[Senate Hearing 118-]
[From the U.S. Government Publishing Office]



 
       DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2024

                              ----------                              


                        TUESDAY, MARCH 28, 2023

                                       U.S. Senate,
           Subcommittee of the Committee on Appropriations,
                                                    Washington, DC.
    The subcommittee met at 10 a.m. in room SD-192, Dirksen 
Senate Office Building, Hon. Jon Tester (chairman) presiding.
    Present: Senators Tester, Murray, Schatz, Baldwin, Shaheen, 
Murphy, Collins, Murkowski, Graham, Moran, Hoeven, Boozman, and 
Capito.


                         DEPARTMENT OF DEFENSE

                         Department of the Navy

                        Office of the Secretary

STATEMENT OF HON. CARLOS DEL TORO, SECRETARY


                opening statement of senator jon tester


    Senator Tester. I call this committee meeting to order. 
Good morning. I want to welcome our witnesses.
    Secretary Del Toro, Admiral Gilday, General Berger, thank 
you for your service to our Nation, and thank you for leading 
the Navy and the Marine Corps.
    I look forward to discussing your fiscal year 2024 budget 
priorities today. The fiscal year 2024 budget request for the 
Navy and the Marine Corps is $255.8 billion, $11 billion more 
than in fiscal year 2023, and about $32 billion more than 
fiscal year 2022. This increase sounds robust but it is 
irrelevant unless we enacted Defense Appropriations bill for 
fiscal year 2024.
    Our key priority this year must be to get the budget done 
on time. Continuing resolutions kill military modernization and 
cause billions in wasteful spending. And it is no secret that 
the Chinese don't operate under continuing resolutions.
    I am encouraged by the work that Chair Murray and Vice 
Chair Collins, have already put in to restore regular order to 
the Appropriations Committee. Their commitment to writing 
Bipartisan Appropriations Bills that addresses the critical 
challenges facing our Nation have my full-throated support.
    This budget request represents continuity from last year's 
budget by furthering implementing the National Defense 
Strategy. And it reinforces what we already know, despite 
Russia's ongoing unjust war in Ukraine; China remains our 
number one pacing threat.
    We must continue to modernize our Military to stay ahead of 
that threat. The Navy and Marine Corps play an important role 
in defending our national and economic security by providing 
unparalleled maritime capabilities.
    Every week Senator Collins and I hear from commanders in 
the field about the varying threats facing our Nation. So the 
question I have is: Are we spending taxpayer on the right 
things?
    We look forward to hearing from you on where we have made 
progress, and what challenges remain. And once again, I want to 
thank each one of you for your service to our country.
    Before you make your opening statements, I want to turn it 
over to Senator Collins for her opening statement.


                 statement of senator susan m. collins


    Senator Collins. Thank you very much, Mr. Chairman. It has 
been a great pleasure to work with you as we proceed as the 
Chair and Vice Chair of this very important subcommittee.
    I want to echo the Chairman's thank you to each of our 
witnesses, for your service, it is greatly appreciated. And I 
would ask that you also pass on our gratitude to the Sailors 
and Marines that you represent.
    I also want to recognize the Department's many civilians, 
and their industry partners who build and maintain the ships, 
aircraft, and munitions that sustain the Navy and the Marine 
Corps. They make invaluable contributions, and I am personally 
proud that so many Mainers have chosen to serve their country 
in these capacities, such as, by working at Bath Iron Works, 
the Portsmouth Naval Shipyard, and the Naval Computer and 
Telecommunications Center in Cutler, Maine.
    The administration's 2022 National Defense Strategy 
accurately describes the accelerating threat of China, as the 
Chairman has indicated, and its unprecedented military 
modernization.
    However, in my judgment, the administration's budget 
request does not fully reflect the challenges identified in its 
own National Defense Strategy.
    For example, the President's budget request would result in 
a fleet of 291 ships at the end of the next 5 years. That is 
smaller than today's fleet of 296 ships, and significantly 
smaller than the Navy's own requirement of 373 ships. I am also 
concerned with the contrast to more than 440 ships that China 
is expected to have by the year 2030.
    The budget requests also inadequately accounts for the 
impact of Inflation and Investment and Readiness Accounts. The 
Navy's proposed budget increase of 4.5 percent, which includes 
the Marine Corps' 2.6 percent increase, would likely provide 
less buying power than the fiscal year 2023 enacted budget 
after accounting for inflation.
    For example, the budget request assumes a fuel price of 
$140 per barrel, yet on the very day that the budget was rolled 
out fuel was $169 per barrel, that is 20 percent more than 
budgeted.
    Why does this matter? It matters because the Department of 
the Navy consumes roughly 24 million barrels of fuel each year, 
and each one dollar per barrel increase carries a $24 million 
dollar cost. At $29 per barrel below current rates, this budget 
would equate to a $700 million dollar unfunded cost just for 
the Department of the Navy.
    It is no surprise that Admiral Gilday and General Berger's 
unfunded priorities which highlights some of the shortfalls of 
this budget, totaled $5.7 billion.
    With that backdrop, Navy leadership deserves credit for 
redoubling its commitment to ship maintenance. This is 
evidenced by the $1.8 billion dollar increase for ship repair, 
and the continued full funding for the Shipyard Infrastructure 
Optimization Plan at the Navy's four public shipyards, 
including the Portsmouth Navy Shipyard in Kittery, Maine. These 
investments are critical to keeping a greater portion of the 
Navy's Fleet available for operations.
    I also want to commend the Navy for pursuing a record 
number of multiyear procurement contracts for munitions this 
year. Ukraine's War has taught us that we must transition from 
just-in-time stockpiles of weapons and munitions to just-in-
case stockpiles. If implemented well, these multiyear contracts 
will provide industry with the certainty necessary to make that 
transition a reality, and deliver cost savings for the 
taxpayers at the same time, and help with workforce challenges.
    I look forward to discussing all of these issues with our 
distinguished witnesses today.
    Thank you, Mr. Chairman.
    Senator Tester. Thank you, Senator Collins.
    You will each be given 5 minutes for your presentation. 
Know that your full written testimony will be a part of the 
record.
    And we will start with you, Secretary Del Toro.


               summary statement of hon. carlos del toro


    Secretary Del Toro. Thank you, Mr. Chairman. Chairman 
Tester, Ranking Member Collins, distinguished Members of the 
Committee. It is an honor to appear before you, alongside 
General Berger and Admiral Gilday, to discuss the Posture of 
the Department of the Navy.
    Today, our Nation faces challenges in every region and 
domain we operate in, from the seabed to the stars. We 
recognize the People's Republic of China as our pacing threat 
executing a strategy aimed at upending international order.
    To preserve our way of life the National Defense Strategy 
calls upon the Joint Force to deter aggression while being 
prepared to prevail in conflict. A strong Navy and Marine Corps 
are the foundation upon which the success of the Joint Force 
exists.
    The President's 2024 budget sends a strong signal to the 
American people of the value President Biden, and Secretary 
Austin, and myself place in maintaining a robust Navy and 
Marine Corps team to confront the threats that we face. This 
year's budget request supports our three enduring priorities: 
strengthening maritime dominance, building a culture of 
warfighting excellence, and enhancing our strategic 
partnerships around the globe.
    With your support over the past year we have made major 
strides to modernize our fleet and our force. In 2022 we saw 
the first deployment of the aircraft carrier USS Gerald R. 
Ford, providing the Navy with lessons learned that will benefit 
future Ford-class carriers.
    With the support of our partners in Congress we are proud 
to field capable aircraft carriers as part of our fleet with a 
lower service life cost than their Nimitz-class predecessors. 
Construction of high-end surface combatants continues, 
including the first Constellation-class frigate, USS 
Constellation, and the first of our Early Bird-class Flight III 
destroyers, the USS Jack Lucas, which we are scheduled to 
commission in the fall.
    We continue progress on our first Columbia-class Ballistic 
Missile Submarine, the District of Columbia, our pre-
construction activities on the second Columbia-class Ballistic 
Missile Submarine, the USS Wisconsin, have also begun.
    On the innovation front, Task Force 59 in Bahrain continues 
to test a wide range of uncrewed surface vessels. We look 
forward to bringing the capabilities that these platforms 
provide us to additional regions that we operate in around the 
globe.
    When we consider the composition of our fleet we seek to 
strike a balance between readiness, modernization and capacity, 
with an immediate emphasis on readiness.
    This year, our divestment request includes three amphibious 
ships, at least two cruisers in poor material condition that 
offer limited warfighting capability. Our decisions to divest 
or extend the ship's life are based on a hull-by-hull 
evaluation. For example, we recently announced the 
modernization of the destroyer, USS Arleigh Burke, DDG-51, to 
keep it sailing through 2031, 5 years beyond its estimated 
service life. We hope to be able to continue that trend with 
other ships when possible.
    We owe it to the American people to be responsible stewards 
of our taxpayer dollars, as you have stated Mr. Chairman; 
investing in platforms with limited capability conflicts with 
that responsibility. The Navy and Marine Corps are not just 
about platforms and systems, however, our Sailors and our 
Marines are our greatest strength. This year's budget request 
contains multiple investments to support them and their 
families, with services, benefits, housing, and education.
    In addition to our commitments to our people, we are 
reinforcing our relationship with our allies and partners 
around the globe, including our Ukrainian partners as they 
defend their sovereignty in response to Russia's illegal and 
unprovoked invasion.
    In the Indo-Pacific we continue to play our leading role in 
the AUKUS Security Partnership. Just this month, President 
Biden announced the optimal pathway for Australia's acquisition 
of conventionally armed nuclear-powered, fast-attack 
submarines. Our Navy will be critical to this initiative's 
success as we support a very important ally.
    In addition to our partnerships abroad, we are also 
committed to strengthening our relationships here at home with 
industry. We value your support and recommit our leadership 
toward defueling and remediating the Red Hill Bulk Fuel Storage 
Facility spill as well. We are committed to doing what it takes 
to address the concerns of our service members, their families, 
the people of Hawaii, and all other communities throughout the 
U.S.
    As I have said before, we build trust one day at a time, 
one action at a time, and we are committed to doing the right 
thing.
    Lastly, I am grateful for the trust you have placed in me 
to lead this Department. I look forward to discussing how best 
to support our Sailors, our Marines, and their families in 
defense of our Nation.
    And I thank you, sir.
    [The statement follows:]
                 Prepared Statement of Carlos Del Toro
    Chairman Tester, Vice Chair Collins, distinguished members of the 
committee, it is an honor to appear before you alongside General Berger 
and Admiral Gilday to discuss the posture of the Department of the Navy 
(DON). We appreciate your trust and confidence in us to lead the DON, 
and appreciate opportunities like this to come together with you and 
address how to best to recruit, train, equip, and prepare our Sailors 
and Marines so they can fulfill their vital role in support of the 
Joint Force, protecting our national security interests.
    The United States requires a strong Navy and Marine Corps. The 
national and economic security of our Nation depends on free and open 
access to the sea. Ninety percent of international trade travels over 
the seas and one third of that transits the South China Sea. Over 400 
undersea fiber-optic cables carry more than a trillion dollars in 
transactions every day. And the rules-based international order that 
benefits us all requires a strong maritime force, campaigning forward 
alongside allies and partners to provide the sea control and integrated 
deterrence we need to counter strategic competitors today and into the 
future.
    We find ourselves at an inflection point, one that demands we renew 
our commitment to naval primacy as we chart a course through this 
century of intense maritime competition. Over the past two decades, the 
People's Republic of China (PRC) has more than quadrupled its export 
trade and used its growing wealth and economic power to rapidly expand 
and modernize its military and its navy. The People's Liberation Army 
Navy has added over one hundred combatants to its fleet in that time--a 
naval buildup that is a key component of its increasingly aggressive 
military posture. Today it has approximately 340 ships, and is moving 
towards a fleet of 440 ships by 2030. The PRC is conducting active, 
aggressive maritime activities in the South China Sea and beyond that 
have the potential to undermine our system of international law, 
including the freedom of the seas, a foundational U.S. interest.
    Our maritime challenges are not confined to the Indo-Pacific. 
Moscow has not abated in its efforts to control large swaths of the 
Black, Baltic, and Arctic Seas, trying to intimidate and deny other 
countries the opportunity to exercise their rights to free passage. 
That is why six of seven of NATO's priority operating regions are 
maritime-focused, and NATO is moving to adopt its first maritime 
strategy.
    Our Navy and Marine Corps team are meeting these threats on the 
sea, under the sea, in the air, and in cyberspace every single day. To 
defend freedom of the sea, we must ensure our Sailors and Marines have 
the capability and forward presence to stand by our allies and our 
partners.
    That is why I have directed our Navy and Marine Corps team to 
prioritize our investment in readiness, to make sure our ships and 
aircraft are always prepared to deploy. This approach will deliver the 
integrated deterrence at sea required by our National Defense Strategy.
      three enduring priorities guiding the department of the navy
    Last year I had the privilege of introducing my strategic vision 
for the Department of the Navy to this committee, centered on our 
Department's three enduring priorities, which are complementary to and 
supportive of both the CNO's Navigation Plan 2022 and the Commandant's 
Force Design 2030.
    First, we are strengthening our maritime dominance so that we can 
deter potential adversaries, and if called upon, fight and win our 
Nation's wars. Second, we are building a culture of warfighting 
excellence, founded on strong leadership, and rooted in treating each 
other with dignity and respect. And third, we are enhancing our 
strategic partnerships, across the Joint Force, with industry, with 
academia, and with our allies and partners around the globe. Over the 
past year and a half, our DON team has made irreversible progress 
across our three enduring priorities, supporting positive growth and 
modernization in our naval force. I highlight the progress we've made 
and successes we've enjoyed over the past year through the support of 
the committee and your other colleagues throughout Congress.
    Strengthening maritime dominance requires us to rapidly field the 
concepts and capabilities that create advantage relative to our pacing 
threat, with the sustainment necessary to generate integrated, all-
domain naval power. That is why we are making the investments now, 
guided by the CNO's Navigation Plan and Marine Corps Force Design 2030, 
to ensure we remain the most lethal, capable, and globally postured 
force on this planet for decades to come.
    Last June, our shipbuilders laid the keel for USS District of 
Columbia, the first of a new class of nuclear-powered ballistic missile 
submarines that will underwrite the Nation's nuclear deterrent out to 
the year 2080. The second Columbia-class hull, USS Wisconsin, has begun 
pre-construction activities.
    In July, we commissioned USS Fort Lauderdale, an amphibious warship 
that will help modernize our amphibious fleet and extend the reach of 
our Marines to fight from the sea wherever there is a need.
    What's more, USS Tripoli, the second of our America-class 
amphibious assault ships, completed its maiden deployment in 2022, 
operating throughout the Indo-Pacific with our larger, traditional 
aircraft carriers as a test of our F-35B ``Lightning Carrier/Assault 
Carrier'' concept. Deployments like this one highlight the Navy and 
Marine Corps' interoperability as well as the strategic and operational 
advantages that amphibious ships continue to provide to the Joint 
Force.
    With regard to aircraft carriers, we've made significant progress 
on USS Gerald R. Ford, the first new carrier to be deployed in almost 
50 years. We are taking the lessons learned from the Ford as we build 
the future USS John F. Kennedy, USS Enterprise, and USS Doris Miller. 
Our carriers are not only vital to deterrence, they are also the 
cornerstone of our interoperability with our allies.
    Our most advanced fighter aircraft, the F-35 Lightning II, now 
brings fifth-generation stealth and multi-role, multi-mission reach and 
power wherever we need to fight. Meanwhile, the F/A-18E/F Super Hornet 
will be the numerically predominant aircraft in the carrier air wing 
well into the 2030s. Service-life modification initiatives and 
capability upgrades enhance our inventory by advancing the tactical 
relevance of the F/A-18 E/F and closing the Navy's strike-fighter gap. 
We are working with industry to ensure trained mechanics are prepared 
to support induction schedules, and that they are bringing electrical 
and avionics experts onboard to support Block III transition efforts.
    Marine aviation continues to build capability and capacity in the 
image of the future force. Recently, we stood up Marine Aerial Refueler 
Transport Squadron 153 in Kaneohe Bay, Hawaii, significantly increasing 
the reach and sustainment capabilities of Marines in the Pacific 
theater.
    The fifteen KC-130J tanker aircraft that VMGR-153 will have by 2026 
will enhance the organic mobility available to Marines during training, 
in response to crisis, or in conflict. We are approaching 1 year since 
the CH-53K Sea Stallion program became operational, and we are well 
underway transitioning Marine Heavy Helicopter Squadron 461 into our 
first fully operational Sea Stallion squadron. While it is still in 
transition, HMH-461 is already conducting heavy-lift assault support 
missions previously impossible with legacy aircraft.
    Over the past year, DON personnel have also demonstrated the 
immense potential of unmanned and autonomous vehicles. The Overlord 
Surface Vessel Ranger successfully transited from the Gulf Coast to the 
West Coast without an embarked crew. These unmanned surface vehicles 
will reduce the risk to our personnel, lower operating costs, and 
protect access to areas like the South China Sea. In addition, U.S. 
Naval Forces Central Command's Task Force 59, a new, first-of-its- kind 
task force, is rapidly integrating unmanned systems and artificial 
intelligence into maritime domain awareness in the Fifth Fleet area of 
operations, and we will soon expand that capability to other regions of 
the world.
    In addition to procuring the modern platforms, we are also 
expanding the areas available for our personnel to train. With our 
partners in Congress, through the National Defense Authorization Act of 
2023, we are expanding and modernizing our training ranges at Naval Air 
Station Fallon. This initiative will provide our pilots with the 
airspace and ground necessary to hone their skills in the advanced 
aircraft we field.
    Another area of improvement is shipyard performance: our 
significant investment in the Shipyard Infrastructure Optimization 
Program, known as SIOP, is modernizing our four aging public shipyards 
by optimizing facilities and infrastructure as well as increasing dry-
dock capacity and capability. We are also looking at establishing a 
parallel high-end technical track in nuclear welding, robotics, hull 
technology, software and electronics integration, as well as additive 
manufacturing for high-paying blue collar career.
    We have made significant improvements to surface ship readiness. 
Working with industry partners, we have reduced maintenance delays on 
major maintenance periods in private shipyards by 39 percent since 
2019. On-time completion of availabilities has also steadily increased 
from 34 percent in FY19 to 41 percent for all maintenance periods 
completed in FY22. We have brought data and advanced analytics to 
inform the plan for each maintenance and repair availability period, 
and improved our processes to better scope work and structure each 
availability well before ship arrival dates.
    Public shipyards are also improving from FY19 in both fewer days of 
maintenance delay and increases to on-time completion percentages. In 
FY22, despite lingering COVID challenges to production, the public 
shipyards reduced number of days of maintenance delay by 29 percent 
from 2019 with on-time completions now at 33 percent.
    Our second enduring priority, building a culture of warfighting 
excellence, demands more aggressive recruiting, more ``training like we 
fight,'' and a stronger commitment to retaining a strong, diverse, and 
healthy force--a force that is ready at all times and focused on 
warfighting and strong, positive leadership at every level. That's why 
we have expanded community- and school-based outreach while 
simultaneously increasing media campaigns in underserved and minority 
markets. We must attract the broadest possible talent pool from 
throughout our all Nation, including more women.
    Recognizing that quality of life for our service members and 
families is inseparable from warfighting excellence, we have directed 
substantial investments in quality-of-life initiatives, infrastructure 
improvement, and the largest military pay raise in over 20 years. All 
of these efforts are centered on one goal: combat readiness. Our 
Sailors and Marines are better prepared and more focused when they know 
their families are being cared for and doing well.
    Our third strategic priority, enhancing our strategic partnerships, 
sustains and expands our advantage by seeking to achieve seamless 
integration, communication, and collaboration with each of our 
partners. With our Government partners, we have strived toward greater 
agility, adaptability, trust, and transparency in support of our 
warfighters. Globally, we have strengthened our relationships with 
like-minded maritime nations, deepening interoperability and 
interchangeability in order to enable mutual action to address shared 
challenges.
    Our actions in the face of adversity will long be remembered by our 
allies and partners. Since the start of the conflict in Ukraine, the 
Navy and Marine Corps have supported our Ukrainian partners as they 
continue to defend their sovereign territory in the face of unprovoked 
Russian aggression. Together, we have risen to the occasion, supplying 
an unprecedented volume of capabilities to assist in their time of 
need. In 2022 alone, the Department of the Navy coordinated the 
identification, adjudication, and delivery of over $1.3 billion in 
critical systems, weapons platforms, munitions, and support equipment 
to address critical Ukrainian needs.
    Beyond tending to our international partnerships, we are working to 
expand on relationships here at home. We have made a concerted effort 
to support our defense industrial base, with special attention paid to 
supporting entrepreneurs leading small and medium-sized businesses. As 
a direct result of the President of the United States' Executive Order 
13985, ``Advancing Racial Equity and Support for Underserved 
Communities Through the Federal Government,'' the DON took action to 
further develop and refine our strategic and tactical approaches to 
maximize small- business utilization across a diverse industrial base. 
These deliberate actions have increased our outreach to small 
businesses, improved subcontracting compliance and oversight, fostered 
more opportunities to fully utilize the Department of Defense (DoD) 
Mentor-Protege Program, and increased Phase III Small Business 
Innovation Research program funding by 16 percent over the previous 
year.
    All of these endeavors contribute to our desired expansion of the 
DoD's supply chain marketplace.
                the fiscal year 2024 president's budget
    Despite the successes and progress highlighted above, there is 
still work to be done on all fronts. The President's Budget for Fiscal 
Year 2024 (PB24) request to Congress is a clear signal of
    President Biden's support for our Navy and Marine Corps team and of 
the recognition of our critical role in the Joint Force especially in 
light of the complex strategic environment. Our request this year 
totals $255.8 billion, a 4.5 percent increase over last year. Every 
dollar of this request will contribute to the warfighting strength of 
our Navy and Marine Corps, from research and development of next-
generation technologies and systems to procurement of high-end 
platforms critical to defending our Nation, infrastructure 
improvements, and most importantly, taking care of our Sailors, 
Marines, and their families who sacrifice so much.
                    strengthening maritime dominance
Fleet Investments
    A modern, capable, and lethal Navy requires sustained investment 
across a variety of platforms to complete missions in all environments. 
PB24 prioritizes the development, procurement, and sustainment of our 
Navy's ships to provide our Nation with the most capable platforms. The 
request includes the full funding for two destroyers, two nuclear-
powered attack submarines, two frigates, one T-AO fleet replenishment 
oiler, and one AS(X) submarine tender, while providing the next 
increment of funding for construction of CVN 80, CVN 81, and LHA 9, as 
well as the first year of incremental funding for the second Columbia-
class ballistic missile submarine.
    The budget request also includes a significant investment in 
submarine maintenance with the goal of reducing maintenance periods and 
improving the operational availability of these critical assets. These 
funds are aimed at improving material availability and strengthening 
the private and public industrial bases.
    PB24 prioritizes modernization of the Zumwalt Class (DDG-1000) 
guided-missile destroyer to enable the Navy's first fielding of the 
conventional prompt strike sea-based hypersonic weapon system. It also 
includes key enablers for the Integrated Combat System such as 
Infrastructure-as-Service. The Integrated Combat System will allow the 
Navy to deliver future capabilities through software uploads instead of 
hardware installations.
Fleet Divestments
    Within PB24 is the request for the divestment of eight surface 
combatants: three cruisers (CG); three Landing Ships, Dock (LSD); and 
two Littoral Combat Ships (LCS). The three CGs--USS Cowpens (CG-63), 
USS Shiloh (CG-67), and USS Vicksburg (CG-69) are all within 3 years of 
their end-of-service-life dates. While these cruisers have a large 
vertical-launch capacity for a variety of weapons, the cost associated 
with repairing, modernizing, and sustaining the hulls requested 
significantly outweigh any warfighting contribution they provide to the 
fleet, and occupy limited, valuable private shipyard space that could 
be better used for maintaining more- lethal ships.
    In addition to the three cruisers, we are requesting divestment of 
USS Jackson (LCS-06) and USS Montgomery (LCS-08), both Independence-
Class LCS variants. We acknowledge that both hulls are a third of the 
way through their projected service life of 25 years. However, these 
platforms are less lethal, less capable, and far more expensive to 
sustain than what is needed for the contested seas our Navy now finds 
itself operating in.
    Finally, we are requesting the divestment of USS Germantown (LSD-
42), USS Gunston Hall (LSD-44), and USS Tortuga (LSD-46), three 
amphibious ships that are all at or over 34 years of service and in 
unsatisfactory material condition. The planning and repair periods 
required for these ships to reach a deployable status would put all 
three at or near their 40-year end-of- service-life mark. Undertaking 
the repair of these ships, with potential cost growth, would tie up 
funding, shipyard capacity, and take an enormous personal toll on our 
Sailors assigned to the projects. However, we recognize this request 
brings us below the 31 amphibious ships we are required to maintain per 
the National Defense Authorization Act for Fiscal Year 2023. The CNO, 
Commandant, and I are committed to ensuring we meet this requirement 
and doing so in a timely manner, but with a capable, sustainable mix of 
ship classes that will support our Marines and Sailors for decades to 
come.
    In PB23, the DON proposed 16 ship divestments, but was only allowed 
to divest four. Ultimately, it is our Sailors and Marines who pay the 
price when we are restricted from retiring legacy platforms and 
investing in the capabilities needed for the future.
Research and Development (R&D) of Enhanced Capabilities
    PB24 requests a total of $26.9 billion to increase innovation and 
modernization efforts in R&D. The budget request commits $718 million 
of R&D funding to the recapitalization of all portions of the undersea 
leg of the triad including Columbia-class submarines, Take Charge and 
Move Out (TACAMO) capability, and the Trident D5 life extension 2. The 
next-generation air defense family of systems includes the F/A-XX, the 
``Quarterback'' of the manned/unmanned team concept, directing multiple 
tactical platforms at the leading edge of the battlespace. PB24 also 
funds $861 million in R&D for unmanned platforms, including the MQ-4 
Triton, the MQ-25 Stingray, the Large Unmanned Surface Vessel, the 
Extra Large Unmanned Undersea Vehicle, and the MQ-9A Reaper.
Sustaining Maritime Information Superiority
    Information is combat power, and we will continue modernizing our 
information technology infrastructure, ashore and afloat to ensure this 
essential backbone of our maritime power remains secure and survivable 
and continues to deliver information everywhere to maintain decision 
advantage over our adversaries. PB24 budgets approximately $13 billion 
for enterprise IT, cyber activities, business systems, and other 
communications across the DON.
    These investments are a critical warfighting priority for the 
Department. The DON is building information superiority to win the 
naval fight by modernizing its infrastructure, innovating and deploying 
new capabilities, and defending its information. These initiatives are 
enabled by data that is managed as a strategic asset.
    Bringing the DON's enterprise infrastructure to parity with 
Industry is essential for us to maintain our advantage in competition, 
crisis and conflict. We have charted a path to a digital work 
environment where users can securely access their data anywhere on any 
device with performance that rivals best-in-class experiences in 
Industry.
    The DON is accelerating the modernization and transformation of our 
IT capabilities by ensuring that decisions made to sunset or 
rationalize unneeded, obsolete, unproductive, insecure, and un-
auditable IT applications are realized. This effort, coined Cattle 
Drive, will accelerate modernization within multiple business and core 
IT portfolios and self-identify funds for potential re-alignment to 
transformational investments.
    The DON is accelerating adoption of game-changing low-earth orbit 
commercial satellite technology to provide resilient, low-latency, 
high-speed communications for warfighting, support, and quality-of-
life-and-work solutions. We are adopting a new approach to 
cybersecurity that will move the DON from its current ineffective 
compliance-based cybersecurity approach to one based on readiness where 
the right to operate is earned and managed every day.
    The DON is a leader within the DoD on the initiative to implement a 
more effective cybersecurity model called zero trust that is better 
adapted to today's threat and computing environments. Finally, data 
management and analytics progress the DON is making on multiple fronts 
is enabling us to improve decisionmaking, sustain information 
superiority and meet the goals of the DoD data strategy by ensuring 
quality data are accessible, understood, and shared to the point of 
need.
Enabling Cyberspace Superiority
    In addition to building information superiority, the Department 
will ensure our networks and systems are secure, our critical 
infrastructure and weapon systems are survivable, and our cyber forces 
can impose costs on adversaries in and through cyberspace when 
required.
    Adversaries and competitors worldwide leverage cyber 
vulnerabilities to hold our capacity and capabilities at risk. This 
malign behavior requires a robust response, and we will prioritize 
building cyber resilience and strengthening our capacity to withstand, 
fight through, and recover quickly from disruption. To do this, the 
Department must ``bake in'' cybersecurity to new capabilities and 
platforms we procure while ``bolting on'' cybersecurity capabilities to 
legacy platforms. This strategy also requires training our Sailors and 
Marines to operate in cyber contested environments.
    In addition to building cyber resilience, the Department is 
advancing the technology, tactics, and readiness of our military 
