    [Budget of the United States Government]
    [IV. Preparing For the 21st Century]
    [9. Supporting the World’s Strongest Military Force]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 149]]

               9.  SUPPORTING THE WORLD'S STRONGEST MILITARY FORCE

      ----------------------------------------------------------------------

       The more we ask of our Armed Forces, the greater our obligation to give them the support, training, and
    equipment they need. We have a responsibility to give them the tools to take on new missions while maintaining
    their readiness to defend our country and defeat any adversary; to make sure they can deploy away from home,
    knowing their families have the quality of life they deserve; to attract talented young Americans to serve; and,
    to make certain their service is not only rewarding, but well rewarded from recruitment to retirement.

                                          President Clinton
                                          October 1999

      ----------------------------------------------------------------------
      At the dawn of this new century, our Nation is in many ways safer and
    more secure than ever before. The Cold War is over and the once-constant
    threat of global warfare continues to recede. In this time of relative
    stability, the United States is strengthening its partnerships with
    countries that only a decade ago were our sworn adversaries. Yet,
    despite these remarkable events, the United States still faces enemies
    who would strike against this Nation using traditional military force or
    with emerging and increasingly complex weapons of terrorism.
       The U.S. military remains the foundation of the Nation's security and
    defense strategy. As the global leader of the international community,
    the United States must keep its military ready and modernize its forces
    to maintain technological advantage. As a Nation, we must provide our
    military with the necessary support to carry out each mission.
       In the past year, President Clinton took significant steps to ensure
    that our Nation's military is fully prepared to meet the challenges of
    this new century. He initiated a long-term, sustained increase in
    defense spending by providing additional resources of $112 billion over
    six years to protect our high level of military readiness and to procure
    modern and effective weapons systems.
       Recently, the U.S. military demonstrated its superior readiness and
    capability by successfully completing operation Allied Force/Noble Anvil
    in Kosovo. Our triumph in Kosovo put an end to the vicious ethnic
    cleansing in Kosovo, forced the withdrawal of all Serbian military,
    paramilitary, and police forces from the province, permitted the safe
    and free return of all refugees, and established an international
    presence to secure freedom and peace within the province.
       The 2001 Budget will ensure that military capability remains first
    rate for years to come. It also provides significant resources to ensure
    that we keep pace with the latest advances to protect against and
    prepare for new and emerging threats, including the potential use of
    chemical and biological weapons, other weapons of mass destruction, and
    efforts to weaken the critical infrastructure of the Nation.

    [[Page 150]]

      ----------------------------------------------------------------------

                                             The Quadrennial Defense Review

       The military's responsibilities have become more complex and diverse in the post-Cold War era. In 1997, the
    Department of Defense's Quadrennial Defense Review (QDR) embraced a defense strategy designed to respond to the
    following threats:

     regional dangers, such as coercion and large-scale cross border aggression, as well as military
     challenges created by failed states, as in the case of Yugoslavia;

     the proliferation of advanced conventional weapons and nuclear, biological, and chemical weapons
     technologies and their delivery systems, which can be used by the military forces of other nations or by
     terrorists;

     transnational dangers, such as the spread of illegal drugs, organized crime, terrorism, uncontrolled
     refugee migration, and threats to the environment; and,

     direct attacks on the U.S. homeland from weapons of mass destruction, including nuclear, chemical, and
     biological weapons, terrorism, and information warfare.

       The Department's next QDR in 2001 is an opportunity to develop long-term national security planning in this
    more complex and diverse threat environment. Planners must think broadly about how to maintain and advance our
    capabilities and take full advantage of rapid technological advances. The next QDR offers a vehicle for updating
    doctrine, force structure, and weapons systems by investing in quantum-leap capabilities and technologies.

