Statement of Administration Policy: H.R. 4650 - Department of Defense Appropriations Bill, FY 1995

(House Rules)
(Sponsors: Obey (D), Wisconsin; Murtha (D), Pennsylvania)

This Statement of Administration Policy provides the Administration's views on H.R. 4650, the Department of Defense Appropriations Bill, FY 1995, as reported by the House Appropriations Committee. The Administration supports House passage of H.R. 4650 and will work with Congress to address the concerns described below.

The Administration appreciates the support the Committee has provided for the President's requests, particularly the support provided for the President's investment initiatives — the Technology Reinvestment Project and the Office of Economic Adjustment. The Committee bill provides funds for many other key- national security programs, including: (1) readiness (including funding for the Defense Business Operations Fund); (2) the CVN-76 and other shipbuilding programs; (3) the B-2 Bomber, F/A-18 C/D, F-22, V-22, and E-SB Joint STARS aircraft, and RAH-66 Comanche helicopter; and (4) defense reinvestment.

Reductions to the President's Request

However, the Committee bill would provide funding levels in some programs and activities that are inconsistent with the President's request. In several instances, the bill would reduce funding below the requested level. For example, the bill would:

• Appropriate none of the $300 million requested for payments to the United Nations for peacekeeping activities;
  
  
• Provide none of, the $400 million requested for Cooperative Threat Reduction (Nunn-Lugar) programs, which would severely limit our ability to achieve critical foreign policy objectives with the states of the Former Soviet Union;
  
  
• Cut C-17 funding by $582 million, including $318 million related to the settlement agreement with the contractor. Failure to support the settlement agreement would drive the government and the contractor into programmatic gridlock over claims, delaying needed airlift modernization;
  
  
• Make severe reductions to audit and contract management programs that are essential to ensuring that the Department gets the best value from its contracts; and
  
  
• Reduce by $900 million funding for university research, which provides for research that is essential to maintaining our technological edge.

Unrequested Programs

At the same time that it has made these reductions to the President's request, the Committee has provided over $2 billion in unrequested funding. The Committee bill would:

• Appropriate more than $1.9 billion for unrequested acquisition programs, including: (1) Army ammunition; (2) National Guard and Reserve equipment; (3) Amy and Navy helicopters (AHIP, AH-1 and SH-60); (4) Army tactical missiles (Javelin, Hellfire, MLRS, and Stinger); and (5) incremental funding for the LHD-7 amphibious assault ship;
  
  
• Provide unrequested funds for research and development programs, including $311 million for medical programs, $180 million for early warning systems, $50 million for the single-stage-to-orbit program, and $70 million for unmanned airborne vehicles; and
  
  
• Add $25 million for title XI shipbuilding and facilities loan guarantees, more appropriately funded through the Department of Transportation.

The Administration urges the House to redirect funding from unrequested programs to programs of higher priority, consistent with the President's request.

Restrictive Language

The Committee bill contains some objectionable, unwarranted language provisions. The Administration urges the House to eliminate provisions that would:

• Reduce competition in the procurement of several defense articles and services through restrictive procurement provisions;
  
  
• Direct obligation of prior-year funds for unneeded EA- 6B improvements and restrict the obligation of funds for DDG-51 destroyer procurement;
  
  
• Direct DOD to initiate a new launch vehicle, require that certain satellites be launched from the space shuttle, and prohibit procurement and research and development of Titan IV boosters;
  
  
• Require that $50 million be used for a loan guarantee program that is to be funded out of the Defense Conversion and Reinvestment Funds;
  
  
• Require the Department of Defense to cut by 50 percent the number of field operating agencies or field offices (Section 8108) . A reduction of this magnitude would severely disrupt Department of Defense operations.

Military and Civilian Pay Raises

According to the Committee report, the bill would provide funds for a military pay raise of 2.6 percent and civilian pay raises totaling 3.4 percent. The President's budget includes sufficient funds to provide a pay raise averaging 1.6 percent for both military personnel and Federal civilian employees. It is the Administration's preference to provide this 1.6 percent pay raise. However, if the 2.6 percent pay raise for military personnel currently provided for in the DOD authorization bill is approved, then the Administration does not object to a pay raise averaging 2.6 percent for civilian personnel, as contained in the House-passed Treasury/Postal Service appropriations bill.