[Senate Hearing 116-500]
[From the U.S. Government Publishing Office]


                                                      S. Hrg. 116-500

                  MILITARY PERSONNEL POLICIES AND MILITARY 
                               FAMILY READINESS

=======================================================================

                                HEARING

                               BEFORE THE

                       SUBCOMMITTEE ON PERSONNEL

                                 OF THE

                      COMMITTEE ON ARMED SERVICES
                          UNITED STATES SENATE

                     ONE HUNDRED SIXTEENTH CONGRESS

                             FIRST SESSION

                               __________

                           FEBRUARY 27, 2019

                               __________

         Printed for the use of the Committee on Armed Services
         

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                      COMMITTEE ON ARMED SERVICES

 JAMES M. INHOFE, Oklahoma, Chairman	JACK REED, Rhode Island
ROGER F. WICKER, Mississippi		JEANNE SHAHEEN, New Hampshire
DEB FISCHER, Nebraska			KIRSTEN E. GILLIBRAND, New York
TOM COTTON, Arkansas			RICHARD BLUMENTHAL, Connecticut
MIKE ROUNDS, South Dakota		MAZIE K. HIRONO, Hawaii
JONI ERNST, Iowa			TIM KAINE, Virginia
THOM TILLIS, North Carolina		ANGUS S. KING, Jr., Maine
DAN SULLIVAN, Alaska			MARTIN HEINRICH, New Mexico
DAVID PERDUE, Georgia			ELIZABETH WARREN, Massachusetts
KEVIN CRAMER, North Dakota		GARY C. PETERS, Michigan
MARTHA McSALLY, Arizona			JOE MANCHIN, West Virginia
RICK SCOTT, Florida			TAMMY DUCKWORTH, Illinois
MARSHA BLACKBURN, Tennessee		DOUG JONES, Alabama
JOSH HAWLEY, Missouri             
                                    
   		 John Bonsell, Staff Director
            lizabeth L. King, Minority Staff Director

_________________________________________________________________

                       Subcommittee on Personnel

   THOM TILLIS, North Carolina, 	KIRSTEN E. GILLIBRAND, New York
             Chairman			ELIZABETH WARREN, Massachusetts
MIKE ROUNDS, South Dakota		TAMMY DUCKWORTH, Illinois
MARTHA McSALLY, Arizona
RICK SCOTT, Florida                  
 
                                  (ii)


                         C O N T E N T S

_________________________________________________________________

                           February 27, 2019

                                                                   Page

Military Personnel Policies and Military Family Readiness........     1

               Statements of Members of the Subcommittee

Statement of Senator Thom Tillis.................................     1

Statement of Senator Kirsten Gillibrand..........................     2


                           Witness Statements

Seamands, Lieutenant General Thomas C., USA, Deputy Chief of          4
  Staff,
  G-1.
Burke, Vice Admiral Robert P., USN, Deputy Chief of Naval            10
  Operations, N-1.
Kelly, Lieutenant General Brian T., USAF, Deputy Chief of Staff      20
  for Manpower and Reserve Affairs.
Rocco, Lieutenant General Michael A., USMC, Deputy Commandant for    28
  Manpower and Reserve Affairs.
Dailey, Sergeant Major Daniel A., USA, Sergeant Major of the Army    51
Smith, Master Chief Petty Officer Russell L., USN, Master Chief      59
  Petty Officer of the Navy.
Wright, Chief Master Sergeant Kaleth O., USAF, Chief Master          65
  Sergeant of the Air Force.
Green, Major Ronald L., USMC, Sergeant Major of the Marine Corps.    71

Questions for the Record.........................................    78

                               Appendix A

Prepared Statement by The Military Officers Association of 
  America
  (MOAA).........................................................    79


Prepared Statement by The National Military Family Association...    88

Prepared Statement by The Tricare for Kids Coalition.............   108

Prepared Statement by Colonel Paul Kantwill (Retired)............   113

                                 (iii)


 
       MILITARY PERSONNEL POLICIES AND MILITARY FAMILY READINESS

                              ----------                              


                      WEDNESDAY, FEBRUARY 27, 2019

                          United States Senate,    
                         Subcommittee on Personnel,
                               Committee on Armed Services,
                                                    Washington, DC.
    The Subcommittee met, pursuant to notice, at 2:32 p.m., in 
room SR-222, Russell Senate Office Building, Senator Thom 
Tillis (Chairman of the Subcommittee) presiding.
    Committee Members present: Senators Tillis, McSally, 
Gillibrand, Warren, and Duckworth.

            OPENING STATEMENT OF SENATOR THOM TILLIS

    Senator Tillis. The committee will come to order. Senator 
Gillibrand, I've been advised by the staff, is on her way, and 
I thought since I have my opening comments, to make best use of 
everyone's time, I'll go ahead and start and we'll recognize 
the Ranking Member when she's here.
    Senator Duckworth, thank you for being here. I also know 
that Senator Scott--this would be his first Personnel 
Subcommittee meeting--he is actually in Florida for a funeral 
and looks forward to coming on this committee. I want to 
welcome Senator Duckworth.
    I've told everybody the reason I like this committee is it 
deals with the business of the Department of Defense (DOD) and 
it gives us a lot of opportunities to work on military family 
issues, the business of the DOD compensation, personnel 
management, and I look forward to working with Senator 
Duckworth and the returning members and Senator Scott.
    Senator Gillibrand, I just got started. About to do my 
opening statement, and then I'll defer to you.
    The Senate Armed Services Subcommittee on Personnel meets 
this afternoon to receive testimony on military personnel 
programs and on military family readiness. We're fortunate 
today to have the Services' personnel chiefs discuss the 
Department's military personnel programs and the Services' 
senior enlisted advisors discuss military family readiness.
    On panel one, we will hear from Lieutenant General Thomas 
Seamands, Deputy Army Chief of Staff, G-1; Vice Admiral Robert 
Burke, Chief of Naval Personnel; Lieutenant General Brian 
Kelly, Deputy Air Force Chief of Staff for Manpower, Personnel 
and Services; and Lieutenant General Michael Rocco, Deputy 
Marine Commandant, Manpower and Reserve Affairs.
    General Rocco, I was trying to think of what your call sign 
was, but I think we'll hold off on that one. I think you shared 
it one time.
    I'll introduce the second panel when we transition to their 
testimony.
    The topics we'll discuss today are vital to the 
effectiveness of the All-Volunteer Force. A complex global 
security environment requires DOD's military personnel programs 
and policies to be agile, adaptable, always capable of 
responding to uncertain threats we face. To sustain our 
military into the future, these programs and policies must 
appeal to our Nation's best and brightest.
    We also cannot lose sight of the importance of the military 
families who support our troops every day. Military families 
face uncommon stressors and challenges unlike those of their 
civilian counterparts. The Subcommittee must understand 
military families' concerns, such as military spouse employment 
and unemployment, inadequate childcare, and unsafe housing 
conditions.
    If I may, just for a moment, depart from my prepared 
statement. We had the hearing on housing recently. I've spoken 
with the Secretary of Army, Secretary of the Navy, and Chief of 
the Army just last night, and I have meetings scheduled with 
many others. But what we saw reported is simply unacceptable. 
So while this committee will oftentimes talk about the longer-
term strategies, the authorities within the NDAA [National 
Defense Authorization Act], there's a very clear expectation on 
our part that we figure out what the short-term remediation 
strategy is for the despicable situation we find some of our 
military families in today. I know that there's no daylight 
between any of us in the room on that issue. It's a matter of 
priority and execution.
    We want to work diligently to ensure Military Services 
provide the support that families need. The readiness of our 
Armed Forces, and ultimately, our Nation's security, depends on 
it.
    Finally, I look forward to hearing from the personnel 
chiefs about their efforts to improve recruitment and retention 
of military personnel, improve military personnel and family 
readiness, prevent sexual assault and harassment, reduce 
servicemember and family suicides, combat domestic violence and 
child abuse, enhance childcare services, and improve employment 
opportunities for military spouses. I hope the senior listed 
advisors on the second panel will describe what they are doing 
to improve the quality of life for military families and take 
care of our enlisted troops who comprise the vast majority of 
the military.
    I want to thank all of the witnesses for being here today 
and I look forward to hearing your testimonies.
    I'd also like to let everybody know, as I said earlier, 
that Senator Scott, who is very excited to be on the Personnel 
Subcommittee--he's sort of a business geek like me--regrets 
that he is not here, but he will be at our next hearing.
    With that, I'll turn it over to Ranking Member Gillibrand.

            STATEMENT OF SENATOR KIRSTEN GILLIBRAND

    Senator Gillibrand. Thank you so much, Senator Tillis, for 
your leadership and for this posture hearing. I join with you 
today in welcoming our witnesses as we receive testimony on the 
Department's military personnel and family readiness programs, 
which I believe are absolutely critical to our military 
readiness, from improving the condition of military housing to 
providing high-quality health care, recruiting cyber warriors 
who can meet tomorrow's threats, ensuring access to childcare, 
and eliminating sexual harassment and assault from the ranks, 
personnel issues directly affect the ability of our 
servicemembers to focus on their military duties.
    I am very concerned by continuing harmful actions taken by 
the Trump administration against military and civilian 
personnel alike. Thousands of brave transgender servicemembers 
continue to serve in our military despite uncertainty in the 
fate of their careers. The ranking member of the committee, 
Senator Reed, and I have introduced a bipartisan bill that 
would permanently lift the discriminatory ban, allowing 
transgender individuals to serve in our military so long as 
they otherwise meet Military Service standards, applying the 
same standard to them as is applied to everyone else.
    Our civilian employees who serve critical national security 
functions and allow uniformed personnel to focus on their 
military duties have also been under attack. Late last year, 
the Secretary of the Army announced that he would end childcare 
subsidies for civilian employees effective this Friday, March 
1, plunging thousands of patriotic civil servants into 
financial uncertainty. Additionally, Congress recently rebuked 
the President's effort to freeze the pay of civilian employees 
once again. The 1.9 percent raise was important, but still 
below inflation. Civilian pay has lagged considerably behind 
military pay for more than a decade, including a 3-year pay 
freeze and furloughs despite significant reductions in the 
civilian workforce. Continued attempts to devalue the service 
of our civilian workforce only harms morale and decreases 
readiness.
    Separately, I hope each of you watched the hearing held 2 
weeks ago by the Subcommittee on the awful privatization 
military family housing conditions that some of our 
servicemembers are forced to endure. It is shameful that it 
takes a congressional hearing to motivate individuals to do the 
right thing. The Military Services cannot wash their hands of 
this issue hiding behind deals signed with the private sector 
to manage these projects. I look forward to hearing more about 
what you're doing to address those shameful conditions.
    Finally, I want to say a word about our second panel, the 
Services' senior enlisted advisors. I want to say at the outset 
that I value the service of our enlisted personnel. I remain 
concerned that more needs to be done to curb sexual abuse 
within the ranks and to change the culture that enables this 
conduct. This begins with the noncommissioned officers and 
leadership, all the way down to the squad level.
    I hope you will also tell this Subcommittee what more we 
can do to support our servicemembers and families, especially 
our most junior, to ensure their successful service.
    Thank you, Mr. Chairman. Thank you to all.
    Senator Tillis. Senator Duckworth, do you have any 
comments?
    Senator Duckworth. Thank you, Mr. Chairman. I think that 
this is one of those issues that is truly bipartisan.
    I do want to thank the gentlemen for coming and that, 
truly, we cannot unlink or break the link between what we do 
for our military personnel and their family members in housing 
and military readiness. Our guys and gals downrange need to be 
secure in knowing that their family members are taken care of, 
and we all know that.
    So I thank the chairman for having this hearing, and I 
thank you for being here, and I look forward to hearing your 
comments and the questioning. Thank you.
    Senator Tillis. Now we'll turn to the witnesses for opening 
comments. If you can possibly keep them to 5 minutes, we would 
appreciate it so we can get to questions.
    We'll start with General Seamands.

STATEMENT OF LIEUTENANT GENERAL THOMAS C. SEAMANDS, USA, DEPUTY 
                      CHIEF OF STAFF, G-1

    Lieutenant General Seamands. Chairman Tillis, Ranking 
Member Gillibrand, distinguished Members of the committee, I 
thank you for the opportunity to appear today on behalf of the 
men and women of the United States Army. I've submitted a 
statement for the record, but I'd like to highlight a few 
things at this time.
    Manning the Army is one of the vital components of 
readiness and is key to our ability to fight and win our 
Nation's wars. To maintain readiness and shape the future of 
the Army, we must recruit resilient, diverse individuals of 
high character to fully man formations while achieving 
sustainable growth and maintaining high-quality standards. 
Further, we must recruit in a competitive environment where 
only about 29 percent of the 17- to 24-year-olds are even 
eligible to join the Army and only about 8 percent have a 
propensity to serve in the military.
    The Army must also continue to retain the most talented 
soldiers, noncommissioned officers, and commissioned officers 
with the experience and skills necessary to meet current and 
future needs. The Army remains committed to giving all soldiers 
who can meet the standards of the military occupational 
specialty the opportunity to serve. We have successfully 
assessed and transferred more than a thousand women into 
previously-closed occupations of Infantry, Field Artillery, and 
Armor.
    As the Army works to become more lethal, to enhance both 
capability and capacity, and to ensure critical support to 
soldiers and their families, our Department of the Army 
civilians are an integral partner, and we must continue to size 
the civilian workforce to meet our current and future demands. 
The Army Talent Management Task Force is leading the Army's 
effort to ensure the Army acquires, develops, employs, and 
retains soldiers and civilians. The Integrated Pay and 
Personnel System Army, or IPPS-A, will modernize and transform 
Army human resource processes to change how the Army manages 
our people. We recently completed a successful test of the 
system with the Pennsylvania Army National Guard, and this year 
we will field IPPS-A across the Army National Guard formations.
    Thank you for the 2019 NDAA, which provided us great 
flexibility. We're beginning to use those authorities granted 
to help determine what future talent-based systems look like. 
We're transforming business processes and developing 
innovations to ensure we provide the force that is optimized. 
To ensure we are organizationally ready for combat, we must 
sustain the personnel readiness of our soldiers. The Army's 
improving personnel readiness and employability by 
strengthening soldiers, improving resiliency skills, and 
fostering a culture of trust. We believe these actions will 
enhance unit readiness and cohesion.
    The Army remains fully committed to eliminating sexual 
assault, sexual harassment, and associated retaliatory behavior 
from its ranks. We recognize that regardless of the progress 
that we've made, there's much more to be done. Reports of 
sexual assault and harassment will be thoroughly investigated, 
and soldiers who commit these crimes will be held appropriately 
accountable for their actions. Soldiers who are victims of 
sexual assault will be fully supported and provided recovery 
services and victim protection.
    The Army has reduced the number of non-deployable personnel 
and improved the overall personnel readiness of the Army. We 
also continue to reduce the time required for soldiers to 
process through the Integrated Disability Evaluation System. In 
addition to taking care of soldiers and their families while 
they're in the Army, we are committed to ensuring the 
successful transition as they prepare for life after the 
Service. The Army's Soldier for Life program conducts strategic 
outreach and shapes education, employment, and health policies, 
programs, and services to inspire citizens to serve and create 
an environment where soldiers transition to be productive 
veterans of character, integrity, and service as they return to 
their communities.
    Our Army is strong because of the courage and commitment of 
our soldiers, civilians, veterans, and family members who serve 
our Nation. People are not in the Army; people are the Army. 
These men and women who serve our Nation, both in uniform and 
out of uniform, are our most important asset. For the Army to 
be ready, our soldiers must be ready.
    Chairman Tillis, Ranking Member Gillibrand, members of the 
committee, I thank you for the opportunity and your generous 
and unwavering support of our outstanding soldiers, civilian 
professionals, and their families.
    [The prepared statement of General Seamands follows:]

              Prepared Statement by LTG Thomas C. Seamands
    Chairman Tillis, Ranking Member Gillibrand, distinguished Members 
of this committee, I thank you for the opportunity to appear before you 
on behalf of the men and women of the United States Army.
    America's Army stands ready today to deploy, fight, and defeat any 
threat or adversary because of the courage and commitment of the 
soldiers, civilians, veterans, and family members who serve our Nation. 
Readiness remains our number one priority. In order to sustain Army 
readiness, we must ensure that our people are ready, by focusing on 
first-class programs that provide continued care and resources for 
soldiers and their families. There is no doubt that personnel readiness 
is the keystone in the archway of unit and force readiness.
    Today, only 29 percent of 17-24 year-olds in the United States are 
eligible to serve in the Army, and only one in eight has a propensity 
to enlist in the military, making Army accessions a challenging and 
resource-intensive activity. Further, America's youth are increasingly 
disconnected from the military and lack knowledge about Military 
Service. Individuals who are related to a servicemember make up most of 
our applicants, with 79 percent of new recruits having a relative who 
served and 28 percent having a parent who served.
    The Army continues to focus on recruiting and accessions in order 
to responsibly grow end strength. We enlisted 870,000 Active component 
(AC) recruits in fiscal year 2018, the largest production since 2011. 
Despite challenges in the recruiting environment, the Army revised its 
entry standards last summer in a number of areas, making clear its 
commitment to ``Quality over Quantity.'' The Army is also on a path to 
achieve the fiscal year 2019 recruiting missions in all three 
components. The fiscal year 2019 Active component mission is 
(tentatively) 68,000, USAR [United States Army Reserve] is 15,600 and 
the ARNG [Army Reserve/National Guard] is 39,000. The Army is on a 
glide path to achieve its year-to-date Active Army and USAR recruiting 
missions. Recruiting is a total Army approach to include: budgeting 
$450 million in fiscal year 2019 for Active Army bonuses; investing $50 
million to add, relocate or improve recruiting centers in more than 200 
critical markets; upgrading ``goArmy.com''; achieving 100 percent 
recruiter manning by January 2019 (after adding nearly 800 recruiters 
in fiscal year 2018); more effectively using social media platforms; 
and improving advertising to include the development of a new marketing 
tagline. These investments provide the Army better footing to achieve 
the recruiting mission for all three Army components.
    The Army must continue to retain the most talented soldiers and 
non-commissioned officers with the experience and skills necessary to 
meet current and future needs. The AC, USAR and ARNG each achieved 
their fiscal year 2018 retention missions. Fiscal year 2018 was a 
historic year for the AC, retaining over 90 percent of our eligible 
population. The previous record was 85 percent in fiscal year 2017 and 
the historical average is 881 percent of a specific year group. Each 
component is set to accomplish their respective retention missions 
while maintaining quality standards in fiscal year 2019. These 
retention achievements support meeting our NCO [non-commissioned 
officers] requirements in the near to mid-term. These achievements 
would not be possible without the funding support for incentives 
granted by Congress.
    Our officer corps is a strong, diverse and high-performing force. 
Army efforts to increase officer diversity resulted in fiscal year 2018 
officer accessions being 68.3 percent white and 31.7 percent minority, 
versus the U.S. population of 25-34 year olds with bachelors or higher 
degrees being 72.9 percent white and 27.1 percent minority. Fiscal year 
2019 officer branching increased racial and ethnic diversity within the 
combat arms branches, resulting in 29.9 percent minority selections. In 
fiscal year 2019, the United States Military Academy (USMA) increased 
to 3.3 percent of their total population in African American cadets 
assigned to Infantry (IN) and Armor (AR) (32 compared to 19 in fiscal 
year 2018) and the U.S. Army Cadet Command increased to 1.5 percent (48 
as compared to 38 in fiscal year 2018). Additionally, the percentage of 
Hispanic cadets branching IN and AR grew in both sources of commission 
to 2.2 percent of their total population. Female representation in 
combat arms also increased in fiscal year 2019, as the Army is 
currently scheduled to access 56 women into Infantry and Armor branches 
in fiscal year 2019, a 28.6 percent increase from fiscal year 2018. The 
Army will maintain a firm emphasis to integrate diverse attributes, 
experiences and backgrounds into our officer corps to lead our All-
Volunteer soldiers.
    The Army strives to continuously improve efforts to assess and 
train the right soldier for the right job. The U.S. Army Training and 
Doctrine Command continues to use the Occupational Physical Assessment 
Test (OPAT), implemented in January 2017, as a physical assessment 
screening tool for officer and enlisted accessions. Passing the OPAT 
ensures new soldiers, regardless of gender, can succeed in an assigned 
specialty and verifies their readiness for training. Longitudinal 
studies on OPAT are being conducted by the Army Research Institute to 
measure OPAT's effect on morale, cohesion, and readiness.
    Any soldier who can meet the standards of a Military Occupations 
Specialty (MOS) can be afforded the opportunity to serve in that MOS, 
regardless of gender. To date, the Army has successfully accessed and 
transferred more than 1,000 women into the previously closed 
occupations of Infantry, Armor, and Field Artillery.
    Currently, 83 female officers are assigned to Infantry or Armor 
positions at Forts Hood, Bragg, Carson, Bliss, and Campbell. In 2019, 
assignments will expand to Forts Stewart, Drum, Riley, Polk, and Italy. 
Additionally, the Army has transferred, trained, and assigned female 
NCOs into both Infantry and Armor specialties. As part of a multi-year 
effort to open other assignments to female soldiers, as many as 500 
women currently serve in every Active Brigade Combat Team in the Army 
down to the company level. To date, 24 women have completed Ranger 
School and two officers are assigned to the Ranger Regiment. The Army 
continues its long-term studies on gender integration and continues to 
use a standards-based approach to increase the diversity in all our 
units.
    The Army could simply not take on its mission of fighting and 
winning our Nation's wars without its talented civilian workforce. 
Civilians serve across the institutional Army and around the globe. 
Civilians provide continuity and enable the Army to free up soldiers 
for service in the operational Army. About 22 percent of the Army's 
total personnel are civilians. Since 2011, the Army has drawn down the 
civilian workforce by about 15 percent. As military end strength 
increases, the Army may need to increase the capabilities of the 
civilian workforce to support our soldiers and their families. 
Department of the Army civilians are key enablers of our readiness and 
operational capabilities. As the Army looks to become more lethal, 
enhance both its capability and capacity, and ensure critical support 
to the solider and their families, our Department of the Army civilians 
are an integral partner, and must be right sized to ensure that part of 
our workforce can meet current and future demands.
    In an effort to enhance our prevention efforts and gain positive, 
synergistic effects, we've combined the Army Sexual Harassment/Assault 
Response and Prevention Program (SHARP) Office with the Army Resiliency 
Directorate. This merger not only aligns the Army with the Department 
of Defense and sister services, it also supports our goal of developing 
ready, resilient soldiers of character who are able to fight and win 
our Nation's wars. Through the consolidation of the SHARP and 
resiliency directorates, we're realizing efficiencies in functionality, 
especially with regard to our prevention, policy, and research mission 
areas. Additionally, we're able to provide command teams with common 
initiatives and tools to help them realize and reinforce healthier 
organizational climates, which we believe is essential to the Army's 
first priority--readiness.
    To ensure we're organizationally ready for combat, we must sustain 
the individual readiness of our soldiers. The Army is improving 
personnel readiness and deployability by strengthening soldiers, 
improving resiliency skills, implementing the new Army Combat Fitness 
Test (ACFT), new deployability standards, and fostering a culture of 
trust. We believe these actions will enhance unit cohesion--one of the 
intangibles of organizational readiness.
    We are continuing our efforts to provide commanders and leaders 
increased visibility of their readiness with improvements to the 
Commander's Risk Reduction Dashboard (CRRD) Increment 2. This tool 
gives commanders visibility of their soldier and unit risk history, 
trends, and factors impacting personal readiness. The Army is working 
to field CRRD Increment 2 to the ``Total Army'' starting this year.
    In the past year, we successfully fielded ``Engage,'' which 
provides soldiers with skills to recognize and enable bystander 
intervention and improve unit cohesion across formations. Research 
indicates that soldiers lack the expertise to successfully and 
routinely execute professional interventions. ``Engage'' encourages 
engagements across a wide variety of situations to enhance 
communication with peers, subordinates and supervisors.
    The ``Not in My Squad'' initiative, developed by the Sergeant Major 
of the Army, continues to empower squad leaders to establish healthy 
unit climates and encourage bystander intervention. Research has 
determined that squad leaders have the greatest impact on units, the 
individual soldier and the organizational climate.
    ``Engage'' and ``Not in My Squad'' are now used at 27 Ready and 
Resilient Performance Centers across all components of the Army. We 
have certified master resiliency trainers who are embedded in company-
level formations and train soldiers on 16 resilience skills that focus 
on sustaining personal readiness and optimizing human performance.
    The U.S. Army remains fully committed to eliminating sexual 
assault, sexual harassment, and associated retaliatory behavior from 
its ranks. Reports are thoroughly investigated, and soldiers who commit 
those crimes are held accountable for their actions. All victims of 
sexual assault are fully supported and provided recovery services and 
victim protection.
    Prevention, while providing professional comprehensive response 
when these incidents do occur, remains a top priority for the Army. We 
continue to focus our resources to reduce sexual misconduct across all 
components of the Army, while encouraging those who have experienced 
unwanted sexual contact to come forward. In fact, we're anticipating 
the third straight year of increased reporting, which reinforces our 
belief of increased confidence in the chain of command and our response 
system.
    We recognize that regardless of the progress that has been made, 
more work must be done. For example, the recent report on Service 
Academies Gender Relations (SAGR) survey shows an increase in 
prevalence since the last time the survey instrument was administered 
in 2016. We attribute some of the increase in estimated prevalence to 
better awareness of the behaviors that constitute sexual assault and 
sexual harassment. However, our leaders at the U.S. Military Academy 
have been working the past 18 months on revamping the school's 
prevention program prior to the SAGR survey results. As a result of a 
bottom-up review, they've revised the Academy's curriculum to better 
address some of the concerns cadets expressed about the sexual assault/
sexual harassment prevention program. Additionally, reporting increased 
at USMA for the fifth straight year. We previously made changes to 
facilitate the ease of reporting for cadets and are encouraged by the 
fact that they trust the leadership at USMA and are confident in the 
Academy's response system. We are looking forward to the service 
academies national discussion on this issue at Annapolis in early 
April.
    First-line leaders are foundational to the Army's primary 
prevention efforts regarding sexual assault, sexual harassment, and 
associated retaliation. Army leaders must set and enforce standards, 
practice healthy relationships, and set the conditions to prevent 
sexual misconduct from occurring. We will continue to build a climate 
of trust that respects and protects the dignity of every team member, 
and ensure individuals are skilled in problem identification and 
effective in early and proactive interventions that reduce all types of 
misconduct.
    Suicide remains a complex national problem that the Army works to 
resolve as do the rest of the Services. The Army Senior Leadership 
remains very concerned with the high number of deaths by suicide over 
the past 2 years and have mandated a more rigorous implementation of 
initiatives and command emphasis across all components of the Army. We 
have better awareness of the demographics for most of our deaths being 
males in the ranks from private first class through staff sergeant who 
have a combination of relationship, financial, work-related, and 
behavioral issues. Potential reasons for the recent Active component 
increase include: recruits entering service with low resilience to 
adversity coupled with poor coping and communication skills; the need 
for maximized leader and peer visibility of the soldier personal issues 
just mentioned; and lastly, the difficulty in screening for all past 
behavioral health histories of potential recruits. With this increased 
awareness, Army Senior Leadership has mandated a more rigorous 
implementation of initiatives and command emphasis across all 
components of the Army. Army is seeing a significant increase in 
suicide ideations. Potential reasons for this low follow through rate 
are: 1) Stigma reduction--soldiers becoming increasingly comfortable 
seeking help; 2) Effective behavioral health care and follow-up; and 3) 
Increasing bystander intervention.
    In 2019, the Army will conduct a pilot at select locations intended 
to test the following new initiatives: leader tools designed to improve 
visibility, improve soldier communication with complex and sensitive 
subjects, and provide soldiers a better self-assessment; surging 
capabilities to train and educate soldiers on resilience skills 
designed to improve individual coping mechanisms and make resiliency an 
Army core competency; and renewed partnering with external agencies 
such as the VA [Department of Veterans Affairs], Center for Disease 
Control, leading universities, and research institutions to examine and 
potentially implement new initiatives to help reduce suicides across 
the Army and entire Joint Force. If these prove beneficial we expand 
them to the entire force.
    This Army continues to work to decrease the stigma associated with 
seeking behavioral health care, and we are seeing some positive 
results. Behavioral health encounters for the Total Army grew from 
approximately (900,000) in fiscal year 2007 to approximately (2.25 
million) in fiscal year 2017, indicating greater trust in the system. 
Soldiers required 65,975 fewer inpatient bed days for all types of 
behavioral health conditions in 2017, as compared to 2012.
    Further, the Army provided more timely care to soldiers. For 
example, according to the 2017 DHA [Defense Health Agency] Healthcare 
Effectiveness Data and Information Set, 94 percent of all soldiers 
hospitalized for a behavioral health condition received a follow-up 
appointment in a clinic within seven days, which far exceeds the 
national average. The practice of embedding behavioral health personnel 
and substance abuse disorder providers within combat units provides 
soldiers with more comprehensive care.
    Total Army non-deployable personnel reduced by 886,000 or 8 percent 
from June 2016 to December 2018 (8153,000 or 15 percent to 867,000 or 7 
percent). The current 7 percent non-deployable rate is a result of 
aligning Army reporting with the current DOD Instruction and with 
command emphasis at all levels. Beyond reducing the number of non-
deployables, the published policies (DODI 1332.45, Retention 
Determinations for Non-Deployable servicemembers, and Army Directive 
2018-22, Retention Policy for Non-Deployable Soldiers) are establishing 
a culture change. While policy revisions have proven to aid in 
increasing deployability and lethality, additional Army initiatives 
have and continue to provide positive results. The establishment of the 
Commander's Portal for Medical Protection System integrated essential 
medical readiness information in one easy-to-use application, giving 
commanders (or his/her designee) the ability to quickly review 
soldiers' deployability status. In short, the Commander Portal 
significantly increased visibility of factors influencing soldier 
medical readiness. To further increase deployability, the Army 
established the Holistic Health and Fitness Program (H2F), which is a 
paradigm shift to a proactive injury prevention strategy. This program 
represents a comprehensive, integrated and immersive health and fitness 
system of governance, personnel, equipment, facilities and leader 
education that maximizes readiness and deployability through the 
reduction of injuries, attrition and associated costs. The program 
fosters more resilient soldiers who are better prepared to conduct 
their wartime mission. While we continue to monitor the impacts of 
recent policy revisions and established initiatives, we are confident 
we're trending in the right direction, as evidenced by the increased 
readiness in our Brigade Combat Teams.
    The readiness of Regular Army (RA) Brigade Combat Teams (BCTs) has 
doubled since June 2016, when only 12 of 31 or 39 percent of RA BCTs 
achieved the highest state of personnel readiness. As of December 2018, 
24 of 31 or 77 percent of RA BCTs continued the trend of improved 
overall personnel readiness. The increased personnel readiness is 
attributable to the collaborative efforts of Army Senior Leader 
emphasis and an engaged medical community.
    The Army remains committed to efficiently evaluating potentially 
ill and injured soldiers in the Integrated Disability Evaluation System 
(IDES), returning fit soldiers to duty or assisting unfit soldiers in 
transitioning to civilian life. Improving trends in case processing 
times demonstrate the Army's resolve. Average processing times continue 
to drop and are down to 198 days for non-Active Duty soldiers and down 
to 201 days and for Active Duty soldiers. Processing times were 
impacted during fiscal year 2018 due to information technology (IT) 
migration activities involving our separate Medical Evaluation Board 
and Physical Evaluation Board case processing applications merging into 
a single disability case processing application. Per Secretary of 
Defense Directive, we continue to strive towards achieving a new 180-
day IDES processing goal, effective 1 October 2019. As of now, the IDES 
non-deployable population remains steady at approximately 10,000.
    The Army is undertaking a comprehensive reform of the Officer 
Personnel Management System to ensure we match the knowledge, skills, 
and behaviors of each soldier to the right position, optimizing both in 
order to dominate in land combat against any adversary. The Army Talent 
Management Task Force is leading the Army's efforts to shift from an 
industrial-age personnel distribution system to an information-age 
market-based talent management model that deliberately manages our 
soldiers and civilians based on optimized placement in positions that 
capitalize on their unique talents. The task force oversees initiatives 
to ensure the Army acquires, develops, employs, and retains soldiers 
and civilians with the diverse talents required for the current and 
future force.
    The 2019 NDAA provided us great flexibility and we use the 
authorities granted in it to help determine what a future talent-based 
system looks like. For example, the Army direct commissioned four 
captains and has plans to direct commission at least 12 more officers 
this fiscal year, including a major. Implementation of merit-based 
promotions are scheduled to begin in July with the Army competitive 
category major promotion board. Under the Talent Assessment Program, 
the Army piloted a battery of talent assessments and plans to expand 
the program to all junior captains attending the captain's career 
courses starting this summer.
    Talent assessments are not new to young officers. In fact, many of 
the second lieutenants entering the Army today are products of talent-
based branching. The program was first piloted at West Point in 2012 
and expanded to ROTC [Reserve Officers' Training Corps] in 2016 and OCS 
[Officer Candidate School] in 2018. Cadets undergo a battery of 
assessments that inform their branch choice and determine if it is a 
good fit for both the branch and the individual. An unexpected outcome 
of talent-based assessments is that it changed cadets' behavior over 
time as cadets became more aware of their own talents and more informed 
about branches.
    In January, the Army Talent Management Task Force held a planning 
conference with 183 representatives from more than 80 organizations 
across the Army. The outcome of that conference was a series of 
initiatives that the Army will use to understand, assess, experiment, 
and implement a new talent management system--a system that when 
appropriate, includes spot promotions, opting out of promotion boards, 
and a new alternate promotion authority. Bridging the gap between the 
current and future system requires a regulated marketplace, integration 
of holistic assessments, and flexible career paths. We are currently 
running multiple pilots to test and gather lessons learned. For 
example, Assignment Interactive Module Version 2 (AIM 2) is conducting 
marketplace matching between officers designated to move and available 
assignments. Moving to an Officer Talent Management System will require 
fundamental changes in Army culture--changes we're already seeing with 
the adoption of the AIM 2 marketplace and talent-based branching. The 
Army is transforming its business practices and developing innovations 
to ensure we provide a force that is optimized to fight and win our 
Nation's wars.
    The Army has seen an increase in officer retention in fiscal year 
2018, retaining 89.0 percent of the Army competitive category captains 
and 94.4 percent of majors compared to 87.7 percent and 92.8 percent, 
respectively, in fiscal year 2017. Overall, the Army retained 91.7 
percent of all officers in fiscal year 2018. Since 2016, there has been 
nearly a 2 percent officer retention increase. Approximately 76 percent 
of officers are staying at least one year past their Active Duty 
Service Obligation (ADSO) (USMA 68 percent / Scholarship ROTC 75 
percent-largest category / Non-Scholarship ROTC 85 percent / OCS 76 
percent)
    Over the next several years, the Army's continued use of market-
based, talent based branching-integrated with initiatives to redesign 
promotion selection processes-will help us retain talented officers. We 
will recognize high performing officers and be able to manage them 
accordingly with the authority to make order of merit promotion list 
adjustments. Additionally, the use of opt-out provisions will offer 
flexibility for promotion consideration. Our analysis of the broad 
alternate promotion authority will allow us to develop additional 
initiatives; and together, the use of the new authorities granted in 
the fiscal year 2019 NDAA will help the Army transform its business 
practices and develop personnel management innovations that ensure we 
provide a force optimized to fight and win our Nation's wars.
    Taking care of soldiers and their families while they are in the 
Army is just one part of our commitment to ensuring their successful 
transition. We never forget we must continue our efforts to prepare our 
soldiers for transition in the community as productive veterans.
    The Army's Soldier for Life program conducts strategic outreach and 
shapes education, employment, and health policies, programs and 
services to inspire citizens to serve and to create an environment 
where soldiers transition to be productive members of society. The 
program connects private and public organizations to transitioning 
soldiers and spouses looking for educational and employment 
opportunities.
    For fiscal year 2018, the Army's Veterans Opportunity to Work (VOW) 
Act compliance increased from 88 percent to over 90 percent--the Active 
component at 91 percent (+1 percent), ARNG at 91 percent (+5 percent), 
and USAR at 82 percent (+3 percent). We continue to enhance our 
policies and procedures for transitioning soldiers and have ensured 
commanders understand that they must ensure their soldiers attend VOW 
Act-mandated briefings. It is in the Army's and our Nation's best 
interest to ensure soldiers transition successfully back into our 
communities. Further, according to data from the Department of Labor, 
in 2018 Soldier for Life--Transition Assistance Program (SFL-TAP) 
efforts assisted in reducing the unemployment rate for veterans that 
joined the Army after September 11, 2001, to less than 4 percent (3.8 
percent) for the first time, with the lowest amount of unemployment 
compensation for veterans in 17 years. Between fiscal year 2011 and 
fiscal year 2018, SFL-TAP efforts have contributed to an 82.2 percent 
decrease in total Unemployment Compensation for Ex-servicemembers (UCX) 
payments ($514.6 million to $91.4 million). The fiscal year 2018 UCX 
invoice is the lowest since fiscal year 2001 ($89.8 million).
    We have invested a tremendous amount of resources and deliberate 
planning to preserve the All-Volunteer Force. People are the Army . . . 
these men and women who serve our Nation, both in uniform and out of 
uniform, along with their families, are our most important asset. For 
the Army to be ready, our soldiers must be ready. The Army will not 
sacrifice readiness or quality as we continue to grow. Chairman Tillis, 
Members of this committee, I thank you for generous and unwavering 
support of our outstanding soldiers, civilian professionals, and their 
families.

    Senator Tillis. Thank you, General Seamands.
    Admiral Burke.

STATEMENT OF VICE ADMIRAL ROBERT P. BURKE, USN, DEPUTY CHIEF OF 
                     NAVAL OPERATIONS, N-1

    Vice Admiral Burke. Chairman Tillis, Ranking Member 
Gillibrand, and distinguished Members of this Subcommittee, 
thank you for the opportunity to be here today and update you 
on your Navy's personnel programs.
    We continue to grow the Navy's manpower commensurate with 
the force structure for the Navy the Nation Needs. We are 
simultaneously working to restore full manning to our existing 
fleet. This year we will grow the Navy by 7500 people and 
another 5100 next year. Fleet wholeness continues to improve, 
as evidenced by steady progress in improving fleet manning and 
closing gaps at sea. Even as we grow the Navy at an aggressive 
pace, we still have work to do, and our success is directly 
tied to our collective commitment to consistent and full 
funding.
    Finding the right people is as important as making numbers. 
The war for talent is real, and competition is increasing. We 
continue to make our overall recruiting goals--the highest in 
decades--mostly due to our recruiting transformation efforts, 
innovative use of social media, and by shifting our ``Forged by 
the Sea'' advertising campaign predominantly to the digital 
markets. A combination of our Sailor 2025 programs, surgical 
use of retention bonuses aided by predictive analytics, and 
other policy levers resulted in 2018 showing the largest 
enlisted retention improvements in a decade. This is critical, 
as it has allowed us to begin to establish the deep bench of 
experienced journeymen needed to develop that next generation 
of masters.
    Despite the overall improvements in retention, we continue 
to face challenges in a few specific fields: nuclear, aviation, 
cyber, Navy special warfare, and advanced electronics. Our 
Sailor 2025 initiatives continue to expand and get high marks 
from our sailors. This program will continue to be a critical 
force multiplier going forward. The underlying transparency and 
the flexibility it provides directly and positively impacts our 
sailors' stay Navy decision.
    We greatly appreciated the increased DOPMA [Defense Officer 
Personnel Management Act] flexibility this committee championed 
in the fiscal year 2019 National Defense Authorization Act. We 
are already putting each of the new authorities to work, and we 
look forward to reporting our successes to you in the near 
future. But as important as the programs themselves is the 
manner in which we deliver our personnel services. There's a 
saying: ``You recruit a sailor, but you retain the family.'' 
Although we enjoy many excellent benefits because of the great 
work you do here, sailors and their families still live with 
less than they deserve in some cases. Sailors should be able to 
count on the correct and reliable pay all the time. We ask them 
to move frequently, a tough thing for families to do. We need 
to make it as seamless as possible for them, take away the 
avoidable frustrations by making the process simple, reliable, 
and customer service-friendly. That's what it'll take to show 
that we truly care and that we value their service as well as 
what they bring to the fight.
    Our Manpower, Personnel, Training, and Education (MPT&E) 
transformation efforts get at this exact point. Our last 
several years of efforts were spent setting the foundation to 
get to the finish line, and in 2018 we began launching the 
first of many new capabilities into the hands of our sailors. 
This past September, we launched MyNavy Career Center, 
delivering enhanced 24/7 personnel, pay, and training customer 
service, just like a modern banking or insurance call center. 
That call center exceeded industry benchmarks for customer 
service its first week of operation, and it continues to do so 
today. MyNavy Portal is our new, online one-stop personnel 
shop, and it offers a multitude of self-service options 
including online knowledge tools and a rapidly-expanding set of 
HR transactions, freeing up time for sailors to focus on war-
fighting missions and families.
    In January, we began the move to MyNavy Portal Mobile, 
piloting use of commercial cloud systems without use of their 
Common Access Card. By the end of this calendar year, our 
sailors will be doing most of their personnel business from 
their smartphones, and their pay issues will be largely a thing 
of the past. The admin associated with a permanent change of 
station move will be an afterthought so that families can 
concentrate on what matters. Challenges remain, and we still 
have a great deal of work to get to where we need to be if we 
are going to be truly competitive, but we are on a good path.
    I thank you for your support of these efforts and for your 
unwavering commitment to the men and women of the United States 
Navy and their families, and I look forward to continuing our 
partnership and to your questions. Thank you.
    [The prepared statement of Admiral Burke follows:]

           Prepared Statement by Vice Admiral Robert P. Burke
                              introduction
    Chairman Tillis, Ranking Member Gillibrand, and distinguished 
Members of the Personnel Subcommittee, thank you for the opportunity to 
appear before you today to discuss our Navy's most important strategic 
asset, our people.
                     ready and capable global navy
    For over 240 years, the U.S. Navy has been a cornerstone of 
American security and prosperity. In an increasingly globalized world, 
the Nation's security is ever more dependent on the Navy. People are 
the strength behind every organization--the talent in our workforce is 
our most critical differentiator in a world complicated by numerous 
security threats. Today's workforce is very different from that of 
previous generations, changed by national trends in family, education 
and work dynamics. We are building a larger fleet with new operating 
concepts, which requires people of diverse backgrounds and experiences, 
critical thinking skills, and the mental agility to operate across the 
spectrum of change that lies ahead while addressing the needs of the 
modern workforce, including an innovative personnel system, equally 
agile and flexible, and ready to meet the challenges and uncertainty of 
a great power era.
    To compete for talent and dominate in the maritime domain, we must 
apply cutting-edge human resources management practices and technology, 
and as importantly, continue our efforts to become a customer-
experience-driven organization that shows, through action, that we 
value sailors and their families. We must consistently take care of 
them as they endure lengthy deployments, often in harm's way, and with 
prolonged family separations. Sailors deserve and rightly expect to be 
treated as valued members of the team, or they will go elsewhere. All 
of those antiquated things we ask sailors and their families to endure 
about today's industrial-age systems send a signal that we do not value 
them as intelligent technology-oriented members of the Navy family. To 
remain a ready and capable global Navy, we must complete ongoing 
efforts to transform the Navy personnel system, as soon as possible.
                          competing for talent
    Economic trends have a significant influence on the workforce. 
Under good economic conditions, America's youth have more options at 
their disposal, challenging Navy's ability to meet recruiting 
requirements as potential candidates explore alternative employment 
opportunities. This past year, the U.S. economy experienced its 
strongest growth since the recession of 2008, resulting in significant 
expansion of employment opportunity in an ever-tightening labor market. 
National forecasts predict regional labor shortages in the working-age 
population among critical occupational categories, e.g., computers, 
mathematics, and healthcare. Economic trends reflect the difficulty 
private sector employers are experiencing in filling job vacancies. The 
proportion of firms with unfilled jobs, and the proportion of vacancies 
for which there are few or no qualified job applicants, have increased 
to historically-high levels. The number of employees choosing to leave 
their jobs has also escalated, making private sector retention 
increasingly difficult.
    The labor market, especially among blue collar and service 
employees from which we draw most of our enlisted workforce, is 
experiencing extremely low unemployment and high wage growth. That 
segment of the workforce is declining as increasing numbers of youth in 
our target market attend college. Our competitive pay and benefits 
package may be the most significant factor buffering us from the 
impacts of this shift in the economic environment. Additionally, the 
demographic diversity of the workforce is increasing. These 
environmental factors are the foundation for understanding our 
workforce and how to manage talent. Labor market conditions may entice 
sailors in certain critical skills to leave for the civilian job 
market. So, through predictive analytics, we are taking preemptive 
action to retain key labor skills by adjusting enlistment and retention 
bonuses ahead of need. We have also increased the number of recruiters 
and enhanced our marketing and advertising efforts through our new 
``Forged by the Sea'' brand and a digital recruit prospecting strategy.
                     end strength and budget growth
    The Navy is recruiting and retaining the talent needed for our 
growing fleet, and Sailor 2025 and MPT&E transformation efforts vital 
to delivering and sustaining The Navy the Nation Needs. Our Navy 
personnel team plays a pivotal role in executing the direction outlined 
in the new National Defense and National Military Strategies, 
particularly in ensuring readiness and lethality, and reforming 
business practices and systems to achieve greater performance and 
affordability. Design 2.0 for Maintaining Maritime Superiority, 
announced in December, details Navy's implementation plans in support 
of these strategic documents.
    We are arming our talented workforce with a modernized, agile and 
flexible personnel system, ready to meet the challenges and uncertainty 
of an era of emerging great power competition. We are growing our ranks 
to support shipbuilding, modernization, and aircraft procurement 
authorized in the National Defense Authorization Act for fiscal year 
2018 (FY18 NDAA), as we work towards building the Navy the Nation 
needs. Sustaining the larger Fleet requires continued investment in 
people and reliable steady funding. We are aggressively working to 
complete the MPT&E transformation effort to simplify management and 
curtail personnel costs for Navy military manpower. Similarly, our 
Sailor 2025 initiatives are critical to recruiting the best sailors up-
front. To accomplish this mission, we will offer better talent-
matching, greater career flexibility, modernized and portable training 
delivery, better life/work balance, and pay and incentives that keep 
pace with market forces. These factors will lead to higher retention 
and a leaner, more sustainable personnel footprint.
                       enlisted force management
    MPT&E transformation has delivered initial capability into the 
hands of sailors and their families, heralding a new era in Navy 
personnel management that offers world-class customer service. We are 
demonstrating that we value sailors and their families by designing 
every personnel process and policy with a sailor-centric approach.
    We have implemented several initiatives to address enlisted fleet 
manning shortfalls, including adjusting High Year Tenure (HYT), 
increasing enlisted accessions, modifying Physical Fitness Assessment 
(PFA) separation policy, and aligning sea tours with service 
obligations. We established a new distribution policy to improve 
supervisory manning levels at sea and other operational units by 
transferring 1,100 chief petty officers to operational units and 
restored the Sailor Early Return to Sea (SERTS) policy to reduce sea 
duty vacancies in pay grades E4-E9. Our Targeted Reentry Program (TRP) 
pilot identifies select sailors for expedited return to Active Duty by 
eliminating burdensome reentry processes, enhancing Active and Reserve 
component permeability. New pilot programs influence sailors to stay 
Navy, through an Advancement-to-Vacancy Selection Board that spot 
advances enlisted sailors into priority billets, and by offering a 
performance-based Selective Reenlistment Bonus premium for sailors in 
certain ratings who meet key performance marks.
Enlisted Recruiting
    Over the past 2 years, we increased our annual enlisted accession 
goal by approximately 5,000 recruits, to meet growing fleet manning 
requirements. We achieved 100 percent of our Active component (AC) 
accession goal in fiscal year 2018. We have now met the goal for 137 
consecutive months. We fell short in Reserve component (RC) non-prior 
service and prior service accessions, and Active and Reserve New 
Contract Objective (NCO). Record AC retention means fewer separating 
sailors available to affiliate in the Selected Reserve contributing to 
slight RC under-manning. While manageable, this shortfall is indicative 
of the changing environment.
    We are improving the efficiency and effectiveness of our recruiting 
organization through realignment, transformation, workforce 
improvements, and policy reform. ``Street to Fleet'' has been realigned 
under the Force Development pillar, led by commander, Naval Education 
and Training Command, creating synergy and unity-of-effort throughout 
the recruiting and training pipeline. This allows us to better identify 
talent needs and performance indicators up-front, reducing attrition 
and increasing retention, thereby lowering the demand for new recruits. 
We are focusing on talent acquisition while aligning our workforce 
based on individual skill sets to maximize productivity. In fiscal year 
2018, we transitioned four legacy Navy Recruiting Districts (NRD) into 
Navy Talent Acquisition Groups (NTAG) and subordinate Talent 
Acquisition Onboarding Centers (TAOC). This new model eliminates the 
``middle layer'' of the NRD and associated overhead and bureaucracy, 
while improving overall recruiter performance output by 25 percent.
    We are streamlining processes, through digital improvements in 
interactions with the civilian population and processing new leads, and 
we began a targeted and digital-focused marketing and advertising 
campaign under our new brand ``Forged by the Sea.'' Digital prospecting 
allows recruiters to leverage messaging tools on the Navy.com website 
and other social media to start initial conversations with prospective 
recruits, increasing the number of recruiting prospects, and reaching 
diverse markets, while lowering costs-per-lead--the most efficient 
marketing and advertising campaign in Navy's history.
    We added 200 recruiters in fiscal year 2018 by mobilizing Reserve 
sailors, and will add 200 more in fiscal year 2019 while extending over 
400 sailors on recruiting duty for 6 to 12 months. We increased 
incentive pay for top-performing recruiting teams and advancement 
opportunities for top-performing sailors, and are working on a plan to 
advance high-performing sailors who volunteer for recruiting duty. We 
increased the amount, number, and types of enlistment bonuses and 
tailored packages to a prospective recruit's needs to more effectively 
and efficiently target incentives.
    We eliminated obsolete accession policies and improved others that 
excluded a potential source of talent. We expanded opportunity by 
aligning Armed Forces Qualification Test scores and age limits with the 
other Military Services and contemporized certain medical waiver 
criteria based on societal norms (e.g., ADHD [attention deficit/
hyperactivity disorder], eczema, allergies). These types of changes 
resulted in nearly 8,300 additional sailors in fiscal year 2018, who 
otherwise would not have been able to serve, or who were influenced to 
join by greater job opportunities.
    The net effect of these changes, most of which originated with 
deck-plate recruiters, has been staggering. The table below compares 
the difference in recruiter force size (boots on ground recruiters) and 
budgets, for fiscal year 2018 and fiscal year 2008, the last time we 
had an Active component enlisted force recruiting mission of this size. 
What is particularly noteworthy is that, despite significantly less 
funding, the Navy Recruiting Team made the fiscal year 2018 goal by May 
2018, middle of the third quarter.
      