      ----------------------------------------------------------------------
       This budget sustains the current high levels of military readiness;
    increases procurement of modern, effective weapons systems; and,
    provides pay, benefits, and quality of life improvements for our
    servicemen and women, including a major initiative to reduce
    servicemembers out-of-pocket housing costs. In doing so, it also fully
    supports the goals set forth in the Department of Defense's (DOD) most
    recent Quadrennial Defense Review (see Table 9-1). In particular, it
    provides significant resources for four critical areas:
      enhancing the military's ability to respond to crises with
              robust funding for training, spare parts, and weapons
              maintenance activities critical to unit readiness;
       building for the future by acquiring advanced weapons such as
              the F-22 fighter aircraft;
       investing in research, equipment and training to prepare the
              military to deter and respond to emerging threats such as
              weapons of mass destruction; and,
       supporting military personnel and their families by enhancing
              their quality of life, thereby strengthening recruitment and
              retention.
       As the Nation's Armed Forces prepare to meet the many challenges of
    tomorrow, it is equally vital to ensure that resources enable our
    military forces to meet the missions of today. For this reason, the
    President has determined that additional resources are necessary to
    cover the costs of contingency operations in Bosnia, Kosovo, and
    Southwest Asia. In addition, the Administration is proposing additional
    resources to mitigate the impact of higher fuel costs.
      ----------------------------------------------------------------------

                        Table 9-1.  Military Force Trends
    ------------------------------------------------------------------------
                                        1990          2001       QDR Target
    ------------------------------------------------------------------------
    Army:
      Divisions (active/National          18/10     10 \1\/ 8     10 \1\/ 8
       Guard).....................                        \2\           \2\

    Air Force:
       Fighter wings (active/             24/12        12+/7+         12+/8
       reserve)...................

    Navy:
       Aircraft carriers (active/          15/1      12/0 \3\          11/1
       reserve)...................
       Air wings (active/reserve).         13/2          10/1          10/1
       Total battle force ships             546           316           306
       \4\........................

    Marine Corps:
       Divisions (active/reserve).          3/1           3/1           3/1
       Wings (active/reserve).....          3/1           3/1           3/1

    Strategic nuclear forces:
       Intercontinental ballistic   1,000/2,450     550/2,000   500/500 \5\
       missiles/warheads..........
       Ballistic missile                     31   Not over 18        14 \5\
       submarines.................
       Sea-launched ballistic         568/4,864     432/3,456   336/not over
       missiles/warheads..........                                1,750 \5\
       Heavy bombers..............          324        96 \6\    92 \6\, \7\

    Military personnel:
       Active.....................    2,069,000     1,381,600     1,367,600
       Selected reserve...........   1,128,000 \      865,700       837,200
                                             8\

    ------------------------------------------------------------------------
    \1\ Plus two armored cavalry regiments.

    \2\ Plus 18 separate brigades (15 of which are at enhanced readiness
      levels).

    \3\ The JFK was redesignated as an active duty carrier to meet forward
      presence commitments and to stabilize rotation plans to meet active
      duty OPTEMPO and PERSTEMPO requirements.

    \4\ Includes active and reserve ships of the following types: aircraft
      carriers, surface combatants, submarines, amphibious warfare ships,
      mine warfare ships, combat logistics force, and other support ships.

    \5\ Upon entry-into-force of START II.

    \6\ Does not include 95 B-1 bombers dedicated to conventional missions.

    \7\ Does not include five additional attrition reserve B-52s added by
      the Air Force in 1999.

    \8\ Does not include 25,652 Selected Reserve personnel called to active
      duty under Title 10 U.S.C. Section 6736 for Operation Desert Shield/
      Storm.

      ----------------------------------------------------------------------

    Providing the Necessary Funding

       The Administration has carefully calibrated the defense budget to
    respond to evolving military needs. In fact, since 1993, the President
    has consistently increased the defense budget to meet these needs. Last
    year's defense budget request included an increase of $112 billion for
    the 2000-2005 period to enhance these capabilities.
       For DOD this year, the budget proposes discretionary funding of
    $292.2 billion in budget authority and $278.6 billion in outlays for
    2001. This represents an increase of $11.3 billion over the proposed
    2000 level (see Table 9-2), and $4.8 billion over the 2001 level assumed
    in the 2000 Budget. During the 2001-2005 period, funding for DOD will
    total $1,516.6 billion, an increase

    [[Page 151]]

    of $11.8 billion above the levels assumed for these years in the 2000
    Budget. These additional resources allow DOD to meet its critical
    readiness, personnel, and modernization needs. The budget also proposes
    emergency supplemental appropriations totaling $2.3 billion to cover
    2000 Kosovo operations, purchase a support aircraft for the Foreign
    Emergency Support Team, fund DOD's portion of increased assistance to
    Colombia, support U.S. operations in East Timor, and repair buildings
    damaged by Hurricane Floyd.
      ----------------------------------------------------------------------