cyberspace operations forces. One example of this force development is 
the Navy's forthcoming establishment of a specific cyber warfare 
officer designator and enlisted rating. The Department is similarly 
committed to improving the readiness of the cyber forces we present to 
U.S. Cyber Command, and we will expand the integration of non-kinetic 
effects afloat.
    Marine Corps Information Command, which operates under the Marine 
Forces Command, achieved initial operational capacity in January 2023. 
Marine Corps Information Command provides critical linkages at the 
operational level as well as task-organized elements to support 
campaign objectives by providing decision-makers the ability to 
leverage authorities and approvals across the cyber, space, influence, 
and intelligence functions, generating multi-domain advantages.
    Our information space requires new approaches to training, such as 
the Persistent Cyber Training Environment, which integrates 
capabilities to continuously evolve cyber training and exercises. This 
joint capability has expanded access over the last year, enabling force 
readiness and driving decisions on the tactical, operational, and 
strategic levels.
Munitions Procurement
    PB24 takes full advantage of new authorities granted by Congress in 
the Fiscal Year 2023 National Defense Authorization Act that provided a 
streamlined multiyear procurement process for critical munitions. Not 
only will this authority allow the Department to replenish munitions 
stockpiles which are reduced in support of the war in Ukraine, it will 
also support efforts to strengthen the industrial base capacity to 
develop, produce, and field munitions. We are requesting funding for 
the procurement of 34 Block V Tactical Tomahawk missiles for the Marine 
Corps, as well as several hundred Tactical Tomahawk recertification 
kits, navigation and communications kits, and Maritime Strike Tomahawk 
kits for the Navy. Additionally, PB24 supports the awarding of multi-
year procurement contracts for critical munitions, including Standard 
Missile (SM-6), the Naval Strike Missile, and Long Range Anti-Ship 
Missile (LRASM). Overall, funding for these and other weapons increased 
by $2 billion in this budget-- a growth of nearly 50 percent compared 
to last year.
Organic Industrial Base
    The DON's organic industrial base is vital to our national 
security, and the DON is committed to ongoing depot modernization and 
optimization efforts. A modernized and ready organic industrial base 
generates Fleet readiness and strengthens our Nation's security.
    PB24 continues the investment in our industrial base to further 
efforts to train, recruit, and retain the workforce, expand capacity 
and enable the development and integration of new technologies. 
Deliberate investments in the planning and design of facilities and 
optimization within the depots, as well as contract execution in dry-
dock repair and refurbishment are focus areas of the budget cycle.
    PB24 reflects the three named efforts within the Organic Industrial 
Base where these investments highlight the commitment to the Nation's 
security with regard to maintaining our wartime assets. First, the 
Shipyard Infrastructure Optimization Program consists of four public 
shipyards located in Portsmouth, VA; Kittery, ME; Bremerton, WA; and 
Pearl Harbor, HI. PB24 funding totals $2.7 billion across multiple 
accounts. Replacing Dry Dock 3 at Pearl Harbor Naval Shipyard is a 
critical enabler of increased naval capability. This project will 
construct a graving dock in order to support Pearl Harbor Naval 
Shipyard's ability to continue serving the Navy decades into the future 
by maintaining and modernizing the Pacific Fleet's nuclear-powered 
submarines. Second, the Fleet Readiness Center Infrastructure 
Optimization Program consists of three Fleet Readiness Centers located 
in NAS North Island San Diego, CA; NAS Jacksonville, FL; MCAS Cherry 
Point, NC. And finally, the Marine Corps Organic Industrial Base 
consists of two Marine Corps production plants located in Albany, GA 
and Barstow, CA.
    The Presidential Budget request funds public shipyard depot 
maintenance to 100 percent, and increases the overall workforce from 
37,089 to 37,234 full-time employees, adding an additional 145 full- 
time employees for the Pearl Harbor Naval Shipyard and Intermediate 
Maintenance Facility Guam Detachment. PB24 also aligns funding to 
improve supply-chain capability and materiel availability in order to 
make proper budget and schedule decisions for items such as long-lead- 
time materiel.
Aviation Investments
    The F/A-18E/F Super Hornet will be the numerically predominant 
aircraft in the carrier air wing into the 2030s. PB24 funds service-
life modification initiatives and capability upgrades that enhance our 
strike-fighter inventory by maintaining the tactical relevance of the 
F/A-18 E/F and minimizing the Navy's strike-fighter shortfall. The 
presidential budget request also funds delivery and support of 
survivable, reliable, and resilient airborne command, control, and 
communications through the installation of critical modifications to 
the existing E-6B fleet, along with platform recapitalization to 
procure a follow-on TACAMO capability.
    We will prioritize the continued development and production of 
unmanned aircraft systems to support current Fleet intelligence, 
surveillance, and reconnaissance requirements and to support future 
unmanned aircraft system integration into the carrier air wing. The 
budget funds two MQ-4 Tritons, three MQ-25 Stingrays, and five MQ-9A 
Reapers for the Marine Corps. PB24 requests funding for 35 F-35s: 19 F-
35C variants for the Navy and Marine Corps and 16 F-35B variants for 
the Marine Corps. These aircraft will be the backbone of DON air combat 
superiority for decades to come, complementing the carrier strike group 
with a dominant, multirole, fifth-generation aircraft capable of 
projecting U.S. power and deterring potential adversaries.
    PB24 also requests funding for the procurement of 15 CH-53K King 
Stallions. These production assets will be part of a two-year block buy 
contract authorized by Congress in the FY23 NDAA. The program recently 
achieved a Full Rate Production decision.
Climate Readiness
    For the Navy and Marine Corps, a changing climate means a contested 
operational environment. Climate change brings extreme weather events, 
more humanitarian crises, and heightened friction around essential 
natural resources. A more volatile world increases demands on our Navy 
and Marine Corps forces while simultaneously impacting the capacity to 
respond to those demands. Improving the energy performance of our 
platforms and weapons systems is essential to providing a combat-
effective force in contested operating environments. To do this, the 
Department is working to establish rigorous, energy-informed 
requirements for new capabilities that are then sustained throughout 
our acquisition decisionmaking.
    Last year, the DON published Climate Action 2030 to maintain the 
superiority of our naval forces through resilience and reducing the 
national security threat of climate change. In support of this 
initiative, last December, the Naval Postgraduate School signed an 
education partnership agreement with Stanford University's Doerr School 
of Sustainability. In bringing together these two globally recognized 
institutions, it is our hope to realize solutions our Navy and our 
Nation can employ to mitigate and reduce effects of a changing climate.
    Jointly with our partners in Congress, we are constantly seeking 
innovative solutions, leveraging science, partnering with industry and 
other government entities, and investing responsibly to ensure mission 
readiness. Climate readiness is a tactical, operational, and strategic 
enabler, and we must ensure our naval forces can operate and succeed in 
any environment.
              building a culture of warfighting excellence
Building the Future Force
    The civilian work force is comprised of talented individuals from 
all walks of life whose experiences and skillsets are critical not just 
to our economic success, but to the overall security of our Nation. 
Today's Navy and Marine Corps team is a forward-deployed highly 
sophisticated network that is one of the most technologically advanced 
networks ever conceived and which operates either in concert with other 
combat units or fully self-sustained, and able to dominate in the air, 
sea and undersea.
    As we become a more technologically advanced force, top civilian 
talent is increasingly critical to maintaining America's might upon the 
sea. Technical talent is needed for the wide array of challenges the 
DON faces. More than half of the civilian workforce are top-tier 
scientists, logisticians, engineers, mathematicians, technology 
specialists, or cyber experts; almost a quarter of the workforce are 
artisans performing critical work at the shipyards, depots, civilian 
mariners, or safeguarding our facilities and activities. As one 
indication of the quality and expertise of our workforce, the DON was 
issued 225 patents (more than the Air Force and Army combined) in FY22 
and holds more than 58 percent of all active DoD patents (4,129).
    Our civilian workforce ensures a 24/7 rapid response to warfighter 
requirements, develops and manufactures critical systems, repairs and 
maintains our ships and aircraft and develops game- changing technology 
and equipment. The civilian workforce is present in 55 countries, 
supporting Sailors and Marines around the world.
    We are in a competition for talent with many other employment 
sectors, which is driving us to re-evaluate how we manage the careers 
of our Sailors, Marines, and civilians, from initial recruitment to 
retirement. To maintain a Fleet that is prepared to defend our Nation 
from all potential adversaries, we must continue to enhance our ability 
to attract, develop, and retain a workforce equally as talented and 
diverse as the American people they serve. This includes maintaining an 
appropriate number of senior executive leadership (general officer, 
flag officer, and SES) billets to ensure optimal operational readiness.
    The Marine Corps continues to make great strides toward retaining 
more experienced Marines under the Service's Talent Management program. 
Leveraging authorities previously enabled by Congress, the Service 
enacted nine initiatives in 2022, from which they will expand and 
accelerate in 2023 including Early Reenlistment Authority, SNCO 
Promotion Board Realignment, Recruiting Station Commanding Officer 
Selection Boards, the Special Duty Assignment volunteer program, 
MarineView 360-degree leadership reviews, officer promotion opt-outs, 
Digital Boardroom 2.0, Separate Competitive Promotion Categories, and 
the Career Intermission Program.
    As a result of many of these programs, the Marine Corps met or 
exceeded its first and subsequent term alignment program goals for the 
first time in 13 years and retained a statistically higher-quality 
group of Marines. The Service is examining numerous other evolutionary 
initiatives and remains committed to evolving the talent management 
system with the primary goal of improving warfighting readiness in an 
increasingly complex world.
    As another example of a positive development in force development, 
in August 2022, Naval Special Warfare Command (NSW) formally 
established its Assessment Command (NSWAC) to transform how its units 
compete for talent by building a sustainable architecture for 
diversified outreach. It conducted more rigorous pre-assessments for 
character, cognitive, and leadership attributes, and strengthened NSW's 
culture of continuous assessment. NSWAC is taking a whole-person 
approach to identify, prepare, and mentor qualified candidates from 
diverse backgrounds to complete training programs and pursue a 
successful career in NSW. As this new command was being developed, NSW 
conducted 60 outreach events with more than half specifically focused 
on increasing force diversity and inclusivity with underrepresented 
demographics. These efforts will enhance the way NSW continuously 
assesses and selects its incoming officers and enlisted personnel.
Educational Initiatives
    Last year I talked about the Targeted Re-entry Program, which 
empowers commanding officers to identify and nominate their Sailors for 
an accelerated return to active duty. This year we want to highlight 
our increased partnership with the Department of Education, trade 
schools, and colleges and universities to develop and recruit the 
military and civilian workforce we need.
    As we become a more technologically advanced force, education will 
be a crucial warfighting enabler to maintaining America's might upon 
the sea. Our naval education enterprise is working to develop leaders 
with warfighting knowledge, intellectual dynamism, and creativity to 
maintain a strategic advantage against competitors and global 
adversaries. Through our naval university system, we are creating a 
continuum of learning that develops such leaders to serve at every 
level and equips them with skills to maintain and operate increasingly 
complex systems in an ever- changing warfighting environment.
    PB24 requests a $480.2 million investment to continue supporting 
and growing our naval education institutions. We maintain several 
world-class institutions, including the US Naval Academy, Naval 
Postgraduate School, Naval War College, and Marine Corps University. 
This requested funding will also sustain our efforts to expand our 
enlisted personnel's access to the Naval Community College to support 
their education goals. We are deeply committed to formalizing a culture 
of lifelong learning for both our enlisted and officer communities.
Resiliency & Readiness
    Mental health concerns and rising suicide rates are national-level 
issues to which the Services have not been immune. We are well aware of 
the inextricable link between mental health, resiliency, and the 
readiness of our force. To that end, Admiral Gilday, General Berger, 
and I are committed to supporting and ensuring the mental health, 
safety, and well-being of all Sailors, Marines, and their families, and 
the Department's civilian workforce.
    We must do everything we can to foster the well-being of our people 
and prevent suicide. No one solution applies to every Sailor, Marine, 
family member, or civilian. We are constantly evaluating how we do 
business when it comes to providing services and resources to ensure 
they are meeting needs. Military service entails sacrifice not just for 
the service members, but for their families as well, and we want to 
make sure family members feel seen, heard, and taken care of regardless 
of whether their Sailor or Marine is home, stationed overseas, or 
deployed. The DON offers multiple mental-health and counseling 
resources to all service members at all levels. As we continue to 
encourage positive help-seeking behaviors and combat the stigma around 
mental healthcare among our Marines and Sailors, PB24 requests $87 
million for mental health support, an increase of $13.1 million from 
last year. This additional funding will provide for increases to our 
Sailor Assistance and Intercept for Life (SAIL) program, which provides 
rapid assistance to those in crisis, as well as the addition of two 
Warrior Toughness Teams for each coast.
    Given the complexity of this challenge, our Office of Force 
Resiliency has taken an integrated approach to enhance holistic, data-
driven suicide-prevention strategies which recognize the benefits of 
addressing common risk and protective factors to promote healthy 
cultures and climates. As such, our suicide prevention efforts draw 
from and harmonize with the Defense Strategy for Suicide Prevention and 
the White House Strategy to Reduce Military and Veteran Suicide. We are 
taking action on the recently released report from the Suicide 
Prevention and Response Independent Review Committee, and will work 
within DoD's coordination framework to implement key recommendations 
that will strengthen our prevention effort.
    The Department of the Navy is laser-focused on countering sexual 
assault and sexual harassment at every level. In addition to the toll 
on victims, sexual assault and sexual harassment directly impact unit 
cohesion and ultimately undercuts our readiness. We must create 
environments that foster respect, maintain the dignity of military 
service, and increase our warfighting readiness. Sexual assault and 
sexual harassment are a persistent challenge requiring a multi-pronged 
approach that leverages a wide range of initiatives, not only to 
address these issues, but also to prevent them before they occur.
    I directed the establishment of an Implementation Advisory Panel 
for the Department of the Navy last spring, bringing leaders to the 
table to pinpoint strategies for the Navy and Marine Corps to implement 
the recommendations of the Independent Review Commission on Sexual 
Assault in the Military, as approved by the Secretary of Defense. 
Through the Implementation Advisory Panel, the DON has already made 
significant strides to implement the Independent Review Commission's 
recommendations, focusing on the committee's highest-priority efforts 
first. We fully recognize that we need to continue to confront and 
prevent these destructive behaviors. We are investing significant 
resources to fuel the needed changes and we have made substantial 
progress in standing up a dedicated prevention workforce to prevent 
harmful behaviors, professionalizing the sexual assault response 
workforce to better provide victim care and support, and establishing 
Offices of Special Trial Counsel.
    Additionally, our Office of Force Resiliency actively synchronizes 
the DON's sexual assault awareness and training, prevention, victim 
response, and accountability initiatives with the DoD Office of Force 
Resiliency. Sexual assault and harassment are more than just criminal 
matters. They undermine the trust and commitment that are foundational 
to our forces and they erode faith in our leaders, institutions, 
shipmates, and Marines. This is a leadership issue, and you have my 
commitment to clearly and actively support these efforts and to 
demonstrate that sexual assault and sexual harassment will not be 
tolerated in any way, shape, or form.
Taking Care of Our People
    We continue to make great strides in providing quality-of-life 
services and improving housing options available to our Sailors, 
Marines, and their families. In PB24, we are asking you to support our 
DON families with $622 million aimed at sustaining our child and youth 
services. Additionally, we continue our investments in housing for both 
accompanied and unaccompanied personnel. Notably, our request includes 
$131.8 million for the construction of a Bachelor's Enlisted Quarters 
and Support Facility at Marine Corps Barracks, here in Washington, DC. 
We are also requesting funding to support housing renovations at 
multiple bases, to include Naval Base San Diego, Naval Air Station 
Lemoore, Naval Air Station Oceana, and Naval Base Ventura County. These 
investments will yield dividends for years to come as we continue to 
offer safe, affordable, and convenient housing to those who defend our 
Nation.
                  strengthening strategic partnerships
Community Partnerships
    The DON is leveraging the Department of Defense Readiness and 
Environmental Protection Integration Program (REPI) to partner with 
local governments and non-governmental organizations to advance mission 
readiness through mutually beneficial, sustainable communities near our 
installations and ranges. The recently announced 2023 REPI Challenge 
includes several projects that support DON installations, to include: 
invasive species management and reef preservation near Pacific Missile 
Range Facility Barking Sands and Marine Corps Base Hawaii; habitat 
improvement and species management at Marine Corps Base Camp Pendleton, 
Naval Base Coronado, Naval Base Ventura County Point Mugu, and Naval 
Weapons Station Seal Beach in California; and shoreline stabilization 
near Marine Corps Base Quantico, Virginia.
    Outside our fence lines, the communities that host our Navy and 
Marine Corps installations continue to utilize the Defense Community 
Infrastructure Pilot (DCIP) program to fund community infrastructure 
projects that benefit local installations, enable the DON's warfighting 
mission, and provide support to our service members and their families. 
Using 2022 DCIP grant funds, Onslow County in North Carolina will 
upgrade a runway at a local airport to benefit travel in southeastern 
North Carolina, including Marine Corps Base Camp Lejeune, Marine Corps 
Air Station New River, and Marine Corps Air Station Cherry Point. In 
Florida, a new water main will improve capacity and pressure for not 
only for Naval Station Mayport, but also the surrounding community 
where many of our Sailors, Marines, civilians and their families live.
    Finally, the city of Newport News in Virginia will undertake a $15 
million project at the Harwood's Mill Reservoir Dam to increase flood 
protection for the entire community and ensure a reliable water supply 
to Naval Weapons Station Yorktown.
    We continue to work with our partners across the Federal 
Government, the State of Hawaii, and Congress to close the Red Hill 
Bulk Fuel Storage Facility and remediate the effects of the 2021 spill. 
We are committed to doing what it takes to address the concerns of 
service members, their families, and the people of Hawaii. As I've said 
before, we rebuild trust one day at a time, one action at a time. Aging 
infrastructure such as that at Red Hill is a challenge we face at the 
national level, and we appreciate Congress's support and partnership as 
we increase our focus on revitalizing the shore infrastructure our Navy 
and Marines Corps rely upon.
Joint Force and Government
    The Department of the Navy is committed to providing the right mix 
of capabilities and remaining dominant against threats defined in the 
National Defense Strategy. Across both Services and throughout the DON, 
PB24 will invest in capabilities for maritime dominance. Successful 
implementation of the concepts within the Navigation Plan and Force 
Design 2030 will be pursued through a unified, integrated effort at 
every echelon. But our fully integrated naval force is only part of the 
formidable Joint Force team that stands united in the protection of the 
American people. Collaboration between military departments and with 
the interagency is critical to the defense of the United States.
    We are constantly seeking opportunities to maximize the combined 
efficiency and effectiveness of our Navy and Marine Corps in 
cooperation with the Army, Air Force, and Space Force. For example, we 
continue to work with our fellow Services on critical advanced research 
programs including hypersonic weapons. And worldwide, the Joint Strike 
Fighter program is yielding unprecedented reach and agility for the 
entire Joint Force.
    The Department of the Navy, as a forward-deployed force, is a key 
contributor to Integrated Deterrence as our daily interactions with 
allies, partners, and potential adversaries impact diplomatic, 
economic, and intelligence equities in addition to the obvious military 
impacts.
    Our most significant contribution as a military department is 
America's naval forces. The combat-credible forces of the Marine Corps 
and the Navy are unique as America's most timely, flexible, and 
forward-deployed force across the full spectrum of challenges--from 
naval diplomacy to strategic deterrence, resource competition, crisis, 
and conflict. Our allies and partners as well as our potential 
adversaries see these forces conducting forward operations and 
training, alongside partner nations. This constant forward presence 
engenders trust through episodic engagements as well as urgent response 
in the event of a national emergency.
    The iconic presence of Marines in our embassies is just one highly 
visible way the Department of the Navy supports the State Department 
and whole-of-government activities. Behind the scenes, military 
attaches strengthen our bonds with international partners as they 
facilitate and coordinate activities, from small-scale personnel 
exchanges to large-scale multi-lateral military exercises.
Allies and Partners
    Over the past 18 months, the Department of the Navy has been fully 
committed to the multi- phased, commitments-based process, known as the 
Australia--United Kingdom--United States Partnership (AUKUS) to 
facilitate the development of the optimal pathway for Australia's 
acquisition of conventionally-armed nuclear-powered submarines, which 
will contribute to maintaining peace and stability in the Indo-Pacific 
region by enhancing deterrence. As part of this initiative, Australian 
sailors will embed on U.S. SSNs and the U.S. Navy will increase SSN 
port visits to Australia beginning this year. Additionally, as early as 
2027, the Navy plans to rotate up to four U.S. Virginia-class 
submarines to HMAS Stirling near Perth, an initiative we are calling 
``Submarine Rotational Force--West (SRF-W; ``Surf West''). Beginning in 
the early 2030s, pending statutory authority, we intend to sell 
Australia at least three Virginia-class SSNs, and potentially an 
additional two more if needed. The AUKUS partners will begin delivering 
the trilaterally-developed SSN-AUKUS in the late 2030s. The cost 
sharing through the different phases of AUKUS will be fair, 
transparent, and proportional--with the United States and Australia 
making investments to upgrade the U.S. submarine industrial base. We 
will continue to lead and advance this effort as directed by the 
President and Secretary of Defense.
    As the world has seen over the last year with Russia's unprovoked 
and indefensible invasion of Ukraine, and the strengthened resolve and 
solidarity of NATO and like-minded nations around the world, the value 
of allies and partners cannot be overstated; the global landscape 
offers a stark contrast between those countries with strong 
international partnerships and those who are isolated due to their 
antithetical stance vis-a-vis the rules-based international order. 
Globally, we have strengthened our relationships with like-minded 
maritime nations, deepening interoperability in order to enable mutual 
action to address shared challenges.
    As we emerged from the COVID pandemic and returned to our historic 
operating pace, we have looked for ways to expand cooperative 
deployments and operations around the world. Our recent growth in 
cooperative efforts with our partners has been focused on increasing 
interoperability and moving towards interchangeability with allied and 
partner maritime forces. In every international engagement, I have 
consistently heard the same message from our allies and partners: ``We 
want to do more with the U.S. Navy and Marine Corps''--a signal that we 
are the partner of choice across the globe.
    In January 2023, the United States and Japan reaffirmed the 
necessity to optimize our force posture and enhance response capability 
through a readjustment in the laydown of U.S. Forces in Japan. This 
will provide for stationing of the 12th Marine Littoral Regiment in 
Japan by 2025, and with it, advanced intelligence, surveillance, and 
reconnaissance capabilities as well as anti-ship and transportation 
capabilities.
    In a demonstration of the capabilities and resolve of NATO, the USS 
George H.W. Bush Carrier Strike Group recently completed Exercise 
Neptune Strike 22.2., operating under the command of Striking Forces 
NATO (STRIKFORNATO), and flexing the capabilities of all-domain warfare 
at a critical time.
    During the same period, we employed the USS Gerald R. Ford Carrier 
Strike Group for the first time with our NATO allies during Exercise 
Silent Wolverine. The exercise was designed to test the carrier's 
capabilities through integrated high-end naval warfare scenarios, 
leading to its inaugural deployment this year. The USS Kearsarge 
Amphibious Ready Group and 22 Marine Expeditionary Unit provided 
persistent presence in the Baltic Sea. This demonstration of capability 
exemplifies the unparalleled power of alliance and partnerships.
    Last year, I personally witnessed the power of partnership during 
RIMPAC 2022, when forces from 26 nations from nearly every continent 
converged at Pearl Harbor. We came together as capable, adaptive 
partners, and declared our commitment to work together, to grow our 
collective capability, and to nurture and enhance relationships that 
are critical to ensuring the safety of the sea lanes and the security 
of the world's interconnected oceans.
    Strengthening maritime dominance requires us to rapidly field the 
concepts and capabilities that create advantage relative to our pacing 
threat with the sustainment necessary to generate integrated, all-
domain naval power.
    Alongside our Filipino allies, Marines from 3rd Marine Littoral 
Regiment completed the largest iteration of Exercise Balikatan last 
April. This was the initial operational employment of 3rd Marine 
Littoral Regiment, and they used it to flex their capability to deploy 
from Hawaii and carry out amphibious landings in northern Luzon, 
ultimately enabling combined coastal defense training. This exercise 
not only strengthened the bond with our Filipino partners but tested 
small, distributed, and austere encampments, resulting in refinements 
of the concepts integral to the Marine Littoral Regiment.
    This month, Marines and Sailors with the 31st Marine Expeditionary 
Unit completed the first Japan-based Iron Fist exercise, which 
increased interoperability and strengthened relationships between the 
DON and the Japan Self-Defense Forces, and demonstrated the commitment 
of U.S. and Japan forces to maintain a free and open Indo-Pacific.
    Last November I had the chance to visit my Indian counterparts in 
an effort to drive forward high-end navy-to-navy cooperation to address 
challenges in the undersea warfare domain. While we continue to advance 
thinking on concepts and technology, we are furthering our defense 
information sharing and exercising in ways that are relevant to our 
shared goals, as exemplified by the USS Ronald Reagan Carrier Strike 
Group's participation in Exercise Malabar with India, Australia, and 
Japan, and which included high-end tactical anti-submarine warfare.
    While in Brazil, I had the privilege of presiding over the opening 
ceremony of the longest-running maritime exercise, UNITAS, and took the 
opportunity to spotlight the importance of partnerships in our own 
hemisphere and the Atlantic basin. It was a particular honor to meet 
with the Cameroonian Head of Navy and visit his two ships, which had 
conducted their first-ever trans-Atlantic voyage in order to 
participate in the exercise. Their pride, determination, and dedication 
to being a part of this U.S.-led multinational exercise were evident as 
they celebrated this exceptional achievement. Strengthening our 
relationships across Africa and the Western Hemisphere is an important 
aspect of furthering the National Defense Strategy as the PRC endeavors 
to extend its influence over our neighbors and African partners.
    One of the most significant detriments to local economies is 
illegal, unreported, and unregulated (IUU) fishing. I have been keenly 
interested in this complex challenge, and we are working with our 
partners across the globe to increase maritime domain awareness, 
information sharing, and information operations to counter this 
scourge. Massive fishing fleets from countries such as the PRC prey on 
countries with weak capabilities to protect their exclusive economic 
zones. Closely linked to the IUU fishing problem is a country's ability 
to effectively conduct maritime domain awareness.
    As the Navy and Marine Corps team works tirelessly to ensure our 
forward presence, we are in an intense global competition with the PRC 
for strategic access and influence. That competition is particularly 
concentrated in the Indo-Pacific. To prevail, we will continue to 
innovate, leveraging our naval diplomacy to maximum advantage. 
Improving ports and enabling enhanced maritime patrolling capacity from 
modern airfields serves U.S. security interests as well as island 
nations' interests.
    Combined, these critical enablers of U.S. influence, posture, and 
readiness in the Indo-Pacific are also the core components of the DoD's 
ability to deliver humanitarian assistance and disaster relief in the 
region as the catastrophic consequences of climate change accelerate. A 
resilient, distributed posture to meet our operational needs and 
outcompeting the PRC for strategic access and influence in the Indo-
Pacific go hand in hand.
    PB24 will strengthen global alliances and partnerships with funding 
for joint operations and exercises around the world, including CARAT, 
Malabar, and Balikatan in the Indo-Pacific; NATO operations in the 
Mediterranean; and exercises like UNITAS in our own hemisphere.
    We will continue to foster opportunities for Sailors, Marines, and 
DON civilians to train, learn, and operate side-by side with their 
counterparts in partner and allied forces. We will work on 
operationally integrating with our allies and partners through shared 
warfighting concepts, continually campaigning forward to deter 
adversaries and protect the rules-based international order.
    Our Sailors, Marines and civilians are warrior-diplomats for our 
Nation. Their professionalism and dedication promote the connections 
that strengthen our collective security and cultivate shared ideals 
that send the message that the United States is a friend worth having.
                                closing
    The United States Navy and Marine Corps Team is on the front lines 
of defending the free and open rules-based international order against 
those who would cast us into a new dark age defined by the principle of 
``might makes right.''
    I have a sacred obligation to Congress and to the American people 
to ensure that our Navy and Marine Corps are always prepared to defend 
those liberties, those non-negotiable American values wherever the 
Nation's interests may be threatened. The Navy and Marine Corps remain, 
after all, this Nation's single most versatile instrument of national 
power.
    For this, I am grateful for your sustained, bipartisan support of a 
strong Navy and Marine Corps. I look forward to working with old 
friends and new partners in Congress to advance the Nation's security 
with a Navy and Marine Corps supremely able, first and foremost, to 
deter all potential adversaries, and if called upon to fight and win 
our Nation's wars.

