Statement of Administration Policy: H.R. 2461 - National Defense Authorization Act, Fiscal Year 1990

(House Rules)
(Aspin (D) Wisconsin)

The Administration has no objection to House passage of H.R. 2461 because it conforms with the Bipartisan Budget Agreement and includes many of the crucial items requested by the Administration. These include the 3.6 percent military pay raise, ICBM modernization, the follow-on to Lance, anti-Satellite programs, base closures, and operating and training levels. The Administration, however, recommends amendments to reallocate certain program authorization levels to make them consistent with the Administration's request. These include reinstatement of requested authorization levels for critical programs and elimination of unrequested programs:

• Strategic Defense Initiative. The proposed reduction of $1 billion from the $4.6 billion requested would cause cancellation or delay of experiments crucial to proving the feasibility of SDI technologies; delay threat assessment activities for nuclear directed energy weapon technologies; and disrupt the orderly development of the strategic defense system.
  
  
• B-2 Bomber. The R&D and procurement funding reductions totaling $.8 billion would delay flight test and production programs, increase total program costs, and reduce the FY 1990 program by one aircraft for this essential element of our strategic deterrent.
  
  
• Multiyear Procurement. Denial of the requested multiyear procurement of the F/A-18 and E-2C aircraft and Maverick missile and the requirement to enter into a four-year multiyear procurement of the AH-64 helicopter (scheduled to be terminated after 1991) would increase significantly outyear costs.
  
  
• Unrequested Authorizations. The addition of $1.9 billion in unrequested authorizations for the V-22 Osprey, F-14D aircraft, and National Guard and Reserve equipment would increase long-term defense costs and adversely affect other programs, including active force readiness.
  
  
• European Construction. The reduction in authorization would delay the new airbase for the 401st Tactical Fighter Wing at Crotone, Italy, and other critical European construction. The cap on total DOD expenditures to relocate the fighter wing would also undermine our negotiations with NATO allies.
  
  
• Special Isotope Separation Project. Restoration of $15 million is required to maintain design schedules and permit preliminary site preparation activities.

H.R. 2461 also contains objectionable policy changes that the Administration will seek to delete or amend, including:

• lowering the statutory ceiling on the number of troops that can be stationed in Europe after 1991 from 326,414 to 311,627, which would weaken the U.S. bargaining position in European force reduction negotiations;
  
  
• prohibiting severance pay for employees of certain bases to be closed in Europe, which could result in the United States reneging on commitments made in international agreements;
  
  
• authorizing the use of CHAMPUS funds to reimburse VA facilities for care rendered to DOD dependents under VA/DOD sharing arrangements. This authority raises numerous unresolved issues that significantly impact the VA and DOD medical care systems;
  
  
• requiring the Secretary of Defense to make payments to school districts on behalf of DOD dependents and to study whether DOD should make all such impact aid payments to schools. These requirements are unnecessary and inappropriate because funding for such activities is already provided through the Department of Education;
  
  
• barring any tests of Mid-Infrared Advanced Chemical Laser (MIRACL) against objects in space unless authorized by law, which would place the United States at a significant disadvantage with the Soviets;
  
  
• making the "Nichols Amendment" permanent which would overly restrict the activities subject to cost-comparisons under OMB Circular A-76. The Administration is opposed to any legislation which hinders the right of Department heads to manage their departments in the most cost effective manner and achieve savings for the taxpayer;
  
  
• authorizing the Secretaries of Army and Navy to dispose of several parcels of Federal real property contrary to the Federal Property and Administrative Services Act of 1949; and
  
  
• increasing Aviation Career Incentive Pay (ACIP) by up to 63 percent, which is an expensive and inefficient approach to pilot retention problems. The Administration supports a 25 percent increase, which will restore the lost purchasing power of ACIP.