                                    Table 9-2.  Department of Defense Funding Levels
                                       (Budget authority, in billions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                   Change:   Change:
                                                            1993      1999      2000      2001     1993 to   2000 to
                                                           Actual    Actual   Estimate  Proposed    2001      2001
    ----------------------------------------------------------------------------------------------------------------
      Defense Discretionary Program Level...............     262.4     274.6     280.9     292.2     +29.8     +11.3
    ----------------------------------------------------------------------------------------------------------------

      ----------------------------------------------------------------------

    Enhancing Military Readiness and Operations

       Ensuring Adequate Resources: Maintaining the current high levels of
    readiness is our top defense priority. Building on the major increases
    contained in the President's defense funding plan of last year, the
    budget provides a $5.4 billion increase in 2001 and an $11.0 billion
    increase over five years, as compared to 2000 Budget funding levels for
    the same time period. These resources will enable the Services to
    support unit operations and joint exercises, meet their required
    training standards, maintain their equipment in top condition, recruit
    and retain quality personnel, and procure sufficient spare parts and
    other equipment.
       DOD continues to monitor its current and future military readiness
    through the Senior Readiness Oversight Council and the Joint Monthly
    Readiness Review process, which

    [[Page 152]]

    ensure that the senior DOD leadership remains well informed about force
    preparedness issues.

       Ensuring Successful Contingency Operations: The budget proposes $4.4
    billion in 2001 for ongoing contingency operations--limited military
    operations in conjunction with our allies--in Southwest Asia, Bosnia,
    and Kosovo. Congressional approval for this funding is essential to
    preserve DOD's core operation and maintenance programs. In the absence
    of congressional approval, DOD would have to redirect funds from core
    programs, running the risk of undermining the readiness of our fighting
    forces.
       Improving Military Recruitment: Sustained effective recruiting is
    essential for the U.S. military to maintain a force with the appropriate
    distribution of skills and experience. Funding for active duty
    recruiting and advertising has been increased to all-time highs to
    ensure that the Armed Forces achieve their recruiting goals in 2000 and
    2001. These increases are necessary to attract qualified applicants at a
    time when the economy is growing, unemployment is low, and the number of
    high school graduates attending college is on the rise.
       Shaping the Strategic Landscape Through Arms Control and Cooperative
    Threat Reduction: The President remains firmly committed to reducing the
    threat from weapons of mass destruction (WMD) through arms control and
    cooperative threat reduction efforts. To that end, the Strategic Arms
    Reduction Treaty (START) process remains a high priority of U.S.
    foreign, security, and non-proliferation policy. While implementing
    START I, the Administration continues its work to bring the START II
    treaty into force and to begin negotiation of further strategic arms
    reductions following Russian ratification of START II.
       Furthermore, the Administration is discussing with Russia
    modifications to the Anti-Ballistic Missile Treaty that would support
    the possible deployment of a limited national missile defense system to
    counter threats from hostile rogue nations without undermining strategic
    stability or deterrence. In addition, the Administration will work with
    members of the Senate to gain ratification of the Comprehensive Test Ban
    Treaty and maintain its leadership in international arms control issues.
    The Administration also is committed to seeking a Protocol that will
    enhance transparency and help strengthen compliance with the Biological
    Weapons and Toxins Convention.
       In addition, the Administration continues its substantial threat
    reduction assistance programs in Russia and other states of the former
    Soviet Union to mitigate the danger posed by WMD, the proliferation of
    their fissile material components, and the scientific expertise behind
    them. The budget proposes nearly $1.0 billion for programs managed by
    DOD and the Departments of Energy (DOE) and State for this comprehensive
    and aggressive program. The DOD portion of this effort totals $469
    million.