    Senator Tester. Thank you, Secretary Del Toro.
    Next, we have, Admiral Gilday.
STATEMENT OF ADMIRAL MICHAEL M. GILDAY, CHIEF OF NAVAL 
            OPERATIONS
    Admiral Gilday. Chairman Tester, Vice Chair Collins, 
distinguished Members of the Committee; Good morning, and thank 
you for the opportunity to appear today with Secretary Del Toro 
and General Berger.
    For the past 77 years the United States Navy has been an 
anchor of world stability; deterring war, upholding 
international law, and assuring access to the seas. Today, our 
Navy's role has never been more expansive or consequential.
    This past year, our Navy and Marine Corps team executed 
more than 22,000 steaming hours, and nearly one million flying 
hours. We participated in roughly 100 exercises with allies and 
partners across the globe, and at this moment we have nearly 
100 ships at sea, reassuring America's allies and partners that 
we stand the watch alongside them, and reminding potential 
adversaries that we seek to preserve peace, but we are prepared 
for any fight.
    The United States has always been a maritime Nation, to 
preserve our security and prosperity America needs a combat-
credible Naval Force to project our interest in peace and to 
prevail in war, not just today, but for the long run. Our 
fiscal year 2024 budget request remains consistent with the 
Navy's enduring priorities.
    And to your point, Mr. Chairman, about whether or not the 
taxpayers, are being consistent for the taxpayers in these 
investments, we are prioritizing readiness: First, with an 
emphasis on the sailors who empower everything that we do, 
ensuring that we are always combat ready.
    Second, we are modernizing our capabilities, ensuring that 
our forces today stay combat-ready, now and into the future in 
a rapidly changing world.
    Third, we are continuing to build our capacity ensuring 
that we have relevant lethal platforms to achieve warfighting 
advantage with a hybrid fleet of manned and unmanned platforms 
on, above, and below the sea.
    Our budget request reflects the Navy's commitment to 
deliver, and deploy, and maintain our fleet. It fully funds the 
Columbia-class submarine, as the Secretary stated, ensuring the 
on-time delivery of the most survivable leg of our Nation's 
strategic deterrent triad. It keeps our fleet ready to fight 
tonight dedicating the resources necessary to train, and to 
educate resilient sailors that can out-think, that can out-
decide, and that can out-fight any potential adversary.
    It funds private and public sector ship maintenance to 100 
percent, increasing capacity and retaining highly skilled labor 
to get our ships back to sea faster, with full magazines and 
spare parts in their store rooms, to be prepared for any 
contingency.
    It invests in modernizing our fleet, procuring weapons with 
range and speed, along with integrated systems to improve fleet 
survivability in a resilient, cyber secure network 
infrastructure. And then invest in capable capacity, building 
towards a larger distributed hybrid fleet, fielding a ready 
fleet today while modernizing for the future.
    Our competitors are investing heavily in warfighting 
capabilities of their own, and the oceans we are operating in 
are growing more lethal and more contested every single day. 
Failing to modernize to meet those threats would erode 
America's maritime superiority, at a time when the command of 
the seas will determine the balance of power for the rest of 
this century.
    This means we can no longer afford to maintain ships 
designed for a bygone era, especially at the expense of 
readiness, modernization, and new platforms, and buying new 
ships most relevant to today's fight.
    America cannot afford a hollow force. We have been there 
before and we have seen tragic results. It is a mistake we must 
never repeat. Ships, submarines, and aircrafts are, no doubt, 
expensive instruments of national power, as are the costs of 
maintaining them. But history shows that without a powerful 
Navy the price tag could be much higher.
    Thank you again for inviting me to testify. And I look 
forward to answering your questions.
    [The statement follows:]
            Prepared Statement of Admiral Michael M. Gilday
    Chairman Tester, Ranking Member Collins, and distinguished members 
of the Committee, thank you for the opportunity to testify on the 
posture of the United States Navy. On behalf of every American Sailor, 
Navy civilian, and their families, thank you for your continued 
leadership and support.
    With increased funding in the 2023 Defense Appropriations Act, 
Congress has provided the means for the U.S. Navy to deliver the fleet 
our Nation needs in support of the 2022 National Defense Strategy. This 
investment will help us turn the corner on readiness to meet strategic 
competitors in peace and war, ensuring our ability to maintain free and 
open oceans and the international rules-based order. Moreover, 
consistent, steady funding is necessary to provide a clear signal to 
our industry partners, especially our shipbuilders, on the way ahead. 
This statement will detail where we are--and what we must do--to ensure 
our maritime dominance deep into this century.
    Flanked by two oceans, the United States has always been a maritime 
nation. The seas remain the lifeblood of our economy, our national 
security, and, consequentially, our way of life. Our livelihood depends 
upon free, open, and secure maritime trade. A strong naval force is 
essential to U.S. national security and long-term economic health. The 
United States Navy has and will continue to serve as our Nation's 
primary instrument of sea control and power projection, ensuring our 
global maritime access during times of peace and war.
    From our humble beginnings with six wooden frigates, the 
composition of the U.S. Navy has steadily evolved to defend U.S. 
interests around the world and ensure American security. For the past 
247 years, the U.S. Navy has played a critical part in defending and 
advancing national policy. For the past 77 years, we have been an 
anchor of world stability by deterring war, upholding international 
law, and assuring access to the global maritime domain for our Nation, 
our Allies, and our partners.
    Today, our Navy's role has never been more expansive or 
consequential. We now face challengers who are attempting to rewrite 
the rules-based international order and reshape the world to meet their 
autocratic desires. The People's Republic of China (PRC) has 
aggressively modernized its militaries and fielded offensive 
warfighting capabilities at unprecedented speed and scale across all 
domains. These developments are not solely to support regional designs.
    They are for global ambitions. At the same time, Russia's 
unprovoked, full-scale invasion of Ukraine has triggered the largest 
conflict in Europe since the Second World War--with combat occurring on 
both land and sea. The future of the global order depends on the 
actions we take in this moment.
    Our Fiscal Year 2024 budget request remains consistent with the 
Navy's priorities. To meet the challenges of today while building the 
fleet of tomorrow, our Navy continues to prioritize readiness first--
with a special emphasis on the Sailors who empower everything we do. 
Next, we are focused on modernizing our capabilities. Then, we will 
continue to build the capacity of the fleet. Prioritized investments in 
people, technologies, and platforms ensure that we are ready to fight 
tonight, while making progress on the capabilities we need to maintain 
our combat credibility far into the future. To enable Distributed 
Maritime Operations (DMO), we must generate cost-effective capacity to 
achieve warfighting advantage with acceptable risk. We have already 
begun building the future fleet--a hybrid force enhanced by unmanned 
platforms operating on, above, and below the waterline.
                    navy's unique peacetime mission
    With the passage of the fiscal year 2023 National Defense 
Authorization Act, the United States Navy has a new mission statement. 
The old mission statement, articulated in Title 10 of U.S. Code, called 
for the Navy to be ``organized, trained and equipped primarily for 
prompt and sustained combat.'' Now, Congress has additionally charged 
the Navy with supporting ``the peacetime promotion of the national 
security interests and prosperity of the United States.''
    Though the mission statement is new, the mission is not. U.S. naval 
power has always played a unique and vital role in promoting our 
Nation's security and prosperity during peacetime. The law now 
accurately reflects our Navy's contributions throughout the history of 
our Republic.
    Whether providing humanitarian assistance and disaster relief, 
countering sea-based illicit activity, safeguarding global shipping 
lanes, saving lives, or deterring conflict, Sailors advance U.S. 
interests every day. Constantly on call, our Sailors are forward 
deployed in submarines, ships, and aircraft, standing guard with our 
Allies and partners around the world. In part, the change to Title 10 
acknowledges our historic mission and recognizes that peacetime 
activities can produce strategic results. However, the change does more 
than describe what the Navy has always done. It also highlights the 
need to build a healthy, ready naval force that will safeguard our 
Nation--one that is properly sized, equipped, and trained for the vast 
array of operations needed to preserve peace and prevail in 
competition, crisis, and conflict.
    Of all the peacetime missions that promote security and prosperity, 
deterring conflict is foremost. Our Sailors are constantly present, 
operating, and training, often in parts of the world that may become 
hotspots. We are America's away team, deployed in peace and ready to 
answer the call if we are needed in war.
    During peacetime, the U.S. Navy must continue strengthening and 
expanding our network of Allies and partners. Whether in day-to-day 
competition, crisis, or conflict, Allies and partners add significant 
defense capabilities and resources. They provide integrated deterrence 
against adversaries by expanding access to maritime infrastructure 
through cost-effective, secure, reliable, and geographically 
distributed bases, and provide information in support of distributed 
operations.
    Thanks to support from Congress, we are starting to rebuild our 
fleet following two decades of ground wars. Still, rebuilding will not 
happen overnight. It will require years of stable and predictable 
funding and a long-range plan that incentivizes our industry partners 
to invest in the infrastructure and capacity needed to support our 
growing fleet.
    While most combat forces generally only meet in times of war, 
navies are in contact with potential adversaries every single day. We 
are forward deployed around the globe, sailing waters in close 
proximity to other navies, coast guards, and maritime militias, 
contesting threats to the rules-based international order and ensuring 
the world's waterways are free and open for all. In this critical 
decade, the challenges we face are mounting.
           the maritime challenges to u.s. national security
    The United States continues to face pacing, acute, and persistent 
challenges to our national security. Above all, our pacing challenge is 
the PRC. As we have witnessed over the past several decades, the PRC 
seeks to undermine U.S. alliances and security partnerships in the 
Indo-Pacific region, and leverage its growing capabilities, including 
its economic influence and the People's Liberation Army's (PLA) growing 
strength and military footprint, to coerce its neighbors and threaten 
their interests. In only two decades, the PRC has tripled the size of 
its Navy--and is on pace to quadruple to over 400 ships by 2030. 
Additionally, it has expanded its strategic nuclear capacity and 
capability, advanced its cyber and space capabilities, and constructed 
a system of sophisticated sensors and long-range precision weapons to 
intimidate neighbors, challenge free and open access to the seas, and 
hold U.S. forces at risk.
    The PRC seeks to deny U.S. and allied forces access within the 
First Island Chain and beyond. Advances in missile technology by the 
People's Liberation Army (PLA) Rocket Force have provided the PRC with 
the offensive means of striking U.S. and Allied forces. As the PRC has 
attempted to displace the U.S. Navy from the waters in the Western 
Pacific, the PLA Navy, alongside the People's Armed Forces Maritime 
Militia (PAFMM) and China Coast Guard (CCG), has increasingly conducted 
aggressive operations--actions just short of war--to intimidate 
neighbors and force nations to submit to Chinese territorial claims. 
Through these ``gray zone'' operations, the PRC has staked illegal 
maritime claims to offshore resources that threaten the peace, 
prosperity, and ecological stability of the world's oceans. Without 
question, the PRC's investments in offensive warfighting systems--
across all domains--are aimed at the heart of America's maritime power.
    Russia remains an acute threat as its unprovoked war of aggression 
against Ukraine continues. Although the Kremlin predicted Ukraine would 
fall within days and NATO would fracture, the citizens of Ukraine have 
successfully contested Russian forces on land and sea, bolstered by the 
support of the United States and other like-minded nations. This 
conflict has reminded Russia, and would-be aggressors everywhere, of 
the power and importance of Allies and partners. Along with our Allies, 
we draw inspiration and strength from the tenacity and courage of the 
Ukrainian people, and we remain resolute in our responsibility to 
uphold the rules-based international order, and every nation's inherent 
right to freedom and self-determination.
    In its most provocative year of missile launches ever, North Korea 
has been a persistent threat on the Korean Peninsula as it continues to 
expand its nuclear and missile capability to threaten the U.S. 
homeland, deployed U.S. forces, and the Republic of Korea (ROK) and 
Japan. With forces on the peninsula and vessels in the surrounding 
seas, the U.S. Navy and the Joint Force stand with our ROK Allies. 
During my visit to the ROK this past November, I confirmed that our 
alliance and friendship remain strong. We left no doubt that our 
commitment to extended deterrence for the Korean Peninsula is ironclad.
    Iran, beyond its nuclear advancements, has been building and 
exporting missile systems and unmanned aircraft, most notably to 
support Russia's brutal campaign in Ukraine. All the while, Iran is 
advancing maritime capabilities that threaten maritime chokepoints, 
putting at risk the free flow of energy resources and international 
commerce. Further, Iran is undermining regional stability supporting 
terrorist groups and military proxies, employing its own paramilitary 
forces, engaging in military provocations, and conducting malicious 
cyber and information operations. Global terrorist groups have had 
their capabilities degraded, but some may be able to reconstitute them 
in short order, which will require monitoring indications and warning 
against this threat.
    Whether they are pacing, acute, or persistent challengers, our 
adversaries are focused on acquiring sophisticated technologies that 
are changing the battlespace. From drone technologies to robust 
networks of sensors, our adversaries--both state- and non-state-
sponsored--have the ability to harm our national interests in myriad 
ways. In the coming years, developments in new technologies such as 
artificial intelligence (AI), quantum computing, and additive 
manufacturing will continue to disrupt the way war is conducted.
   contributions to the joint force, nested in the national defense 
                                strategy
    A combat-credible U.S. Navy-- forward-deployed and integrated with 
all elements of national power--remains our Nation's most potent, 
flexible, and versatile instrument of military influence. Together with 
the U.S. Marine Corps and U.S. Coast Guard, our Navy must deploy 
forward and campaign with a ready, capable, combat-credible fleet. 
Decisive naval power is a critical component of the Joint Force.
    This past July, I released an updated Navigation Plan, aligning our 
priorities of Readiness, Capabilities, and Capacity to the 2022 
National Defense Strategy (NDS). The U.S. Navy remains committed to (1) 
strengthening our Nation's deterrence, (2) campaigning through forward 
presence, and (3) building enduring warfighting advantages. In this 
rapidly changing world, a formidable naval force is crucial in 
effectively implementing the NDS and the 2022 National Security 
Strategy (NSS). The Navy's FY24 budget request will deliver on our 
commitments to the Joint Force by aligning our planning, resources, and 
investments with national policy objectives:
    Strengthening Deterrence. Integrated deterrence--the cornerstone of 
the 2022 NDS and a strategic focus of the 2022 NSS--is how the 
Department of Defense (DoD) aligns DoD's policies, investments, and 
activities to sustain and strengthen deterrence. It is tailored to 
specific competitors and coordinated to maximum effect inside and 
outside of the DoD. Integrated deterrence leverages the Joint Force's 
combined capabilities in all domains. It emphasizes a unity of effort 
throughout the U.S. Government as the Department of Defense (DoD) 
coordinates with and supports the State Department, Intelligence 
Community, and other government agencies. Additionally, integrated 
deterrence promotes the importance of working with our Allies and 
partners to uphold the international rules-based order throughout the 
globe. Neither the DoD nor the public sector holds a monopoly on 
delivering deterrent effects--thus, we must work with America's vast 
and innovative private sector to ensure peace.
    A secure and reliable strategic nuclear deterrent backstops 
integrated deterrence. Our Navy operates and maintains the most 
survivable leg of the Nation's nuclear triad, representing 
approximately 70 percent of America's treaty-accountable, nuclear 
arsenal. Navy's FY24 budget requests the resources to replace the 14 
Ohio-class submarines with the more capable Columbia- class and 
continue development of the second life extension of the TRIDENT II D5 
missile, as well as refresh supporting infrastructure and modernize our 
nuclear command, control, and communications systems. Our Ohio-class 
submarines have been patrolling the oceans on deterrent missions for 42 
years. This once-in-a-generation overhaul of our ballistic missile 
submarine force comes with a massive price tag, but it is a must-pay 
bill for the Nation so that we maintain America's assured second-strike 
capability.
    In addition to our nuclear forces, our combat-credible conventional 
naval forces reinforce deterrence. These forces deploy globally to 
protect American interests across the spectrum of conflict. Operating 
far from U.S. shores, naval forces provide the first physical line of 
U.S. Homeland Defense, preventing potential adversaries from using the 
seas to threaten the American homeland. Naval Forces are the only 
element of national power that can fulfill this role.
    To deter war, we must continue to work more seamlessly with our 
Allies and partners across all domains and by integrating key 
technologies and other instruments of national power. Among other 
initiatives, we have been working hard to bolster the trilateral 
security partnership of Australia, the United Kingdom, and the United 
States, known as AUKUS. AUKUS is a generational opportunity to 
reinforce the collective defense and prosperity of the United States 
and two vital Allies who always stand beside us. With the overarching 
objective of promoting peace and stability in the Indo-Pacific, through 
our efforts to enable Australia to acquire a conventionally-armed, 
nuclear-powered submarine capability, AUKUS provides a unique 
opportunity to strengthen the U.S. Submarine Industrial Base while 
enhancing two of our Allies' military capabilities. This trilateral 
security partnership also provides an opportunity to set a historic 
precedent in naval nuclear propulsion, setting the highest standards of 
nuclear nonproliferation. To successfully compete with the PRC and 
ensure a free and open Indo-Pacific region, we will continue to find 
ways to integrate our efforts with our robust network of Allies and 
partners.
    The naval service's ability to control the seas and project power 
has underpinned America's national defense and economic vitality for 
generations. Sea control provides freedom of maneuver to the Joint 
Force and our Allies while denying it to our adversaries in conflict. 
Our ability to project power deters aggression by convincing rivals 
they have no viable means of achieving their objectives through force. 
Should conflict arise, forward deployed Sailors and Marines stand ready 
to fight alongside the rest of the Joint Force, our Allies, and our 
partners to deny enemy objectives, destroy enemy forces, and compel war 
termination.
    Forward Presence and Campaigning. Naval forces provide the United 
States strategic advantages in position, influence, and flexibility, 
independent of access to overseas land bases. Our forward posture 
guarantees our Nation the ability to respond to crisis, blunt gray-zone 
activities, and preserve a stable and secure global maritime order. The 
Navy's global maneuverability supports diplomacy, reassures our Allies, 
and generates favorable influence and access in critical regions.
    Alliances and partnerships remain the United States' greatest 
strategic advantage. Our Allies and partners recognize U.S. naval 
forces as their on-scene partner of choice for building combined 
maritime strength. In turn, the U.S. Navy recognizes the value of 
America's unmatched network. Having met with over 40 heads of navies 
around the world over the past year, I have witnessed the power of 
personal connections to bolster our collective strength. Relationships 
forged on the seas for over seven decades have been the bedrock of the 
free and open, international, rules-based order. And they will continue 
to be so.
    Our adversaries do not have the same reinforcing strength and 
global backing that America shares with like-minded nations. In turn, 
the United States provides maritime power that no other country can. 
The U.S. Navy also brings to NATO an ability to assemble and further 
the interoperable naval combat power of Allies and partners and enable 
continued deterrence in response to Russia's war on Ukraine. We also 
leverage the strength of our allies and partners as part of our 
integrated deterrence of the PRC as well. We are constantly 
strengthening interoperability, sharing maritime domain awareness, and 
helping to build capacity for resilient, integrated logistics for our 
allies and partners.
    Across the spectrum of conflict, the U.S. Navy operates forward, 
exposing and contesting malign activities of our adversaries. The U.S. 
Navy remains the partner of choice not just because of our strength, 
but also because of our respect for the rule of law.
    Building Enduring Warfighting Advantages. To maintain our 
warfighting advantage at sea, America needs a larger and more capable 
Navy. Faced with competitors and emerging disruptive technologies, we 
must become more agile in developing and delivering our future force. 
Above all, our naval forces must be combat credible--measured by our 
ability to deliver lethal effects in contested and persistently 
surveilled battlespaces.
    In collaboration with the other U.S. Armed Services, we have 
prioritized the future capabilities we need to employ our warfighting 
concepts and maintain credible deterrence. As we build the future 
fleet, we group these critical capabilities into six overarching Force 
Design Imperatives, as I described in Navigation Plan 2022.
    Expand Distance. Long-range precision fires across all domains and 
platforms with greater reach enable naval forces to strike hostile 
targets while increasing our own survivability.
    Leverage Deception. Deceptive measures--including stealth, 
concealment and maneuver, emissions control, and electronic warfare--
degrade enemy surveillance and increase adversary uncertainty, enabling 
naval forces to operate effectively in contested battlespaces.
    Harden Defense. Integrating directed energy with hard-kill and 
soft-kill defensive systems disrupts attacks and keeps naval forces 
survivable when targeted by adversaries.
    Increase Distribution. Distributing forces geographically and in 
all domains enables them to threaten an adversary from multiple attack 
axes. Smaller, lethal, and less costly platforms--including those 
manned, unmanned, and optionally manned--further complicate threat 
targeting, generate confusion, and impose dilemmas for our adversaries.
    Ensure Delivery. Resilient logistics connecting the foundry to the 
fleet--enabled by secure communications and information technology--
refuel, rearm, resupply, repair, and revive distributed naval forces 
down to the last tactical mile.
    Generate Decision Advantage. Naval forces will out-sense, out-
decide, and out-fight any adversary by accelerating our decision cycles 
with secure, survivable, and resilient networks, accurate data, and the 
assistance of AI-enabled decision aids. Connecting sensors, weapons, 
and decision-makers across all domains enables naval forces to mass 
firepower and influence without massing forces.
    Together, these six Force Design Imperatives enable DMO and other 
Joint warfighting concepts. These imperatives also define the 
requirements for the surface, subsurface, aviation, and information 
platforms that our fleet needs and will guide our priority investments 
going forward.
                          u.s. navy priorities
    Navy's FY24 budget request delivers a combat-credible Navy designed 
to deter and, if necessary, prevail in conflict. To deliver that fleet 
today, tomorrow, and in the future, we will continue to focus on three 
priorities: Readiness, Capabilities, and Capacity.
    Our central challenge is balancing our investments in the future 
fleet while sustaining a forward posture that keeps America safe and 
prosperous. It is increasingly costly to operate and maintain our 
ships. We appreciate Congress' support with additional funding in FY23 
to mitigate the effects of inflation. We will continue to need 
congressional support of the robust budget in FY24.
    In today's fiscal environment, we face the enormous challenge of 
simultaneously recapitalizing our strategic nuclear deterrent, century-
old dry dock facilities, and strategic sealift capacity, while 
investing in weapons and platforms we will need in a future fight. Our 
focus on Readiness, modernizing Capabilities, and building Capacity is 
a result of the threats facing our Nation today and the challenges we 
face in the decades to come. To defend our homeland and protect our 
national interests, we cannot field a fleet larger than we can sustain. 
Hollow fleets cannot fight tonight, and sacrificing current readiness 
for future capabilities or increased ship counts would severely 
constrain our Navy's ability to respond in crisis or conflict. Our 
Nation needs a larger, more capable, more lethal fleet--but we must 
build the future fleet at a sustainable rate; not at the expense of 
warfighters that must be ready to stand the watch tonight.
                               readiness
    Readiness remains our top priority. Forward-deployed, combat-
credible forces deter conflict and protect the free and open system 
underpinning American security and prosperity.
    Across the Navy, from our shipyards and aviation depots, to our 
global network of bases and stations, to the steaming and flying hours 
our Sailors need to hone their skills, we are focused on readiness. Our 
FY24 budget request dedicates the resources necessary to train and 
educate resilient Sailors that can out-think, out-decide, and out-fight 
any potential adversary. Today's security environment demands ships, 
aircraft, and submarines, as well as expeditionary, information, and 
special warfare forces that are ready to fight and win.
    The Navy is committed to accelerating our warfighting advantage by 
unleashing our people, and our ``Get Real, Get Better'' call to action 
empowers our warfighters to find and fix problems, and to innovate at 
every level, from the deckplates to our senior leaders. While our Navy 
team remains the most capable maritime force in the world, we have 
identified unacceptable variability in our performance. To address 
this, we must standardize and incentivize best practices, leadership 
behaviors, and problem-solving techniques throughout the force to 
reduce this variability and unleash our full potential. The essential 
element is fostering a healthy ecosystem--a culture--that assesses, 
corrects, and innovates better than the opposition, accelerating our 
warfighting advantage in this critical decade.
    This past year, the Navy-Marine Corps team executed more than 
22,000 steaming days and nearly one million flying hours. Additionally, 
the Navy participated in roughly 100 exercises with Allies and partners 
across the globe, strengthening America's integrated deterrence. We are 
planning for similarly robust level of exercises and engagement efforts 
over the next year and in years ahead. As our naval forces remain in 
high demand, our budget request emphasizes critical aspects of our 
readiness. Our Sailors stand ready all over the world, from Sasebo to 
San Diego and from Norfolk to Naples, as our Navy keeps the oceans open 
and free.
    Since the invasion of Ukraine, the Navy has had a continuous 
Carrier Strike Group presence in the Mediterranean, from the extended 
deployment of the USS Harry S. Truman (CVN 75), to the current 
deployment of the USS George H. W. Bush (CVN 77) Carrier Strike Group. 
Furthermore, the Navy provided early support to European Command 
operations with surge deployments of additional forces, to include six 
destroyers, two P-8 aircraft, two submarines, and a destroyer squadron 
staff. Our Sailors have been present where it matters, when it matters. 
Additionally, America's first-in-class aircraft carrier USS Gerald R. 
Ford (CVN 78) returned to Naval Station Norfolk in November after 
successfully completing its inaugural deployment in the Atlantic, 
conducting exercises, strategic engagements, and port visits with 
Allies and partners.
    We have deepened our integration with the U.S. Marine Corps with 
the establishment of Task Force 61/2 under Naval Forces Europe. This 
effort streamlined command and control of Navy and Marine Corps forces 
deployed to act as a deterrent and reinforce Alliance cohesion in the 
wake of Russia's invasion of Ukraine. We operationalized this cohesion 
with the deployment of the USS Kearsarge (LHD 3) Amphibious Readiness 
Group (ARG) with the 22nd Marine Expeditionary Unit (MEU) embarked. 
After the USS Kearsarge ARG-MEU deployment, the same team provided the 
core U.S. military command element that quickly established 
humanitarian support for Turkiye after the recent earthquake, utilizing 
the USS Hershel ``Woody'' Williams (ESB 4) to deliver disaster relief 
supplies for those affected by the earthquakes.
    To deliver forward presence and capability, our Navy continues to 
make progress improvements. For example, our aircraft depots are 
reducing the time it takes to conduct maintenance and return aircraft 
and engines back to the Fleet. Our PB24 request improves funding over 
FY23 enactment to sustain gains in our aircraft mission capable rates. 
Of note, in our aviation depot maintenance account, we increase funding 
for engines by $25 million, $9 million for components, and $1 million 
for our Depot Readiness Initiative. The PB24 request provides for the 
operation, maintenance and training of nine active Navy Carrier Air 
Wings, with the necessary flight hours and maintenance efforts to 
ensure their carrier and expeditionary strike groups are combat ready. 
The budget request aligns with our broader focus across Naval Aviation 
to increase lethality and readiness through process improvement and 
finding efficiencies at all organizational levels. As aviation costs--
across both the private and public sectors--continue to increase, the 
Navy recognizes the need to maintain a relentless drive to reap the 
full benefit of every investment dollar.
    Better maintenance performance has been a point of emphasis across 
the Navy. Repeatedly deploying combat-credible forces starts with 
performing high-quality maintenance on time and in full. Data-driven 
reforms such as Performance-to-Plan (P2P), the Naval Sustainment System 
(NSS), and other initiatives continue to improve maintenance processes 
and increase operational availability. Over the last several years, the 
aviation community has enhanced readiness as we maintained over the 
threshold Mission Capable Rate for most Type-Model-Series Aircraft, 
including the F/A-18E/F, E/A-18G, E-2D, P-8A, MH-60R, and MH-60S. This 
represents a significant improvement in Navy aircraft readiness, but we 
are not yet satisfied. We are getting real and getting better at 
applying what we have learned in aviation to our maintenance processes 
across the fleet.
    We continue to take a data-driven approach to improve surface ship 
and submarine maintenance, and we have seen positive results. However, 
unprecedented hiring challenges in a competitive job market, along with 
sustained, pandemic-induced delays and supply chain issues, have 
hampered progress for our public and private shipyards. Our budget 
request funds both private and public sector ship maintenance to 100 
percent, with a focus on increasing capacity and retaining highly 
skilled labor at the public shipyards. On top of those resources, we 
have invested considerably in other requirements essential to the 
material condition of our Fleet. Completing maintenance for our 
Virginia-class submarines and returning them to the Fleet on time is a 
critical warfighting priority. To that end, we added $541 million for 
Virginia-class materiel and spares to build depth and breadth in on-
hand inventory to help ensure that the necessary parts are available 
when required during maintenance availabilities.
    We remain committed to driving down costs wherever and whenever 
possible. In particular, P2P-driven improvements--such as the goal of 
awarding contracts 120 days before the start of a maintenance 
availability, level loading ports through better prediction of 
workload, better availability planning, and improved long-lead-time 
material acquisition--have provided effective solutions for readiness. 
Still, just like our industrial partners, our public shipyards face 
headwinds from workforce constraints, supply chain logjams, and 
increased costs due to inflation. We recognize the challenges, are not 
satisfied with current conditions, and will continue to invest in 
people, processes, and infrastructure to drive maintenance delays down 
to the only acceptable number--zero.
    Today, the average age of U.S. naval shipyard facilities and 
related infrastructure is 62 years, while the average dry dock age is 
approaching 100 years. The Shipyard Infrastructure Optimization Program 
(SIOP) provides a strategic roadmap for necessary investments in our 
public shipyard dry docks, capital equipment, and facilities. We are 
committed to taking a holistic, analytic approach to our critical shore 
infrastructure, making necessary investments to overhaul and optimize 
our Nation's shipyards through SIOP, and ensuring our shore 
establishment can support fleet operations. With $2.7 billion requested 
for SIOP in our budget request, the Navy can continue to upgrade and 
reconfigure our four public shipyards. This robust investment in the 
infrastructure and facilities of our four public shipyards is a vital 
effort to maintain and support upgrades of current and future 
submarines, aircraft carriers, and surface combatants.
    When fully executed, SIOP will deliver required dry dock repairs 
and system upgrades that will optimize workflow within the shipyards 
through significant changes to their physical layout. Moreover, the 
SIOP investments allow the public shipyards to recapitalize industrial 
plant equipment with modern technology that will substantially increase 
productivity and worker safety. As a result of previous SIOP 
investments, we have already completed construction of the Super Flood 
Basin at Portsmouth Naval Shipyard, construction of the Norfolk Naval 
Shipyard Production Training Facility, and design of Pearl Harbor Naval 
Shipyard Dry Dock 3 Replacement. We remain committed to working with 
Congress, DoD leadership, the shipyard workforce, impacted communities, 
regulators, and industry leaders as we continue to drive down 
maintenance delays. We acknowledge that submarines are still 
experiencing an unacceptable amount of delay days. Still, these 
investments in our four public shipyards are rebuilding the industrial 
base we need to maintain, upgrade, and return our ships, submarines and 
aircraft carriers back where they belong--deployed at sea.
    Maintenance delays and other readiness issues are not solely 
shipyard problems. To ensure fleet readiness, we must also reinforce 
and build resiliency into our supply chain. The Naval Sustainment 
System-Supply is driving end-to-end naval supply chain integration and 
reform as it streamlines the Navy's supply chains to increase 
readiness, decrease turn-around times, increase availability of spares, 
and reduce costs. The key to sustained success will come from the 
better use of data as we improve the resilience and responsiveness of 
the Naval Supply System.
    Our Sailors--and the civilian workforce that supports the fleet--
remain our most important weapon system. We must continue to evaluate 
and improve our capabilities to achieve our mission of attracting, 
developing, and managing talent to ensure our advantage at sea while 
providing exceptional service to our Sailors and their families. 
Notably, our budget request contains a substantial 5.2 percent pay 
raise for our military and civilians. From education and training to 
overall health and wellness, our budget invests in our Navy's most 
important asset--our people.
    To ensure the readiness of every operational unit, we are working 
hard to resolve the manpower problems that exist in the fleet. The 
solution begins with more robust recruiting and retention efforts. We 
also need to keep honing and optimizing personnel readiness metrics to 
include the experience and proficiency of Sailors to determine whether 
operational units are getting personnel with the right skills. The 
solution demands the continuous effort of leadership as we must 
continue to prioritize and care for our Sailors and Civilians.
    The Navy continues the Fleet Training Wholeness initiative to 
integrate live platforms and simulators across our strike groups. This 
initiative funds Live, Virtual, and Constructive (LVC) training at the 
unit and strike group levels. In the fleet, LVC continues to be a game-
changer in training our combat leaders. To date, fleet exercises like 
Large Scale Exercise-21 have connected eight Maritime Operations 
Centers, three Marine Force Operations Centers, eight Carrier and 
Expeditionary Strike Groups, and 30 ships into a single LVC training 
environment. As we look ahead to Large Scale Exercise-23, planned for 
August of this year, our expanding LVC capabilities will only increase 
the numbers of total participants--training both at-sea and pierside--
in an advanced, global scenario. From the pilot in the cockpit to the 
technician on the radar scope, LVC initiatives allow warfighters in all 
domains to train together at unprecedented levels of integration and 
complexity.
    Investments in training like the Ready Relevant Learning (RRL) 
initiative allow the Navy to continue to modernize Navy training and 
accelerate new delivery methods, supplementing our traditional brick-
and-mortar schoolhouses with modern, multi-media, multi-platform 
solutions. In addition, RRL will develop Career-Long Learning 
Continuums for Navy ratings to map out technical, professional, and 
leadership training requirements for apprentice, journeyman, and master 
level milestones in a Sailor's career. Career-Long Learning Continuum 
efforts will change the paradigms of Navy training by delivering Navy 
Enlisted Classification refresher training, performance support at the 
point of need coupled with journeyman and master core training to close 
not only existing capability gaps, but also enhance fleet readiness.
    To maintain a Fleet prepared to fight and win in long-term 
strategic competition, we continue to evaluate and improve our 
capability to attract, develop, and manage a talented and diverse 
workforce. Furthermore, at a time of intense talent competition and a 
rapidly evolving tactical and technical landscape, we are committed to 
modernizing and enhancing our entire talent management approach to 
recruit and retain the best and brightest. We are also reengineering 
advancement and assignment policies and practices to deliver a positive 
Sailor experience in terms of transparency, flexibility, and career-
driven choice, while attempting to balance Sailor personal and 
professional desires with Navy priorities.
    As part of this initiative, we released MyNavy Assignment (MNA)--an 
upgrade to our detailing platform providing visibility of all available 
billets as part of the Detailing Marketplace Assignment Policy (DMAP). 
MNA is a modern user interface providing Sailors the ability to 
bookmark billets of interest and provide amplifying information. DMAP 
continues to expand Sailors' options beyond the traditional enlisted 
career paths. It also rewards Sailors in sea-intensive ratings who stay 
on sea duty by offering assignment-based monetary incentives and early 
advancement opportunities for many Sailors who possess the requisite 
proficiency and experience. We expanded this practice and policy to 
supervisor positions through the Senior Enlisted Marketplace (SEM), 
beginning with Master Chief billets during FY 2024 advancement 
selection boards. We plan to expand to Senior Chief and Chief Petty 
Officer billets in the following 2 years to expand SEM to become the 
primary means of advancement.
    To accelerate those Sailors with the highest competence and 
strongest record, we expanded the Advancement-to-Position (A2P) program 
to fill priority supervisor and journeyman-level billets in eight 
additional ratings. A2P assists in filling critical gaps and rewards 
proven performers willing to take a difficult assignment with a spot 
promotion. We have also empowered commanding officers and officers-in-
charge to reward top performers with both an advancement and geographic 
stability allowed by a guaranteed follow-on three-year assignment at 
the same unit through the Command Advancement-to-Position program. 
These talent management initiatives support Sailor development, 
increase transparency, and generate Fleet-wide, warfighting readiness.
    With great sadness, we recognize that suicide rates increased in 
2022. Navy leaders and I have been traveling to ships, squadrons, and 
bases to listen, learn, and help. Every loss of life is a tragedy. As 
we continue to destigmatize mental health treatment, we are working to 
ensure every Member has access to the full continuum of mental health 
support. Our budget request expands mental health programs like Sailor 
Assistance and Intercept for Life, adds support for the 21st Century 
Sailor Office, and increases our Warrior Toughness Teams to help foster 
the mental, physical, and spiritual resilience of our forces. Along 
with these programs, we are working to ensure the availability of 
mental health and wellness support worldwide, including at specialty 
and primary care clinics, Navy installation counseling centers, on the 
waterfront, embedded within the fleet, and via virtual health 
platforms. Navy Chaplains and deployed resiliency counselors provide 
confidential counseling and are essential in ensuring the spiritual 
readiness and resiliency of the Naval Force. The Navy's budget request 
continues to resource quality care for our Sailors and support services 
for them and their families.
    Though we work in the profession of arms and accept the hazards 
that come with defending our country, all Sailors deserve to be treated 
with respect and dignity and should feel safe among their fellow 
shipmates. We are focused on creating a culture intolerant of sexual 
assault and are actively executing and evaluating the DoD Prevention 
Plan of Action. This is a comprehensive approach to promote prevention 
and reduce destructive personnel behaviors that lead to incidents. In 
addition, we are implementing the 82 Independent Review Commission 
(IRC) recommendations on accountability, prevention, climate, culture, 
and victim care. Sexual Assault Prevention and Response (SAPR) 
personnel remain fully available to Sailors worldwide to address 
victims' physical, mental, and emotional well-being, strengthen 
resilience, encourage reporting, and support victim recovery.
    Moreover, we do not accept any form of sexual harassment in our 
Navy. To ensure Sailors are heard, and to remove actual or perceived 
bias from the process, Navy Sexual Harassment investigations are now 
conducted by an independent third party assigned from outside the 
command. Likewise, the establishment of the Navy's Office of Special 
Trial Counsel ensures that accountability for sexual assault and sexual 
harassment, among other serious offenses, will be handled by an 
independent, specialized, and expert cadre of professionals. We listen, 
and we continue to learn. Our work to eliminate sexual assaults and 
remove sexual harassment from our fleet is not done.
    When Sailors are valued for their diverse talents and are treated 
with respect and dignity, they feel a sense of belonging to their teams 
and deliver a higher level of performance. With nearly 50 percent of 
recruitable talent coming from diverse populations, the Navy must be 
deliberate in advancing a culture where every person, regardless of 
their background, has the opportunity to succeed as a Sailor and where 
our Navy, in turn, benefits from our Sailors' talents, experiences, and 
insights. We have built on lessons learned from our findings in Task 
Force One Navy and have launched 53 Task Force One Navy initiatives, 
which remain on track for full implementation.
    All of our most pressing challenges require strong leadership. 
However, in the past year, as required to support the Space Force and 
by the FY17 National Defense Authorization Act, the Navy reduced more 
than 8 percent of its Flag Officer billets. These leadership reductions
    come at a high cost to maintaining operational readiness, impeding 
the Navy's efforts in an already challenging operational environment. 
At present, nearly one-third of the Navy's remaining 149 Flag Officer 
billets are double- or triple-hatted. These significant additional 
demands on leadership have ripple effects on readiness that negatively 
permeate across the fleet. To ensure our Navy can respond in crisis and 
win in conflict, we need Flag Officers with the focus and bandwidth to 
respond thoughtfully to the many challenges the Navy must navigate.
    In the Navy, we serve as families. To improve the lives of our 
Sailors and their families, we continue to focus on improving the 
consistency of Sailor pay, quality of unaccompanied housing, and other 
quality of life services. This includes installing broadband Internet 
services and wireless connectivity, improving berthing barge living 
conditions, improving crew parking and transportation, and ensuring an 
overall better experience for Sailors on the waterfront. Access to 
high-quality childcare is critical to supporting our warfighters. Our 
budget request supports increased staff salaries and adds two new Child 
Development Centers. Funding will also support adding full-day pre-
Kindergarten opportunities at overseas locations.
    We know that to retain our Force of talented and trained Sailors we 
must continue to invest in ways that benefit them and their families, 
while providing environments that make them feel valued and enable them 
to serve honorably. Continued funding to improve the lives of Sailors 
will be our greatest return on investment. Our people form the keel of 
our fleet's readiness and they will inspire the next generation to 
answer our Nation's call to serve.
                              capabilities
    The Navy's budget request makes substantial investments that will 
modernize our capabilities. The Navy prioritizes delivering 
capabilities that can achieve lethal and persistent effects inside 
adversary weapon engagement zones, generate advantages to create off-
ramps in crisis, and decisively win should crisis escalate into 
conflict. As the challenges in this era require the support and unified 
effort of Allies and partners, it is fundamental to our success that we 
develop compatible and complementary capabilities. To win now and in 
the future, we strive not only for interoperability with Allies and 
partners, but also for interchangeability across the combined force.
    As we build and deploy a Navy capable of deterring and, if 
necessary, defeating a strategic competitor, we must prioritize 
capabilities for DMO--our Navy's foundational operating concept for 
maintaining warfighting advantage in contested seas. The Navy's budget 
request focuses on delivering these critical capabilities. To expand 
our reach, we are investing in hypersonic weapons, space-based 
capabilities, unmanned tanking, and long-range precision fires. For 
increased deception and defense, we are investing in undersea 
platforms, weapons, and systems, next-generation aircraft and surface 
platforms, cyber capabilities, counter-surveillance, and integrated 
weapons systems. Finally, we are investing in smaller, lethal 
platforms, autonomous systems in all domains, AI, resilient logistics, 
and integrated combat systems and networks, all of which enable a more 
distributed fleet, the delivery to sustain it, and expand our decision 
advantage.
    Our adversaries are also heavily investing in emerging 
technologies. In response, the Navy will adopt a more agile approach to 
experimentation and force modernization, leveraging partnerships with 
industry and academia. Working closely with Allies and partners, we 
will expand our partnerships across the entire technology ecosystem. 
Maritime dominance has always depended upon the employment of game-
changing capabilities in combat.
    Rising to meet today's challenges with unmatched capabilities, the 
Navy-Marine Corps combat team completed its first deployment of F-35C 
and CMV-22B this past year. The warfighting advantages these platforms 
bring to the battlespace provide the Joint Force with an undeniable, 
lethal edge over our adversaries. Both aircraft, though different 
mission sets, allow our forces to project power deep behind enemy 
lines. In addition, the USS Gerald R. Ford completed its first 
deployment. This aircraft carrier not only signals the next generation 
of our fleets' principal weapon of power projection has arrived, but 
also that our nation remains poised and committed to maintaining our 
warfighting advantage for decades to come. Deploying such capabilities 
and platforms marks the culmination of many years and many people's 
hard work, showing the capabilities that our Nation can bring to bear.
    One of the key areas that is shaping and will continue to shape 
future warfare is the incorporation of cyber-warfare tools to detect 
and defeat adversary attempts to infiltrate and disrupt our warfighting 
systems. The Navy continues to make this a priority focus area to 
ensure our forces are ready to respond to adversary cyber-attacks. In 
addition, the Navy is working closely with the Joint Force to develop 
cyber capabilities that can be used across the entire spectrum of 
conflict. As such, the Navy will continue moving from its current 
compliance-based cybersecurity approach to one where the right to 
operate is earned and managed every day. Teams organized around the 
Department's recently-announced Cyber Ready effort will develop 
solutions, select tools, and produce methods, policies, guidance, and 
concepts of operation for instituting this new approach. A critical 
element to implementing this approach is the need to ensure the Navy 
has a skilled cyber-workforce comprised of both military and civilian 
cyber experts. To ensure the Navy has the cyber workforce the nation 
needs, and in alignment with Congressional intent, we are implementing 
a dedicated cyber designator. We remain committed to growing this 
capability alongside the Joint Force, as well as with our Allies and 
partners, collectively building a more robust security outlook.
    In response to potential adversaries developing and fielding 
hypersonic missile systems, the Navy collaborated with the rest of the 
defense enterprise to make hypersonics one of our highest priority 
modernization efforts. This past year has been marked with certified 
successes for our Conventional Prompt Strike capability. In 2022, we 
conducted one First Stage and one Second Stage Solid Rocket Motor 
static fires, marking five successful static fire tests of the newly 
developed missile. In another joint effort, the Navy Strategic Systems 
Programs and the Army Hypersonic Project Office successfully conducted 
the second High Operational Tempo for Hypersonics flight campaign in 
October, 2022. These developments represent significant progress in our 
hypersonic capabilities, and both programs are on track to support the 
first fielding of a hypersonic capability to the Army later this year. 
Both the Army and the Navy programs are on track to support the first 
fielding of a hypersonic capability to the Army later this year. Stable 
funding at the requested level will keep this critical capability on 
track to field on Zumwalt-class DDGs, followed by Virginia-class SSNs 
equipped with the Virginia Payload Module. The rapid development and 
demonstration of conventional land and sea-based hypersonic strike 
weapon systems support our Nation's ability to deter and, if necessary, 
defeat potential strategic competitors. Modernizing capabilities will 
remain a priority to ensure our Navy maintains warfighting advantage.
    Weapons with range and speed are critical capabilities. Our budget 
request pursues four multi-year procurement contracts for Advanced 
Medium Range Air-to-Air Missiles and Standard Missile-6 (SM-6). In 
addition, our request allows us to continue to work jointly with the 
Air Force in the procurement and production of Joint Air-to-Surface 
Standoff Missiles and Long Range Anti-Ship Missiles. We are also 
increasing our investments in Maritime Strike Tomahawks, as well as 
refreshing and recertifying existing Tomahawks and MK-48 Heavyweight 
Torpedoes.
    Above the sea, we remain resolute in our commitment to the Joint 
Force in establishing air superiority in the maritime domain, and 
sustaining our unique ability to project power from the flight decks of 
our aircraft carriers. The Navy's PB24 request supports procurement of 
thirty-four aircraft, modification, spares and support equipment. In 
this budget, our significant aviation investments include 15 F-35C 
Lightning II's, 14 Multi-Engine Training Systems, 2 MQ-4 Tritons, and 3 
MQ-25 Stingray II's. These advanced platforms are helping us drive down 
risk in our future carrier airwings, which will fully integrate 
unmanned carrier aviation. This past year, we completed MQ-25A aircraft 
in-flight refueling of Navy carrier-based aircraft and its first 
carrier demonstration. This unmanned aerial platform will complement 
the capability of our combat strike fighters and extend the range of 
our aircraft carriers.
    We continue to make progress on the future technologies we need. 
This past year, we completed over 4000 hours and 46,000 nautical miles 
of unmanned surface vehicle operations. These unmanned systems, and 
others like them, will play a key role in building our capability to 
conduct DMO. To operationalize the Department's Unmanned Campaign Plan, 
we established Task Force 59, which has been a game-changer for the 
fleet. As we prioritize the Indo-Pacific and push warships to patrol 
those waters, we have leveraged unmanned surface vessels and achieved 
outstanding maritime domain awareness in a critical region with three 
major chokepoints--the Suez Canal, the Bab Al-Mandab, and the Strait of 
Hormuz--spanning a maritime area the size of California. This 
achievement provides the Navy with scalable solutions to monitor the 
world's waterways and keep the oceans open and free.
    As AI and other disruptive technologies rapidly proliferate, we 
must proactively work to gain every advantage. Many of these rising 
technological developments play to our strengths as a nation. More 
sensors, providing more information, create more battlespace 
transparency. Our application of AI solutions will provide our forces 
with decision superiority as we map, measure, manage, and govern the 
battle space. We will continuously leverage such technological 
developments to better the fleet and our Sailors. While strengthening 
our Force, we must remain aware that no nation has a monopoly on 
innovation--and history has shown us the navy that continues to adapt, 
learn, and improve the fastest gains a strategic warfighting advantage.
    To enhance our current and future hybrid fleet, we are maturing AI-
enabled warfighting capabilities and developing an AI-ready workforce. 
This past year, Task Force 59 led and participated in International 
Maritime Exercise (IMX) 2022, the largest maritime AI and autonomous 
system exercise ever held. Along with this IMX, we executed Digital 
Horizon, an event exercising 15 advanced unmanned systems, 10 of which 
operated in the Middle East for the first time. Task Force 59 led 
industry partners during phased evolutions, both ashore and at sea, to 
advance fleet efforts to enhance regional maritime awareness with 
greater effectiveness and reduced cost.
    Along with building testing platforms and driving operational 
concepts for the future fleet, Task Force 59 advances our understanding 
of commercial technology that has the potential to complement other 
government-sponsored AI procurement and operations. In support of these 
efforts, the Unmanned Task Force continues to focus on rapid 
experimentation and solving operational problems to quickly inform 
acquisition strategies. We also continued work with partners and Allies 
in events such as NATO Maritime Unmanned Systems Initiative Exercises.
                                capacity
    Congress's support of the Navy's shipbuilding budget this past year 
helped us signal our partners in industry--as well as our challengers 
around the world--that we will remain the world's strongest maritime 
power. Authorizing and appropriating the procurement of 12 battle force 
ships displays Congress' continued commitment to the Navy's 
shipbuilding programs. We appreciate the strong support by Congress for 
naval shipbuilding during FY23 enactment. This year, our budget 
requests funding for procurement of an additional nine battle force 
ships.
    With sustained funding, the Navy can turn the corner on beginning 
to build the fleet this Nation needs: a combat-credible, hybrid fleet 
capable of succeeding across the continuum of day-to-day competition, 
crisis, and conflict. We also need a fleet with the capacity to 
distribute assets and deliver larger volumes of kinetic and non-kinetic 
effects across all domains to meet the strategic and operational 
demands of the Joint Force.
    The Navy's most critical role in support of our national defense 
and robust nuclear posture continues to be maintaining the most lethal 
ballistic missile submarines in the world. Thus, our number one 
acquisition priority remains the on-time delivery of the Columbia-class 
ballistic missile submarine. Originally designed for a 30-year service 
life, the first of the Ohio-class ballistic missile submarines will be 
retired in 2027 after 42 years of highly effective deterrent patrols. 
The Columbia-class will replace it as the Navy's contribution to the 
nuclear triad--which remains the most survivable leg of the U.S. 
strategic nuclear deterrent force. This is a once-in-a-generation 
investment, and sustaining our Nation's most secure and reliable 
strategic nuclear deterrent will require considerable resources. When 
the Columbia-class enters full-rate production in FY26, delivering the 
Nation's sea-based nuclear deterrent will consume nearly a quarter of 
the Navy's entire shipbuilding budget. The Navy's request funds the 
second Columbia-class submarine and delivery of the first vessel in 
FY28. Specifically, the Columbia-class program request of $5.8 billion, 
includes the first of 2 years of incremental full funding for the 
second submarine, to be awarded in FY24. The budget request also 
includes continuing Integrated Enterprise Plan funding initiatives, 
material procurement for future boats, and continued funding for 
Submarine Industrial Base investments. The strategic significance of 
this platform requires the Navy and the Nation to dedicate the 
necessary resources to ensure its on-time delivery.
    Shipbuilding remains critical to increasing our fleet's capacity, 
and requires significant investments from both the government, as 
included in the FY24 request, and the private sector. A combined 
commitment ensures healthy competition in the shipbuilding industrial 
base, which is vital to meeting Navy requirements in support of our 
national interests and defense of the homeland. With the help of 
Congress, the Navy and private shipbuilders are identifying 
opportunities to generate resiliency and productivity in the 
shipbuilding workforce. Part of the challenge of growing the fleet is 
having enough shipyards with the capacity and workforce to build the 
ships that we are budgeted.
    The shipbuilding industrial base faces an increase in demand across 
the enterprise, particularly in nuclear ship construction. As the Navy 
ramps up production of the Columbia-class, we continue to procure two 
Virginia-class submarines per year. The Virginia-class submarine budget 
requests $10.3 billion, or 32 percent of this appropriation, funding 
two Block V submarines and Advance Procurement for two FY 2025 and two 
FY 2026 submarines. Additionally, we continue production of the world's 
most capable, most lethal surface vessels. The Ford-class carrier 
program requests $1.9 billion, and funds the seventh increment of 
funding for CVN 80, and the sixth increment of funding for CVN 81. As 
part of the surface combatant portfolio, our budget requests $4.5 
billion for two Arleigh Burke-class Destroyers as part of the FY23-FY27 
multi-year procurement of modern Flight III Destroyers. We plan to 
award these destroyers this fiscal year. To support the building of our 
Constellation-class Frigates, our request includes $2.2 billion for the 
fifth and sixth ships of this class. These investments ensure that we 
field a fleet that sails forward, keeps the oceans open, and ensures 
our maritime advantage on and below the seas.
    To ensure that we can build the future submarines and aircraft 
carriers, we are taking steps to expand and strengthen the nuclear 
industrial base by investing in six key areas: shipbuilder 
infrastructure, supply chain capability/capacity, scaling new 
technologies, addressing workforce trade skill gaps and constraints, 
expanding productive capacity via strategic outsourcing of large scale 
fabrication, and government oversight of expanded industrial base 
efforts. In the Navy, any time we are splitting atoms, we know the work 
will be demanding, but these nuclear-powered platforms require our 
sustained commitment and continued support of the shipbuilders 
delivering these critical assets to the fleet.
    Beyond these nuclear shipbuilding projects, we are working closely 
with private shipyards to strengthen the Surface Combatant Industrial 
Base and Frigate Industrial Base. A key focus has been on the Workforce 
Development investments that address risk in schedules, increase 
capability to meet future force structure, promote job creation and 
economic security, and address risk in single or fragile supply chains. 
Expanding the capabilities of suppliers and shipyard infrastructure in 
the surface ship industrial base results in greater industrial base 
stability, cost savings, and improved efficiency as production 
increases to build greater quantities of surface combatants. These 
initiatives are paralleled by ongoing private sector investments to 
expand the nation's shipbuilding industrial base. We support any 
efforts to grow our capacity to build more ships annually. This is all 
part of a long-term commitment and clear signal to industry that the 
unique work done in our private shipyards is essential to the nation, 
and the workforce they provide will be gainfully employed for years to 
come. The Nation's shipbuilding industrial base remains a strategic 
asset. It requires continued support to expand its capacity, and to 
recruit and retain the workforce the Nation needs to deliver the fleet 
of tomorrow.
    A robust munitions industrial base, capable of delivering critical 
munitions in large quantities and in strategically relevant timeframes, 
is also an essential component of our Nation's warfighting capacity. 
The rapid expenditure of munitions in Ukraine has demonstrated the 
timeless truth that industrial capacity is a key enabler of victory. 
Our budget request adds over $2 billion in critical munitions 
investments, including supporting multi-year procurement contracts. We 
are working closely with our defense partners to make the necessary 
investments to allow us to rapidly ramp up production of critical 
munitions right now. We are taking a multi-pronged approach to 
introduce both stability and competition into the weapons acquisition 
process in order to accelerate delivery times, increase inventories, 
and lower costs. This includes use of multi-year contracts and large 
lot procurements, recertification of existing munitions, new 
production, and exploration of alternative systems designed to 
circumvent our adversaries' advantages and play to our strengths. We 
are also working with our partners and Allies to ensure their 
requirements are met, as well. Today's weapons are intricate, 
specialized, and depend on complex supply chains, which challenges our 
ability to quickly ramp up production. We cannot afford to wait until 
conflict begins to make these critical munitions capacity investments.
    Unmanned systems will play an ever-increasing role in expanding the 
capacity and distribution of our fleet. We will explore opportunities 
to scale proven capabilities of unmanned Maritime Domain Awareness 
systems, such as those demonstrated by Task Force 59. In addition, the 
AI-enabled software that meshes our network of systems and platforms 
will provide an array of decision advantage solutions as we track 
forces, manage the battlespace, and maintain our dominance at sea. 
Finally, we must focus on accelerating the adoption of technologies and 
scalable platforms that provide increased capability and capacity, 
while laying the foundation for our future hybrid fleet.
                               conclusion
    The U.S. Navy's mission has never been more essential for the 
preservation of American security and prosperity. Facing increasingly 
aggressive challengers, the Navy's priorities--Readiness, Capabilities, 
Capacity--will help us maintain our combat credibility in contested 
seas.
    In line with the NDS, the Navy's Fiscal Year 2024 budget request 
keeps us on a steady path to modernize U.S. naval power, while 
maintaining readiness and sustaining a forward posture that keeps 
America and our Allies safe and prosperous.
    Capable ships, submarines, and aircraft are expensive instruments 
of national power, as are the costs of maintaining and sustaining them. 
However, without a ready, powerful Navy, the costs we incur in 
potential conflict could be much higher. The investments we make now 
will shape the global maritime balance of power for the rest of this 
century.
    This is my final testimony before this Committee. It has been the 
honor of a lifetime serving as the Chief of Naval Operations these past 
three-plus years.
    On behalf of more than 600,000 active and reserve Sailors and Navy 
Civilians, thank you for allowing me to testify today. I am grateful to 
this Committee and to your colleagues in Congress for your steadfast 
commitment to the Navy. Let us continue our work to deliver the Navy 
that this Nation deserves--a Navy that will preserve peace, strengthen 
prosperity, and defend America for many decades to come.

