Federal Budget Update
11 May 2016 (by Greg Lankler – Mercury)
Legislative action on the FY17 National Defense Authorization Act (commonly referred to as the NDAA, and which sets Department of Defense policies and authorizes funding for DoD programs), and the FY17 Defense Appropriations Act (which provides the appropriations for these activities) has begun in both the House and Senate.
The House Armed Services Committee approved its version of the NDAA on April 28th with a bipartisan vote of 60 to 2. The full House will begin consideration of this legislation as early as next week. Some highlights of the legislation –
• Halts and begins to reverse the drawdown of military end strength, preserving the active duty Army at 480,000 (the President’s request proposed a reduction of 20,000) and adding 3,000 Marines and 4,000 Airmen in FY17.
• Fully funds a 2.1% military pay raise.
• Prohibits the Department of Defense from implementing another round of Base Realignment and Closure (BRAC).
• Provides funding above the President’s budget request to restore a Carrier Air Wing, and provides the following procurement quantity increases above the requested levels: 11 additional F-35s and 14 F-18s, three C-130Js, four C-40s, and two V-22 aircraft; and 36 UH-60 Blackhawks and five Apaches.
• Provides $592 million to address war reserve shortfalls in critical munitions.
• Increases Navy Ship and Aircraft depot maintenance and afloat readiness by $530 million and Air Force depot maintenance by $430 million, while also including $160 million for Navy Cruiser modernization and $67 million for Marine Corps logistics.
• Supports 90% of requirements for facilities sustainment and 88% of requirements for facilities restoration and modernization. This is an increase of 19% above the President’s budget in each category.
• Provides $59 billion for Overseas Contingency Operations (OCO). About $16 billion in the wartime spending account has been designated to address shortfalls identified in the President’s regular DoD (base) budget request, meaning that the OCO funds will only last until April 2017.
A complete summary of the legislation is available here – Chairman’s Mark Summary: H.R. 4909 NDAA for FY17
The Senate Armed Services Committee is considering its version of the NDAA this week. Consideration in the subcommittees began on the 10th and the Full Committee is expected to complete action on the bill by the end of the week. While details on the legislation are embargoed until consideration is completed, some highlights have already leaked –
• Bans a new round of base closures requested by the Pentagon.
• Includes a lower-than-projected pay raise of 1.6 percent, rather than 2.1 percent approved by the House.
The House Appropriations Defense Subcommittee will consider the FY17 Defense Appropriations Act on Wednesday evening. Specific funding levels for DoD programs will not be released until the Full Committee considers the bill next week, but following are some available highlights –
• Includes $517 billion in base budget funding—about $587 million less than the administration’s budget request—and $59 billion for Overseas Contingency Operations (OCO).
• As in the House Armed Services Committee (HASC) budget, about $16 billion in the wartime spending account has been designated to pay for base expenses, meaning that the OCO funds will only last until April 2017.
• Includes $3 billion above the request for end strength – denying the troop reductions proposed by the President, and adding 28,715 active forces and 25,000 selected reserve forces above the requested levels.
• Fully funds the authorized 2.1 percent pay raise for the military, instead of 1.6 percent as requested by the President.
• Includes: $21.6 billion to procure 15 Navy ships, including two DDG-51 guided missile destroyers and three Littoral Combat Ships; $8.3 billion for 74 F-35 aircraft; $1.35 billion for 16 F/A-18E/F Super Hornet aircraft; $1.2 billion for 72 UH-60 Blackhawk helicopters; $881 million for 52 remanufactured AH-64 helicopters and $374 million for 10 new aircraft; $689 million for 27 CH-47 Chinook helicopters; $1.8 billion for 11 P-8A Poseidon aircraft; $2.8 billion for 15 KC-46 tanker aircraft; $440 million for 123 Stryker Double V-Hull upgrades; and $332 million for the Israeli Cooperative Programs.
The Senate Defense Appropriations Subcommittee is expected to begin consideration of its version of the FY17 Defense Appropriations Act during the week of May 23rd. Details for this legislation will be available just prior to Memorial Day weekend.
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