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


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           9.  SUPPORTING THE WORLD'S STRONGEST MILITARY FORCE

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   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


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  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.

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                                         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.


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   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. 
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                    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.

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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

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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.
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                                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
----------------------------------------------------------------------------------------------------------------

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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

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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

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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

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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.

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                                           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.


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   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

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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,

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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.

[[Page 158]]

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.
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