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DLM Advisory – Senate Appropriations Releases FY18 Defense Appropriations Bill

United States Senate Committee on APPROPRIATIONS

FY2018 Defense Appropriations Bill Released

WASHINGTON, D.C. – The Senate Committee on Appropriations today released the FY2018 chairman’s recommendation and explanatory statement for the Department of Defense.

The recommendation provides $581.3 billion in base Department of Defense funding, $15.4 billion above the President’s budget request, and $64.9 billion in Overseas Contingency Operations (OCO) funding, roughly equal to the President’s budget request. In addition to these amounts, the Chairman’s recommendation includes $4.5 billion in emergency funding, as requested by the President, for Missile Defeat and Defense Enhancements.

“This proposal recommends funding for programs necessary to protect U.S. national security interests. However, we still require a budget agreement to establish a top-line funding level for national defense spending,” said Appropriations Committee Chairman Thad Cochran (R-Miss.), who also chairs the Subcommittee on Defense.

“I am optimistic we will be able to write a final bill that supports a strong U.S. force structure and makes needed investments in readiness, shipbuilding programs, aircraft procurement, and missile defense,” he said.

Text of Draft FY2018 Defense Appropriations Bill:
Explanatory statement:

Bill Highlights:

U.S. Department of Defense – The FY2018 chairman’s recommendation provides $581.3 billion in base Department of Defense funding, $15.4 billion above the President’s budget request, and $64.9 billion in Overseas Contingency Operations (OCO) funding, roughly equal to the President’s budget request. In addition to these amounts, the chairman’s recommendation includes another $4.5 billion in emergency funding, as requested by the President, for Missile Defeat and Defense Enhancements.

Military Personnel and Pay – Fully funds an active duty end strength of 1,322,500 and a reserve component end strength of 816,900, an increase of 9,500, and funds a 2.4 percent pay raise for military personnel as authorized by the 2018 National Defense Authorization Act. The Chairman’s recommendation adds $674 million to pay for increased end strength and $206 million to address the increase in military pay.

Readiness – $239.8 billion in base and OCO funding for operation and maintenance accounts to improve full spectrum warfighter readiness. The recommended funding level makes significant investments in training, maintenance, and modernization to restore near-term warfighting readiness while setting the conditions for future, sustained readiness. Within this amount, $2.5 billion is provided above the request to invest in facility sustainment, restoration, and modernization programs. The bill also includes an additional $3.9 billion available for transfer to the military services to improve military readiness, including increased training, depot maintenance, and base operations support.

Surface Force Incidents – $673 million is included to repair damage to and restore operational readiness of two Navy destroyers, the USS John S. McCain and the USS Fitzgerald. The bill also provides an additional $23 million to begin implementing the recommendations of the Comprehensive Review of Recent Surface Force Incidents.

DOD Unfunded Requirements – In addition to addressing requirements of the National Defense Authorization Act and other Committee initiatives, the chairman’s recommendation includes $17.7 billion to address items included on unfunded requirements lists submitted to Congress by the military services and combatant commanders.

Shipbuilding – $21.8 billion for Navy shipbuilding programs, $1.4 billion above the President’s request. In total, the bill funds the construction of 10 new ships: one aircraft carrier, two Virginia class submarines, two DDG-51 destroyers, two Littoral Combat Ships, one LXR/LPD amphibious warship, one Expeditionary Fast Transport ship, and one T-AGS oceanographic survey ship. The bill also fully funds advance procurement activities for Ohio class and Virginia class submarines. Other critical shipbuilding investments include an additional $175 million for the expansion of the submarine industrial base and $150 million to accelerate procurement of a Heavy Polar Icebreaker.

Missile Defense – $9.3 billion for missile defense, $1.4 billion above the President’s request. The recommendation also includes an increase of $1.1 billion for U.S. missile defense programs to accelerate missile defense capacity and capabilities in light of escalating threats from North Korea. Additionally, $706 million is provided for Israeli missile defense programs, an increase of $558 million, as requested by the Government of Israel.

Aircraft Procurement – The bill addresses several unfunded requirements across the services through the procurement of multiple air frames, including the following funding not requested in the President’s budget:
• $1.0 billion for four F-35 carrier variant and four F-35 vertical take-off Joint Strike Fighters (Navy & Marine Corps)
• $800 million for eight MC-130J aircraft (Special Operations Command)
• $739 million for 10 F-18 Super Hornet aircraft (Navy)
• $495 million for six V-22 helicopters (Marine Corps & Navy)
• $400 million for eight MH-60R helicopters (Navy)
• $343 million for four KC-130J tanker aircraft (Marine Corps)
• $309 million for nine AH-64E Apache helicopters (Army)
• $250 million for two CH-53K King Stallion helicopters (Marine Corps)
• $247 million for four CH-47G Chinook helicopters (Special Operations Command)
• $108 million for eight UH-60 Blackhawk helicopters (Army National Guard)
• $100 million for one HC-130J aircraft (Air Force)
• $90 million for 11 UH-72 Lakota helicopters (Army)
• $35 million for Compass Call modifications (Air Force)

The bill also provides an additional $120 million for Air Force F-35 advance procurement to increase planned procurements in FY2019, and an additional $750 million for Air Force, Navy, and Marine Corps aviation spares and repair parts to address maintenance and readiness issues.

Basic Research Investments – $2.3 billion, $30 million above the President’s request, for basic (non-medical) research for the Army, Navy, Air Force, and Department of Defense.

Defense Health – $34.5 billion for the Defense Health Program, which provides medical services for military personnel and their families, continues advancements in medical research, and implements the next generation of electronic health records. This amount includes an additional $948 million for defense medical research efforts, including $300 million for the competitively awarded peer-reviewed medical research program and $240 million to advance Defense Department medical research priorities.

Munitions – $15.1 billion, $731 million above the President’s request, for the procurement of missiles and ammunition. Additional funds address unfunded requirements identified by the military services, industrial base capacity support, and munitions replenishment.

Space Launch – $398 million, $100 million above the budget request, for space launch vehicle and engine development activities.

National Guard and Reserve Equipment – $1.5 billion for the National Guard and Reserve Equipment Account to modernize our reserve forces and ensure full interoperability with the active duty force. The bill also includes $120 million for Army Guard and Reserve HMMWV Ambulances.
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