    Senator Tester. Thank you, Admiral Gilday.
    Next up, we have got General Berger.
STATEMENT OF GENERAL DAVID H. BERGER, COMMANDANT OF THE 
            UNITED STATES MARINE CORPS
    General Berger. Thank you. Three years ago,--it did a rapid 
change, and was required to meet our statutory missions and the 
mandates of the National Defense Strategy, and with the 
bipartisan help of this committee and the support of my 
civilian leadership in the Pentagon. The Marine Corps Force 
Design is no longer a future aim point, it is today. It is a 
reality.
    And in INDOPACOM (Indo-Pacific Command), for example, Task 
Force 76.3 creating advanced information webs to support 
Maritime Awareness, they took what they learned in 
experimentation, and turned it into kill webs during exercise 
in the Philippines and in Japan earlier this spring, right in 
the Chinese backyard. And the EUCOM (European Command) Task 
Force 61.2 found ways to create greater Air and Maritime Domain 
Awareness for the Sixth Fleet, focusing on Russian naval and 
air activities.
    In CENTCOM (Central Command), General Kurilla has Marine 
Corps MQ-9s, providing persistent ISR (Intelligence, 
Surveillance, Reconnaissance) that he needs to monitor the key 
Maritime Terrain. Next month, our new Marine Littoral Regiment, 
Third MLR, will demonstrate some of its newest sensing and 
lethal capabilities in the Philippines during an exercise 
called Balikatan, right alongside our allies and partners.
    And in January of this year, a couple months ago, Japan 
agreed to host our Second Marine Littoral Regiment, which is 
Twelfth MLR that will be forward into the first island chain, 
where persistent Marine Corps presence matters most. So in 
short, your Marines are aware it matters most today, just as 
they always have been.
    Three years ago, I described how the Marine Corps would not 
just modernize quickly, but we would self-fund those changes we 
had to make. We would get leaner, lighter, and more naval. And 
in 3 short years your Marines have done just that. Marines are 
in the field, and those changes are in the field today, we are 
not waiting for 2025, or 2027, or 2030, your Marines are ready 
to handle any crisis, anywhere now.
    Our major divestments are done. We are at our fighting 
weight. Now we have to sustain our modernization efforts while 
focusing, as the Secretary mentioned, on the quality of life 
issues most important to the Marines, Sailors, and the 
families. People are the real source of our competitive 
advantage. And I ask for your help now to invest in their 
quality of life.
    We must focus now on where Marines and families live, where 
they eat, where they work, Marines and Sailors expect that from 
us, and they deserve it. Restoring and modernizing our 
infrastructure is directly tied to retention, supporting our 
families and generating readiness.
    So on behalf of all Marines I ask for your support now as 
we bring our facilities up to par with the quality of Marines 
and Sailors operating from those warfighting platforms.
    And I would also ask for your support to our Naval 
Expeditionary capability, the CNO (Chief of Naval Operations) 
and I agree on three key principles when it comes to amphibious 
ships. First, the absolute minimum of L-class amphibious ships 
the Nation needs is 31. That is the warfighting requirement. 
Second, block buys save money, and they give industry 
predictability. And third, divesting without replacing creates 
unacceptable risk.
    Amphibious ships are critical to crisis response for this 
country. That is how we evacuated citizens, U.S. citizens out 
of Lebanon. That is how the U.S. made initial entry into 
Afghanistan after 9/11, from the sea. And when DOD (Department 
of Defense) sends its life-saving support after hurricanes, and 
typhoons, and earthquakes around the world, and here in the 
U.S., amphibious ships with embarked Marines were the only 
practical option.
    Today, we need to do all that plus directly contribute to 
campaigning in integrated deterrence. Here is the bottom line 
from where I see it, the first time we can't respond to an ally 
or partner in time of crisis it will probably be the last time 
they depend on us for help, and we cannot let those 
partnerships erode.
    In my final year as commandant, I will finish by just 
saying thank you. Your Marine Corps wouldn't be where it is 
today without your oversight, your guidance, your unwavering 
support.
    And with that, I welcome your questions. I look forward to 
working closely with this committee in the months to come. 
Thank you, sir.
    [The statement follows:]
             Prepared Statement of General David H. Berger
    Chair, Ranking Member, and distinguished members of the Committee, 
I am thankful for the opportunity to report the progress of your Marine 
Corps over the last year and seek your support in continuing to prepare 
the Service to face an increasingly uncertain and challenging future. I 
would be remiss, in my final year as Commandant, if I did not first 
acknowledge the unwavering support of this Committee over the last 3 
years. Simply put, the Marine Corps of today is a better fighting force 
because of your guidance, commitment, and resourcing decisions. But 
there is still much work to be done. A brief review of world events 
over the past few years tells us we are moving in the right direction, 
but we cannot slow down. In fact, we need to accelerate our efforts so 
your Marine Corps can effectively deter while remaining ready to 
immediately respond to any crisis, anywhere on the globe, at any time. 
The work of this Committee is crucial to the modernization of the 
Marine Corps into a force that will continue to do just that.
                                posture
    Today, more than 32,000 Marines are forward-deployed or stationed 
across 50 countries. There are also, on average, 102 Marine Corps 
fixed-wing aircraft (F-35, F/A-18, and KC-130J) forward-deployed or 
stationed overseas, a 22 percent increase since 2018. This forward 
posture is a critical requirement for integrated deterrence and 
reinforces a national source of strategic advantage--our global network 
of allies and partners.
    Most Marine forces west of the International Date Line are based in 
Japan. In January, the Government of Japan announced its intention to 
host the future 12th Marine Littoral Regiment (MLR). This unit will 
possess advanced intelligence, surveillance, and reconnaissance (ISR) 
capabilities as well as long range precision fires capabilities, 
improving both maritime domain awareness and our ability to deter 
potential adversaries. When combined with the other stand-in force 
capabilities of III Marine Expeditionary Force (MEF), 12th MLR will 
provide a major lethality upgrade for the fleet and joint force in the 
Indo-Pacific.
    While our posture has become more robust in the Indo-Pacific, fewer 
of our forward-deployed Marines are serving afloat with the fleet. In 
2018, 16,000 Marines served aboard ships, but in 2022, just 12,660 did 
so--a 20 percent decrease. The principal reason for this decline was 
the lack of amphibious warfare ship availability. As directed by the 
Fiscal Year 2023 (FY23) National Defense Authorization Act (NDAA), 10 
LHA/LHD and 21 LPDs are the bare minimum necessary for our amphibious 
fleet. Additionally, in my best military judgment, the Marine Corps 
needs a minimum of seven Amphibious Ready Group/Marine Expeditionary 
Units (ARG/MEU), three MLRs, and 35 Medium Landing Ships (LSM) to 
provide a strong forward posture for building partnerships in the 
littorals and to contribute to integrated deterrence.
                               resources
    The FY24 budget request for the Marine Corps is $53.2 billion (B). 
To date, the Marine Corps has taken every possible opportunity to self-
fund our modernization. This required hard choices and difficult, 
unpopular decisions. With the support of our civilian leadership in the 
Department of the Navy (DoN), Department of Defense (DoD), and 
Congress, from Presidential Budget 2020 (PB20) to PB23 this approach 
succeeded. Over the last five program objective memorandum (POM) 
cycles, the Marine Corps divested $18.2B across the Future Years 
Defense Program (FYDP) in structure and legacy platforms and systems 
and has reinvested $15.8B directly into modernization. The success of 
these divest-to-invest actions would not have been possible without the 
support of our civilian and Congressional leadership.
    To be clear, the Marine Corps is now complete with our major 
divestments. Reducing the approved acquisition objectives (AAO) of 
major programs like the CH-53K or F-35 at this point would not produce 
resources for investment elsewhere and would be premature decisions. We 
approached FY24 as a program review year. Limiting the introduction of 
new programs in FY24 allows the Marine Corps to maintain or even 
accelerate progress on investments from preceding budget cycles that 
are directly tied to our pacing threat.
    The suggestion that we may have to choose between preparing to 
fight tonight--which your Marines are fully prepared to do--and 
preparing for some distant point in the future presents a false 
dichotomy. Readiness, lethality, and modernization to meet future 
challenges are all required today. Our collective challenge is to 
balance the resource tension between the force we employ today and the 
development of the force to compete and win in the years to come.
                         warfighting readiness
    In many ways, Marine Corps readiness has improved since 2018. Our 
units have higher levels of persistent manning/staffing, more equipment 
and supplies, enhanced individualized training, and more collective 
training--much of it force-on-force. Our combat arms units are equipped 
with modern capabilities far superior to those of past formations. Yet, 
while many things have changed, the foundational elements have not. We 
remain the most elite infantry in the world, with the most proficient 
combined arms teams on the globe.
    While there have been substantive readiness improvements across the 
force, nowhere have these improvements been more visible than in Marine 
aviation. Across all type/model/series of aircraft, our mission capable 
rate has increased from 57 percent in 2018 to 66 percent in 2023--an 
achievement that would not have been possible without Congressional 
support and the herculean efforts of Marine aviation mechanics and 
maintenance crews. We anticipate further improvements to aviation 
readiness as we retire older airframes (e.g., F/A-18 and CH-53E) and 
accelerate acquisition of newer platforms like the F-35B/C and CH-53K.
    In 2018, we employed a lethal, though primarily fourth generation, 
tactical air (TACAIR) force of 173 F/A-18C/D and 126 AV-8B, with 72 
fifth generation F-35B/Cs. Today, our TACAIR force is comprised of 174 
F-35B/C and 178 fourth generation aircraft--a major step forward. 
Despite the challenges associated with transitioning the force from 
fourth to fifth generation aircraft, the overall readiness of our 
TACAIR fleet increased from 56 percent in 2018 to 68 percent in 2023.
    We have also achieved significant gains in the readiness of our MV-
22 fleet, rising from 52 percent in 2018 to 64 percent in 2023. The 
current challenges surrounding a series of hard clutch engagements 
caused each of the Services to take immediate action to replace certain 
transmission components in our V-22 fleets. That action is ongoing, and 
we expect to see a rebound in readiness this spring and summer.
    Amphibious Combat Vehicle (ACV): The introduction of the ACV has 
the potential to greatly enhance our littoral mobility and 
expeditionary reach. However, as with all new systems and technologies, 
there have been a few notable challenges. At present, we are working 
with BAE Systems to address two major component issues--one with the 
struts/shock absorbers, and the other with the central tire inflation 
system. Both issues have caused part failures, resulting in a decrease 
in reliability and a corresponding decrease in readiness. We have also 
identified issues related to possible water incursion into the power 
train and are working with our industry partner to resolve those as 
well. In addition to these mechanical issues, we have experienced three 
incidents in the surf zone that resulted in vehicles rolling over. 
According to BAE Systems and confirmed by our safety investigations, 
these rollovers were caused by a lever effect generated when the 
vehicle becomes parallel to the surf-line and is struck by a large 
wave. These events were, in large part, the product of training 
shortfalls. We are actively working with BAE Systems to rectify all 
mechanical concerns and are enhancing the training regimen for our 
vehicle operators on this new and more sophisticated amphibious 
vehicle.
    F135 Engine: In both PB22 and PB23, Congress enacted funding to 
support F135 engine modernization. In addition to this funding, the 
Office of the Secretary of Defense (OSD) added significant resources 
for an engine core upgrade and for power and thermal management system 
(PTMS) modernization. We will continue to monitor the current F135 
engine and F-35 PTMS's ability to support Block IV mission systems and 
will work with the Joint Program Office to ensure our requirements are 
being met.
    Unmanned Aircraft System (UAS) Pilot Training: As an integral part 
of Force Design, we embarked along a path in late 2019 to double our 
uncrewed aircraft capacity across the force from three unmanned aerial 
vehicle squadrons (VMU) to six squadrons, while transitioning from the 
RQ-21 to the much more capable MQ-9. While our commitment to uncrewed 
systems is unshakeable, we have concluded the Air Force's capacity to 
generate trained MQ-9 UAS officers is insufficient to satisfy Marine 
Corps requirements. At present, half of our total inventory of UAS 
officers (72 of 148) are not yet trained and qualified to operate the 
MQ-9. We are working with the Air Force to remedy this throughput 
issue. However, there is a need to direct the necessary resources in 
future budgets to establish a Naval UAS School to resolve this larger 
joint force issue.
    Pilot Readiness Concerns: Service Chiefs are routinely asked about 
how the joint force can effectively compete against the Department's 
pacing challenge--the People's Republic of China (PRC)--or our acute 
threat--Russia. But there is a different competition that is more 
directly and more adversely impacting the joint force than that 
emanating from either Russia or China, and that is the unhealthy 
competition between the Services and the airline industry. As the head 
of personnel for the Air Force stated during testimony in 2017, we 
cannot compete with the airlines. We could not then and we cannot now. 
This is an issue that requires your oversight. We are at a competitive 
disadvantage and risk our reservoir of pilots drying up. As an example, 
in 2018, the Marine Corps had 88 of the 203 required F-35 pilots (43 
percent of the requirement). At the end of 2022, we had 218 of 498 F-35 
pilots (44 percent of the requirement). At the end of 2022, we had 200 
F-35 pilots in flight school and another 62 at our fleet replacement 
squadrons with FY23 and FY24 completion dates. We are making some 
progress, but not enough--and certainly not quickly enough. We are 
exploring various options for structuring aviation bonuses and aviation 
incentive pay under the new authorities granted in the FY23 NDAA. But 
ever-larger monetary incentives are neither sustainable nor the 
appropriate remedy. This is not just a Marine Corps problem. It is a 
joint force problem, and we will continue to work with the other 
services and Congress as our understanding of this issue develops.
                  force design and current operations
    There is a misperception by some that Force Design might create a 
gap in Marine Corps capabilities between divestment and fielding new 
capabilities. The reality is that fielding new capabilities associated 
with Force Design is already well underway. Many of these ``future'' 
capabilities tied to Force Design 2030 are already being employed by 
Marine forces today. Six examples from 2022 are illustrative:
    TF 61.2 and Reconnaissance and Counter-reconnaissance: In March 
2022, U.S. Sixth Fleet partnered with II MEF to create Task Force (TF) 
61.2. TF 61.2 was designed as a joint task force crisis response 
capability to command and control naval forces supporting contingencies 
in Europe and Africa. This force was delegated tactical control of 
amphibious forces (ARG/MEU) in theater, allocated Marine forces (Marine 
Rotational Force--Europe), and a task organized reconnaissance/counter-
reconnaissance force. Near simultaneously, II MEF and 2d Marine 
Division were tasked with ``accelerating experimentation with maritime, 
multi-domain reconnaissance constructs and activities to enhance the 
ability of the stand-in force to dominate the information environment, 
sense and make sense of the situation, and win the reconnaissance vs. 
counter-reconnaissance competition.'' Commander, Sixth Fleet, 
immediately volunteered TF 61.2 to support these broader Service 
experimentation efforts. During the next several weeks, TF 61.2 
conducted training aboard both the USS Woody Williams (ESB-4) and USS 
Georgia (SSGN-729), and engaged in combined-arms training in both 
Greece and Turkey. Those initial exercises demonstrated that maritime 
expeditionary forces could increase surface, subsurface, and aerial 
domain awareness for the fleet commander--regardless of theater--and 
allowed us to focus on the information web required to create domain 
awareness in a contested space. TF 61.2 then transitioned these 
experimental capabilities to the Baltics, where it participated in 
bilateral training on maritime domain awareness with the Estonian Navy 
in the Gulf of Finland. During this period, TF 61.2 participated in an 
amphibious landing in Estonia and Exercise BALTOPS with 16 North 
Atlantic Treaty Organization (NATO) nations, utilizing 47 ships and 
7,000 personnel. This new organization has been so successful the 
previous Commander, U.S. European Command (EUCOM) chose to highlight 
the value of the task force during his spring 2022 annual testimony. 
The bottom line is that your Marines' ability to conduct reconnaissance 
and counter-reconnaissance is a current force capability that directly 
contributes to competition and deterrence today.
    TF 76.3: Building upon the success of TF 61.2, in October 2022, the 
3d Marine Expeditionary Brigade and Naval Task Force 76 staffs merged 
into a completely integrated naval task force in the Indo-Pacific. Over 
the next several months, TF 76.3 experimented with naval concepts at 
sea and ashore via a broad campaign of learning labeled NOBLE FUSION 
22.2. TF 76.3 also participated in exercises KAMANDANG in the 
Philippines and RESOLUTE DRAGON in Japan. Once again, Marines and 
Sailors demonstrated the ability to create advanced information webs to 
support maritime domain awareness across the theater. Just as 
importantly, they demonstrated this capability to potential 
adversaries.
    USS Tripoli: The most recent deployment of the USS Tripoli (LHA-7) 
demonstrated the strategic and operational advantage that amphibious 
warfare ships create today. In early 2022, Tripoli set sail as an 
independent deployment, in part to test our F-35B ``Lightning Carrier/
Assault Carrier'' concept by which 16-24 F-35Bs were embarked and 
operated in concert with a traditional carrier strike group. During 
Tripoli's time in the Indo-Pacific, embarked Marines and Sailors 
trained with and supported the USS Abraham Lincoln (CVN-72) and USS 
Ronald Reagan (CVN-76), among other traditional surface combatants. Not 
only did the deployment illustrate the potency of the Lightning Carrier 
concept in support of carrier strike group operations, it also 
demonstrated the versatility and value of the platform for the 
integrated Navy-Marine Corps team. During Exercise VALIANT SHIELD 2022, 
the Commander of U.S. Seventh Fleet, Vice Admiral (VADM) Karl Thomas, 
embarked his staff aboard the Tripoli and used it as his command 
platform for 15 days--a strong endorsement of the platform's importance 
within the larger fleet. VADM Thomas noted, ``One day you can have F-
35Bs on the flight deck, the next day you could have MV-22s and you can 
be putting Marines ashore. . . .it just is a very versatile instrument 
. . . [with] 14 5th-gen fighters on board--it's an incredibly capable 
sensor.''
    The LHA's size, which closely mirrors the amphibious warfare ships 
of our allies, makes it an attractive partnership and learning 
platform. During their deployment, Marines and Sailors from Tripoli and 
the 31st MEU trained with forces from Japan, Australia, the 
Philippines, and Singapore.
    Multifunction Air Operations Center (MAOC): In March 2022, 2d 
Marine Aircraft Wing (MAW) conducted the Service's first operational 
deployment of a multi-function air operations center (MAOC). In 
Lithuania, under the command of U.S. Air Forces Europe, the MAOC 
conducted air surveillance and multi-domain awareness in support of 
NATO operations. This is not simply an evolutionary step in fixed 
aviation command and control (C2) nodes, but rather, a 
transformational, expeditionary capability that can serve as a hub for 
Marine Corps, naval, and joint kill chains and webs. The MAOC provides 
the Marine Corps with the capability to control aircraft and missiles, 
and enables decision superiority. It also offers the ability to gain 
and maintain custody of adversary targets and hold those targets at 
risk via fires with its organic TPS-80 Ground/Air Task-Oriented Radar 
(G/ATOR), Common Aviation Command and Control System (CAC2S), and 
highly proficient aviation C2 Marines. The MAOC is scalable by task-
organized units, small enough to support distributed teams or large 
enough to support a multi-MEF or Corps-level fight. This agency 
construct is also the model we are using for the development of all-
domain C2. 3d MAW is now leading the Service's MAOC experimentation 
efforts and employed this capability as part of Marine Rotational 
Force--Darwin (MRF-D), integrating C2 and sensor services for 16 allied 
and partner nations during Exercise PITCH BLACK. From these initial 
efforts, 3d MAW has matured the MAOC, creating a persistent hub to 
enhance the common tactical picture for I and III MEF. Recent 
experiments in February 2023, which included U.S. Indo-Pacific Command 
(USINDOPACOM), have further demonstrated the MAOC's ability to 
integrate additional capabilities from the MEF Information Group and 
improve the common tactical picture for a carrier strike group, and is 
visible evidence of Joint All-Domain Command and Control (JADC2) in 
practice.
    Marine Corps Information Command (MCIC): In October 2022, we 
streamlined and simplified much of the coordination required for space 
and cyberspace operations at the headquarters level, by realigning 
current relationships and structure at Headquarters, Marine Corps 
(HQMC) from a staff officer to an operational commander, to create the 
MCIC. The MCIC is a service-retained command designed to integrate 
global Marine Corps capabilities in information, intelligence, 
cyberspace, and space to support Fleet Marine Forces (FMF) resulting in 
decision advantage. This two-star command operates under Marine Forces 
Command (MARFORCOM) and provides critical linkages across operational 
level planning. It also provides task organized detachments to support 
the FMF commander's campaigning objectives. This allows the commander 
to leverage the authorities needed to synchronize global cyber, space, 
influence, and intelligence effects and generate multi-domain 
advantages in support of the commander's objectives. The MCIC achieved 
initial operational capability (IOC) in January 2023.
    VMGR-153 and HMH-461: In January 2023, we activated Marine Aerial 
Refueler Transport Squadron 153 (VMGR-153) in Kaneohe Bay, Hawaii. By 
2026, VMGR-153 will bring 15 KC-130J aircraft to the region, building 
on the organic mobility available to Marines responding to crisis or 
conflict in the region. We are also approaching 1 year since the CH-53K 
program achieved IOC and are well underway transitioning Marine Heavy 
Helicopter Squadron 461 (HMH-461) into our first fully operational CH-
53K squadron. Despite their ongoing transition, HMH-461 is already 
demonstrating the significant impact of this new capability, conducting 
heavy lift assault support missions previously impossible with legacy 
aircraft. In parallel, the operational test and evaluation squadron 
(VMX-1) continues to push the boundaries of heavy lift operations. Last 
December, they successfully lifted an F-35C, demonstrating the 
platform's utility in conducting next generation tactical recovery 
missions.
            force design and the ground combat element (gce)
    Infantry Battalion Experiment (IBX): IBX is an ongoing Service-
level initiative designed to evaluate the future infantry battalion's 
ability to conduct expeditionary, offensive, and defensive operations 
as an element of a MEU, MLR, or infantry regiment in support of fleet 
and joint operations. The results of IBX live-force experimentation 
represent a critical component of our campaign of learning and are one 
of several inputs informing our ongoing assessment of the future 
infantry battalion.
    After 24 months of experimentations and force-on-force exercises 
with three infantry battalions, our combat developers, division 
commanders, and MEF commanders recommended an 811-person infantry 
battalion. This new battalion demonstrated improved C2, sensing, and 
lethality. Importantly, this recommendation reflects the value of our 
campaign of learning. In 2019, we experimented with a 735-person 
battalion. But force-on-force experimentation made clear our initial 
assumptions were off. It also demonstrated a need for additional ground 
ISR and indirect fires capacity. In line with these findings, we right-
sized personnel, added back indirect fires capacity, and added organic 
UAS platforms and personnel to improve surveillance and target 
acquisition. Future infantry battalions will possess Block IV Javelins 
at the company-level to increase anti-armor capability and will have 
loitering munitions (organic precision fires (OPF)) at the squad and 
platoon levels to increase lethality, enhance maneuver, and facilitate 
distributed operations. They will have additional communications, 
logistics, and intelligence capabilities at the company-level, and new 
signals intelligence and electromagnetic warfare capabilities at both 
the battalion and company levels. They will possess vehicle-mounted and 
canister-launched OPF at the company and battalion level to enhance the 
lethality, multi-domain awareness, and reach of those units, and will 
have improved C2 systems at the company-level. But our learning never 
stops. We will build from past efforts and conduct another round of 
experiments with two additional battalions this year. These experiments 
will evaluate the new infantry battalion design against a peer 
adversary, with the aim of further refining its structure and 
capabilities to the demands of the modern battlefield. We will also 
begin incorporating our lessons learned into FMF battalions not 
directly involved in IBX later this year.
    Close Combat Lethality: In 2018, former Secretary of Defense James 
Mattis convened the Close Combat Lethality Task Force (CCLTF). As we 
approach 5 years since that effort was launched, we should take stock 
of its significant impact. The CCLTF's insights have been instrumental 
in informing the ongoing transformation within our infantry formations, 
the most visible of which being the success of the Multi-purpose Anti-
armor Anti-personnel Weapon System (MAAWS). It provides a multiple-
effects rocket system to infantry and combat engineer squads to 
increase firepower and enhance their ability to close with and destroy 
the enemy. The MAAWS is a medium-range, multi-purpose, man-portable, 
line-of-sight, reloadable, recoilless, day/night, anti-armor, and anti-
personnel weapon system with an available suite of 84mm rockets. MAAWS 
munitions will be capable of obscuration, illumination, personnel 
denial, armored vehicle denial and penetration, bunker and hardened 
facility penetration, and soft target destruction capabilities. Every 
rifle squad, combat engineer squad, and Marine Special Operations 
Command (MARSOC) team will be equipped with one MAAWS. Fielding began 
in the 3d quarter (3Q) of FY21 and will be complete in 3QFY25.
    The Marine Corps has also fielded lightweight body armor including 
a new plate carrier (PC Gen 3), and an enhanced combat helmet--all of 
which address the significant weight of the individual Marine's combat 
load so well documented from operations in Iraq and Afghanistan. In 
addition, new night vision devices (AN/PVS-31A) have enhanced night 
movement and weapons lethality for our infantry, improving their 
situational awareness and ability to acquire targets. The MAAWS, Squad 
Common Optic, M27 squad automatic rifle, M17 pistol, and Mk13 and Mk22 
precision rifles have all increased organic lethality within our small 
units. Multi-domain sensing and targeting is being addressed with a new 
signals intelligence/electromagnetic warfare (SI/EW) program called 
Marine Electromagnetic Ground Family of Systems (MEGFoS). This SI/EW 
suite of equipment, crewed by dedicated SI/EW and cyberspace personnel, 
will be employed in the future infantry battalion, greatly enhancing 
tactical level target identification and engagement. All these 
capability enhancements make our squads and platoons more lethal.
    3d MLR and 12th MLR: On 3 March 2022, we activated 3d MLR and it is 
on track to achieve IOC this year. 3d MLR has an established littoral 
combat team (LCT), combat logistics battalion (CLB), and littoral anti-
air battalion (LAAB), all of which have been exercising in operations, 
activities, and investment events in the Indo-Pacific region. 3d MLR 
continues to operate in coordination with the Naval Surface Group 
Middle Pacific (NAVSURFGRU MIDPAC) to further develop its maritime 
fires capabilities, and most recently, deployed to Marine Air-Ground 
Task Force--Training Command (MAGTF--TC) to execute the first Service-
level MLR training exercise. This exercise focused on the MLR's ability 
to sense and make sense of the operating environment and rapidly close 
kill chains. 3d MLR is designed to be a stand-in force, but it is not 
the Service's sole stand-in force. Rather, it is one part of the larger 
III MEF system of stand-in forces that includes our forward deployed 
naval force, as well as other expeditionary capabilities including the 
F-35B/C.
    We are on track to activate 12th MLR by 2025. The Government of 
Japan and Secretary Austin recently announced that 12th MLR will be 
forward stationed on Okinawa to create greater maritime domain 
awareness and enhance our collective ability to deter in the region. As 
Secretary Austin stated during the announcement, ``We will equip this 
new formation with advanced intelligence, surveillance, and 
reconnaissance, as well as anti-ship and transportation capabilities 
that are relevant to the current and future threat environments.'' 12th 
MLR's presence and capability suite will augment our existing stand-in 
force capacity in the first island chain.
    These littoral regiments provide the joint force two essential 
capabilities. First, they serve as eyes and ears of the joint force--
meaning their persistent, forward, and distributed posture enables the 
joint force to reach well inside of weapons engagement zones. Second, 
they provide decision space and time for the other joint forces to 
deploy, while maintaining continuous maritime domain awareness.
                   force design emerging capabilities
    In addition to current operations that demonstrate Force Design in 
action today, a number of emerging capabilities on the horizon will 
increase the Marine Corps' ability to enable full-spectrum operations 
for the Joint Force in contested environments.
    Unmanned Logistics System-Aerial (ULS-A): As the ongoing conflict 
in Ukraine has illustrated, even traditional ground resupply, executed 
over interior lines and relatively short distances, can be disrupted 
with operational level effects. Consistent with these lessons, the 
Marine Corps is developing the ULS-A Small or Tactical Resupply 
Unmanned Aircraft System (TRUAS). The TRUAS has a 9-mile range and 
maximum payload of 150 pounds, which is sufficient to fly in 
ammunition, food, medical supplies, and batteries, among other 
supplies. This small system only requires two Marines to operate and 
will be a game-changing capability for our distributed forces. The 
TRUAS is anticipated to achieve IOC in 2023 with fielding completed in 
2027. Fielding this capability is critical toward setting conditions 
for the development of the ULS-A Medium system, which is the required 
capability for large-scale tactical distribution in a contested space. 
The emerging ULS-A Medium will be fielded in 2025 and will provide 
payloads between 300 and 600lbs with a range of up to 100 miles.
    Marine Air Defense Integrated System (MADIS): MADIS is an 
expeditionary, upgradable, and state-of-the-art capability to protect 
maneuver forces, installations, and other designated critical assets 
from fixed/rotary wing (FW/RW) aircraft and Group 1-3 UAS. It uses 
sensor-integrated C2 to provide beyond line-of-sight cueing, targeting, 
and engagement. Current air defense capabilities only defend against 
FW/RW targets and Group 3 UAS within line of sight. The MADIS is 
composed of a complementary pair of Joint Light Tactical Vehicles 
(JLTV). The Mk1 JLTV is designed to kill FW/RW variants with a turret-
mounted 30mm cannon, Stinger missiles, and an electromagnetic warfare 
(EW) jammer. The Mk 2 JLTV provides redundant, non-kinetic and kinetic 
fires while primarily employing C2 software and sensors to collect, 
interpret, and pass radar tracks to the Mk 1 via a wireless local 
network for target engagements. The AAO is 131 systems comprised of 262 
vehicles; the FY24 budget request provides for 13 MADIS (26 vehicles). 
We will achieve IOC in 4QFY24 with the delivery of 17 systems, and we 
anticipate reaching full operational capability (FOC) in FY31. The FY24 
budget request for the MADIS family of systems is $265 million (M).
    Medium Range Intercept Capability (MRIC): The MRIC defends forward-
deployed forces against the threat of cruise missiles and other aerial 
threats with similar flight profiles. This is accomplished through the 
integration of already-fielded Marine Corps and Israeli systems that 
include CAC2S, the TPS-80 G/ATOR, the Iron Dome Battle Management 
Controller, and the Tamir missile and guidance uplink. Each MEF will be 
fielded with one MRIC battery. A battery is comprised of a headquarters 
element and four independently deployable firing platoons. To date, 
there have been four successful live fire events: August 2019, 
November--December 2021, April--June 2022, and September 2022. Each 
live fire successfully demonstrated the destruction of multiple 
operationally challenging missile threats. The Service's FY24 budget 
request is for $44 million.
    Navy-Marine Expeditionary Ship Interdiction System (NMESIS): The 
Marine Corps is transitioning the majority of its existing lightweight 
155mm towed artillery batteries into medium-range missile (MMSL) 
batteries equipped with NMESIS to conduct anti-surface warfare 
operations as a component of an integrated naval force. By 2030, the 
Marine Corps will have 14 MMSL batteries: three batteries forward 
deployed in support of MLRs and 11 continental U.S. (CONUS)-based 
batteries supporting the rotational and MEU deployments. The program 
will enter low-rate initial production (LRIP) in 3QFY23. The first six 
operational launchers will be fielded to MMSL Battery, 3d MLR in 4QFY23 
to give the Service its first capability to contribute to sea denial 
and sea control operations with ground based anti-ship missile (GBASM) 
fires. We anticipate reaching IOC in FY25 after fielding five MMSL 
batteries and a MMSL battalion headquarters. We anticipate reaching FOC 
in FY30 when all 14 MMSL batteries have been fielded. The Service's 
FY24 budget request for $402 million supports procurement of 24 NMESIS 
launchers and associated equipment, and 90 Naval Strike Missiles (NSM) 
keeping the program on track to reach 774 NSM. The 774 NSMs provide one 
combat load plus one combat load resupply per deployed MMSL unit.
    Long-Range Fires (LRF): OSD directed the Marine Corps to develop 
and field a ground-launched Tomahawk Land Attack Missile (TLAM) 
