Statement of Administration Policy: S. 1087 - Department of Defense Appropriations Bill, FY 1996

(Senate Floor)
(Sponsors: Hatfield (R), Oregon; Stevens (R), Alaska)

This Statement of Administration Policy provides the Administration's views on S. 1087, the Department of Defense Appropriations Bill, FY 1996, as reported by the Senate Appropriations Committee.

The Administration is committed to balancing the Federal budget by FY 2005. The President's budget proposes to reduce FY 1996 discretionary spending by $5 billion in outlays below the FY 1995 enacted level. The Administration must evaluate each bill both in terms of funding levels provided and the share of total resources available for remaining priorities.

The Administration does not support the Committee's 602(b) allocations or the level of funding provided by the Committee bill, which is nearly $6.5 billion above the President's request. By providing increases for defense programs that are neither warranted nor justified, the bill would seriously undermine the President's goal of achieving a balanced budget while increasing investment programs essential to a higher standard of living for all Americans. As reflected in his budget, the President firmly believes that it is possible to maintain a strong defense without sacrificing critical investments. The Committee's allocation raises serious concerns about the overall priorities reflected in the appropriations process. For this reason and other concerns discussed below, the President's senior advisers would recommend that the President veto the bill if it were presented to him in its current form.

While the Administration strongly opposes the overall spending level in the bill, the Senate version is an improvement over the House bill in several important areas. In particular, we appreciate the funding provided for the Technology Reinvestment Project and for the Nunn-Lugar Cooperative Threat Reduction program.

Ballistic Missile Defense

The Committee bill would increase funding above the President's request for Ballistic Missile Defense (BMD) by $491 million — including an additional $151 million for theater missile defense and $300 million for development of a national missile defense (NMD) system — for a total funding level of over $3.4 billion. The Committee bill would also increase funding for the BMD-related space missile tracking system by $135 million. Such increases in funding are unnecessary and wasteful. The President's theater missile defense program is a balanced program that will provide a multi-level defense against tactical ballistic missiles in the near future. The President's program to develop technologies for a national missile defense system would provide the capability to deploy an NMD system rapidly, should a threat materialize in the future. However, at present, there is no need to accelerate the development of a national missile defense system.

The Committee bill would terminate valuable elements of our theater missile defense program, including systems designed to destroy ballistic missiles almost immediately after they are launched (Boost Phase Intercept) and systems designed to protect front-line troops from missiles and aircraft (MEADS). MEADS is not only a valuable defense system; it is also an important test of future trans-Atlantic defense cooperation. The Senate recognized this on August 2nd when it voted 98-1 to restore $35 million for MEADS to S. 1026. The Administration urges the Senate to restore funding for these programs to the requested levels.

Unwarranted Increases

The Committee bill would add $2.7 billion to the President's request for procurement of Navy ships, while funding incrementally the third Seawolf attack submarine, the SSN-23. The Administration opposes incremental funding because it exposes the government to cost increases and schedule delays if follow-on appropriations fall short of need. Rather than providing such large increases for ships that are not now needed, the Administration urges the Senate to fund fully the SSN-23 and to appropriate funds for Navy ships according to the President's request.

The Committee bill would provide $1.3 billion in unrequested procurement funding for tactical fighter and attack aircraft that is not currently required. The bill would also unnecessarily increase funding for National Guard and Reserve Equipment by $777 million. Of this increase, $400 million is for unspecified tactical aircraft that are of a low priority.

Technology Reinvestment Project

The Committee bill would provide only $238 million of the $500 million requested for the Technology Reinvestment Project (TRP), which is critical to harnessing leading-edge technology from the commercial sector for national defense. The Administration is encouraged that the Committee has provided $238 million to continue ongoing projects but strongly urges the Senate to appropriate the full $500 million requested for TRP.

Cooperative Threat Reduction

The Administration appreciates the Committee's support for the Cooperative Threat Reduction "Nunn-Lugar" program, especially compared to the funding level recommended by the House Appropriations Committee. The Administration, however, opposes the Committee's harmful deletion of all funding for the Defense Enterprise Fund. The Fund is one of the only programs designed to dismantle the capability, within the countries of the former Soviet Union, to make new weapons of mass destruction, thereby relieving pressure to make more weapons and export them to rogue states.

Additional Issues

The Administration supports the Committee's funding level for the B-2 program, which is an improvement over the House Committee-recommended level.

The Administration opposes the Committee's reductions in funding for the Defense environmental, energy management, and the Airborne Reconnaissance programs. The Committee bill would deny funding for the Department of Defense's Contributions for International Peacekeeping and Peace Enforcement Activities account, thereby undermining the Administration's efforts to meet United States' obligations to the U.N. responsibly and effectively.

The Committee's reductions in humanitarian assistance and disaster relief would severely restrict the ability of the Secretary of Defense and his regional commanders-in-chief (CINCs) to implement DoD's peacetime engagement strategy.

The Committee bill would direct the Secretary of Defense to issue loan guarantees in support of defense exports up to a contingent liability level of $15 billion. This provision is unnecessary, given the availability of existing financing authority and the substantial American share of the international military sales market.

The Administration objects to the bill's restrictions on the use of Defense funds to support the non-proliferation framework with North Korea. While no Such assistance is requested or anticipated from defense funds, this provision would unduly restrain the President's ability to respond to unforeseen contingencies on the Korean Peninsula.

Separation of Powers

Section 8074 of the Committee bill would require the approval of the Comptroller General, an agent of the Legislative Branch, before any reorganization of the regional headquarters and the basic camp structure of the Reserve Officer Training Corps (ROTC) could be implemented. Supreme Court decisions indicate that such a provision would violate the separation of powers doctrine of the Constitution.

Prompt Payment of Invoices

A provision of the Committee-reported bill would require the Department of Defense to pay invoices in 24 days when all other agencies of Government are required to pay invoices in 30 days under the Prompt Pay Act (P.L. 97-177). This provision would increase Defense outlays by $750 million in FY 1996.