Statement of Administration Policy: H.R. 4781 - Defense Appropriations Bill, 1989

(Senate)
(Sponsor: Stennis (D), Mississippi)

The Secretary of Defense and the Director of OMB will recommend a veto of this bill in its present form.

The budget authority in the Defense Appropriations Bill reported by the Senate Appropriations Committee is clearly inconsistent with the Bipartisan Budget Agreement (BBA) inasmuch as it includes $200 million for the Coast Guard and $600 million for the National Aeronautics and Space Administration. The Administration urges the Committee to fund these items at the President's request level within the domestic discretionary total of the BBA and to restore the $800 million to Defense programs.

The Administration objects to reductions in high priority programs and the addition of funds for lower priority programs required by the bill. In particular, the Administration strongly objects to the $804 million cut for Strategic Defense Initiative (SDI) research and development. The President has stated he will veto any Defense bill that would substantially impede our ability to execute the SDI program outlined to Congress, either because of funding cuts or restrictions.

The Administration is also opposed to the bill's burdensharing initiatives that would place restrictions on U.S. military forces stationed abroad. These provisions could undermine current negotiations and initiatives, being undertaken at Congressional direction, with our Allies.

Further troublesome provisions include:

—     Denial of funding or the use of prior year balances to cover foreign currency shortfalls of $1.5 billion, resulting in cuts in readiness-related operations funding;

—     Limitation on variable housing allowance funding, which will force cuts in housing allowances for military personnel;

—    Restrictions on AEGIS technology transfer, which will impede improvements in Pacific Ocean air defense; and

—    Addition of new deferral and rescission ' reporting requirements that are redundant with current law and may lead to confusion.