Statement of Administration Policy: H.R. 3610 - Department of Defense Appropriations Bill, FY 1997

(House Rules)
(Sponsors: Livingston (R), Louisiana; Young (R), Florida)

This Statement of Administrative Policy provides the Administration's views on H.R. 3610, the Department of Defense Appropriations Bill, FY 1997, as reported by the House Appropriations Committee. The President's senior advisers would recommend that he veto a Defense appropriations bill that does not address the concerns discussed below.

Even though the Committee has reduced the Subcommittee funding level, the Administration does not support the $11.2 billion increase over the President's request reflected in the Committee bill. With the Nation facing serious budget constraints, the Committee's recommended increase for this bill is not affordable. The President's budget better supports defense requirements by fully funding current readiness and by projecting significant increases in funding for modernization for the turn of the century. This is when defense technologies now in development will be ready for production. The Administration firmly believes that America can maintain a strong defense without sacrificing vital domestic programs.

About $5.7 billion of the increase in funding above the President's request is for procurement. To reach this level of increase over the request, the Committee first cut the President's request for procurement by about $1.5 billion, and then added $7.2 billion for unrequested items. About $3.2 billion of the $7.2 billion increase is for weapons and systems that are not in the long-range modernization plans of the Department of Defense.

Similarly, the Committee cut the President's request for research and development (R&D) programs by about $800 million, and then added about $3.7 billion to reach a level $2.9 billion above the President's request. Such proposed increases for R&D programs are not needed. Of this $3.7 billion, $1.2 billion is allocated for programs not in the Department of Defense's long-range plans. Other programs in the long-range plans received unnecessary increases. An additional $350 million was added to accelerate development of defenses against strategic missiles from an uncertain threat. Also, the Administration believes that the Committee's four-year acceleration of the initial launch of the space-based missile warning system, "SBIRS," is unwarranted. An additional $129 million for SBIRS carries with it substantial technical risk, has an estimated out-year cost of $1.9 billion, and comes at the expense of higher priorities.

The Committee would provide none of the $250 million requested for the Dual Use Applications Program (DUAP). The DUAP supports development of technologies for both commercial and defense production that will reduce the costs of future defense systems. Appropriations at the requested level are needed to enhance the affordability of defense systems and increase the vitality of the defense industrial base.

The Administration urges the House to restore the reductions made by the Committee to needed programs and to reduce the number of unrequested add-ons.

The Committee bill could hinder the President's ability to carry out foreign policy. The bill would mandate that the President consult with Congress at least 15 days prior to the transfer-of defense articles and services for peacekeeping and humanitarian operations overseas. This would limit the President's flexibility to respond immediately to crisis events- In addition, the bill would restrict the President's flexibility to conduct foreign relations regarding North Korea.

Other Concerns

The Administration objects to the Committee's:

•   Deletion of one DDG-51 Aegis Destroyer;

•   Reduction in funding for depot maintenance carryover and spare parts inventories, civilian personnel, military transportation, recovery of revolving fund losses, and the Civil Military program;

•   Reductions of $25 million to the Cooperative Threat Reduction (Nunn-Lugar) Program; $20 million to the Overseas Humanitarian, Disaster, and Civic Aid Program; $59.9 million for Advanced Concept Technology Demonstrations; and $25 million for increased utilization of the Reserve components;

•   Failure to fund the highly valuable Technical Studies, Support, and Analysis Program, or to support devolvement of financial responsibility for environmental restoration to the Services;

•   Failure to provide for the retrofit of two P-3 aircraft to airborne radar aircraft for transfer to the Customs Services, as the Administration requested;

•   Limitation of funding for the White House Communications Agency for telecommunications support to. the President, Vice President, and other officials specified by the President; and

•   Cap on allowable costs for executive compensation at $250,000 for all defense contracts funded with FY 1997 appropriations. The Administration would like to work in a bipartisan maimer with the Congress to develop a more rational, comprehensive long-term reform in this area, outside of the annual appropriations process.