Statement of Administration Policy: H.R. 2401 - National Defense Authorization Act for Fiscal Year 1994

(House)
(Dellums (D) CA)

The Administration supports H.R. 2401, as reported by the Committee on Armed Services. The bill would support many of the Administration's key defense programs, including: (1) readiness; (2) selected acquisition programs such as the D-5 missile, B-2 bomber, F-22 Advanced Tactical Fighter, and certain navy ships; and (3) the Administration's policy regarding homosexuals in the military.

H.R. 2401, however, contains several provisions that either are not consistent with the President's request or would impose restrictions upon funding for major weapon systems. These provisions would:

— Reduce funding for intelligence programs. The Administration would strongly oppose any amendment that would further cut funding for intelligence activities.

— Increase funding for such programs as: (1) the AH-64 helicopter, (2) modifications to the C-135, (3) TOW missiles, (4) improvements for the Bradley Fighting Vehicle, (5) certain military construction projects, and (6) Guard and Reserve equipment.

— Impose burdensome obligation restrictions on the Seawolf submarine, Centurion attack submarine, D-5 missile, and B-2 aircraft programs. In particular, the Administration objects to the restrictions placed on incorporating advanced conventional capability on bombers. The Administration urges the House to eliminate these restrictions.

— Terminate, in April 1994, the Defense Business Operations Fund (DBOF) and impose an alternative that is unworkable and could ultimately threaten force readiness. In addition, H.R. 2401 would reduce Operations and Maintenance funding by $779 million, to be replaced with cash transfers from the DBOF. The Administration acknowledges the need to correct deficiencies with the DBOF and is preparing to implement the necessary reforms. The Administration strongly urges the House to defer action until Secretary Aspin can initiate his reforms.

— Authorize a 2.2 percent pay raise for military personnel beginning January 1, 1994. The President's budget proposed that there be no Federal employee pay raises in FY 1994.

— Transfer $200 million to the Maritime Administration for certain loans and loan guarantees. The Administration is currently evaluating several proposals for reforming the U.S. maritime industry. The Administration believes that it would be inappropriate to enact any legislation concerning maritime revitalization until this evaluation is completed.

In addition, the Administration strongly opposes the bill's provisions that would prohibit the Department of Defense from contracting-out to meet downsizing, base closure, and efficiency requirements. Moreover, the Administration opposes any amendment that would preclude any option for plutonium disposition at this time.

The Administration is pleased that the committee recognizes the importance of establishing a Stockpile Stewardship program to maintain the safety and reliability of the nuclear stockpile in the absence of underground testing. The minimum funding needed, however, to maintain both Stockpile Stewardship and testing readiness is $375 million, rather than the $322 million as provided in H.R. 2401. Additional information on funding requirements for these programs, in response to the President's decision to extend the moratorium on underground testing, will be provided to Congress shortly.

During further congressional action on this legislation, the Administration will work with the House towards resolution of these and other issues identified as the Administration continues its review of H.R. 2401.

Pay-As-You-Go Scoring

OMB is reviewing H.R. 2401 to determine if it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990.