       Countering Asymmetric Threats: The budget increases funding to
    enhance the Department's capability to counter asymmetric threats such
    as terrorism, proliferation and use of WMD, and threats to our critical
    infrastructure. Adversaries are expected to rely increasingly on these
    unconventional strategies to offset U.S. military superiority. The
    budget provides over $5 billion for programs to combat

    [[Page 153]]

    terrorism. Enhancements include improved awareness and training
    programs, worldwide vulnerability assessments, parallel standards for
    force protection, and increased resources for offensive means to deter,
    defeat, and respond to terrorist attacks wherever they may occur.
    Funding of nearly $1 billion for counterproliferation and defense
    against WMD programs improves our ability to locate and destroy chemical
    and biological weapons before they can be used and to defend against and
    manage the consequences of a WMD attack. The budget also proposes
    increased resources to protect critical infrastructures that support
    national security requirements, bringing this funding to almost $1.5
    billion.
       Executing Counter-drug Programs: DOD participates in the National
    Drug Control Strategy to stem the flow of illegal drugs into the country
    and to reduce demand. DOD's primary missions are: assisting domestic and
    foreign law enforcement in eliminating drug supply sources, detecting
    and monitoring aerial and maritime transit of illegal drugs, collecting
    and analyzing foreign intelligence, and supporting the activities of the
    National Guard under State counter-drug programs. Also, DOD continues to
    fight illegal drug use in the military through prevention, education,
    and testing. The budget proposes $1.1 billion for DOD's counter-drug
    efforts. In particular, DOD is actively contributing to a program to
    help the Colombian government combat the growing threat of drug
    production and trafficking. DOD's assistance will significantly
    reinforce President Andres Pastrana's democratically elected
    government's efforts to eliminate the narcotraffickers' threats to local
    and regional stability.
       Providing Humanitarian and Disaster Assistance: The budget increases
    funding for DOD to respond to international humanitarian crises and
    disasters. U.S. military forces' global presence and unique capabilities
    enable it to provide needed assistance at the request of the President,
    the Secretary of State or regional commanders, and in coordination with
    other Federal agencies and non-governmental organizations. DOD's quick
    response in Central and South America to Hurricane Mitch saved thousands
    of lives and helped our neighbors to the South recover their
    livelihoods, ultimately contributing to the stability of the region. The
    proposed $64.9 million for the Overseas Humanitarian, Disaster, and
    Civic Aid account will fund humanitarian activities carried out by
    military personnel; transportation and distribution of relief supplies
    and equipment; and, humanitarian demining and mine awareness training
    programs in 26 countries.
       Maintaining the Nation's Nuclear Deterrent: Nuclear weapons serve as
    a bulwark against an uncertain future, a guarantee of our security
    commitments to allies, and a disincentive to those who would contemplate
    developing or otherwise acquiring their own nuclear weapons.
       The budget proposes $4.7 billion for DOE to maintain the safety and
    reliability of the nuclear weapons stockpile without nuclear testing. As
    part of this program, DOE is building non-nuclear test facilities and
    developing computer codes to simulate nuclear explosions to predict the
    performance of the weapons and help assure their safety and reliability.
       In October 1999, Congress reorganized DOE, creating the National
    Nuclear Security Administration (NNSA) to administer the Department's
    national security functions. The budget adopts a new account structure
    to reflect this reorganization. However, much work remains to transfer
    specific projects, programs, and assets to the new NNSA, and the
    Administration will continue to work on this implementation and will
    inform the public and Congress of progress in this area in accordance
    with the 2000 National Defense Authorization Act.

    Modernizing the Force to Win Future Wars and Successfully Execute
    Contingency Missions

       Preparing Our Armed Forces Through Modernization: Maintaining the
    military forces that are necessary to deter and win wars and to
    successfully execute all contingency missions that may arise requires a
    healthy modernization program combined with a concerted effort to take
    advantage of the emerging Revolution in Military Affairs (RMA). In the
    1970s and 1980s, the Nation invested heavily in a wide range of
    equipment, including fighter aircraft, attack submarines, surface ships,
    helicopters, and armored vehi