    
    
      
Enlisted Retention
    Retention of every capable sailor remains a vital element of our 
growth strategy. We increased retention across all pay grades in fiscal 
year 2018, by applying a range of force management tools, and are 
maximizing retention efforts for proven performers to meet growing 
mission requirements. A fairly steep growth trajectory imposes some 
challenges for all ratings and skills. While overall enlisted retention 
in fiscal year 2018 was the highest seen in many years, critical skill 
communities, such as nuclear field, special warfare, advanced 
electronics, aviation maintenance, and information technology require 
focused retention efforts including targeted reenlistment bonuses. 
Special and incentive pays continue to play a vital role in retaining 
sailors in high-risk, high-demand, and/or high-investment skill sets 
and we are proactively managing force structure growth to man new units 
to operational requirements. Monetary incentives remain an integral 
part of our retention strategy, including our new pilot program that 
adds a merit-based component to enlisted retention bonuses.
    We are refining force management policies by reducing the number of 
circumstances in which commanding officers must make individual force 
management decisions, while expanding sailor choice for reenlistment or 
lateral conversions into other career fields. Efforts to date have 
yielded positive retention results, although some, e.g., easing High 
Year Tenure gates, offer immediate gains that will decrease over time. 
We have also expanded reenlistment and rating conversion opportunities, 
resulting in unprecedented retention and numbers of conversions under 
the Reserve component to Active component program. Shortfalls among 
high-demand critical skills in fiscal year 2018 were mitigated through 
conversion of 1,163 Reserve sailors to the Active component.
                        officer force management
    Competition remains keen as we continue using every force 
management lever to recruit top talent into our officer corps, train 
them with cutting-edge technology and techniques, and retain their 
expertise in which we have heavily invested, to preserve our 
competitive advantage in the maritime security environment. In addition 
to our Fleet Scholars Education Program (FSEP), Tours with Industry 
(TWI), and merit-based retention incentives, we immediately began 
development of programs to implement officer personnel management 
reforms enacted in the John S. McCain National Defense Authorization 
Act for fiscal year 2019, including:

      expansion of constructive service credit to recruit 
civilian candidates with education, leadership, and experience 
credentials for leadership roles in cyber and engineering duty officer 
fields,

      expansion of spot promotion opportunity to designated O-5 
and O-6 billets,

      executing merit promotion authority to incentivize top 
performers,

      retention of certain control grade officers with targeted 
skills in aviation, acquisition, engineering duty officer, and attaches 
beyond traditional statutory limits,

      relaxation of the requirement that original appointments 
be granted only to individuals able to complete 20 years commissioned 
service by age 62.

    Beginning with the fiscal year 2021 promotion board cycle, we plan 
to exercise promotion deferment authority to afford greater flexibility 
to top performing officers whose competitiveness might otherwise suffer 
due to participation in career-broadening and education opportunities 
encouraged by the Navy, e.g., Rhodes and Olmsted Scholars, and Tours 
with Industry. We appreciate congressional support for enactment of 
these provisions and look forward to updating you on our progress as we 
leverage these vital transformational force management tools.
Officer Recruiting
    We continue to see strong interest in commissioning opportunities 
through the U.S. Naval Academy (USNA) and Naval Reserve Officers 
Training Corps (NROTC) program, as the number of highly qualified 
applicants vastly exceeds the number of available appointments. We 
continue to attract the finest applicants and graduate well-rounded, 
technically competent leaders for commissioned naval service. While 
overall officer accession goals were met in fiscal year 2018, the 
market continues to be challenging in certain designators, e.g., Judge 
Advocate General's Corps within the Active component, and Medical Corps 
in the Reserve component.
Officer Retention
    While officer retention is sufficient to meet milestone 
requirements in most officer communities, meeting our demand signal 
among aviation warfare officers in specific type/model/series 
platforms, nuclear-trained surface warfare officers, submarine 
officers, and naval special warfare (NSW), specifically Navy SEALs 
[sea, air, and land teams], remains challenging. We continue to apply 
and refine a combination of monetary and non-monetary incentives to 
address retention among these groups.
    Naval aviation's inventory and accessions (tactical, maritime, and 
rotary wing combined) remain sufficient to meet operational 
requirements. However, declining pilot retention in some Active and 
Reserve communities, especially strike fighter (VFA) and electronic 
attack (VAQ), continues to present serious challenges to aviation long-
term health. Low affiliation of maritime patrol (VP) aviators due to 
platform transition uncertainty, and high turnover rates within Fleet 
Logistics (VR) caused by commercial airline hiring, remain a concern in 
the Reserve component. Challenges in retaining mid-grade and senior 
aviators continue to be primarily rooted in lack of flight hours, 
tactical training, and progression of qualifications associated with 
aircraft material readiness challenges, quality of life dissatisfiers, 
especially in non-fleet concentration areas, and the perception of a 
broadening pay gap with the commercial airline industry.
    Aviators seek more career path flexibility and opportunities for 
personal and professional development, and flexible, merit-based 
monetary incentives competitive with the civilian sector. In March 
2018, we announced substantial across-the-board improvements in 
aviation bonuses for department head and command, and aviation 
incentive pay, applying a holistic approach that synchronizes targeted 
increases in flight pay and bonuses in a mutually-supportive fashion to 
coincide with major aviation leadership milestones. These changes show 
early promise in improving retention and significantly increased take-
rates in areas such as the command bonus.
    We have expanded access to career-enhancing opportunities to 
improve flexibility in the naval aviation career path, e.g., graduate 
school and fellowships, Tours with Industry, and the Career 
Intermission Program. This past year, we leveraged authorities enacted 
in the fiscal year 2019 NDAA and implemented the Professional Flight 
Instructor (PFI) Program that allows select pilots and naval flight 
officers to serve continuously as flight instructors as an alternative 
to the traditional sea/shore rotational career path, affording greater 
assignment stability and rewarding experiences through developing our 
newest naval aviators.
    The combination of existing aviation-specific incentives and Sailor 
2025 officer personnel reforms are expected to slow, and ultimately 
reverse, the trend of aviators choosing to leave the Navy after their 
initial commitment. Sustained support for readiness enabler accounts, 
including flight hour and aircraft spare parts accounts, is critical to 
improving the quality of aviation service in the near term. This 
support, coupled with personnel initiatives, should address most of the 
critical issues causing aviators to leave the Navy.
    We are refining the NSW Officer Bonus to increase take rates and 
improve retention, and expanding eligibility to alternate career paths 
to improve inventory at pay grades O-4 and O-5. We are also 
consolidating Jump, Dive, and Demolition pays into a single Skill 
Incentive Pay.
    Submarine and surface warfare (nuclear) communities are using 
monetary and non-monetary incentives to retain their best talent. 
Monetary incentives include retention bonuses for officers willing to 
commit early to future service and special duty pays for challenging 
nuclear billets. Recent changes to conventional (non-nuclear) surface 
warfare officer department head retention bonuses, among our first to 
add merit components, continue to provide adequate retention.
                              sailor 2025
    Attracting and retaining the best sailors in an increasingly 
competitive talent market requires continued flexibility and 
transparency in policies and practices. Sailor 2025, a dynamic set of 
over 50 initiatives, is a roadmap to improve personnel programs by 
providing choice and flexibility. Sailor 2025 is modernizing personnel 
management and training policies and systems to more effectively 
identify, recruit, and train talented people and manage the force while 
improving warfighting readiness. The modern, innovative, information 
technology infrastructure we are building will improve how we recruit, 
train, and retain talent, more accurately and efficiently assign 
talent, better design and account for compensation packages, and 
generate a system that affords greater flexibility and permeability. 
Sailor 2025 is built on a framework of three pillars, a modern 
personnel system, a career learning continuum with modernized delivery 
methods, entitled Ready, Relevant Learning (RRL), and career readiness, 
that is shaping resilient, tough sailors bolstered by a family support 
network, which fosters a career of service.
Personnel System Modernization
    The first pillar, ``Personnel System Modernization,'' is wholesale 
modernization of our entire personnel system. We are creating flexible 
policies and additional career choices and empowering commanding 
officers with tools to retain the best and brightest sailors. We 
continued to implement programs in fiscal year 2018, including primary/
secondary caregiver leave, O5/O6 Selective Early Retirement Board, 
Targeted Re-entry, and Reserve component (RC) to Active component (AC) 
Fast-Track programs. We are also expanding ``Detailing Marketplace'' 
pilot initiatives, overhauling the performance evaluation system, 
modernizing advancement examinations coincident with rating 
modernization and achieving greater AC-RC permeability.
Ready Relevant Learning
    The second pillar, ``Ready, Relevant Learning'' (RRL), is a 
holistic approach to training our career enlisted force, which will 
accelerate learning for faster response to rapidly changing warfighting 
requirements in increasingly dynamic operational environments. Legacy 
training does not take full advantage of existing and emerging 
technology for knowledge-transfer. Skills acquired during accession 
pipeline training atrophy due to delays between receipt of training and 
on-the-job performance, increasing the burden on the fleet and 
potentially compromising operational readiness. We are using the 
science of learning to transform the current training model to modern 
training solutions delivered at the point of need, better prepare 
sailors to operate and maintain equipment at its technological limits, 
and meet rapidly evolving warfighting requirements. This will occur 
across three lines of effort: (1) career long learning continuum, (2) 
modern delivery at the point of need, and (3) integrated content 
development.
    We are approaching the end of the first stage of the career long 
learning continuum line of effort, known as Block Learning, which 
divides existing accession-level training content into smaller blocks 
moved to real-world points of need in a sailor's career, shortening 
initial accession training and sending sailors to the fleet sooner. 
Block Learning uses existing content as we reengineer training to meet 
future RRL training continuum objectives. We have completed Block 
Learning analysis and approved changes for all 54 ratings--44 executing 
training in block delivery construct, 3 projected to implement in 
fiscal year 2019, and 7 designated to move directly into the second 
line of effort, i.e., modern delivery at the point of need.
    The second RRL line of effort leverages emerging learning 
technology to more efficiently deliver training at the point of need, 
i.e., the waterfront or operational unit. Applying science of learning 
principles makes training more effective, efficient, and available by 
leveraging technology to provide online training tools, including 
virtual reality and interactive ``apps,'' at the time and place needed, 
thereby reducing the necessity and costs of returning sailors to 
retrain at legacy brick-and-mortar schoolhouses. We have completed 
modernization requirements-development for 2 ratings and 23 more are 
scheduled for completion in fiscal year 2019. Eighteen additional 
ratings are undergoing requirements with development to be delivered at 
a later date. We continue to identify and align IT capabilities to 
support delivery of modernized content ashore and afloat. We are on 
track to deliver modernized content in September for our first rating, 
Operations Specialist, to be followed by two other ratings in fiscal 
year 2020.
    We have entered the third line of effort: integrated content 
development, solidifying the fleet's role in defining training 
requirements and validating analysis that aligns training content and 
delivery methods with fleet needs. An RRL Integration Board provides a 
framework to offer strategic guidance, approve major implementation and 
phasing decisions, and address resourcing requirements. An RRL Training 
System Program Manager (TSPM) staff is responsible for planning and 
acquisition of RRL training content and hardware and monitors program 
cost, schedule and performance. These governance and program oversight 
initiatives align stakeholder efforts and resolve seam issues to ensure 
program success.
Career Readiness
    The third pillar, Career Readiness, will remove barriers to 
continued service and improve work-life balance, health, and wellness. 
We will enhance career readiness by better developing leaders and 
removing obstacles that negatively influence a sailor's decision to 
stay Navy. We are more powerful and lethal when we leverage the talents 
and strengths of the workforce and instill an environment in which all 
are valued and respected, a force multiplier. We have incorporated the 
One Navy Team concept into leader development to make our force more 
diverse, inclusive, resilient and competitive, equipped, and ready to 
deter war and protect national security. In fiscal year 2018, we 
updated the Naval Leadership and Ethics Center curriculum in support of 
Navy-specific unconscious bias education and training.
         manpower personnel training & education transformation
    This past year, we made significant headway in our transformation 
journey to holistically modernize the MPT&E enterprise. MPT&E 
transformation is vital to combat current and emerging threats, deliver 
global lethality, and maintain maritime superiority. Ultimately, Navy 
will benefit from a more agile, adaptive, and better-trained force, 
ready to meet an increasingly complex mission. We achieved critical 
milestones toward our vision and future state.
    In September, we launched MyNavy Career Center (MNCC) beta, 
delivering enhanced personnel, pay, and training customer service. 
Sailors access tiered-service delivery with 24/7 customer support for 
phone and email queries and transaction requests. MyNavy Portal self-
service options offer online knowledge tools and a select set of HR 
[human resources] pay and personnel transactions, freeing up time for 
sailors to focus on warfighting missions and families. This year, we 
will achieve another MNCC milestone with our Initial Operation 
Capabilities (IOC) launch, which will bring new customer relationship 
management and telephony technology combined with numerous process 
improvements. Ultimately, sailors and families will be able to conduct 
HR pay and personnel business online in the same secure manner in which 
they currently transact with banks and insurance companies.
    We established a Results Delivery Office (RDO) and assigned 
Business Design Owners (BDOs) to matrix our organization and accelerate 
transformation. This past year, RDO and BDOs partnered to identify 
opportunities to enhance the sailor experience and improve HR services 
to meet the needs of sailors and their families, including:

      an interactive, customized My PCS Checklist, and Lean 
Orders to improve the Permanent Change of Station (PCS) move 
experience, and a forthcoming PCS app for easier, smartphone access to 
orders, submission of travel claims and other improvements;

      a Performance Evaluation transformation coaching tool to 
provide immediate performance feedback and clearer understanding of 
career development opportunities;

      a ``competition counter'' into Career Management System--
Interactive Detailing (CMS-ID) that provides greater transparency and 
helps sailors evaluate opportunities; and

      three prioritized solutions to provide additional 
opportunities and greater clarity in support of Credentialing, 
Apprenticeships, and Voluntary Education (CAVE).

    Progressing towards a single, secure Navy Pay and Personnel (NP2) 
system, MPT&E Field Test 1 (FT1) prototype achieved its objective of 
demonstrating 60 percent of a sailor's ``Street-to-Fleet'' HR 
requirements using a Commercial-off-the-Shelf (COTS) system with no 
more than 10 percent customization. We launched a Rapid Prototype Pilot 
(RPP) to begin building a Treasury Direct Disbursement (TDD) and pay 
capability for Active and Reserve sailors by December 2020.
    Completing our new operating model, we stood-up an Enterprise 
Support group and developed an MPT&E Comprehensive Analytics Strategy 
and Roadmap that defines the steps needed to integrate state-of-the-art 
analytic methods into MPT&E enterprise business processes. This will 
improve our ability to man the fleet with the right sailor, in the 
right place, at the right time, and provide leadership with modern, 
predictive, and prescriptive analytics tools.
    Delivering transformed, 21st Century, worldwide, 24/7 personnel 
services and training to Active and Reserve sailors and their families 
is incumbent on the ability to operate and interact in the commercial 
cloud. In 2018, working closely with DOD cyber security experts, we 
began prototyping numerous cloud-based capabilities, to provide a full 
production, secure, MPT&E system-of-systems in a commercial cloud 
environment.
    This year of execution and progress, combined with ongoing Sailor 
2025 and Ready Relevant Learning efforts, has moved us from planning to 
delivery of new capabilities and solutions, steering MPT&E to a more 
sailor-focused organization. Sailors are beginning to see the benefits 
of improved transparency, connectivity, and customer service. Fleet 
leaders are beginning to see faster translation of personnel and 
training needs to action, with access to more accurate data about how 
those needs are being met. I am confident our proven methodology and 
significant investment in stakeholder engagement with key partners will 
enable us to continue gaining velocity in transformation in the coming 
year.
                taking care of sailors and navy families
Family Framework/Support Programs
    The Navy Family Framework reinforces the role families play in 
mission success and enhances support for families by improving support 
programs, improving communications and spouse training, expanding our 
education network, conducting meaningful command leader engagement and 
reinforcing family connection with the Navy and its core values of 
honor, courage, and commitment.
    Informed by feedback from world-wide spouse engagement sessions, we 
are developing a mobile application to identify, consolidate, and 
standardize information into one authoritative source. We also 
conducted 36 Live Well webinars, available online, on managing the 
unique demands of the military lifestyle, while installation commanders 
led over 150 all-hands calls and 100 town hall meetings to engage Navy 
families. A Governance Board was established to advise leadership on 
policy and efforts to ensure ready and resilient families. The Family 
Employment Readiness Program assists military spouses in obtaining 
employment and maintaining a career, particularly as they are impacted 
by changes in the economy, labor market conditions and military 
lifestyle. Navy is currently developing plans for implementing 
reimbursement of spouse licensure fees authorized in the fiscal year 
2018 NDAA.
    Lack of accessible, affordable childcare continues to be an 
important family readiness issue. Despite current shortfalls, we 
continue to invest heavily in meeting the childcare needs of sailors to 
ensure they are always mission ready, aware that their families are 
well cared for. We have added 7,000 childcare spaces in the last decade 
and have extended hours of operation where needed. 
MilitaryChildCare.com is operational, allowing families to view 
available military childcare world-wide, request childcare at any DOD 
location and obtain anticipated placement time based on the family's 
priority. It will become a ``one stop shop'' for available childcare 
resources, raising awareness of available resources, enabling a family 
to better plan for a move, and allowing for earlier placement on 
waiting lists, thereby reducing wait times during transition. We are 
exploring partnerships with organizations to expand childcare 
availability, which would benefit other organizations as well as Navy 
families in fleet areas with long waiting lists. Because most sailors 
don't reside near extended family, the family network used by the 
general population is unavailable to sailors. There is a nationwide 
shortage of childcare, and a projected 1.4 million civilian space 
shortfall in locations where most Navy demand resides.
    Navy morale, welfare, and recreation programs provide core fitness 
and recreation for sailors and families to enhance quality of life and 
encourage life-long positive and healthy leisure pursuits. As part of 
Sailor 2025, we extended hours of operation at fitness centers and 
child development centers in response to demand from sailors and 
families, which positively influences decisions to stay Navy and 
improves our ability to meet fleet readiness requirements.
    To make the Navy a truly family-friendly service, we have to do 
much more. Career paths that support life-work balance over the long-
haul, in part made possible by recently enacted officer personnel 
management reforms, will be part of the mix. Finally, Navy culture must 
change. We must take the long view where a sailor's family needs are at 
stake. This culture change is being hammered home through a combination 
of training at officer and enlisted leader development courses and a 
number of policy changes.
Culture of Excellence
    The Culture of Excellence campaign is an integrated, holistic 
approach at preventing destructive behaviors, from suicide and sexual 
assault to excessive use of alcohol, leveraging behavioral science and 
analytics, and aimed at promoting signature behaviors rather than 
focusing on behavior at the point of failure. It focuses on behaviors 
that reinforce mission effectiveness by instilling toughness, trust, 
and connectedness to achieve warfighting excellence. Connectedness, 
mental toughness, and trust that promote healthy life choices and help-
seeking behavior, and skills that facilitate them, e.g., communication, 
conflict resolution, resiliency and problem-solving skills, guide our 
primary prevention efforts targeting three key focus areas:

      Defining problems using human factors analyses and 
predictive data analytics to understand sailor needs and providing 
necessary support. For example, we are beta-testing a Commander's Risk 
Mitigation Dashboard (CRMD) prototype to assess unit readiness levels 
and predict future readiness and performance. We continue to expand use 
of embedded mental health providers, deployed resilience counselors, 
and chaplains to support leaders in addressing identified challenges. 
Use of non-uniformed counselors which serves to de-stigmatize 
counseling are showing great promise.

      Identifying primary prevention touchpoints for behavioral 
learning across the career continuum using avatar-based training 
adapted for sailors at career milestones, or when facing life changes 
or other behavioral health challenges.

      Implementing evidence-based policies, programs, 
practices, and processes that address the full spectrum of behaviors, 
are continuous and balanced, and supported by Navy leadership. We are 
conducting a pilot that targets sailor behavioral health e.g., 
Rational-Thinking and Emotional-Regulation through Problem-Solving 
(REPS) Training, at Recruit Training Command, which promotes mental 
fitness by addressing problematic thoughts, emotions, and behaviors to 
help cope with emotional distress.

    Our Culture of Excellence Governance Board, led by the Chief of 
Naval Operations, meets regularly to advance priorities, align 
resources, and promote a full spectrum of positive behaviors to 
maximize sailor potential. Proven programs, such as the Navy Alcohol 
and Drug Abuse Prevention program, continue to support enhanced fleet, 
family and sailor readiness, while the ``Keep What You've Earned'' 
campaign fosters improved decision-making regarding alcohol 
consumption, offers alternatives and educates about the consequences of 
poor decision making.
                               conclusion
    The Secretary of the Navy has established priorities that center on 
people, capabilities, and processes, which we will achieve through 
speed, value, results, and partnerships. Readiness, lethality, and 
modernization drive these priorities. The Navy the Nation Needs demands 
that we produce outstanding leaders and teams who learn and adapt 
faster than our adversaries. We are charged with ensuring that every 
sailor and unit maximizes their potential and is ready for decisive 
combat operations. MPT&E transformation and Sailor 2025 are the primary 
vehicles by which we are delivering this mandate. I look forward to 
working with you as we continue shaping our Navy to meet these 
challenges. On behalf of the men and women of the United States Navy, 
thank you for your unwavering support.

    Senator Tillis. Thank you, Admiral Burke.
    General Kelly.

 STATEMENT OF LIEUTENANT GENERAL BRIAN T. KELLY, USAF, DEPUTY 
        CHIEF OF STAFF FOR MANPOWER AND RESERVE AFFAIRS

    Lieutenant General Kelly. Chairman Tillis, Ranking Member 
Gillibrand, and distinguished Members of this Subcommittee, 
thank you for the opportunity to appear before you today to 
talk about our airmen--Active, Guard, Reserve, and civilian.
    America's airmen--your airmen--remain ``Always There'' as 
part of the joint team providing global vigilance, reach, and 
power in the defense of the Nation. The Air Force's top 
priority is to build a lethal and ready Air Force capable of 
executing our National Defense Strategy assigned missions. At 
its core, building a lethal and ready Air Force is about 
people, making our airmen our most important asset.
    We appreciate the support that you provided in the fiscal 
year 2019 National Defense Authorization Act for continued end-
strength growth to 690,500 Total Force airmen. This growth is 
accelerating our readiness recovery and will provide lethal 
airmen to protect and defend our Nation.
    This past year, we focused the resources you provided on 
our front-line pacing units, the 204 operational squadrons that 
are required in the opening days of a peer fight. Prioritizing 
the resources you provided has us on track to have 80 percent 
of the pacing units fully ready by the end of fiscal year 2020, 
approximately 6 years faster than we originally projected.
    Readiness is foremost about having the right number of 
capable airmen. Despite an increasingly competitive market for 
talent, our Active Duty, Reserve, and Air National Guard are 
all on track to meet our overall fiscal year 2019 recruiting 
goals, totaling nearly 57,000 new airmen.
    Given the increasing recruiting challenges, we also 
appreciate the Congress' support of special and incentive pays, 
which are a critical component, complemented with nonmonetary 
incentives to maintaining and improving retention. The fiscal 
year 2019 President's Budget included $1.2 billion for special 
and incentive pays, allowing the Air Force to retain highly 
skilled airmen. As you are aware, our aviators are one of our 
most stressed career fields. The Air Force ended fiscal year 
2018 with a total force pilot shortage of nearly 2,000, with 
slightly more than half of that shortfall falling within our 
fighter inventory. We appreciate the Congress' support for 
increasing the pilot annual cap and monthly incentive pays, 
which we believe had a positive impact.
    Besides monetary incentives, the Air Force is focused on 
improving the quality of life and quality of service. As one 
example, we added this year flexibility into our officer 
assignment process by leveraging technology through our new 
Talent Marketplace assignment matching system. We believe the 
increased transparency and improved member input will be a 
positive retention influence. In our vital enlisted force, we 
continue to make the system more agile, more transparent and 
simple, to focus on and drive performance. Two recent examples 
include the changes we made to our weighted airman promotion 
system and adjustments to our high year of tenure limits.
    The Air Force is also committed to transforming the way we 
develop, promote, and retain our officer corps. We thank the 
Congress for our increased DOPMA authorities we received this 
past year. We are in the process of utilizing both early 
promotion and constructive credit currently to fill inventory 
gaps and are working to incorporate several other new 
authorities that you provided as part of our overall talent 
management transformation.
    Our Air Force civilian employees stationed across the globe 
share the same responsibility to our Nation as the men and 
women in uniform. Having a high-quality force and being able to 
recruit and compete for top civilian talent is also essential 
to readiness. With your help, we also increased support to 
airmen and families to improve resiliency and retention. We 
increased funding to expand childcare for airmen on base to 
those needing expanded care outside of normal duty hours and to 
provide offset fees to support over 4500 children who use off-
base childcare.
    We are deeply committed to the prevention of interpersonal 
violence on all fronts. Sexual assault is a crime that 
negatively affects airmen and families, erodes unit cohesion, 
and violates the sacred trust we have to take care of airmen, 
America's sons and daughters. The Air Force remains steadfast 
in innovating, evolving, and strengthening our sexual assault 
prevention and response efforts through evidence-based 
approaches. Recent findings at our service academies continue 
to show that despite substantial efforts, we must do more. 
While these findings are both disheartening and frustrating, 
they are also unacceptable, and we remain fully committed to 
eradicating this negative behavior. While the vast majority of 
cadets and airmen adhere to our expectations for ethical 
behavior, there is no place in our academy or our Air Force for 
those who do not.
    We are also committed to achieving zero suicides, the 
leading cause of death among Active Duty airmen. We support a 
culture, and our programs are moving us to a place, where 
leaders at all levels reinforce the notion that seeking help is 
a sign of strength and airmen need not go it alone.
    Chairman Tillis, Ranking Member Gillibrand, and members of 
the subcommittee, thank you again for the opportunity to appear 
before you and represent our incredible airmen and their 
families. Your airmen stand ready and fully understand the 
responsibilities to the joint force and Nation. I'm honored to 
be here alongside my colleagues, and I thank you for your 
continued support and I look forward to your questions.
    [The prepared statement of General Kelly follows:]

        Prepared Statement by Lieutenant General Brian T. Kelly
                              introduction
    Chairman Tillis, Ranking Member Gillibrand, distinguished Members 
of this committee, thank you for the opportunity to appear before this 
committee to talk about our airmen, Active, Guard, Reserve, and 
civilian. America's airmen remain ``Always There'' providing global 
vigilance, reach and power to protect and defend our Nation.
                 building a lethal and ready air force
    Great power competition provides the central challenges to U.S. 
prosperity and security. To face these challenges, the United States 
Air Force must compete, deter, and win across the five priority 
missions of the National Defense Strategy:

      Defend the Homeland,

      Provide a safe, secure, and effective nuclear deterrent,

      Defeat a powerful conventional enemy, while we

      Deter opportunistic aggression, and

      Disrupt violent extremists in a cost-effective manner.

    To accomplish this, we must continue to develop and build a lethal 
and ready Air Force. At its core, building a lethal and ready Air Force 
is about people. Our airmen (military and civilian) and their families 
are our most important asset.
End Strength
    The Air Force appreciates the support for continued end strength 
growth to 690,500 Total Force airmen in the fiscal year 2019 National 
Defense Authorization Act. We are meeting our projections to reach the 
desired state across our Active and Reserve components. The growth you 
have authorized is accelerating our readiness recovery and will provide 
more lethal airmen to protect and defend our Nation today and tomorrow. 
This past year we focused the resources Congress provided on our pacing 
squadrons, the 204 operational squadrons required in the opening days 
of a peer fight. More than 90 percent of our pacing squadrons are ready 
to ``fight tonight'' with their lead force packages--the first airmen 
to deploy at the beginning of a conflict. Overall resourcing within our 
pacing units is up 24 percent. When we include their follow-on forces, 
these pacing squadrons are on track to reach 80 percent readiness 
before the end of fiscal year 2020, 6 years faster than originally 
projected. As our front-line squadrons meet their readiness goals, we 
are also working to ensure the remainder of our operational squadrons 
reach the 80 percent readiness mark by 2022.
    The National Military Strategy directs a balanced ``boxer's 
stance'' of military readiness, and our operational pacing squadrons 
form the clenched fist of American resolve. But a fist is nothing 
without the power of the body--our supporting squadrons--behind it. 
While readiness indicators are moving in the right direction and Active 
military manning in most squadrons averages 97 percent, manning across 
our supporting units and in some high demand areas remains at lower 
levels. Undermanned units create fragile readiness where units have 
single points of failure, higher operational tempos, and limit a 
commander's ability to mitigate readiness impacts caused by periodic 
non-availability of airmen. Without continued end strength growth, our 
gains in readiness will be slowed and the Air Force will find it 
increasingly difficult to compete, deter, and win against near-peer 
competitors and across a wide spectrum of priority missions.
    The Budget Control Act still threatens to disrupt the progress we 
are making. A return to sequestration would erase the gains we made 
over the last 3 years and inflict substantial damage to our programs. 
In 2013, in the wake of sequestration, we were forced to stand-down 
one-third of our combat flying squadrons. We cancelled large-scale 
exercises and lost over one million work-hours of depot maintenance. To 
maintain operational capability, we also reduced our total force size 
by nearly 30,000 airmen resulting in the loss of valuable experience. 
Recovery from these actions is lengthy, but your support over the last 
3 years has been extremely helpful. Any return to the Budget Control 
Act will not only arrest the gains we have made, but will also likely 
add to current readiness recovery timelines.
Recruiting and Accessing
    Readiness is first and foremost about having the right number of 
capable airmen within your Air Force. Today only 29 percent of 17 to 24 
year old men and women in the United States are eligible to serve and 
only one in eight have a propensity to serve in the military. Despite 
this, the Regular Air Force achieved its fiscal year 2018 enlisted 
(29,450) and officer (Line--4,039) accession goals. The Air National 
Guard achieved 92 percent of their enlisted goal (10,529), but met 
their end-strength target by exceeding their officer goal (968) and 
maintaining high retention. The Air Force Reserve achieved their 
combined enlisted and officer goal of 8,450.
    The fiscal year 2019 Air Force Active Duty enlisted recruiting goal 
is 32,300. Thus far, we have met 21 percent of the overall goal and 
have identified recruits with projected future dates for basic military 
training that will take us to 51 percent of the goal. The fiscal year 
2019 Air Force Reserve combined officer and enlisted recruiting goal is 
8,650 with 35 percent already met. The fiscal year 2019 Air National 
Guard combined officer and enlisted recruiting goal is 10,378 with 32.6 
percent already met. In summary, Active Duty, Reserve and Air National 
Guard are on track to meet overall fiscal year 2019 recruiting goals.
    While we have been able to meet most of our recruiting goals, we 
are keenly aware of a growing competition for talent and expect the 
recruiting environment to be more challenging. The Air Force is 
committed to improving how we recruit and prepare airmen to succeed. 
With your support, we have added 159 new recruiters and our budget for 
operating, advertising and marketing has increased by 85 percent since 
fiscal year 2017. To assist in predicting career interest for potential 
recruits, the Air Force uses a survey on its official website titled 
Air Force Work Interest Navigator (AF-WIN), which has generated over 
50,000 leads to date--an average of 460 surveys per day.
    We met and are on track to achieve our total recruiting goals, 
however, we have had challenges in some specific skill sets. For a 
number of years, we struggled to recruit significant numbers of airmen 
qualified for special warfare programs. This past year we established a 
new training group and new recruiting squadrons focused on critical 
warfighting career fields such as special warfare airmen, explosive 
ordinance disposal (EOD) and survival, evasion, resistance, and escape 
(SERE). So far this year, we have seen early success in meeting our 
monthly goals for special warfare airmen but have slightly missed our 
targets for EOD and SERE airmen in 3 of the last 4 months. We expect to 
make those goals up later in the year.
    We are fully committed to the integration of women into combat 
positions, have increased targeted marketing to further attract female 
recruits, and placed female cadre within these training units. Prior to 
2016, 99 percent of our Air Force's positions were already open to 
women to include flying combat aircraft, which opened in 1993. Since 
that time we have had multiple female fighter wing commanders, a female 
4-star combatant commander, and currently have a female 4-star 
commander at Air Mobility Command. Since January 2016, when we opened 
the last eight special warfare related specialties, 100 percent of Air 
Force occupations and positions have been open to women, including 
removing previous gender based assignment restriction for 22 closed 
positions serving with the Army/Special Operation Forces (SOF). The 
percentage of Active Duty women serving in both combat-related and 
flying roles is 13.7 percent (9,027). Finding qualified volunteers for 
special warfare career fields, both males and females, continues to be 
challenging. The training programs are demanding and require higher and 
broader levels of physical fitness to meet the demands of the 
occupationally specific, operationally relevant tests. The average 
historical attrition rates for both males and females ranges from 40-90 
percent depending on specialty; consequently, we do not foresee large 
numbers of females in operational units in the near term. To date, ten 
female airmen have entered into special warfare training but none have 
yet to qualify and graduate. Currently, we have one female in Tactical 
Air Control Party (TACP) training with a potential graduation date 
later this spring.
    We also appreciate the authority Congress provided allowing us to 
award constructive credit, which we are applying to recruit officers in 
very competitive cyber career fields. In our successful pilot program, 
we selected two highly skilled enlisted candidates who have cyber 
master's degrees. We recruited them from within the Air Force to 
expedite the assimilation of these candidates into the cyber warfare 
officer corps. Their experience, exemplary records, and top leadership 
recommendations all support use of constructive credit and allowed us 
to advance them to positions filling key holes in our officer 
inventory. We are working parallel efforts to recruit cyber talent from 
industry and academia using the same constructive credit provisions.
    Funding for enlistment and accession bonuses as well as 
scholarships are also key when competing for top talent. In the fiscal 
year 2019 President's Budget, Congress supported an increase of $18 
million in Reserve Officer Training Corps scholarship funding allowing 
us to offer additional scholarships for targeted skill sets in STEM 
[Science, Technology, Engineering, and Math] related career fields.
Retaining Airmen and Families
    While the Air Force is experiencing generally high retention rates 
in both the officer and enlisted corps--90 percent of enlisted Air 
Force Specialty Codes (AFSC) are stable or trending up on retention 
over the last 12 months with historical numbers closer to 80 percent, 
and 98 percent of officer AFSCs are stable or trending up versus a 
historical average of 90 percent--the aggregate success sometimes masks 
pockets of retention challenges. For our enlisted force, we have lower 
retention for cyber; space; nuclear security; maintenance in some mid-
to-high skill levels; intelligence, surveillance and reconnaissance 
(ISR); and special warfare among mid-to-high skill level airmen. For 
our officer force, retention continues to be challenging among our 
pilots, combat systems officers, some medical specialties, and has 
begun emerging in our air battle managers. These trends are generally 
more acute in our mid-grade officer ranks.
    We appreciate Congress' support of special and incentive pays which 
are a critical component, complimented with other non-monetary 
incentives, to maintaining and improving retention. The fiscal year 
2019 President's Budget included $1.2 billion for special and incentive 
pays allowing the Air Force to target critical skill shortages. These 
special and incentive pays assist in compensating airmen for hazardous 
duty or high demand skill sets critical to our warfighting excellence. 
With the existing competitive recruiting market, retention becomes even 
more essential to having a lethal and ready force.
    We are particularly grateful for Congress' support of aviation 
incentive and bonus pays. To ensure we are making the best use of our 
aviation bonus authorities, we continue to use a business case model 
targeting payments based on four main criteria: manning levels, 
retention trends, cost to train for a particular weapons system, and 
the length of time to train.
    The Air Force ended fiscal year 2018 with a total force pilot 
shortage of 1,937. Shortfalls in the fighter pilot inventory are the 
most acute. Aviation bonus take rates are important leading indicators 
of future retention rates. After 4 straight years of steady decline, 
the overall take rate for the aviation bonus stabilized and went up 
slightly from 44 percent in 2017 to 45 percent in 2018. The take rate 
for fighter pilots increased by 9 percent, from 35 percent to 44 
percent, and bomber pilots went up 7 percent, from 46 percent to 53 
percent. Unfortunately, we saw a decrease in our largest category, 
mobility pilots, where the take rate went down from 44 percent to 38 
percent. Overall we are below the retention target of 65 percent needed 
each year and within each pilot category to sustain a healthy 
inventory.
    Monetary incentives are one small piece of our retention portfolio. 
The majority of the retention portfolio is in fact non-monetary and is 
focused on improving quality of life, quality of service, and 
mitigating operational tempo. Earlier this year we expanded the high 
year of tenure limits for senior airmen, staff sergeants, and technical 
sergeants to retain technical skills and experience. We also reduced 
the number of forward deployed 365-day assignments by 20 percent from 
the last fiscal year and are projecting to reduce that number an 
additional 38 percent in fiscal year 2020, utilizing reach back or 
shortening tours to help stabilize the operational tempo for our 
airmen. We are also adding flexibility into the officer assignment 
process by leveraging technology to improve our assignment matching 
system.
    After researching industry best practices, we implemented an 
information technology solution known as ``Talent Marketplace.'' Talent 
Marketplace uses an algorithm, based on the Nobel Prize-winning 
National Medical Residency Matching Program, to assist in matching 
officers to available assignments. This algorithm takes into account 
the officer's assignment preferences and the hiring manager's ranking 
of officers being considered to produce a preliminary match.
    While Talent Marketplace provides an automated ``scientific'' match 
at the beginning of the process, it then assists the Air Force 
Personnel Center assignment teams in applying the ``art'' to finalize 
the process. This two-pronged process approach of ``science'' and 
``art'' assists with transparency in the assignment process and enables 
improved talent management. We are working Talent Marketplace 
expansions into our enlisted force, joint assignments, and for 
advertising and filling 365-day extended deployments. We believe the 
increased transparency and improved member input will be a positive 
retention influence.
    Having a lethal, agile, and flexible force, capable of winning in 
any environment, goes beyond solely the overall size of the force. It 
also encompasses looking after airmen's mental and physical well-being 
and ensuring we take care of their families so they can focus on the 
mission. Airmen must be able to withstand, recover, and grow in the 
face of stressors and changing demands.
  Exceptional Family Member Programs
    More than 34,000 total force airmen have dependents enrolled in the 
Exceptional Family Member Program. Because retention of these skilled 
airmen is critical to readiness, we are improving support to our 
program. We increased monthly respite care hours from 12 to 40 hours 
per child for more than 2,900 children. To help educate and provide 
information, we established a quarterly Facebook Live webcast 
connecting to more than 100,000 family members. We also formally 
trained 57 of 99 installation-level family support coordinators in 
fiscal year 2018 and will train the remaining coordinators in fiscal 
year 2019, all with an eye toward improving the quality of life and 
service among this population.
  Child and Youth Programs
    Airmen cannot be ready and effective if they are worried about 
their children. In fiscal year 2019, with Congress' support, we 
increased child and youth funding by $39.6 million for a total of 
$100.2 million to help ensure we continuously recognize and resource 
the child and youth program's impact on readiness and retention. With 
this additional funding, we are (1) expanding childcare for those 
needing childcare outside of normal duty hours, (2) providing fees to 
support 4,500 children annually who must use off-base childcare, and 
(3) funding youth resiliency camps. The funding increase also includes 
119 additional civilian childcare positions across the Air Force, 
supplies, closed circuit television repairs, and national youth 
partnerships such as Boys and Girls Clubs and 4-H. We still have a gap 
between available on-base childcare demand and capacity but have 
improved our ability to provide suitable alternate accommodation.
  Recharge for Resiliency
    Increasing the resiliency of our airmen and families is another key 
component to having lethal and ready airmen. Our Recharge for 
Resiliency Program, which provides airmen and families an outlet to 
decompress and adjust after returning home from deployment, continues 
to grow. In fiscal year 2019, we expanded Recharge for Resiliency to 
support the Chief of Staff's initiative to improve squadron vitality. 
The expansion program provides unit leaders the ability to deliberately 
plan activities designed to improve unit cohesion, resilience and 
readiness using Morale, Welfare, and Recreation capabilities 
specifically linked to desired cohesion effects. We will phase this 
program in across the total force over the next several years. In 
fiscal year 2019, installations began hiring staff to lead this 
resilience charge. Our first 40 of 77 Community Cohesion Coordinators 
(C3) received initial training in January and are now starting their 
local programs.
                   foundational readiness imperatives
    The Air Force's core values--Integrity First, Service before Self, 
and Excellence in All We Do--are the foundation of all airmen 
performance. They define our culture, who we are as a force, and are 
the basis of the Care Solutions we consider foundational readiness 
imperatives.
Personal Violence Prevention and Response
    Interpersonal violence and suicide are counter to our culture and 
our core values. These actions negatively impact victims, the bereaved, 
and their units. As a result, unit cohesion, mission effectiveness, and 
ultimately Air Force readiness are threatened. We are deeply committed 
to the prevention of interpersonal violence on all fronts from sexual 
assault, child maltreatment, domestic violence, and workplace violence. 
We are dedicated to a strategy with the ultimate goal of never losing 
another airman to suicide. Should these acts of violence occur despite 
our prevention efforts, we are committed to providing victims of 
violence the care they need as well as caring for individuals and units 
left grieving after a suicide death.
Suicide Prevention
    Suicide is the leading cause of death for Active Duty airmen. 
Suicide has devastating effects on individuals, families, units, 
communities, our readiness, and our Nation. Statistically, both 
individuals and units that experience the loss of an airman to suicide 
are at higher risk for suicide themselves. While total force suicide 
rates in the Air Force have remained constant over the past 5 years, 
about 110 total force suicides per year, we are not satisfied. One 
suicide death is too many. The Air Force is dedicated to a 
comprehensive, leadership-driven strategy with the ultimate goal of 
supporting airmen and their families early with a robust support 
network and never losing another airman to suicide.
    The Air Force is pursuing bold immediate, mid-term, and long-range 
suicide prevention initiatives for the total force that focus on 
connections between individuals, units and Air Force family; 
protections in environments, services, and policies; detection of risk 
in individuals and units; and equipping total force and family members 
to mitigate risk and increase resilience. These initiatives highlight 
cutting edge suicide prevention efforts, such as computer-based 
learning for suicide risk detection; the most current suicide 
treatments; a dashboard with suicide prevention tools for leaders; and 
time-based prevention, an initiative designed to separate someone who 
is thinking about committing suicide from the most lethal means (i.e. 
free volunteer storage of personally owned firearms). Taken together, 
we believe these innovations have the potential to decrease the number 
of airmen who commit suicide.
    We need leaders at all levels to help reinforce the notion that 
seeking help is a sign of strength and airmen need not go it alone. One 
such effort is Task Force True North, which increases connections and 
help-seeking in higher risk units. While suicide is a difficult and 
complex issue and requires complex solutions, it is preventable and the 
Air Force remains committed to achieving ZERO suicides.
  Task Force True North
    We are continuing our evaluation of Task Force True North at four 
bases, under a beta test for initiatives that bring resources closer to 
our airmen and drive a culture that accepts, embraces, and normalizes 
help-seeking behavior. Through a comprehensive approach that includes 
embedding mental and physical health resources directly into units 
where our airmen work, live, and interact, we believe we can improve 
readiness and optimize airman performance by engaging our airmen and 
their families early, increasing help seeking behavior and decreasing 
negative behavior outcomes. We continue to analyze data from our beta 
test and will be working to scale the successful approaches across the 
force.
Sexual Assault Prevention and Response (SAPR)
    Sexual assault remains a serious national problem. It is a crime 
that negatively affects airmen and their families, erodes unit trust 
and cohesion, and ultimately undermines the Air Force's lethality and 
mission success. It is counter to our core values and goes against our 
culture of dignity and respect. The Air Force remains steadfast in 
innovating, evolving, and strengthening our sexual assault prevention 
and response efforts, including refining and expanding access to victim 
advocacy services, engaging leadership, and holding offenders 
appropriately accountable. Any occurrence of sexual harassment and 
assault is corrosive to our ability to train the leaders of character 
that our Air Force and our Nation need.
    The Air Force is committed to advancing victim care throughout the 
Department of Defense. We continue to collaborate with the Department 
of Defense and our sister services on policies and resources that 
enhance victim support. Of note is the upcoming implementation of the 
Catch a Serial Offender Program (CATCH), offering victims who opt for a 
restricted report an opportunity to provide information on the accused 
and/or incident for potential identification of serial offenders. 
Implementation of CATCH is expected Department-wide in 2019.
    Last month, the Department provided Congress with the Annual Report 
on Sexual Harassment and Violence at the Military Service Academies, 
academic program year 2017-2018. As already discussed by the 
superintendents and Service leadership, the most recent survey found 
the overall estimate of past-year prevalence of unwanted sexual contact 
increased for cadets and midshipmen compared to rates measured in 2016. 
At the Air Force Academy, sexual assault reports have gone down from 33 
to 29 since the 2016-2017 report, while the estimated past-year 
prevalence of sexual assault against women increased from 11.2 percent 
to 15.1 percent. Estimated prevalence of sexual assault against men did 
not change statistically. The survey also showed that 46 percent of 
women at the Academy have experienced sexual harassment. These findings 
are unacceptable, and the fact that they exist despite many efforts is 
disheartening and frustrating. We must do more at both the Academy and 
throughout our Air Force to change the culture and eradicate this 
unacceptable behavior. These results are not reflective of the 
standards to which we hold ourselves, nor do they exemplify our core 
values. The overwhelming majority of our Academy cadets and the airmen 
within the force adhere to our expectations for professional and 
ethical behavior. But for those who do not, there is no place for them 
in our academies or our Air Force. Again, the findings from this year's 
report are not acceptable. We will continue to search for solutions, 
increase our review of over a decade's worth of data, and make positive 
progress in this ever-changing mission space.
           building our nation's air force faster and smarter
    In this era of near-peer competition and the rapidly evolving 
technological and multi-domain environment in which the Air Force 
operates, we realize our talent management system must also evolve to 
be more agile, responsive, transparent, and effective at empowering and 
driving performance. These attributes are the bedrock for increasing 
lethality and developing exceptional leaders. They are also the filters 
we use to evaluate the effectiveness of new reforms or initiatives.
Performance Management
    Hiring, developing, retaining, and managing workforce talent is a 
top priority. We need agile, responsive military and civilian personnel 
management systems to ensure that the Air Force wins the war for top 
talent. Ultimately, Air Force readiness depends on having the right 
total force team--military and civilian--in place.
  Enlisted
    Over the last several years, we have evolved our enlisted 
performance system incorporating feedback from the field and garnering 
trends from industry. Our evolution has focused on making the system 
more agile, more transparent, and simple, to focus on and drive 
performance as we strengthen the readiness and professionalism of our 
vital enlisted force. One recent example is our initiative to go to a 
``board only'' process, removing the Weighted Airmen Promotion System 
(WAPS) test for promotion to the grades of master sergeant, senior 
master sergeant, and chief master sergeant. This change ensures duty 
performance is the most important factor in evaluating promotion to the 
next higher grade. Another significant policy allows senior 
noncommissioned officers who complete an associate's degree or ``higher 
level degree from a nationally or regionally accredited academic 
institution'' to be eligible for promotion and senior rater 
stratification or endorsement consideration. This adds agility for our 
airmen freeing them up to advance their skills and education in ways 
that best suit their needs and personal time.
  Officer
    Air Force success in carrying out the National Defense Strategy 
requires us to have an officer corps which can adapt, innovate, and 
demonstrate agility in dealing with today's complex security 
environment. The Air Force is committed to transforming the way we 
develop, promote and retain our officer corps in order to meet that 
task head-on. We appreciate the additional Defense Officer Personnel 
Management Act (DOPMA) authorities given to us in the fiscal year 2019 
National Defense Authorization Act. We are planning to utilize several, 
including ``early promotion'' and ``lateral entry'' to fill inventory 
gaps. We are also looking at incorporating other authorities such as 
promoting officers based on order of merit, permitting officers to opt 
out of promotion consideration, and alternative promotion for 
designated career fields as part of our overall talent management 
transformation. Our officer evaluation system has not seen significant 
changes since 1988 and our current Line of the Air Force promotion 
competitive category structure has not changed since the founding of 
our Air Force in 1947. We are currently working to make adjustments to 
the Line of the Air Force competitive category structure, including 
holding a recent mock board to explore options. This restructure, 
coupled with the increased flexibilities provided by Congress give us 
the ability to create more agile development paths and better match the 
officer inventory to actual requirements which is vital to increasing 
readiness and lethality.
  Civilian
    Another key component of our force are the more than 204,000 
Department of the Air Force civilian employees stationed across the 
globe. The civilian workforce shares the same responsibility to our 
Nation as the men and women in uniform. Working in over 600 occupations 
and professions, the civilian workforce underpins the Air Force. 
Civilian engineers work in research labs and social workers help 
children acclimatize to new environments. Civilians are physicians 
treating airmen and their families. They are cyber security experts on 
the front line guarding against hackers, police officers, aircraft 
mechanics, nuclear physicists, mathematicians, human resources 
professionals, electricians, and rocket scientists among many other 
occupations. At home and abroad, to include deploying to combat zones, 
our civilian members work shoulder to shoulder with their military 
counterparts. Having a high quality force and being able to recruit and 
compete for top civilian talent is an essential aspect of our total 
force and critical to our readiness. As such, we are thankful for all 
the previously granted congressional authorities for civilian hiring. 
They have recently enabled us to bring on talent in critical career 
fields much faster than before. However, legislative relief has 
resulted in 66 different civilian personnel systems within the 
Department of Defense, more than 60 classification systems, and more 
than 45 new hiring and related authorities since fiscal year 2010. This 
complexity drives administrative burdens and costs. It forces the Air 
Force to focus too much on being compliant instead of focusing on 
winning the war for civilian talent. We are partnering with our sister 
services and the Department of Defense to identify legislative 
proposals which will enhance the civilian personnel system.
Digital Transformation of the Air Force Talent Management Portfolio
    The Air Force has made great strides in modernizing our talent 
management portfolio to provide airmen a cutting edge digital 
experience. We have transitioned applications to our new cloud 
environment. This will allow us to consolidate 120 independent systems 
into 8 cloud platforms. We have migrated all Talent Management 
applications to the cloud from the Langley Data Center and are 
scheduled to close the San Antonio Data Center in September 2019, 
sending over 30 systems into the cloud--2 years ahead of schedule, 
saving money. We are the first in the Department of Defense to 
establish a rapid prototyping process for new human resource 
capabilities, allowing us to fast-track software development for the 
cloud using agile methods. We acquired Okta for identity and access 
management enabling secure login using mobile devices without a Common 
Access Card (CAC)--another first in the Department of Defense. We will 
not stop until we empower our airmen with a mobile user experience, 
with seamless access, transparent processes, self-service, and 
autonomous support.
Air Force Integrated Personnel and Pay System
    The Air Force Integrated Personnel and Pay System (AFIPPS) will 
enhance our already fully operational personnel system for all three 
components, Active, Reserve, and Guard, by integrating payroll. We are 
currently in the development phase of AFIPPS. Full development is on 
schedule to be completed in February 2020. This timeline will give the 
Air Force the opportunity to test the new system and train airmen on 
the new procedures to ensure the transition to AFIPPS will be seamless 
for the total force. In January 2021, the Air Force will have a fully 
integrated personnel and pay system, auditable and regulatory 
compliant, which will resolve existing pay issues airmen experience 
today.
                               conclusion
    Resilient and ready airmen, both military and civilian, are the 
bedrock of the Air Force's readiness and lethality. Your Air Force is 
evolving to compete, deter, and win with unmatched power through the 
air, space, and cyber domains. We must ensure our airmen have the 
resources, training, and tools to meet these demands. We are committed 
to prioritizing and resourcing what is most important and look forward 
to partnering with Congress in our endeavors to protect and defend our 
great Nation. I thank you for your continued support of your Air 
Force--those in uniform, our civilian professionals, and the families 
that support them.

