Statement of Administration Policy: H.R. 1530 - National Defense Authorization Act for Fiscal Year 1996

(House)
(Reps. Spence (R) SC and Dellums (D) CA)

The Administration appreciates the House National Security Committee's prompt consideration of the Administration's national defense authorization legislative proposal. However, H.R. 1530, as reported by the Committee, raises serious constitutional, national security, budget, personnel, and management concerns. The Administration, therefore, strongly opposes H.R. 1530 unless amended to address these concerns as set forth below.

Infringements on the President's Authorities

H.R. 1530 raises serious concerns about the Administration's ability to carry out foreign relations to protect vital U.S. interests. In particular, the bill imposes restrictions on the ability of the President to conduct contingency operations that are essential to the national interest. The restrictions on funding available to the Administration to commence a contingency operation and the necessity to submit supplemental requests to continue an operation are unwarranted restrictions on the authority of the President.

Moreover, the bill limits the assignment of military forces under United Nations (UN) command and control and, in so doing, infringes on the constitutional authority of the President. The Administration does not know of any basis among Congress' enumerated constitutional powers for such limitations. Further, the bill would adversely affect U.S. relations with the U.N. by precluding any Department of Defense (DOD) funding for U.N. peacekeeping activities.

Additionally, the bill raises major international legal issues, as well as constitutional issues, regarding the President's authority over the conduct of foreign affairs. Specifically, by prohibiting the obligation and expenditure of funds to implement Article VI (a) of the ABM Treaty according to any interpretation except the interpretation specified in the bill, section 235(b) impairs the President's responsibility for the conduct of foreign relations consistent with U.S. treaty obligations. Section 233(b) of the bill could also be read as calling for the deployment of a national missile defense that does not comply with the ABM Treaty, thereby jeopardizing strategic stability.

Nunn-Lugar Program Reductions

The bill's provisions to reduce the funds and alter the underlying legislation with respect to the Nunn-Lugar program seriously undermine that program — our most cost-effective way of reducing the threat of weapons of mass destruction in the former Soviet Union, and preventing their proliferation.

Unwarranted Programs

H.R. 1530 exceeds the President's Budget request by approximately $9.4 billion. In light of serious budget constraints, this spending increase is neither warranted nor justified. The bulk of this increase is earmarked for procurement of specific weapons systems that are neither needed, nor a high priority. In particular, this includes the unjustified resumption of B-2 bomber production and the $600 million increase for ballistic missile defense programs. In addition, the bill unnecessarily authorizes $770 million for equipment for Reserve forces, and the bill continues production of older technology programs, such as the F-15 and F-16 aircraft. Further, the diversion of funds requested for the purchase and refit of roll-on/roll-off ships for the ready reserve force to other uses will under-cut critical improvements in the strategic mobility program.

Program Reductions

H.R. 1530 terminates the Technology Reinvestment Project, a critical program in harnessing leading-edge technology from the commercial sector for national defense. In addition, the bill puts at risk the submarine industrial base by rejecting the Administration's $1.5 billion request for the third Seawolf attack submarine. Moreover, the bill unwisely cuts the Defense Environmental Restoration Account (DERA) by $200 million, and contains language that potentially jeopardizes the U.S. legal defense in environmental litigation.

Personnel-Related Provisions

The bill requires military personnel who have HIV to be discharged. This decision should be based on the member's ability to perform his or her duties, not on a physical status. In addition, the bill would not permit female service members or dependents from obtaining abortions in U.S. military hospitals abroad, creating an inequality in the treatment of military personnel. Also pertinent to personnel — the Administration encourages the House to seek mandatory rather than discretionary funding for the acceleration of the military retirees' COLA.

Micromanagement of the Department of Defense

H.R. 1530, through a host of other onerous provisions, undercuts the Secretary's managerial authority and seeks to micromanage DOD operations. Specifically, the bill: (1) prohibits, in FY 1996 and beyond, reductions in military end-strength below the FY 1996 requested levels; (2) exempts military technicians from planned civilian personnel reductions; (3) requires the Department to convert, during FY 1996, 10,000 military positions to Federal civilian employees; (4) restricts the authority of the President land Secretary of Defense to reduce civilian full-time equivalent employment unless the reduction is due to decreased funding; (5) prohibits the transfer of Defense Business Operations Fund cash management to the services to align properly cost and cash management responsibility; and (6) prohibits the practice of advance billing in the Defense Business Operations Fund.

Other Objectionable Provisions

H.R. 1530 requires the Secretary of Defense to establish a program to issue loan guarantees insuring against losses arising from the financing of defense exports to certain countries. The Administration opposes this program because it is unnecessary, given the availability of existing authority for transactions of this type and the substantial American presence in international markets for military equipment.

H.R. 1530 requires the Secretary of Energy to pursue a multipurpose light water reactor to produce tritium, dispose of excess plutonium, and generate electricity. This prejudges the outcome of an ongoing technology selection process. In addition, the bill reduces by $742 million the authorization for nuclear weapons facilities cleanup, undermining progress in reducing extraordinarily high risks and increasing long-term costs. The bill also reduces by 90 percent the authorization for the Department of Energy's technology transfer activities, halting industrial collaborations that benefit the Department's defense mission and the Nation's economy. Finally, the bill authorizes 28 percent less than requested for nonproliferation research and development.

The Administration, as it continues its review of the bill, may identify other issues, and will work with the Congress to address these concerns.

Pay-As-You-Go Scoring

H.R. 15 would affect direct spending and receipts; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990. OMB's preliminary scoring estimates of this bill are presented in the table below.

Pay-As-You-Go Estimates
($ millions)