    [[Page 154]]

    cles. This investment enabled us to reduce weapons purchases and total
    defense spending in the early 1990s as the Cold War ended. But the
    equipment bought in those prior two decades--the backbone of today's
    forces--is approaching the end of its anticipated service life and must
    be replaced. As these systems age, keeping them combat-ready becomes
    more difficult and costly, while their ability to dominate the
    battlespace with ease has decreased. Therefore, weapons system
    modernization--both in the form of upgrades to existing systems and in
    research, development, and procurement of completely new systems--
    continues to be a high Administration priority.
      An integral part of our modernization program is a long term effort to
    transform the military. This transformation will capitalize on the
    emerging RMA made possible by rapid advancements in technology. The
    RMA's goal is to effectively exploit technological advances through
    innovative operational concepts and new organizational arrangements,
    thereby allowing U.S. forces to be smaller, faster, more agile, more
    precise, more lethal, and better protected.
       The last QDR determined that the Department needs roughly $60 billion
    per year in weapons procurement funding, beginning in 2001, to modernize
    U.S. forces and maintain the decisive advantage manifested by equipment
    already in the force. The budget achieves that goal by providing $60.3
    billion for the 2001 procurement program, $6.1 billion more than the
    2000 level.
       In addition, the budget provides $7.5 billion (as part of a total
    Research, Development, Test and Evaluation, or RDT&E, funding level of
    $37.8 billion) to fund basic and applied research and development of
    advanced technologies. The Science and Technology (S&T) program will lay
    the groundwork for fielding next-generation systems and will help U.S.
    forces avoid technological surprise from future adversaries. S&T funding
    supports several interagency initiatives, including Critical
    Infrastructure Protection, support to civil authorities for preparedness
    against WMD, Nanotechnology, and Information Technology. The
    Administration has supported these S&T programs strongly in the past
    seven years, providing funding comparable to that during the Cold War.
    S&T activities--and the educational activities that they support
    directly and indirectly--also are vital to the Nation's strength in
    engineering, mathematics, and computer science.

       Modernizing Ground Forces: Army modernization efforts will address
    the need to maintain a force capable of accomplishing a wide range of
    missions from contingencies, such as operations in Kosovo and Bosnia, to
    its primary mission of defeating adversaries in a major theater war. To
    that end, the budget supports the initial year of a plan to implement a
    fundamental transformation of units so that they can deploy more easily
    than heavy tank and mechanized infantry divisions, yet possess greater
    lethality than light infantry divisions. Lessons learned from
    experiments in the next year will dictate the scope and pace of the
    transformation. During 2001, the Army plans to award the initial
    contract for the Medium Armored Vehicle (MAV), the cornerstone of the
    transformed units. The budget proposes $542 million in 2001 and $4.3
    billion over the 2001-2005 period for the MAV.
       Another key element of this transformation includes modernization
    programs to incorporate digital communications equipment into weapons
    systems to strengthen battlefield planning and execution. This and other
    upgrades to existing combat equipment will allow our ground forces to
    maintain a clear advantage over potential opponents. Furthermore, the
    Army will extend the useful life and improve battlefield performance of
    primary combat systems by integrating new navigation and data transfer
    technology, improving weapons and targeting systems, and augmenting
    vehicle protection systems. For example, the budget proposes $513
    million to upgrade the Abrams tank, $381 million to improve the Bradley
    Fighting Vehicle, and $744 million to procure Apache Longbow
    helicopters.

    [[Page 155]]

      ----------------------------------------------------------------------

                                               Combating Emerging Threats

       Emerging threats such as weapons of mass destruction (WMD) and cyberattack challenge traditional concepts of
    national security. Although the Department of Defense plays a key role in protecting the Nation from these
    asymmetric threats, a comprehensive defense demands the expertise and participation of many agencies throughout
    the Government. The Administration has worked to strengthen and coordinate each agency's contribution to this
    effort. Funding to combat terrorism overall has steadily increased over the past four years--up by 40 percent--
    while funding for new missions such as WMD preparedness and critical infrastructure protection has doubled in
    that time. The 2001 Budget proposes increases in each of these areas:

      Terrorism: Both domestic and international terrorism continue to threaten the security of American citizens.
    The budget provides $9 billion to combat terrorism, of which $5 billion would support the Defense Department's
    terrorism-related and force protection efforts; $1 billion would fund ongoing law enforcement activities in the
    Department of Justice; $1 billion would fund security initiatives for our embassies overseas; and, $100 million
    would support recommendations of the White House Commission on Aviation Safety and Security for explosives
    detection equipment.