    Senator Tillis. Thank you, General Kelly.
    General Rocco.

STATEMENT OF LIEUTENANT GENERAL MICHAEL A. ROCCO, USMC, DEPUTY 
          COMMANDANT FOR MANPOWER AND RESERVE AFFAIRS

    General Rocco. Chairman Tillis, Ranking Member Gillibrand, 
distinguished Members of the Subcommittee, thank you for the 
opportunity to be here today.
    Marines are the foundation of the Corps. They are 
recruited, trained, educated, and retained to win our Nation's 
battles. They are smart, resilient, fit, disciplined, and able 
to overcome adversity. All marines are war-fighters; they are 
lethal, and they are ready. To ensure the continued health of 
the Corps, the recruiting and retaining of high-quality women 
and men is my number one priority.
    This year, the Corps will once again meet our recruiting 
mission, while at the same time exceeding all quality goals. 
Over 99 percent of our recruits are in the top education tier. 
The Corps is also on pace to meet our retention goals this 
year; however, this is a continuous challenge because of the 
strong civilian market. This is particularly true for cyber, 
intelligence, aviation, and many other critical high-tech 
occupations. To be good stewards of the money you provide us, 
we narrowly target our incentive pays and bonuses to these 
occupations. These bonuses are vital to our retention effort, 
and we appreciate your continued support for them.
    The Marine Corps is an objective, standards-based 
organization. We want the best marines, female or male, and 
have refocused and refined our outreach to ensure we bring 
awareness of what it means to be a marine to a larger audience. 
This has paid dividends. Five years ago, the Marine Corps was 
7.3 percent female. We are now 8.6 percent. In fiscal year 
2018, female accessions were over 10 percent of the population, 
and we are on that same trajectory this year. Additionally, 
females are represented in all previously-restricted 
occupational fields. We need the best our Nation offers, and we 
are getting them.
    Once we make a marine, our responsibility is to be there to 
help when life's challenges arise. Marines take care of their 
own, on and off the battlefield. Unfortunately, we have seen an 
increase in marine suicides last year. Suicide is a very 
complex issue that impacts our whole Nation. We know that 
relationship, financial, and legal issues are factors, but not 
always. We know that transitions or simply being on leave can 
be a factor, but not always. Suicide is a tragedy. It is a 
permanent solution to a temporary problem; permanent to the 
marine, permanent to friends, to the Corps, and most 
importantly, permanent to the family who must endure that pain. 
Through various programs throughout the ranks, we urge all 
marines to reach out for help when they need it. Marines need 
to know we are there for them.
    Sexual assault prevention and response is another area to 
which we are 100 percent committed. Sexual assault is a crime 
and violates everything the Marine Corps stands for. We saw a 
rise in reports last year. The vast majority are unrestricted 
reports, which is encouraging because we believe marines feel 
empowered to report, have faith in their leadership, and are 
confident we will hold the offenders accountable.
    Lastly, I want to ask for your support for Camp Lejeune, 
Marine Corps Air Station New River, and Marine Corps Air 
Station Cherry Point, all of which were severely damaged by 
Hurricane Florence several months ago. We still have almost 500 
buildings that are severely damaged and cannot be occupied. The 
cost to repair these facilities is over $3.5 billion. We cannot 
fix this urgent problem without your help.
    I am proud to represent the men and women of character--the 
few, the proud--who have taken up the challenge of being a 
marine. By keeping unwavering focus on our marines and their 
spouses/families who support them, we can continue to keep 
faith with the honor, courage, and commitment they have 
unselfishly given. I look forward to answering your questions. 
Thank you.
    [The prepared joint statement of General Rocco and Sergeant 
Major Green follows:]

  Prepared Joint Statement of Lieutenant General Michael A. Rocco and 
                     Sergeant Major Ronald L. Green
                              introduction
    Chairman Tillis, Ranking Member Gillibrand, and distinguished 
Members of the Subcommittee, it is my privilege to appear before you 
today to provide an overview on Marine Corps personnel.
    Since our founding in 1775, marines have answered our Nation's 
call, faithfully serving the American people and maintaining a standard 
of military excellence. Your Marine Corps is, and will continue to be, 
our Nation's expeditionary force in readiness. We are warfighters who 
are ready to rapidly respond to crises around the globe to ensure the 
continued security of the American people and to protect the interests 
that underpin our Nation. Marines will be always faithful to the trust 
which the American people have vested in them.
                               our people
    Mission first, people always. Marines are the foundation of the 
Marine Corps. They are the Corps' most critical resource, and always 
have been. Your marines are recruited, trained, educated, and retained 
to win our Nation's battles. They are smart, resilient, fit, 
disciplined, and able to overcome adversity. Recruiting high quality 
youth and retaining those whose past service and future potential 
continues to make the Corps stronger are our highest priorities; they 
ensure we remain no better friend and no worse enemy.
End Strength
    We thank Congress for the increased end strength authorization to 
186,100 in the fiscal year 2019 National Defense Authorization Act, and 
for the full-year Defense appropriation. During this time, the Marine 
Corps operating forces continue to average a deployment-to-dwell ratio 
of 1 to 2. This tempo is not sustainable over the long term; our 
optimal deployment-to-dwell is 1 to 3. Our marines want to deploy, 
serve our Nation, and protect our country from threats overseas, but we 
owe our marines and their families the appropriate time to reconnect 
with family, refocus, learn from their most recent deployment, and 
train for the next deployment or contingency. In the near-term, we have 
made the decision to fund modernization and recover our readiness to 
continue to ensure our marines are fully equipped for today's conflict. 
However, we must continue to work towards a 1 to 3 deployment-to-dwell.
Recruiting
    Unique to all Services, all recruiting efforts across the Marine 
Corps--officer, enlisted, regular, Reserve, and prior-service--fall 
under the purview of a single entity, the Marine Corps Recruiting 
Command. Operationally, this provides us with tremendous flexibility 
and unity of command, facilitating efforts to meet accession 
requirements.
    Last fiscal year, we successfully achieved all enlisted and officer 
recruiting goals for both the Active and Reserve components, and we 
expect to do the same again this year. We also will exceed all quality 
goals. The Department of Defense requires 90 percent of enlistees to 
have a high school diploma or equivalent (Education Tier 1), and 60 
percent of enlistees to belong to Mental Groups I-IIIA (mental 
aptitude). Last year, the Marine Corps achieved 99.9 percent for 
Education Tier 1, and 71.2 percent for Mental Group I-IIIA. We expect 
to be at or near these levels at the end of fiscal year 2019.
    While only 8 percent of new Marine Corps recruits receive an 
enlistment bonus, these incentives are critical to enable us to ship 
new recruits at the right times to balance recruit loads at the recruit 
depots and meet school seat requirements. We appreciate Congress' 
support for these priority programs that assist our contracting high 
quality Marine recruits.
    To meet future challenges in the current recruiting environment, it 
is imperative that we maintain our high standards both for our 
recruiters and those who volunteer to serve in our Corps. Recruiting 
quality young individuals translates into higher performance, reduced 
attrition, and improved readiness for the operating forces. Our 
actions, commitment, and investments in recruiting today ensure a high 
state of readiness in our Corps tomorrow.
Retention
    As the Marine Corps manages our force, we work to retain the very 
best available marines capable of fulfilling our leadership and 
operational needs. This is accomplished through a competitive career 
designation process for officers and a thorough evaluation process for 
enlisted marines, both of which are designed to measure, analyze, and 
compare our marines' performance and accomplishments. However, there is 
a continuous challenge to keep high-quality marines in the service, 
especially in a competitive civilian job market.
    Marine Corps retention models, systems, policies, and processes 
emphasize consistency of leadership, personnel stability, and sustained 
readiness across the force. Officer career designation incorporates a 
board system that enables leaders to examine officer records and 
accomplishments. After designation, the promotion process continues the 
evaluation of Marine officers. It is a primary tool by which we retain 
only the best and most qualified marines.
    For enlisted marines, a tiered rating system takes into account a 
number of quantifiable performance factors and includes inputs from 
both immediate and more senior leaders. It helps to set achievable 
goals for marines as they compete for retention. After initial 
reenlistment, the evaluation and continued retention of high quality 
enlisted marines is supported by a detailed and continual performance 
evaluation system which is fully integrated with the promotion process. 
Those marines with the best proven performance are retained and 
promoted.
    Always striving for improvement, we are working to modernize our 
performance evaluation system for our junior enlisted marines in the 
ranks of private through corporal by updating our legacy proficiency 
and conduct ratings system with an automated Junior Enlisted 
Performance Evaluation System (JEPES). When implemented, this system 
will be integrated into our current automated performance evaluation 
system used to evaluate sergeants and above and all officers. This 
result will be an even more detailed and objective evaluation of our 
junior marines that leverages our information technology to compare 
scored performance entries common to all marines. This will provide 
leaders a broader and more detailed baseline from which to evaluate 
future potential, reinforcing our efforts to retain the best and most 
qualified marines.
    Incentive pays remain critical to our retention effort, allowing 
the Marine Corps to fill hard to retain positions, such as cyber 
security technicians, special operators, and counter intelligence 
specialists. Similarly, Selective Reenlistment Bonuses allow us to 
shape our career force by targeting critical military occupational 
specialties (MOSs) and supporting lateral movement of marines to these 
MOSs. Overall, these incentive pays help us recruit and retain the best 
marines, especially for critical skills. Retaining qualified marines in 
these skills keeps your Marine Corps lethal and prepared to overmatch 
our adversaries. At only one percent of our Marine Corps personnel 
budget, these pays provide return on investment many times over.
    We are open to, and always assessing, new ways to recognize and 
reward excellence in the Corps to ensure quality remains high and 
retention strong. For example, the Marine Corps plans to use the 
authority for promotion boards to recommend officers of particular 
merit be placed higher on the promotion list. We continue to evaluate 
the other officer management flexibilities provided in the fiscal year 
2019 NDAA for implementation within the Marine Corps.
Reserves
    Your Marine Corps Selected Reserve is fully manned at its 
authorized end strength of 38,500, and our Reserve unit personnel 
readiness stands at its highest level in a generation. Unit Reserve 
personnel readiness continues to increase from 71 percent in 2013 to 
over 84 percent today, with significant improvement in both enlisted 
and officer force management.
    Our comprehensive manpower management plan provides full-service 
support to our Reserve officers and staff NCOs throughout the Selected 
Reserve for their career management. This is a talent management 
initiative that will help our NCOs, staff NCOs, and officers move 
between commands to enhance their development and military career 
goals.
    Our officer manning success has also been driven by bonuses and 
incentives to attract more marines from the Active component. In 
addition, our Reserve Officer Commissioning Program has produced 1,247 
lieutenants for the Marine Corps Reserves since its creation in 2006. 
As a result, our ground company grade officer manning has increased 
from 21 percent in 2007, to 72 percent today.
    Your Marine Corps Reserves continue to mobilize Selected Reserve 
marines under the 12304b mobilization authority for pre-planned 
training missions in support of combatant commander requirements. 
Approximately, 2,460 Reserve Marines are scheduled to deploy during 
this fiscal year. We thank Congress for its support for Reservists 
mobilized under 12304b by extending pre- and post-deployment health 
care, and extending high deployment allowance and non-reduction of pay 
benefits.
Blended Retirement System
    The new Blended Retirement System (BRS) went into effect on January 
1, 2018, and the 1 year BRS opt-in period closed at midnight on 
December 31, 2018. In 2018, approximately 142,000 marines registered 
their choice to remain in the legacy retirement system or opt-in to 
BRS. Of the 142,000, approximately 93,000 marines (65 percent) opted 
into the BRS. Also, approximately 21,000 new marines were automatically 
enrolled upon entering the service in 2018. In total, 114,000 marines 
are now covered by BRS and that number will continue to grow steadily 
as more marines enter service. Further, while the primary opt-in period 
ended, there are marines who were unable to register their retirement 
system decision due to special circumstances. They will be given more 
time to enroll into the BRS, resulting in additional growth in the 
total number of opt-in marines.
    The BRS is a significant change from the legacy retirement system 
and, while it confers a portable monetary benefit on the large majority 
of marines who do not reach retirement eligibility, we remain concerned 
on the potential changes to the retention behavior of the force, and 
will continue to closely monitor retention for impacts.
Marine Corps Integration
    Marine Corps integration is progressing very well. Female marines 
are now represented in all previously-restricted occupational fields. 
Our Marine Corps Integration Implementation Plan (MCIIP) assesses the 
impacts of integration through unit readiness and lethality, individual 
marine health and welfare, and overall service talent management. To 
support this outcome, the service is developing metrics to monitor 
retention and other career progression trends that may provide insights 
for the service's long-term health and readiness.
    Since 2015, 188 female marines have earned a previously restricted 
MOS through entry level training. In fiscal year 2018, 64 female 
marines earned their MOS and the population of those holding a 
previously-restricted MOS increased 66 percent. Additionally, fiscal 
year 2018 ended with 407 female marines serving in previously 
restricted units, a 55 percent increase from the past fiscal year. 
Clearly articulated and codified gender-neutral standards have enhance 
our ability to match the best and most fully qualified marines with the 
most suitable military occupations while maintaining the lethality of 
the Marine Air Ground Task Force (MAGTF). The Marine Corps has not and 
will not lower standards as we continue to place emphasis on combat 
readiness and effectiveness of the force.
Civilian Marines
    Our civilian marines support the mission and daily functions of the 
Marine Corps and are an integral part of our Total Force. They 
exemplify our core values; they embrace esprit de corps, teamwork, and 
pride in belonging to our Nation's corps of marines. Serving alongside 
our marines throughout the world, in every occupation and at every 
level, our civilian appropriated-funded workforce remains by far the 
leanest of all services, with a ratio of one civilian to every ten 
Active Duty marines.
    Approximately 95 percent of our appropriated funded civilians work 
outside the Washington, DC, beltway at 57 bases, stations, depots, and 
installations around the world. Sixty-nine percent are veterans who 
have chosen to continue to serve our Nation; of those, 18 percent are 
disabled veterans. Our civilian non-appropriated funded workforce 
steadfastly continues to provide vital support to our marines, Reserve 
marines, their families, and our wounded, ill and injured.
    We thank Congress for providing full year funding for our 
civilians. It has provided a measure of predictability for them this 
year, which improves morale, while also aiding in recruiting and 
retention efforts to bring top civilian talent to the Marine Corps. 
Overall, our civilians continue to truly shown themselves as Semper 
Fidelis by keeping our marines and their families in the forefront. For 
that, they have my personal admiration.
               taking care of marines and their families
    Taking care of marines and their families is a key element of 
overall readiness and combat effectiveness. The adage ``we recruit 
marines, we retain families'' remains as true today as ever. Our 
comprehensive package of services seeks the holistic fitness and 
readiness of our marines and families--body, mind, spirit, and social.
Behavioral Programs
    The Marine Corps behavioral programs are an integrated community-
based service model that includes community counseling, family 
advocacy, sexual assault prevention and response, suicide prevention, 
substance abuse, and combat operational stress. We provide world-class 
prevention and counseling services at each installation, and all of our 
behavioral programs provide free confidential services offered by 
licensed counselors. These services are available to individuals, 
couples, families, and children. During fiscal year 2018, we provided 
approximately 12,000 assessments and nearly 100,000 counseling hours to 
marines and their families.
    Because many behavioral issues are inter related, the Marine Corps 
is developing a Marine Corps Primary Prevention Strategy that can be 
implemented across the Marine Corps to address multiple problematic 
behaviors. The strategy will focus on establishing a primary prevention 
capability across the fleet, building skills consistent with primary 
prevention, and promoting synergy across programs.
    To increase awareness of methods for preventing destructive 
behaviors a communications strategy--``See Something, Do Something''--
was developed. This holistic communications campaign includes social 
media, tip sheets, and videos discussing a multitude of topics that 
impact marines and their families.
Suicide Prevention
    Suicide prevention is one of the Marine Corp's highest priorities; 
one death is too many. Preventing suicide has proven to be very 
challenging given the complex nature of the problem, but we are 
steadfast in our commitment to eliminating it. As our Commandant 
recently highlighted to all marines, everyone goes through pain, 
stress, and challenges in service and in life. While marines are tough 
and resilient, everyone may need help at some point, and your Corps is 
there for you. Ask for help, get help, and you will recover--we cannot 
afford to lose one marine!
    The Marine Corps does not view suicide prevention as a standalone 
activity or training. Prevention requires individuals, leaders, units, 
and the greater community to work together. Tiger teams have been 
developed to support commands with technical assistance, suicide 
prevention planning, training on Marine Intercept Program, and 
assistance with collaboration and agreements with outside services. 
This includes utilizing university partnerships to develop strategic 
messaging to the younger generation pertaining to suicide prevention 
and utilizing diverse resources to promote the value of behavioral and 
mental health and improving coping capabilities.
    The Marine Corps has integrated data from across the force to 
identify factors associated with suicide. Study findings indicate 
having a positive drug test and having had a recent legal or 
disciplinary action are factors associated with suicide. In addition, 
our Death By Suicide Review Board is in the process of analyzing all 
deaths by suicide, providing strategic and operational recommendations 
that address multiple Marine Corps strategic suicide prevention goals.
    The Marine Intercept Program is targeted intervention for marines 
who have experienced a suicidal ideation or attempt. It combines 
efforts from fellow marines, commanders, installation counselors, and 
Marine Corps headquarters elements. The program assists marines with a 
suicide ideation or attempt through care coordination, regular 
telephone outreach by care managers, development of safety plans, and 
suicide assessments. The program results in marines receiving 
assistance faster and keeping their appointments more often.
    The Marine Corps DSTRESS Line is a 24/7/365, marine-specific call 
center providing phone, chat, and video-telephone capability for 
anonymous counseling for circumstances across the stress continuum. 
DSTRESS Line callers can discuss stress, anger management, grief and 
loss, deployment cycles, parent-child relationships, couples 
communication, marital issues, relationships, relocations, and suicidal 
crisis as well as other areas of concern. To date, the DSTRESS Line has 
enabled 45,000 help sessions with marines, attached sailors, and their 
families, and has helped save 39 marines who were in imminent danger 
situations.
Sexual Assault Prevention & Response
    Protecting marines and preventing sexual assaults are top 
priorities for the Corps. We are committed to preventing incidents of 
sexual assault by increasing awareness, providing victim-centered 
support and intimidation-free reporting, thorough investigation, and 
accountability for those who commit sexual crimes. Any marine who comes 
forward to report a sexual assault will receive support, even if the 
sexual assault occurred prior to service.
    The Marine Corps is conducting specialized training across all 
ranks to ensure that leaders have a clear understanding of sexual 
assault throughout the Marine Corps. One of the goals of this training 
is to promote leadership action within their scope of responsibility, 
and ensure ownership of their sexual assault prevention plans. For 
example, our ``Take A Stand'' training for non-commissioned officers 
(NCOs) focuses on leadership specific to NCO roles and responsibilities 
and building skills consistent with primary prevention, such as 
effective communication, empathy, and healthy relationships and 
interactions.
Command Individual Risk and Resiliency Assessment System
    The Marine Corps force preservation process is the formalized 
method used by commanders to identify individual marine risk factors 
and to apply holistic risk management measures to improve individual 
and unit readiness. Each and every day, this process assists leaders 
across the Corps to identify those in need. However, gaps in knowledge 
about our marines have historically limited the effectiveness of the 
effort. To improve the process, we are developing the Command 
Individual Risk and Resiliency Assessment System (CIRRAS), which will 
compile individual force preservation data input by small unit leaders, 
medical officers, and other support staff. By presenting timely, 
prioritized, actionable information to those who can help marines, and 
by protecting unauthorized disclosure through strict access limits and 
cybersecurity, leaders will be better equipped to reduce destructive 
behaviors in their units. CIRRAS will be initial operating capability 
in August of this year.
Personal and Professional Development
    Our Marine For Life Cycle is a career long process that helps 
marines prepare for transition to civilian life. The Marine Corps 
provides a continuum of tangible learning or experienced-based 
opportunities at nine different action points with specific emphasis at 
the Marine's first permanent duty station, promotion to corporal, and 
the Transition Readiness Seminar.
    At their first permanent duty station, marines complete the 
Personal Readiness Seminar within 90 days of arrival to the 
installation. This seminar provides an overview of personal and 
professional development services to include voluntary education, 
career technical/credentialing, personal financial management, and 
family member employment assistance; the seminar also emphasizes 
financial readiness awareness.
    Approximately 12-14 months prior to separation, or 24 months prior 
to retirement, marines complete the Transition Readiness Seminar (TRS). 
The week-long program includes a mandatory standardized core curriculum 
followed by three two-day track options to align with future goals and 
aspirations--accessing higher education, career and technical training, 
or entrepreneurship.
    No later than 90 days prior separation, marines meet with their 
commanding officer for Capstone. During Capstone, the commanding 
officer will validate whether the marine has met their career readiness 
standards and ensures the marine's readiness for transition. If a 
marine does not meet their career readiness standards or have a viable 
transition plan, a warm handover will be provided to Department of 
Labor or Veterans Affairs partner agencies for additional post-
transition assistance. In fiscal year 2019, Veterans Opportunity to 
Work Act compliance increased from 56.3 percent in fiscal year 2017, to 
91.6 percent in fiscal year 2018, and is currently at 96.4 percent.
    The mission of Marine Corps Credentialing Opportunities On-Line 
(COOL) is to prepare marines for postsecondary education, 21st century 
careers, and leadership skills in a global economy by helping them 
receive transferable credit for their military skills and work 
experience. COOL links marines with civilian certifications related to 
their military occupational specialties. It is a public website 
accessible to all current marines, as well as veterans, spouses, 
potential employers, enterprises, credentialing agencies, and 
associations. A credential translates Marine Corps technical skills 
into marketable language recognized by employers. The Marine Corps will 
pay for examination fees and annual maintenance for enlisted marines to 
earn civilian/industry credentials closely aligned with their 
occupational specialty. In fiscal year 2018, 768 COOL vouchers were 
issued for marines.
Spouse Employment
    The Marine Corps Family Member Employment Assistance Program 
(FMEAP) emphasizes a proactive approach for military spouses and other 
dependent family members to formulate informed career and educational 
choices. It provides employment related referral services, career and 
skill assessments, career coaching, job search guidance, portable 
career options, and education center referrals and guidance. FMEAP 
provides coaching and training on interviewing techniques, resume and 
cover letter writing, the Federal application process, salary 
negotiations, one-on-one career coaching, volunteering, and 
entrepreneur business opportunities. In fiscal year 2018 more than 
22,000 spouses and family members attended the nearly 600 FMEAP 
workshops and briefs.
    The Spouse Transition and Readiness Seminar (STARS) was created to 
address the transitional challenges and opportunities specifically for 
spouses. STARS' goal is to empower military spouses and alleviate 
stressors such as employment, finance, transition, and education 
associated with the military culture to ensure a seamless and 
successful transition for the entire military family back into civilian 
life. To date, 204 STARS seminars were conducted with 1,630 spouses 
attending.
    The Marine Corps leverages the DOD Spouse Education and Career 
Opportunities program, which includes Military Spouse Employment 
Partnership (MSEP)--a partnership where employers agree to offer 
transferrable, portable career opportunities to relocating military 
spouse employees. MSEP currently has 360 partners, to include MCCS 
[Marine Corps Community Services], and has hired over 120,000 military 
spouses.
    Finally, the Military Spouse Career Advancement Account (MyCAA) 
scholarship provides up to $4,000 for military spouses to pursue 
licenses, certificates, certifications, or associate degrees necessary 
for gainful employment in high demand, high growth portable career 
fields and occupations.
Child and Youth Programs
    The Child and Youth Programs (CYP) provides eligible families with 
high quality, accessible, and affordable programs and services for 
children 6 weeks to 18 years of age. Services are offered aboard Marine 
Corps installations and through contractual partnerships. One part of 
CYP is our Child Development Programs, which include nationally 
accredited childcare services for eligible children from 6 weeks 
through 12 years of age. In fiscal year 2018, CDP served 41,385 
participants at 14 installations in 66 facilities. For those outside a 
15 mile radius of a military installation or on an installation 
waitlist, we offer Off-Base Child Care Fee Assistance, which provides 
eligible marines with assistance paying for private childcare. In 
fiscal year 2018, this program served 1,298 participants across 38 
states.
Wounded Warrior Care
    The Marine Corps' Wounded Warrior Regiment (WWR) continues to 
execute our Recovery Coordination Program in support of wounded, ill, 
or injured (WII) marines and their families, in a manner that greatly 
facilitates their recovery and upholds our enduring commitment to 
``keep faith'' with those who have incurred life changing impairments 
in service to our Nation. Regardless of the origin of affliction, our 
marines require and genuinely deserve access to the comprehensive 
recovery care available through the WWR.
    WWR recovery care coordinators, in coordination with medical 
providers and unit leaders, help WII marines develop and execute their 
individual comprehensive recovery plans, which provide the road map for 
a successful transition. WII marines with complex care coordination 
needs are assessed for post-separation support requirements. When 
appropriate, those marines are transferred to a Department of Veterans 
Affairs (VA) designated lead coordinator prior to their medical 
discharge to ensure seamless support.
    WWR maintains faith with our marines through our district injured 
support coordinators, who are geographically dispersed around the 
country and provide one-on-one support as needed, and the Sergeant 
Merlin German call center, which conducts an average of 5,500 outreach 
calls each month to Active Duty and veteran marines who have been 
injured or fallen ill, are combat wounded/Purple Heart recipients, are 
referred to the Disability Evaluation System, or are on the Temporary 
Disability Retired List. These calls are conducted on a fixed schedule 
depending on the purpose of the call and the severity of the marine's 
condition, which may be very seriously injured (VSI), seriously injured 
(SI), or not seriously injured (NSI). Outreach calls will continue 
until the marine's case is suspended or a different calling routine is 
requested by the marine. In all cases, the Wounded Warrior call center 
is available to receive calls 24/7, 365 days a year.
    Since our WWR was established in 2007, thousands of WII marines and 
family members transitioning from Active Service have benefitted from a 
full spectrum of support services that begins with physical recovery 
needs and increasingly focuses on post-service employment and education 
opportunities as they heal. Marines and their families, Members of 
Congress, and the public at large can be assured that the Marine Corps, 
through the WWR, will continue to expertly provide recovery care 
coordination support at all times.
Marine Corps Business and Support Services
    The Marine Corps delivers many of its quality of life programs via 
an integrated Marine Corps Community Services construct that combines 
Morale, Welfare and Recreation (MWR); Marine Corps Exchange (MCX); 
Warfighter and Family Services; and Child Development Programs. This 
integrated model is unique within DOD and provides many operating 
efficiencies, including consolidated non-appropriated fund (NAF) back-
office support, e.g., human resources, finance and accounting, 
procurement, construction, and information technology. Our focus on 
efficiency continues today with transformation and innovation pursuits, 
such as a shared services center for all MCCS NAF transactional 
accounting functions; we are expecting a significant cumulative NAF 
benefit over a 10 year period.
    The MCX is an integral self-sustaining business component of MCCS, 
delivering products and services in garrison and expeditionary 
environments, while producing an invaluable NAF dividend to our MWR and 
family programs. Marines and their families can count on real savings 
when they shop at the MCX. The 2018 market basket survey showed an 
average savings of approximately 27 percent. Further, the MCX is proud 
to employ military family members who represent approximately 34 
percent of our workforce.
    Transformation and innovation are the fabric of MCCS as we continue 
to assess and implement new delivery models by leveraging technology, 
partnerships, and sponsorships. The Marine Corps is also an Active 
participant in DOD Business Reforms that encompass many of the programs 
and services within the MCCS portfolio. We are committed to seeking 
efficiencies across the Department while preserving our highly 
effective MCCS organization that is best attuned to meeting Marine 
Corps operational requirements.
                               conclusion
    The marines of our Corps represent the individuals of our Nation 
who have stepped forward and sworn to defend and protect it. Through 
recruiting, training, education, and retention of men and women of 
character who take up our challenge to become one of ``the Few and the 
Proud,'' we will enhance the quality of our Corps and our overall 
combat effectiveness. By ensuring that we take care of all marines and 
their families, we fulfill our responsibility to keep faith with the 
honor, courage, and commitment they have so freely given.
    Our individual marines are our most precious asset. They are proud 
of what they do. They are proud of the ``Eagle, Globe, and Anchor'' and 
what it represents to our Nation. With your support, a vibrant Marine 
Corps will continue to meet our Nation's call.
    Thank you again for the opportunity to present this testimony.

    Senator Tillis. Thank you, General Rocco. I am going to 
reorder my time to the end and recognize Senator McSally, 
followed by Senator Gillibrand.
    Senator McSally. Thank you, Mr. Chairman. I really 
appreciate it.
    Thanks, gentlemen, for your service and your testimony. 
Many topics we could talk about, but one that we had talked 
about a few weeks ago in a full committee hearing related to 
military family housing and the privatized housing. Some pretty 
awful and unacceptable conditions that we heard in testimony by 
a number of families. I can't imagine, as a former commander 
myself, having anybody in my unit going to work every day or 
being deployed and having their families back home dealing with 
some of the conditions that we saw there that are harmful to 
the health of the family and their children, unresponsive 
private contractors, and it seems like some disconnects with 
who's responsible in the chain of command.
    Since that hearing, unfortunately--it shouldn't have taken 
a hearing to be talking about this--some staff from this 
committee actually made some unannounced trips to Fort Bragg 
and Norfolk and saw some additional cases there of very bad 
circumstances for these families that are just unacceptable.
    So what are you doing within your authorities to address 
these issues and immediately get families that are in harm's 
way in their own homes right now into better circumstances, and 
what other authorities--what do we need to change here in order 
to fix this immediately? Because this is just absolutely wrong.
    I'll start with you, General Seamands and Admiral Burke, 
since the two places that were visited were Army and Navy. But 
it really goes across all the Services.
    Lieutenant General Seamands. Senator, thanks for your 
question. I'll tell you, our Nation expects our soldiers to 
protect the Nation. Our soldiers expect our Army to protect 
their families.
    Senator McSally. Right.
    Lieutenant General Seamands. Quite frankly, we fell down on 
the job. There's no excuse for it. It's clearly unacceptable.
    What the Army has done, Senator, is within the first 2 
weeks, within 15 days, every commander has to have a town hall 
advertised--in fact, the one at Fort Myers is happening 
tonight; my wife will be there--to make sure they understand 
what's going on and we communicate with the families. Within 30 
days, a commander from every organization will inspect I think 
it's about 117,000 sets of quarters, and barracks, 7,000 
barracks buildings, across our Army to put eyes on where the 
soldiers are living to make sure that they're adequate, and if 
they're not adequate, to raise the flag.
    We're also making sure that the families and soldiers who 
raise issues understand there won't be any retaliation from the 
contractor or anybody else, that they have the full support of 
the Army.
    Senator McSally. All right. Thanks.
    Admiral Burke?
    Vice Admiral Burke. Senator, we have a very similar system 
lined up. Again, we view this as an urgent operational issue 
affecting not only the trust and confidence of our sailors and 
their families, but their health, safety, and well-being, just 
as you've said. They have to be confident--our sailors and 
their families have to be confident that when they take an 
issue to us, it's going to be--to their leadership--that it's 
going to be handled.
    This really is a deck-plate leadership issue, and, you 
know, the fact that this is a relationship between a government 
agency and a private company should not interfere with that 
responsibility, and we're stressing that particular point with 
our leadership.
    So commander, Navy Installations Command is the 
organization that runs that, and our Navy, with the support of 
CNO [Chief of Naval Operations] staff that I'm a part of, is 
already reacting and on the job, and we are engaged in actions 
that are going to increase the oversight of those partners, 
introduce improved quality assurance of housing operations, 
follow up on issues, add feedback mechanisms after trouble 
calls are closed out, focus on the improved customer service, 
and begin a robust series of engagements. So e-mail, social 
media outreach, town halls, and home visits by invitation. 
We're doing a 100 percent contact to the offer of a home visit, 
which sailors can decline, for Public Private Venture (PPV) 
homes as well as all government homes. So a 100 percent offer 
that the sailors can decline.
    We'll evaluate, then, and modify as needed the Navy's 
business agreements with the privatized housing partners so 
that the agreements are properly structured to incentivize the 
partners' responsiveness, quality control, and the management 
oversight and customer service to our sailors and their 
families, and then make permanent our command's involvement in 
their feeling of responsibility for dealing with those 
situations from this point forward. So that 100 percent contact 
is in place. Just like General Seamands, I was already 
contacted by my local installation commander and the partner 
company, and the town halls are going on and those inspections 
are out in force.
    Senator McSally. Thanks. I'm out of time, so if we could 
grab for the record for the rest of you guys, but the point is 
it shouldn't have taken a media story--right?--to put all these 
things in place. Something clearly needs to change so that when 
it's not in the media, these are sustained care and support of 
our family members, for our servicemembers, our men and women. 
I mean, this is just absolutely unacceptable, the situation 
that many of them have been put in, and the system that we have 
is not working. So it was broken for us to get to this point.
    [The information referred to follows:]

    Lieutenant General Kelly. The United States Air Force is 
committed to providing safe and healthy housing for our airmen 
and their families. To address housing concerns highlighted in 
recent congressional hearings, the Secretary and Chief of Staff 
of the Air Force directed commanders to complete a 100 percent 
health and safety review of all Air Force military housing. 
Each of our wings conducted a health and safety check of our 
airmen living in privatized, government owned, or government 
leased housing worldwide. We contacted over 56,000 airmen of 
which 45,282 were in privatized housing. Approximately 8,100 
airmen expressed concerns about their homes with 7,217 of those 
from members in privatized housing. Installation leadership 
visits validated 4,760 of those who expressed concern through 
home visits with 4,478 from members in privatized housing. The 
Air Force is working aggressively with its project owners to 
remedy the concerns in privatized housing and has already 
addressed 1,856 of those concerns. Installation leadership is 
taking action to correct the remaining 2,622 open issues that 
we are tracking through confirmed completion. To regain the 
trust of our airmen and their families in the Air Force's 
commitment to ensuring the health and safety of their housing, 
the Secretary and Chief visited the bases that were the subject 
of greatest concern to residents during the Senate Armed 
Services Committee hearing. They met with residents, 
installation leadership and, in some cases, the project owners. 
We heard voices and we are working diligently to make the long-
term changes necessary to ensure our airmen received the 
quality housing they deserve. The Air Force Inspector General 
performed an inspection of housing privatization policies, 
procedures, and best practices used by Air Force installations 
for handling resident complaints and for protecting residents 
from potential health and safety hazards and we expect it soon. 
While the Air Force Inspector General did not find any cases of 
reprisal, the Secretary and Chief stressed to Wing Commanders 
the need to ensure housing residents can identify problems 
without retaliation or fear of reprisal. To ensure the delivery 
of safe and healthy housing, the Air Force is undertaking the 
following five lines of effort with its project owners and the 
other Services to fix the root causes of privatized housing 
issues:

      Empower Residents--establish a Tri-Service 
Resident Bill of Rights; develop Tri-Service common lease 
terms; implement transparent work order process for 
maintenance; inform residents of AF legal assistance resources 
available to them, and establish 1-800 resident help number

      Improve Oversight--commit additional Air Force 
resources to improve oversight and quality assurance checks; 
improve maintenance metrics; and enhance annual site visits

      Integrate Leadership--restructure performance 
incentive fees to give commanders a greater role in assessing 
the adequacy of maintenance services

      Improve Communication--establish resident 
councils, hire tenant advocates, and revise feedback tools to 
ensure the voice of the residents are heard by our project 
owners and commanders

      Standardize Policy--establish policies for 
addressing health and safety hazards in privatized housing The 
United States Air Force is committed to providing safe and 
healthy housing for our airmen and their families and is 
diligently working to ensure our airmen have the safe, healthy, 
high quality military housing they deserve.
    General Rocco. The Marine Corps has been working closely 
with commanders, servicemembers, installation housing offices, 
and housing partners to ensure that marines know that they are 
our greatest asset, and that they can expect quality housing 
and exceptional service no matter where they are stationed. 
Commanders across the Marine Corps have reached out to marines 
living in privatized housing, as well as those living in rental 
properties on the local economy, to ascertain their housing 
experience and identify trends that need improvement. As of 15 
April, the Marine Corps has made virtually 100 percent (99 
percent+) personal contact and provided home visits or phone 
interviews with each marine who chose to accept the visit/call. 
We have been educating the force on their rights as tenants and 
reiterating the process for resolving issues, as well as having 
leaders step in to advocate for residents. We have been 
tracking individual and aggregate work orders to ensure timely 
resolution and keep partners accountable, especially in cases 
that affect health and safety. Additionally, we have conducted 
town hall meetings, initiated an audit of the PPV housing 
program, and will be conducting a special survey with 
residents. We are working with our housing partners to 
establish more relevant performance and incentive metrics. The 
Marine Corps strongly supports the roll out of the PPV 
partners' Mobile Maintenance Apps for servicemembers to easily 
report and track maintenance. The Marine Corps takes very 
seriously any issue that affects our marines and families. We 
are evaluating and instituting systemic process changes to 
ensure that our Marines receive high-quality housing and best-
in-class service.

    General Rocco. Senator, and I know we're out of time, but 
I'd just like to add for the Marine Corps, the Commandant, we 
recognize this, and you're absolutely right; it's unacceptable. 
There was a disconnect. What he's done, and he puts out very 
few white letters to the command, but it's commanders' 
business. We've now since made it--we re-attacked it, and it is 
commanders' business, and we're going to fix it.
    Lieutenant General Kelly. Yeah, just, if I could, Chairman, 
really quick, because this is such an important issue. You 
know, this is absolutely commander's business, and our Chief 
and Secretary put that out and made sure, and we will be 
finished by this Friday with a 100 percent inspection by every 
commander across the Air Force, every housing unit, eyes on--
personally, eyes on at the commander level. There is no gap 
between whose responsibility is up. Commanders have 
responsibility for making sure our airmen and their families 
are taken care of.
    I would just add that one other thing I think is 
potentially a place to go forward is, I know our Chief and 
Secretary support a discussion on getting a tenant bill of 
rights that can help us in discussion with those contractors 
and privatized housing as we move forward.
    Senator McSally. Great. Thanks.
    Thanks, Mr. Chairman.
    Senator Tillis. Senator Gillibrand.
    Senator Gillibrand. Thank you, Mr. Chairman, again.
    Thank you for your testimony, thank you for your dedication 
to protecting the men and women who are serving and for your 
dedication to these personnel matters that really we care so 
deeply about.
    I first want to ask about this issue of climate. Despite 
intense support from military spousal hiring programs over the 
last few years, the rates of unemployment or underemployment 
for spouses seeking to join the workforce remain too high. Part 
of the challenge is the frequent PCS [Permanent Change of 
Station] moves required by Military Service. For many spouses, 
civilian employment by the Federal Government can be a 
solution, and Congress has worked to provide DOD with special 
hiring authorities to ease their employment process.
    How are you working to bring more military spouses into the 
civilian workforce, and when a spouse learns that they'll be 
moving duty stations, how can they go about locking in a 
Federal job at their next post before arriving in person?
    Lieutenant General Seamands. Senator, thanks for your 
support of our military spouses. A couple things the Army has 
done recently is to take those people who do child and youth 
services, childcare, those people who work in the civilian 
personnel offices and soon to be the DODEA, the Department of 
Defense Education Agency, and if you are, say, for example, at 
Fort Riley, Kansas and your soldier moves to Fort Hood, you are 
streamlined automatically into a new installation into a job 
like you had been; you're already cleared, all your credentials 
continue to transfer, to provide the opportunity for those 
spouses to have limited time without a job, just the 
transition, not going through the application or 
recertification process, and we think that's been a very 
positive step. We think it's the first step in many steps that 
can be taken to provide enhanced employment opportunities for 
spouses.
    Senator Gillibrand. Go ahead. If somebody else wants to 
add, you can.
    Vice Admiral Burke. Ma'am, we have our Fleet and Family 
Support Centers and our Family Employment Readiness Program 
that assist military spouses in obtaining employment and 
maintaining careers as we ask our servicemembers to move. We 
have a number of programs helping them gain portable careers 
for military families on the move--starting businesses, job 
search strategies, networking.
    We're also implementing authorities that you gave us in 
fiscal year 2018 NDAA to offset certification costs. Those will 
be implemented by June as part of our permanent change of 
station move app. It'll be integral as part of the permanent 
change of station move process. But the real challenge is that 
many professional spouses have certifications that don't 
translate state to state. That's an area where you could help 
us with the reciprocity or something that temporarily 
translates over so they could start working and then regain 
their certification.
    Senator Gillibrand. Thank you.
    General Kelly and General Rocco, would you submit your 
answer for the record? Because I just want to do a second topic 
before my time expires.
    [The information referred to follows:]

    Lieutenant General Kelly. There are numerous initiatives to 
increase job opportunities, quality of positions and ease of 
transition to positions: New DOD Priority Placement Program 
(PPP) via Application Based Process. The DOD has initiated an 
application-based process for military spouses to exercise 
their priority placement status. This process empowers spouses 
to actively pursue various employment opportunities available 
within the Department and to select when to exercise their 
preference. The initiative eliminates barriers inherent in the 
PPP process, such as: limiting the number of skills or 
positions for which priority candidates are referred; mandatory 
contact with human resources officers for the purpose of 
counseling and registering, and the inability for military 
spouses to be interviewed under the PPP process. The Military 
Spouse Employment Act, National Defense Authorization Act 
(NDAA) 2019, Section 573 Modifications to 5 U.S.C. 3330d ``The 
Military Spouse Employment Act'' expands the noncompetitive 
appointment authority to include ALL spouses of members of the 
Armed Forces on Active Duty not just those relocating or who 
are spouses of a disabled or deceased member. Per the 
amendment, eligibility is extended to the spouse of an Active 
Duty military member and spouse of a 100 percent disabled or 
deceased member of the Armed Forces. The act dramatically 
improves eligibility for noncompetitive appointments under 5 
CFR 315.612 for the next 5 years. E.O. 13832 complements the 
legislation by directing the promotion of the non-competitive 
hiring authority and increasing the jobs available to spouses 
under this authority. Title 5 United States Code 3330(d) In 
accordance with the provisions of 5 CFR 315.612, as modified by 
section 573 of the fiscal year 2019 NDAA, agencies may appoint 
non-competitively a spouse of a member of the Armed Forces 
serving on Active Duty who has orders specifying a permanent 
change of station (not for training), a spouse of a 100 percent 
disabled servicemember injured while on Active Duty, or the un-
remarried widow or widower of a servicemember who was killed 
while performing Active Duty. E.O. 13832 Promotes the use of 
the non-competitive hiring authority for military spouses. To 
the greatest extent possible consistent with hiring needs, job 
opportunity announcements will consider candidates under this 
hiring authority in addition to any other hiring authority. 
Agencies are to actively advertise and promote the military 
spouse hiring authority and solicit applications from military 
spouses for positions posted on USAJOBS or any other means the 
agency wishes to use. Agencies are to report specific 
statistics related to the military spouse hiring authority to 
the Office of Personnel Management (OPM) and Department of 
Labor (DOL) by December 31 of each year.
    General Rocco. Spouse employment is a topic of concern for 
many Marine Corps families and can be an obstacle for financial 
security. Permanent Change of Station (PCS) moves impact spouse 
employment across the Marine Corps in multiple ways. Our family 
programs offers the Family Member Employment Assistance Program 
(FMEAP) helps support spouses with effective career and 
education decisions, by providing job search guidance; career 
coaching; career and skill assessments; volunteer and portable 
career opportunities; and Education Center referrals/guidance.