capability to support joint force long range, precision fires 
requirements. The LRF weapons system is composed of a Remotely Operated 
Ground Unit for Expeditionary (ROGUE) Fires leader kit, LRF launcher, 
LRF C2 System (LC2S), and LRF Reload and Resupply System (LRRS). All 
four components are required to complete a full mission of loading, 
transporting, and firing a Tomahawk missile. This capability leverages 
existing Navy and Marine Corps hardware and software such as the Mk41 
Vertical Launch System, Tactical Tomahawk Weapon Control System, 
Tomahawk cruise missile, and JLTV to reduce risk by accelerating 
capability delivery to the FMF and combatant commanders. The current 
plan is to establish three 16-launcher, long range missile (LMSL) 
batteries to form one LMSL battalion capable of deploying one battery 
at a time by 2030. The first four operational launchers are scheduled 
to be fielded during 4QFY24. Remaining batteries are planned for 
activation between FY26 and FY28. OSD provided $1.2B in research, 
development, testing, and evaluation (RDT&E) and Procurement Marine 
Corps (PMC) funding through FY26 to support the development and 
procurement of 56 LRF launchers, C2 and support equipment, and 152 
Tomahawk (TLAM and MST) missiles. The FY24 budget request for LRF is 
$142 million.
            research, development, test & evaluation (rdt&e)
    This year, we will invest heavily in the next generation of RDT&E 
efforts. We are placing an emphasis on the future of Marine aviation, 
JADC2, persistent sensing, and contested logistics, while expanding our 
experimentation efforts. With the support of the Office of the Under 
Secretary of Defense for Research and Engineering's Joint Capability 
Technology Demonstration office, we will begin the Long-Range Attack 
Munition (LRAM) project, to rapidly develop and field a low-cost, air 
launched, family of loitering and swarming munitions. The LRAM can be 
employed by not just H-1s and F-35s, but also palletized and employed 
from MV-22s, CH-53Ks, and C-130s, thereby significantly expanding our 
magazine depth. Likewise, we have moved out in earnest on 
experimentation with our capstone research and development effort, the 
family of integrated targeting cells (FITC). FITC accelerates the 
evolution of combined arms to a new level. It fuses operations, 
intelligence, and fires functions together in one center and creates 
the means by which the Marine Corps will be able to participate in and 
control joint fires, while also gaining and maintaining persistent 
custody of adversary targets. We will also expand our ground launched 
loitering munitions capabilities by demonstrating a common launcher for 
the family of munitions, and we continue testing a low-cost, hypersonic 
booster that will be in a form factor the Marine Corps can logistically 
support in a contested environment. For maritime mobility, we are also 
investing in our first Stern Landing Vessel (SLV) prototypes, which are 
helping buy down risk and advance the Medium Landing Ship (LSM) 
program. We will continue efforts to develop a medium-sized, uncrewed 
logistics aircraft and will begin small boat experimentation to 
determine the future of our surface reconnaissance capabilities.
     force design experimentation in support of contested logistics
    The Marine Corps Warfighting Laboratory, in close collaboration 
with both the Navy and III MEF, is currently experimenting with more 
than a dozen new technologies and potential future capabilities focused 
on enabling logistics in a contested environment. These operational 
experiments include well-known capabilities such as the SLV and wing-
in-ground-effect (WIG) craft, as well as lesser-known, emerging 
capabilities such as the autonomous low-profile vessel (ALPV). Based on 
our existing experimentation plans, operational experimentation with 
these and other capabilities will continue over the next 3 years and 
inform future capability investment decisions.
          force design experimentation with littoral mobility
    Mobility is a key characteristic to the dispersion and persistence 
of stand-in forces. In the case of the Indo-Pacific, littoral mobility 
will be essential to our ability to maneuver through the complex 
geography of the region. We recognized this capability gap early in the 
design process and identified the LSM as a mechanism to transport 
Marines in this unique maritime environment.
    Medium Landing Ship (LSM): Distinct, yet complementary to 
traditional L-Class amphibious warfare ships, the LSM is purpose-built 
to provide tactical maneuver for regimental sized units, forward-
deployed naval forces, and other expeditionary advanced base-enabling 
forces operating within contested environments. The LSM is a maneuver 
asset, and as a shore-to-shore connector, is unique and critical to 
expeditionary littoral mobility. It will facilitate campaigning and 
support diverse missions such as security cooperation, humanitarian 
assistance/disaster relief (HA/DR), and logistics support. While not 
optimized for any one threat or region, we envision the LSM being of 
particular utility in the maritime gray zone contests omnipresent in 
the Indo-Pacific. Given its size and characteristics, this vessel could 
be employed with a lower risk of escalation than larger platforms.
    After extensive research and wargaming, we calculated a need for 
nine LSMs to support a single regimental sized unit. The DoN's 
Amphibious Force Requirements Study over the last 2 years validated 
this number, articulating a requirement of no fewer than 18 LSMs to 
support littoral maneuver. Given that current force structure plans 
call for three MLRs, we require 35 LSMs to account for operational 
availability and mobility for those units. We anticipate an initial 
request for 18 of the 35 LSMs we seek will be a step toward enabling us 
to more effectively counter adversaries' strategies, support and 
reinforce alliances and partnerships, and do so at a relatively low 
cost.
    Despite focusing our efforts over the past 3 years on deterring, 
competing, and if necessary, contesting the pacing challenge, the 
Marine Corps will not fully realize the capabilities of the MLR until 
we have the littoral mobility assets that enable these forces. The 
decision to delay LSM procurement from FY22 to FY25 was a setback in 
our ability to bring this capability online within an operationally 
relevant timeframe. As Marines do best, we have adapted to this 
challenge and are developing bridging solutions to experiment with LCU-
1700s and leased Expeditionary Fast Transports (T-EPF) and SLVs. While 
these platforms will inform the eventual employment of the LSM, they 
will fall short of desired capabilities if called upon in an 
operational setting. Our modernized expeditionary forces need a 
comparably modern mobility platform to bring the full weight of their 
capability to bear on competitors or adversaries, particularly in 
littoral regions.
                   force design campaign of learning
    Marine Corps Wargaming and Analysis Center (MCWAC): Wargames play 
an essential role in concept development and operational planning, and 
provide the basis for informed decisionmaking. The Marine Corps is 
undergoing a shift from human-driven to technology-enabled processes 
that will provide disproportionate benefits--not only to the Service, 
but the joint force writ large.
    Upon completion in 2024, the MCWAC in Quantico will provide a 
state-of-the-art facility designed to help decision-makers better 
visualize the threat environment, gain competitive advantages over 
adversaries, and simulate future operating environments. It will also 
provide data that informs force development, force management, and 
system functionality. Simulations will support existing and developing 
weapons platforms and capabilities in all regions of the globe.
    MCWAC will incorporate elements of artificial intelligence and 
machine learning to amplify decision accuracy on issues that determine 
the way we organize, train, and equip for the future fight. This 
facility will also provide a critical asset to the joint force and 
senior leadership currently unavailable in the National Capital Region. 
Its location facilitates participation by joint, interagency, and 
multinational organizations, in addition to Service-specific analysis.
    Lessons Learned: Between July 2019 and December 2022, we executed 
25 wargames. This calendar year, we will conduct another 9 wargames and 
welcome the participation of any Member, or their staff, interested in 
observing. These wargames will primarily focus on two subjects: (1) 
reconnaissance and counter-reconnaissance, and (2) III MEF deployment 
and sustainment during major combat operations.
    One of the persistent lessons from our wargames is that our current 
logistics concepts and capabilities are not optimized for maritime 
campaigns in a contested environment. Improving joint and combined 
logistics integration, and streamlining logistics C2, are critical 
areas for further planning and development. The number and capabilities 
of current logistics distribution platforms are insufficient to 
adequately deploy, maneuver, and sustain stand-in forces. Due to 
geographical distribution of forces, all Services will be challenged to 
meet their sustainment requirements. This suggests the Marine Corps 
will have reduced access to connecters under the operational control of 
the other Services.
    Our learning is continuous, and we have already refined some of our 
initial Force Design decisions based on that learning. For example, 
when we initially reduced the number of cannon batteries, we assumed 
that the existing 6-gun per battery model would be sufficient to meet 
requirements. After additional study, we decided to expand those 
batteries back to their original, pre-2015, 8-gun structure and added 
back two batteries. Next, we initially assessed 10-plane fighter-attack 
squadrons (VMFA) as the operationally suitable and sustainable approach 
for the future force. After multiple studies, a series of experiments 
and wargames, and emergent capabilities development, we know the 10-
plane model requires redress and are undertaking that effort now. 
Likewise, initial assessments of our heavy-lift helicopter capacity 
demonstrated we could cut several squadrons; yet real-world 
considerations have resulted in a modification to our original plans 
and restoration of some of that structure and capacity.
                        amphibious warfare ships
    Achieving the priorities of the National Defense Strategy requires 
a Navy that creates advantage for the joint force across the 
competition continuum. Sustaining and recapitalizing our nuclear 
deterrent and nuclear command, control, and communications systems; 
enhancing and expanding our undersea advantage; and creating advanced 
naval expeditionary forces that consist of all classes of ships and are 
capable of persisting and prevailing against any threat, are all things 
we must do now. We cannot create and sustain this force on the time 
horizons necessary to achieve competition and deterrence objectives 
without a significant expansion of our defense industrial base, which 
is currently organized for peacetime efficiency. We are a maritime 
nation that requires naval forces capable of answering the Nation's 
call, whenever or wherever that might be. Amphibious warfare ships are, 
and will continue to be, a critical component of the Nation's fleet. 
They provide an essential capability to the joint force that cannot be 
overstated. As the amphibious fleet requirement authority, as 
designated in the FY23 NDAA, it is my obligation to ensure this 
Committee is aware of the current status of your amphibious fleet.
    Secretary of the Navy Amphibious Ship Studies: Since 2019, three 
DoN studies have examined amphibious warfare ship force structure 
requirements. Combining the findings of those studies with amphibious 
warfare ship readiness trends over the past 10 years and projected ship 
availability rates, I conclude that the Nation requires no fewer than 
31 traditional amphibious warfare ships (10 LHA/LHD and 21 LPDs/LSDs) 
to ensure the warfighting readiness and responsiveness of amphibious 
naval forces.
    The Importance of Amphibious Warfare Ships and the ARG/MEU: Our 
Nation's amphibious warfare ships enable Marines to execute three 
essential missions in support of the National Defense Strategy. First, 
unlike traditional surface combatants whose role is to sink enemy 
surface combatants and submarines or destroy enemy aircraft and 
missiles, amphibious warfare ships are meant to project the national 
power of the United States globally as both a warning to our 
adversaries and as a visible sign of our commitment to allies and 
partners. Our defense strategy clearly identifies those allies and 
partners as a source of our strategic advantage. As Secretary Austin 
has previously stated, we ``need resources matched to strategy, 
strategy matched to policy, and policy matched to the will of the 
American people.'' Our strategic aims are clear: we must deter any act 
or activity intended to disrupt the rules-based international order. 
Our strategy is to not fight unless necessary; we seek only to deter 
conflict. Effective integrated deterrence requires amphibious warfare 
ships. More so than any other Marine Corps operation, activity, or 
investment, amphibious warfare ships with embarked Marines provide a 
flexible, scalable, and visible capability for our combatant commanders 
to employ at the time and place of their choosing in support of 
integrated deterrence campaigning.
    Second, amphibious warfare ships enable Marines to immediately 
respond to crisis or contingency. When the Japanese nuclear reactor in 
Fukushima was damaged by an earthquake in 2011, an amphibious Task 
Force responded immediately. Non-combatant evacuations in Lebanon, the 
response to Hurricane Katrina in New Orleans, the rescue of downed U.S. 
aircrew in contested areas, and numerous other situations around the 
world have all required an amphibious response, either due to lack of 
inland access or a determination that a large U.S. military footprint 
ashore would exacerbate an already dire situation.
    Third, amphibious warfare ships and their embarked Marines ensure 
the President and his ambassadors, as well as all U.S. citizens living 
outside the United States, have the on-call crisis response protection 
required to ensure their safety. Whether in Haiti, Venezuela, South 
Sudan, Yemen, Eswatini, or anywhere else on the globe, MEUs are ready 
to respond and protect. We must maintain forward-deployed ARG/MEUs with 
the operational reach to rapidly respond to our highest threat 
consulates and embassies globally. Marines forward-deployed aboard 
ships are the operationally desirable solution.
    Lastly, the 31 combined amphibious warfare ships are vital 
components of our Nation's seven ARG/MEUs. This number of ships allows 
the Nation to maintain at least two ARG/MEUs at sea, with the option to 
surge to five. Assuming our present trajectory, we will fall below the 
congressionally mandated floor of 31 amphibious warfare ships. From my 
perspective, this is a result of divesting these platforms faster than 
we are procuring their replacements. The result of not meeting this 
requirement became most acutely visible when we were unable to provide 
traditional disaster-relief response following the earthquake in Turkey 
earlier this year. Our ARG/MEU deployments are a visible sign of 
commitment to our allies and partners and provide evidence to the PRC 
of our readiness to contest any malign activities. They also provide a 
visible sign to Russia about our commitment to NATO. In fact, when the 
Prime Minister and Minister of Defense for Sweden wanted to send a 
clear signal to Russia regarding Sweden's intention to join NATO, they 
did so by making a statement on the flight deck of the USS Kearsarge--a 
Wasp-class amphibious assault ship.
    LPD Flight II Program: The PRC is accelerating their production of 
amphibious warfare ships. We cannot overlook the fact that since 2019, 
the People's Liberation Army Navy (PLAN) has launched three Type 075 
``LHA-like'' and three Type 071 ``LPD-like'' amphibious warfare ships. 
The PLAN intends to launch an additional five Type 075 ''LHA-like'' 
amphibious warfare ships in the next 5 years. It appears that the PLAN 
sees amphibious warfare ships as highly relevant and a critical 
instrument in power projection as evidenced by their recent deployments 
extending beyond the South China Sea. In my opinion, there is also a 
soft power component to our amphibious warfare ships that cannot be 
replaced by other platforms. It is obvious the PRC is learning this 
lesson and is pursuing their own amphibious warfare ship program as a 
competitive act.
    Next, an LPD's or any other amphibious warfare ship's vulnerability 
to an anti-ship missile is no more relevant to its value than an 
aircraft's vulnerability to being shot down is relevant to its value. 
Over 5,000 helicopters were destroyed during the Vietnam War, yet we do 
not hear persistent arguments related to their survivability. In a 
recent series of wargames held by the Center for Strategic and 
International Studies, 2 carriers and 10--20 destroyers and cruisers 
were sunk in the Pacific during each of the 24 iterations. Just as 
these wargames do not signal the irrelevance of these surface warships, 
conjecture about the survivability of amphibious warfare ships does not 
either. Instead of focusing exclusively on the survivability of 
platforms in a high-end fight, we should instead seek an appropriate 
balance of capabilities needed to effectively campaign and maintain 
deterrence with those capabilities optimized for major war. As 
evidenced by constant year cost, the LPD Flight II is the most 
effective and affordable answer until a follow-on amphibious warfare 
ship is developed.
                 force design and marine forces reserve
    The Marine Innovation Unit (MIU), manned by Marine Reservists, was 
recently established aboard Stewart Air National Guard Base in New 
York. This cutting-edge unit will make considerable contributions by 
focusing Marine talent toward accelerated identification and adoption 
of advanced capabilities, transforming naval service capacity for 
technology employment, and retaining and investing in human capital. 
MIU is expanding Marine Corps reach into the wider innovation ecosystem 
and developing key partnerships with the Defense Innovation Unit (DIU), 
NavalX, Army Futures Command, and others to increase tempo and progress 
toward Force Design objectives.
    The MIU is just the beginning. We continue to explore the efficacy 
of establishing a maritime reconnaissance capability within our Reserve 
Component (RC) as part of our larger multi-domain reconnaissance 
initiatives across the force. We are currently evaluating the potential 
to establish a reserve MQ-9 squadron, as well as reserve augmentation 
detachments with active duty squadrons.
    In addition to its role supporting Force Design, Marine Forces 
Reserve (MARFORRES) continues to function as both an operational and 
strategic reserve to augment and reinforce the Active Component (AC). 
In 2022, more than 1,100 Marines and Sailors activated to support 
Operation ALLIES WELCOME (OAW), honing their security and humanitarian 
relief skills. From that activation, 103 Marines volunteered to deploy 
to OAW-Kosovo aboard Camp Bondsteel. Finally, as the Service brought 
new capabilities online during FY22, MARFORRES provided High Mobility 
Artillery Rocket Systems (HIMARS) and Amphibious Assault Vehicle (AAV) 
rotations in support of USINDOPACOM requirements. This augmentation 
enabled the AC to execute Force Design experimentation and unit 
transitions without an impact on combatant commands. The Marine Corps' 
continued employment of the RC demonstrates our total force approach 
and has proven to be a critical component of force modernization 
efforts.
           force design and marine special operations forces
    As part of the larger Force Design effort, our Marine special 
operations forces are modernizing through their Next Generation Raider 
Force (NGRF) initiative. The NGRF is intended to implement the 
strategic shaping and reconnaissance (SSR) operating concept, and its 
two major sub-components--irregular warfare and special reconnaissance, 
both focused in the littoral regions of the globe. In a manner 
consistent with other Marine forces, MARSOC seeks to provide the joint 
force with the capability to shape the operating environment; 
illuminate adversary actions, activities, and intentions; and provide 
options to impose cost, both kinetically and non-kinetically, from 
competition to conflict.
                           talent management
    Talent Management 2030 (TM2030) directed accelerated personnel 
reforms and oriented the Service toward retaining more experienced 
Marines. In February 2022, I directed the Assistant Commandant of the 
Marine Corps to form a Talent Management Strategy Group to align and 
harmonize Service-wide talent management efforts. This group focuses on 
future demographics, economic, and human capital trends, while working 
with academia, research organizations, pertinent departments in HQMC, 
and commanders in the FMF to identify initiatives that will better 
align individual abilities, skills, and desires with the warfighting 
needs of the Service. Since the release of TM2030, we have better 
aligned departments and organizations involved in talent management, 
assessed, and mapped out interdependencies of total force personnel 
policies, and begun to generate momentum with a sense of urgency. 
Leveraging authorities previously enabled by Congress, we enacted nine 
initiatives in 2022, which we will expand and accelerate in 2023:
    Commandant's Retention Program (CRP): During FY23, the CRP offered 
pre-approved reenlistments to top-performing Marines by streamlining 
the process and giving priority access to primary military occupational 
specialty (MOS) monitors for duty station and assignment options. The 
CRP resulted in a 72 percent increase of first-term reenlistment 
submissions by top-performing Marines with the average reenlistment 
approval accomplished in 24 to 48 hours, much quicker than the previous 
norm. Going forward we will expand the program to more first-term 
Marines as well as our career force.
    Staff Non-Commissioned Officer (SNCO) Promotion Board Realignment: 
Beginning in FY24, we are realigning SNCO promotion boards to sequence 
more effectively with the assignments and reenlistment processes. This 
initiative will reduce SNCO billet gaps in the FMF and decrease the 
processing time of reenlistment packages. The realignment will provide 
greater predictability for SNCOs and their families while dramatically 
reducing the number of permanent change of station (PCS) moves across 
the force.
    Recruiting Station Commanding Officer Selection Board: We 
implemented two initiatives for the fiscal year 23 Recruiting Station 
Commanding Officer (RSCO) selection board. First, officers now have the 
opportunity to volunteer for command, including officers otherwise not 
scheduled for consideration. Second, officers may also request removal 
from RSCO consideration for 1 year, without penalty, should they prefer 
to complete a deployment or other professional obligation, or due to a 
personal life circumstance.
    Special Duty Assignment (SDA) Volunteer Program: Prior to 2022, we 
screened and selected Marines for Special Duty Assignments en masse. 
But last year, we launched a pilot SDA volunteer program, expanding 
incentives to provide duty station preference for volunteer recruiters, 
drill instructors, and combat instructors. As a result, volunteers 
increased by 62 percent, reducing the number of involuntarily screened 
Marines by 38 percent. This minimized disruption to our Marines, their 
families, and FMF units while also reducing SDA school attrition. We 
will improve and expand this program in 2023.
    MarineView 360-Degree Leadership Review: MarineView360 is a 
development tool for leaders that helps Marines identify their 
strengths, personal blind spots, and areas for focused improvement 
through the polling of their supervisors, peers, and subordinates. 
Leaders receive feedback and advice through a dedicated mentor and 
coach. The MarineView360 pilot began with a group of 150 sitting 
commanders and is now leveraging the experience of 200 additional 
selected commanders and senior enlisted advisors. The final phase of 
the pilot will expand to 1,000 Marines of varying rank from gunnery 
sergeant to colonel.
    Officer Promotion Opt-Out: Starting in 2022, both the AC and RC 
offered certain officer populations the ability to opt-out of 
consideration for promotion once without penalty. This allowed officers 
increased flexibility in their career paths to pursue unconventional 
career experiences or formal education that would otherwise take them 
off track for key developmental assignments. We are currently exploring 
the expansion of this initiative to enlisted Marines to afford them the 
same flexibility in their careers.
    Digital Boardroom 2.0 (DBR 2.0): DBR 2.0 increases the 
functionality and accuracy of information presented to board members, 
enhances the conduct of virtual boards, safeguards data, and improves 
this critical talent management process. The Enlisted Career Retention 
and Reserve Aviation boards successfully used DBR 2.0 in 2022. With the 
availability of cloud-based data, we will expand use of DBR 2.0 while 
simultaneously assessing the outcomes, cost and time savings, and 
professional depth and breadth of board members to benchmark with our 
legacy process.
    Separate Competitive Promotion Categories: To meet the demands of 
the future, the Marine Corps must retain the highest quality officers 
with the necessary skill sets at all ranks. To that end, we are 
exploring options to reorganize the unrestricted officer population 
into separate competitive categories to better meet the Marine Corps' 
needs for diverse expertise and experience at all ranks by competing 
for promotion with peers having similar skill sets, training, and 
education. We will conduct a pilot program to evaluate the merits of 
this reorganization during the 2025 field grade officer promotion 
boards.
    Career Intermission Program (CIP): Many Marines desire to pursue 
specialized education, or to focus on family for a significant life 
event. The CIP is an initial step toward allowing Marines an option to 
temporarily pause their active-duty service and later resume their 
careers without penalty. This program enables career flexibility, and 
in doing so, also encourages retention of experienced, talented 
Marines.
                      talent management way-ahead
    Manpower Information Technology System Modernization (MITSM): In 
February 2022, Deputy Commandant, Manpower and Reserve Affairs (DC, 
M&RA), created a business capability requirements document that 
outlines the capabilities required to begin the MITSM acquisition 
process. MITSM will aggregate legacy systems and capabilities into a 
device-agnostic, data-driven, and dynamic human resources information 
technology solution that meets the evolving needs of the Marine Corps' 
talent-based work force. One aspect of the MITSM will be a web-based 
``talent marketplace,'' which will enable a collaborative and 
transparent assignment process and increase the role of both commanders 
and individual Marines. This capability will help us better align the 
talent of individuals with the needs of the Service to maximize the 
performance of both. Despite its criticality to modernizing our talent 
management systems and processes, MITSM is currently challenged by the 
acquisition process.
    Potential Implementation of ``Indefinite End of Active Service'' 
Policy for Enlisted Personnel: As we seek to mature the force, we also 
seek to eliminate antiquated processes and policies that induce both 
friction within the personnel system as well as personal and familial 
stress. There is little reason why those who have served honorably for 
16+ years need to worry about re-enlistment before completing twenty-
years of service. This year, we will explore the feasibility of senior 
SNCO career designation to establish an indefinite expiration of active 
service. This shift will align senior SNCO retention practices with 
those of officers, increase flexibility in assignments, reduce 
administrative burden and needless paperwork, and minimize uncertainty 
for SNCOs and their families.
    Small Unit Leader Initiative: Under the current policy, first-term 
Marines are ineligible for promotion to sergeant. While the spirit of 
that policy is reasonable, it creates a disincentive to the highest 
performing Marines across the force by establishing an administrative 
obstacle they cannot overcome regardless of individual talent. Going 
forward, if one of our talented Marines with at least 36-months of 
service wishes to re-enlist, then that Marine will become eligible for 
promotion to sergeant upon their re-enlistment. This program will 
incentivize the most talented who desire to stay for another enlistment 
and should help mitigate the persistent need for sergeants across the 
FMF.
    Active and Reserve Permeability: During the next year, we will 
explore options to increase the permeability between the AC and RC. The 
aim is to better match the diverse--and often immediate--operational 
needs of AC commanders with the specialized skills of individual 
Marines in the RC. Due to statutory limitations on reserve employment, 
we will work with the Administration to identify potential 
opportunities for improvement to AC-RC permeability.
    Orders Issuance: In an attempt to give individuals and their 
families as much time as possible when executing a PCS move, we will 
increasingly attempt to issue orders up to twelve months before the 
execution date. We will also assess the feasibility of issuing follow-
on assignment orders to those individuals selected for resident 
professional military education. This should do two things. First, it 
should provide greater clarity to service members and their families to 
facilitate proper planning for any school transitions, childcare needs, 
and special healthcare needs, and will provide spouses more time to 
secure desirable employment. Second, earlier issuance of orders would 
allow the Service to clarify a unit's incoming personnel picture to 
increase long-term planning, effectiveness, and risk management.
    Five-Year Orders: The importance of unit cohesion cannot be 
overstated. To achieve that cohesion, we need to shift from a three-
year tour model toward a five-year tour model--with notable exceptions 
for some of locations such as Okinawa, Japan and Twentynine Palms, 
California. In addition to creating greater unit cohesion and, as a 
result, greater readiness, a five-year model would facilitate 
improvements to family stability and family readiness. Using the 
standard twenty-year career timeline, the new assignment length would 
only require a family to relocate three times after the initial 
assignment. This suggested tour length should enable children to finish 
elementary or secondary school in one location, and would enable 
extended periods of spouse employment--minimizing the impacts on dual-
income households.
    Assignment Incentive Pay/Hardship Duty Pay: Congress and the 
Department have provided us with the authorities necessary to 
incentivize service at some of the more challenging duty stations and 
we have a plan to use them. We will increasingly utilize Assignment 
Incentive Pay (AIP)--consistent with the other services--to increase 
the attractiveness of hard-to-fill duty stations. Notably, Army 
soldiers stationed at Fort Irwin, California or in Korea, have many of 
the same concerns as our Marines at Twentynine Palms and Okinawa. In 
addition to AIP, we are exploring other authorities provided by 
Congress, to incentivize duty by our most talented Marines in our 
hardest-to-place locations.
    Weapons Systems Officers (WSO) & Electronic Countermeasures 
Officers (ECMO): As we transition from the F/A-18D and EA-6B to the F-
35, we will have the opportunity to transition some of our most 
talented Naval Flight Officers (NFOs) currently serving as WSOs and 
ECMOs into our expanded uncrewed aircraft squadrons (VMUs). At present, 
we have 95 WSOs and 32 ECMOs. While the legacy aircraft these officers 
were previously associated with are being retired, their individual 
skills remain critical to the future force.
    Attracting, developing, incentivizing, and retaining dedicated 
professionals that increase our readiness and lethality is a priority 
and necessary to improve our efficacy as a force. The initiatives 
undertaken since the publication of TM2030 demonstrate our commitment 
to our expeditionary warfighting legacy and our drive to fight and win 
in 2030 and beyond. Our performance in future battles will be defined 
by the investments we make in our Marine Corps today. All actions to 
evolve our talent management system are aimed squarely at supporting 
our warfighting requirements. They will incentivize and optimize our 
talent and sustain our ability to serve as the Nation's premier 
expeditionary force in readiness within the rapidly evolving world we 
face.
                        recruiting and retention
    The Marine Corps is not insulated from the challenging recruiting 
and retention environment impacting the entire DoD. The FY24 budget 
supports an active-duty end strength of 172,300 Marines, an achievable 
target. The Marine Corps will monitor and reevaluate end strength, even 
as we continue to increase retention as part of our Talent Management 
strategy. We appreciate the support and flexibility that Congress 
provides us on retirement, retention, and end strength.
    In 2022, we achieved our annual recruiting mission and exceeded 
both our first-term re-enlistment goal (101 percent) and our 
subsequent-term re-enlistment goal (107 percent). To put this in 
perspective, 5,063 first-term Marines re-enlisted in 2018, while 5,820 
re-enlisted in 2022. Further, we are re-enlisting those Marines 
earlier. In FY22, the Service met its First Term Alignment Program 
(FTAP) mission on 8 July 2022, which at the time was considered a major 
accomplishment. In fiscal year 23, we met our FTAP mission of 6,225 
Marines on 6 February 2023--a full 6 months earlier--and retained 
higher quality Marines than we have in the last few years.
    The Marine Corps met or exceeded both our FTAP and Subsequent Term 
Alignment Program (STAP) goals across the force for the first time in 
13 years. In FY23, we expanded early re-enlistment authorizations for 
Marines with at least 24 months' time in service from 200 to 600. We 
reached 150 in the first weekend, and then reached 200 (last year's 
total) within three weeks. We then expanded this program to accommodate 
the 700+ submissions we had received by 1 February this year. 
Completing these early re-enlistments will help mitigate any recruiting 
challenges across a two-year period (FY25-27). In FY23, we satisfied 
our retention goal of infantry Marines before December for the first 
time in over a decade. As a result of these retention efforts, we are 
gradually maturing the force. This will result in more mature non-
commissioned officers leading our youngest Marines and will generate 
better operational outcomes on the modern battlefield.
    As noted by RAND economist Dr. Beth Asch, we should never forget 
that we do not have an all-volunteer-force; but rather, a predominantly 
all-recruited force. To overcome current challenges in recruiting, we 
have challenged all assumptions. We have also resurrected and reviewed 
ideas and options previously generated over the years, but never 
actioned or implemented. The results have been very promising.
    While some assumed five year ``infantry-only'' contracts would not 
be well received, that assumption has been invalidated. During the past 
year, we conducted a limited experiment in which we offered recruits a 
60-month infantry-only contract. This 400-spot program ``sold out'' 
immediately and was subsequently expanded to accommodate the demand. 
Infantry-only contracts ensure unit cohesion and almost guarantee 
Marines two deployments in a single contract, mitigating unit turnover 
between deployments. Since the completion of that pilot program, we 
continue to find that our young Marines prefer the stability afforded 
by these 60-month contracts and are choosing this option over 48-month 
contract options.
    Some assumptions related to the utility of monetary incentives have 
also been invalidated. Big sums of money are not required to 