      Weapons of mass destruction preparedness: The budget sustains the Administration's commitment to programs to
    deter terrorist incidents involving chemical, biological, radiological, or nuclear weapons and to manage the
    consequences should such an incident occur. Of the total for combating terrorism, the budget proposes $1.4
    billion, including $300 million for programs to train and equip first responders to manage a WMD incident; $140
    million to prepare for the health and medical consequences of an incident; and, $145 million for specialized
    Federal response teams in the Departments of Defense, Health and Human Services, Energy, and others. The budget
    also expands research and development (R&D) efforts for tools and techniques to prevent, detect, and respond to
    the release of a WMD. Initiatives include $30 million for the Department of Agriculture to protect the security
    of the Nation's food supply and $127 million for expansion of laboratory infrastructure at the Centers for
    Disease Control and Prevention.

      Critical infrastructure protection/cyber crime: The budget proposes over $2 billion for critical
    infrastructure protection. These funds support a national effort to assure the security of infrastructures in
    both the Government and the private sector that are necessary to ensure our national security, economic
    security, and public health and safety. The proposed funding for 2001 represents a 15-percent increase over 2000
    funding, including a 30-percent increase for R&D programs to develop the tools needed for effective
    infrastructure protection. Of the total, $1.7 billion protects Federal systems and ensures our ability to
    provide essential Government services to the public. About $300 million funds agency efforts to provide
    assistance to the private sector, where most of the Nation's critical infrastructure resides. New efforts
    include $50 million to establish an R&D institute, the Institute for Information Infrastructure Protection, to
    work collaboratively with industry on new infrastructure protection technologies and a $25 million program to
    ensure availability of highly-trained information security personnel in Federal agencies.

      ----------------------------------------------------------------------
       The centerpiece of the Marine Corps modernization program is the V-22
    tilt-rotor aircraft that will replace aging helicopters now used to
    transport troops and equipment. The budget provides $1.2 billion to
    procure 16 V-22s, which will have increased range, payload, and speed to
    significantly enhance Marine Corps tactical operations.
       The budget also funds critical development programs which will be
    procured in the middle of this decade, including $614 million for the
    Army's Comanche helicopter for armed reconnaissance, and $138 million
    for the Marine's Advanced Amphibious Assault Vehicle.

       Modernizing Naval Forces: The budget continues procurement of several
    ship classes, including $3.1 billion for three DDG-51 Aegis Destroyers,
    and $1.5 billion for two LPD-17 Amphibious Transport Dock ships. The
    Navy budget funds modernization of the nuclear aircraft carrier fleet by
    providing $4.1 billion to

    [[Page 156]]

    procure the tenth Nimitz-class nuclear aircraft carrier and $700 million
    to fund the first phase of refueling and modernization efforts for the
    second Nimitz-class carrier. This overhaul will enable the ship to stay
    in service for another 25 years. The budget also provides funds to
    procure the third Virginia-class nuclear attack submarine. In addition,
    the Navy is undertaking long-term development efforts to design the next
    generation of destroyers and aircraft carriers, to be procured in the
    middle of this decade. Both of these new ship classes will take
    advantage of innovative technologies and will be less expensive to
    operate than their predecessors.
       To defend against missiles and aircraft, the budget continues
    procurement of the Standard Missile. The budget also supports the
    development of the Tactical Tomahawk, an improvement to the current
    Block III version of the Nation's premier sea-based land attack missile.
    The budget supports investments in ship self-defense to provide close
    anti-air defense for surface ships, and in gun and missile technologies
    to improve the Navy's delivery of fire support to Marines and soldiers
    ashore.

      Modernizing Air Forces: For the United States to maintain its ability
    to dominate battles, substantial investment in new tactical combat
    aircraft is necessary. The budget supports three new aircraft programs.
    First, it provides $3.1 billion for production of 42 F/A-18E/F Super
    Hornets, which will become the Navy's principal fighter/attack aircraft.
    Second, it funds procurement of the first production lot of 10 F-22
    Raptors, the Air Force's new air superiority fighter, at a cost of $2.5
    billion. Full-rate production of the F-22 should be achieved early in
    this decade. Third, $857 million is provided to start advanced
    development and to continue research into new materials and
    manufacturing processes for the Joint Strike Fighter (JSF). The JSF is
    DOD's largest, most ambitious tactical aircraft program and is designed
    to produce a family of aircraft for the Air Force, Navy, and Marine
    Corps. It is scheduled to start replacing about 3,000 aging aircraft (F-
    16s, F/A-18C/Ds and AV-8Bs) in 2005.
       Joint missile procurement programs include the Advanced Medium Range
    Air-to-Air Missile and the Joint Standoff Weapon. Procurement continues
    for the Joint Direct Attack Munition--an inexpensive guidance kit which
    transforms unguided bombs into accurate munitions. In addition, the
    Navy's program to upgrade the guidance and ordnance sections of its
    Standoff Land Attack Missiles continues. The budget also funds RDT&E for
    various joint munitions programs of the future, such as the AIM-9X
    Sidewinder air-to-air missile and the Joint Air-to-Surface Standoff
    Missile.