      FMEAP specialists at the installation level work 
with Information and Referral (I&R) specialists to assist with 
relocation referrals and to provide information from 
established Federal, State and local agencies whose programs 
are available to assist servicemembers and families with making 
smooth inbound and outbound moves.

      Installations conduct classes to assist spouses 
and transitioning servicemembers with understanding the Federal 
hiring process with the Ten Steps to a Federal Job Search 
class. This class is designed to give an understanding of the 
Federal selection and hiring process, and assists participants 
with understanding how to complete a successful Federal job 
search and provides instruction for Federal resume writing 
strategies.

      Installations hold job fairs in conjunction with 
Hiring Our Heroes to assist veterans and families members find 
employment. Many participating employers have positions in 
multiple areas and spouses are encouraged to attend at their 
current duty station to begin the application process.

      FMEAP connects Marine Corps spouses with 
volunteer opportunities to assist them with establishing career 
experience throughout their PCS transitions and helps them 
translate their volunteer experience on their resumes. The 
program's holistic approach helps supports spouses throughout 
their marines' lifecycle. The Marine Corps is working to 
streamline the transfer process for Child Development Center 
(CDC) employee-spouses who are executing PCS orders. This 
initiative will have a twofold benefit, helping reduce spouse 
unemployment due to PCS moves and retaining experienced staff 
within the CDCs. The Marine Corps is also working to establish 
a Marine Corps transfer program for military spouses who PCS to 
new duty stations. Non-competitive military spouse preference 
is also being implemented. To assist spouses with gaining 
portable job skills, the Marine Corps participates in the OSD-
led Military Spouse Career Advancement Account (MyCAA) 
Scholarship which provides up to $2,000 per year (maximum of 
$4,000) for military spouses (Private to Sergeant, Warrant 
Officers 1 & 2, and 2nd Lieutenants to 1st Lieutenants) to 
pursue licenses, certificates, certifications or Associate 
Degrees necessary for gainful employment in high demand, high 
growth portable career fields and occupations. The Marine Corps 
participates in the DOD Military Spouse Preference (MSP) 
Program, which was instituted to reduce the adverse impact on 
the career paths of spouses of Active Duty servicemembers. Many 
career fields require state licensing which may not have 
reciprocity with the new duty station's state licensing 
regulations. This can cause a delay in the ability of a spouse 
to begin working and may impact the jobs for which they are 
eligible. The Marine Corps is collaborating with national 
veteran service organizations to evaluate the impact of 
licensing requirements on spouses.

      FMEAP is creating a working group within the 
Marine Corps and coordinating with the other Service branches 
to evaluate the feasibility of the language in Fiscal Year 2018 
NDAA Section 556, which allows the Services to reimburse 
spouses up to $500 for licensing fees incurred due to a 
permanent change of station. The Marine Corps is collaborating 
with our fellow service branches on the feasibility of 
implementing this law without an identified source of funding.

    In June of 2017, Politico Magazine published a story 
outlining Russian attempts to specifically influence 
servicemembers on social media and sow distrust in our 
political system. Then earlier this month, it was reported that 
researchers at the NATO [North Atlantic Treaty Organization] 
Strategic Communications Centre of Excellence used Facebook and 
Instagram content to instill undesirable behavior in troops 
during an exercise.
    What training are you providing to servicemembers to help 
them recognize foreign influence efforts targeting them on 
social media? Whoever has something, go ahead.
    Lieutenant General Kelly. Senator Gillibrand, the Air Force 
has two programs specifically designed in this area. The first 
is that basic training for our incoming airmen. They give up 
their phones and they go through social media training 
including discussions of training on foreign influence and 
social hygiene, if you will, social media hygiene. That happens 
near the end of that basic training, and that's at the point 
when they get their telephones back.
    For the rest of the airmen who are in, there's an annual 
training event that happens each year throughout the entire 
force where you go through and do cybersecurity awareness, and 
these topics are covered.
    General Rocco. Senator Gillibrand, so the Marine Corps' 
Social Media Accountability Response Team, that's the team that 
observes social media to ensure that the members are--what 
they're posting and what is being delivered to their social 
media posts, we do annual cyber training and annual social 
media training, and we also have the PAC order, which is a 
Prohibited Activities and Consolidation order, that has taken 
all of those things that were disparate in different orders in 
the Marine Corps and has put it into one order, so now members 
know exactly what is expected of them.
    Senator Gillibrand. And related, with my last 20 seconds, 
we also have had hearings on this specifically about sexual 
harassment and demeaning personnel members. Can anyone give a 
report on how that's going in terms of prevention?
    Vice Admiral Burke. In terms of online in particular?
    Senator Gillibrand. Correct, yes, specifically.
    Lieutenant General Kelly. That training for our basic 
military training discussion on cyber discusses cyber bullying, 
cyber attempts to coerce, and all those kind of things are a 
part of that. How that's completely translating into lower 
rates is difficult for us, but we'll continue to collect that 
data, but that's definitely part of the training program that 
we put in place.
    Senator Gillibrand. Thank you.
    Thank you, Mr. Chairman.
    Senator Tillis. Senator Duckworth.
    Senator Duckworth. Thank you, Mr. Chairman.
    I want to thank the panelists for attending today's hearing 
and I look forward to your candor and perspective on personnel 
policies. You know, we want to assist you in whatever way 
possible, whether it be resources or authorities.
    My first question, gentlemen, is, in many cases where a 
servicemember reports that they have been the victim of sexual 
assault, servicemembers can face severe punishment or a less 
than honorable discharge if they are found to have engaged in 
some form of collateral misconduct, like underage drinking or 
fraternization. Punishing victims for collateral misconduct has 
many negative consequences and it represents a significant 
barrier to reporting of sexual assault in the military.
    Do you agree that collateral misconduct and the threat of 
punishment for it represents a barrier to sexual assault 
reporting, and how can such barriers be lowered or mitigated, 
and would immunity or deferral of action against punishment for 
collateral misconduct potentially help with increasing the 
instances of reporting of sexual harassment?
    General Rocco. Senator, that's an important question, and 
from the Marine Corps perspective, one, commanders do have the 
ability to defer some of the charges. But to the larger point, 
I think that's something we can get back to you, as far as from 
the legal standpoint, on what exactly--the specifics of what 
can be deferred and what cannot be deferred. But I fully agree. 
We're agreeable to anything that will increase reporting and 
expose some of those issues.
    Vice Admiral Burke. Senator, ma'am, again, I think it's 
case dependent, again. But, in general, reporting tends to be 
independent of what eventually ends up being a method of 
accountability and the specific charges an individual is going 
to be held accountable against and those specific charges that 
end up being the ones that a particular commander--each 
commander is going to be advised by a trial counsel, a 
prosecutor, if you will, in civilian terms, that's a specialist 
in general and in sexual assault prosecution. We're going to 
use every tool at our disposal to hold that individual 
accountable so that they don't walk. That's what every 
commander is going to do.
    So if there is a sexual assault-related article that they 
can be held accountable towards with a reasonable expectation 
of success, they're going to use that charge. But reporting and 
then prosecution are two different things, I think, in general. 
So the reporting I see as unrelated. But I may be 
misunderstanding your question.
    Senator Duckworth. I think you are. What I'm asking is, for 
the average troop, sailor who is the victim of sexual 
harassment or sexual assault, one of the things that can happen 
is that the perpetrator is saying, ``Well, yeah, but you were 
drinking underage. If you report this, you're going to be 
prosecuted for underage drinking,'' or ``You're going to be 
prosecuted for fraternization.'' That threat itself, the 
validity of that threat will prevent the victim from reporting. 
Is there any move towards some sort of ability to lower those 
barriers, such as immunity or deferral of action, so that the 
average troop knows even if you are drinking underage, you need 
to come forward and report, because we're not going to pursue 
that and you're not going to get an other than honorable 
discharge because you reported this, not because of the sexual 
assault reporting, but because of the underage drinking?
    Lieutenant General Kelly. Senator, I'll add in to that 
discussion, we do think there's a barrier there. We do think 
that inhibits reporting. So, as General Rocco said, any chance 
there is to increase the reporting, we're for.
    So at our Air Force Academy, for instance, there's already 
training ongoing with our commanders and folks out there that 
talk about deferral of punishment and immunity, if you will, 
maybe not in those words used, but to allow folks to come 
forward and report knowing that there wouldn't be a--the focus 
would not be on the acts that occurred by the member, but on 
the actual perpetrator.
    We're trying to bring that into the rest of the force as 
well, and I do think there is a case-by-case discussion for 
those kind of things, but we recognize that, and that's ongoing 
to make sure that we can increase reporting.
    Senator Duckworth. Thank you.
    I've not very much time left, but if you could answer for 
the record this question. The greatest fighting force on the 
planet needs the most talented people. From cybersecurity to 
medical services, reports indicate that the Services are facing 
an increasingly smaller talent pool and must compete with a 
robust job market. This difficulty coincides with increasing 
demands placed on the U.S. military. Last year, for example, 
Secretary Mattis established the Close Combat Lethality Task 
Force, which identified the need to recruit and retain 
servicemembers specifically for close combat infantry.
    How are you adapting your recruiting efforts within this 
environment to meet the personnel objectives of Department 
initiatives such as the Close Combat Lethality Task Force, and 
are there additional authorities or resources that you might 
require in order to become more competitive within today's job 
market? If you could do that for the record, I'd really 
appreciate it. Thank you, gentlemen.
    [The information referred to follows:]

    Lieutenant General Seamands. Recruiting missions will 
remain challenging based on low unemployment levels and low 
percentages of young adults (17-24 year olds) meeting Army 
requirements and having a propensity to serve. We have made 
significant changes to our accessions enterprise by 
revitalizing and focusing our accessions force structure, 
marketing, social media, and information management systems in 
order to successfully recruit in this market. A synchronized 
and sustained effort will be critical to meet both end strength 
and Army Manning Guidance that directs filling our Modified 
Table of Organization & Equipment (MTO&E) force at 100 percent. 
We thank Congress for supporting our accessions mission and we 
do not require additional authorities or resources.
    Vice Admiral Burke. Today's job market is having less 
impact on officer recruiting, which remains strong despite 
challenges in a few areas, such as Reserve medical officers, 
than on enlisted recruiting where the greatest impact is in the 
high-quality market among youth who enjoy many employment 
alternatives and greater opportunity for post-secondary 
education. This is exacerbated by the fact that the percentage 
of 17-21 year-old youth who qualify for Military Service is 
declining, while the absence of academic ability required for 
some jobs further limits the pool of eligible candidates. The 
most difficult programs to fill for Active Duty enlistments 
include Nuclear Field, Naval Special Warfare, Information 
Warfare, and Advanced Electronics/Computer Field. We are 
adapting our recruiting strategy to attract more candidates to 
fill the high-quality jobs needed to improve fleet readiness 
and lethality. Our new marketing and advertising campaign, 
``Forged by the Sea,'' targets that market. We have also 
increased enlistment bonuses for hard-to-fill ratings, offering 
several bonuses up to the Department of Defense policy limit of 
$40,000, and increased the number of recruiters, dedicating 
some to the high-quality market, and providing incentives to 
all recruiters to attract high-quality applicants. We are also 
targeting the Centennial generation (born after 1997) who spend 
far greater time consuming digital media than broadcast or 
print media. About 70 percent of our media budget is committed 
to digital and mobile platforms and social media applications--
such as Snapchat, Twitter, and text messaging--most commonly 
used by today's youth. We continue to evaluate the efficacy of 
our tool kit for competing in the marketplace. As the need for 
additional resources or authorities is identified, we will 
include appropriate requests in future President's Budget 
submissions or Defense Authorization requests.
    Lieutenant General Kelly. Air Force Recruiting is adapting 
within the employment environment with existing authorities and 
resources. The Air Force stood up the 330th Special Warfare 
Recruiting Squadron (330th RCS) headquartered in San Antonio, 
TX. This squadron is directly responsible for recruiting 
civilians into special warfare and combat support career 
fields. Once on Active Duty, recruits transition to the newly 
developed Special Warfare Training Wing at Lackland Air Force 
Base, TX for initial skills training. This model was developed 
to better recruit, develop, and train special warfare and 
combat support airmen. The 330th RCS's efforts have helped to 
increase Special Warfare candidate quality, lower attrition as 
a percentage of accessions, and decrease pipeline cost by 
reducing wasted resources on candidates with low probability of 
success. The Special Warfare recruiting effort operates along 
three lines of effort: Scout, Recruit, and Develop. Scout: 
Working a pilot contract solution to help identify demographics 
with high propensity of Special Warfare training success, and 
exploit relationships with key influencers to raise Special 
Warfare awareness. Recruit: In November 2017, 96 recruiters 
were appointed from within recruiting to specialize in Special 
Warfare accessions. The 330 RCS activated on 29 June 2018, will 
be fully mission capable in May 2019, and is a direct reporting 
unit to AFRS/CC dedicated exclusively to Special Warfare 
accessions. Develop: The Development Contract employs former 
Special Warfare operators to administer the Physical Ability 
Stamina Test (PAST), develop candidates physically and mentally 
and provide go/no-go, whole-person assessment on candidates' 
suitability to enter training. The 330th RCS employs the SOF 
truths that ``Quality is better than quantity,'' and ``SOF 
cannot be mass produced.'' The model ensures that candidates 
are fully committed, informed, and show resolve prior to 
shipping to training. Through targeted recruiting and Special 
Warfare development, the 330th RCS has met shipping goals and 
raised candidate success through the Course of Initial Entry 
(COIE) by 200 percent. The Special Warfare community reduced 
overall accession goals, which has allowed the quality model to 
build to capacity and foster competition among those awaiting 
training. All production indicators are trending positively as 
additional changes are underway. Allowing the current changes 
to take effect before changing additional variables will 
determine effectiveness. The Scout pilot will be an unfunded 
request for fiscal year 2019 and will run for 1-2 years. At the 
expiration of the 1-2 year pilot, a permanent contract solution 
will be utilized.
    General Rocco. Today's investment in recruiting provides 
the Marine Corps with the ability to engage with and recruit 
the quantity and quality of new accessions needed to meet 
future operational needs and to improve lethality. Marine Corps 
Recruiting Command personnel are committed to supporting the 
institution and reaching out to highly qualified prospects; 
marketing and advertising are key components to MCRC's mission. 
With adequate funding and cost-effective lead generation 
programs directed to address the increasing number of critical 
audiences, to include our diversity outreach engagements, the 
Marine Corps ensures it achieves the nationwide awareness 
required to differentiate the Corps from service and industry 
competitors. It costs the Marine Corps approximately $11,000 to 
deliver one recruit to entry-level training and MCRC's total 
operating budget has remained approximately $200 million for 
the last 5 years. Resourcing our recruiting efforts 
appropriately is key to recruiting the high-quality men and 
women we need and our Nation expects.

    I yield back, Mr. Chairman.
    Senator Tillis. Senator Warren.
    Senator Warren. Thank you very much, Mr. Chairman.
    Thank you all for being here today.
    So I want to spend a few minutes today talking about an 
essential program that's run by the Department of Defense that 
is a critical part of our military readiness. Not many people 
know this: The Department of Defense runs the largest employer-
sponsored childcare program in the Nation. In fact, the program 
employs 23,000 workers who care for more than 200,000 children. 
The military childcare program is open to every military 
family, regardless of rank. It has high standards. It's 
designed to be affordable for every military family.
    So let me just ask, whoever would like to do this, maybe 
Admiral Burke, why is access to safe, affordable, high-quality 
childcare a crucial part of military readiness?
    Vice Admiral Burke. It's absolutely a part of military 
readiness, ma'am, because--and it's not a gender specific 
issue. It's a married couple issue. It's a family issue.
    Senator Warren. Family issue.
    Vice Admiral Burke. If you have children and you're 
deploying, and we have a preponderance of married folks in our 
service today. It's not a single, you know, servicemembers 
service anymore, and we have a preponderance of service to 
servicemembers.
    Senator Warren. Although I take it you also have single 
parents in the military as well.
    Vice Admiral Burke. We do. We do have a cross-section of 
those as well. Yes, ma'am. But childcare and the ability to 
deploy is an important factor, and even when you're not 
deployed, ability to work the long hours that we expect even 
when you're in a non-deployed status requires childcare.
    The fact of the matter is that childcare capacity is a 
nationwide challenge. Depending on where you're based, and this 
is not unique to the Navy, but the Navy happens to be in areas 
that are particularly childcare-capacity challenged--we have 
our limitations of the amount of capacity that we have to the 
military through the Navy childcare programs, but those 
commercial childcare capacities happen to be equally or even 
more challenged in the areas where our naval stations are.
    So it's particularly acute for the Navy. In fact, Navy's 
one of the main consumers of all of the Department of Defense's 
childcare capacity because of that reason.
    Senator Warren. So thank you. That's really important.
    There are a couple of other questions I want to ask by 
follow-up, but I want anyone to weigh in who wants to.
    An impressive 95 percent of the military's childcare 
centers are nationally accredited--compare that, by the way, to 
just 11 percent of nonmilitary centers across the U.S. So I 
want to ask the question, why does the military put so much 
emphasis on making sure that childcare accessed by military 
families is of very high quality?
    Lieutenant General Kelly. Senator, I'll start real quick 
for the team here.
    Senator Warren. Sure.
    Lieutenant General Kelly. Just take these statistics: 
Sixty-nine percent of our officers are married. Fifty-one 
percent of our enlisted are married. We have countless other 
single airmen who have families. 380,000 family members that we 
have to take care of. We're retaining families. Readiness for 
the Air Force is about making sure the entire family is 
comfortable and safe so that airmen can focus on their job and 
focus on what they do.
    This last year, we put $40 million more into our childcare 
programs: 119 new providers, 180 new family day care providers 
certified to do those things, bought new cameras for those 
places. It is an investment for us in readiness and capability, 
and we're going to continue to invest in that area.
    Senator Warren. Quality is a key part of that, keeping that 
quality up. Anybody else want to add on the quality part?
    General Rocco. Absolutely, Senator.
    Senator Warren. Please, General Rocco.
    General Rocco. They mentioned it, but I'll just reiterate 
it: It's a family issue. When the family is happy and secure, 
they're much more apt to work and readiness is impacted in a 
positive way.
    DOD childcare--and you mentioned the numbers--DOD 
childcare, it's very helpful for the family members to know 
that they've got quality, affordable childcare on base where 
their children are protected and secure. At the end of the day, 
the more we can do to benefit the families, to make them more 
secure--we expect a lot of our servicemembers; this is the 
least we can do for their family members.
    Senator Warren. Great. I have one more thing I want to 
cover with the chair's permission, and that is, when a military 
parent puts their child in the military's childcare program, 
they pay only a fraction of the actual cost based on income, 
and the DOD foots the remainder of the bill.
    Why is it so important for the Department that the 
childcare made available to military families is affordable?
    Lieutenant General Kelly. Senator----
    Senator Warren. Go ahead, General Kelly.
    Lieutenant General Kelly. Again, it's about taking care of 
those folks and making sure they have access. Given what we ask 
of the families and given what we provide in compensation, it's 
important for us to be able to offset that. In addition, even 
when we have 4500 airmen who have children and don't have 
capacity on base, we provide offset costs to them so they can 
afford their off-base childcare. It's just so essential to 
readiness and so essential to the quality of what we do to get 
out of our families and for attention we have to do that.
    Senator Warren. Good. I just want to say I think it's great 
that the child in the military family has access to high-
quality care at a price that they can afford, and I'm glad to 
hear the enthusiasm with which you all discuss this and the 
commitment that you've made to this. I believe every child in 
America should have that same kind of opportunity. Last week, I 
introduced a universal childcare and early learning program so 
that every child could get access to a program like that, and 
it's modeled off the program that you have built for the 
children of military families.
    I think your points about readiness are spot on exactly 
right, but they are the kind of thing that every family feels. 
Anybody trying to hold down a job to finish an education, to 
take on tougher work for a promotion, they all worry about 
their children. They all need access to the kind of care that 
you're making sure our military families have. So thank you for 
all you're doing. I hope we can use you as a model and make 
that available to all of our kids. Thank you.
    Thank you, Mr. Chairman.
    Senator Tillis. Thank you, Senator Warren.
    I went to the end to allow some of the other members to go.
    Senator Warren. I appreciate it.
    Senator Tillis. This is my opportunity to ask a couple of 
questions.
    First, I'm glad to hear about the progress on childcare. I 
can't wait until the homes that some of those kids come back to 
also get a good progress report. I'll take another jab in terms 
of the military housing issue that we've got to deal with.
    General Seamands, you know, we've had some discussions 
about the end strength numbers. I know you didn't hit your 
recruiting numbers. I had a discussion last week with Secretary 
Esper. Give me an idea, first off, I think for the benefit of 
the group, I know some of the things that you're doing to 
confront the challenge and build the pipeline, but also give 
the committee some insights into targets for next year and why 
you think they're attainable.
    Lieutenant General Seamands. Senator, thanks for the 
question. As you say, we did miss the target last year. We are 
working very hard this year to get after it. We've done a 
number of things.
    One, we've increased the number of recruiters to the tune 
of about 900 additional recruiters out there across our Nation. 
We have made the pivot to social media, getting after where the 
young men and women are instead of where they used to be. We've 
done a similar thing for the brick and mortar. We've put about 
$45 million into something that benefits all the Services as we 
move recruiting stations out of places where they used to be to 
where the young men and women are today. We've taken the 
opportunity to give officers the chance to have a second 
command, like a line command, and then a second command within 
the Training and Doctrine Command, so they bring that 
experience from the first command into that organization.
    We also have a focus on 22 different cities where the 
Secretary of the Army and the Army leadership will go out to 
where the recruiters are and have an event and focus on those 
areas--in some cases, places we had not used that effectively 
before--to show the Army brand and encourage young men and 
women to come in.
    It's a tough environment across the board for all the 
Services. We think this year we'll hit between 68 and 69 
thousand recruits, which is about what we hit last year, for 
our accessions. But this year we had fewer losses, based on the 
number of people that came in a couple years ago, and so we 
think the mission should be about 68, 69. We think that the 
steady, supportable, quality growth in the Army is about 2,000 
per year, and we think we can accomplish that in the out-years, 
moving toward 500,000 as an eventual end strength for the Army.
    A tough environment. Our recruiters are doing amazing 
things out there. We give Recruiting Command a mission, but, 
Senator, it's not Recruiting Command's mission; it's actually 
the Army mission. As I fly on commercial aircraft, I talk to 
the people next to me. When I'm on the Metro, I talk to people. 
I think everybody in the Army, as well as veterans and 
retirees, I challenge them to have the same commitment to 
bringing future soldiers into our force.
    Senator Tillis. Our TAG [The Adjutant General] down in 
North Carolina was on the Senate steps today. I saw him trying 
to build a pipeline of seventh graders from North Carolina, so 
I can attest to you all trying to do the two hats.
    [Laughter.]
    Senator Tillis. General Rocco, it's very seldom in opening 
statements that you talk about specific geographies as a 
priority, and you mentioned Camp Lejeune and the 500 or so 
houses, or buildings, I should say, that are damaged or 
uninhabitable. Can you just explain again why, you know, this 
isn't--I happen to be from North Carolina. Why not talk about 
the need for the supplemental funding and getting the resources 
in there, why this is critical to the general readiness of our 
folks down in North Carolina?
    General Rocco. Thank you, Senator Tillis.
    Camp Lejeune is our major base on the East Coast. The force 
generation out of--which is the home of the II Marine 
Expeditionary Force. So when you talk about readiness and force 
generation from the Marine Corps perspective, that's well over 
a third of the generating force generation capability inside 
the Marine Corps.
    Those 500 buildings that I mentioned, it's not PPV, it's 
not housing. That's a separate issue. That is all the buildings 
and facilities that the marines use to train with, to train 
from, to fly aircraft out of, to fix aircraft.
    I spoke to a doctor today who just recently--an 
ophthalmologist who just recently moved her clinic back into 
spaces. Florence was many months ago, and they've been either 
not operating or operating out of, basically, trailers, 
supporting marines, and you know that they're not getting the 
support that they would get. It's taken that long to just move 
a clinic, a medical clinic, into spaces that are habitable.
    Senator Tillis. So it's fair to say that regardless of 
whether you're in Camp Lejeune or across the world, if you're a 
marine, you consider this a priority for the whole corps, not 
just for a place that got hit by a hurricane.
    General Rocco. Absolutely. It is not localized--it's North 
Carolina, but it's not localized. Those marines deploy 
worldwide. That's why it's a worldwide issue.
    Senator Tillis. Thank you. The other advantage to going 
last, it seems like I'm being courteous, but I can go over and 
not have to apologize to anybody.
    [Laughter.]
    Senator Tillis. So, General Kelly and Admiral Burke, I want 
to talk a little bit about some of the personnel changes and 
offer of the expanded spot promotion authorities, some of the 
things that we put in the last NDAA. And either tell me about 
how it's already working or how you expect it to work and 
produce better results. We'll start with General Kelly.
    Lieutenant General Kelly. Thank you, Senator, for the 
opportunity, and again, thanks for the support of those DOPMA 
authorities that you provided to us.
    You know, often we create new missions or we create new 
goals inside the Department; for instance, cyber was an 
emerging mission and we created cyber mission teams at our 
combatant commands. When we did that, there was an instant 
desire to have experienced and usually mid-grade officers 
provided in those areas. The DOPMA authorities that you 
provided help us get after that. Because normally they would 
say, ``How can you get me 300 more 0-4s to fit in that job?'' 
The answer is, ``Wait 12 years'' normally, ``and I'll give you 
300 more 0-4s.''
    Now with the authorities that you've provided to us, what 
we're moving out and doing is we're using constructive credit 
to bring folks over. We brought several of our enlisted members 
over who already had advanced cyber degrees over, able to 
credit them at a higher rank, bring them into and fill some of 
those gaps and holes. The same thing with the temporary 
promotion authorities or early promotion authorities, that 
we're able to reach in, find holes in places within the 
inventory where we have shortages, and apply those DOPMA 
authorities going forward. We see the same things with some of 
the other ones that we haven't yet integrated but will be doing 
shortly in the future.
    Senator Tillis. We're looking for feedback to the committee 
on things that we've learned that we need to adjust or expand, 
so please keep the suggestions coming.
    Admiral Burke.
    Vice Admiral Burke. Sir, we've used the merit promotion 
reorder on our 0-6 and 0-5 boards, which met in January and 
earlier this month in February. We'll use it in our 0-4 boards 
in April. Widely popular, the idea of merit and getting 
promoted and paid a little bit earlier based on what you've 
done lately rather than your lineal number from way back when.
    The constructive credit option and lateral hiring, we've 
put that into place. Have not used it yet, but for cyber 
warfare engineers, engineering duty, and a couple of restricted 
line programs, the ``up and stay,'' as we're referring to it 
colloquially, but the ability to take a selected oath reason 
and not have to repeatedly go through a continuation, we used 
that for a program that our pilots repeatedly said, ``Hey, if 
you could let us fly forever, we wouldn't leave the Navy.'' So 
we're calling them on it, and we'll see if they really will.
    But we selected 25 aviators that had intended to separate, 
and in November, we made the selections. They're now flight 
instructors. That's 25 people that were leaving the Navy. 
That's 25 fewer first-term naval aviators that I don't have to 
pull from the fleet now to go make flight instructors that we 
used that authority for. So helping out with my aviation 
retention problem directly because of that one.
    The promotion deferral, just timing-wise I won't be able to 
use that until next year, but we're poised to use that for next 
year. But we're really grateful. We'd like to get some run time 
with these and report back to you. But I expect to have some 
really good news for you on all of them.
    Senator Tillis. Very good. Thank you all. We're going to 
transition to the next panel, and I'm just going to defer the 
question, but I will tell you, I don't know if you all intend 
to be around for the next panel, but we were looking at the 
opt-in rate for the Blended Retirement System that we 
implemented, and there's a vast disparity, particularly between 
the Marines, which is close to three-quarter opt-in, and the 
Army, which is close to one-quarter opt-in. Navy and Air Force 
it's somewhere in between.
    But really want to, with the--I'm giving the next panel an 
opportunity to think through and answer that question because I 
think we had some folks with mixed emotions about whether we 
should even do it. But I'm kind of interested now in the 
disparity and just want to let you all know that's something 
that I want to look at because if we need to make adjustments 
or look at the root causes for why we have a disparity in opt-
in rates, and that's something I want to work on this year.
    Thank you all for being here, your continued service, and 
also thank you for the visits and work with our staff.
    We're going to move to the second panel. We'll give a 
couple of minutes to allow the staff to transition.
    Gentlemen, thank you all for being here, and thank you for 
your past, current, and what I'm sure will be future service.
    I want to introduce the second panel: Sergeant Major of the 
Army, Daniel Dailey; Master Chief Petty Officer of the Navy, 
Russell Smith; Master Chief Sergeant of the Air Force, Kaleth 
Wright; and Sergeant Major of the Marine Corps, Ronald Green. 
Thank you all for being here. I am not going to make any 
opening statement, just transition right to yours.
    Sergeant Major Dailey.

  STATEMENT OF SERGEANT MAJOR DANIEL A. DAILEY, USA, SERGEANT 
                       MAJOR OF THE ARMY

    SMA Dailey. Thank you, Senator.
    Chairman Tillis, Ranking Member Gillibrand, distinguished 
Members of this Subcommittee, thank you for the opportunity to 
speak on behalf of nearly 2.3 million soldiers, families, and 
Army civilians who make our All-Volunteer Force the world's 
premier organization. I'm truly honored to provide an update on 
the quality of life of your U.S. Army.
    The Army is grateful for Congress' support in advancing 
Army readiness, modernization, and reform. The Army has more 
units ready than any time in recent history. Army readiness is 
our number one priority. I am prepared to discuss a number of 
efforts we have brought to bear as we improve readiness across 
the total Army. This includes, but is not limited to, extending 
Infantry One Station Unit Training, increasing Combined 
Training Center rotations, and implementing the Army Combat 
Fitness Test.
    Our ready Army requires the recruitment and retention of 
quality personnel, and we are currently on track to achieve our 
fiscal year 2019 recruiting goals for all three components. In 
addition, our Army produced historic retention rates of over 90 
percent of the eligible population of the Army last year, and 
we're on track to do the same for this year. The Army continues 
to build the best possible All-Volunteer Force by selecting the 
best qualified soldiers capable of meeting the rigors of Army 
standards. This commitment to standards is clearly demonstrated 
by the more than 1,000 women serving in our combat arms 
formations today.
    The Army strives to provide an environment of dignity and 
respect for all servicemembers and is fully committed to 
eliminating sexual assault. We recognize that regardless of the 
progress that we have made, more work still needs to be done. 
These acts are unacceptable and we will continue to engage 
leaders at all levels to inspire a culture of commitment to 
Army values.
    To better prepare our soldiers to meet the rigors and 
demands of a complex and unpredictable world, we have taken a 
comprehensive approach to health, nutrition, and fitness 
through programs such as the Holistic Health and Fitness 
System. Through these initiatives, we will be able to provide 
soldiers the opportunity to increase their personal readiness 
and live healthier lives.
    Our Soldier for Life initiatives are a critical aspect of 
Army readiness. This is evident in the tremendous improvements 
to our transition assistance program, and through our combined 
efforts, we have made significant investments in professional 
military education, academic equivalency, the career skills 
program, individual skills initiatives, and partnerships with 
industry and academia. As a result, we reduced unemployment 
compensation, which reached $515 million at its height in 2011, 
to less than $100 million today. Through our commitment and 
efforts, I believe we will continue to see a reduction of this 
over time. These efforts have not just saved money, they've 
built readiness within the Army and strength in our Soldier for 
Life programs.
    The Army has made significant efforts to improve quality of 
life based on feedback from the force. These updates intend to 
help build financial readiness, unburden the PCS process, 
create efficiency in childcare services, and enhance other 
critical support services. These changes reaffirm our 
commitment to providing the best possible support to our 
people.
    Childcare, in particular, is a significant issue, as it is 
our single largest investment within family programs. The Army 
is actively working to reduce civilian hiring times and improve 
the background check and adjudication process to help reduce 
shortages for childcare providers. We're also working to make 
it easier for childcare providers to transition from one 
installation to another without having to repeat the hiring and 
background check. And as many of our childcare providers are 
soldiers' spouses, initiatives like these enable us to take 
care of our children but also provide much-needed employment 
opportunities for them.
    Lastly, I assure you the Army is committed to improving the 
quality of living in our Army housing. We accept the 
responsibility for the current state of Army housing, and we 
will regain the trust of our soldiers and families through 
immediate, tangible actions that have already begun. We are 
implementing comprehensive measures to ensure proper oversight, 
identify unsafe living conditions, and improvement of our work 
order processes that have immediate results. The Army will 
improve the authorities associated with the enforcement of our 
privatized partnership requirements, review existing agreements 
and policies, and we will ensure that no reprisals against 
soldiers and families who share their concerns with the chain 
of command will occur.
    The bottom line is the Army is committed, and we will 
continue to take immediate actions to further protect our 
soldiers and their families. The senior leadership of the Army 
leads a daily action team, receiving statuses from across our 
Army on the progress that we are making, and we are committed 
to providing safe, healthy living standards on all of our 
installations. As the Army continues to balance its priorities 
for lethality, readiness, and modernization, we must keep our 
soldiers and their families in mind and maintain the quality of 
life momentum that we have collectively built.
    As always, we thank Congress for your support and your 
continued investments in our number one resource, our 
incredible team of soldiers, families, and civilians. I 
appreciate the opportunity to speak before you today and I look 
forward to continuing our dialogue. This We'll Defend. Army 
Strong.
    [The prepared statement of Sergeant Dailey follows:]

         Prepared Statement by Sergeant Major Daniel A. Dailey
                              introduction
    Chairman Tillis, Ranking Member Gillibrand, distinguished Members 
of this Subcommittee, thank you for the opportunity to speak on behalf 
of nearly 2.3 million soldiers, families, and the Army civilians who 
make our All-Volunteer Force the world's premiere organization. I am 
truly honored to provide an update on the quality of life for the men 
and women of your U.S. Army with whom I so proudly serve.
    The Army is grateful for Congress' support for the fiscal year 2018 
and fiscal year 2019 appropriations. This funding will go a long way in 
advancing Army readiness and modernization consistent with the National 
Defense Strategy. Based on budgetary increases, the Army has more 
units, more ready, more often than any time in recent years past.
    Our budget requests reflect the Army's priorities: grow and 
maintain a ready high-end force, build our future force through key 
modernization efforts, continue to take care of our people, and 
institute reforms that lead the Army to be even better stewards of 
taxpayer dollars. One of the Army's focused priorities is reform to 
ensure we are earning the trust of the American people, prudently 
spending our allocated resources, and aggressively seeking 
opportunities to improve our efficiency.
    In order to provide the assured capabilities necessary for us to 
deploy, fight and win, we must maintain the requisite personnel and 
family readiness programs necessary to sustain the Total Army's quality 
of life. Personnel readiness is critical to the Army's success, and we 
must continue to provide care and resources from the best programs 
``Total Army'' available to support our All-Volunteer Force.
                               readiness
    Ready forces ensure that the Army can compete against our 
adversaries, deter conflict and win decisively. So, it is no surprise 
my Secretary and Chief continue to emphasize readiness as our number 
one priority. We build readiness by sufficiently manning, training, and 
equipping our soldiers.
    Building readiness is predicated upon every soldier being able to 
deploy. We have made strides in reaching that goal over the past year. 
Unit commanders improved medical tracking, implemented unit injury 
prevention and physical therapy programs, and established enhanced 
readiness personnel accounts.
    The outcome of these commander-led efforts is more units prepared 
for war. By focusing our training efforts, we have increased soldier 
lethality and maintained our competitive advantage in the current 
security environment.
    We have also brought a number of efforts to bear as we rebuild 
readiness across the Total Army. To develop more lethal, disciplined 
and resilient soldiers, we added 8 additional weeks to Infantry One 
Station Unit Training. This will help young soldiers build on combat 
fundamentals and better prepare them to operate effectively when 
joining their units.
    The Army Combat Fitness Test (ACFT) will be implemented to ensure 
soldiers are physically fit and mentally tough enough to meet the 
rigors of combat. We believe it will change the Army's fitness culture, 
and reduce preventable injuries and enhance mental toughness. 
Additionally, the ACFT will help further reduce nondeployables, which 
was at 15 percent in 2015; today, we are at approximately 7 percent.
    Thanks to resources provided by Congress, we were able to increase 
the number of Combined Training Center rotations to over 20 per year. 
These increased training opportunities, including the doubling of 
select Army Reserve and Army National Guard units, was key in 
substantially increasing readiness.
    Finally, we've taken great measures to reduce non-essential 
training and tasks. Secretary Esper consolidated, reduced, or 
eliminated dozens of required activities, re-allocating a resource we 
can never replenish--time. This has granted our formations more time to 
spend building and sustaining combat readiness.
    Overall, fiscal year 2017 and fiscal year 2018 authorizations and 
appropriations enabled readiness improvements in training--we are 
grateful to Congress for that.
    As a result of that support, 28 Army Brigade Combat Teams (BCTs) 
were at their highest state of readiness at the end of fiscal year 
2018, as compared to 19 BCTs at the end of fiscal year 2017. We will 
continue to train to standard as a means of sustaining those readiness 
gains.
    Barring a significant increase in demand for land forces, coupled 
with continued stable and sufficient funding, we will remain on track 
to meet our readiness recovery goals by fiscal year 2022. In order to 
meet those goals, we will continue to require predictable, consistent 
funding to maintain the momentum we have built.
                             modernization
    The goal of the Army Modernization Strategy, submitted to Congress 
in 2018, is to increase the lethality of soldiers and units in combat. 
Through a clear, driven strategy, the Army's modernization efforts have 
already begun to streamline and accelerate acquisition, while rapidly 
delivering warfighter capabilities to the force.
    The July 2018 establishment of Army Futures Command, our most 
significant reorganization since 1973, continues to work toward 
reducing the requirements development process from approximately 5 
years to 18 months which will benefit today's soldiers and the future 
force.
    Leveraging Cross Functional Teams (CFTs), we shifted significant 
science and technology funding to the Army's six modernization 
priorities. Those CFTs focus on the Army's six priorities of Long-Range 
Precision Fires, Next Generation Combat Vehicle, Future Vertical Lift, 
Army network, air and missile defense, and soldier lethality.
    Our CFTs have already demonstrated the capability to shave time 
from anticipated acquisition timelines, allowing us to maintain pace 
and stay ahead of our potential adversaries. Ultimately, modernizing 
for tomorrow's fight leads to equipment and vehicles reaching our 
soldiers and units more quickly, enhancing their lethality to deploy, 
fight, and win our Nation's wars.
    Also part of the Army's modernization efforts, the Integrated 
Personnel and Pay System-Army, an online human resources system, will 
provide integrated personnel pay and talent management capabilities in 
a single system. It provides three capabilities: total force 
visibility, talent management, and auditability by consolidating over 
200 human resources and pay systems.
    This is part of our new Talent Management strategy which will match 
the knowledge, skills, behaviors, and preferences of Army personnel 
with suitable jobs across the Total Army. By better understanding the 
talent of the workforce, the Army can maximize soldier's talents to 
allow the placement of the right soldier, in the right job, at the 
right time.
    Better management of the Army's talent marketplace will yield 
benefits such as new capabilities, cost savings, and new human capital 
investments, along with increased productivity. Led by our Talent 
Management Task Force, established in 2016, this strategy developed a 
more deliberate Talent Management system that demonstrates our 
institutional adaptability and our strength as a learning organization.
    Through these efforts, Army modernization will improve the impact 
of every dollar spent, exemplifying our commitment to being good 
stewards of resources appropriated by Congress.
                                 reform
    The Army has aggressively implemented reforms to free up time, 
money and manpower for our highest readiness and modernization 
priorities. Our reform initiatives empower subordinate commanders to 
make more effective, timely decisions. Through acquisition reform, 
scrutinized contract management, and closely monitored contract 
services, we will increase efficiencies and enhance the impact of every 
dollar spent.
    Through the Army Reform Initiative, we have garnered over 700 ideas 
to eliminate, delegate, consolidate, or streamline Army policies, 
programs, and practices. This has saved precious resources for higher 
priorities.
    The Army is also on track to save hundreds of millions of dollars 
by reducing contract redundancies and improving competition processes.
    The establishment of Command Accountability and Execution Review, a 
senior commander program with oversight from the Secretary and Chief, 
has optimized the purchasing power of our operating budget. It 
leverages monthly venues to focus on supply chain, transportation and 
contract management at multiple echelons. This approach has generated a 
marked improvement in the efficiency with which we execute the Army's 
budget.
    The Army is also taking steps to improve business practices and 
management resources. In fiscal year 2018, we conducted our first full 
financial statement audit, to include sensitive and classified 
activities. We are aggressively implementing necessary corrective 
actions to address auditor findings and ensure the Army is transparent, 
auditable, and most importantly, accountable to Congress and the 
American people with timely, accurate accounting information.
                               personnel
    This year, fiscal year 2019 accession missions are 68,000 for the 
Active component; 15,600 for the Army Reserve; and 39,000 for the Army 
National Guard. These missions will be significantly challenging for 
all three components since only 29 percent of young adults, between the 
ages of 17 to 24, meet the Army entry requirements to serve without 
requiring a waiver.
    The fact that only 13 percent of young adults have a propensity to 
serve further complicates recruiting efforts. However, we are on track 
to achieve fiscal year 2019 recruiting goals for all three components. 
In order to better address challenges in the recruiting environment, 
the Army has streamlined its recruiting efforts and resources.
    To increase unity of accession efforts and funding, the commanding 
general for Training and Doctrine Command was designated as the senior 
responsible official for accessions strategy and goals tied to end 
strength increases.
    We have implemented a new accessions campaign with 22 focus cities, 
upgraded accessions information technology bandwidth, increased social 
media through e-gaming venues (e-sports), improved micro-marketing, and 
produced new advertisements and commercials.
    We have also instituted key recruiting initiatives such as 
increased recruiter strength, more robust training capacity, maximum 
use of enlistment bonuses, and the improvement, upgrading, and 
relocation of recruiting centers.
    The Army remains committed to quality over quantity and maintaining 
standards of excellence in order to build a ready force. Our stringent 
standards exceed Department of Defense requirements, thereby ensuring 
we are well above their stated guidelines for recruiting. This ensures 
we are recruiting America's most qualified, talented young people to 
serve our Nation in uniform.
                         nutrition and fitness
    In order to meet the rigorous demands of an ever-changing global 
environment, where the Army can be called upon to serve under any 
combat condition, we must ensure our soldiers are prepared. This 
requires a comprehensive approach to health, nutrition, and fitness 
using evidenced-based strategies to optimize the ground combat power 
readiness of each and every soldier.
    The Holistic Health and Fitness (H2F) System does this by 
synchronizing all physical fitness and health initiatives, and legacy 
systems used throughout the Army. Research demonstrates how performance 
nutrition, body composition management, psychological and emotional 
health, and sleep contribute to optimal physical performance.
    H2F is composed of five enduring elements: governance, programming, 
equipment, personnel and leadership education. These elements are 
essential to the future success of Army readiness; as part of the 
system, their goal is comprehensive support of the physical, mental and 
spiritual aspects of soldier readiness.
    Regarding nutrition, agencies such as AAFES [Army & Air Force 
Exchange Services], the Defense Commissary Agency, Army Joint Culinary 
Center for Excellence, Army Sustainment Command, Medical Command dining 
facilities, and Installation Management Command, are part of a 
tremendous group of stakeholders in a coordinated effort called Healthy 
Army Communities.
    The first priority of this effort is to get our soldiers back to 
eating in dining facilities. Healthy Army Communities is paving the way 
for consistent and sustainable change across the Army.
    The Army has also adopted the Go for Green Program, a DOD dining 
facility nutrition education program. This nutritional recognition 
labeling system provides soldiers in the serving line with posters and 
menu cards for a quick assessment of the nutritional value of menu 
offerings and food products in the dining facility. The menu offerings 
and food items are color-coded with labels providing recommended 
frequency of consumption based on the impact the food can have on a 
soldier's performance.
    Through these initiatives, and with more predictable funding in 
fiscal year 2019, we will be afforded the opportunity to provide 
soldiers with opportunities for healthier food options.
                      select-train-educate-promote
    The Select-Train-Educate-Promote policy, also known as STEP, 
represents the Army's investment in our soldiers' professional military 
education through a deliberate, continuous and progressive process. 
Since 2008, the Army has required master sergeants to graduate from the 
Sergeants Major Course before attaining eligibility for promotion to 
sergeant major. On January 1, 2016, we expanded a similar standard for 
promotion eligibility to all noncommissioned officer ranks.
    STEP requires all soldiers to complete the appropriate level of 
formal military education before being determined fully qualified for 
promotion to the next NCO rank. This policy has effectively eliminated 
conditional promotions, and created an organizational framework to 
develop the next generation of competent and committed NCOs who have 
been appropriately trained as leaders.
    Before we implemented STEP, the Army experienced a backlog of 
nearly 14,000 Active Duty soldiers eligible for promotion who had not 
completed the requisite level of NCOES [Non-commissioned Officer 
Education System]. In short order, we reduced that backlog to 
approximately 1,800 soldiers. This also improved promotion 
opportunities for soldiers who were willing to work hard to meet all of 
the necessary requirements and complete the requisite level of 
professional military education to become fully qualified.
    STEP has clearly demonstrated its value as an investment tool which 
will allow the Army to continue developing educated and competent NCOs 
to lead the future force. Through this, and other initiatives such as 
NCO 2020, America's Army will continue to have the best, most educated 
enlisted force in the world.
                               retention
    The Army is on a glide path to again exceed its Active component 
retention mission. Our combined efforts produced historic retention 
rates of over 90 percent of the eligible population of the Army last 
year. Through strong, engaged leadership, our soldiers have 
demonstrated motivation and enthusiasm to serve unlike any time in 
previous years.
    I am confident our retention rate is directly linked to trust in 
Army leadership, positive quality of life, and moreover, each and every 
soldier's value of service to America. If this was not the case, we 
likely would not have 90 percent of the eligible population and 86 
percent of the total population re-enlisting to serve in America's 
Army. Each component is set to accomplish their respective retention 
missions while maintaining quality standards, and meeting critical NCO 
requirements.
    These achievements would not be possible without the support of 
Congress. The Army recognizes that part of these achievements is the 
collective investment we have made in our soldiers, families and 
civilians over the past 2 years. An important part of our efforts comes 
with improvements to, and the preservation of, soldier and family 
readiness programs.
                                 sharp
    The Department of Defense released its annual report on Sexual 
Harassment and Violence at the Military Service Academies (MSAs) for 
Academic Program Year (APY) 2017-2018 on January 31, 2019. In alignment 
with DOD/Army goals, sexual assault reporting at the United States 
Military Academy (USMA) increased for the fifth straight year. In APY 
2017-18, there were 56 reports of sexual assault; 43 unrestricted 
reports (UR) and 13 restricted reports (RR). This is an increase from 
50 reports in APY 16-17. Of the 56 reports, 6 percent were for an 
incident that occurred prior to their arrival at USMA.
    The increase in sexual assault reporting is a result of several 
deliberate steps USMA took to increase reporting. It is believed these 
steps are continuing to increase trust in the chain of command and 
response services.
    Disappointingly, past year prevalence of unwanted sexual contact 
increased from 14.5 percent to 16.5 percent for female cadets and from 
1.4 percent to 3.4 percent for male cadets over the previous academic 
year. This is unacceptable, and we will continue to engage leaders at 
all levels to inspire a culture of mutual respect, trust and personal 
commitment to the Army values. We are committed to eliminating sexual 
assault and fostering a culture of dignity and respect for every 
soldier.
    USMA's approach to improving its culture is part of a long-term and 
deliberate effort through their leadership development system. West 
Point remains committed to providing relentless, persistent focus on 
character development, education, awareness, vigilance, and discipline.
    Of those cadets who experienced unwanted sexual contact, 18 percent 
reported the incident-an increase from 15 percent in APY 15-16. I 
believe this is a strong indication that our cadets have trust and 
confidence in their leaders.
    USMA is committed to a long-term environment of dignity and 
respect, and has begun engaging incoming classes this past year to 
provide them with training about the SHARP [sexual harassment assault 
response program] program, resources, policies and reporting options, 
in order to proactively address sexual violence.
    For the Army as a whole, we are working from the bottom up by 
investing in first-line leaders through our ``Not in My Squad'' (NIMS) 
initiative, which began about 2 years ago. Research has determined that 
squad leaders have the greatest impact on units, the individual soldier 
and the organizational climate.
    The NIMS initiative specifically focuses on empowering squad 
leaders and junior NCOs to build mutual trust and cohesion at the squad 
and team level. We want squad leaders to accept responsibility for the 
discipline and standards of their soldiers.
    We've spread NIMS across the entire Army to our 27 ready and 
resilience campuses across our major installations. In the first 
quarter of 2019, we've conducted 17 workshops with research already 
showing a return on investment within our ranks. We will continue to 
invest in NIMS in order to capitalize on our progress toward ridding 
our Army of sexual assault and sexual harassment.
                    credentialing assistance program
    Leveraging our Soldier for Life program has allowed the Army to 
continue attracting quality recruits by offering credentialing 
opportunities to earn licenses and certificates for technical training.
    Through their Military Service, our soldiers become trusted and 
experienced professionals who rejoin their community with valuable 
employment skills following honorable service.
    One of their resources to accomplish this is the Army Credentialing 
Program, which allows them to capitalize on training and development 
opportunities throughout their military careers.
    Through this program, soldiers obtain industry-recognized 
credentials demonstrating individual competence that contributes to 
improved capabilities and readiness in our Army and local communities. 
It also empowers them to serve as ambassadors of the Army in those 
communities, promotes the hiring of Army veterans and inspires the next 
generation of soldiers.
    The Army takes great pride in enhancing our soldiers' transition to 
civilian life through innovative ideas such as the Credentialing 
Limited User Test (LUT). As the first phase of implementation of 
credentialing assistance, Secretary Esper, based on my recommendation, 
recently directed a LUT for self-directed credentialing to occur during 
fiscal year 2019 at Fort Hood, Texas.
    With assistance from Under Secretary of the Army Ryan McCarthy, 
this test began in the first quarter of fiscal year 2019 to validate 
processes and systems that will administer the program, gauge soldier 
demand, validate counselor training and forecast future requirements.
    The credentials available, as vetted by Human Resources Command, 
are expected to have minimal pre-requisites or education requirements, 
will be valuable for post-service employment, and obtainable by 
enlisted soldiers in their first or second term of service. Currently, 
all soldiers at Fort Hood are eligible to participate, and there are no 
restrictions to participation based on rank or component.
    Our Army Credentialing Assistance Program provides financial 
assistance for voluntary, off-duty training and education programs in 
support of a soldier's professional and personal self-development 
goals.
    The requirements for eligibility and participation are almost 
identical to those for the Army's Tuition Assistance Program, and 
participation will be subject to approval by a soldier's chain of 
command.
    Pending the success of the Credentialing Limited User Test, the 
Army is considering follow-on locations for additional testing, with 
implementation Army-wide as early as fiscal year 2020.
                            soldier for life
    Our Soldier for Life initiatives are critical to the readiness of 
our Army. This is evident in the tremendous improvements to our 
transition assistance efforts. From fiscal year 2010 through fiscal 
year 2012, the Army spent over $500 million a year on unemployment 
compensation, peaking in fiscal year 2011 at $515 million.
    With a continued emphasis on our Soldier for Life and credentialing 
initiatives, we are currently at less than $100 million in unemployment 
compensation today. We've made significant investments in professional 
military education, academic equivalency, the Career Skills Program, 
individual skills initiatives, and partnerships with industry and 
academia. These combined efforts are directly linked to an increase in 
the individual readiness of our soldiers while increasing their 
opportunities for service after Military Service.
    Our fundamental resolve moving forward is three-fold: develop the 
world's finest soldiers, enable them to become better citizens, and 
further strengthen our all-volunteer service. This is the true meaning 
of Soldier for Life. It means we value our soldiers' service to the 
Nation enough to ensure that America values their skills when they take 
off the uniform. I don't want to ask corporations in America to hire 
our soldiers. I want them knocking our doors down asking us.
                            family readiness
    On February 5, Secretary Esper announced a number of Army-wide 
updates to policies, based on feedback from the force, intended to 
improve quality of life and ease the burden on our soldiers and their 
families as they build financial readiness, PCS to and from their next 
assignments, secure childcare, and obtain many other critical support 
services.
    Through an AUSA-hosted [Association of the United States Army] 
family forum, and a consolidated webpage, these changes were 
communicated in real-time to the force, allowing further input, and 
reaffirming our commitment to providing the best possible support to 
our people.
    These initiatives include procedural changes to spouse employment, 
home-based businesses, childcare, the parental leave program, spouse 
credentialing, expansion of Family Readiness Group activities and 
events, the Exceptional Family Member Program (EFMP), the Total Army 
Sponsorship Program, and better accountability and quality assurance 
for the movement of household goods.
    Childcare, in particular, is a significant issue, as it is our 
largest single investment in family programs. The Army is actively 
working to reduce civilian hiring times and improve the suitability 
background check and adjudication process for childcare providers, 
which will help fill vacancies for childcare providers where shortages 
have a substantial impact.
    We have developed and implemented an assignments tools, which makes 
it easier for childcare providers to transition from one installation 
to another without having to go through the hiring and background check 
process again. We also have implemented a provisional hiring process, 
which allows us to more rapidly onboard applicants with no derogatory 
information in their FBI [Federal Bureau of Investigation] fingerprint 
check. We continue to make improvements in our adjudication timelines.
    Additionally, Secretary Esper recently signed a memo directing 
closer management of space available patrons in Army childcare 
programs, which requires space available patrons to relinquish their 
childcare space within 30 days when a higher priority patron needs the 
space. We continue to look at innovative ways to maximize limited 
childcare capacity. We remain committed to doing all we can to meet our 
families' needs.
    Lastly, the Army is analyzing data from housing surveys sent to 
families last month, and planning further improvements and significant 
investment to upgrade 100 percent of Army-owned family housing by the 
end of fiscal year 2026. Improving Army housing is a top priority for 
Army senior leaders, and we will remain transparent, as we continue to 
work with Congress and installation leadership to identify and address 
concerns.
    We have a detailed plan to get all 190 families out of Q4 housing 
by 2021. Additionally, the Secretary and Chief have directed an 
environmental hazard screening in Army owned/leased/privatized housing.
    They were also charged with consolidating and analyzing findings, 
and preparing a report of the results addressing concerns related to 
potential hazards.
    The bottom line is, the Army is concerned, and will continue to 
take immediate actions to further protect our soldiers and their 
families. Their well-being is paramount, and we are committed to 
upholding health and safety standards on all of our installations.
                preserving benefits and family programs
    One of my biggest concerns is the potential diminishing of benefits 
and family programs as budgetary decisions are made about the Army's 
future.
    As the Army continues to balance its priorities for lethality, 
readiness and modernization in a complex environment, we must remain 
vigilant and flexible to sustain the readiness of families and 
soldiers. We need Congress's support to fully fund soldier and family 
programs, and allow our commanders the adaptability to deliver specific 
programs for specific unit and geographical needs. It is of the utmost 
importance to not only keep faith with our soldiers, but their families 
as well, as Army families are the strength of our men and women who 
serve.
    The unique challenges a military family faces requires us to invest 
and safeguard a wide variety of family programs to ensure their needs 
are met. In addition to the support from the Army, our local 
communities and businesses often provide additional services to our 
families to ensure that, together, we reduce stress on them.
                                closing
    As the Army continues to balance its priorities for lethality, 
readiness and modernization in a complex environment, we must remain 
vigilant and flexible in sustaining the readiness of our soldiers and 
their families. Family readiness is Army readiness, and remains an 
enduring priority for the Army.
    It is critically important that we sustain our world-class soldier 
and family programs. They are a part of our commitment to our people 
and their quality of life. We must keep the impacts on them in mind as 
we make decisions about which people, services, programs and facilities 
to keep.
    That said, we thank Congress for the fiscal year 2019 budget that 
permits us to continue to guide those changes, improve readiness and 
make an increased investment in our future Army. That investment starts 
with the bedrock of our Army--soldiers, their families, and Army 
civilians. With timely, sufficient, predictable funding, we can 
continue to build toward our readiness goals, and take care of our 
Total Army Family.
    We are a standards-based organization accountable to Congress and 
the American people. The only acceptable outcome from our efforts will 
be a lethal, well-prepared, well-disciplined Army ready to carry out 
its mission.
    I appreciate the opportunity to speak before you today, and I look 
forward to continuing our dialogue. This We'll Defend. Army Strong.