incentivize potential Marine recruits. This past year, we implemented a 
$5,000 shipping bonus program for new enlistees with great success. In 
exchange for this one-time payment, we direct shipping at a date of our 
choosing, which gives us greater predictability and flexibility. This 
experiment was very successful. We also implemented a $9,000 shipping 
bonus program with similar success. In exchange for this one-time 
payment, the individual's contract time does not officially begin until 
they arrive at their first unit. As a result, those in this program 
that become infantry Marines will average 2 deployments during their 
first contract, because their initial 7 months of entry-level training 
will not count towards their obligated service.
    Finally, we want to make the statement, ``there is always boat-
space for talent,'' a truism across the Marine Corps. In the past, 
talented individuals were denied re-enlistment due to ``closed'' MOSs 
or other administrative obstacles beyond their control, such as an 
inability to transition from an MOS they didn't choose or perhaps never 
wanted. These talented Marines want to re-enlist, but they also want a 
new (primary MOS) PMOS. The ability to ``laterally move'' talent into a 
new PMOS is an obstacle at present, but we are working on this issue. 
This is a training issue, not a personnel issue. Regardless, we are not 
going to let 8-12 weeks of retraining costs prevent us from benefiting 
from the talents and leadership of these proven Marines for another 4 
years or more of service. If we must choose between proven leadership 
and MOS credibility, we will prioritize proven leadership for a greater 
return-on-investment. Retraining costs less than the $42,000 cost to 
recruit a Marine. While recruiting will remain challenging for the 
foreseeable future, the Marine Corps is up to the challenge. But there 
is one option that we will not exercise: we will not lower our 
standards. This is non-negotiable. Despite the well-known recruiting 
challenges in recent years, from 2018 and 2022, the average Armed 
Forces Qualification Test (AFQT) and average General Technical (GT) 
scores of our infantry Marines (0311s) have actually increased across 
the force.
                               childcare
    Addressing the availability of childcare remains a top priority for 
the Service. Unfortunately, persistent supply and demand imbalances 
have resulted in unacceptable wait times for our Marine families. At 
present, there are notable waitlists for full-time childcare at Marine 
Corps Base (MCB) Quantico, MCB Camp Lejeune, MCB Camp Pendleton, and 
MCB Hawaii. These locations still maintain approximately 77%of the 
Service's unmet waitlist for ages six weeks to 5 years. This is 
primarily due to a shortage of qualified workers, high turnover due to 
less competitive pay, lengthy hiring and background check processes, 
seasonal PCS fluctuations, and facility renovations. While we have 
capacity to serve 6,523 children at present, we only have sufficient 
staff to serve 5,880 children. To provide a variety of options that fit 
families' needs and to mitigate lengthy Child Development Center (CDC) 
waitlists, we also offer fee assistance for eligible Marines who are 
geographically remote, reside more than 15 miles from an installation, 
or are assigned to an installation with a lengthy CDC waitlist.
    In 2022, with the support of OSD Office of Military Family 
Readiness Policy, we established the Child Care in Your Home (CCYH) 
Pilot Program. CCYH is a DoD fee assistance pilot program that helps 
military families cover the cost of full-time childcare (30-60 hours 
per week) provided in their homes.
    Designed to support families with non-traditional work schedules, 
care can be provided every day of the week and during non-traditional 
hours, such as evenings and weekends, or on rotating schedules. At 
present, we maintain 58 childcare facilities (32 CDCs and 26 school-
aged care facilities). Renovations are currently in-progress aboard MCB 
Quantico and Marine Corps Air Station (MCAS) Beaufort. We recently 
completed a $37.7M construction project aboard MCAS Miramar, which will 
provide 412 new childcare spaces to our families. In addition, we have 
construction planned aboard MCB Butler in Okinawa for a new school-aged 
care facility, aboard Camp Pendleton for a new CDC that will add 250 
additional spaces, and aboard MCB Camp Blaz in Guam to satisfy the 
needs of 276 children in the future.
                       substance abuse prevention
    The Marine Corps' Substance Abuse Program focuses on three distinct 
areas: drug demand reduction, alcohol misuse prevention, and substance 
misuse non-medical counseling services. As part of our continued 
vigilance, we have expanded our urinalysis testing to include both 
illicit and prescription drugs, including the most misused and abused 
opiates. One hundred percent of urine samples are now tested for 
fentanyl. Additionally, due to a regrettable resurgence in lysergic 
acid diethylamide (LSD) in some of the communities surrounding our 
major bases and stations, we added LSD testing back to the standard 
drug testing panel. Delta-8 tetrahydrocannabinol (THC) was also added 
to the standard drug testing panel in July 2021, expanding testing for 
THC products. THC remains the most prevalent drug detected during our 
testing. While expansion in testing did result in an increase in 
positive test results, the Marine Corps remains below the DoD benchmark 
for positive test results and current data indicates that prescription 
drug misuse is low.
                 sexual assault prevention and response
    As a Service, we have focused on countering sexual assault within 
our ranks by professionalizing the prevention workforce, improving 
training for Marines at all levels, professionalizing the sexual 
assault response workforce, and strengthening an environment of 
accountability by establishing an Office Special Trial Counsel. As of 
January, our newly established Office of Special Trial Counsel reached 
IOC and is on track to reach FOC by December 2023, putting 
prosecutorial discretion for these offenses in the hands of trained 
attorneys. In addition to these efforts, the Marine Corps continues to 
implement the recommendations of the Independent Review Commission on 
Sexual Assault in the Military, as approved by the Secretary of 
Defense. These efforts include developing organizational structure, 
hiring qualified professionals, and ensuring our prevention workforce 
is trained and postured to provide this crucial support to commanders. 
We are also investing in education to enable prevention, focusing on 
leadership responsibilities to both prevent and respond to sexual 
assault and sexual harassment, and providing training for trauma-
informed leadership. While this larger societal problem persists, we 
are actively pursuing solutions to improve prevention and ensure 
offender accountability when prevention efforts fail.
                           suicide prevention
    As part of our larger human performance management efforts, we 
continue to examine our mental health programs and suicide prevention 
efforts. Every life lost to suicide is one too many. As an organization 
known for our camaraderie, we take every loss of life seriously and 
continue to pursue all opportunities to reduce the incidence of suicide 
amongst our Marines, Sailors, and their family members.
    The Secretary of Defense recently released a report from the 
Suicide Prevention and Response Independent Review Committee. The 
committee concluded that the most important preventative measure is 
engaged quality leadership, and we agree. This has long been a focus of 
ours, as have many of the recommended personnel reforms, which mirror 
our on-going talent management initiatives. We also embrace the 
Committee's conclusions about the criticality of access to mental 
healthcare professionals and services, and their recommendations 
related to TRICARE reform to enable such access.
                               healthcare
    Developmental Pediatricians: Generating ready forces requires 
building and sustaining readiness at-home among our military families. 
Military service is demanding. Extended training, frequent military 
moves, and routine deployments--scheduled and unscheduled--strain 
marriages and stress families, regardless of a Marine's rank or time-
in-service. That stress is magnified in cases where children have 
special medical needs, such as Autism Spectrum Disorder (ASD). 
Regrettably, we are currently unable to provide sufficient 
developmental pediatric care across the force, even in areas where we 
enjoy highly developed military healthcare infrastructure, such as San 
Diego or the National Capital Region. Parents are often forced to wait 
6 months or longer for an appointment. This is not acceptable. The 
scholarship is clear and undisputed: early intervention is the key to 
better outcomes for children with ASD. Today, we have four active duty 
and three civilian developmental-behavioral pediatricians to support 
the force, which is insufficient to meet the needs of our families. The 
force requires at least two developmental- behavioral pediatricians per 
medical treatment facility to meet the needs of our families. If 
providing these additional developmental pediatricians is considered 
unsupportable, then we would ask for Congress' support in creating 
legislation to make it easier for families requiring this care to 
obtain it from the civilian market. Parents should not be forced to 
choose between their profession and calling to serve, and their need to 
provide for their families.
    Defense Health Agency (DHA): The DHA has undertaken the largest 
transformation in the history of the military health system. From the 
lens of providing support to service members and families, this 
undertaking has failed to satisfy expectations, and has resulted in 
both unsustainable costs and degraded services. While the DHA is 
maturing in its role as a combat support agency (CSA), the lack of 
agreement between the DHA and military departments regarding DHA's 
roles and responsibilities as a CSA, as well as business rules 
governing employment of uniformed personnel inside the medical 
treatment facilities (MTFs), has created significant challenges. This 
problem is compounded by a recent exodus of military and civilian 
healthcare professionals due to ``burn out'' from the COVID-19 pandemic 
and operational tempo, the ability to double or even triple salaries in 
the civilian sector, and uncertainty and frustration over the DHA 
transition.Due to the nation-wide shortage, the DoD is competing for 
the same finite resources when attempting to hire contract healthcare 
professionals. Unfortunately, the DoD contract pay rate is near the 
lowest, if not the lowest, in the industry, making recruitment 
particularly challenging.
    In terms of improving the affordability of healthcare as promised, 
these cost savings have not been realized. In fact, the transition has 
come with higher costs. An additional undesired outcome of the movement 
away from Service authority, direction, and control of healthcare 
delivery is the lack of consideration for Service-specific requirements 
and the impact to healthcare operations. Specifically, in remote 
locations such as Okinawa and Iwakuni, decisions to reduce access to 
care inside MTFs has negatively impacted dependents and civilian 
personnel, which impacts operational readiness.
    I ask for your continued oversight of the DHA and help in 
addressing the overwhelming gap between DoD contract healthcare labor 
rates and the civilian market. The success of the military health 
system (MHS) requires the ability to hire qualified, civilian 
healthcare labor. The MHS must have contract rates that can compete in 
a highly competitive market for a finite and highly valuable resource. 
Failure to remedy this issue will have catastrophic consequences on the 
readiness of the force.
                         training and education
    The Marine Corps enjoys a hard-earned reputation as a learning 
organization. The previous 3 years of Service-level training exercises, 
along with other large and small exercises, wargames, and live force 
experiments, established a sound foundation for organizational 
learning. Collectively, they provided clear evidence that change is 
required. We have learned that today's training and education system 
must rapidly evolve to prepare individual Marines and units to succeed 
on an all-domain battlefield. Those changes are articulated in the 
recently published Training and Education 2030 report.
    Training and Education and the Russo-Ukraine Conflict: While the 
future remains uncertain, clear trends are emerging from the conflict 
in Ukraine that are consistent with much of what we have seen in other 
recent conflicts, evidencing the need for accelerated modernization 
across the joint force. However, we should not lose sight of the fact 
that the Ukrainians succeeded in the early phases of the conflict not 
because of superior equipment, but because they were adaptable--
especially at the tactical level--and rapidly innovated new concepts of 
employment to address specific areas where the Russians had achieved 
advantage. In fact, their bias for action, unit cohesion, and emphasis 
on decentralized C2 had a significant impact on the readiness of 
Ukraine's infantry and maneuver forces. These factors allowed Ukrainian 
battalions to effectively operate in and control battlespace we would 
normally associate with an Army Brigade or Marine Regimental Combat 
Team--units 3 or more times larger than a traditional battalion. The 
operational requirements associated with these expanded areas of 
responsibility are placing more and more demands upon junior leaders 
that can only be addressed through greater investment in the training 
and education of our Marines. The conflict is demonstrating that 
advanced capabilities will be available and employed at much lower 
tactical levels than we have witnessed in our own recent past. In 
future conflicts, we are going to ask junior leaders at the company 
level and below to do things battalion commanders may not have had the 
authority to do in recent years. It is clear this will require an 
increasing investment in the training and education of our leaders at 
all levels and across the entire joint force.
                                doctrine
    Doctrine establishes the basis for developing operational concepts 
and requirements. It also describes our understanding of how those 
capabilities are to be employed and ultimately, details training and 
associated resource requirements. Marine Corps Doctrinal Publication 
(MCDP) 1, Warfighting, tells us that doctrine ``establishes a 
particular way of thinking about war and a way of fighting. It also 
provides . . . a mandate for professionalism, and a common language.'' 
Our doctrine, including its bedrock in Warfighting, has given us a 
solid grounding in the essential elements of maneuver warfare, upon 
which we expect our philosophy of warfare to remain anchored for the 
foreseeable future. This is not enough. The character of warfare has 
always been subject to the constant and uneven pressures of 
technological advance and social and geopolitical change. Warfare's 
changing character means we must constantly review and revise our 
assumptions; they will change and we must change with them. Doctrine, 
in turn, must evolve, adapt, and keep pace. For example, in June 2022 
we published MCDP 8, Information, describing how the Marine Corps gains 
and exploits information advantages in all warfighting domains across 
the competition continuum. We also recently revised MCDP 4, Logistics, 
updating our doctrinal foundation of this critical warfighting function 
to meet the challenges of the future.
    Changes to our warfighting ideas, theories, and concepts must be 
expressed clearly and quickly. This leads to greater emphasis on the 
rapid creation and dissemination of doctrine at a level of specificity 
below that of our capstone publications and tied tightly to our 
campaign of learning, including feedback from the FMF. Most 
importantly, we must hold ourselves accountable for training and 
operating in accordance with our refined doctrine.
                 enhanced infantry and leader training
    14-week Infantry Marine Course (IMC): Before our IMC pilot effort 
began, the Marine Corps underwent a deliberate process to identify the 
infantry skills necessary to win in a fight against a peer adversary. 
During this process, Training and Education Command developed 39 
behaviors required for all infantry Marines. These required behaviors 
range from traditional skills like employing the service rifle, 
patrolling, and land navigation to skills such as ``embodying the 
Marine Corps' warfighting philosophy'' or ``manag[ing] signature.'' 
Based on feedback from our division commanders, a subset of 20 of the 
original 39 infantry behaviors were prioritized as a requirement for 
entry-level training. Those 20 infantry behaviors became the foundation 
for a new program of instruction (POI) and the first pilot of the 14-
week IMC.
    IMC Marines are held to a much higher physical standard to both 
enter training and to graduate than previously required. Marines 
earning the infantry MOS are now challenged to achieve first class 
scores on the Physical Fitness Test (PFT) and Combat Fitness Test 
(CFT), achieve a minimum swim qualification of Water Survival 
Intermediate (WSI), and pass an evaluation on the Shallow Water Egress 
Trainer (SWET), which simulates procedures for evacuating a sinking 
aircraft. Student physical graduation requirements also include a 10-
kilometer (km) Combat Endurance Assessment (CEA) and completion of a 
20km hike with a 75-pound fighting load.
    In addition to better physical fitness, IMC Marines develop better 
decisionmaking skills. By the end of the course, students make 
thousands of decisions, receiving constant feedback from both combat 
instructors and peers, significantly increasing the experiential 
foundation for sound decisionmaking. As IMC builds a better decision-
maker, it also produces a significantly more lethal Marine. IMC 
graduates are trained to a markedly higher standard in rifle 
marksmanship and are combat capable in all environments with the M27 
Infantry Automatic Rifle (IAR). They are further trained in the 
employment of medium machine guns, grenade launchers, anti-armor 
systems, and light mortars--all of which are new weapons skills for 
basic riflemen.
    Better-trained Marines generate operational tempo--a key to success 
in maneuver warfare. The outcomes thus far are remarkable. IMC 
graduates are trained to be quicker-thinking and better decision-
makers, more physically fit, and much more lethal at earlier points in 
their careers than their predecessors. All these things should increase 
the readiness of their units and the overall force. To date, 3,524 
Marines have graduated from this program. While it is too early to make 
any definitive conclusions, initial findings suggest IMC graduates may 
have lower non-EAS attrition rates.
   the modernized marine corps training environment (project tripoli)
    We train how we fight. But we are limited by the number of ranges 
and training areas available, environmental limitations, airspace 
restrictions, and several other factors that ensure Marines can employ 
the full range of capabilities they will have at their disposal. One 
solution to this challenge is to expand and modernize the Marine Corps 
training environment (MCTE) through an effort called Project Tripoli, 
which seeks the integration of the live, virtual, and constructive 
training domains. The MCTE is our combined arms training concept for 
the future that will enable us to realistically train and exercise with 
our advanced capabilities both internally and as part of the joint 
force. Importantly, it permits training with capabilities in a manner 
concealed from our adversaries and in ways that would otherwise be 
resource prohibitive in terms of materiel, ordnance expenditure, and 
personnel. The MCTE will enable combined arms training in the broadest 
sense and will allow new and expanded dimensions in force-on- force 
(FoF) exercise capabilities. Conceptually, a modernized MCTE integrates 
all training enablers--from high-fidelity flight simulators, to ranges 
and training areas, to FoF training systems--into C2 architectures and 
networks supporting training events. MCTE is not a single acquisition 
program, but a system comprised of multiple training programs. To 
further improve the MCTE network, we will continue to build 
interoperability among existing training systems as we bring new 
systems online, pre-designed with enabling technologies to support 
increasingly dynamic training environments.
    Our next big step will be to field our Force-on-Force Training 
System (FoF-TS) Next Program across the force to equip units with the 
training tools necessary to conduct realistic and challenging FoF 
training. This system is designed specifically to accommodate rapid 
changes and refinements in the training continuum. Additionally, it 
will process the tremendous amounts of sensor data needed for our FoF-
TS, UAS, cyber, electronic warfare, and loitering munition capabilities 
to facilitate readiness. The FY24 budget request for training and 
education modernization is $581 million.
                       training areas and ranges
    At present, ensuring sufficient range access and training in the 
Western Pacific region is challenged a by a lengthy supply chain, 
environmental constraints, infrastructure challenges, and access 
restraints. To ensure the persistent readiness of Marines in the 
region, the Marine Corps has a number of planned investments across the 
Commonwealth of the Northern Mariana Islands. Investments planned for 
Guam include: a live-fire training range complex, a multi-purpose 
machine gun range, and urban combat training facility, and a training 
support center. On Tinian, the Marine Corps is pursuing a platoon level 
live-fire and maneuver range and an explosive ordnance disposal range. 
These efforts are pending a positive determination of ongoing 
environmental impact studies. The Marine Corps is also involved in the 
Pacific Multi-Domain Training and Experimentation Capability (PMTEC) 
initiative. PMTEC will better integrate existing capabilities and 
expand the ranges and training areas available to Marines, to include 
the Joint Pacific Alaska Range Complex and the Pacific Missile Range 
Facility.
    Training areas and ranges in Alaska continue to grow in importance 
to overall Marine Corps readiness. The sophistication, instrumentation, 
infrastructure support, and sheer size of Alaska ranges make them 
indispensable for the development of 5th generation fighter aircraft 
tactics. During 2022, Marines participated in four joint exercises in 
Alaska, to include the high-end rehearsal exercise RED FLAG. The Marine 
Corps provided 38 F-35Bs across different phases of the exercise as 
well as leading edge air C2 capabilities. In 2023, we will expand our 
participation in exercises in Alaska to include Exercises NORTHERN EDGE 
and ARCTIC EDGE.
    While our efforts to prevent encroachment have focused on 
protecting the ranges and training areas we have, modernized training 
requirements are going to push us to expand training areas in multiple 
domains to ensure we have trained and ready forces to meet our Nation's 
needs into the future. MCAS Yuma makes an outsized contribution to the 
training readiness of Marine aviation due, in part, to the presence of 
Marine Aviation Weapons and Tactics Squadron One (MAWTS-1) and the 
conduct of the biannual Weapons and Tactics Instructor (WTI) courses. 
In addition to the decades long challenges associated with the location 
of the Yuma Fairgrounds, the continued use of Marine Corps Air Station 
(MCAS) Yuma's Barry M. Goldwater Range (BMGR) in support of modernized 
aviation training is at risk due to the loss of Flat Tailed Horned 
Lizard (FTHL) habitat associated with border wall construction. By risk 
we mean, the loss of habitat increases the likelihood that the FTHL 
would be listed under the Endangered Species Act. Listing the FTHL 
could result significant restrictions to our ability to train and 
experiment to meet force design objectives. To prevent this from 
occurring, we need to act now to secure necessary FTHL habitat and are 
leveraging the Readiness and Environmental Protection Integration 
Program as one tool to support habitat protection efforts.
    In addition to physical ranges, we will also leverage a variety of 
virtual ranges like the Persistent Cyber Training Environment (PCTE) 
for joint qualification requirements and rehearsals. The PCTE 
integrates capabilities that support continuous evolution of cyber 
training and exercises, enabling force readiness and driving decisions 
on tactical, operational, and strategic levels. Over the past year, the 
PCTE has expanded access to cyber operating forces in the FMF. We are 
confident that access to these modern training environments will 
significantly enable the all-domain nature of our Marine forces.
                      installations and logistics
    In recent years, we have identified logistics as the ``pacing 
function'' for warfighting. Among the seven warfighting functions, 
logistics most dictates the tempo of operations and the operational 
reach of a unit. No other warfighting function more profoundly affects 
our ability to persist in contested spaces. Moreover, logistics and 
sustainment capability and capacity have a deterrent effect. Persuading 
an adversary that a quick win is not possible by demonstrating an 
ability to generate, re-generate, and sustain combat power is, in 
itself, a deterrent.
    An uncertain future, the threat of peer and near-peer competitors, 
and developing challenges in all warfighting domains create wide-
ranging implications for sustaining the current and future force. To 
support emerging and future operational requirements against peer and 
near-peer adversaries, we will have to transform our approach to 
logistics. Simply put, we must transition from a force optimized for 
supporting sustained operations ashore to a maritime force capable of 
supporting operations in austere, expeditionary, and littoral 
environments that are contested across all domains. This process of 
change and adaption began with the release of our Installations and 
Logistics 2030 report and our revised foundational doctrinal 
publication on logistics, MCDP 4.
    While our current approach worked well in the past, it is 
insufficient to meet the demands of the future operating environment, 
particularly when contested across all domains. The magnitude of change 
required to prepare the Marine Corps installations and logistics 
enterprise to support the future force mandates a fundamental 
reevaluation of our approach to logistics.
                 installations assessment and resources
    Ready and resilient bases and stations are a critical requirement 
today and into the future. Years of under-funding the installations 
portfolio has resulted in a funding shortfall across the FYDP in the 
tens of billions of dollars. Earlier decisions to take near-term risk 
in these accounts and shift resources to support readiness-related 
accounts resulted in longer-term systemic risks to the Service that we 
must address.
    Beginning in 2023, we will engage in a comprehensive and informed 
infrastructure recapitalization that directly contributes to the 
requirements of the future force. This will require additional funding, 
and while it will take more than one FYDP to accomplish, the foundation 
must be laid today.
      facilities sustainment, restoration and modernization (fsrm)
    Fiscal Year 2024 will be the second year using our pilot Readiness 
Maximization Tool. This pilot program prioritizes restoration, 
modernization, and demolition in order to achieve a better facility 
readiness outcome as opposed to the traditional emphasis of focusing on 
sustainment metrics. The Marine Corps' FY24 FSRM budget request for the 
active and reserve forces totals $1.3B.
                    installations plan 2023 (iplan)
    In the near future, we will publish our first ever Installations 
Plan (IPLAN), modeled after the Aviation Plan (AVPLAN), to create a 
shared understanding of the Marine Corps Installations Command (MCICOM) 
enterprise. We intend to produce this reference document annually to 
show military construction (MILCON) and FSRM funding framed across time 
by region, base, and station. The report will further identify the five 
priority MILCON projects (funded or unfunded) by base and station for 
the next 1--10 years. Finally, future versions of the IPLAN will 
include a threat-based resiliency assessment by base and station 
regarding resiliency of force protection; airfield operations; range 
support; and command, control, and communications. It will also 
describe the scope, cost, and schedule to achieve resilience.
              milcon priorities in support of force design
    The FY24 budget includes $1.3B to support a total of 16 projects, 
which includes both planning and design. This funding includes seven 
projects totaling $457 million to continue our efforts to relocate 
Marines from Japan to Guam.
                             infrastructure
    Water Infrastructure: Aging drinking water and wastewater systems 
were not designed to meet increasingly stringent environmental 
requirements. These old systems also require significant maintenance to 
continue operation. Since FY16, the Marine Corps has invested 
approximately $400 million to upgrade or replace drinking water and 
wastewater infrastructure, improving environmental compliance and 
reducing risk to personnel and the environment. We are currently 
evaluating the need for future support.
    Energy Infrastructure: The vast majority of our installations are 
dependent on a commercial electrical grid vulnerable to disruption due 
to a variety of threats such as aging infrastructure, severe weather, 
and both physical and cyber-attacks. While procedures and 
infrastructure are in place to respond to short-term power outages, 
there is a growing need to ensure we can maintain essential functions 
and critical services during a prolonged outage. As part of our renewed 
focus on installations, we will produce energy resilience plans by base 
and station in 2023.
    Fuel Storage Tanks: In April of 2022, in response to an inquiry by 
the Assistant Secretary of the Navy for Energy, Installations, and 
Environment, MCICOM conducted a risk assessment of significant (>10,000 
gallon) fuel storage tanks located on Marine Corps installations, and 
the risk to drinking water sources and systems. This assessment 
included tank condition, tank location relative to systems and sources, 
and condition and adequacy of containment systems. The assessment 
concluded no immediate threat for this population of storage tanks. 
However, the assessment did identify two >10,000-gallon tanks with a 
high-risk for release due to condition, but due to their locations, 
concluded any release from either tank would not impact water sources 
or systems. Since the completion of this assessment, the high-risk tank 
located aboard Camp Fuji has been replaced, and the other tank, located 
aboard MCB Quantico, is scheduled to be replaced this fiscal year. As 
an additional risk mitigation, the tank aboard MCB Quantico has been 
drained pending replacement.
    Barracks: The Marine Corps possesses 672 barracks with 155,329 bed 
spaces. On average, those barracks are 32 years old and in need of 
renovation. In FY22, we renovated 14 barracks for a total cost of $118 
million, and in FY23, we plan to renovate another 16 at a cost of $262 
million. The barracks renovations completed in FY22 to FY23 will 
positively impact 8,116 Marines living in them. The per barracks 
renovation costs over the past 2 years have risen from $8.4M to $16.4M. 
At present, 16 percent or 108 Marine Corps barracks are in poor (Q3 on 
the facilities conditions index ratings) or failing (Q4) condition. 
Current estimates to recapitalize, sustain, or demolish require an 
additional $3 billion to return all assets to Q2 (>80 facility 
condition index) by 2031. Clearly Q2 is not our goal; Q1 is and will 
be. In FY24, we plan to use approximately $270 million to renovate 25 
barracks including some renovations previously deferred.
                           guam and h2b visas
    Earlier this year the Marine Corps reactivated Camp Blaz--a 
facility that secures a geographically distributed and operationally 
resilient posture for the Marine Corps in the Indo-Pacific. It also 
strengthens DoD's ability to deter, defend, and support allies and 
partners in the region. The continued build-out of Guam projects will 
require a reassessment of the H-2B visa issue, based on available 
qualified workforce.
                       climate change resilience
    Currently, the Marine Corps is undergoing a review of installation 
master plans to build resilience against all hazards such as wildfires, 
water scarcity, rising sea levels, and hurricanes. Marine Corps Recruit 
Depot (MCRD) Parris Island (PI) has already completed a master plan 
(2021) and a Climate Change Resiliency and Adaptation Plan (2020), 
which are being used to develop MILCON and FSRM investment projects to 
reduce existing and projected localized flooding. The Military 
Installation Resilience Review of the low country community surrounding 
MCAS Beaufort and MCRD PI developed a toolkit for structural 
interventions and nonstructural planning approaches to enable the low 
country communities to adapt to climate change. The toolkit has been 
applied to three pilot projects: St. Helena Island wastewater treatment 
plant, Lady's Island neighborhood, and the Shell Point Interchange. 
MCRD PI's efforts to address sea-level rise and climate change with 
regional conservation groups and the local community is growing 
stronger. MCRD PI currently has five initiatives in process with our 
regional partners: Lowcountry Sentinel Landscape Application, National 
Fish and Wildlife National Coastal Resiliency Fund (carbon 
sequestration $550,000), South Carolina Department of Natural 
Resources, Readiness and Environmental Protection Integration Program, 
and US Army Corps of Engineers.
                               conclusion
    On-going conflicts across the continent in Africa, along the line-
of-actual-control between India and China, along the Turkish-Syrian 
border, and in Ukraine remind us that despite our best efforts, we can 
never know with certainty when, where, or how an adversary might 
precipitate conflict--especially against an ally or partner. We must be 
ready--not simply available--to respond tonight, tomorrow, and every 
night into the future. We are. As a Service, we must ensure that your 
crisis response force is globally deployable. We are. But we don't have 
the luxury of building a force for only one threat, one region, or one 
form of warfare. The Marine Corps must be organized, trained, equipped, 
and postured for the full range of operations in places we might not 
expect, and on timelines we did not anticipate. We are. In these times 
of increasing complexity and uncertainty, the Nation needs one force, 
maintained at the highest levels of readiness, that can respond to the 
crises that few saw coming. We are that force.
    This Committee's support to our modernization efforts--anchored on 
Force Design 2030, Talent Management 2030, Training & Education 2030, 
and Installations and Logistics 2030--has been crucial to our success 
thus far. Today is an opportunity to re-recommit to our modernization 
program and help facilitate its acceleration, while at the same time 
addressing issues often mistakenly deemed secondary to readiness such 
as barracks, housing, childcare, and healthcare. Which are equally 
essential to the readiness of the force.
    Based on your continued support, 2022 and 2023 will be known as the 
years Force Design transitioned from ideas to operational capabilities. 
Force Design is now; it is here today. But with updates to organization 
and equipment well underway, we must turn both our attention and our 
resources to manning, training, and retaining. We must never lose sight 
that our most critical warfighting advantage is our people, and that 
they deserve the best quality-of-life that we can provide them given 
the anticipated stress associated with military service. I look forward 
to working with the Committee members and staff over my final months as 
Commandant, and thank each of you and your staff for the tireless 
efforts in support of the Marine Corps.

    Senator Tester. Thank you, General Berger. It is also fair 
to say, the Marine Corps wouldn't be where it is today without 
your leadership. So we thank you for that.
    I am going to yield my time to Senator Murray, who is the--
--
    Senator Murray. Go ahead.
    Senator Tester. No, no, no. I know where the bread's 
buttered.
    I am going to yield to Senator Murray, the Chair of the 
Full Committee.

                   STATEMENT OF SENATOR PATTY MURRAY

    Senator Murray. Thank you, very much Chairman Tester, Vice 
Chair Collins, really appreciate it. And we really are 
fortunate to have two really tremendous leaders steering this 
subcommittee. So I am grateful to both of you. And I am very 
glad to join today's hearing with you, as we continue to work 
towards regular order here in the Senate for the first time in 
years.
    And as Senator Collins and I have made very clear, we know 
we have a responsibility to work in a timely fashion to write 
the bipartisan bills that will fund our country, build us as a 
stronger country, and make our communities safer, and ensure 
that we stay ahead of our global competitors.
    And the conversations that we are having today, including 
this hearing, really help us show how we are going to make 
those investments decisions, here in DC, that will help 
strengthen our country and protect our families, which as we 
all know, is especially important when China and others are 
making significant investments in their own Navy and military 
right now. And if we are going to keep pace with those 
countries we have to work together to get a bipartisan funding 
bill done.
    So I am really glad to have this opportunity to hear from 
the witnesses today about the President's budget request for 
the Navy and Marines, particularly how we can make sure we are 
supporting our service members and their families. And we need 
to remember that includes making sure that our military 
families, as you just alluded to, get things like child care, 
and mental healthcare, and good housing, and schools, and a lot 
more, because at the end of the day our best naval ships can't 
go very far without the brave men and women who are willing to 
put themselves on the frontlines to keep our country safe.
    So with that, I do have some questions for you today. And 
Admiral Gilday, I would like to start with you, because in 
February seismic deficiencies were found at three of the dry 
docks as you know, at Puget Sound Naval Shipyard in Bremerton, 
and the Delta Pier at the Trident Refit Facility in Bangor. Two 
very critical facilities in my home State of Washington. And as 
a result submarines were prohibited from using three of those 
six dry docks at Puget Sound, and the only dry dock at Bangor. 
Puget Sound Naval Shipyard is the primary location for attack 
submarine and aircraft carriers maintenance as we know, on the 
west coast, so I wanted to ask you today: How exactly is the 
Navy working with Puget Sound Naval Shipyard, and Trident Refit 
Facility to plan and implement the near-term mitigation? And 
what resources do you need to have to accomplish that?
    Admiral Gilday. Thank you, ma'am. We are making good 
progress right now on the repairs in three of those, 
facilities. So the first one at TRF (Trident Refit Facility) 
Bangor will be completed in June that is the most substantial 
work that we are doing, essentially, repairing both sides of 
the entire dry dock; the two other docks will be finished in 
April and May.
    As they are progressing well. We are focused there on those 
portions of the dock that are closest to the nuclear power 
plant and the submarines, where we actually put them up in the 
dry dock.
    There is a $300 million request in my unfunded list as you 
know, that was a late-add that didn't make it into the budget, 
so I request your help there.
    Longer term, we will be looking at other upgrades that we 
need to make in order to ensure the Seismic Resiliency of that 
facility. As you stated we really count on it, in terms of 
providing submarine maintenance for the fleet.
    Senator Murray. So the $300 million is for the short term; 
that is your request?
    Admiral Gilday. Yes, it is.
    Senator Murray. And then longer term?
    Admiral Gilday. So longer term, too early for me to state 
what that requirement is. We are right now scoping the long-
term repairs in conjunction with the SIOP (Shipyard 
Infrastructure Optimization Program's) work that we are 
planning up there as well.
    Senator Murray. Okay.
    Admiral Gilday. So we want to make sure that it is 
Seismically Resilient.
    Senator Murray. Okay. And you will stay in touch with us on 
that?
    Admiral Gilday. Absolutely, ma'am.
    Senator Murray. Secretary Del Toro, back in 2021, it was 
announced that Naval Station Everett had been designated as the 
future Home Port for Twelfth Constellation-class Frigates 
scheduled to be delivered in 2026. That is great news. The 
Navy's long-term commitment to Everett and Snohomish County, my 
State, is really clear. But as we get closer to that date, we 
need to make sure that not only the Navy has the resources they 
need, but the Everett community also has the support it needs 
to accommodate the influx of sailors and their families. Are 
those still on track to arrive in 2026?
    Secretary Del Toro. We are currently looking at the lay 
down plans, ma'am, for all of our ships given the increasing 
Indo-Pacific threat that we face. I myself have visited the 
Puget Sound area and looked at all the different infrastructure 
issues that are at play there, and we are looking and 
discussing with the CNO exactly what investments need to be 
made over the next several years, so that we can move in the 
right direction, including greater support for the hospital in 
the Puget Sound area as well, too.
    And if I could just briefly comment, and thank you for your 
leadership, as well as the collaboration that we have had with 
the community of Puget Sound, as we actually moved very 
aggressively to effect the repairs to the dry docks very 
expeditiously. It has been nothing but a great relationship.
    Senator Murray. Thank you very much.
    And just really quickly, Mr. Chairman; if I could just ask 
the Secretary again about the Navy suicide rate; nearly 17 
deaths per 100,000 sailors, that is just devastating. Does the 
President's budget request support any additional mental 
health?
    Secretary Del Toro. Very much so, ma'am. In the Department 
of the Navy's budget we actually have additional funds, upwards 
of $200 million that are dedicated to this. In addition to the 
actual human element of actually trying to bring everyone 
together to try to solve this grave problem that we face as a 
Nation; and the Navy too.
    Senator Murray. Okay. Thank you very much.
    Thank you, Mr. Chairman.
    Senator Tester. Senator Collins.
    Senator Collins. Thank you, Mr. Chairman.
    Admiral Gilday, the fiscal year 2022 NDAA (National Defense 
Authorization Act) sought to empower the CNO by requiring the 
CNO to submit his or her fleet size requirements directly to 
Congress. In July of 2022, the first such requirement was 
submitted and called for 373 ships, compared to 296 in the 
fleet today. Your navigation plan, which was released that same 
month, called for 96 large surface combatants like those built 
at Bath Iron Works in my home State.
    Two questions: First, when do you anticipate that your 
analysis will be released so that we have the benefit of your 
guidance in drafting the bill? It likely that your updated 
fleet requirement will be greater than the 373 ships in light 
of China's modernization?
    Admiral Gilday. Ma'am, on the first question, I have 
committed to Congress to deliver the report by the 10th of 
June, this year. And I will make the deadline. We are on track 
with our analysis team to do that.
    Secondly, with respect to not only the size but the 
composition of the fleet, I would expect that to change from 
the last report, particularly in terms of composition. It is 
too early to tell with respect to size, but quite honestly, 
ma'am, I can't see it getting any smaller than 373 manned 
ships.
    Senator Collins. Thank you. And that is quite a ways from 
where we are today?
    Admiral Gilday. Yes, it is.
    Senator Collins. General Berger, as we were sitting here, a 
headline came across my phone, and it says, ``Pentagon comes 
out against law requiring military wish lists'', and it came 
across just as you were explaining why you need more amphibious 
ships. And that that was your number one unfunded priority. 
Isn't it important for Congress to know what your chief 
unfunded priorities are?
    General Berger. From my perspective it has been useful I 
think to submit it from each of the services, and you to have 
visibility on what is not in the budget, for whatever reason. 
So from my perspective, it seems useful if it is useful to 
members. And it has been in the past.
    Senator Collins. It is definitely useful to us. And I don't 
think that Congress is going to take the Pentagon's advice on 
doing away with the unfunded priorities list.
    Admiral, let me return to you. Could you explain to the 
Committee why our surface Navy is so, important as a deterrent 
from a deterrence perspective?
    Admiral Gilday. So the destroyers, the cruisers that we 
have at sea today are really the backbone of the fleet, along 
with our aircraft carriers and our amphibious ships. You just 
can't replace forward presence. It is there to not only ensure 
that U.S. interests are looked after, but also poised in case 
any crisis comes up, we reassure allies and partners that we 
are there 24/7, 365.
    A full-third of the Navy is forward on any given day. A 
second-third is in maintenance, and the remaining third has 
either just returned from deployment, or is ramping up to go. 
That is where we belong out forward.
    The Secretary of Defense has directed readiness levels to 
us, and those, our ships that are ready to respond within 10 
days, those ships are all at sea now. So what we are trying to 
do in order to take advantage of the firepower that we have 
today is to improve our maintenance cadence as an example to 
send more ships to sea, the more the better; the bigger fleet, 
the better.
    Senator Collins. Thank you, Mr. Chairman.
    Senator Tester. So I will start with you, Secretary Del 
Toro. Last year Congress accelerated investment in weapons so 
that our weapons magazines are loaded up for future 
contingencies. In this year's budget the Department is 
proposing to lock in procurement quantities for nine different 
weapons programs over 5 years. This would provide significant 
predictability and stability to the industrial base. However, I 
note in some cases, such as the Naval Strength Missile, 
quantities requested this year are lower than appropriated last 
year. Further, it is not clear what the private sector 
investment will be in return for this procurement 
predictability from the Government.
    So Secretary, could you explain how multiyear procurements 
can help stabilize the industrial base? And furthermore, what 
investments are you expecting in return from this 
predictability?
    Secretary Del Toro. Mr. Chairman, I believe that multiyear 
procurements are critical to growing the size of the fleet in 
terms of buying individual platforms, and ships, as critical as 
it is, to invest in munitions. We appreciate the support of the 
Congress and being allowed to use these multiyear procurements 
for the purchase of Missile Systems as well, too.
    Our budget, in this year's fiscal, President's budget 
submission, increases the investment in munitions by 50 
percent, investing in Tomahawks, SM-6, Mark 48 torpedoes, LRASM 
(Long Range Anti-Ship Missile), across the entire threshold of 
the missiles that are needed, actually, for the Navy to be able 
to accomplish its mission. I am also a big supporter of the 
Naval Strike Missile, just on the LCS (Littoral Combat Ship) 
class of platforms, we are looking to put them on all our LCS 
platforms moving forward.
    So I wasn't aware of the slight decrease in the numbers of 
NSMs (Naval Strike Missile), I thought the numbers had actually 
gone up, but I will go back and validate that and get back to 
you if there has been a small decrease in the numbers of NSMs. 
I believe we are purchasing over 99 across the entire fleet.
    Senator Tester. Okay. And what do you expect in return from 
the industrial base with long-term predictability?
    Secretary Del Toro. I expect their commitment to 
recapitalize in order to be able to provide these Missiles at 
the pace that we are requiring them, for both the challenge 
that we face these--versus Ukraine, as well as the potential 
need to be able to deter China in the Taiwan scenario as well. 
These missiles will be required in the numbers necessary to be 
able to get there, so industry has to do its parts with a 
consistent signal being sent by the Department of Defense, that 
we will be purchasing these Missiles for a long period of time, 
they should feel comfortable in their confidence that they can 
invest in their own capitalization and their workforce to be 
able to produce these missiles and systems that are needed.
    Senator Tester. Despite repeated investments in the defense 
industrial base and the shipbuilding industrial base in 
particular, we don't really see improvements towards ships 
being delivered on cost and on time. In fact, your annual 
report to pay for cost overruns on new ships is about two 
billion bucks, or close to.
    It seems like I ask this every year, but what else can we 
do to support the shipbuilding industry to be able to get ships 
out on time in particular, and under cost?
    Secretary Del Toro. Mr. Chairman, I think that our 
investments in the P2P (Performance-to-Plan) Plan that the CNO 
has been committed to for the past several years, actually is 
starting now to make some advancements in being able to get 
ships out of shipyards, are far faster than before, whether 
they are ships being repaired, or new construction ships for 
that matter as well. With regards to the increased cost of the 
ships, much of it has been due to inflation, and certainly the 
negative impacts of the CR (Continuing Resolution), and the 
workforce shortage that we are all existing.
    I am hopeful that as we actually come out of COVID, and 
start fixing some of these work shortages that we have, we will 
be in a better place.
    I want to thank the Congress, and you particularly, for 
your investment in over $2.3 billion in workforce, and 
industrial-based investments last year, and the number this 
year is equally significant, $1.7 billion.
    We will continue to make sure that those dollars get used 
wisely with a return on investment on behalf of the American 
taxpayer, with the right oversight that is necessary to create 
these programs that hopefully will provide far greater numbers 
of workers to the shipyards themselves.
    Senator Tester. The two Senators to my right and to my left 
have made it clear that they intend to follow regular order and 
get a budget up by the end of September. I think that is good 
news. The other side of that coin is, is that we do need to do 
our job, but also the industrial base needs to deliver on time. 
Is there anything that we can do to help you make sure that 
they are delivering our assets that we are having them built on 
time?
    Secretary Del Toro. As Secretary of the Navy, I have held 
them accountable, actually, for delivering ships on time. I 
have had numerous meetings with all of the CEOs (Chief 
Executive Officers), I have walked all the shipyards myself to 
take a look at exactly how engaged they are in the construction 
of ships, and providing the quality of materials that are 
necessary.
    I think from the Congressional perspective, your continued 
commitment to invest in the industrial base, not just in the 
submarine community, but as the Vice Chairwomen mentioned, in 
the surface warfare industrial base as well, is critically 
important. Those are measures I think Congress should continue 
to take in order for us to get to a better place.
    Senator Tester. Senator Moran.
    Senator Moran. Chairman, thank you very much.
    Welcome to our panel. I appreciate your service and your 
presence here.
    General Berger, let me begin with you. Both the Marine 
Corps budget submission, and unfunded priority list invest 
heavily in CH-53 King Stallions; explain why this particular 
aircraft is critical to the Force Design 2030, and the Marine 
Corps Mission, if you would?
    General Berger. Late last fall, I went down to North 
Carolina, and the Senator, to fly on that aircraft, having 
grown up in CH-53Ds and Es. This is a state-of-the-art 
aircraft. It has a glass cockpit, it is a fly-by-wire digital 
airframe, it doesn't fly itself, literally, but it is just 
exponentially years ahead of where anything else that we have.
    Around the world, it is one of a kind, it has range, 
altitude capability, refueling, lift, and it is marinized to go 
aboard ship like we do. To your question on how does it fit 
into Force Design? Both the CNO and I believe strongly that we 
will need to operate in a distributed manner. That means you 
are going to have to move troops and supplies around, the 53K 
is critical for that, especially in regions where you have long 
distances where you got to do that over water, this is the 
machine built for that.
    And the price, which I am glad to see happen, gone down 
from 117 to 113 in the most recent lot, that is the direction 
you want to see costs go as they learn how to build better 
airframe. The cost is headed in the right direction.
    Lastly, I will just say, it is scheduled to deploy later 
this fall. I will be pretty excited to see what it does aboard 
ship when it is actually deployed.
    Senator Moran. Thank you. Admiral Gilday; P-8s, advancing 
technology, submarine capability of our adversaries, the P-8 
Poseidon, I assume, continues to be critical to deal with those 
threats. I visited SOUTHCOM (Southern Command) last month, or a 
few weeks before that, and the Commanding General in our 
conversation, but also in a conversation with Senator Shaheen, 
indicated that the drug flow coming across our southern border 
is at an all-time high, SOUTHCOM's allocated resources to see 
this situation, Her ISR assets quote, ``Are at an all-time 
low.''
    The Navy's procurement has stopped short of meeting the 
original risk-informed requirements for the 138 aircraft, what 
risk assessments went into this decision to halt the 
procurement of this critical capability?
    Admiral Gilday. Sir, right now the estimate is 127, and we 
are sticking to that, so this is based on evolving, wargaming 
analysis that we are doing on an annual basis. The same thing 
goes into our ship numbers, and our ship mix. As you said, P-8s 
are vitally important. So I have never had to ask a combatant 
commander twice if they need another P-8, they are in very, 
high demand.
    They are not the only asset out there that we rely on for 
ISR, but particularly with respect to an ASW (Anti-Submarine 
Warfare) mission, which is what they were really designed for, 
they are less optimum for SOUTHCOM, as an example, let us say, 
a Russian submarine threat coming from the high north. As they 
tend to come out with more frequency these days, as well as a 
growing Chinese threat.
    Our focus has really been on both of those primary global 
threats, as outlined in the National Defense Strategy.
    Senator Moran. Thank you. And let me turn to you, Mr. 
Secretary. Last year's PACT Act was signed into law. It 
provides benefits to veterans exposed to toxic substances. The 
law included a provision allowing for individuals impacted by 
contaminated waters at Camp Lejeune to file for damages in 
court, Federal court.
    The PACT Act required claimants to present their claims to 
the Navy before going to court, and this is certainly 
additional burdens on claimants, the Department of Justice, the 
Federal court system, if the Navy can't find a way to provide 
an administrative remedy in these cases. Would you explain 
where the Navy is in its effort to set up an administrative 
claims process? How many claims have been filed with the Navy 
since the law became--took effect on August the 10th? How many 
claims has the Navy acted on? And can you provide a reasonable 
timeline for the Navy to process and respond to those claims?
    Secretary Del Toro. Thank you, Senator. And we are very 
grateful for the support that was given by the Congress in 
order to pass the PACT Act to take care of our Troops, our 
Sailors, our Marines, and their families as well too.
    Senator Moran. Thank you.
    Secretary Del Toro. We have stood up an outward-facing 
website at the Processing Unit. It is my understanding that we 
have received over 20,000 claims. We are obviously going to 
have to increase the personnel assigned to the Processing Unit, 
to be able to address those claims. I will get back to you on 
an exact number of claims that have already been addressed. I 
believe this is just the beginning, and there is much more work 
to be done, but we are committed to actually being able to 
process those claims in a responsible manner in order to move 
down that path.
    Senator Moran. Does the President's budget request reflect 
that additional personnel?
    Secretary Del Toro. I will have to get back to you, 
Senator, I don't believe it does right now.
    Senator Moran. Okay. Thank you, Mr. Secretary.
    Senator Tester. Senator Schatz.
    Senator Schatz. Thank you, Mr. Chairman. Thank you all for 
being here.
    Secretary Del Toro, just very quickly; are we on track for 
defueling Red Hill?
    Secretary Del Toro. Senator, we are very much on track for 
defueling Red Hill. As you know, we have also submitted our 
closure plan for Red Hill, we have submitted addendum number 
one, and we are working on addendum number two as well, so it 
will be submitted later this year.
    Senator Schatz. Do you have any reason to believe that 
defueling will adversely impact the DOD's ability to support 
military operations in the AOR?
    Secretary Del Toro. I do not, Senator. In all my 
conversations with senior leadership at the Pentagon, and 
looking at the strategic lay down plan for defueling 
afterwards, I don't see any challenges whatsoever to executing 
that plan, over the course of time, absolutely not.
    Senator Schatz. Thank you. And do I have your commitment to 
make sure that the Navy works with State and local partners on 
the healthcare aspect of this as well, as environmental 
remediation?
    Secretary Del Toro. Senator, you have always had my 
commitment on that subject, and you will continue to have my 
commitment on that subject, working with the Office of 
Secretary of Defense, and DHA (Defense Health Agency) in 
particular, to ensure that the service members, and also the 
people of Hawaii, have the services they need from a health 
care perspective moving forward.
    Senator Schatz. Thank you very much.
    Admiral Gilday, given that the INDOPACOM unfunded 
priorities list includes Military construction, Joint training 
with regional partners, and Logistics, can we be confident 
that--this is a delicate question,--so I wish you luck with the 
answer. Can we be confident that member-driven priorities 
aren't crowding out our more foundational budget priorities?
    I am talking about divestment here, and we have had some 
good conversations, and even on the committee we have been 
talking about divestment, but everybody talks about divestment 
every year. And as I look at these priorities, it seems to me 
that these are things that should not be on the unfunded 
priorities list, but on the list, that we are planning to fund. 
Can you reassure me that we are not accommodating all of the 
members, and all of their hometown business interests, in 
contradiction, of what the Department of Defense needs?
    Admiral Gilday. Sir, the friction point with divestments, 
specifically ship divestments, directly against those members 
that are interested in ensuring that repair yards have a 
sufficient throughput going through them, right? And so if I 
look out to 2026, with a high degree of confidence, I can tell 
you that as an example, in Norfolk, through those shipyards 
will increase by 10 percent.
    In San Diego, it will increase by 9 percent. There is a bit 
of a dip there in 2024, but it does stabilize. If I could draw 
a parallel, and to our ship-building plan, so our submarines 
you can look out for 20 years and you know that we are in a 
cadence to build one SSBN, and two SSNs. Likewise, that gives 
stability to the Force in terms of what you are going to look 
at, in terms of the battle force you are going to field under 
the sea, and what those repair requirements are, with a high 
degree of fidelity.
    We are just now getting to that point in the surface build 
production lines, destroyers, LPDs, we want to keep, that line 
going.
    Senator Schatz. I get all that, and that----
    Admiral Gilday. It gives a higher degree of fidelity in 
terms of what the future looks like for those repair yards.
    Senator Schatz. Sure. And I am obviously supportive of 
keeping the industrial base up and running.
    Admiral Gilday. Yes, sir.
    Senator Schatz. And also the predictability, and probably 
the price predictability of long-term contracts, and long-term 
Investments. But I just worry that we are giving short shrift 
to the kind of boring stuff, making facilities more resilient, 
funding our partnerships in the region, sewer, water,----
    Admiral Gilday. I get your point.
    Senator Schatz [continuing]. Housing, all of it.
    Admiral Gilday. I get your point. So if I were to take our 
investment strategy with respect to infrastructure in the Indo-
Pacific, and I have another billion, and then another $0.5 
billion on my unfunded list for infrastructure, most of that is 
in the Pacific, and it is completely aligned with INDOPACOM's 
plan for bases in places that we need to expand in the Indo-
Pacific, or to shore up because we have not done any work there 
in a while.
    We work our budget with respect to that, sir, hand in glove 
with the combating commander.
    Senator Schatz. Thank you. And just one final question for 
Secretary Del Toro: Red Hill is not the only aging 
infrastructure in Hawaii, that is for sure, and I would like 
you to speak to the sort of more basic, more mundane needs 
regarding infrastructure in the State of Hawaii?
    Secretary Del Toro. Very much, Senator. And we have 
actually dedicated in this year's budget, over a billion above 
last year or two, investments in the infrastructure, and they 
are going to have to continue. Historically, we have invested 
less than 1 percent of the budgets over the last 10, 20 years 
actually, in infrastructure. And it is as critical to combat 
readiness as the readiness of our ships, and our aircraft, et.
    With regards to the infrastructure on the Island of O'ahu, 
and throughout Hawaii as well, it is challenged, it is very 
old, and it needs to be replaced. I believe the CNO has 
actually executed three recent assessments to take a look at 
the water, the sewage, and electricity, actually on the island, 
in order to support the infrastructure, and the ships that are 
there, and the families that are there as well.
    We have to continue that investment moving forward. We 
cannot ignore it. I myself, have called for a 30-year 
infrastructure plan for the Department of Navy, it will take 
us, a year to get it in the right direction, but both of the 
Marine Corps and the Navy, are actually paying a lot more 
attention to infrastructure because it is the right thing to 
do.
    Senator Schatz. Thank you.
    Senator Tester. Senator Murkowski.
    Senator Murkowski. Thank you, Mr. Chairman.
    This morning, in Alaska, there is--500 speakers that are 
lined up to participate at the Arctic Encounter Symposium, the 
largest Arctic gathering here in the country. We are talking a 
lot about the Arctic nowadays. One of the principal issues of 
discussion will be the China-Russia intersect and the interest 
in the Arctic. I am all eyes on the Arctic all the time.
    And I was a little concerned, Mr. Secretary, as well as 
Admiral Gilday, in going through, at least your written 
testimony this morning, some 50 pages of text between the two 
of you, there is zero mention to resourcing your Department's 
Arctic Strategy, or defending America's Arctic.
    That worries me. We have seen Arctic strategies released by 
each one of the services, that is greatly important, but we all 
know that just having a strategy is nothing if we do not 
resource it, and resources are reflected in the budget.
    So Mr. Secretary, can you explain to me why you haven't 
been conducting more overt operations in the Arctic? And just, 
more generally, if you would like: whether or not you think 
that this budget properly resources the Navy's Arctic strategy?
    Secretary Del Toro. Senator, let me say that I deeply am 
concerned about what is happening in the Arctic, obviously, the 
United States is an Arctic nation, just like Russia. 
Unfortunately, they have been investing far greater resources 
than we have, historically, in the Arctic, whether it has been 
icebreakers, or troops, et.
    We need to do a better job of our investment in the Arctic. 
I think we have been challenged, obviously, with the current 
situation in Ukraine, as well as challenged by the current 
increasing threat of China, as the pacing threat, and the 
scenario with regards to Taiwan, which has demanded additional 
resources to be able to address those significant challenges.
    But nevertheless, the CNO, myself, and the Marine Corps, 
and General Berger, are looking at trying to increase the 
number of operations that we have actually in the north, and 
also taking a look at future deep-water ports, that perhaps we 
could reinforce, in terms of the piers, and et. I am planning 
to go to Alaska in June----
    Senator Murkowski. Good.
    Secretary Del Toro [continuing]. To address some of these 
issues myself, so I look forward to that continued conversation 
with you and the rest of Congress as we need to address these 
significant threats that are evolving.
    Senator Murkowski. Good. We will certainly welcome you in 
June. Any time you want.
    General Berger, let me ask you the same, whether or not you 
feel this budget appropriately resources the issues as they 
relate to our Marine Corps and the footprint in Alaska?
    General Berger. Thanks for the question, ma'am. It gives us 
the resources we need to train there, yes. Both in exercises 
that are regularly scheduled, like you mentioned, the Arctic 
Edge being one of them. Where we go up and, frankly, can train 
to a level we can't inside the rest of the United States, both 
because of the airspace and the sea space; and the force-on-
force opportunities that you have in Alaska that it is really 
difficult to generate down here.
    There is also the unit deployments that we do to Alaska, 
and I took my Battalion to Alaska because you can build 
readiness there and get a regular deployment. You can do 
things, again, that you can't do at home station. It does 
provide us the resource like the Marine Corps, the resources to 
do that right now.
    Senator Murkowski. Okay. Well, it is something that, again, 
we recognize that this is a matter--this is an issue when it 
comes to Arctic and Arctic readiness, that we are not there 
yet. I think we would all recognize across all the Services, we 
are not there yet. You mentioned icebreakers, and I am sure you 
know this, Mr. Secretary, that we are sitting here still at 
one-and-a-half icebreakers on a good day, compare that to 
Russia's 56. China is moving forward, even India is talking 
about building an icebreaker.
    So we are well behind in the construction of how are we 
going to facilitate our icebreaking fleet. I have two 
questions. And I am probably not going to be able to get to 
them, so I would ask that you both take these for the record.
    And this is to you, Admiral Gilday, and to you, Mr. 
Secretary. And they relate to World War II munitions and 
explosives of concern, unexploded ordinances that were left 
near Unalaska, at the end of the Aleutians, there have been 
several areas identified, where these hazards can be. It has 
been concluded that risks to public safety are present in many 
of these areas. It is a concern amongst the people in the 
region, most notably.
    Now, we are told that Navy says it does not plan to conduct 
another survey until 2027, until more advanced underwater 
search technology is developed. I want you to be aware of this, 
because I am going to include language in the Defense 
Appropriations Bill to conduct a more thorough survey in 2024. 
I think the people there deserve it. And it is in addition to 
the unexploded ordinances.
    I am also going to inquire about the chemical weapons, the 
Mustard agent, the Lewisite that was deposited off of AT2, and 
again the survey of that chemical weapons dumpsite. So just put 
that on your horizon. If you can get back to me earlier than 
that, it might obviate the need for it for language.
    Thank you, Mr. Chairman.
    Senator Tester. Senator Baldwin.
    Senator Baldwin. Thank you, Mr. Chairman.
    Secretary Del Toro, building on this committee's prior 
shipbuilding investments, I am advocating for additional 
funding for the frigate industrial base and workforce in fiscal 
year 2024. The ship will be a central part of the future fleet.
    And as a new class will undoubtedly face workforce, 
supplier, and shipyard infrastructure challenges, last year 
Congress provided $50 million for the Frigate Industrial Base 
and Workforce Development Program. I want to thank you for 
noting your support of this funding during last year's hearing. 
First, can you share your thoughts on how the fiscal year 2023 
funding will be executed to benefit this program? And then 
secondly, please follow up with, because I believe a sustained 
and robust investment is required to continue supporting the 
ship's production ramp up. How do you see sustained industrial-
based funding helping the program?
    Secretary Del Toro. Thank you, Senator. First let me thank 
you for your commitment to ensuring the Constellation gets 