       Defending Against Strategic Ballistic Missiles: The Administration
    intends to determine in 2000 whether to deploy a limited National
    Missile Defense (NMD) against ballistic missile threats to the United
    States from rogue nations. This decision will be based on an assessment
    of four factors: (1) whether the threat is materializing; (2) the status
    of the technology based on an initial series of rigorous flight tests,
    and the proposed system's operational effectiveness; (3) whether the
    system is affordable; and, (4) the implications that going forward with
    NMD deployment would hold for the overall strategic environment and our
    arms control objectives, including efforts to achieve further reductions
    in strategic nuclear arms under START II and START III. The budget
    proposes $1.9 billion in 2001 for development, procurement, and
    construction of a NMD system to defend all 50 States against a limited
    ballistic missile attack. The budget includes sufficient funding so that
    if the Administration decides in 2000 to proceed with deployment of a
    limited system, the resources will be available to quickly proceed
    toward a 2005 initial capability. The Administration's long-range
    defense plan now provides a total of about $10.4 billion in 2001-2005
    for NMD. This plan includes additional funding to expand the NMD
    capability to counter the expected rogue threat.
       Developing Missile Defense Technologies and Defending Against Theater
    Ballistic Missiles: The budget proposes $2.8 billion for other missile
    defense technologies and systems, including $1.9 billion for theater
    systems to defend against missiles that directly threaten deployed U.S.
    and allied forces. While the funding is primarily for research and
    development of advanced systems to meet future threats, it includes $0.4
    billion in procurement,

    [[Page 157]]

    most of which will be used to purchase an advanced version of the
    Patriot missile.
       Modernizing Space Systems: The budget provides funding for improved
    space-based communications and strategic and theater missile warning and
    defense. It also provides funding to support positioning and navigation,
    weather monitoring, and launch systems that will meet the needs of both
    military and civilian users. For example, DOD is funding upgrades to the
    Global Positioning System navigation satellites to allow the United
    States to maintain a military advantage while providing enhanced
    navigation capabilities to civilian users worldwide. In addition, DOD
    and its industry partners are developing the Evolved Expendable Launch
    Vehicles to provide more efficient, economical access to space.
       Establishing Information Dominance: America's preeminence in using
    information on the battlefield has helped us establish the world's
    strongest military. Commanders who can better observe and analyze the
    battle while disseminating highly accurate information to their forces
    have a powerful advantage over the adversary. Joint Vision 2010, DOD's
    vision for the future, focuses on the continued development of command,
    control, communications, computers, intelligence, surveillance, and
    reconnaissance capabilities. This effort will enhance the accuracy of
    weapons and allow more effective use of forces. The Army plans to
    ``digitize'' a corps by calendar year 2004--that is, equip it so that
    accurate, timely information about the battle can be transferred rapidly
    among U.S. forces. The budget includes funding for Navy and Air Force
    automated command and control systems, and land and space-based
    communications networks. It also includes funds for battlefield
    surveillance assets, such as unmanned aerial vehicles for all military
    departments, and national sensors to help our leaders better anticipate,
    monitor, and respond to crises. Finally, the budget funds initiatives
    that will improve the production and dissemination of information by
    coalescing disparate sets of data. These initiatives will play a key
    role in improving both military operations and national security
    decision-making, and will enable commanders to direct the battle and
    respond to threats more effectively.