    Senator Tillis. Thank you.
    Chief Smith.

STATEMENT OF MASTER CHIEF PETTY OFFICER RUSSELL L. SMITH, USN, 
             MASTER CHIEF PETTY OFFICER OF THE NAVY

    MCPON Smith. Chairman Tillis, Ranking Member Gillibrand, 
and distinguished Members of this Subcommittee, I am honored to 
appear before you today on behalf of the dedicated sailors of 
the United States Navy who serve on our global away team to 
meet the national security objectives and defend American 
values and families from all walks of life. Congress is a 
critical enabler of our Navy team. Through consistent, steady 
funding, oversight, and support, you empower us to defend 
America.
    Our National Defense Strategy is prominently a maritime 
one, and as such, our efforts are focused on preparing for the 
war at sea. The increasingly complex security environment is 
defined by challenges in the maritime domain, and the Navy the 
Nation Needs will be critical to our ability to maintain free 
and open use of the sea as our adversaries and near peer 
competitors become more of a global presence. We no longer have 
an expectation that we can operate throughout the world's 
oceans with impunity. We must become stronger, faster, and 
effectively build teams that will compete and win the high-end 
war fight, whether it is at a time and place of our choosing 
far from home or whether it is in defense of our Homeland 
closer.
    While we have the most capable ships and leading-edge 
technology, our people remain the greatest advantage against 
determined adversaries. We must continue to strengthen their 
technical competence and foster innovative thinking in our 
workforce. Through changes made to our Manpower, Personnel, 
Training and Education enterprise, we are leveraging modern 
technology and reimagining traditional processes to maximize 
efficiency and regain our competitive edge. This creates a more 
agile workforce prepared to prevail in the maritime battle 
space when necessary.
    Attracting and retaining the best sailors is always 
difficult, as our best and brightest are just as attracted to 
the private sector. With an unemployment rate in our target 
demographic at a 50-year low, it exacerbates this challenge and 
requires continued flexibility and transparency in policies and 
practices, along with competitive options for compensation.
    With regard to retention specifically, we have already 
implemented a number of important initiatives. We've enhanced 
our parental leave policy for Active Duty mothers and fathers. 
We've refined our dual-military co-location processes. We've 
expanded the Career Intermission Program and increased Active 
component/Reserve component permeability. This past year, we 
brought 1,162 reservists back to Active Duty in order to meet 
manning requirements.
    We're focusing on positive behaviors through our four-star 
culture of excellence governance board, and amending the health 
and fitness programs that we have has resulted in a full 10 
percent of our force moving into the ``Excellent'' or 
``Outstanding'' categories on the semiannual PRT [Physical 
Readiness Test] program. These changes have already begun to 
improve the sailor experience and will find an even greater 
foothold when more robust information technology comes online 
as a part of the transformation.
    The Chief of Naval Operations often says a stronger family 
equals a stronger fleet. Fleet and Family Readiness programs 
enable a resilient and lethal Navy force. We know that a 
family's quality of life and available services to sustain them 
are inextricably linked with the servicemember's retention. As 
we learn more about the challenges of Navy families and the 
experience in Public Private Venture housing, we are leaning in 
heavily. We will make 100 percent contact with sailors in 
government family and unaccompanied housing, and unit level 
leaders will visit all those who welcome assistance. We are 
resolved to ensure that sailors remain undistracted by living 
conditions that may adversely affect the health, safety, and 
well-being of their families.
    Recognizing there is a generational difference in preferred 
means to communicate, we're leaning into new ways to collect 
feedback and disseminate information in the place that sailors 
and their families feel comfortable in. They're demonstrating a 
strong preference for tools and resources in the digital realm 
of mobile apps and social media platforms, so in addition to 
more traditional methods, we're encouraging leadership to 
engage via live-streaming town halls and other online 
mechanisms that often provide quicker responses and solutions.
    Childcare remains a persistent critical readiness issue for 
the Navy. Many tend to categorize this as a women's issue, but 
we have single fathers, single mothers, and dual working 
couples, and it is more appropriately seen as a family issue. 
This is a nationwide challenge, but as the Navy has a dominant 
footprint in some of the most severely impacted areas, we are 
the hardest hit, managing an approximate deficit of 8,000 
spaces, nearly 54 percent of the overall DOD shortfall. We have 
expanded the hours and capacity of child development centers 
and are exploring partnership options in local communities in 
order to effect gains because we can't afford to lose talented 
sailors who might believe that the Navy is inconsistent with 
having a family.
    Through sustained commitment to removing distractions, 
maturing our training and education initiatives, and increased 
focus on quality of life, we will ensure sailors are ready for 
the fight. The best ships, aircraft, and technology are of 
limited value without the best trained and capable sailors to 
operate and maintain them. Investing in personnel and the 
systems that sustain them will drive innovation and excellence 
while retaining our top talent.
    We appreciate the efforts of Congress to ensure that we 
have all that we need to fight and win. We have and will 
continue to improve fleet readiness and retain our sailors and 
their families while remaining responsible stewards of the 
limited taxpayer resources you entrust to us.
    Thank you for your steadfast support for the men and women 
of the United States Navy, and I look forward to your 
questions, sir.
    [The prepared statement of Chief Smith follows:]

     Prepared Statement by Master Chief Petty Officer Russell Smith
                              introduction
    Chairman Tillis, Ranking Member Gillibrand and distinguished 
Members of this Subcommittee, I am honored to appear before you today 
on behalf of the dedicated enlisted men and women of the United States 
Navy serving around the world in defense of our national security 
interests, American values and families from all walks of life. 
Congress is an integral part of our Navy team. Catalysts of our success 
through your unwavering support, you empower us to defend our Nation 
and our national security interests.
    As outlined in the 2018 National Defense Strategy, our efforts are 
centered on preparing for the war at sea. The increasingly complex 
security environment is defined by challenges in the maritime domain. 
The Navy the Nation needs demands much in this era of great power 
competition; we must become stronger, faster and effectively build 
teams who will compete and win any high-end warfight.
    It is crucial we make the shift from bureaucratic roadblocks to 
innovation highways. Harvesting modern ideas means reimagining 
traditional workflows to maximize efficiency, leveraging ideas that 
will give us a competitive edge, and developing a more agile workforce 
empowered to achieve excellence in everything we do and prevailing in 
the maritime battlespace when necessary. We must minimize distractions, 
keeping sailors laser-focused on maintaining our superiority and 
deterring emerging global threats.
    While we have the most capable ships and leading-edge technology, 
our people have been, and will always be, our greatest advantage 
against determined adversaries. We must continue to strengthen their 
technical competence and foster the innovative thinking in our enlisted 
workforce.
                                recruit
    We strive to recruit the best qualified young Americans, who are 
interested in pursuing meaningful and altruistic service that benefits 
our Navy and our Nation. As President John F. Kennedy once said ``I can 
imagine no more rewarding a career and any man who may be asked in this 
century what he did to make his life worthwhile, I think can respond 
with a good deal of pride and satisfaction: 'I served in the United 
States Navy'.''
    For those who desire to be a part of this longstanding and 
exceptional tradition, they will find a career characterized by 
creativity and the strength that comes from working as part of a 
unified team, dedicated to preserving our freedom.
    There are many brave men and women in our communities across 
America who answer that noble calling even after 17 years of war. In 
fiscal year 2018, we were successful in achieving 100 percent of Active 
component (AC) accession goal, which we have met for 137 consecutive 
months; however, we fell short in our Reserve component (RC) 
accessions. Our record AC retention this year increased the challenge 
of recruiting prior service sailors, as there were fewer eligible 
personnel separating from Active Duty available to affiliate as 
reservists.
    We must continue to recruit talented Americans who are ready to 
work hard in a demanding field, solve problems, overcome challenges and 
be empowered to make our Navy a stronger combat ready force. 
Accordingly, Navy has been working to improve the efficiency and 
effectiveness of our recruiting organization through realignment, 
transformation, workforce improvements and policy reform. We are 
streamlining processes and have established the most efficient 
marketing and advertising campaign in Navy's history under our new 
brand ``Forged by the Sea.'' Digital prospecting allows recruiters to 
leverage messaging tools on the Navy.com website and other social 
media, increasing the number of recruiting prospects, and reaching 
diverse markets, while lowering costs-per-lead.
                                 train
    To properly and effectively train the finest sailors in the world, 
it is of grave importance that our training facilities are the finest 
in the world.
    Additionally, success is directly reliant on providing the precise 
training at the right and appropriate time, strategically and 
intermittently throughout a sailor's career. Many skills and knowledge 
bases atrophy over time when they're not properly maintained through 
rigorous training and continuous use. Through our Sailor 2025 
initiative, Ready Relevant Learning (RRL), we are developing a career 
long learning continuum to provide the right training at the right 
time, delivered via modern methods, to enable faster learning and 
better knowledge retention at multiple points throughout a career. This 
will help transform our industrial age, assembly line training model 
into a modern one that ensures our content takes into account evolving 
technologies.
    In addition to focusing on technical training, it is imperative 
that we continue to hone in on building competence and character 
through the Enlisted Leader Development Framework. We must forge 
leaders of strong character, earlier and faster, to build winning teams 
that will prevail over our adversaries in any environment. Navy is 
demonstrating a deliberate commitment to grow our sailors personally 
and professionally throughout their careers. For our enlisted sailors, 
we have designed a series of formal courses throughout the career 
continuum. The courses are short duration, high impact adult learning 
experiences which focus on character, ethics, leadership, the 
profession of arms, self-awareness, and decision making. Every sailor 
must be prepared to fight and win. The training, encouragement, 
empowerment and confidence instilled in them beginning with early days 
in boot camp will ensure their success. Our E-3s should be smarter, 
stronger, and more capable than the O-3s of our adversaries.
    Investing in training infrastructures, RRL, and cultivating 
stronger naval leaders will ensure that Navy maintains an enduring 
competitive advantage over any adversary. Serving in our Navy comes 
with risk and is inherently dangerous. We must do everything within our 
resources and constraints to properly arm and train our sailors, so 
they are well-equipped mentally, physically and emotionally.
    A 2017 comprehensive review of basic military training determined 
that firefighting and damage control training is inadequate. The review 
recommended that boot camp, a centralized location through which all 
enlisted sailors must pass, provide Navy Level I Basic Damage Control 
and Firefighting Certifications. Every sailor must be versed in damage 
control and firefighting. Each sailor must know how to save their ship, 
their shipmates and themselves in times of peril. Before reporting to 
their first ship, every sailor must have experienced rushing water 
entering a compartment in order to have some concept of what that is 
like, as well as know what they are going to do about it. This 
fundamental requirement demands that we upgrade existing facilities. 
Consolidating training for these skills at boot camp will provide a 
solid return on investment, in saved lives alone, to justify the 
expense. Conversely, failing to make this investment in training, will 
inevitably cost lives. We cannot, in good conscience, allow the 
dedicated men and women who selflessly volunteer to serve our Nation to 
go to sea without first preparing them with the very best training 
available. Funding these facilities is an investment that will not only 
save lives, but will be the difference between winning or losing in 
major combat operations at sea. The only thing more expensive than 
fighting a war is losing a war.
                                 retain
    The Navy the Nation needs is on a path to grow to 355 ships, but 
recruiting alone won't be enough to sustain our ranks and safeguard our 
Navy as a superior combat-credible maritime force. We are at a 
strategic crossroad in which we need to think about how we conduct 
business to retain the best and brightest while inspiring all sailors 
to seek their maximum potential.
    While the Navy succeeded in increasing retention across all pay 
grades in fiscal year 2018, in fact the highest rates seen over the 
last decade, we will experience some challenges ahead, particularly in 
the nuclear field, special warfare, advanced electronics, aviation 
maintenance and information technology communities. This has required 
focused retention efforts, to include targeted re-enlistment bonuses, 
to keep their talent and unique skills on our team.
    When evaluating retention, it is imperative to assess the reasons 
why sailors choose to stay or leave the Navy. The data we've collected, 
primarily from E-1 to E-6 sailors with less than 15 years of service, 
indicates that work-life balance, leadership, command climate, impact 
on family, and civilian job opportunities were the top five influencers 
to leave the Navy. The top influencers to stay in the Navy included 
medical/dental benefits, monetary compensation and retirement, housing 
and promotion opportunities, and other benefits such as leave, 
education and the commissary.
    One of the best programs we currently have to increase retention is 
the Meritorious Advancement Program (MAP), which empowers our top 
performer with a deserved promotion to the next pay grade. This program 
identifies talent and ensures we are incentivizing our most capable 
sailors to continue to serve on the Navy team--keeping their expertise 
and experience in our ranks. This program empowers commanding officers 
to recognize, promote and ultimately retain their best sailors, once 
they are ready to assume greater levels of leadership and 
responsibility.
                   future of the force (sailor 2025)
    Attracting and retaining the best sailors in an increasingly 
competitive talent market requires continued flexibility and 
transparency in policies and practices. Sailor 2025 is the Navy's 
program to improve and modernize personnel management, training 
policies, and systems to more effectively identify, recruit, and train 
talented people to better manage the force while improving warfighting 
readiness.
    The modern information technology (IT) infrastructure we are 
building will improve how we recruit, train, and retain talent as well 
as assign talent and provide competitive compensation packages. This 
system will provide the kind of flexibility and permeability our 
sailors expect and deserve.
    We have already implemented a number of important initiatives, to 
include enhancing our parental leave program, changing our dual 
military colocation policy, expanding the Career Intermission Pilot 
Program, strengthening advocacy and health and fitness programs across 
the force, as well as expanding the hours and capacity of Child 
Development Centers.
    These initiatives effectively allow us to recruit, develop, manage, 
reward and retain talent in our force. Many administrative systems and 
programs were outdated, overly bureaucratic, and riddled with 
administrative distractions that took time away from warfighters--
keeping them tied up with overly complicated processes instead of 
focused on training and getting the job done in order to allow them to 
better manage work-life balance.
    Today's sailors are technically savvy, eager to see our systems 
evolve on pace with industry standards. The expectation is that they 
should be able to handle their personal administration in the same 
secure manner in which they currently conduct banking from a mobile 
phone. Their time is too valuable to be spent in line waiting to 
conduct transactions that can be routinely accomplished from their 
smartphones. Just as our platforms and weapon systems have evolved, so 
must our personnel systems by using cutting edge technologies and new 
policies and procedures outlined in our Sailor 2025 initiatives. This 
as an investment in our future, our sailors, and the manner in which we 
push them to strive for innovation.
    Most importantly, these efforts return time and opportunity to the 
deck plates, allowing leaders to focus on tactical skills and 
warfighting readiness. Under Sailor 2025, we are empowering our 
sailors.
                                families
    As the Chief of Naval Operations says, ``a stronger family equals a 
stronger fleet.'' Fleet and Family Readiness programs enable a ready 
and lethal Navy force, as it builds sailor and family member 
resilience. Recent studies show that family member's quality of life 
and services provided to sustain them are directly linked with 
servicemember retention. We are in the second year of executing the 
Chief of Naval Operations' Navy Family Framework, which reinforces the 
importance of the role Navy families play in mission success. In 2018, 
we conducted spouse engagement sessions worldwide, and in 2019 we will 
roll out a new consolidated source of official information--a mobile 
app--on support services, resources, and training currently available 
to Navy families, which gives them tools to successfully navigate the 
challenges associated with the military lifestyle.
    In recent engagements with sailors one common theme that arises is 
accessibility of available, affordable and quality childcare. Lack of 
available and affordable childcare is a national issue for our 
generation; for our Navy, it is a critical readiness issue. Our Navy 
team must remain vigilant and strong to effectively preserve America's 
strategic influence and interests around the world. Sailors must be 
prepared to ``fight tonight,'' constantly ready when we least expect 
it. We must drill harder and more frequently--for it is sets and reps 
that will build the muscle memory that ensures overwhelming victory in 
combat. Our Navy simply cannot afford to lose valuable training hours 
because of worry and uncertainty over whether their children are in a 
secure, safe and comfortable setting. We also can't afford to lose 
talented sailors who decide, as some have already done, that the Navy 
is incompatible with having a family. Sailors provide security for all 
Americans by protecting the Homeland 24/7, and in return, we owe it to 
them to ensure their own families are taken care of, allowing them to 
focus on the mission at hand.
    Over the past decade, Navy has added 7,000 childcare spaces, opened 
five new 24/7 Child Development Centers in Norfolk, San Diego, and 
Hawaii; and, where there is a need, extended operating hours from 12 to 
14 hours per day; however, sailor demand for childcare exceeds Navy's 
current 44,000 childcare spaces. Today, there are over 8,000 children 
waiting for DOD-provided childcare, and the Navy accounts for 54 
percent of the overall DOD shortfall. Approximately 2,000 children have 
been on a waiting list for over 6 months, some waiting well over a 
year. Waiting lists are predominately in our high-cost waterfront 
cities and fleet concentration areas in California, Virginia, Hawaii, 
Washington, and the National Capital Region.
    The challenges facing our sailors needing affordable and quality 
childcare mirror challenges facing other American families. In 19 
states where the majority of our Navy demand resides, there is a 
cumulative shortfall of 1.4 million childcare spaces, according to 
Child Care Aware of America. Across the United States, the most common 
childcare arrangement for working parents is through a family member. 
However, that is not an option for most sailors, who do not reside near 
extended family and, therefore, unable to rely on family members to 
help with childcare.
    For sailors able to find childcare in the community, affordability 
is a significant challenge, with care costing upwards of 25 percent of 
total family income. According to the U.S. Department of Health and 
Human Services, under the current standard for childcare affordability, 
families should be paying less than seven percent of household income 
to cover the costs of childcare.
    We are tirelessly working through various options to address the 
childcare needs of sailors and their families, so they can focus on 
mission accomplishment. Navy will continue actively seeking public/
private partnerships in Fleet concentration areas to increase 
accessibility of affordable childcare that will benefit both sailors 
and the local community. We look forward to reporting our progress and 
appreciate your continuing support and partnership with this critical 
personnel issue.
    Relocating to where our Navy and our Nation needs us is an inherent 
part of service in the U.S. Navy. While a permanent change of station 
can be difficult, it can also be full of new opportunities for growth 
for our families, as it pushes us to move past our comfort zones and 
embrace new cultures and communities. Nevertheless, it doesn't diminish 
the stress brought on by the major life changes and logistical 
challenges associated with the move. In 2018, the Navy tested a pilot 
in which sailors were afforded the opportunity to take charge of their 
move as part of an effort to empower them, reduce bureaucratic burdens, 
and give them the flexibility to execute the move in the manner that 
works best for their respective families. Instead of relying on a one-
size fits all contract move, the test group of 120 sailors was given 
the opportunity to use government travel credit cards, which they 
previously were not allowed. This approach greatly benefited these 
sailors, because it alleviated the tremendous burden of having to pay 
thousands of dollars in moving expenses out-of-pocket until 
reimbursement claims could be settled. Navy is the only branch not 
currently providing this option to our families. We know we are behind 
the curve in this facet of family readiness and support and we are 
working to implement a pragmatic and resourceful approach to this issue 
that affects the quality of life and readiness of Navy families.
    Additionally, we are developing plans for implementing 
reimbursement of spouse licensure fees Congress enacted in the fiscal 
year 2018 NDAA. Our Navy spouses should not have to put their own 
careers on the backburner, and we look forward to enhancing the ease 
with which they may continue working in the new communities into which 
they relocate incident to a Permanent Change of Station move. We ask 
for your support in incentivizing licensure and reciprocity across 
state lines for our military spouses. With your help, we can provide 
more opportunities for them to work in the communities their families 
are stationed in. Many have valuable knowledge and experience in 
educational, medical, and childcare fields. As it stands now, there are 
39 states that support the transfer of teaching credentials. We would 
greatly appreciate and benefit from any assistance you can provide in 
encouraging your states to support these initiatives. Otherwise, we 
risk losing valuable expertise if sailors leave our team, as many have 
cited on exit surveys, to find better opportunities elsewhere for their 
families.
                               conclusion
    As we continue evolving in this era of great power competition, we 
recognize that we once again may experience major maritime battles 
comparable to those of World War II. Adversaries are committing 
resources in the latest technologies, platforms and weapon systems in 
the maritime domain, threatening our national security interests around 
the globe in an unprecedented manner.
    Through sustained commitment and continued investment in removing 
distractions and improving training and quality of life, we will ensure 
our greatest advantage against any adversary--our sailors--are ready 
for any fight. The best ships, aircraft, and technology are of limited 
value without the best trained and most capable men and women to 
operate them. Investing in personnel and the systems that sustain them 
will not only drive innovation and excellence, while ensuring our 
ability to recruit and retain America's top talent to serve in our 
Navy.
    We appreciate the continuing efforts of Congress to ensure we have 
all that we need to fight and win. We have and will continue to improve 
the fleet readiness and retain our sailors and their families, while 
remaining responsible stewards of taxpayer resources. Thank you for 
your steadfast support for the men and women of the United States Navy.

    Senator Tillis. Thank you.
    Chief Wright.

  STATEMENT OF CHIEF MASTER SERGEANT KALETH O. WRIGHT, USAF, 
             CHIEF MASTER SERGEANT OF THE AIR FORCE

    CMSAF Wright. Chairman Tillis, Ranking Member Gillibrand, 
and distinguished Members of this Subcommittee, thank you for 
your support and interest in our servicemen and servicewomen. 
It's truly an honor for me to address you on their behalf 
today. While my wife Tonya, a 20-year veteran herself, is 
unable to be here today, I am joined today by Command Chief 
Master Sergeant for the Air Force Reserve Command Ericka Kelly 
and her successor, Chief Master Sergeant Tim White.
    In the past 2 years, collectively, we have visited 
thousands of airmen and family members. These visits reinforce 
the fact that Air Force readiness and our airmen are 
inextricably linked. Recruiting the best airmen for the Air 
Force we need, training and retaining the airmen of today, and 
ensuring our airmen and their families are taken care of 
directly impacts readiness. Providing airmen with developmental 
opportunities allows us to enhance readiness cohesion and 
combat effectiveness. Remaining fully committed to sexual 
assault prevention and providing better care, recovery, and 
judicial advocacy for victims who report sexual violence, mixed 
with a dedicated strategy to reduce suicide rates, ensures we 
place dignity, respect, and the health and wellness of all 
airmen as our priority.
    A significant component to the quality of life of airmen is 
access to quality housing. The health and safety of our airmen 
and their families is our priority, and we share their concerns 
when we detect instances where housing objectives are not being 
met. When there are challenges, Air Force leaders, we own it. 
We intervene with the project owners, advocate for our 
residents, and support installation commanders in our mission 
to take care of airmen and their families.
    We rely on and are grateful for your efforts, actions, and 
legislation to protect and support our servicemembers. We 
welcome your visits to see firsthand the talent and dedication 
of our airmen and families. Thank you again for your time 
today, and I look forward to your questions.
    [The prepared statement of Chief Wright follows:]

      Prepared Statement by Chief Master Sergeant Kaleth O. Wright
                              introduction
    Chairman Tillis, Ranking Member Gillibrand and the Members of this 
Subcommittee, it is an honor to address you, express our airmen's 
needs, and offer their appreciation for your support. Our airmen and 
their families are the key to our success and understand the freedoms 
we guard are not just our own. They've made a choice to do something 
purposeful and it is our duty to take care of them as they take care of 
the mission.
    Our airmen are our most important asset. Increasing our end 
strength allows the Air Force to better meet the warfighting demands of 
today and tomorrow.
    Readiness and airmen are inextricably linked. Recruiting the best 
airmen for the Air Force we need, training and retaining the airmen of 
today, and ensuring our airmen and their families are taken care of 
directly impacts readiness. Providing airmen with developmental 
opportunities allows us to enhance readiness, cohesion and combat 
effectiveness. Remaining fully committed to sexual assault prevention 
and providing better care, recovery and judicial advocacy for victims 
who report sexual violence, mixed with a dedicated strategy to reduce 
suicide rates, ensures we place dignity, respect, and the health and 
wellness of all airmen as our priority. We rely on and are grateful for 
your efforts and legislation to protect and support our servicemembers. 
We welcome your visits to see first-hand the talent and dedication of 
our airmen and families.
                        total force end strength
    In order to meet mission requirements established in the NDS 
[National Defense Strategy], the Air Force must increase our total 
force end strength. This growth directly improves readiness and 
lethality by increasing personnel to our squadrons. It also provides 
the manning necessary to continue readiness improvements, increasing 
airmen in operations and maintenance; intelligence, surveillance and 
reconnaissance; special operations forces; space and cyber. This is 
imperative to supporting modernization efforts, providing needed 
manning to build and sustain KC-46 and F-35 programs and B-21 research 
and development workforce. Discontinuing end strength growth now will 
force us to accept risk to mission priorities and perpetuating an 
environment of hollowed out units.
                        recruiting and retention
    The Air Force is on track to meet its Active Duty enlisted 
accession goals of 32,050 non-prior service enlisted airmen for fiscal 
year 2019. With an improving economy, the Air Force faces tough 
competition for recruits, especially those with highly technical or 
unique skills and capabilities. We must continue to attract the highest 
caliber applicants to meet myriad mission needs, especially for 
evolving cyber and space and critical high-demand/low-density special 
warfare career fields.
    We have taken a multi-pronged approach to bolster recruiting 
efforts. First, we increased total force Tier 1 enlisted accession 
recruiters by 150 over 4 years, bringing our total to 1,300. Next, we 
increased our recruiting budget to $95 million with $40 million 
earmarked for advertising and marketing. Finally, we established a 
recruiting squadron focused specifically on special warfare, EOD 
[explosive ordinance disposal] and survival, evasion, resistance and 
escape airmen, enhancing pre-accession development training for career 
fields with historically high training attrition rates.
    Once we have recruited and trained the airmen we need, we have to 
ensure we work to retain them. A high demand for technical skills and 
continuously high operational tempo, mixed with a strong economy, 
burdens Air Force retention.
    One of the most successful ways we retain airmen is through 
monetary incentives. To ensure the continuous health of career fields 
stressed due to low manning or with skillsets critical to the mission, 
we offer selective retention bonuses (SRBs) to maintain capability and 
capacity. SRBs are based on specialty manning, retention trends and 
training costs, and are reviewed bi-annually to meet changing 
requirements. The goal remains to be most economical while still 
achieving desired retention results. The most recent SRB list targets 
115 of our 196 enlisted specialties.
    We are keenly aware that monetary incentives are just one part of 
our retention portfolio. Quality of life, education benefits, and 
potential for future growth and development also strongly influence 
retention.
          developing exceptional leaders and talent management
    One way the Air Force must continue to capitalize on the talent of 
our airmen is through the continued improvement of its force 
development processes. Through that lens, we've worked with our joint 
partners on several development programs. Focused on improving 
leadership and management these programs are designed to produce airmen 
with tactical expertise, operational competence, and strategic vision 
to lead and execute Air Force and joint missions.
    The first program we are executing is a senior leader development 
portfolio emphasizing the continued development of enterprise-level 
senior leaders. This is managed by specific enlisted, officer and 
civilian management teams with a development portfolio comprised of 
approximately 35 tailored courses and development opportunities 
annually. We continue to examine Professional Military Education to 
improve how we develop leaders capable of critical and strategic 
thought and clear communication who are adept in the art and science of 
warfighting.
    Next, we are adding flexibility into the assignments process by 
leveraging technology to improve our assignment matching system. After 
researching industry-best practices, we implemented an information 
technology solution known as ``Talent Marketplace'' (TM). TM uses 
algorithms to match airmen to assignments, taking into account member 
assignment preferences and hiring manager desired criteria to produce a 
match. TM provides a ``scientific'' starting point, allowing assignment 
teams to apply the ``art'' to finalize the process. This two-pronged 
approach of ``science'' and ``art'' adds transparency to the process, 
allowing for better talent management. As funding allows, we will 
continue to bring all officer and enlisted skill sets into the TM 
program.
        human resource management information technology reform
    The Air Force is modernizing the information technology (IT) 
infrastructure across its human resources systems. To improve these 
systems, our efforts are focused on providing airmen a modern cloud-
based, mobile-enabled, self-service digital platform. The way forward 
requires analyzing the Human Resource Management Information Technology 
portfolio of 115 talent management platforms and 400+ applications. The 
foundation of this effort is the transition to cloud-based services, 
enhancing privacy information security.
    One example of evolving human resources IT capabilities supporting 
airmen is via MyVector, a web-based development platform. MyVector 
underpins force development, allowing airmen to be actively involved in 
their career development process. We are posturing the platform to 
accomplish officer developmental education boards, enlisted deliberate 
development, and foreign language proficiency tracking capabilities, 
modernizing TM options. More than 238,600 airmen are registered on 
MyVector and more than 48,700 airmen have matched mentoring 
connections.
    Another example of modernizing IT platforms is through the Air 
Force Integrated Personnel and Pay System (AFIPPS). This program will 
enhance our personnel system for the Active, Reserve and Guard by 
integrating payroll. Our strategy has greatly reduced the life cycle 
cost estimate of the program from $1.8 billion to $0.7 billion. It has 
dramatically reduced risk by using our existing Oracle platforms, 
established system infrastructure and trained workforce. Once complete 
in January 2021, we will have a fully integrated personnel and pay 
system that meets all federal audit compliances and resolves pay issues 
airmen currently experience.
                         performance management
    Cultivating workforce talent is a priority through the deliberate 
and continuous processed we use to strengthen the capabilities, 
readiness, and professionalism of our force. We recently completed the 
first Enlisted Evaluation System (EES) triennial review since 
transitioning to a new system in 2015. The review centered around 
answering two strategic questions: 1) ``How do we get the best from our 
Airmen so they can give their best to mission accomplishment?'' and 2) 
``Are there any alternative performance management models available 
other than Forced Distribution for promotion recommendations?'' 
Initiatives include re-examining what we value in documenting feedback, 
transforming evaluations to better document performance, developing an 
evaluation and encouraging more candid feedback. Senior leaders use 
these recommendations as a baseline to ensure our EES reinforces 
development and feedback for airmen.
                              compensation
    To retain the career airmen we need, we must retain families as 
well. The continued service of career airmen is a family decision. To 
take care of airmen, we rely on protections for current compensation 
with stable, predictable funding moving forward.
    One of the means by which we do this is through enhanced quality of 
life, which starts with relevant, predictable Basic Allowance for 
Housing (BAH). The Services supported the proposal to gradually slow 
annual BAH increases by 5 percent over 5 years until 2019, with rates 
covering 95 percent of rental and utilities costs. The actual impact of 
the changes to BAH computations varies depending on a member's housing 
choices. Members who rent a median-priced property will pay a small 
amount above their BAH rate while those who choose to economize their 
housing choices may have all housing expenses covered by BAH. airmen 
remain free to choose the situations best suited to them but rely on 
predictable, reliable allowances when making the best decisions for 
their families.
    One of the most wide-reaching, significant changes to military 
compensation over the past 70 years was the implementation of the 
Blended Retirement System (BRS). As part of the overall military 
compensation package, BRS extends retirement savings options to the 81 
percent of servicemembers who historically have received no DOD 
retirement benefits. Approximately 75,000 total force airmen opted into 
the BRS last year--29.8 percent of the ReAF [Regular Air Force], 11.5 
percent of the Reserve, and 11.5 percent of the Guard who were in the 
eligible enrollment window. An additional 23,000 airmen were 
automatically enrolled upon entering service, for a total of 
approximately 98,000 airmen enrolled in BRS as of the end of 2018.
                           privatized housing
    A significant component to the quality of life of airmen is access 
to quality housing. The health and safety of our airmen and their 
families is our priority and we share their concerns when we detect 
instances where housing objectives are not being met. When there are 
challenges, Air Force leaders own it. We intervene with the project 
owners, advocate for our residents, and support installation commanders 
in our mission to take care of airmen and their families.
    Currently, the Air Force provides 53,237 family housing units at 63 
installations. We're focused on overseeing long-term project health and 
sustainment of these projects, focused on providing quality housing for 
our airmen, but know privatized housing is not without issues.
    The number one concern plaguing Air Force privatized housing is 
mold, particularly in perennial high-humidity climates. Environmental 
mold spores grow readily when the right moisture conditions are present 
and even the best facility designs cannot eliminate the risk. However, 
we have identified three installations where facility design, 
construction, or materials are key contributors to mold growth in 1,667 
homes (3.1 percent of privatized homes): Tinker Air Force Base (AFB), 
OK, Keesler AFB, MS, and MacDill AFB, FL. Roughly 76 percent of these 
homes were conveyed to housing privatization projects from the 
government's inventory.
    At Tinker AFB, 398 homes constructed from 2009 to 2012 by the 
project owner, Balfour Beatty Communities (BBC), experienced mold 
issues. In June 2018, BBC also discovered roughly 200 newly constructed 
homes were experiencing moisture problems in mechanical rooms resulting 
in mold growth. With direction from the Air Force, BBC remediated the 
mold. Furthermore, BBC hired a third-party engineering firm to assess 
mechanical room heating, ventilation, and air conditioning systems to 
determine the causes of moisture issues and recommend further 
corrective actions. The estimated completion date is May 2019.
    At Keesler AFB, the Air Force conveyed 1,028 homes built by Hunt 
Companies in 2010 to Forest City Military Communities (FCMC) in 2011. 
Poor workmanship in the air conditioning systems and building envelopes 
resulted in condensation. FCMC treated mold as it occurred while 
seeking remedies from Hunt Construction. In 2015, Hunt Military 
Communities purchased the project from FCMC and the Air Force insisted 
on a mold remediation settlement as a condition of sale. The settlement 
required Hunt to correct construction defects within the scope of the 
original construction contract, representing a $6.4 million exposure to 
Hunt Companies. The Air Force worked with Hunt on a multi-phased 
Moisture Remediation Plan with an estimated completion date of June 
2020. Hunt Communities has completed the test pilot and immediate 
response phases, and the first of three stages of the sustainment 
phase. All 1,028 units have received some work. Stage Two of the 
sustainment phase is 33 percent complete and involves 255 units.
    At MacDill AFB, 241 units previously built for the Air Force were 
conveyed to Clark/Harbor Bay. Due to breaches in or lack of a vapor 
barrier, systemic moisture issues were present in these units. The 
project owner treated the mold while designing projects and plans to 
correct the underlying cause. In 2017, 94 units were reclad at a cost 
of $3.7 million. In 2018, interstitial spaces and stucco repairs were 
executed, dehumidifiers were added to homes where the air conditioning 
units were not controlling moisture adequately on their own, and 19 
homes were treated for mold growth. This year, an additional 68 units 
will be reclad.
    At all three installations, the project owners have taken steps to 
correct underlying causes. But, corrections have not been as quick as 
we would like, and there have been instances where the project owner's 
response has lacked the urgency we would expect. Air Force leaders have 
engaged with project owners, withheld performance incentive fees, and 
implemented corrective action plans to address underperformance and 
inadequate oversight.
    While we remain concerned with issues in small pockets of our 
housing inventory, we believe military housing privatization has been 
generally successful in providing quality communities for airmen. This 
is evidenced by a 2017 customer satisfaction survey, conducted by a 
third-party agency, which returned ratings of ``Very Good'' (81.8 
percent) with military occupancy rates of 90 percent across the Air 
Force. As with any housing portfolio of this size and scope, we have 
challenges but actively working with project owners, residents, and 
installation commanders to find resolutions.
                 sexual assault prevention and response
    The Air Force remains fully committed to Sexual Assault Prevention 
and Response (SAPR) and advanced assault prevention and response 
capabilities. We continue to build upon our SAPR efforts. Recently, the 
Air Force approved 12 strategies that fall into three categories 
(immediate, mid-range, and long-term) to improve response, provide 
better care, recovery, and judicial advocacy for victims.
                               immediate
     1.  Build a continuous Quality Assurance system for persistent 
external assessment of SAPR response capabilities;

     2.  Special Interest Item conducted by the Inspector General on 
SAPR response procedures;

     3.  Provide commanders with common operating picture to plan and 
execute local strategy;

     4.  Continuously report military justice outcomes and adjudication 
AF-wide, including Nonjudicial Punishments (publicly);
                               mid-range
     5.  Re-evaluate Family Advocacy & Sexual Assault Response 
Coordinator roles and responsibilities for victim response procedures;

     6.  Ensure privacy controls for access & utilization of victims' 
mental health records (via legislative process);

     7.  Increase commander decision time for expedited transfers to 
pursue best assignment option for victims;

     8.  Increase commanders and supervisors knowledge, skills, 
abilities in managing the neurobiology of trauma

     9.  Develop multifunctional victim support technology platform
                               long range
    10.  Improve investigative and legal process timelines

    11.  Allow adult victims to testify via video to increase 
likelihood of reporting

    12.  Provide victims more control and alternatives in reporting 
options

    Additionally, we are leveraging approaches to prevent and reduce 
power-based personal violence such as partner violence, rape or sexual 
assault, stalking or uses of force, threat, intimidation, or 
harassment. We enhanced our response system through accountability, 
transparency, and senior leader oversight to continue shrinking the gap 
between prevalence and reporting. Prevalence data is culled from 
anonymous surveys conducted bi-annually. While we are still compiling 
data from the 2018 report, 2016 data shows that while 1,455 Active Duty 
airmen provided either a restricted or unrestricted report of sexual 
assault. Additionally, 2,450 respondents reported having been victim to 
some form of sexual assault or abusive contact.
    Workplace Gender Relations Survey data from 2016 reflects 
prevalence is decreasing while sexual assault reporting is steadily 
increasing. This is a positive step, as assaults are decreasing while 
victim confidence in reporting is increasing. But our standard remains 
``zero tolerance'' for sexual assaults. We do not tolerate an increase 
in the prevalence of sexual assault and continue work to promote a safe 
environment, holding accountable those who commit sexual assault.
    We recognize that without dedicated prevention efforts, sexual 
assault will remain an issue no matter how robust our response system. 
We also recognize that if an assault does occur, the long-term well-
being of the victim must be forefront in our efforts.
                           suicide prevention
    Suicide prevention remains a priority at all levels. We are 
pursuing 11 suicide prevention goals and initiatives aimed at 
decreasing suicide rates by 50 percent over 5 years with an end goal to 
drive rates to as close to zero as possible.

     1.  Leadership involvement: Air Force leaders actively support the 
entire spectrum of suicide prevention initiatives in the Air Force 
community. Regular messages senior leaders and commanders motivate the 
community to fully engage in suicide prevention efforts.

     2.  Addressing suicide prevention through professional military 
education: Suicide prevention education is included in all formal 
military training.

     3.  Guidelines for commanders on use of mental health services: 
Commanders receive training on how and when to use mental health 
services and in encouraging early help-seeking behavior.

     4.  Community preventive services: Community prevention efforts 
carry more impact than treating individual patients singly. The Medical 
Expense and Performance Reporting System was updated to effectively 
track and encourage prevention activities.

     5.  Community education and training: Annual suicide prevention 
training is provided for all military and civilian employees in the Air 
Force.

     6.  Investigative interview policy: The period following an arrest 
or investigative interview is a high-risk time for suicide. Following 
any investigative interview, the investigator is required to ``hand 
off'' the individual directly to the commander, first sergeant, or 
supervisor. The unit representative is then responsible for assessing 
the individual's emotional state and contacting a mental health 
provider if any question about the possibility of suicide exists.

     7.  Trauma stress response: Trauma stress response teams were 
established worldwide to respond to traumatic incidents such as 
terrorist attacks, serious accidents, or suicide. These teams help 
personnel and their families deal with the emotions they experience in 
reaction to traumatic incidents.

     8.  Integrated Delivery System (IDS) and Community Action 
Information Board (CAIB): At the Air Force, major command, and base 
levels, CAIB and IDS provide a forum for cross-organizational review 
and resolution of individual, family, and community issues impacting 
the force readiness the quality of life. The IDS and CAIB help 
coordinate the activities of the various base helping agencies to 
achieve a synergistic impact on community problems and reduce suicide 
risk.

     9.  Limited Privilege Suicide Prevention Program: Patients at risk 
for suicide are afforded increased confidentiality when seen by mental 
health providers (Limited Privilege Suicide Prevention Program). 
Additionally, Limited Patient-Psychotherapist Privilege was established 
in 1999, limiting the release of patient information to legal 
authorities during UCMJ [Uniform Code of Military Justice] proceedings.

    10.  IDS Consultation Assessment Tool: The IDS Consultation 
Assessment Tool allows commanders to assess strengths and identify 
vulnerable areas. Commanders can collaborate with IDS consultants to 
design interventions to support the health and welfare of their 
personnel.

    11.  Suicide Event Surveillance System: Information on all Air 
Force suicides and suicide attempts are in a central database that 
tracks suicide events, facilitating potential suicidal risk factor 
analysis.

    For calendar year 2017, Air Force suicide rates per 100,000 were at 
19.5, slightly below the DOD average of 21.9 and demographically 
matched to U.S. rates. Our suicide rates increased between 2009 and 
2015, from 12.5 per 100,000 to 20.0 per 100,000, and then plateaued 
between 2014 and 2018, remaining at about 19.0 per 100,000 for all 3 
years.
    One program we're currently testing to bring resources closer to 
airmen and drive a culture that affects, embraces, and drives help-
seeking behavior is Task Force True North (TFTN), currently available 
at four bases: Minot AFB, ND; Beale AFB, CA; Whiteman AFB, MO; and 
Joint Base Elmendorf-Richardson, AK. TFTN is comprised of three primary 
elements: engaging airmen and families early; normalizing help-seeking 
behavior as a strength; and a decentralized push for help, meeting 
airmen where they are, at the unit level.
    Under TFTN, units have mandatory sponsorship programs and dedicated 
on-boarding programs to engage airmen upon arrival, ensuring their 
assignment begins with positive leadership interaction. Additionally, 
leaders are now using a squadron commander risk and protective factor 
analysis tool, developed in partnership with New York University (NYU). 
This tool, called NORTH STAR, uses anonymous surveys feedback to 
identify issues like suicidality, alcohol misuse and domestic partner 
abuse. Leadership teams use results to work directly with psychologists 
from NYU to the issues and build an intervention plan that provides the 
airmen with self-help tools like articles, resources or smart phone 
apps they can use to seek help or enhance coping skills. Feedback is 
anonymous so commanders provide tools to the entire unit, not targeting 
any one person.
    We have also embedded mental health providers with duties at the 
squadron-level. We developed group-level dedicated religious support 
teams to provide support directly to airmen. Both were enacted to 
directly target a range of conditions affecting airmen's mental, 
social, and spiritual comprehensive fitness. Early results show TFTN 
improves mission readiness by enhancing airman and family well-being, 
decreasing negative outcomes such as suicide, sexual and domestic or 
workplace violence, and optimizing human performance. Data gathered 
during the beta test phase will inform decisions regarding a possible 
total force scale up.
                               conclusion
    Chairman Tillis, Ranking Member Gillibrand and Members of this 
Subcommittee, thank you again for this opportunity to represent our 
incredible airmen and their families. Your airmen, supported by some of 
the strongest families our Nation will ever know, stand ready. They 
fully understand the joint force depends on their ability to employ and 
enable airpower around the world.
    We must ensure our airmen have the resources, training and tools to 
compete, deter, and win in an ever increasingly complex security 
environment. Resilient and ready airmen, military and civilian, are the 
foundation of the Air Force's readiness and lethality. Your Air Force 
remains ``Always There'' providing global vigilance, reach, and power 
to protect and defend our Nation. We are committed to prioritizing and 
resourcing what is most important and look forward to partnering with 
Congress in our endeavors to protect and defend our Nation. We thank 
you for your continuing support of your Air Force.

    Senator Tillis. Thank you.
    Sergeant Major Green.

STATEMENT OF MAJOR RONALD L. GREEN, USMC, SERGEANT MAJOR OF THE 
                          MARINE CORPS

    SgtMaj Green. Chairman Tillis, Ranking Member Gillibrand, 
and distinguished Members of the Subcommittee, thank you for 
the opportunity to appear before you on behalf of all the men 
and women of your Marine Corps.
    Taking care of marines and families is a vital component of 
our overall readiness and of combat effectiveness. We recognize 
that in order to maintain our great history of being the 
Nation's expeditionary force in readiness, we must recruit 
high-quality men and women to serve in our corps. To meet 
future challenges, it is imperative that we maintain our high 
standards to ensure--[turns mic on]--when we heed your call.
    Senator Tillis. Hold on. Just for the record, I could have 
sworn your mic was on beforehand.
    [Laughter.]
    SgtMaj Green. Should I start over, sir, or should I keep 
going?
    [Laughter.]
    SgtMaj Green. We recognize that in order to maintain our 
great history of being the Nation's expeditionary readiness 
force, we must recruit high-quality men and women to serve in 
our corps. To meet future challenges, it is imperative that we 
maintain our high standards and ensure that our force in 
readiness is ready when we heed your call.
    Whether a marine intends to serve one tour or retire from 
the Marine Corps, we value their commitment and their 
sacrifices. To help them meet the goals and plans for their 
future, the Marine Corps is focused on ensuring marines are 
exposed to transition readiness throughout their career via the 
Marine for Life Cycle approach. With this in mind, the Marine 
Corps focuses on preparing marines for postsecondary education, 
21st century careers, and leadership skills that they can 
employ in a global economy. We recognize the challenges the 
military lifestyle and multiple moves can have on our spouses' 
careers. The Marine Corps works with OSD [Office of the 
Secretary of Defense] to collaborate with the service 
organizations to provide employment assistance and career 
training to our military spouses.
    Ensuring a high quality of life for our marines and their 
families is a top priority. We have marine families impacted by 
hurricanes still displaced from their homes, and the marines 
are working tirelessly to get their facilities up and running 
to continue their jobs as America's elite fighting force. We 
hold ourselves accountable that all families have quality 
housing. We are reviewing issues in our military housing and 
holding our PPV partners responsible for their faith and trust 
we put in them to provide for the safety and well-being of our 
families' homes. We cannot have our marines worried about 
safety and the health of their families within their homes when 
they should be focused on the mission. The Marine Corps must 
keep our faith with our families, marines, and the values we as 
Americans hold dear by remaining committed to our culture of 
dignity, respect, and trust.
    We're focusing on policies and initiatives on preventing 
sexual assault, and we have recently published an order 
covering other prohibited activities, such as harassment, 
hazing, bullying, ostracism, and additional behaviors that go 
against our core values. We have increased avenues for 
reporting, and we must always hold wrongdoers accountable for 
their actions.
    Your marines are smart, resilient, fit, disciplined, and 
able to overcome adversity. We recognize the challenges facing 
our marines and we continue to resource our programs to address 
mental health and the growing problem of suicide within our 
ranks. We're focused on preventive strategies. While marines 
provide themselves or tout themselves to be tough, that does 
not mean we ever relent to taking care of our own.
    With your support, our vibrant Marine Corps will continue 
to meet our Nation's call. Again, thank you for the opportunity 
to represent all marines today and the sustained support in 
caring for our marines and their families.
    Senator Tillis. I thank you all for your opening comments.
    I want to go back to where I ended the first panel. I know 
that among many of the enlisted leadership, there were concerns 
with the blended retirement option, and the opt-in rates seem 
to be pretty disparate, particularly from between the Army and 
the Marines.
    Sergeant Major Dailey, give me some idea of why you think 
that is.
    SMA Dailey. Senator, absolutely, and I knew that you'd be 
asking that question. I was concerned at the end of last fiscal 
year too.
    If I could for a second, I'd like to back up on the journey 
of how we got here. In fiscal year 2017, we had a requirement 
to train every eligible soldier across the Army. I have to 
report that we did a phenomenal job, and Congress gave us the 
resources and assets to do that. We trained 99 percent of our 
soldiers in fiscal year 2017 on what their blended retirement 
options were. That category was roughly soldiers within--that 
came in in that fiscal year up to about 10 to 12 years; they 
were first, second, and third term soldiers.
    In fiscal year 2018, we had to allow them the opportunity 
to opt in to the Blended Retirement System, and they could 
immediately start putting into what we call the matching 
contributions account. About halfway through the year, I was 
just as concerned when I didn't see the numbers as high. So I 
started a monthly VTC [video teleconference] with my 
subordinate sar-majors [sergeant majors], and what I said is my 
intent is not to influence decisions, but to get 100 percent 
contact on making sure they understand they had to make the 
choice and making sure that they were fully educated on the 
value and benefits of both, based upon their individual 
financial goals, sir. Those numbers started to increase a 
little bit. But I still wasn't satisfied. Toward the end of the 
year, I asked for feedback because I knew that would be a 
question of why we were--and I was concerned at first, but now 
I'm not. I'm going to share with you, sir, what they told me.
    First and foremost, the Army had its best retention year 
it's had in our recorded history. When asked, the overwhelming 
majority of the response was ``I plan to stay 20 years, and I 
feel as if the traditional retirement system will benefit me 
better in the future.'' That's very positive for us. We're 
seeing the similar results this year. Our retention rates are 
at historic highs, and we've already achieved over ninety-some 
percent of our annual mission, and it's only February.
    The second one is our mid-grade NCOs [non-commissioned 
officers] felt they were too far into their careers to be able 
to capitalize on the full investment of the blended retirement 
matching contribution. Also, again, that they would want to 
stay with the traditional.
    Then lastly, I think, was the other one, sir, is that it's 
the downfall of the--our enlisted soldiers, when they retire, 
their compensation is commensurate to their service. We thank 
Congress for that. But largely, they have to take that 
compensation to invest in one thing that most American families 
do throughout their lives, and that's a home. Losing 10 percent 
of that compensation at the end of their service, trading that, 
hurts them because it's working capital. Under the new Blended 
Retirement System, they'd have to wait until age 59 to access 
those funds without penalty. That's what convinced a large 
portion of them that they'd want to stay under the traditional 
system so they can use that working capital as soon as they get 
out of service, sir.
    Senator Tillis. I guess in some respects, I remember when 
we were talking about this that we were concerned that it could 
potentially hurt attrition or discourage longer-term service, 
but it doesn't look like that's been realized; if anything, 
quite the contrary--people are thinking through what they're 
going to do with their careers in the Army?
    SMA Dailey. I think so. I think it's--I don't think it's 
negative. I think that soldiers that come in now understand the 
value of investment. It has helped us from a financial literacy 
perspective. Some of their responses, and they're very 
detailed--I don't want to read them to you because we don't 
have that much time--it proves that these soldiers are really 
thinking about their financial futures. That's what's 
important. Our leaders are talking to our soldiers about 
investment. I think that blended retirement in the future will 
serve them well.
    I think there are issues with where we cut it off for the 
senior people in service, at 26 years. I think that's going to 
create some challenges for our senior enlisted folks in the 
future. I can't predict that, but I think that may be a 
challenge for the future that we'll have to deal with.
    Senator Tillis. Thank you.
    Sergeant Major, why do you reckon that the marines are 
opting in at about 70 percent?
    SgtMaj Green. Well, sir, I think, number one, sir, you're 
absolutely correct. It's causing a--first, the Commandant 
mandated from day one that every marine be educated on it, 
online and in person. So once they were educated, we captured 
the numbers by marking that in our MAGTF [Marine air-ground 
task force] system so that we would know when everyone was 
educated. Through that education, which we've never, ever had a 
moment in time in my 35 years of serving where we've done that 
type of education on financial management for everyone. So it 
was very positive. Like Sar-Major Dailey said, people making 
life decisions. We're the only service, you know, average 60 
percent 25 years or less.
    So we encouraged the marines to do that. Through the app 
that they could go into or going online, it explained over a 
period of time what would happen if you placed that 5 percent 
or one percent or whatever it is in there and allowed the 
government to match it over a period, you know, when you get to 
60 years, exactly what your savings was. So people could really 
make decisions about their lives, and families could sit down 
and talk about it. It was happening all over the Marine Corps, 
and it's still happening, sir, as we go out today and talk to 
them. So thank you, sir.
    Senator Tillis. Thank you. I know the Navy and the Air 
Force are somewhere in between, but I don't necessarily have an 
expectation, because the nature of the different missions, that 
you would all be at the same level, but I would like a lot of 
feedback. I think we have to continue to focus on financial 
literacy here in the Senate. Every year, I walk up and down my 
post telling everybody if they're not in the TSP [Thrift 
Savings Plan] program, they're leaving money on the table, and 
that's kind of dumb. You can't necessarily say it that way. 
Apparently I can in a Senate office, but----
    [Laughter.]
    Senator Tillis. But I think we need to do that, because 
financial literacy is at the root of it for these younger 
people. I'm glad to hear, Sergeant Major, that you feel like 
they're becoming more sophisticated. But they need to 
understand now that culture of savings for the future.
    We'll start with Air Force and Navy about military housing. 
Let me make a general comment first. I like what I have heard 
from you all, what I've heard from the secretaries and the 
Service Chiefs. I think we want to make sure, just from a 
messaging standpoint, when we talk about 100 percent 
inspection, it's really 100 percent visits and with a family 
welcoming an inspection, so that nobody gets the message that 
all of the sudden mandatory inspections.
    If you happen to be in probably more than half of the--well 
over half are acceptable conditions, not the conditions we're 
talking about, and you have somebody knock on your door and 
say, ``I'm here for inspection,'' if you're knocking on my 
wife's door, that's not going to end well. I don't care if 
you're a marine, sailor, airman, or soldier.
    I think we just need to make sure people understand this is 
giving every single military family who is in housing an 
opportunity to be heard, and we're going to escalate the 
remediation while we fix the systemic problem. I don't think 
I'm at odds with anybody when I make that statement. I just 
want to be clear so that people understand the words.
    Now I want to talk a little bit about--I met with General 
Milley yesterday, and I told him when I was down at Fort Bragg, 
I have no doubt that if it had been raised to his level, some 
of the things that we had reported in the committee a couple of 
weeks ago, that he would have been all over it.
    Why didn't we know? What's missing now or what's in place 
now that's not working that let this reach this point? We'll 
just go down the line. Or actually, we'll start with Chiefs 
Smith and Wright and then move down the line.
    MCPON Smith. Senator, I think that the thing that's 
missing, really, is the way sailors and families want to 
communicate now is a little bit more heads-down, in an app, 
online, in places that maybe traditionally we aren't looking 
for those. We're looking for them to call somebody and ask. 
We're looking for them to come to a physical town hall meeting, 
a place where we're going to have a gathering of folks. That's 
not necessarily where they want to go to communicate. Some do, 
some don't.
    We need to be a little bit more diverse in how we reach out 
to folks and be a little bit more intrusive-evasive trying to 
pull information, rather than waiting for them to come to us 
with it, and also make ourselves available in more spaces and 
places, both online and in person, to ensure that we're 
actually hearing our sailors.
    CMSAF Wright. Senator, I think what was missing is there 
was a little bit of cloudiness on accountability in terms of 
the privatization partners that we work with and the 
installation commanders. I think the Secretary of the Air Force 
referred to it as a health and safety review, not necessarily 
an inspection.
    I think now we've tried to be clear about who's responsible 
for what, what responsibilities to the housing management 
office that's on the base and exactly who they work for. So I 
think now once all of our commanders go and do those reviews, 
they'll be certain about what the lines of communication are, 
what the lines of accountability and responsibility are.
    Most of these things, probably the first entry is through 
our first sergeants, the senior NCOs that are responsible for 
taking care of people and people issues. In all likelihood, 
most of those first sergeants and unit level commanders, they 
try to take care of these things without elevating them 
certainly all the way to the Chief of Staff, the Secretary, or 
one of us. But you know, obviously now with so much attention, 
I think it'll certainly be different in that when these things 
happen and we're not getting the response back from our 
privatization partners, that it'll be elevated up the chain and 
taken care of.
    Senator Tillis. Yeah, we're going to look at--to me, 
anybody that jumps to a conclusion that it was any one entity 
that's at fault, then I know that they haven't studied the 
issue. We know that the housing providers made a mistake. We 
know that there was an inflection point after the basic 
allowance for housing was adjusted 5 or 6 years ago. We know 
that we have 82 or so different contracts, a couple of dozen 
different contractors, no consistent method of engagement, and 
measurement. I know that we need to fix it. But I also just 
wonder why--I know that we have the--I can't remember the exact 
title, but housing liaisons or someone on post, where were 
they, and why did they not feel like they were the ones that 
were absolutely the advocates to bump it up the chain of 
command if their direct commanders did not feel empowered or 
were not informed?
    I think part of what we have to do is, you know, we're not 
talking about complaining over beige versus oyster colored 
paint in the bedrooms. We're talking about black mold and leaks 
and sewage and other issues that anybody in the chain of 
command--and I said this in the meeting and I'll say it here--
anybody in the chain of command that says you're just whining 
if you complain about that, that better not show up in your 
personnel record because that'll be the last time it comes 
through my committee. I think that I speak for all the people 
here that that's an expectation. We take care of them in the 
same way that we're providing quality health care.
    I'm interested in you all going back and trying to create 
some models for what was in your lanes. What do you think was--
and this is not a witch hunt. This is a process improvement 
modernization effort that I want to play a part in. So I want 
you all's specific advice on how we can better connect those 
dots and have a safety valve.
    Then finally, I just want to echo what Senator Warren said 
on childcare. I think we're doing a good job on childcare of 
making it available, making it affordable, but I also believe I 
may take exception with the difference between families that 
we're sometimes deploying the mother and the father and taking 
care of kids and putting them in a very dangerous situation. We 
may have some private sector issues we need to fix, but this 
needs to be a priority. I'm glad that it was, and I'm glad 
you're doing it so extraordinarily well, because that, too, is 
a part of the total compensation that hopefully when you go out 
and you're up against your recruiting challenges, you're well 
received. It's just another part of the benefits package.
    I've actually gone over 7 minutes, and enjoyed every bit of 
it.
    [Laughter.]
    Senator Tillis. But we're going to have a lot of--we'll 
have some questions for the record, but I think that you all 
know that I'm particularly interested in hosting you in my 
office, having a discussion, having the committee staff there 
and other committee members who want to attend, particularly as 
it relates to the housing issue.
    I will tell you, I'll tell everybody, if you're in North 
Carolina and you don't feel like somebody's listening to you, 
you open up a case in my office, and I'll guarantee you that 
somebody will be listening to you. I want these problems 
solved, and I want you all to point at Congress when some of 
the root causes are congressional decisions in the past if you 
find them. We need to have an open dialogue and not assume that 
any one person needs to charge this. We need to all go after 
it.
    So I appreciate you all being here today, your continued 
service, and I look forward to interacting with you outside of 
the committee.
    This committee is adjourned. Since some members were not 
here, we may hold the record open until next week, just for 
some questions for the record.
    Committee's adjourned.
    [Whereupon, at 4:03 p.m., the Subcommittee adjourned.]

    [Questions for the record with answers supplied follow:]
            Questions Submitted by Senator Elizabeth Warren
                       flag officer announcements
    1. Senator Warren. Vice Admiral Burke, a recent article in U.S. 
Naval Institute News reported that the Navy had stopped publicly 
announcing its flag officer nominations, stating ``[S]ince October, 
Navy leadership made a conscious decision to not share their flag 
nominations with the Pentagon's press office or with its own office of 
information.'' The report noted that the Air Force and Marine Corps 
continue to publicly release the names of all nominees to general 
officer. I understand that the Navy's position is that these nominees 
are all publicly available on the Senate webpage and so a press release 
from the Navy is unnecessary. Regardless, I find this lack of 
transparency to be quite troubling and unjustified given that the Navy 
previously made such announcements for many years, and that the Marine 
Corps continues to do so. Did this proposal originate in your office? 
If not, where did it originate?
    Vice Admiral Burke. Flag officer nominees continue to be publicly 
listed on the Senate website, but Navy no longer issues press releases 
for flag nominations, bringing our practice for Flag officers in line 
with all other officers. Transparency is important and we acknowledge 
this is a change to our past procedures; but the change is one step in 
our efforts to find the right balance between transparency and 
security. Recent vulnerability assessments reflect that transparency 
contributes to greater vulnerabilities in cyberspace. Our adversaries 
are working tirelessly to collect intelligence on our personnel in the 
online domain and using it to disrupt our operations and gain 
competitive advantage by monitoring and exploiting information we post 
on social media and various other internet forums. Limiting the public 
release of flag officer assignments and nominations is a first step 
intended to help flag officers secure their cyber profiles, which may 
be exploited by adversaries. We are reviewing other measures that may 
be necessary to reduce vulnerabilities for flag officers and other at-
risk cadres within the Navy.

    2. Senator Warren. Vice Admiral Burke, did you recommend or concur 
with the recommendation to stop issuing press releases of flag officer 
nominations?
    Vice Admiral Burke. Based upon the vulnerability assessments, I 
concurred with the current measures in place to limit announcement of 
flag officer nominations and assignments.

    3. Senator Warren. Vice Admiral Burke, who approved the decision to 
stop issuing press releases of flag officer nominations?
    Vice Admiral Burke. The decision to limit announcement of flag 
officer nominations was made by the Chief of Naval Operations, on the 
advice of other senior Navy leaders.

    4. Senator Warren. Vice Admiral Burke, the Navy has issued press 
releases with the names of all nominees to flag officer for many years. 
The other three services continue to do so today. What is the specific 
reason the Navy used to justify this recent change in policy?
    Vice Admiral Burke. Recent vulnerability assessments reflect that 
transparency contributes to greater vulnerabilities in cyberspace. Our 
adversaries are working tirelessly to collect intelligence on our 
personnel in the online domain and using it to disrupt our operations 
and gain competitive advantage by monitoring and exploiting information 
we post on social media and various other internet forums. Limiting the 
public release of flag officer assignments and nominations is a first 
step intended to help flag officers secure their cyber profiles, which 
may be exploited by adversaries. We are reviewing other measures that 
may be necessary to reduce vulnerabilities for flag officers and other 
at-risk cadres within the Navy.

    5. Senator Warren. Vice Admiral Burke, the Navy maintains the 
biographies of flag officers on Navy hosted websites. Are there 
negative consequences to maintaining a similar website with all flag 
officer nominees? If so, what are they?
    Vice Admiral Burke. The posting of flag officer biographies on 
Navy-hosted websites has been identified as another potential 
vulnerability and is currently under review.

                           APPENDIX A

  Prepared Statement by The Military Officers Association of America 
                                 (MOAA)
    Chairman Tillis and Ranking Member Gillibrand. On behalf of the 
Military Officers Association of America (MOAA), we are grateful for 
this opportunity to express our views and appreciate the subcommittee 
hosting this hearing on military personnel policies and military family 
readiness.
    MOAA does not receive any grants or contracts from the Federal 
Government.
                           executive summary
    MOAA holds the following military personnel and family issues as 
our top priorities:

      Personnel Issues:
        Fiscal Year 2020 Military Pay Raise of 3.1 percent: 
Ensure the military pay raise is equal to the growth in the Employment 
Cost Index as intended by Congress in statute.
        Military Housing and BAH: Eliminate health and safety 
hazards in government and privatized housing; maintain current housing 
allowance rules.

      The Military Health System:
        Projected cuts to medical billets could have a lasting 
impact on medical readiness.
        Reducing access to military treatment facilities forces 
beneficiaries out into the community, where copayments are 
disproportionately increasing.
        MOAA seeks Congressional oversight to evaluate and 
stabilize TRICARE programs and fees--fee increases should be tied to 
the direct cost of care, not to medical readiness or other defense 
programs.

      Military Families:
        Military spouse unemployment and underemployment remain 
significantly higher than national averages; we need DOD and Congress 
to help solve this problem.
        Childcare availability and challenges with military 
moves are taking their toll on families. These two issues, left 
untended, are likely to impact retention and erode family readiness.

      Survivor Benefits:
        Survivors forfeit some or all of their annuity to 
offset the VA's Dependency Indemnity Compensation. We need help from 
Congress to repeal the offset or, in the interim, support an increase 
to the Special Survivor Indemnity Allowance (SSIA).

      Retirement Issues:
        Extend Concurrent Retirement Disability Pay (CRDP) 
benefits to both ``Chapter 61'' medically retired personnel and those 
with 20 or more years of service and disability ratings less than 50 
percent.

      Defense Resale:
        Total consolidation of the exchange systems and the 
commissary may be premature and based on incomplete assessments. MOAA 
recommends the Government Accounting Office review the enterprise 
management task force's recommendations before any further commitment 
to consolidation.

      Arlington National Cemetery:
        The Advisory Committee on Arlington National Cemetery 
(ACANC) recommended the Secretary of the Army limit interment 
eligibility using criteria that would make a vast majority of current 
retirees ineligible for interment at ANC.
                            personnel issues
Military Pay Raise of 3.1 Percent
    MOAA urges the subcommittee to keep military pay commensurate with 
service and aligned with private-sector wage increases. We seek your 
support for a military pay raise equal to the growth in the Employment 
Cost Index, determined by the Bureau of Labor Statistics to be 3.1 
percent for fiscal year 2020. Further, we ask the committee to 
incrementally restore full pay-raise comparability by closing the 
residual pay-raise-gap, which currently stands at 2.6 percent after pay 
raise caps in fiscal years 2014, 2015, and 2016.
Military Housing
    MOAA has concerns over proper communication and abatement of health 
and safety hazards in military housing, barracks, and facilities. These 
concerns are shared by military families, other Military Service 
organizations, and Congress. Specific issues include:

      Quality and Responsiveness of Maintenance: Concerns of 
improper or temporary fixes to maintenance issues, as well as 
incomplete work orders being closed out and marked complete. Further 
compounding the challenges for the families are the ineffective or 
nonexistent responses from maintenance workers when called to address 
these health and safety hazards in both old and new homes.

      Limited Oversight Authority: DOD and Military Services 
purportedly have no control over privatized housing managed by Public-
Private Partnerships due to lease agreement restrictions; this hands-
off approach has led to limited or nonexistent engagement by the DOD 
chain of command.

      Communication with Health Officials: Communications are 
limited or nonexistent between housing officials and military treatment 
facilities regarding the health issues brought about by these known 
environmental factors. Lacking is the data collection, health 
assessments, and documentation to capture the impact on these families 
and to support longitudinal studies about longer-term effects.

      Tenant Rights: Restrictive or nonexistent tenant rights, 
for those in privatized military housing, create barriers to both legal 
action and access to appropriate health officials.

      Out-of-Pocket Expenses: In many cases, servicemembers and 
their families have borne the costs for hazard remediation, for 
additional health care, or to move out of unsafe or unhealthy housing.

      Insufficient Staffing and Funds for Government Owned 
Housing/Barracks: Reports of insufficient manpower to complete work 
orders timely and properly, and a lack of funding to take on major 
renovations or extensive abatements.
  MOAA Recommends:
        Congress give DOD the support to renegotiate lease 
agreements with public-private partners to allow for more oversight and 
accountability, and to ensure tenants have a bill of rights similar to 
tenants on the local economy.

        Congress charge DOD with providing military families 
with information on how to seek legal recourse for housing disputes and 
provide training for JAG officers to assess proper action within the 
military organizations or through referral services.

        Congress appropriate sufficient funds to military 
construction to specifically address needed renovations in government-
run military family housing and barracks.
Basic Allowance for Housing (BAH)
    MOAA strongly believes BAH is an essential component of Regular 
Military Compensation (RMC). Decisions to join and stay in the military 
are based on several factors, of which compensation and benefits are 
notably prominent. Changes to military pay and housing allowances 
likely would have a negative long-term effect on both recruitment and 
retention.
    Further, any changes to RMC should be thoroughly studied and 
vetted. To that end, on September 15, 2017, the President charged DOD 
to conduct the Thirteenth Quadrennial Review of Military Compensation 
(QRMC), which will assess the adequacy of military compensation to 
include basic pay, housing, and subsistence allowances. The premise of 
the review is to determine `` . . . whether an alternate compensation 
structure, such as a salary system, would enhance readiness and better 
enable the Department of Defense to recruit and retain tomorrow's 
force. . . ''
    The President will submit the QRMC report, along with any 
recommendations he wants to make, to Congress for their consideration 
regarding the uniformed services statutory salary system. This process 
allows Congress to evaluate the changes and potential impact across all 
seven uniformed services--each represented on the QRMC.
CBO Options for Reducing the Deficit: 2019 to 2028; Discretionary 
        Spending--
        Option 15
    MOAA is concerned the Congressional Budget Office (CBO) included on 
its list of options a gradual reduction of BAH down to 80 percent of 
the cost of adequate housing relative to the member's pay grade. As 
pointed out by the CBO, these decrements also would apply to the BAH 
payments made to the Public-Private Partnerships who manage privatized 
government housing.
    Also noted is the potential to change policies to allow those 
housing managers to subsequently charge the servicemember up to the 20 
percent difference. It is likely housing managers would seek this 
change in policy as most housing projects are experiencing financial 
shortfalls with impacts on maintenance and renovations (per GAO-18-218 
study, March 2018).
    With a heightened focus on privatized government housing after the 
Senate Armed Services Committee hearing on February 13, 2019, any 
changes to BAH, however gradual, only paint a worse picture for 
servicemembers and their families who reside in privatized government 
housing.
Military-to-Military Married Couples, and Military-to Military Married 
        Couples with Dependents
    Any potential assertion to reduce BAH for dual military couples is 
of concern to MOAA. We believe removing any portion of an individual's 
earned compensation due to marital status is a discriminatory practice. 
Additionally, the with-dependent rate BAH should not be eliminated from 
a military family for the same reasons. The government should not abuse 
its own1knowledge of the marital or family status to reduce the 
allowance of either of the individual servicemembers who earn their BAH 
as part of their Regular Military Compensation.
    This concern has increased lately based on the recent military 
housing problems already noted and the fiscal challenges within DOD and 
Congress who likely could seek funding offsets to help correct the 
deficient outcomes of privatized government housing. We should not put 
the burden of solving the government's housing problems on the backs of 
servicemembers and their families.
  MOAA Recommends:
        Congress sustain current BAH program rules and 
calculations for all servicemembers, regardless of their marital status 
or housing-sharing status, and restore BAH rates to match 100 percent 
of median housing costs once fiscal conditions permit.

        Congress evaluate the QRMC's progress and ultimate 
recommendations toward changes in Regular Military Compensation that 
may have lasting and negative impacts on both recruiting and retention.

                               __________
                       the military health system
    We are appreciative and applaud the implementation of a broad range 
of TRICARE policy improvements regarding needed attention with 
appointment-making systems, hours of operation at military treatment 
facilities (MTFs), and enhanced breast cancer screening coverage, among 
others. During the past few months, we also have seen some improvement 
in managed care contractor performance and beneficiary experience in 
both TRICARE regions. We continue our interest and oversight with the 
consolidation of the MTFs under the auspices of the Defense Health 
Agency (DHA). When this organizational change is complete, we view this 
as providing beneficiaries with consistent policies and procedures 
between the respective services and military treatment facilities.
  Areas of Concern Regarding the Military Health System (MHS) and 
        TRICARE
Reduction in Military Medical Personnel End-Strength
    If the numbers are as large as we have been led to believe 
(approximately 17,000 billets), this potentially will exacerbate access 
to care for certain specialties and may have considerable effect on 
military beneficiaries and overall medical readiness in significant 
ways.
    Proposed personnel reductions of such magnitude surely will affect 
military medical training platforms. It takes years to produce educated 
and trained physicians, and there are projections of physician 
shortages: A recent study released by the Association of American 
Medical Colleges predicts that by 2030, the United States will face a 
shortage of between 42,600 and 121,300 physicians. As we have seen with 
pilot shortages, a dwindling national pool creates an exceptional 
amount of competition for qualified talent. Any level of physician 
shortages will translate directly to military medical care and, 
subsequently, overall military readiness. We cannot expect to have a 
medically ready force without the requisite medical capabilities.
    With respect to beneficiaries, cuts of any magnitude will likewise 
translate into either decreases in services at MTFs, which we have 
already seen, or transfers to community care where the workload would 
be challenged by the projected physician shortages already noted. 
Getting private-sector medical professionals to take jobs near rural 
bases may not be realistic or feasible.
    Beneficiaries, including Active Duty families who receive care at 
MTFs, may be forced to seek care in the TRICARE networks. Pediatric and 
obstetric care--both of which are now available to these 
beneficiaries--may vanish from the MTFs altogether. Lab and pharmacy 
services, along with radiology, may be greatly reduced. We already are 
starting to see TRICARE Prime retirees being re-enrolled from MTFs into 
the civilian networks, resulting in them being charged with new, and 
higher, copayments and annual enrollment fees.
  MOAA Recommends:
        Congress request a hearing on DOD's plan to account for 
medical readiness in lieu of the significant, projected shortage of 
physicians as noted by the Association of American Medical Colleges.

        Congress closely review proposed cuts to assess the 
impact on DOD's responsibility to care for the currently serving, their 
families, and retirees.
Centralizing Command and Control
    The Defense Health Agency (DHA) is preparing to take command and 
control of all three of the services' hospitals and clinics. Congress 
passed this new MTF oversight plan almost 2 years ago as part of a 
sweeping list of military health reforms. The first phase is underway, 
with completion expected by 2021. Under these enhanced responsibilities 
comes the opportunity for DHA to take an active role in addressing the 
needed medical care, documentation, and reporting on the health 
concerns associated with mold and toxic exposure in government contract 
housing and military installations in general.
Fewer Hospitals
    MOAA is concerned there appears to be a coordinated effort to 
reduce the size and scope of the MTFs. We asked DOD about it because of 
information we received from some of our MOAA members, then verified by 
inquiring with the services' medical headquarters. This trimming 
exercise is concerning and bears close watching. An MTF provides 
medical and health services primarily designed for the Active Duty 
servicemember first. However, some MTFs have expanded services to care 
for families of Active Duty and retirees, and there is a range of sizes 
of MTFs, from small clinics to medical centers with comprehensive 
services.
Air Force Shrinking TRICARE Prime Roles
    MOAA has learned the Air Force is in the process of reducing its 
primary care TRICARE Prime enrollments within each of its MTFs. While 
individual MTFs have fluctuated over the years when it comes to the 
availability of services, these fluctuations usually were due to 
changes in the readiness missions on various bases. The Air Force's 
change in enrollment policy is a result of other factors, as the 
service has stated. The reduction in beneficiary enrollment to MTF 
primary care providers (other than Active Duty) is due primarily to the 
national shortage of primary care providers. This shortage, combined 
with inconsistent policies of MTF primary care enrollments and other 
factors, has resulted in sub-optimal access to health care for 
beneficiaries.
Inpatient Services Closing at Other Installations
    The other services are experiencing the same challenges noted by 
the Air Force. Other recent changes within the military health system 
include the closure of inpatient services at the naval hospital in 
Pensacola, FL, and the closure of inpatient pediatric services at 
Womack Army Medical Center at Fort Bragg, NC.
  MOAA Recommends:
        Congress continue to watch for other reductions in 
capability and service as they impact all categories of beneficiary, 
but especially those who use TRICARE Prime and TRICARE for Life.
TRICARE Fee Issues
    We remain concerned with the results from DOD's Interim Final Rule 
(IFR) which was issued in the fall of 2017. With this regulation, the 
DHA unilaterally implemented an across-the-board fixed-fee copayment 
schedule for TRICARE Select and increased TRICARE Prime fees. We 
believe these structural fee changes undermined the intention of the 
2017 NDAA law, which prescribed current military members and their 
families, as well as retirees, were to be grandfathered from cost-share 
increases. Both TRICARE Prime and TRICARE Select beneficiaries have 
experienced steep increases, in addition to already much higher 
pharmacy copayments.
    MOAA has heard how these fee increases are impacting beneficiaries 
through our survey data. Understandably, all categories of 
beneficiaries, regardless of their geographic location, are 
disappointed and concerned regarding these changes, and they already 
are having a negative and costly impact. Beneficiaries report delaying 
and, in some cases, canceling needed care.
    The DHA contends the new TRICARE Select fixed-dollar copayments 
represent an average of the percent cost shares beneficiaries had 
previously paid for TRICARE Standard/Extra visits.

        Controverting DHA's claim that current copayments represent 
        past averages, MOAA submits TRICARE Select copayments are much 
        higher than (the prior-named) TRICARE Standard/Extra programs. 
        In particular, copayments for specialty care such as physical 
        therapy and mental health are now required more frequently 
        throughout treatment. As a direct result, many beneficiaries 
        have reported either delaying or going without needed health 
        care.
  MOAA Recommends:
        Congress review the actual budget accounting data 
relative to these fee increases and the unintended consequences 
regarding this marginalization of specialty care.

    In conclusion, we continue to assert DHA's program changes reversed 
the spirit and intent of the TRICARE fee grandfathering provisions in 
the fiscal year 2017 NDAA. DOD health care costs overall may be 
increasing, but the actual costs to DOD for both TRICARE for Life and 
purchased care have been stable according to DOD's own data from its 
annual reports to Congress.
    Additionally, we believe TRICARE beneficiary fees should not grow 
faster than their military or retirement income. To this end, we 
continue to support fee increases based on COLA [Cost of Living 
Adjustment], as established in current law.

                               __________
                           military families
Military Spouse Unemployment and Underemployment
    When military spouses follow their servicemember from one 
assignment to the next, their short-term and long-term earnings suffer 
. . . notably. Despite recent efforts to improve military spouse 
unemployment, it still remains four times higher than the civilian 
rate. According to the U.S. Chamber of Commerce's 2018 statistics, 
major barriers to gaining employment include frequent moves, lack of 
childcare, limited availability of flexible work options, 
underemployment/few options for meaningful employment in local areas, 
and issues with licensure portability.
    The compounding of financial challenges (unemployment or lower 
earnings and loan debt) specifically related to spouse employment is a 
significant factor for military families in the decision a 
servicemember faces with regard to serving another tour or making the 
military a career. There are opportunities to battle this retention 
challenge at the federal level:

      Robust military spouse employment support programs to 
help gain employment at the level commensurate to their qualifications.

      Regular and rigorous data collection on employment 
statistics to identify program or policy gaps within DOD, state and 
local governments, and the private sector.

      Policies to support employment of military spouses in DOD 
contracts and activities.

    MOAA regularly promotes the DOD's Spouse Education and Career 
Opportunities program. These support systems have advanced over the 
years to address a more complex environment. The addition of 
specialized career counselors, improved web interfaces and employment 
portals, and support for entrepreneurs all are welcome advancements 
intended to address the real needs heard from military spouses in the 
labor market. Recent studies by RAND and GAO have outlined the positive 
impact the My Career Advancement Account (MyCAA) has had on spouse 
employment and military retention. However, the program is underused 
and restricted to lower ranks and specific degrees.
  MOAA Recommends:
        Congress expand MyCAA to all ranks and degree levels to 
help fill critical-need occupations in the U.S. workforce (e.g., 
nursing, transportation, engineering, IT, and childcare).

        Congress and DOD support continued investment in these 
programs to better support military spouse employment, particularly in 
DOD activities at OCONUS [outside continental United States] locations.

        Congress direct comprehensive data collection on 
military spouse employment. This survey should assess the career fields 
of military spouses and their experience, education, underemployment, 
number of transitions, and access to remote or telework, to name a few 
critical topics. This data should be made public and used as a tool to 
improve federal programs for military spouse employment.
Contractors
    We hear from contractors of the difficulty in maintaining 
employment positions for military spouses. In some cases, the 
contractor would prefer to hire the spouse but is prohibited by the 
contract. Terms of contracts may prohibit telework or outline that an 
employee must be located in a certain geographic region. Without 
allowing for military spouses, the terms of some contracts effectively 
terminate the spouse's employment upon a PCS.
  MOAA Recommends:
        Congress to pass reforms facilitating changes to 
defense contracting rules and encouraging military spouse employment. 
This should provide needed language for contractors to continue 
military spouse employment at a new duty station.
Licensure
    License portability remains a challenge at the state level. While 
all states have passed some legislation to facilitate portability, some 
career fields are necessarily left out of that legislation. Education 
and health care are two such career fields, and they are two of the 
most common among military spouses. A viable option for portability in 
these professional and highly regulated career fields is to create 
interstate compacts. A successful example is the Nurse Licensure 
Compact, which covers a wide majority of states. However, the cost of 
these compacts can slow the process for their creation.
  MOAA Recommends:
        Congress explore grant opportunities to fund interstate 
compacts for career fields that could have the greatest impact on 
military spouse employment.
Childcare
    At a recent quality of life hearing held by the House 
Appropriations Subcommittee on Military Construction, Veterans Affairs, 
and related agencies, senior enlisted leaders from every service 
identified childcare affordability and availability as a top concern 
impacting quality of life for military families. While these are 
pervasive problems nationwide, it is exacerbated for military families 
due to frequent moves and deployments. Additionally, according to the 
U.S. Chamber of Commerce's 2018 statistics, one of the top challenges 
for military spouse employment is finding affordable childcare.
  MOAA Recommends:
        Congress legislate improvements to military childcare 
systems to include capacity and childcare staff solutions to ensure 
adequately trained and compensated staffs.
PCS moves
    There has been growing concern over quality and oversight of PCS 
moves. Military families move approximately every 2-3 years. Often 
these moves happen in ``seasons,'' creating a high demand and 
operational tempo for military movers. Last year, TRANSCOM reported 
approximately 10 percent of military members experience unnecessary 
damages of their household goods (HHGs), improper documentation of 
items, and delays in receiving their HHGs. Despite growing concerns and 
a recent Change.org petition demanding more accountability of military 
movers, a recent RAND report suggested military families already have 
sufficient resources for PCS support. While the resources may be in 
place, there seems to be inconsistencies between the services being 
offered and the support military families actually receive. We support 
efforts by TRANSCOM to address these concerns and the creation of an 
advisory panel to provide the families a voice in the PCS process. 
However, more needs to be done.
  MOAA Recommends:
        Congress initiate an independent review by the 
Government Accountability Office to measure the effectiveness of DOD's 
PCS process, current PCS support programs, and current quality control 
issues families experience.

                               __________
                           survivor benefits
    MOAA is very grateful for Congress's continued efforts over the 
past decade to end financial penalties for military survivors.
    However, one looming inequity remains. MOAA believes strongly 
current law is unfair in reducing military Survivor Benefit Plan (SBP) 
annuities by the amount of Dependency and Indemnity Compensation (DIC) 
payable from the VA. This penalty is commonly referred to as the 
``Widows Tax.''
    MOAA believes SBP and DIC are paid for different reasons. SBP is an 
insurance product purchased by the retiree to provide the survivor 55 
percent of SBP-covered retired pay if the retired member dies for any 
reason. DIC is a special indemnity compensation paid to the survivor 
when Military Service caused the member's premature death. In such 
cases, the VA indemnity compensation should be added to the SBP annuity 
the retiree paid for, not substituted for it.
    Over the years, Congress has helped military survivors by raising 
the lump-sum death gratuity for servicemembers who died after 2001, 
ending the Widows Tax for survivors who remarry after age 57, and 
authorizing in fiscal year 2008 the Special Survivor Indemnity 
Allowance (SSIA), a modest rebate to those subjected to the Widows Tax. 
Subsequent legislation (P.L. 115-91) made permanent SSIA and indexed 
future increases to COLA.
    Through the Subcommittee's hard work, the SSIA has eliminated 
roughly 25 percent of the SBP-DIC penalty.
    The best solution--and MOAA's ultimate goal--is to eliminate the 
SBP-DIC offset in its entirety.
    We know members of the Subcommittee are sympathetic to this goal. 
We also are more than sensitive to the Subcommittee's struggles in 
dealing with mandatory spending requirements to address this and a 
range of other issues.
    MOAA has proposed alternative legislation to increase the SSIA 
monthly allowance by approximately $50 per fiscal year from fiscal year 
2020 to fiscal year 2029, with the ultimate goal of repealing the SBP-
DIC offset in 2030.
  MOAA Recommends:
        To the extent broader relief can't be achieved in the 
near term, MOAA urges the Subcommittee to identify some level of 
offsets that will allow increases of the SSIA to make further progress 
in phasing out the SBP-DIC offset.

                               __________
                           retirement issues
  Concurrent Receipt for Medically Retired Servicemembers
    MOAA places a priority on extending Concurrent Retirement 
Disability Pay (CRDP) benefits to disabled retirees commonly referred 
to as ``Chapter 61'' retirees, named for the title 10 U.S.C. chapter 
under which their retirement was approved. These individuals departed 
service with fewer than 20 years of service due to illnesses or 
injuries beyond their control--some served for more than 19 years. MOAA 
supports legislation in both the House of Representatives and the 
Senate to address this.
  MOAA recommends:
        Congress extent Concurrent Retirement and Disability 
Payments to disabled retirees not eligible under current statute.
Concurrent Receipt for Retired Servicemembers with Disability Rated 
        Less Than 50 percent
    MOAA supports extending Concurrent Retirement Disability Pay (CRDP) 
benefits to retirees with disabilities rated less than 50 percent. With 
regard to the omission of this population in earlier legislation, and 
as noted in H.R. 303 by Mr. Bilirakis (R-FL), ``Congress acknowledges 
the regrettable necessity of creating new thresholds of eligibility 
that understandably are disappointing to disabled retirees who fall 
short of meeting those new thresholds. Congress is not content with the 
status quo.''
  MOAA recommends:
        Congress extend Concurrent Retirement and Disability 
Payments to retirees with disabilities rated less than 50 percent.

                               __________
                             defense resale
    MOAA thanks Congress for its continued vigilance over commissary 
and broader defense resale reforms. MOAA supports reforms to protect 
the longevity of the defense resale system and its dividends for 
Morale, Welfare, and Recreation; savings for patrons; customer 
satisfaction; and product quality.
    The recent business case analysis conducted by the enterprise 
management task force recommends the consolidation of the four exchange 
systems and the commissary. While we are not opposed to consolidation, 
we do have concerns--along with The Military Coalition and the military 
Services--that the intended outcome of a more efficient system may not 
be fulfilled through consolidation. Adding to the concerns are the 
magnitude of the efforts, increasing costs to executing an enterprise-
wide change, and timelines that initially seem unreasonable. These 
concerns stem from what many of us believe was a narrow study.
  MOAA Recommends:
        Congress initiate an independent review by the 
Government Accountability Office on the potential consolidation and to 
further conduct a hearing on the recommendations presented in the 
business case analysis.

                               __________
                      arlington national cemetery
    With the limited capacity for burials remaining at Arlington 
National Cemetery, it is important to consider the plans of the 
currently eligible veteran population when making decisions about 
extending the life of the Cemetery. MOAA espoused this position before 
the Military Personnel Subcommittee of the U.S. House Armed Services 
Committee on March 8, 2018.
    MOAA's position on the future of Arlington National Cemetery is 
informed by engagement with our membership via a survey in 2016 to 
better understand our members' preferences on the topics of restricting 
eligibility and the eventual unavailability of space for new burials.
    The survey reflects MOAA's position on how best to handle the 
future lack of new burial sites at the Cemetery. Participants 
overwhelmingly rejected the idea of restricting military retirees, with 
the significant majority preferring expansion options as the initial 
course of action. Further, most participants favored continued current 
eligibility, at least in the near term, even if that means closing the 
Cemetery to future burials once it reaches capacity.
    The Advisory Committee on Arlington National Cemetery (ACANC) 
submitted recommendations on December 1, 2018 to Secretary of the Army 
Mark Esper, who notified Congress of the recommendations February 8, 
2019. ACANC proposed interment eligibility be altered to identify 
several specific levels of service and sacrifice. In a recent 
engagement between the Secretary and several MSOs [Military Service 
organizations] and VSOs [veterans service organizations], MOAA 
expressed concern that current retirees were not included in the 
eligibility restrictions beyond the remaining World War II and Korean 
War veterans.

        This would mean the majority of the living retiree community, 
        from the Vietnam era through Post-9/11 service, would be 
        ineligible for either above-ground inurnment or interment at 
        Arlington National Cemetery unless qualified otherwise based on 
        certain military awards.

    If burial eligibility restrictions are imposed, MOAA supports a 
compromise in which restrictions would only apply to the [veteran] 
population born after a determined future date; i.e., January 1, 2021. 
This compromise would ensure the current generation of eligible, living 
veterans could plan for interment at Arlington while setting standards 
and expectations for generations well into the future.
    The ACANC recommendations include ``An extensive/expanding network 
of distinguished national cemeteries and state veteran cemeteries,'' 
however, they offer no specific suggestions for such non-contiguous 
expansion. MOAA continues to support expanding the Cemetery beyond the 
current borders and believes this can be accomplished either through 
the creation of Arlington Annexes in each state or through partnering 
with various existing honored military cemeteries for honorary 
representation of burial at Arlington.
    It has taken well over one hundred years for Arlington National 
Cemetery to reach its current and hallowed status--other locations 
could likewise develop their own degree of prominence given time and a 
concerted effort by all.
    We understand the Secretary of the Army is willing to consider 
alternative options until the revised criteria is submitted to congress 
at the end of fiscal year 2019.
  MOAA recommends:
        Congress not take action restricting eligibility for 
the current military retiree population, other than reserving a set 
number of plots for specific honorees, such as those killed in action 
or those who receive the Medal of Honor.
        Congress appropriate funds to undertake acquisition and 
development of adjacent land, including funding of the Southern 
Expansion project currently underway.
        Congress appropriate funds for the study and eventual 
acquisition of, or partnering with, other federal cemeteries to become 
dedicated Arlington annexes.
    Thank you for your considerations.
     Prepared Statement by the National Military Family Association
    The National Military Family Association (NMFA) is the leading 
nonprofit dedicated to serving the families who stand behind the 
uniform. Since 1969, NMFA has worked to strengthen and protect millions 
of families through its advocacy and programs. We provide spouse 
scholarships, camps for military kids, and retreats for families 
reconnecting after deployment and for the families of the wounded, ill, 
or injured. NMFA serves the families of the currently serving, retired, 
wounded or fallen members of the Army, Navy, Marine Corps, Air Force, 
Coast Guard, and Commissioned Corps of the USPHS [United States Public 
Health Service] and NOAA [National Oceanic and Atmospheric 
Administration].
    Association volunteers in military communities worldwide provide a 
direct link between military families and the Association staff in the 
Nation's capital. These volunteers are our ``eyes and ears,'' bringing 
shared local concerns to national attention.
    The Association does not have or receive federal grants or 
contracts.
    Our website is: www.MilitaryFamily.org.
                           executive summary
    The United States military is the most capable fighting force in 
the world. For almost 2 decades of war, servicemembers and their 
families never failed to answer the call, steadfastly sacrificing in 
order to protect our nation. They make these sacrifices trusting that 
our Government will provide them with the tools to keep them ready. 
Continued national fiscal challenges have left military families 
confused and concerned about whether the programs and benefits 
contributing to their strength, resilience, and readiness will remain 
available to support them and be flexible enough to address emerging 
needs. The Department of Defense (DOD) must provide the level of 
programs and resources necessary to meet this standard. Servicemembers 
and their families have kept trust with America through 17 years of war 
with multiple deployments and separations. Unfortunately, that trust 
continues to be tested.
    We ask Congress:
    As you evaluate proposals for changes to pay and benefits consider 
the cumulative impact on military families' purchasing power and 
financial well-being, as well as the effects on the morale and 
readiness of the all-volunteer force now and in the future.
    Please:

        Reject benefit changes and budget proposals that 
threaten military family financial well-being as a way to save money 
for the Government.

        Keep military pay commensurate with service and aligned 
with private sector wages.

        Provide oversight to ensure recently-enacted military 
health reform efforts enhance military families' access to quality 
health care and that readiness costs are not passed along to families 
as cost shares or premiums.

    We ask Congress to make improving and sustaining the programs and 
resources necessary to keep military families ready a national 
priority.
We also ask Congress to:

        Provide oversight to ensure DOD and the individual 
services are supporting families of all components by meeting the 
standards for deployment support, reintegration, financial readiness, 
and family health. Fund appropriately at all levels.

        Ensure military families are provided safe, high-
quality housing.

        Ensure adequate funding for military childcare 
programs, including childcare fee assistance programs. Improve access 
to installation-based childcare and increase availability of part-time 
and hourly care.

        Facilitate easier paths to both licensure and 
employment for military spouses and veterans who are in the mental 
health field when they work with our servicemembers and their families. 
Include military spouses who enter the mental health profession in 
federal loan-forgiveness programs.

        Preserve the savings military families receive by 
shopping at the commissary and oppose any reform measures that would 
reduce the value of the benefit.

        Require pediatricians in Military Treatment Facilities 
(MTFs) to screen patients for food insecurity and provide information 
about applying for WIC [Special Supplemental Nutrition Program for 
Women, Infants and Children].

        Require DOD to study where military families with 
severe special needs are concentrated and whether DOD Impact Aid for 
schools serving military children with special needs is appropriately 
allocated.

        Ensure appropriate and timely funding of Impact Aid 
through the Department of Education (DoEd).

        Continue to authorize DOD Impact Aid for schools 
educating large numbers of military children and military children with 
severe special needs.

        Bring the Extended Care Health Option (ECHO) benefits 
on par with State Medicaid waiver programs and extend ECHO eligibility 
for one year following separation.

        Correct inequities in Survivor benefits by eliminating 
the Dependency and Indemnity Compensation (DIC) offset to the Survivor 
Benefit Plan (SBP).

    After 17 years of war, we continue to see the impact of repeated 
deployments and separations on our servicemembers and their families. 
We appreciate Congress' recognition of the service and sacrifice of 
these families. Your response through legislation to the ever-changing 
need for support has resulted in programs and policies that have helped 
sustain our families through these difficult times.
                          pay and compensation
    We appreciate Congress making the pay raise at Employment Cost 
Index (ECI) a priority in the fiscal year 2019 National Defense 
Authorization Act (FY19 NDAA). Congress chose the Employment Cost Index 
(ECI) as the standard for Active Duty pay raises in order to recruit 
and retain the quality of servicemembers needed to sustain the all-
volunteer force and we thank you for meeting that standard this year.
    Although the last 3 years have seen military pay raises at the ECI, 
reductions to servicemember housing allowances, increased health care 
costs, and the new requirement under the Blended Retirement System for 
new servicemembers to contribute to their retirement savings lower 
servicemember take-home pay. We ask you to consider the cumulative 
effects of these policies on military families' financial well-being 
and reject any proposals that ask families to shoulder a greater 
financial burden.

    We believe that Basic Allowance for Housing (BAH) is an essential 
component of military compensation. We oppose any changes that threaten 
to reduce military families' pay.

    We ask Congress to keep military pay commensurate with service and 
aligned with private sector wage increases.
    We ask Congress to reject budget proposals or benefit changes that 
threaten military family financial well-being as a way to achieve 
savings for DOD.
                         military health system
    One year into Military Health System (MHS) reform, results are 
decidedly skewed toward Department of Defense (DOD) cost savings versus 
MHS improvements for military families. Families are paying 
significantly more out-of-pocket due to increased copays generating 
approximately $166 million, in one year, in savings to DOD. They are 
also seeking less care as evidenced by DOD savings from lower than 
expected health care utilization. DOD is reprogramming these savings to 
pay for readiness--in fact, some of the money has been used for night 
vision goggles. Military families want their servicemembers to be fully 
trained and equipped for their missions, but we believe it is wrong to 
diminish the value of the health care benefit to cover readiness costs. 
Servicemembers and their families already make extraordinary 
sacrifices. Should they also have to pay for their own night vision 
goggles with higher health care fees?
    What have families experienced during MHS reform year one? Military 
families are grateful for referral free civilian urgent care as they 
now have access to care when their military treatment facilities (MTFs) 
are full or closed. However, families have seen few other improvements 
across the system. In fact, TRICARE contractor transition problems 
plagued families throughout the entire year with customer service 
challenges and rampant claims processing problems. Within the direct 
care system, there were few noticeable improvements to administrative 
hurdles or the patient experience. Although we recognize the primary 
objective of MHS reform was cost savings, we had hoped the higher out-
of-pocket costs would be used for improvements across the system to 
address military family complaints. Instead, families are paying 
considerably more for the same broken system.
    To help balance military families' higher out-of-pocket costs with 
improvements to their health care system, we ask Congress and DOD to:

      Modify the TRICARE Annual Open Enrollment/Qualifying Life 
Events policy to prevent military families from becoming trapped in 
MTFs that don't meet their needs

      Reduce copays for mental health visits and physical, 
speech and occupational therapies

      Fix TRICARE coverage gaps for emerging technologies and 
evolving treatment protocols including diagnostic genetic testing and 
chiropractic care

      Allow valid TRICARE Prime specialty care referrals to 
transfer to the new duty station during a Permanent Change of Station 
(PCS)

      Implement the Defense Health Board's recommendation to 
broaden TRICARE's definition of pediatric medical necessity

      Continue to monitor and provide oversight on T17 contract 
implementation

      Ensure military family perspectives are considered as MTF 
management is transitioned to the Defense Health Agency (DHA) and 
direct care system right-sizing is implemented

      Monitor and provide oversight on the TRICARE Dental Plan 
(TDP) to Federal Employees Dental & Vision Insurance Program (FEDVIP) 
transition

      Require DOD to develop and publish performance metrics to 
evaluate Exceptional Family Member Program (EFMP) assignment 
coordination effectiveness

      Align TRICARE Extended Care Health Option (ECHO) respite 
coverage with Medicaid waiver programs

      Require a report providing transparency to the Services' 
process of accessing military dependent medical records for adult 
military kids who enter Military Service themselves
                            tricare program
TRICARE Annual Open Enrollment Period/Qualifying Life Events
    We remain concerned about the annual open enrollment period's 
potential to trap TRICARE Prime families in MTFs that don't meet their 
needs and request that ``dissatisfaction with MTF access or quality of 
care'' be added to the list of Qualifying Life Events (QLEs).
    We realize the annual open enrollment period is a feature of 
civilian plans and generally have no issues with this new requirement. 
However, TRICARE Prime's reliance on military hospitals and clinics 
creates a situation unique to the military and demands a policy 
tailored to military family needs for the following reasons:

      For commercial health plans, the annual enrollment period 
locks in beneficiaries to coverage levels, not a single medical 
facility. While an annual enrollment period is not unreasonable, 
preventing military families from leaving their MTF if they experience 
problems with appointment access or quality of care is unreasonable.

      Given the variability in access, quality of care, and the 
patient experience across the direct system, many military families 
cannot make an informed choice about their TRICARE plan during the Open 
Enrollment Period or following a QLE, such as a PCS move. A family may 
have no problems getting appointments at one MTF but find it very 
difficult to get appointments at their new duty station's MTF. MTF 
access to care can also vary over time as providers come and go, making 
an informed decision nearly impossible.

      As direct care system right-sizing progresses, it will be 
even more difficult for families to make informed choices about their 
TRICARE plan. The Womack pediatric inpatient unit and Langley maternity 
ward closures dramatically changed care options for families assigned 
to these MTFs. These changes were not communicated during open season, 
so families were unable to choose their TRICARE plan with this 
information in mind.

      Allowing families to switch enrollment from Prime to 
Select provides an important aspect of MTF accountability. Analyzing 
enrollment changes from Prime to Select will afford the MHS an 
opportunity to understand why families leave. It should also allow the 
MHS to identify problematic MTFs and target solutions to local access 
and quality of care problems.

    The fiscal year 2017 NDAA gives DOD discretion in defining QLEs. We 
believe one potential solution is to include ``dissatisfaction with MTF 
access or quality of care'' as a qualifying life event. We are open to 
other ideas and stand by to assist in developing a solution that 
prevents military families from becoming trapped in underperforming 
MTFs.
Increased TRICARE Copays
    Premium-free health care is an important component of 
servicemembers' compensation and benefits package. It is an 
extraordinary benefit commensurate with the extraordinary risks and 
sacrifices associated with Military Service. It also ensures all 
military families have access to health care, a critical driver of 
military family readiness. However, we know decisions about seeking 
care are often driven by out-of-pocket costs at point of service. In 
fact, value-based insurance design is built on the principle of 
reducing cost-related non-adherence. Given the important role copays 
play in patient decision-making, we are disappointed and alarmed at the 
careless approach used in establishing copays during TRICARE reform 
efforts.
    The new TRICARE copay construct categorizes mental health 
outpatient visits, as well as physical, speech and occupational 
therapies, as specialty care. This results in copays that are 
excessively high for relatively low-cost visits. We urge DOD and/or 
Congress to establish more reasonable copays for mental health visits 
and physical, speech and occupational therapies to bring them in line 
with high quality commercial plans and reduce the cost barrier to 
seeking care.

      TRICARE's new mental health copays are not only a 
significant increase compared to 2017, they are also higher than out-
of-pocket costs for mental health care under Federal Employees Health 
Benefits (FEHB) program national preferred provider option (PPO) plans. 
This means military families struggling with the impact of 17 years of 
war are paying more for their mental health care visits than federal 
employees.

 
------------------------------------------------------------------------
                                                   Mental Health Visit
               Health Care Plan                           Copay
------------------------------------------------------------------------
TRICARE Select ADFMs--Group A.................                      $31
TRICARE Select ADFMs--Group B.................                      $25
TRICARE Select Retirees--Group A..............                      $41
TRICARE Select Retirees--Group B..............                      $41
TRICARE Prime Retirees--Group A...............                      $30
TRICARE Prime Retirees--Group B...............                      $30
BCBS Service Benefit Plan--Standard...........                      $25
GEHA Benefit Plan--High*......................                      $20
GEHA Benefit Plan--Standard*..................                      $15
NALC--High Option*............................                      $20
MHBP--Standard*
  Adult.......................................                      $20
  Child under 21..............................                      $10
SAMBA--High*..................................                      $25
APWU--High*...................................                      $25
------------------------------------------------------------------------
*These plans have no deductible for network mental health outpatient
  visits


      For many years, DOD has acknowledged the importance of 
seeking mental health care. Numerous studies have shown that military 
kids are at higher risk for emotional and behavioral problems and that 
risk increases as cumulative months of deployment increase. 
Unfortunately for families, mental health struggles do not disappear 
after the servicemember separates or retires from the military. We are 
appalled by TRICARE copays that discourage military families from 
accessing mental health care.

        ``They (my children) need therapy to deal with living with the 
        effects of war. But one thing that happened recently though was 
        we had to cut our son's therapy in half because TRICARE doubled 
        our copay. So he's not getting the amount of mental health care 
        and our daughter can't get anything beyond what she's just 
        getting at the TBI clinic because we just can't pay forit.''

        --Jacqueline, spouse of medically retired soldier/caregiver

      We are concerned about how the dramatically higher copays 
for physical, speech and occupational therapy will impact patient 
adherence to treatment plans. DOD acknowledges Defense Health Program 
spending was significantly lower than expected in fiscal year 2018 due, 
in part, to a drop in utilization. What happens to long term costs when 
untreated conditions progress and eventually require more expensive 
treatments such as surgery?

        ``We had to tell the therapists that we would be diligent about 
        our at-home therapy but that I would not be coming in for the 
        recommended visits due to copays.''

        --Karen, Military Spouse

      Families are now paying a significant percentage of these 
relatively low-cost visits out-of-pocket reducing the value of TRICARE 
benefit.

        ``My 5 year old son receives weekly speech therapy sessions. My 
        copay is $31 per session and the TRICARE allowable charge is 
        $49 which means I am paying over half of my son's therapy 
        costs.''

        --Jennifer, Army Spouse

    We understand the value of the TRICARE benefit grew dramatically as 
health care costs rose and TRICARE out-of-pocket costs remained flat. 
Servicemembers and their families also understand this. Congress and 
DOD had the chance to modestly and predictably increase fees since 
TRICARE's inception. Understandably, it was politically unpalatable to 
increase military family health care costs while sending hundreds of 
thousands of servicemembers to war. After several years of combat 
deployments, with no end in sight, servicemembers and their families 
made and continue to make incredibly difficult ``stay in'' or ``get 
out'' decisions. For many, a big part of that decision was the 
financial protection provided by military pay and benefits, including 
TRICARE.

        ``One of the main reasons my husband decided to continue on 
        Active Duty was health care. Our oldest son has food allergies, 
        he has severe asthma, and it was one of the reasons he decided 
        to stay in the military at the 10 year point, you know that's a 
        big decision point. We had just found out about the severe food 
        allergies and the asthma and I was pregnant with our second 
        child and we had also just found out that my oldest has severe 
        myopia as well and I was pregnant with my second and my thought 
        was what if he has it too? What do we do?''

        --Megan, Army Spouse/Caregiver

        Two years after deciding to remain in the Army at the 10 year 
        mark, largely due to the TRICARE benefit, Megan's husband 
        deployed to Afghanistan and was shot by an Afghan National Army 
        officer he was training. He lost his right leg above the knee 
        due to vascular damage but eventually returned to Active Duty 
        and is now within 2 years of retirement.

    Working-age retiree health benefits remain under scrutiny. As 
Congress continues discussions about appropriate out-of-pocket costs 
for military retirees, we urge you to ask the Services for deployment 
data for those Active Duty members who have served 15+ years, and those 
who have retired within the past several years. As former Secretary of 
Defense Mattis pointed out, deployments have not been evenly 
distributed across the force, \1\ but our lived experience suggests 
there are a substantial percentage of career servicemembers who served 
multiple combat tours.
---------------------------------------------------------------------------
    \1\ https://www.militarytimes.com/news/pentagon-congress/2018/02/
17/mattis-deploy-or-get-out-rule-is-about-fairness/
---------------------------------------------------------------------------
    Deployment data will only begin to capture the wide variety of 
sacrifices our servicemembers and military families made over the last 
2 decades--the Navy officer who missed six Christmases with his young 
children due to deployments, the Army family who experienced an 
unaccompanied Korea tour immediately followed by a one year combat 
deployment to Iraq , the soldiers on their way home from Iraq who were 
turned around and sent back to the combat zone when Army deployments 
were lengthened to 15 months, the LTC who was called to take over a 
command and deploy immediately when a Battalion Commander in Iraq was 
critically wounded by an IED [improvised explosive device]. Since 
September 11, 2001, our Nation has placed unprecedented demands on the 
all-volunteer force and career servicemembers endured despite the risks 
and sacrifices. Is a cut to their health care benefit the appropriate 
way to respond to a group that remained steadfast through the last 17 
years of war?
  Lack of TRICARE Coverage for Emerging Technologies and Treatment 
        Protocols
    Health care is in a period of rapid change and innovation. Since 
TRICARE coverage policies are governed by statute, they are often 
difficult to update to cover new medical technologies or treatment 
protocols. We appreciate Congress gave DOD the authority to cover 
emerging technologies in the fiscal year 2015 NDAA. However, DOD seems 
reluctant to exert that authority. Many military families are now 
paying more out-of-pocket for their health care, yet TRICARE coverage 
policies have not kept up with medical innovations. We urge Congress 
and DOD to fix TRICARE coverage gaps for emerging technologies and 
evolving treatment protocols.
    Diagnostic genetic testing is a prime example of TRICARE's failure 
to keep pace with medical advancements. While the TRICARE demonstration 
project slowly evaluates individual genetic tests, covering only a 
small fraction of tests approved under commercial plans and Medicaid, 
children's hospitals have moved on to doing genetic panels (e.g., 
seizure panel, connective tissue panel) and whole exome sequencing to 
produce higher yields of diagnoses for children with unexplained 
physical anomalies or other symptoms of a genetic condition. Why is a 
diagnosis important for families? Diagnostic certainty can impact 
medical management of a patient's condition. It can help families 
develop realistic expectations and plan for the future. A diagnosis is 
also required for families to obtain resources, such as Medicaid, to 
assist with managing their child's condition. Taking years to review 
and evaluate diagnostic genetic tests that have widespread acceptance, 
use, and reimbursement in the medical community and commercial 
insurance plans is unacceptable.
    Chiropractic care is another TRICARE coverage gap example. The 
growing opioid epidemic illustrates the risks of relying on 
pharmaceutical treatment for pain management. As patients and providers 
seek alternatives to treat chronic pain, we are concerned military 
families lack access to chiropractic care. Effective January 2015, the 
Joint Commission included chiropractic services to its standard of care 
for pain management, yet TRICARE does not cover chiropractic. All 
national preferred provider plans within the FEHB program provide 
coverage for chiropractic care. Medicare also covers chiropractic 
services. While we appreciate that servicemembers have access to 
chiropractic care in some military treatment facilities, we are 
concerned family members, retirees and their families and survivors 
face a barrier to accessing chiropractic care given TRICARE's lack of 
coverage.
  Barriers to Transferring TRICARE Prime Specialty Care During PCS
    Military families recognize they must sacrifice continuity of 
medical care as a result of the highly mobile military lifestyle. 
Unfortunately, TRICARE policy hinders rather than facilitates the 
transition of care during permanent change of station (PCS) moves. 
Established specialty care requires a new referral at each new duty 
station--even for chronic conditions (e.g., Type 1 Diabetes) where on-
going specialty care is undoubtedly required. To re-establish their 
specialty care, newly relocated military families must first have an 
appointment with a new Primary Care Manager (PCM) and get a new 
referral processed resulting in delays and disruptions in care. We ask 
Congress for legislation that requires TRICARE to allow valid specialty 
care referrals to transfer to the new duty station during a Permanent 
Change of Station (PCS.)

        My daughter has an extremely rare syndrome that has several 
        rare diseases that fall under it. PCSing is always a troubling 
        time in our family, even if we move to an area with every 
        specialist she needs, because we are put into a situation where 
        we can't have her medical specialists set up at our incoming 
        location for IMMEDIATE care. We wait to be enrolled in our new 
        region, we wait for an appointment to see our new PCM, and then 
        we wait for her PCM to refer us to, more often than not, 
        outside civilian specialists. Most of the time there's at least 
        a 3 to 6 month wait for the specialists to see new patients, 
        and that's on top of the weeks that have already passed waiting 
        to get in to see the new PCM and waiting for your referrals. 
        Two of our last three PCSs, we ended up in the emergency room 
        with life threatening complications/illness and no specialists 
        who were familiar with her history and her diseases.

    In section 701 of the fiscal year 2017 NDAA, Congress eliminated 
the specialty care preauthorization requirement for outpatient care. We 
welcome this attempt to streamline access to specialty care, but it is 
only a partial solution. Allowing a valid referral to transfer to the 
new duty station would greatly help military families with the timely 
transition of specialty care. It would also eliminate unnecessary 
appointments to obtain new referrals and reduce the health care 
disruptions inherent in PCS moves.
  Pediatric Definition of Medical Necessity
    TRICARE's reliance on Medicare reimbursement methodologies, a 
program designed for seniors, means TRICARE policy is sometimes a poor 
fit for pediatric care. Fortunately, most military children are healthy 
and won't encounter major TRICARE reimbursement issues due to their 
minimal use of the program. For those families with special needs 
children, however, TRICARE policy can mean administrative or financial 
burdens on top of their child's health care needs and the demands of 
Military Service. Due to their small numbers and the wide variety of 
TRICARE policy problems they encounter, we will seldom see a large 
public outcry from these families to fix a single issue. We need a 
mechanism to address the wide variety and evolving nature of the gaps 
between Medicare policy and pediatric care needs. Every year we hear 
about new instances where TRICARE failed to meet the needs of military 
kids. For example:

        ``I wanted to let you know about a military family I recently 
        met who had a problem with medical care overseas. Their 4-year 
        old daughter contracted a virus and was an inpatient at a 
        civilian hospital in Germany for several weeks before she 
        passed away. While she was hospitalized her mom slept in the 
        hospital room with her, not realizing that German hospitals--
        unlike U.S. hospitals--charge a ``rooming in'' fee. I believe 
        the fee was 75 euros per night so the total expense was quite 
        large. The servicemember's unit took up a collection to pay the 
        bill. U.S. hospitals encourage parents to sleep in the hospital 
        room with their child. Shouldn't TRICARE cover something like 
        this?''

        --Jenna, Navy Spouse

    International SOS, the TRICARE Overseas contractor, published a 
reminder on this issue in their provider newsletter with the following 
recommended action for overseas providers.

        Institutional providers should make parents aware, if they wish 
        to stay overnight to accompany their child, TRICARE will not 
        cover the charges and the parent will be issued an invoice to 
        pay the hospital for associated lodging costs, before the child 
        is discharged.

        --International SOS Provider Newsletter, March 2018

    This does not really address the issue for parents and could, in 
fact, increase distress or present parents with a terrible choice to 
either leave their child alone at night or face significant charges.
Another example:

        ``My child recently had a VCUG, a test that is very difficult 
        for the child because it involves a catheter and voiding on the 
        exam table to assess bladder/kidney function. Her physician 
        recommended partial sedation during the test, but TRICARE did 
        not cover it. Why would TRICARE not cover something my 
        daughter's doctor recommended? She may need to have this test 
        done again in the future, so we didn't want her to have a 
        traumatic experience during it.''

        --Karen, Army Spouse

    The voiding cystourethrogram (VCUG) is used to diagnose a number of 
bladder conditions. It is a procedure performed mainly on infants and 
young children. An NIH article \2\ reported that most unsedated 
children experience an unacceptable level of distress (serious or 
severe distress or panic) during the VCUG that could be avoided with 
sedation. Just because Medicare does not have a reimbursement policy 
for sedation during this procedure (and many other pediatric 
procedures) does not mean sedation is not the right course of action 
for pediatric patients.
---------------------------------------------------------------------------
    \2\ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2443423/
---------------------------------------------------------------------------
    We believe a pediatric definition of medical necessity is the best 
way to address TRICARE'S wide variety and evolving pediatric coverage 
gaps. After our Association, together with the TRICARE for Kids 
Coalition, repeatedly raised this issue at Military Family Readiness 
Council meetings, senior DOD leadership requested the Defense Health 
Board (DHB) to examine opportunities to improve the overall provision 
of health care and related services for children of members of the 
Armed Forces. The July 2016 report request specifically directed the 
DHB to:

        Address any issues associated with the TRICARE definition of 
        ``medical necessity'' as it might specifically pertain to 
        children and determine if the requirement for TRICARE to comply 
        with Medicare standards disadvantages children from receiving 
        needed health care.

    The DHB Pediatric Health Care Services Report \3\ was released 
December 18, 2017. The report documented TRICARE is out of step with 
commercial plans and Medicaid and concluded TRICARE's current 
definition of medical necessity disadvantages children from receiving 
some needed services. The DHB recommended the MHS:
---------------------------------------------------------------------------
    \3\ Defense Health Board Pediatric Health Care Services Report--
December 18, 2017 https://health.mil/About-MHS/Defense-Health-Agency/
Special-Staff/Defense-Health-Board/Reports

        Modify the administrative interpretation of the regulatory 
        language in 32 Code of Federal Regulations 199.2 to broaden the 
        use of the ``hierarchy of reliable evidence'' for the benefit 
        of pediatric beneficiaries. Exclusions to the hierarchy 
        described under ``reliable evidence'' in 32 Code of Federal 
        Regulations 199.2 should not preclude pediatric services (a) 
        meeting definitions of medical necessity used broadly in 
        civilian practice or (b) recommended by recognized medical 
---------------------------------------------------------------------------
        organizations.

    Unfortunately, the DOD's December 2018 Report to Armed Services 
Committees, The Plan to Improve Pediatric Care and Related Services for 
Children of Members of the Armed Forces \4\, announced DOD is not 
planning to develop a uniform definition of pediatric medical necessity 
and presented no alternative plan to address pediatric care coverage 
gaps. We ask Congress to urge DOD to implement the Defense Health 
Board's recommendation to broaden TRICARE's definition of pediatric 
medical necessity. Fixing TRICARE's reimbursement problems related to 
pediatric care is an essential part of the TRICARE reform effort.
---------------------------------------------------------------------------
    \4\ https://health.mil/Reference-Center/Congressional-Testimonies/
2018/12/26/Report-on-Plan-to-Improve-Pediatric-Care-and-Related-
Services-for-Children-of-Armed-Forces
---------------------------------------------------------------------------
  T17 Contract Transition Issues
    Throughout 2018, military families were plagued by TRICARE 
contractor transition issues. The problems have been well documented 
with contractors themselves regularly reporting on performance 
shortfalls. We appreciate the steps Congress and committee staff took 
to hold DHA and the managed care support contractors accountable. For 
families, inaccurate claims processing--particularly in the East 
Region--has been a problem throughout the year, but this issue is not 
captured in contract performance metrics. While Humana has been very 
responsive in addressing individual claims errors we've brought to 
their attention, it seems they were slow to address systemic issues. 
Customer service has also been ineffective in helping families resolve 
obvious problems with claims. There seems to be no process to escalate 
claims errors to someone at the contractor who can help resolve them.
    As an example, one family made twelve calls to Humana before 
contacting us. When this photo was taken, the Patient Responsibility 
had doubled versus the amount the provider billed. The family was 
eventually reimbursed after working with our contact at Humana. After 
twelve calls with no results, what would this family have done if they 
had not known about our Association? We appreciate the efforts you have 
made on the T17 transition and ask for continued oversight of contract 
implementation.


           direct care system/military hospitals and clinics
    During the MHS reform process, our Association detailed challenges 
military families face within the Direct Care system, including MTF 
appointment shortages and scheduling hurdles, variable quality and 
safety across the Direct Care system, and policies and patient 
experiences that vary greatly across MTFs. As reform efforts continue, 
we hope DHA and the Services maintain a focus on addressing these 
challenges.
    We appreciate and strongly support the fiscal year 2017 NDAA 
provision that requires DHA to assume responsibility for the 
administration of all MTFs. Currently, DHA sets policy but MTFs have no 
accountability to the Agency for implementation of that policy. 
Consolidating MTF administration under DHA should allow the Agency to 
enforce policy and ensure more consistent communication.
    While we also support MHS reform intended to right-size the Direct 
Care system, retaining only beneficiary care that directly contributes 
to the readiness mission, we urge DHA to ensure access for 
beneficiaries who must transition care to the private sector as a 
result. If right-sizing includes specialty care consolidation into a 
handful of military medical centers of excellence, we trust military 
family preferences will be considered when determining where families 
will obtain specialty care.
  tricare dental program for active duty family members transition to 
                                 fedvip
    We appreciate Congress and committee staff listened to our concerns 
about the reduced quality and value of the TRICARE Dental Program (TDP) 
following the transition to United Concordia in May 2017. Thank you for 
expanding Federal Employees Dental and Vision Insurance Program 
(FEDVIP) eligibility to Active Duty family members, while maintaining 
DOD's premium contribution, in the fiscal year 2019 NDAA. We believe 
FEDVIP will provide military families with a variety of coverage levels 
to meet their needs and allow them to choose a plan with sufficient 
network providers in their geographic area.
    We have been working closely with DHA, the Office of Personnel 
Management (OPM) and the contractors during the TRICARE Retiree Dental 
Program transition to FEDVIP. We have reviewed lessons learned from 
that process and stand by to assist with the more complicated 
transition from TDP to FEDVIP. We request Congress monitor and provide 
oversight on the TDP to FEDVIP transition.
                    special needs military families
Exceptional Family Member Program (EFMP) Assignment Coordination
    Military families complain that EFMP assignment coordination is not 
thorough. Some say they are sent to areas with insufficient medical 
assets to meet their needs. In other cases, providers exist but long 
waitlists preclude access. At the moment, this seems to be a particular 
problem for families with children on the autism spectrum at Joint Base 
Lewis-McChord (JBLM.) Many families being sent to JBLM report long wait 
lists for therapies even with the opening of the Center for Autism 
Resources, Education and Services (JBLM CARES.) We ask Congress to 
require DOD to develop and publish performance metrics to evaluate 
assignment coordination effectiveness.
    A May 2018 Government Accountability Office (GAO) report DOD Should 
Improve Its Oversight of the Exceptional Family Member Program \5\, 
indicates each service uses various mechanisms to monitor how 
servicemembers are assigned to installations, but the report contains 
no details on how the individual services are monitoring assignment 
coordination effectiveness. We agree with GAO's recommendation that the 
Office of Special Needs (OSN) develop performance metrics for 
assignment coordination, specifically:
---------------------------------------------------------------------------
    \5\ https://www.gao.gov/products/GAO-18-348

      OSN should develop common assignment coordination 
performance metrics across the Services. Metrics should include 
measures of military family satisfaction with the assignment 
coordination process focused on the ability to obtain necessary medical 
---------------------------------------------------------------------------
care at the gaining installation.

      Metrics should track compassionate reassignments/off 
schedule PCS moves due to inadequate medical resources at the gaining 
installation for EFMP families that were approved for that location. 
Compassionate reassignments of this nature indicate system failure and 
should be monitored to identify and address process breakdowns.

      Metrics should be reported at the installation level to 
provide actionable information.
TRICARE Extended Care Health Option (ECHO)
    We appreciate DOD's August 2018 proposed rule \6\ eliminating the 
concurrent ECHO benefit requirement. This would allow beneficiaries 
enrolled in ECHO to receive respite care regardless of whether another 
ECHO benefit is received in the same month. We are grateful the 
proposed rule eliminates this barrier to ECHO respite services. While 
eliminating the concurrent ECHO benefit requirement is a step in the 
right direction, we ask Congress to expand ECHO respite care hours to 
align more closely with state Medicaid waiver programs to ensure 
special needs military families receive adequate support.
---------------------------------------------------------------------------
    \6\ https://www.federalregister.gov/documents/2018/08/17/2018-
17463/tricare-extended-care-health-option-echo-respite-care
---------------------------------------------------------------------------
    Medicaid waiver programs provide long-term care services in home- 
and community-based settings to those who would otherwise require care 
in an institutional environment. Many states have lengthy waitlists for 
their Medicaid waiver programs leaving military families unable to 
access services when they PCS from one state to another before reaching 
the top of the waitlist.

        ``I have two special needs children and have never been able to 
        access Medicaid services till our recent assignment. When we 
        move out of state this summer, we will again lose services. In 
        9 years, we have received only 9 months of Medicaid waiver 
        services due to frequent military moves. The process takes so 
        long each time we PCS. It is really discouraging.''

        --Peggy, Navy Spouse

    Congress established TRICARE's Extended Care Health Option (ECHO) 
as a substitute for state Medicaid waiver services that are often 
unavailable to mobile military families. Medicaid waiver program 
services should serve as the benchmark for ECHO covered services. 
However, ECHO currently falls short, relative to Medicaid waiver 
services, particularly in terms of respite care.
    The Military Compensation and Retirement Modernization Commission 
(MCRMC) validated this issue in their 2015 report \7\ and recommended 
ECHO covered services be increased to more closely align with state 
Medicaid waiver programs. The MCRMC's state-by-state Medicaid waiver 
analysis showed the average state Medicaid waiver provides 695 respite 
hours per year while ECHO provides only 192 respite hours annually.
---------------------------------------------------------------------------
    \7\ https://docs.house.gov/meetings/AS/AS00/20150204/102859/HHRG-
114-AS00-20150204-SD001.pdf
---------------------------------------------------------------------------
    While the proposed rule eliminating the concurrent ECHO benefit 
requirement is a helpful first step, we believe it is important for DOD 
to further address ECHO deficiencies by increasing the total number of 
respite hours available to families. The current level of 16 hours per 
month disadvantages military families relative to state Medicaid waiver 
recipients. The low number of ECHO authorized respite hours also 
presents a barrier to receiving any respite care, since many families 
report difficulties finding a respite provider willing to work with 
them given the low number of hours involved. Managed care support 
contractors verify that many home health agencies don't want to play in 
intermittent, low hours care.
                   military dependent medical records
    In 2018, the Military Times published two articles \8\ about the 
Services accessing military dependent medical records of children who 
subsequently joined the military themselves. These articles have raised 
concerns among military families about the impact of mental health 
notations in their children's records. For years, DOD has encouraged 
military families to seek behavioral health care to help deal with the 
strains of military life compounded by 17 years of combat operations. 
DOD messaging rightly promoted behavioral health care as a sign of 
strength and a way of building resilience. The policy of accessing 
dependent medical records sends exactly the opposite message.
---------------------------------------------------------------------------
    \8\ https://www.airforcetimes.com/pay-benefits/military-benefits/
health-care-benefits/2018/03/29/they-sought-help-when-their-army-dad-
deployed-now-theyre-barred-from-joining-the-military/; https://
www.armytimes.com/pay-benefits/military-benefits/health-care-benefits/
2018/04/05/sailors-bounced-from-recruit-training-thanks-to-dependent-
medical-records-parents-say/
---------------------------------------------------------------------------
    Our Association has many concerns about this issue including the 
overall impact on stigma. We believe the first step in addressing these 
concerns is a better understanding of the policy and process for 
accessing minor medical records of former military dependents. We ask 
Congress to require a DOD report providing transparency to the process 
of accessing military dependent medical records by requesting the 
Services answer the following questions:

      What is the scope of the issue?

      -  How many military dependents' medical records have been 
accessed?

      -  How many military kids have been denied enlistment or 
involuntarily separated due to information in their dependent medical 
records?

      -  Under what circumstances do the Services access MHS dependent 
medical records? Is this a random sample or prompted by something 
specific?

      -  Which military entrants are subject to having their dependent 
medical records evaluated? Enlistees? Service academy cadets and 
midshipmen? Reserve Officers' Training Corps students? Those entering 
via other commissioning sources?

      What guidelines are the Services using when evaluating 
information in dependent medical records? How is dependent medical 
information used in ``fit for duty'' determinations? What other 
information (medical or otherwise) is used in conjunction with 
dependent medical records in ``fit for duty'' determinations?

      Who is charged with evaluating information in dependent 
medical records? What are their qualifications? What guidance do they 
receive before conducting such evaluations?

      What oversight is provided to ensure dependent medical 
record information is interpreted and used appropriately?

      What is the appeal process for those who are recommended 
for involuntary separation based on information in their dependent 
medical record?

      What is the policy for examining minor medical records of 
entrants who are not former military dependents?
                             defense resale
    Our Association has long viewed the commissary as an essential 
element of military compensation. Families agreed, telling us often 
over the years that the commissary--and the savings families realize 
when shopping there--is one of their most valued benefits. However, in 
any discussion of defense resale, there is no ignoring the elephant in 
the room: commissary sales have been declining for years, and the trend 
shows no sign of reversing.
    To be fair, much of the sales decline is most likely due to factors 
outside the Defense Commissary Agency's (DeCA's) control. Both the 
retail landscape and the military lifestyle have changed dramatically 
in recent years, making it increasingly difficult for the commissary to 
compete. The market is dominated by big box, low cost stores such as 
Costco and Wal-Mart, while Amazon offers convenience to shoppers who 
prefer to order their groceries online. At the same time, more military 
families are choosing to live off base, meaning the commissary is no 
longer the most convenient place to shop.
    It's also true that DeCA does not have all the tools that a typical 
retailer can use to increase revenue. There's little it can do, for 
example, to expand its customer base--although the extension of 
commissary privileges to Purple Heart and Medal of Honor recipients as 
well as veterans with service-connected disabilities is a welcome step 
in that direction. It has limited ability to advertise and can't close 
under-performing locations. Those steps that DeCA has taken to increase 
efficiency and appeal to customers, such as introducing private label 
products, have not yet led to increased sales.
    However, although fewer military families seem to be taking 
advantage of their commissary benefit, it remains vital to many, 
especially those stationed overseas or in remote locations, as well as 
families who are struggling financially. We are grateful Congress has 
shown a commitment to preserving the benefit, including mandating in 
law that DeCA meet savings targets. We request Congress to continue 
close oversight as the commissary continues implementing new business 
practices.
    Like the commissary, the Service Exchanges play a vital role in the 
military community, providing essential services and helping fund 
Morale, Welfare and Recreation (MWR) programs. That funding is 
especially important as the Services face increased pressure to 
redirect MWR funds toward readiness.
    Recently, DOD conducted a business case analysis to study whether 
and how to consolidate the commissary and Exchanges. The analysis 
concluded that significant efficiencies could be realized through 
consolidation and recommended moving forward. We have serious concerns 
about this proposal. While we recognize the need for efficiency and 
acknowledge that combining some functions could reduce operating costs, 
it's also true that there are costs associated with consolidation. 
Where will that money come from? The cost of consolidation must not 
come at the expense of MWR funding, commissary savings, or services 
offered by the Exchanges. Any proposal to change the defense resale 
system must ensure the programs, services and savings military families 
rely on are preserved.
    The defense resale system is complex and merging its disparate 
elements will be difficult and present some risk. We urge caution 
before embarking on wholesale change to a system relied upon by 
servicemembers and their families. At a minimum, Congress should ensure 
the voices of all stakeholders are heard--leadership of DeCA and the 
Exchanges, industry partners, and--most importantly--patrons. We also 
recommend an independent GAO review of the recommendations in the 
business case analysis.
      what do today's military families need to ensure readiness?
    It has often been said while the military recruits a servicemember, 
it must retain a family. Our Association has long argued in order to 
build and maintain the quality force our Nation demands, the military 
must support servicemembers as they balance the competing demands of 
Military Service and family life. We urge Congress to strengthen the 
programs and services available to support all troops and families in 
diminishing uncertainty and meeting the daily challenges of military 
life.
    We thank Congress for providing military families with greater 
flexibility in timing their relocation either before or after a 
servicemember's permanent change of station (PCS) report date in the 
fiscal year 2018 NDAA. We are anxious to see how the Services implement 
this new policy and will monitor whether it minimizes the upheaval 
associated with moving.
    Yet, budget issues have increased stress and anxiety for families 
facing a military-ordered move. The military must evolve to meet the 
needs of today's military families, but it needs a predictable budget 
and appropriation to do so.
                      privatized military housing
    In recent weeks we've heard from thousands of military families who 
have endured deplorable conditions within privatized military housing. 
We are encouraged, and thankful Congress has taken the first steps to 
address the situation. We urge Congress and the Services to move 
forward with improved oversight and management of the contractors and 
housing officials responsible for these conditions which have, and 
continue to, affect the health, safety and well-being of servicemembers 
and their families.
    Nearly twenty years ago when Congress and DOD were considering 
privatization of military housing, our Association was encouraged by 
the promise that conditions faced by military families living in 
military-run facilities would be drastically improved as civilian 
contractors took over and built and maintained housing to civilian 
standards. However, we strongly warned Congress of the consequences if 
the military abandoned its oversight over the housing developers. In 
fact we specifically warned, ``If the Services' oversight of developers 
mirrors their own care of housing, we could foresee families caught in 
the vise of the new management company blaming failures on the 
construction company, the Services blaming both, and families left with 
the residual mess.'' It saddens and angers us to have to say, ``We told 
you so.'' After almost twenty years, families are still looking for the 
answers to these questions:

      Who provides oversight of housing management and 
maintenance?

      What is the role of the installation commander?

      Who is the advocate for family members living in the 
housing?

    With 50-year contracts and millions of dollars, we've witnessed and 
experienced what privatization of military housing with a lack of 
proper oversight yields. We continue to be horrified at stories of mold 
growing through walls and inhabiting heating, ventilation and air 
condition (HVAC) systems, a lack of proper installation of windows and 
insulation causing major problems with temperature regulation, 
vegetation such as mushrooms and moss growing in bathrooms and out of 
carpets, infestations of vermin and the disgusting list goes on. We've 
also heard from families that in some places maintenance workers and 
housing officials have stonewalled efforts to improve conditions--from 
telling the families that they're simply not going to fix a problem to 
presenting nondisclosure agreements to tenants living in these 
conditions who desire to move their family to a clean and safe 
environment.
    Further complicating the situation is the notion that a 
servicemember may be deployed or remotely assigned and concerned about 
conditions in which his/her family is living. This affects not only the 
readiness of the individual, but also the safety of their units and 
jeopardizes operational success on the battlefield.
    Families want to know:

      What has changed for those who are currently experiencing 
problems?

      What has changed for those who discover issues in a 
month?

      How are the Services going to address the short and long-
term health problems of families? What if the servicemember has 
separated from the military? How will families receive care?
What will Congress include in the fiscal year 2020 NDAA to address 
        these questions?
                               child care
    Military families often tell us that finding high-quality, 
affordable childcare is one of their biggest challenges. In part, of 
course, this reflects a national shortage of affordable childcare 
options. The demographics of the military family community make the 
issue particularly acute: two-thirds of the more than 1.6 million 
military-connected children are under the age of twelve and the largest 
cohort--nearly 38 percent--is under age 5. \9\
---------------------------------------------------------------------------
    \9\ 2017 Demographics: Profile of the Military Community, http://
download.militaryonesource. mil/12038/MOS/Reports/2017-demographics-
report.pdf
---------------------------------------------------------------------------
    DOD is to be commended for recognizing the importance of ensuring 
military families have access to high-quality, affordable childcare and 
for taking concrete steps to provide this care. Its facilities are 
usually top-notch and offer curricula developed by experts in early 
childhood education. In addition, it provides admirable training and 
professional development opportunities to CDC employees as well as care 
providers in its network of Family Child Care (FCC) homes. It developed 
a single website, MilitaryChildCare.com, to provide better information 
about on-base childcare options and allow parents to seek a space for 
their child in advance of a PCS move. In response to concerns that 
lengthy background check requirements were leading to hiring delays and 
staff shortages, DOD implemented procedures to speed the process while 
still ensuring the safety of children in their care.
    Yet, despite these efforts, gaps remain. Families still complain of 
long waiting lists, especially overseas and at larger joint bases. 
These waiting lists don't even tell the full story, as many families, 
faced with a waiting list of 6 months or more, look elsewhere to find 
childcare. It is no doubt true that DOD will never be able to meet the 
childcare needs of every military family. However, access to quality, 
affordable childcare is essential to military readiness. The unique 
challenges of military life--distance from extended family who might 
otherwise assist with care, long hours and overnight shifts--often mean 
that seeking care in the civilian community isn't feasible. Military 
families will continue to look to DOD to meet their childcare needs, 
and DOD must continue to do more.
    While the issue of military childcare may appear to be intractable, 
there are several steps DOD could take to address the problem:
    Increase participation in the fee assistance program: The fee 
assistance program operated by the Services is an innovative, effective 
approach to the problem of insufficient childcare availability on base. 
The program helps offset the cost of childcare in the civilian 
community, ensuring participating families can access high quality care 
at an affordable cost. Unfortunately, relatively few families take 
advantage of this benefit. Expanding participation in the childcare fee 
assistance program would address many families' childcare needs.
    One reason why relatively few military families participate in the 
fee assistance program is a lack of eligible providers. DOD has 
stringent requirements for childcare providers participating in the fee 
assistance program, to include national certification, regular 
inspections, and background checks. However, many states have less 
stringent requirements for providers. In those locations, families 
often have difficulty locating a provider who meets DOD's eligibility 
requirements. The Office of Military Community and Family Policy and 
the Defense State Liaison Office (DSLO) have worked together to 
encourage states to increase their standards to meet DOD's and have had 
a great deal of success in this regard. We encourage them to continue 
with this effort. We also encourage DOD to consider ways it could 
broaden the pool of providers eligible to participate in the program 
while still maintaining its commitment to high quality care.
    The second, more pressing reason why few families take advantage of 
the fee assistance program is simply a lack of funds. Navy families 
reported for months their Service fee assistance program was not even 
accepting new families to its waiting list due to lack of available 
funds. We urge the Services to direct more resources to this program 
which is essential to many families and relieves pressure on 
installation childcare services.
    Analyze role of FCC Homes: For many years, childcare providers who 
offered care in their on-installation homes were an important part of 
the military childcare system. These providers receive training and 
professional development from DOD much like that given to CDC employees 
and must comply with stringent DOD inspections and background checks. 
They provide a flexible care option for parents whose schedules don't 
work with CDC hours and offer employment opportunities for military 
spouses. However, the number of FCC Homes has been declining for years. 
DOD should survey current providers as well as those who leave the 
program to assess why fewer people are offering this service and what, 
if anything, could be done to attract and retain in-home care 
providers.
    Part of the problem may be that if an FCC provider moves and no 
longer lives on an installation, he or she is subject to the licensing 
requirements of the state. Given DOD's stringent requirements, we 
expect FCC providers would meet or exceed most states' requirements for 
licensing an in-home day care. For that reason, we suggest DOD and the 
DSLO work with states to expedite licensing for approved FCC providers, 
so they can quickly reopen their in-home day care in their new 
location.
    Increase availability of part-time and hourly care: We hear from 
many military families frustrated by the lack of hourly or drop-in care 
at installation CDCs. Many military families--especially those overseas 
or in remote locations--do not have easy access to reliable caregivers. 
For those families, access to drop-in care at an installation childcare 
facility can greatly enhance their quality of life, enabling parents to 
go to medical appointments, run errands, and volunteer in their 
communities. This service can be especially vital when a servicemember 
is deployed, providing the at-home parent with a much-needed break. 
Increasing the number of hourly slots would also help address a common 
conundrum faced by military spouses after a PCS move: they can't look 
for work without childcare, but thanks to DOD priority guidelines, they 
aren't eligible for childcare if they're not working. DOD should 
evaluate the programs at installation CDCs to ensure the mix of care 
offered--full time, part-time and hourly--meets the needs of the 
families they serve.
                 military families and food insecurity
    The 2017 Survey of Active Duty Spouses (2017 ADSS) conducted by the 
DOD reported 11 percent of Active Duty spouses described their 
financial situation as ``not comfortable.'' Another 21 percent of 
spouses reported they had experienced some financial difficulty. 
Although the survey did not address the issue directly, there is 
evidence that military families' financial stress sometimes leads to 
food insecurity:

      Food pantries operate on or near virtually every military 
installation--four near Camp Pendleton alone;

      The demand for low- or no-interest loans or grants from 
the Service relief societies. For example, in 2018 the Navy-Marine 
Corps Relief Society provided more than $18 million to assist 
servicemembers and families with basic living expenses such as food and 
rent. \10\
---------------------------------------------------------------------------
    \10\ Navy-Marine Corps Relief Society 2018 Year in Review 
Infographic, http://www.nmcrs.org/page/-/Infographic--2018--
Financials----Feb--05--19--Interim.pdf

      DeCA reports nearly $55 million in Supplemental Nutrition 
Assistance Program (SNAP) benefits were spent in military commissaries 
---------------------------------------------------------------------------
in fiscal year 2017.

    Our Association has argued that military families should be able to 
benefit from the same social safety net programs that support their 
civilian neighbors and friends. There should be no shame or stigma in 
accepting assistance to ensure you are able to put healthy food on the 
table. Our concern, rather, is for military families who may be falling 
through the cracks, either because they are not aware of programs that 
could assist them, or they fall just over income eligibility 
thresholds.
    One example of this issue is military families' eligibility for 
SNAP benefits. SNAP is designed to support families whose incomes put 
them below 130 percent of the federal poverty level. (Some states set a 
higher threshold--they may go up to 185 percent of the federal poverty 
level.) However, because the military Basic Allowance for Housing (BAH) 
is included when determining SNAP eligibility, it's rare for military 
families to qualify. Paradoxically, families stationed in high cost of 
living areas are most affected by this barrier--their higher BAH 
prevents them from qualifying for SNAP, but the high cost of everything 
from food to utilities and transportation puts them under great 
financial strain.
    In the past, Congress and DOD have acted to address the issue of 
military family financial stress and food insecurity. For example, in 
the late 1990s Congress authorized the Family Supplemental Subsistence 
Allowance (FSSA), which was designed to assist families whose income 
and household size put them below 130 percent of the federal poverty 
level. However, few families participated in this program and in 2016 
it ended domestically at the recommendation of the Military 
Compensation and Retirement Modernization Commission (MCRMC), which 
noted that most eligible families would be better off participating in 
SNAP.
    While we agree with the MCRMC that SNAP is in many ways a more 
valuable and effective program to assist military families struggling 
with food insecurity, the fact remains that many families in need are 
unable to access it due to the inclusion of BAH. For that reason, we 
ask Congress to reinstitute the FSSA, but with key changes to make it 
more effective for military families:

      Set eligibility at 200 percent of the federal poverty 
guidelines, based on income and number of dependents;

      Exclude BAH when determining eligibility;

      Using data from the Defense Finance and Accounting 
Service (DFAS), automatically notify servicemembers of their potential 
eligibility for the FSSA. (Previously, servicemembers had to apply for 
the FSSA through their chain of command, which could be a barrier to 
participation.) Servicemembers could then provide information about 
household size and other sources of income to confirm their 
eligibility.

    We would also like to draw attention to the Women, Infants and 
Children (WIC) program, which supports families with pregnant or 
nursing mothers and young children up to age 5. WIC offers support in 
the form of vouchers or electronic benefits cards that may be used to 
purchase foods such as formula, baby food, eggs, peanut butter, bread, 
milk and fruits and vegetables. Participants in the program also 
receive nutritional counseling and breastfeeding support. Given the 
young demographics of the military family community and the fact that 
the largest cohort of military children (nearly 40 percent) is under 
age 5, this program in many respects is tailor-made to support military 
families. In addition, because BAH is not counted in determining WIC 
eligibility, it is much easier for military families to qualify--in 
fact, nearly every E-6 or below with one or more children could 
potentially qualify, assuming there is no additional household income.
    While we were unable to find statistics on the usage of WIC among 
military families, we are certain many more families potentially 
qualify than currently take advantage of this valuable program, which 
is unfortunate. We would like to see DOD take steps to raise awareness 
of WIC among young military families. One easy step would be to require 
pediatricians in Military Treatment Facilities (MTFs) to screen 
patients for food insecurity and provide information about applying for 
WIC.
    The majority of military families may never face food insecurity, 
and for those who do it is often a short-term problem that is resolved 
through promotion. However, we firmly believe no military family should 
ever struggle to put food on the table, especially when programs exist 
that can provide support. Raising awareness of WIC and making 
relatively simple changes to the FSSA would provide much needed support 
to the youngest, most vulnerable military families.
                     military children's education
    Like most parents, military families care deeply about the quality 
of their children's education. They also worry about the effect that 
the military lifestyle has on their children's education--specifically, 
the frequent military-ordered moves. Typically, military families move 
every 2 to 3 years, so a military-connected child can expect to attend 
six or more schools before their senior year of high school.
    The Interstate Compact on Educational Opportunity for Military 
Children, which has been adopted by all 50 states and the District of 
Columbia, as well as the Department of Defense Education Activity 
(DODEA), addresses many of the most common transition-related 
challenges faced by military-connected children moving to new schools. 
In addition, the widespread adoption of Common Core or similar 
standards means that military children are more likely to find familiar 
curricula and academic standards in their new schools. Together, these 
two developments help provide today's military children with smoother 
transitions and a more consistent academic experience than previous 
generations. Still, the fact remains local public schools are locally 
controlled--and financed--so policies, resources, and requirements vary 
from state-to-state and even district-to-district. Understandably, this 
is a source of stress for military families, who want their children to 
have the best possible education.
    In February 2018, the Secretaries of the Army, Navy and Air Force 
sent a letter to the National Governor's Association affirming the 
importance of education to military families and calling on governors 
to ensure military-connected children in their state receive the best 
possible education. We commend the Secretaries for highlighting the 
importance of education and agree states and districts should set 
policies and allocate resources to support military children and 
provide them with a high-quality education. However, we believe the 
Federal Government has a role to play as well.
    Districts serving large numbers of military children rely on Impact 
Aid funding from the Department of Education and the Department of 
Defense to help offset the additional expenses they incur, as well as 
compensate for lost property tax revenue when a district includes 
federal property such as a military installation. It is incumbent on 
DOD and the Federal Government to ensure schools charged with serving 
military-connected children have the support they need to provide the 
best possible education. We are grateful to Congress for authorizing 
$40 million for DOD Impact Aid and $10 million in Impact Aid for 
schools serving military children with special needs in the fiscal year 
2019 NDAA. We ask Congress to maintain this funding to offset the costs 
incurred by districts educating large numbers of military children.
    We continue to be concerned about the financial burden posed on 
school districts educating large numbers of military children with 
special needs. We wholeheartedly support sending military families with 
special needs family members to locations where their medical and 
educational needs can be met. However, in practice, this has led to 
concentrations of special needs military families in locations such as 
Joint Base Lewis-McCord, where a large MTF and other specialized 
services are available. While the ready availability of services 
through the military and local civilian community benefits the special 
needs military families, we are concerned about the unintended burden 
on the school districts serving these installations, which must provide 
special education services. Serving unusually large numbers of children 
with severe special needs places great strain on the budgets of these 
school districts. We fear that in the long term this financial pressure 
will affect the quality of the education services these districts are 
able to provide. We ask Congress to require DOD to study where military 
families with severe special needs are concentrated and whether DOD 
Impact Aid for schools serving military children with special needs is 
appropriately allocated.
                spouse employment and education support
    Spouse employment and education support is a critical component of 
military family readiness. Much like their civilian counterparts, many 
military families rely on two incomes in order to help make ends meet. 
However, military spouses face barriers hindering their educational 
pursuits and career progression due in large part to challenges 
associated with the military lifestyle.
    We are gratified in recent years Congress, DOD, the White House, 
and individual States have all taken steps to lessen the burden of an 
Active Duty member's military career on military spouses' educational 
and career ambitions. We fully support these initiatives, including 
DOD's portfolio of Spouse Education and Career Opportunities (SECO), 
which provides educational funding for select military spouses, career 
counseling, employment support, and the DOD State Liaison Office's 
(DSLO) state-level initiatives. However, while progress has been made 
in certain areas, the military spouse unemployment rate remain stagnant 
at 24 percent and military spouses continue to face significantly lower 
earnings as well as higher levels of unemployment and underemployment 
than their civilian counterparts, greatly impacting their families' 
financial stability. \11\
---------------------------------------------------------------------------
    \11\ Hiring Our Heroes, Military Spouses in the Workplace, U.S. 
Chamber of Commerce Foundation June 2017: https://
www.uschamberfoundation.org/sites/default/files/Military 
percent20Spouses percent20in percent20the percent20Workplace.pdf
---------------------------------------------------------------------------
    We appreciate that Congress recognized the difficulty military 
spouses have in moving their careers from state-to-state by providing 
up to $500 reimbursement for re-licensing and re-certification because 
of a PCS in the fiscal year 2018 NDAA. However, we have yet to see 
implementation of this program, leaving over 30 percent of employed 
military spouses anxiously waiting for much needed relief as they PCS 
and face financial strains due to re-licensure/re-certification within 
a new state. We urge Congress to hold the Services responsible for the 
implementation. We ask Congress to extend the proposed 2022 program 
sunset allowing military spouses to access the reimbursement for a full 
5 years as Congress intended.
Grow Our Own
    As military families struggle to cope with the effects of 17 years 
of war, we are seeing an increasing demand for mental health services 
within our families and community. Unfortunately, access to high 
quality care is limited. The shortage of mental health professionals 
nationally is mirrored in the military community; it is even greater at 
military installations in remote areas. We believe our Nation has an 
obligation to prevent, diagnose, and treat the mental health needs of 
servicemembers and their families. Doing so, in the face of a 
nationwide shortage of mental health professionals, will require 
innovative solutions and strategic public-private partnerships 
including Congress, DOD, the VA, and other organizations.
    One of our Association's top priorities is to ensure adequate 
access to mental and behavioral health providers who are attuned to the 
unique stressors of military life for servicemembers and their families 
who have endured years of repeated deployments, long separations, and 
possible injuries or illnesses. We support efforts to educate and 
employ military spouses as professionals in these fields.
    Since 2004, NMFA's military spouse scholarship and professional 
funds program has had over 100,000 applicants and awarded over $5 
million in funds. The number of spouses pursuing mental health careers 
continues to increase. Our 2018 applicant pool had 767 spouses planning 
to pursue careers in mental health fields which shows a growth of 50 
percent from the previous year.
    Many of our military spouses pursuing careers in mental health 
fields intend to serve military families. Helping these spouses 
overcome obstacles and pursue their careers has the dual benefit of 
assisting the individual spouse and family while addressing the 
shortage of mental health providers in the military community. However, 
these spouses face obstacles due to the unique challenges of the 
military lifestyle. Just this month in Facebook posts these spouses 
share experiences all too common for military spouse mental health 
professionals:

        Hi everyone! I have a few questions that I'm hoping you can 
        help me with. I'm currently licensed in New Mexico as an LMSW 
        and have almost finished my clinical supervision to test for my 
        LCSW. My husband is stationed in Florida and we are planning to 
        move there soon. Is it better to finish my hours here and test 
        in NM then transfer my license or start the process to get 
        licensed there? I heard you can test before you finish your 
        hours there, is that true? Also, if we were to move, can I 
        still have a NM supervisor? I have also heard about a Valor 
        Program that is temporary licensure for military spouses. Any 
        info on this? Thank you for your help!

        Hi everyone!! ADVICE/INPUT NEEDED!! I am graduating this May 
        (MS in Clinical Mental health). I know I need to start 3000 
        post grad hours after I am done. HOWEVER, we might be moving in 
        the near future (most likely within a year but no orders yet!!) 
        so I am debating whether to start getting the hours or wait for 
        an unknown period of time till we move?? Did anyone start 
        accumulating hours in one state and then moved??? PLEASE 
        ADVISE! TIA!!

    One of the many challenges which these spouses highlight is that of 
obtaining supervision hours--not only the sheer number of hours spread 
over years that are likely to be interrupted by a PCS, but also the 
cost associated with accumulating hours. One scholarship applicant 
writes, ``The cost of each individual hour is $70. With this financial 
support I would be able to accumulate hours at a faster pace.'' In 
recognizing this financial strain, we offer scholarship funds to be 
used toward supervision hours in addition to licensure and 
certification costs. We urge Congress to expand the MyCAA program to 
allow funds to be used toward obtaining supervision hours.
Federal Student Loan Forgiveness
    Federal student loan forgiveness and repayment programs provide 
incentive for those who wish to give back to their community. With the 
well documented shortage of mental health providers, both nationally 
and within the military community, we believe adding mental health 
professions to the federal student loan forgiveness program would 
provide a much needed incentive to spur growth in these fields.
We urge Congress to enhance federal student loan forgiveness programs 
        and protect against any attempts to degrade programs in place.
    We offer the following recommendations for Congress to consider:

      Facilitate easier paths to both licensure and employment 
for military spouses and veterans in the mental health field when they 
work with servicemembers and families;

      Pass legislation to allow military spouses full 
reciprocity when transferring an active unrestricted mental or 
behavioral health license from one state to another due to PCS;

      Support partnerships between the Military Health System 
and the VA to ease spouse difficulties in obtaining clinical 
supervision hours, reduce licensing barriers, and spur employment of 
military spouses and veterans in the mental health field;

      Expand the MyCAA program to include the coverage of 
supervision hours and increase rank eligibility to E-6 and O-3.
                          military lending act
    For more than a decade, military families have enjoyed a reprieve, 
seeing a decrease in predatory lending due in large part to the passage 
of the Military Lending Act (MLA). However, recently we have become 
alarmed about the Consumer Financial Protection Bureau's (CFPB) 
decision to no longer enforce supervision of the MLA. While CFPB seems 
to be concerned with the overall financial readiness of servicemembers 
and their families, forgoing their previously recognized authority 
opens military families up to fraudulent lending by financial 
institutions. Furthermore, this reversal puts the onus on military 
families to catch potential fraud based on their understanding of the 
law and its protections and work through the process of reporting 
potential fraud to CFPB in the hopes of reconciliation.
    In January of this year, CFPB's own Office of Servicemember Affairs 
reports complaints and requests for assistance have continued to 
increase over time. In fact, the report states, ``From 2016 to 2017 
there was a 47 percent increase in complaints received by 
servicemembers.'' If, even with supervision of the MLA during the last 
decade, servicemember complaints have continued to increase what does 
CFPB expect will happen as a result of no supervision? Surely this 
disturbing trend will continue to grow at expediential rates. We urge 
CFPB to reverse their decision to no longer supervise financial 
institutions in compliance with the MLA.
    We understand that CFPB has proposed a legislative fix to 
explicitly grant authority to supervise the MLA. However, we believe 
that CFPB already possesses the authority and are concerned that any 
attempts to revise the MLA could in turn water-down protections already 
in place.
                      military families in crisis
    Our country is still at war and military families continue to live 
extraordinarily challenging lives. Reintegration continues to pose 
challenges for some. Others are anxious about their financial futures. 
Most military families are resilient and will successfully address 
whatever challenges come their way. However, some will need help. It is 
critical military families trust DOD services and programs and feel 
comfortable turning to them in times of need. These programs and 
services must be staffed and resourced adequately so when families 
reach out for help, they can trust it is available. Military families 
must be assured our Nation will support them in times of family or 
personal crisis.
  Suicide
    In 2014, the Defense Suicide Prevention Office (DSPO) released a 
report outlining an approach for tracking military family member 
suicides. The report, Suicide and Military Families: A Report on the 
Feasibility of Tracking Deaths by Suicide among Military Family 
Members, was requested by the Senate and House Armed Services 
Committees.
    Our Association was pleased when Senators Kaine and Murray sent a 
letter in July 2018 to DOD requesting the status of the military family 
member suicide data. We were stunned when DOD responded saying they 
were in compliance with the law. DOD may have developed a policy for 
tracking military family member suicide, but they have not reported 
those suicides. We believe the law is very clear.

SEC. 567.  IMPROVED CONSISTENCY IN DATA COLLECTION AND REPORTING IN 
ARMED FORCES SUICIDE PREVENTION EFFORTS.

            (a)  POLICY FOR STANDARD SUICIDE DATA COLLECTION, 
REPORTING, AND ASSESSMENT.

                (1)  POLICY REQUIRED.

                     The Secretary of Defense shall prescribe a policy 
for the development of a standard method for collecting, reporting, and 
assessing information regarding--

                    (A)  any suicide or attempted suicide involving a 
member of the Armed Forces, including Reserve components thereof; and

                    (B)  any death that is reported as a suicide 
involving a dependent of a member of the Armed Forces.
            (b)  SUBMISSION AND IMPLEMENTATION OF POLICY.

                (1)  SUBMISSION. Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit the 
policy developed under subsection (a) to the Committees on Armed 
Services of the Senate and the House of Representatives.

                (2)  IMPLEMENTATION. The Secretaries of the Military 
Departments shall implement the policy developed under subsection (a) 
not later than 180 days after the date of the submittal of the policy 
under paragraph (1).

    We appreciate Congress including a provision directing DOD to track 
military family suicides as well as Reserve Component suicides in the 
fiscal year 2015 NDAA but are frustrated by DOD's delays in reporting 
this information. If we don't have accurate information on the extent 
of the issue, targeting solutions is impossible.
Preventing Child Abuse and Neglect, and Domestic Violence
    Research commissioned by our Association \12\ and others during the 
past decade documents the toll of multiple deployments on children and 
families, the difficulties many families face on the servicemember's 
return, and the added strain a servicemember's physical and invisible 
wounds can place on a family. These stressors put military families at 
risk for marital/relationship problems and compromised parenting that 
must be addressed with preventative programs.
---------------------------------------------------------------------------
    \12\ Anita Chandra, et al., RAND Center for Military Health Policy 
Research, Views from the Homefront: The Experiences of Youth and 
Spouses from Military Families, 2011
---------------------------------------------------------------------------
    Those looking for budget cuts may find it tempting to slash family 
support, family advocacy, and reintegration programs. However, bringing 
the troops home from war zones does not end our military's mission, 
family separations, or the necessity to support military families. 
``Rotations'' and ``training exercises'' of units to Europe and 
elsewhere must be accompanied by the same high levels of family support 
as if servicemembers were heading on a combat deployment. To family 
members, especially young children, ``gone is gone''.
    We are concerned the extraordinary stress military families face 
could lead to increased domestic violence as well. Preventive programs 
focused on effective parenting and rebuilding adult relationships are 
essential. The government should ensure military families have the 
tools to remain ready and to support the readiness of their 
servicemembers.
    We are encouraged the Family Advocacy Program, a congressionally 
mandated DOD program designed to prevent and respond to child abuse/
neglect and domestic abuse in military families, has redoubled its 
focus on prevention programs. Their efforts to repair relationships and 
strengthen family function will be essential. Programs like New Parent 
Support focus on helping young parents build strong parenting skills 
early on.
We encourage Congress and the DOD to ensure Family Advocacy programs 
        are funded and resourced appropriately to help families heal 
        and aid in the prevention of child and domestic abuse.
        today's surviving spouses need the dic offset eliminated
    Our Association has long believed the benefit change that would 
provide the most significant long-term advantage to the financial 
security of all surviving families would be to end the Dependency and 
Indemnity Compensation (DIC) offset to the Survivor Benefit Plan (SBP). 
Although we know there is a significant price tag associated with this 
change, ending this offset would correct an inequity that has existed 
for many years. Each payment serves a different purpose. The DIC is a 
special indemnity (compensation or insurance) payment paid by the VA to 
the survivor when the servicemember's service causes his or her death. 
The SBP annuity, paid by the DOD, reflects the military member's length 
of service. It is ordinarily calculated at 55 percent of retired pay. 
Military retirees who elect SBP pay a portion of their retired pay to 
ensure their family has a guaranteed income should the retiree die. If 
that retiree dies due to a service-connected disability, their survivor 
becomes eligible for DIC.
We ask the DIC offset to SBP be eliminated to recognize the length of 
        commitment and service of the career servicemember and spouse.
                 military families--continuing to serve
    Recent national fiscal challenges have left military families 
confused and concerned about whether the programs, resources, and 
benefits contributing to their strength, resilience, and readiness will 
remain available to support them and be flexible enough to address 
emerging needs. The Department of Defense must provide the level of 
programs and resources to meet these needs.
    Servicemembers and their families have kept trust with America, 
through 17 years of war, with multiple deployments and separations. We 
ask the Nation to keep the trust with military families and not try to 
balance budget shortfalls from the pockets of those who serve.
    Evolving world conflicts keep our military servicemembers on call. 
Our military families continue this call as well, even as they are 
dealing with the long-term effects of almost 2 decades at war. The 
government should ensure military families have the tools to remain 
ready and to provide for the readiness of their servicemembers. 
Effective support for military families must involve a broad network of 
government agencies, community groups, businesses, and concerned 
citizens.
          Prepared Statement by The Tricare for Kids Coalition
    Chairman Tillis and Ranking Member Gillibrand. The Tricare for Kids 
Coalition is a stakeholder group of children's health care advocacy and 
professional organizations, disability advocacy groups, military and 
veterans' service organizations and military families committed to 
ensuring that the children of military families receive the unique 
care, supports and services they need.
    We appreciate the opportunity to submit testimony regarding issues 
impacting the health and well-being of children in military families as 
it is a major element of family readiness. Areas of emphasis in this 
statement are 1) the Coalition's response and reaction to the Defense 
Health Agency's (DHA) most recent report to the Committee on 
pediatrics, 2) Exceptional Family Member Program, and 3) Health and 
safety hazards in military base housing.
   1. response and reaction to the most recent defense health agency 
          report submission to the committee in december 2018.
    Tricare is based generally on Medicare, which is formulated and 
maintained for older adults; and regularly results in ``square peg, 
round hole'' situations for children and their families.
    Our Coalition was created around passage of legislation known as 
``Tricare for Kids'', passed in the 2013 NDAA requiring the Secretary 
of Defense to complete a comprehensive review of all pediatric policies 
and practices, and report on plans and progress to address those gaps 
and barriers to care. In the wake of less than fulsome reporting, 
subsequent NDAAs have required additional information.
    The Coalition is pleased with the continued interest and commitment 
by the Committee to continue to oversee pediatric health care services 
and support developments. The Coalition is concerned about the 
timeliness of DHA progress, including implementing improvements, 
addressing gaps and barriers, as well some of the direction of 
decisions, for example, the decision not to instill a pediatric medical 
necessity standard.
    The Coalition respectfully requests the Committee consider 
providing more specific direction to DHA regarding pediatric care, 
aligning with the details discussed below. The agency took a great step 
forward by tasking the independent advisory council, the Defense Health 
Board (DHB), with a report on Pediatric Health Care Services, completed 
in 2017. The Defense Health Agency has stated its agreement with the 
DHB recommendations and conclusions, yet we continue to see 
disconnects, included some pointed out below. Specific direction from 
the Committee to DHA to align with the DHB conclusions in a timely 
manner may now be warranted.

    (Full DHB report available: https://health.mil/About-MHS/OASDHA/
Defense-Health-Agency/Defense-Health-Board/Reports)

    The following analyses of excerpts from the most recent report by 
DHA to Congressional oversight committees as required in the 2018 NDAA, 
along with Tricare for Kids responses, demonstrate the need for 
specific direction to DHA concerning pediatric care.

    (Full report available: https://www.health.mil/About-MHS/OASDHA/
Defense-Health-Agency/Congressional-Relations/Reports-to-Congress/
Signed-in-2018)

    1.  With respect to ``MHS plans to align preventive pediatric care 
with the standards of such care under PPACA, guidelines established 
under Medicaid, and with recommendations by organizations that 
specialize in pediatrics'' the DHA reported that a gap analysis is 
currently in progress with an expected completion in 2019. The gap 
analysis is expansive, and includes all age groups of beneficiaries 
with a focus on traditional clinical practice, and international models 
of preventive care with the inclusion of social determinants of health. 
. . . The preventive care comprehensive gap analysis will be complete 
by December 31, 2019, and a review of findings from the gap analysis 
and final recommendations will occur no later than December 31, 2020.

         TFK: DHA announced alignment with AAP [American 
Academy of Pediatrics] Bright Futures guidelines for a segment of 
children in 2016 but it is unclear exactly how and whether this has 
been implemented. Timeliness and the seeming need to ``reinvent the 
wheel'' are common elements throughout DHA's response to the original 
Tricare for Kids legislation, and preventive care provides a good 
example. A 10 year old child will have reached adulthood from the time 
the original legislation passed and DHA is still studying preventive 
care. Preventive care guidelines and Bright Futures protocols are 
widely accepted norms and have been for some time; and are updated 
regularly to address issues such as social determinants of health. It 
would be more effective and efficient it seems, to align with best 
practices and widely accepted norms rather than use agency resources to 
research and create its own practices. This is especially true as the 
volume of pediatric beneficiaries in Tricare isn't large enough to make 
parochial protocols make sense (other than for issues unique to 
military children, such as specifics to address exposure to base 
housing hazards); furthermore, children move on and off Tricare 
regularly with various transitions among commercial or public health 
insurance options, at times such as separation from service, activation 
or deployment status, non-military parent's employment status, need for 
Medicaid or CHIP [Children's Health Insurance Program], and so forth. 
Having Tricare pave its own way with standards that are unlike others 
is not efficient nor does it serve the needs of Tricare covered 
children well.

          Our Coalition would like to see DHA directed to adopt (and 
adapt with) fully developed best practices without having to reinvent 
the wheel each time, using DHA time and resources to develop something 
specific only when the unique needs of its population warrant it--for 
example, creating a response to the base housing health and safety 
crisis.

    2.  Regarding MHS plans to develop a uniform definition of 
``pediatric medical necessity.'' The DHA reported that it does not plan 
to develop a uniform definition of ``pediatric medical necessity.'' 
Rather, MHS plans to continue to utilize the uniform definition of 
``medical necessity''. . . MHS has no plans to change the existing 
uniform definition of medical necessity. . .

         TFK: It is troubling to learn of the DHA intent to 
``continue'' to use the ``existing definition'' when Congress, the DHB 
and the TFK Coalition have all expressed grave concerns about current 
practices and limitations negatively affecting children's access to 
medically necessary care. Furthermore, DHA arrived at its conclusion 
although it regularly reports that it agrees with all the recent 
Defense Health Board recommendations regarding pediatric care, and 
pediatric medical necessity concerns were a major element of the DHB 
publication.

          Our Coalition would like to see the Committee direct DHA to 
implement an existing pediatric medical necessity standard (which are 
discussed thoroughly in the DHB report) particularly we recommend the 
American Academy of Pediatrics model language.

    3.  DHA stated that MHS' improvements of the quality of and access 
to behavioral healthcare, including intensive outpatient and partial 
hospitalization services:

       a)  were largely implemented through statutory changes in the 
TRICARE benefit in fiscal year 2016.

            TFK: The September 2016 final rule expanding 
behavioral health services and streamlining authorization of 
institutional providers offered a tremendous opportunity to increase 
access to needed services. Actual implementation has been slow, with 
TRICARE policy manual updates not completed until more than a year 
after the final rule's effective date, just as regional consolidation, 
new managed care support contracts and benefit plan changes were being 
implemented. The most significant barrier to accessing behavioral 
health services is a lack of clear, accurate information, for both 
providers and families.

             In order to optimize the utilization and impact of 
statutory and policy improvements, our Coalition sees a need for:

            A checklist on Humana's and Health Net's TRICARE 
websites identifying the process, timeline, responsible entity for each 
step, and online location of forms and other information for 
institutional behavioral health providers that want to serve military 
families. This is where the intended streamlining of provider 
certification and participation stalls, with each provider organization 
separately navigating a murky process with multiple players.

            A regularly updated list on https://health.mil of 
TRICARE-certified institutional behavioral health care providers, by 
type. Behavioral health treatment is often quite specialized, e.g., 
targeting a particular age group or condition, and the most clinically 
appropriate treatment setting is not always in the family's community, 
state or TRICARE region. Both families and referring providers need 
this information.

            Regularly updated provider directories on Humana's 
and HealthNet's websites, with useful search functions. The specialty 
nature of behavioral health care and the geographic spread of providers 
don't lend themselves to searches limited to zip codes, states, or 
proximity to MTFs. It also appears that the directories include only 
in-network providers, which may be acceptable under the managed care 
support contracts, but reinforces the need for a national list of all 
certified providers on https://health.mil.

       b)  and regarding Substance Use Disorder ``SUD is rare in the 
pediatric population, and treatment for SUD mostly appears in the age 
18-21 population. Across the whole population, 98 percent of SUD stays 
and 99 percent of SUD encounters are for patients aged 18 and older 
(including dependent children).''

            TFK: Once again, while the DHA purports to support 
and agree with the DHB recommendations, contrast the above DHA 
statement with this excerpt from the DHB report: ``While the Board did 
not examine the issue of substance use in pediatric populations, it 
acknowledges that these disorders can significantly affect children and 
youth, in both civilian and military populations. In fiscal year 2014 
through fiscal year 2016, among females ages 13-17, the top Medicare 
Severity Diagnosis-Related Group for inpatient admissions was 
`poisoning & toxic effects of drugs age 0-17.' The Board feels 
substance use disorders are an important area that warrants further 
research and assessment.'' [emphasis added]

             Our Coalition would like to see a consistent understanding 
by DHA and resulting priority for this category.

    4.  The DHA reports that MHS' mitigation of the impact of PCS and 
other service-related relocations on continuity of care for children 
who have special medical or behavioral health needs is an ongoing, 
collaborative process. Mitigation of the impact of PCS includes 
increased access to resources and services, and MHS' many diverse 
programs are positively assisting families with relocation.

         TFK: all efforts on this front are appreciated; 
effectiveness, however, is unclear, as the Coalition has yet to see 
evidence of any major improvement. The use of the term ``collaborative 
process'' while sounding promising, is unclear. While DHA does report 
some welcome progress coordinating with the Services and Office of 
Special Needs, advocates are only cautiously optimistic as this 
progress has been expected for years now. Furthermore, DHA does not 
appear to be working with families collaboratively.

          This issue is particularly important for EFMP families, who 
already face a myriad of challenges (see next item). In 2018 and 
continuing into 2019 to some degree, the managed care contract and plan 
design transitions have been disastrous for families with any non-
typical family health needs as they have dealt with wildly inaccurate 
provider directories (which play a much larger role than most realize 
as they are used to determine EFMP assignments, plus incomplete or 
inaccurate listings wreak havoc with access and network/non-network 
categorization for all), increased cost shares, and inaccuracies by 
TRICARE in cost share payments, payments toward caps, coverage denials, 
and conflicting information at every turn. DHA is aware of problems and 
appear to be addressing issues, but the steps taken are often opaque to 
stakeholders and families, leaving us to wonder how targeted, strong 
and prioritized the DHA action may be toward our identified issues 
areas of concern.

          Beyond the obvious and immediate need for addressing 
transition and related barriers, for the long term DHB recommendations 
provide much fodder for DHA to work with in terms of improving the 
experiences. Two key items are the recommendation to ``[r]equire 
inclusion of parents in working and policy groups at all levels'' and 
the absolute need for better care coordination especially during PCSs. 
Again, aligning with best practices and working with organizations 
specializing in pediatrics (and not just pediatrics, but even the much 
smaller category of complex pediatrics) who have made headway in this 
space of complex care coordination, make much more sense than 
reinventing the wheel.

          Our Coalition would like to see DHA create more opportunities 
for family inclusion in policy groups, more regular stakeholder 
advocacy interaction on pediatric issues as the stakeholders bring 
necessary perspective from families and providers, and to work with 
stakeholders such as children's hospitals to improve care coordination 
for EFMP families.

    5.  Pediatric issues of importance and relevance to those in the 
DHA report, but not specifically referenced there:

         Emerging and high cost treatments in pediatrics.

          Children with rare and/or significant medical conditions are 
most likely to rely on high cost, emerging treatments that are often 
the target for cost cutting and utilization measures.

          TFK is very concerned that Tricare must be nimble in order to 
ensure that children receive the care they need in a timely manner, 
which often differs greatly from timeliness for adults. There is a 
waterfall of emerging and promising treatments for rare and serious 
childhood conditions, which are almost all very expensive and have 
specific procedures for use in children, and don't fit neatly in 
Tricare payment methodologies. This reality which is already 
challenging, coupled with the new pharmacy tier benefit changes could 
spell disaster for families of the most vulnerable children. 
Furthermore, DHA is looking to align care between MTFs and purchased 
care sectors--while this is appropriate to provide all with robust 
care, it is likely that this initiative will be used to limit certain 
genetic and therapeutic testing currently only allowed at MTFs.

          Our Coalition has expressed to DHA that we would appreciate 
an ongoing stakeholder presence in a concerted DHA effort to discuss 
and prepare for access, coverage, and payment for emerging 
pharmaceutical, genetic, and advancing technology treatments as they 
apply to children and pediatric care. Direction to DHA from the 
Committee in support of this request would be appreciated.

         Extended Health Care Option (ECHO)

          In 2015 the Military Compensation Retirement Modernization 
Commission (MCRMC), in alignment with our Coalition's concerns, found 
that access to Medicaid home and community-based services (HCBS) waiver 
benefits provided at the state level is a ongoing issue for military 
families with exceptional family members (EFMs); that many 
servicemembers encounter HCBS waiting lists that exceed their time 
assigned to a location, and referenced an fiscal year 2013 DOD-
commissioned study found that military families with special needs rely 
on Medicaid to obtain specific supplementary services that are either 
not provided or not fully covered by TRICARE

          The MCRMC recommended that DHA increase services covered 
through the ECHO to more closely align with state Medicaid waiver 
programs, including custodial care and respite care hours that match 
state offerings, more flexible expanded services subject to existing 
ECHO benefit caps, and modernizing the program to better serve current 
demographics of the Force.

          The Defense Health Board referenced the MCRMC findings as 
examples of the challenges facing Tricare covered families, and the 
fact that ECHO is only available to Active Duty members as an example 
of military health system lack of standardization and implementation of 
best practices enterprise-wide.

          Other than recent modest changes to the respite care benefit, 
there has been no further movement on ECHO modernization or 
improvement. The Coalition would like to see the Committee support its 
objectives of alignment with Medicaid based waiver services per the 
MCRMC recommendations, implementation of a grace period for eligibility 
upon separation from Active status to cover an average Medicaid waiting 
list timeframe, and a revisiting of program assumptions, as some of the 
care that is provided only pursuant to ECHO is medically necessary care 
and therefore should be available to all beneficiaries under the basic 
TRICARE program.
              2. exceptional family member program (efmp)
    Continuing with EFMP challenges, again full generations of children 
with special, often complex needs, have been left without the services 
and supports needed, while their families are dealing with high op 
tempos, PCSing, a managed care transition that has been nothing short 
of disastrous in many quarters, and in some cases such as the 
subcommittee members heard in a recent hearing, the already serious 
issues have been compounded by hazardous living conditions on base.
    On a positive note, regulations to update the EFMP were published 
this month, 3 years in the making. However, the situation has 
deteriorated to the point that families had to band together and 
request an Inspector General investigation, after years of failure by 
DOD to implement recommendations made by the Government Accountability 
Office and the Military Family Readiness Council. Why does a 
Congressionally mandated council on military family readiness, staffed 
with our most senior leaders, have problems helping military families? 
Much like the current housing crisis, these problems have been 
identified and recommendations made over the years, but with no sense 
of urgency or accountability by the implementers, have been left to 
fester. Sadly, it seems to take Senators asking hard questions for DOD 
to take action and ensure proper accountability.
    The Coalition is pleased that in last year's NDAA, the Committees 
directed DOD to brief Congress on the status of its response to the 
most recent GAO EFMP report by March 1, 2019.
    At the February 27 hearing, it would be timely then, for panelists 
to be asked what is DOD's response to, and timeline for implementing 
the recommendations? Furthermore, given the egregious and longstanding 
problems, the Coalition respectfully requests the Committee to support 
the families' request to the DOD IG [Inspector General] to investigate 
the Exceptional Family Member Program's compliance with applicable 
statutes and instructions. Both would put DOD on notice that the 
Committee is serious about this issue and give these families 
confidence that the Senate is in their corner.
              3. health and safety hazards in base housing
    The Coalition was pleased to submit testimony for the record for 
the recent hearings on base housing, and with the Committee's 
commitment to addressing housing issues. While that testimony lays out 
our concerns in more detail, we would like to take this opportunity to 
highlight for the Committee that even with its strong reaction since 
that date toward inspections and remediation, there remains a need for 
a public health oriented response to this crisis and its impact on our 
most vulnerable military families and children.
    Military families depend on base housing for many reasons, 
including when housing on local economy is not affordable or in less 
appropriate neighborhoods. Furthermore, families who have children with 
special needs have even more limited housing options when moving to a 
new duty station. Sometimes, the only affordable housing that is ADA 
[Americans with Disabilities Act] compliant is on-post housing. We are 
concerned health of those with special needs may be further compromised 
in housing with these hazards.
    The conditions of critical concern around base housing range from 
mold to vermin to lead and toxic waste. There is no easy answer to 
this; the problem needs leadership and ownership. A major concern is 
the apparent lack of ownership of the known health problems arising 
from these conditions, which prevents them from being addressed 
promptly and appropriately while the big picture of liability or 
responsibility is being sorted out.
    Meanwhile, however, DHA, the MHS, and TRICARE own the prevention, 
treatment and promotion of health and well-being of its beneficiaries 
many of whom are especially vulnerable children who live on base and 
have been and are exposed to these safety and health risks regularly, 
often with dire consequences. DHA must step up and figure out how to 
address screening, testing and treatment needs, as well as families' 
concerns, at the very least.
    Toward finding solutions, the Coalition respectfully requests that 
the Committee request DHA (as it is in the process of taking over 
management and responsibility for all MTFs, and that DHA work with the 
services regarding MTFs still under their respective umbrellas) to 
address the questions and concerns submitted earlier to this 
subcommittee, and to engage in a candid and meaningful dialogue with 
stakeholders and military families to better understand the issues, and 
identify ways we can work collectively to improve military housing and 
barracks.
    The Tricare for Kids Coalition appreciates the opportunity to 
submit testimony for the record toward improving family readiness.
         Prepared Statement by Colonel Paul Kantwill (Retired)
    Thank you, Chairman Tillis, Ranking Member Gillibrand, and Members 
of the subcommittee for the opportunity to offer this testimony as you 
consider military personnel policies and issues related to military 
family readiness. Thank you for your assistance and support in 
protecting our servicemembers and their families in the consumer 
financial marketplace.
    I serve currently as Senior Fellow at the Institute of Consumer 
Antitrust Studies, Loyola University of Chicago School of Law, where I 
lecture, conduct research, and organize programing on consumer 
protection law, with an emphasis on protecting the needs of 
servicemembers, veterans, and their families. The Institute is a non-
partisan academic institute devoted to research, publication, programs, 
and advocacy to promote a more competitive consumer friendly economy. I 
also serve as Executive Director, Center for Veteran Protection and 
Advocacy, a non-profit organization dedicated to providing consumer 
protection, support, and advocacy for veterans and their families in 
the financial marketplace.
    Prior to my current positions, I served as Assistant Director, 
Consumer Financial Protection Bureau, where I led the Office of 
Servicemember Affairs. Prior thereto, I served as the Director of the 
Office of Legal Policy, Under Secretary of Defense, Personnel & 
Readiness, where, among other duties, I had oversight of financial 
issues affecting the force and impacting military readiness. I was 
integrally involved in the Department's rulemaking resulting in the 
Limitations on Terms of Consumer Credit Extended to servicemembers and 
Dependents, 32 CFR [Code of Federal Regulations] Part 232, known 
commonly as the Department of Defense Final Rule Implementing the 
Military Lending Act (hereinafter the ``MLA Final Rule'').
    From 1990 through 2014, I served on Active Duty as an Army Judge 
Advocate with many tours of duty across the globe and in active 
theaters of operation, including Iraq and Afghanistan, providing legal 
support to our troops and their families. In all of these capacities, I 
have seen first-hand, and continue to see, that a Servicemember 
burdened with concerns outside of the parameters of his or her mission 
cannot reach full combat effectiveness. I believe my experience in 
having assisted servicemembers in the field and leading legal and other 
organizations devoted to providing support to our servicemembers and 
their families, provides a unique lens through which to view financial 
issues which impact servicemembers, veterans, and their families, and 
continue to compromise military readiness.
    I have testified frequently and spoken and written widely of the 
need to provide the greatest consumer protections possible to those who 
serve and have served. I believe that, through years of hard work and 
dedicated, collective effort, particularly through measures like the 
MLA Final Rule, we made great progress eliminating, or protecting our 
personnel and their families from, harmful financial products and 
services like predatory payday loans and fraudulent, deceptive, and 
abusive practices. Regrettably, I believe that much of that progress 
has ceased, and that individual and military readiness have been 
compromised and risk being compromised further.
    Specifically, I have concerns regarding the position the Consumer 
Financial Protection Bureau (the Bureau) has taken regarding 
supervision under the Military Lending Act, and its proposed changes to 
the Payday Lending Rule. I believe that both actions reflect a profound 
lack of concern for military consumers and will have negative effects 
on servicemembers, veterans, their families, and on military readiness 
and national security.
    I, and countless other consumer law experts, consumer advocacy 
groups, and military and veterans service organizations, have made our 
positions on supervision of the Military Lending Act well-known. 
Despite this, it appears that the Bureau will abandon the previously-
successful supervisory activity that provided a necessary level of 
proactive protection to servicemembers and their families. I disagree 
not only with this interpretation of the Bureau's authorities, but also 
with the Bureau's proposed legislation on the issue, which is at once 
unnecessary, illusory, and duplicitous. Past practice should inform 
current interpretation, and I am unaware of any challenge to the 
Bureau's authority to conduct supervisory exams.
    Even if the proposal were taken up by the Congress, there are no 
guarantees as to when it would be considered. Time is the enemy. The 
more time that passes without the Bureau performing supervisory 
functions, the greater the likelihood that servicemembers and their 
families will be the victims of fraudulent, deceptive, abusive, and 
predatory practices. This, of course, produces irreparable harm--harm 
that cannot be remedied by ex post facto enforcement action, and which 
ruins careers, destroys lives, and degrades military readiness.
    As a tangible illustration of the importance of proactive 
protection of the type that supervision provides, the Department of 
Defense noted in the MLA final Rule: ``Each separation of a 
servicemember is estimated to cost the Department $58,250, and the 
Department estimates that each year approximately 4,640 to 7,580 
servicemembers are involuntarily separated where financial distress is 
a contributing factor. If the Department's proposed regulation could 
reduce the annual number of involuntary separations where financial 
distress is a contributing factor from between 5 to 30 percent, the 
savings to the Department could be in the range of approximately $13.51 
million to $132.52 million each year.''
    I observed the detrimental effects on readiness personally when 
making mission visits to operational units while leading the Office of 
Servicemember Affairs at the Bureau. During those visits I heard from 
troops, their non-commissioned officers, and unit commanders with 
startling frequency how excessive debt, especially that from payday 
loans and excessive auto financing, renders soldiers, sailors, airmen, 
and marines unable to gain a security clearance, or keep it once it has 
been obtained. This usually results in their non-deployability or their 
involuntary separation. This damage is not limited to the Active Duty 
population; current servicemembers and their families transition into 
veteran status and carry the burdens and effects of such predatory 
practices for the remainder of their lives.
    Similarly, even if such a proposal were considered, we have no 
guarantees as to the outcome of the legislative process. I do not 
believe it hyperbole to suggest that the special interests to which the 
Bureau seems to be catering in these policy decisions can and will 
attempt to commandeer the legislation for their own purposes, change 
the proposal, or change or re-open the Military Lending Act or the MLA 
Final Rule to the detriment of servicemembers and their families, and 
ultimately to the warfighting readiness of the Armed Forces.
    For example, special interests have been, and are today, hard at 
work in attempts to un-do the MLA Final Rule's protections against 
credit-related products in automobile financing transactions which have 
been documented as risks to readiness going back many years. The 
inappropriate inclusion of products marketed to servicemembers with a 
view toward increasing prices and financing fees traps members in 
excessive debt and allow creditors to circumvent interest rate caps. 
All would be wholly unacceptable results to military consumers.
    I have similar concerns with the Bureau's proposed rescission of 
important provisions of the Payday Lending Rule. Since the Military 
Lending Act protects only Active Duty servicemembers and their 
dependents, the millions of members of the Service Reserves and 
National Guards and their families, and the tens of millions of 
veterans and their families, rely upon the protections offered by the 
Payday Lending Rule. Evidence shows clearly that military members and 
veterans are disproportionately affected by fraudulent, deceptive, 
abusive and predatory lending practices, and the Bureau's proposed 
actions would subject them to potential and irreparable harm.
    The protection of those who answer the Nation's call to duty is not 
partisan and should not be subject to special interests. We have worked 
hard together to protect those most deserving of our protection. I hope 
that our work has not been in vain. Thank you for your continuing 
support of our servicemembers, veterans, and their families and for the 
opportunity to share my views.

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