built on time, and on track. I am pleased to report that she is 
on time an for delivery. And we want to make sure that we 
continue that record.
    And the industrial-based investments are necessary. Most of 
the monies, I believe, will be dedicated towards--Constellation 
will go in the force of Workforce Development programs to try 
to help the shipyard recruit additional, and train additional 
individuals in Wisconsin to train them to be able to support, 
an increasing need for the workforce in the shipyard itself.
    I think that will be the best use of the monies. The 
shipyard itself has invested a lot in CapEx, and has reinvested 
a lot of its own profits, and its own capitalization as well 
too, to try to keep the frigate on track.
    So I am hopeful that the monies in 2023 are going to be 
better used in workforce development than in actual CapEx like 
investments in the shipyard.
    Senator Baldwin. Okay. Thank you.
    General Berger, the Marine Corps listed LPDs, that is the 
amphibious transport dock ships, as their number one priority 
on their unfunded priority list. However, the Navy has halted 
its pursuit of the transport dock line, citing the program's 
growing costs. Can you explain why supporting the LPD Project 
is important to the Marine Corps? And what the Second and Third 
order effects would be, if the LPD Project is not funded?
    General Berger. Senator, in my opening comments I tried to 
highlight the operational, and the statutory minimums, both 
mandated by Congress, and what I see, as the warfighting 
requirement. And that is a floor, not a ceiling. And it 
consists of 10 big decks, LHAs, LHDs, and 21 medium or small 
LPDs, and is the bare minimum.
    This budget proposes early decommissioning of three of 
those LSDs, with no construction, no acquisition of an LPD, so 
from my role as defining what the requirements are, and the 
statutory minimums of 31, there is no plan to get there.
    From my perspective, I didn't see any other way than to put 
it on the unfunded list in order to reflect that there is no 
plan to get to the minimum requirements.
    If we don't have it, to your question, what is the risk? 
The risk is our inventory atrophies to a point where we cannot 
deter, can't campaign, can't respond. And as I tried to 
highlight, when we can't respond when we have to, then our 
allies' and partners' trust goes down, and in all likelihood 
the way the Chinese Navy is growing, they are expanding, but 
they are liable to try to step in. And we can't afford that to 
happen.
    I would say the last part of this, of course, is 
maintenance which is the number one priority for the CNO, for 
four straight years, and recovering that maintenance making 
sure we have the fleet that we need that is ready, as he points 
out, is key also.
    Senator Baldwin. You have previously cited that the buy now 
or block buy acquisition strategy will mitigate costs by 
footing the bill up front. Can you explain why you think this 
will be an effective way to mitigate costs, such as inflation; 
or if there are other methods to help mitigate those costs?
    General Berger. The CNO is better qualified to explain the 
variables here. But from my perspective, a predictable pattern 
of construction on what they call centers, is key. Key for 
parts, key for labor, and for LPDs it is 2 years, so we have to 
have a battle rhythm, a cadence that allows them the 
predictability that they need. If we don't have that, then they 
can't hold the workforce, they can't keep the supply chain 
working, and it starts to tumble downhill.
    Senator Baldwin. Yes. I note that I have run out of time, 
but maybe for the record, Admiral Gilday, I would like to give 
you the opportunity to respond on the topic of LPDs, and feel 
free to submit that to the committee in writing.
    Admiral Gilday. Thank you, ma'am.
    Senator Tester. Senator Graham.
    Senator Graham. Thank you, Mr. Chairman.
    What is the inflation rate today, Mr. Secretary, do you 
know, for the Nation?
    Secretary Del Toro. Senator, I believe it is approximately 
4.6 percent, or so.
    Senator Graham. For the country?
    Secretary Del Toro. Overall.
    Senator Graham. Okay. Is the Navy budget equal to 
inflation?
    Secretary Del Toro. No, sir, it is not.
    Senator Graham. Okay. What is the Navy budget--how far 
below inflation is it?
    Secretary Del Toro. I believe it is about 2 percent below 
inflation, sir.
    Senator Graham. Okay. How many ships do we have in the 
Navy?
    Secretary Del Toro. And when I mentioned the 4.6, that is 
the predictors that were used.
    Senator Graham. All right. What's the actual inflation 
rate?
    Secretary Del Toro. Somewhere in the 6 percent range, sir.
    Senator Graham. Okay. So the predictor was wrong?
    Secretary Del Toro. Predictors are often wrong.
    Senator Graham. Yes. Okay. Have you accounted for that?
    Secretary Del Toro. Have we accounted for?
    Senator Graham. Yes.
    Secretary Del Toro. Well, we are very thankful for the 
additional $9 billion that the Congress provided to Department 
of Defense.
    Senator Graham. Well, the point is that you are a couple of 
points below inflation. I think that is my point. So, how many 
ships in the Navy?
    Secretary Del Toro. 296, sir, as of today.
    Senator Graham. Okay. How many ships in the Chinese Navy?
    Secretary Del Toro. It is upward of 300.
    Senator Graham. Like 340?
    Secretary Del Toro. Yes, sir.
    Senator Graham. Okay. By 2028 how many ships will we have?
    Secretary Del Toro. By 2028 we will have approximately 291 
ships, or so.
    Senator Graham. That is less than 296, right?
    Secretary Del Toro. Yes, sir.
    Senator Graham. Okay. How many will the Chinese have?
    Secretary Del Toro. I can't predict exactly what the 
Chinese will have, but estimates are upward of 440, or so.
    Senator Graham. Yes. Okay.
    Secretary Del Toro. I will add that our ships are extremely 
more modern than they ever have been, as well.
    Senator Graham. Let us hope so. I believe, let us hope so.
    Secretary Del Toro. And lethal.
    Senator Graham. If not, we are in a world of hurt.
    Let me ask you this, CNO, how many ships do we actually 
need?
    Admiral Gilday. 373 manned, and probably 150 unmanned.
    Senator Graham. Okay. So under this budget the one--do you 
support this budget?
    Admiral Gilday. I do.
    Senator Graham. Okay. If we have 296 today, and under this 
budget we are going to be at 291 in fiscal year 2028, how do we 
get to 373?
    Admiral Gilday. Sir, right now we have 56 ships under 
construction, and another 76 that are under contract. We can't 
buy back time. For 20 years we are focused on ground wars, and 
understandably so, the Navy wasn't the priority. Sir, keeping 
old ships, that are not usable or workable is not going to make 
us a stronger Navy.
    Senator Graham. I am not arguing with you, I am just 
asking: Does the budget get you to 373 ships?
    Admiral Gilday. If we follow the shipbuilding plan, that 
there is three alternatives in the shipbuilding plan, the third 
alternative, assuming about a 5 percent increase above 
inflation, above our top line.
    Senator Graham. Okay. You are assuming 5 percent above 
inflation. The actual budget is 2 percent below inflation. How 
can you support a plan that requires 5 percent to get you where 
you want to go, and the actual plan is 2 percent below 
inflation? I mean that doesn't make sense to me. Does that make 
sense to you?
    Admiral Gilday. Well, sir, part of it gets at, what can the 
shipbuilding industry actually produce?
    Senator Graham. Do we have a shipbuilding industry problem, 
or do we have a budget problem?
    Secretary Del Toro. We have a shipbuilding industry problem 
currently, Senator.
    Senator Graham. Okay. Well, let me just go back to the 
budget. He just said you need 5 percent above inflation, am I 
quoting you right?
    Admiral Gilday. They is a----
    Senator Graham. To get to that 373 number. You just said 
that the Navy's budget is 2 percent below inflation, and when 
you look out, over time, in year ten, do you know what 
percentage of GDP (Gross Domestic Product) we will be spending 
on defense?
    Secretary Del Toro. I cannot predict that in 10 years, sir.
    Senator Graham. Well, I can. And tell you right now; it is 
2.5 percent. How many times has this Nation spent less than 3 
percent on GDP for defense in the in the modern era? I know, I 
will just tell you, four times?
    Secretary Del Toro. Four time.
    Senator Graham. 1940, 1999, 2000, and 2001. This budget is 
going to get us to 2.5, in fiscal year 2028 it goes to 2.9, so 
your budget is taking GDP spent on the Navy and the Military to 
historic lows, the budget you are supporting is below 
inflation, and you are telling us, to get to where we want to 
go we have got to be above inflation by 5 percent. If this is a 
good budget, I would hate to see a bad budget. Thank you.
    Senator Tester. Senator Shaheen.
    Senator Shaheen. Thank you, Mr. Chairman. And thank you to 
each of you for being here today, and for your service to the 
country.
    I don't know, Mr. Secretary, or Admiral Gilday, which of 
you would like to answer this question. But the Portsmouth 
Naval Shipyard has done the first Shipyard Infrastructure 
Optimization Program Dry Dock Modernization--it is a mouthful. 
Are there lessons learned there that you think should be 
applied to similar future projects in Hawaii and Washington, 
and what are they?
    Secretary Del Toro. Very much so, Senator. And actually I 
am pleased that the progress in Portsmouth actually has 
remained on track, but it has been at the expense of many years 
of trying to understand exactly what we needed to do there from 
an engineering perspective. And those lessons learned are being 
applied actually in Hawaii. I just signed the first contract 
out in Hawaii for $2.8 billion, my staff did.
    And we have applied those lessons to what we are 
experiencing in Hawaii, although both shipyards actually aren't 
exactly the same nor are the projects themselves are exactly 
the same.
    Senator Shaheen. Right.
    Secretary Del Toro. But I will ask the CNO to comment 
further on.
    Admiral Gilday. I think one of the things--ma'am, that we 
learned, because these projects are so complex and we haven't 
done them in a hundred years, is to bring the best in industry 
together in a group to inform how we move together. We didn't 
do that as well in Portsmouth. We relied on a single 
contractor. We have brought together many more experts when we 
did the estimate for Hawaii, and the contract was just signed 2 
weeks ago. I think we are in a better position with a design 
that will keep us on track, in a bit more challenging area in 
Hawaii than Portsmouth.
    But that said, we have learned a lot from Portsmouth in 
terms of how we both design and then move forward in execution.
    Senator Shaheen. Thank you. Well, thank you both for your 
support for that project and for coming to see it. I think it 
has been very impressive.
    General Berger, the Marine Corps is in its fourth year now, 
Force Design 2030. What have you seen in the Nagorno-Karabakh 
War, or the Ukrainian War, that has validated your approach to 
Force Design 2030? Are there lessons there? Or are there 
changes that we need to make in response to what you have seen?
    General Berger. Well, that could be a long explanation I am 
patient.
    Senator Shaheen. You have 2 minutes and 33 seconds.
    General Berger. I am patient in drawing long-term lessons 
learned while there is a fight going on, because you can make a 
mistake too early on thinking you have seen something and we 
should change everything. We need to be a little bit patient.
    That said though, I think we have seen enough to draw some 
conclusions, as you point out, because this is 10, 12 years 
observing this.
    First, the ability of a force to operate more spread out 
and empower authorized junior leaders to make decisions at 
speed, matters. There is almost ubiquitous sensing nowadays 
everywhere you need counter for that. And some of the counter 
to that is basics of camouflage, and some of it is much more 
technical and logistics.
    And lastly, I would say the ability of a force to adapt is 
huge. It is hard to quantify, ma'am. But the fight that you are 
in is never the fight that they taught you in school. We should 
be very impressed by the ability of Ukraine to adapt over the 
past year, all along the way, and the failure of Russian units 
to do the same. You and the force has to adapt to the 
environment they have got. And they have done a marvelous job 
of that.
    Outmanned, outnumbered, they have all the odds against 
them, except for NATO (North Atlantic Treaty Organization) and 
the U.S., but they have adapted. We need to be able to do the 
same.
    Senator Shaheen. Well, one of the things as I understand, 
you are working to do, and how does this complement that? But 
it has been described to me, hoping to change from the Marine 
Corps' historically young Force to a more experienced Force. So 
how does that help us in those kinds of environments?
    General Berger. It is directly tied to it. If you are going 
to empower, you are going to authorize junior tactical leaders 
to make really critical, key, tactical, and operational 
decisions, they need the maturity to do that. By maturity I 
don't mean in age.
    Senator Shaheen. Right.
    General Berger. I mean enough repetition, seen enough, done 
enough, to see a close semblance of what they have trained for 
before, and make a very quick decision. We have to mature the 
Marine Corps' Force to reach a better balance of a very, young 
Force, versus a Force that has enough experience in there to 
make those tactical decisions, which is at the root of what 
Force Design for us is doing. Reach that right balance, retain 
more talent, and balance the experience that we are going to 
need, with the youth that we have always had.
    Senator Shaheen. Thank you. And Secretary Del Toro, I am 
out of time, but one of--we had a hearing last week in the 
Armed Services Committee on Recruitment and Retention and the 
challenges that we are facing in our military. One of the 
issues that I think is very important to helping with 
recruitment--with retention, in particular, is ensuring that 
there is child care for families who are serving.
    I am going to submit this for the record, but I would like 
to know what we are doing to better expand our ability to 
provide child care for DOD families? We have done a really 
interesting Congressional Defense award in New Hampshire 
between the shipyard, and Pease National Guard, who are doing a 
child care facility jointly. Are there creative ideas like that 
that we are working on? But I will submit for the record.
    Secretary Del Toro. Very quickly, we had two in the budget 
last year. We have three in the budget this year.
    Senator Shaheen. Great. Thank you.
    Thanks, Mr. Chairman.
    Senator Tester. Senator Hoeven.
    Senator Hoeven. Thanks, Mr. Chairman.
    Secretary, in your testimony you highlight the significance 
that--of the challenge that China poses to our Navy and our 
Marine Corps. But last fall the administration released a draft 
regulation that would require contractors to report on any 
greenhouse gas emissions linked to the work that they perform 
on DOD contracts, and then prioritize emissions' reductions 
regardless of the cost or impact on the warfighter.
    This regulations ``finaled'': it will increase costs, it 
will discourage contractors from working with DOD, and put 
green mandates ahead of operational requirements. And I would 
guess China would be pleased to learn that U.S. is willing to 
spend more to make weapons greener instead of getting more 
weapons or more lethal weapons to combat our adversaries.
    Can the Navy afford to have contractors increase their 
prices, and so forth, and focus on how green their weapons are 
in the face of the China challenge? And will somehow reducing 
the emissions of our weapon systems help either the Navy or the 
Marine Corps to more effectively meet the challenge that China 
poses, as you outline?
    Secretary Del Toro. Senator I am not exactly sure that the 
relationship between green gas; gas emissions were tied 
directly to the weapon systems themselves. There is a lot of 
other utilities that the United States Navy depends upon, in 
which case green technology does make a lot of sense, and we 
are investing in a lot of green technology.
    The Marine Corps alone, we have actually taken Marine Corps 
Base Albany to zero essential emissions, essentially, and that 
pays off tremendous dividends in being able to provide us more 
resources to actually put into combat readiness, and to be able 
to buy more weapon systems themselves.
    Senator Hoeven. Have you seen the proposed regulation I am 
referring to?
    Secretary Del Toro. I will have to look--no, I haven't----
    Senator Hoeven. I would encourage you to take a look at it, 
because that is not what it does. It requires additional focus 
on making the systems, weapon systems, and so forth, the 
contractors provide more green. And it is hard for me to 
understand, we were talking about lethal weapons, that that 
would be the focus, or how that could not be costly and 
counterproductive to our warfighters. So I would encourage you 
to take a look at it.
    Secretary Del Toro. I promise to look at it and get back to 
you, Senator.
    Senator Hoeven. Yes. Thank you, Secretary.
    And then, Commandant, let me ask, General Berger, the UAS 
pilot training, in your testimony you mentioned the Air Force 
probably does not have the capacity to train the number of MQ-9 
officers that you need. So what are you doing to get that 
training? And you know, are there enough trainers? Have you 
looked at contract training? Have you looked at alternatives 
then to address it?
    General Berger. The way I captured it in the written 
testimony, is as accurate, as picture is, me and General Brown, 
and the CNO have. That we don't see any shrinking of reduction 
of that demand. So the CNO, we have got a couple options here. 
As you have pointed out, one is contract. Two, is a naval 
school for unmanned pilots ourselves.
    In other words, opening up a UAS (Unmanned Aerial Systems) 
school ourselves, which we are talking about. We don't know yet 
what that would cost, and where we would put it. The instructor 
base, all that sort of thing, but it is pretty clear that 
relying on the Air Force, as we have the last couple years, we 
wouldn't be where we were without them. This is not going to 
meet the requirement going forward. So it is probably going to 
be in either a Naval UAS school, or a contract solution.
    Senator Hoeven. I would like to talk to you about that. We 
have put a lot of time and effort into working with Air Force 
at the Grand Forks Air Force Base, both to have a Technology 
Park, Grand Sky Technology Park, on that base, as well as a 
test site, Great Plains Test Site. General Atomics is located 
there, the manufacturer, they are training their Foreign 
Military Sales Pilots. They have the Brits there right now on 
the MQ-9.
    And so I would sure like to talk to you about that, 
existing facilities, the ability to fly in the NAS (National 
Airspace System) without--beyond visual line of sight aircraft. 
You know, manned aircraft having to chase all these things that 
might give you a tremendous head start. I would like to explore 
that with you.
    General Berger. Absolutely, sir.
    Senator Hoeven. Thank you, General.
    General Berger. You are welcome.
    Senator Hoeven. Admiral, number one, two, and three things 
you need to really advance your ability to address the 
challenge of China in the Pacific?
    Admiral Gilday. One is to keep shipbuilding on track clear, 
stable, and demand signals.
    Senator Hoeven. I think Lindsey might agree with you on 
that one.
    Admiral Gilday. A clear stable demand signal to the 
industry. We haven't always done so well in the past. We have 
been sinusoidal; we can't afford to be like that anymore. A 
continued investment in readiness, so the investment in 
capacity cannot be at the expense of current day readiness, we 
have to be ready for today, and tomorrow.
    And then I think a continued focus on modernization, 70 
percent of the fleet today we are going to have 10 years from 
now. So continuing to upgrade those capabilities, as well as 
taking care of the material condition of those ships is really 
important.
    Senator Hoeven. I think you made a really important point 
earlier, it is not just the numbers of ships, it is having the 
ships you need to do the job.
    Admiral Gilday. Yes. Yes, sir.
    Senator Hoeven. And I think that was an important point 
that you did make.
    I would like to thank all three of you for your service, 
very much appreciate it, and for being here today.
    Admiral Gilday. Thank you, sir.
    Senator Tester. Senator Capito.
    Senator Capito. Thank you, Mr. Chairman. And I want to 
thank Senator Collins as well. Thank you all for being here, 
and thank you for your service.
    Thank you, Secretary Del Toro, for the visit to my office 
several weeks ago.
    Over the past year, you and other defense leaders have 
spoken about the urgent need to increase production, 
particularly in munitions, to replenish our stockpiles, and be 
ready for the future contingencies. In particular solid rocket 
motors, are a critical component in our precision-guided 
munitions, and we need to increase our capacity. I am proud 
that some of these solid rocket motors, for many of our 
critical munitions, are made from a Navy-owned facility in the 
State of West Virginia.
    So I would first like to ask you to visit there. Or I don't 
know if you have already been there, but I would love for you 
to have an opportunity to tour that facility in the future. So 
I extend that to you.
    But Mr. Secretary, how important is the production of these 
solid rocket motors to our national security objectives and 
readiness?
    Secretary Del Toro. It is----
    Senator Capito. And where are we on the pendulum here? I 
know we have expended a lot.
    Secretary Del Toro. Well first, Senator, thanks for your 
invitation. I will most certainly take you up on that.
    Senator Capito. Right.
    Secretary Del Toro. And not just to visit West Virginia 
because it is a wonderful State, but because of the criticality 
of these solid rocket motors, we are a bit of an extremist in 
terms of being able to produce these at the rates that we 
actually need in the future. And so we have to look for 
additional suppliers that can produce them, we have to make 
sure that we don't have continued mergers of companies, for 
example, so that we have more competition in the industry as 
well, they are critical to most of our missile systems, whether 
it be SM-6s, or some of our larger missiles as well.
    Senator Capito. Yes. Well, they are maximizing their space 
out there, so they are putting a little bit more space, or a 
lot more space in. Let me ask you this? Is the impact of this 
has anything to do with the munitions that we have sent to 
Ukraine? Is that why--are stockpiling enough there? Or is it 
just hard to keep up with the production, which one of those 
would be true, do you know?
    Secretary Del Toro. We have a commitment to provide Ukraine 
the munitions that it needs.
    Senator Capito. Correct.
    Secretary Del Toro. And we will continue to in the future. 
And so that obviously has expended a lot of the munitions that 
we do have, therefore we have to make a commitment to 
increasing munitions across the board. The Office of Secretary 
of Defense, the Under Secretary of Defense for Acquisition and 
Sustainment has been completely devoted to this effort, and 
working with manufacturers across the country, around the world 
indeed.
    The Secretary of Defense, himself, has invested a 
tremendous amount of time to working with other nations to 
ensure that we bring as many munitions as possible to the 
support of Ukraine. And that of course has allowed, or it 
requires us to continue to refurbish those stockpiles that we 
have here in the United States, in order to get to a better 
place.
    Senator Capito. Right. General Berger, could you speak to 
this, the importance of a stockpile, and where you see that 
right now, where we are?
    General Berger. A couple of thoughts, ma'am. First, based 
on what we have seen in Ukraine in the last year the rate of 
expenditure of munitions, is probably a lot higher in some 
scenarios, some situations, than we recognize.
    Senator Capito. Mm-hmm.
    General Berger. It is a good--in other words, a good 
reminder to the rest of us, war isn't a 48-, 72-hour kind of 
event all the time. And every day, every week the expenditure 
amounts are very high. We have a great process in place. I am 
very comfortable with it in the Department of Defense, for each 
request from Ukraine, getting analyzed and examined, and who 
can provide what.
    But it is very clear that our stockpiles for training and 
for warfighting, we need to reassess the assumptions in those 
to make sure that we have the depth, because to highlight your 
point, our industrial base, using a phrase from the Vice Chair 
earlier, can't be just-in-time if we have to go to a conflict.
    Senator Capito. No.
    General Berger. We have got to have it just-in-case, we 
have the depth in that industrial base to account for a big 
surge.
    Senator Capito. Right. Yes. I mean, I think that is a 
source of concern.
    Admiral, do you have a comment on this?
    Admiral Gilday. I agree with everything the General said. I 
think the biggest thing we learned was the expenditure rates it 
has caused us to go back to take a look at our own wargaming 
and analysis, what our predicted and expenditure rates would 
be, and the questions and assumptions we made. So that is why, 
for the Navy and Marine Corps, you see four multiyear 
procurements of weapons in this budget proposal.
    Senator Capito. So maybe your initial wargaming estimates 
might have been low?
    Admiral Gilday. Yes.
    Senator Capito. Or just used differently?
    Admiral Gilday. Yes. Yes, I think that we all assumed that 
our expenditure rates would be lower, weapons are more 
technologically advanced, and that is not playing out so well, 
in Ukraine.
    Senator Capito. Yes.
    Admiral Gilday. So it has informed our thinking.
    Senator Capito. Okay. Thank you.
    Admiral Gilday. Yes, ma'am.
    Senator Capito. General, let me ask you a question on 
fentanyl use in the Navy and Marine Corps. It is a national 
problem. It is reflected in your Force. I understand between 
the years 2017 to 2021, 332 of our men and women in uniform 
succumb to an overdose. Are you all focusing on this in the 
Marine Corps?
    General Berger. Absolutely, yes. I would say anywhere that 
you travel in a Navy and Marine Corps, on any base, any 
station, you are going to find fentanyl as a top-of-the-list 
discussion when it comes to the drug issues that are difficult 
to detect, and readily available and affordable, absolutely. 
And it is, to your point, it is a killer. Every commander, 
every leader, enlisted officer, is focused on it, to answer 
your question. Yes, ma'am.
    Senator Capito. Well, thank you. Yes. And Mr. Secretary, I 
am sure that would be the same. I am out of time, but I would 
say it is such a different substance, and so lethal. You know, 
I think on the prevention and education side, you can't over-
educate, and over-emphasize, just because you are taking a 
little pill doesn't mean that this little pill is actually what 
they say it is.
    Mr. Secretary, I am out of time but----
    Secretary Del Toro. Senator, it is a major crisis in our 
Nation, and we, in the Department of Defense and the Department 
of the Navy are paying tremendous attention to it, to ensure 
that our troops understand that, and they should never be using 
drugs to start with, but for them to understand the real danger 
and threat that this immediately presents to one's life, and 
that there is no second chance, or it could be very little 
second chance----
    Senator Capito. Right.
    Secretary Del Toro [continuing]. When it comes to the use 
of fentanyl.
    Senator Capito. Thank you. Thank you all.
    Admiral Gilday. If I could just?
    Senator Capito. Yes.
    Admiral Gilday. We characterize it as a poison, yes.
    Senator Capito. Good.
    Admiral Gilday. To your point.
    Senator Capito. Good. It is.
    Admiral Gilday. You don't know what you are putting in your 
body, and it is killing people, 107,000.
    Senator Capito. Yes, yes. Well, thank you all very much. It 
is a tough fight. Thank you.
    Senator Tester. Senator Collins.
    Senator Collins. Thank you, Mr. Chairman.
    Admiral Gilday, I was pleased that my colleague from New 
Hampshire brought up the Shipyard and Infrastructure 
Optimization Program, as she says, that is a mouthful, the SIOP 
Program. And that is well resourced in the budget, which I am 
pleased to see, not only because the work that we both are 
interested in, at the Portsmouth Naval Shipyard in Kittery, 
Maine, is underway, one phase has been completed, but there is 
more to come, but also, because I am concerned about the number 
of submarines that aren't operational because they need 
maintenance, or refueling.
    And that is a trend that we need to reverse. I am told that 
nearly twice as many submarines as planned were not deployable 
in recent months because of maintenance or other issues. Are 
the investments in this budget sufficient for us to try to 
reverse that trend?
    Admiral Gilday. I think so, ma'am. A lot of this is on us 
in terms of process. There are three areas that we are really 
focused on. One, is eliminating surprises for whether it is a 
private or a public yard, in terms of what they need to do. It 
is just like doing a house renovation. It surprises, drive your 
budget up, and they drive you off schedule, so we have focused 
on that. And I will talk about numbers in just a minute.
    The second thing is material. So you have given us a pilot 
using OPM (Office of Personnel Management) money, so multiyear 
money, to not only put private yard availabilities on contract 
across fiscal years, but to also use that money to frontload 
the material so that the workers aren't waiting for that to 
arrive, and it is mitigating the risks that we are seeing with 
supply chain vulnerabilities.
    The third piece is the workforce. And I know you are well-
informed about, you know, developing an experienced workforce. 
As we continue to work with industry on that, based on those 
three areas, and the work that we have been doing, we have seen 
delay days out of shipyards come from more than 7,000 down 
3,000. That is not good enough.
    I predict, that based on the track that we are on, will be 
less than a thousand a-year-and-a-half from now. So by the end 
of fiscal year 2024, our goal is actually below 900. I think we 
are on track for that, but again the investments really in the 
material side, in terms of money, there is a $0.5 billion in 
Virginia-class submarine repair parts in this budget alone, to 
address some of that.
    So I think we are on the right track we are not satisfied 
yet, but the more operational availability that we return to 
fleet commanders, to your point about the submarines, the 
better off that we will be in terms of having a Navy operating 
forward.
    Senator Collins. Thank you. With regard to the workforce, 
let me just mention that the Portsmouth Naval Shipyard has one 
of the best apprenticeship programs that I have ever seen. Each 
year they bring in about a hundred new people into this 
apprenticeship program, they train in very realistic 
conditions, and very confined spaces, for example, and it 
really is a great program. And that is what I think we need to 
do more of, in industry as well, so that we have a pipeline of 
experienced workers.
    Mr. Secretary, I just have--well, I have many final 
questions I could ask, but I didn't want you to think I was 
ignoring you by not asking you a question today. And I do want 
to go back to the point that I made about the budget's 
assumptions on fuel costs, in my opening statement, because the 
budget request assumes some fuel price of only a $140 per 
barrel. And it was ironic that on the day of the presentation 
of the budget the fuel costs, as measured per barrel, was 20 
percent higher than budgeted.
    So my final question for this hearing is: Will you work 
with us to make sure that we do have sufficient funding for 
fuel? And explain to the Committee, what would be the 
implications if we have under-budgeted for fuel, in terms of 
flying hours, steaming days, training exercises, and other 
readiness activities?
    Secretary Del Toro. Yes, ma'am. And it is a serious impact, 
because as the CNO said earlier, at any given day one-third of 
our Fleet and Aircraft are operational, and therefore we use 
fuel quite a bit. And so we are significantly impacted by the 
cost of that fuel. It is important to estimate those costs 
appropriately.
    And certainly, again, you know, we thank the Congress for 
the support they gave us in 2023 by putting $9 billion towards 
inflation, but it certainly makes it more difficult to be able 
to budget properly, if we don't have the budget perfectly 
aligned to inflation.
    But that is a real difficult problem to do for OMB (Office 
of Management and Budget), and others, to be able to predict 
well ahead exactly what inflation might be next year. However, 
I think the greatest threat to our budget and the things that 
we are trying to accomplish today, actually is if the Congress 
were not able to pass an Appropriations Bill on time this year, 
and that will unquestionably, threaten all the things that we 
have talked about at this hearing today.
    Senator Collins. Well, I certainly agree with you on that. 
And I know that the Chairman does too. And that is why the 
sooner we can get information back from you, including, June 
10, seems awfully far off for the plan, but the sooner we can 
get responses the better off that we can be in getting our work 
done as well.
    I want to sincerely thank all three of you for the time you 
have spent with me, and also for your testimony today. