsolete sensor and avionics integrated circuits, and an extra $4.9 million in advance procurement funding to support the modification of 12 additional Apaches (72 in all) in FY 2001.

The House appropriations bill would add $45 million to the request, providing $810 million for the Apache. The Senate appropriations bill would cut $11.7 million from the request due to a deferral of air-to-air capabilities and reductions in funds based on the late award of contracts. The bill also would provide $45 million to address the processor obsolescence issue, but through a different program line for AH-64 modifications.

Comanche: The administration is requesting $427 million for continued development of the RAH-66 Comanche armed reconnaissance helicopter. The RAH-66 is intended to replace the existing fleet of OH-58 and AH-1 scout and attack helicopters. The Senate and House bills would both provide $483.1 million for the program, an increase of $56 million, to accelerate flight testing and the development of the mission electronics package.

The Senate appropriations bill would provide $483.1 million for the program, the same $56 million increase approved by the authorization bills. But the House appropriations bill would provide only the requested funding.

Shipbuilding
New Attack Submarine (SSN-774): The Navy is requesting $748.5 million in advance procurement funding for the long-lead nuclear components of the third (Virginia-class) New Attack Submarine (NSSN) to be procured in FY 2001, plus $357.2 million for R&D. In 1997 Congress and the administration agreed to a joint production plan under which at least the first four boats will be built jointly by Electric Boat of Groton, CT, and Newport News Shipbuilding (NNS) of Newport News, VA. The latest Navy plan calls for procuring one NSSN each in FY 1998, FY 1999, FY 2001, and FY 2002. Rather than having a production gap in FY 2003 before beginning continuous production in FY 2004 as envisioned in last year’s plan, the latest Navy plan calls for procuring one NSSN per year through FY 2005. The Service ultimately hopes to reach a production rate of at least two boats per year.

The Senate authorization bill would fully fund the procurement request, but would provide $367.2 million in R&D funding. This $10 million increase would be used to integrate 15 electronic subsystems required to perform various warfare missions. Likewise, the House version would increase R&D funding to $382.3 million to accelerate and enhance the NSSN “advanced submarine systems technology development and insertion program” and would provide a total of $753.5 million in advance procurement funding.

The House appropriations bill would fund the procurement request, but provide a $15 million increase in R&D, including development funding for nonpropulsion electric systems. The Senate appropriations bill would provide $748.5 million for procurement and $367.2 million for R&D, as the Senate authorization bill recommended.

LPD-17: The Navy purchased the first two ships of this new (San Antonio) class of amphibious transports in FY 1996 and FY 1999. It is requesting $1.508 billion in FY 2000 to procure the third and fourth ships. Under current plans the Navy will buy a total of 12 ships of this class. Both authorization bills would fully fund the request, as would both appropriations bills.

LHD-8: For FY 1999, Congress provided $45 million in unrequested advance procurement funding for the eighth Wasp-class amphibious assault ship. Rather than requesting the more than $1.5 billion required to fully fund LHD-8 in FY 2000, under the administration’s request, the Navy plans to wait until FY 2004 to request advance procurement funding for LHD-8 and until FY 2005 to request full funding for the ship.

The Senate authorization bill would provide $375 million in advance procurement funding in FY 2000. According to the Senate bill, funding advance procurement in FY 2000 instead of FY 2004 would provide substantial cost savings. By contrast, the House authorization bill would provide $15 million in unrequested funding to preserve the option of constructing the LHD-8 earlier than projected under current plans, assuming the option of buying additional ships of this class proves to be more cost effective than extending the service life of the Navy’s existing fleet of LHAs—an option still being considered by the Navy.

The Senate appropriations bill would provide $500 million in advance procurement funding for the LHD-8. The House appropriations bill, however, would provide no advance procurement funding.

CVN-77: The Navy request includes $751.1 million in advance procurement funding to cover the cost of buying the long-lead nuclear components for CVN-77, the last Nimitz-class carrier. The Navy plans to incorporate a variety of transitional technologies in the CVN-77, including propulsion plant improvements, that may also be incorporated into the next-generation aircraft carrier, the CVX. Navy plans call for requesting the remaining $3.95 billion required to complete CVN-77 in FY 2001. Both authorization bills and appropriations bills would fully fund the administration’s request.

DDG-51: The request includes $175 million for R&D and $2.682 billion in procurement funding to buy three DDG-51 Arleigh-Burke class guided missile destroyers in FY 2000. Under current plans, the Navy will buy three ships per year through FY 2003, although the Navy’s FY 1998-01 multi-year procurement contract contains an option for a fourth ship in FY 2001. The House and Senate authorization bills would fully fund the request.

The House appropriations bill would fund the procurement request, and would add $25 million in R&D funding to resolve interoperability issues and equipment relating to theater missile defense and cooperative engagement. The Senate appropriations bill would fully fund the request.

Aid to the Former Soviet Union
The administration's FY 2000 request contains $1 billion for cooperative threat reduction (CTR) activities in states of the former Soviet Union, including $475.5 million funded through DoD’s budget. The program provides aid to former Soviet republics engaged in destroying nuclear and chemical weapons, and support for various measures aimed at preventing the smuggling of these weapons to would-be proliferators. The House authorization bill would decrease the DoD budget for CTR programs to $444.1 million, reflecting its concerns about Russia's ability to meet its obligations under some of these programs. The Senate authorization bill would fully fund the request, but would require that the president certify that Russia is not modernizing in excess of legitimate defense requirements and is complying with all relevant arms control agreements before any FY 2000 funds may be obligated.

The House appropriations bill would provide $456.1 billion for DoD CTR programs and directed that $12 million of this funding be used for enhanced security measures in the biological weapons proliferation prevention program. The Senate appropriations bill would provide the requested level of funding for DoD CTR activities.

Department of Energy
The administration requested $12.361 billion for DoE defense activities, including $4.531 billion for weapons activities, $4.514 billion for environmental restoration and waste management, and $3.316 billion for a variety of other defense-related activities. The weapons activities portion consists of $2.286 billion for stockpile stewardship—ensuring the safety, reliability and performance of the U.S. nuclear weapons stockpile—and $1.998 billion for the stockpile management of nuclear warheads. Other DoE defense activities include $747 million requested for nonproliferation and national security programs and $665 million to support naval nuclear reactor programs.

The House authorization bill would provide $12.285 billion, $76 million less than requested for DoE defense activities. The bill would “increase” funding in the environmental remediation budget category by $1.138 billion, primarily by shifting the defense facilities closure project into that category. The bill would also provide $658 million for nonproliferation, a $109 million reduction, and $681 million for naval reactor programs, a $16 million increase. The House bill would not fund the $150 million requested for the formerly utilized sites remedial action program.

The Senate authorization bill would provide $12.270 billion for DoE defense activities, $90 million less than requested. Like the House bill it would shift funding for the defense facilities closure project into the environmental remediation category. The Senate version would provide $744.3 million for nonproliferation activities, a $3 million reduction, and $675.0 million for naval nuclear reactors, a $10 million increase. Like the House bill, the Senate bill would also cut the $150 million requested for the formerly utilized sites remedial action program.

The House energy and water appropriations bill would provide $11.371 billion, a decrease of $990 million from the request. This funding includes $1.054 million for the defense facilities closure project, $4 billion for weapons activities and $4.158 million for environmental remediation. The Senate energy and water appropriations bill would provide $12.612 billion, $252 million more than requested. The bill would provide $1.069 billion for the defense facilities closure project, a $15 million increase, $822 million for nonproliferation, a $75 million increase, and $677.6 million for naval reactors, a $12.6 million increase. See Appropriations Table See Authorization Table

For more information contact Elizabeth Heeter or Steven Kosiak at (202) 331-7990.

The Center for Strategic and Budgetary Assessments (CSBA) is an independent policy research institute established to promote innovative thinking about defense planning and investment strategies for the 21st century. CSBA research makes clear the inextricable link between defense strategies and budgets in fostering a more effective and efficient defense, and the need to transform the U.S. military in light of the emerging military revolution. The center is directed by Dr. Andrew F. Krepinevich.

© 1999 Center for Strategic and Budgetary Assessments. All Rights Reserved.