    Taking Care of Military Personnel and Their Families

       Enhancing Pay and Compensation: Members of our Armed Forces are
    called upon continually to make personal sacrifices for the Nation's
    security. It is essential that the Nation show support for their service
    by enhancing their quality of life and that of their families.
    Therefore, the budget proposes a 3.7 percent pay raise, effective
    January 2001--as authorized in law--to ensure that military compensation
    remains competitive with private sector pay and the military services
    may continue to attract and retain high-quality personnel.
       Improving Other Quality of Life Programs: The budget includes
    substantial funding to improve the quality of health care, military
    housing, and dependents' programs. Enhancements to these family support
    programs aim to reduce the stresses associated with military life, such
    as frequent family separations. The budget includes a major initiative
    to reduce servicemembers' out-of-pocket costs for housing, making local
    community housing more affordable. The budget increases educational
    funding in order to accelerate the implementation of full-day
    kindergarten in DOD schools overseas and the reduction of the pupil-to-
    teacher ratio to 18:1 in grades one to three in all domestic and
    overseas DOD schools.
       Supporting Our Nation's Youth: The National Guard's Youth ChalleNGe
    program is a civilian youth opportunity program that provides military-
    based training, including supervised work experience in community
    service and conservation projects, to young people who have left
    secondary school prior to graduation. This activity provides life skills
    and experiences that enhance the employment potential of those
    participating in the program. For 2001, the budget sustains funding for
    this program at a level of $63 million.

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    Managing Our Defense Resources More Efficiently

       Pursuing Competitive Sourcing: DOD is implementing an aggressive
    competitive sourcing program for its infrastructure and support
    activities, including base utility services, general base operations,
    family housing, logistics support, training, property maintenance, and
    distribution depots. These functions, if retained by the government
    after competition, can be performed by both civilian and military
    personnel. Even after DOD exempts certain functions from competition for
    national security purposes, competitive sourcing will produce estimated
    savings of $11.6 billion from 1999 to 2005, with savings thereafter of
    more than $3.4 billion annually.
       Privatizing Military Family Housing: DOD has made a great deal of
    progress under the Military Housing Privatization Initiative, having
    privatized over 1,000 housing units by 1998 and nearly 2,700 units in
    1999. DOD is working on privatizing an additional 21,600 units in 2000,
    and expects to privatize a cumulative total of more than 31,500 housing
    units by the end of 2001.
       Eliminating Excess Infrastructure: Because infrastructure reductions
    have lagged behind force reductions, DOD has facilities that it no
    longer needs. These excess facilities drain resources that could
    otherwise support modernization, readiness, and quality of life. For
    three years in a row, DOD has submitted to Congress legislation to close
    additional bases in order to reduce the excess infrastructure.
    Unfortunately, Congress has failed to approve this legislation despite
    data that additional base closures will generate savings that can be
    applied to high priority defense programs. Nonetheless, DOD again will
    submit legislation this Spring for new base closure rounds in 2003 and
    2005. Additionally, DOD will continue to explore new ways to reduce
    infrastructure costs wherever possible. For example, the budget supports
    an aggressive ongoing program to demolish unneeded infrastructure.
       Improving Financial Management: DOD is continuing the vigorous
    transformation of its financial management processes and systems. Both
    finance and accounting systems are being consolidated and overhauled.
    Internal controls are being strengthened to reduce and then eliminate
    problems matching disbursements to obligations, reform the contractor
    payment process, improve computer security and fraud detection, and to
    implement Federal accounting standards. Such steps will provide managers
    with more accurate and timely financial information.
       Streamlining the Civilian Work Force: Since 1993, DOD has cut its
    civilian work force by over 27 percent, or more than 250,000 full-time
    equivalent (FTE) positions, and it will continue to streamline while
    maintaining quality. DOD plans to implement further reductions of 35,000
    civilian FTE positions. During this drawdown, DOD will provide
    transition assistance for affected employees.
       Implementing the Information Technology Management Reform Act
    (ITMRA): Also known as the Clinger-Cohen Act, ITMRA is designed to help
    agencies improve mission performance by effectively using information
    technology. One example is the Global Command and Control System, which
    supports U.S. forces by improving their ability to process and transfer
    critical military information quickly and accurately. The DOD Chief
    Information Officer Council manages DOD's annual $16 billion information
    technology budget and $19 billion command, control, and communication
    budget, and provides advice on ITMRA-related issues. In addition, DOD
    continues to restructure its work processes while applying modern
    technologies to maximize the performance of information systems, achieve
    a significant return on investments, cut costs, and produce measurable
    results.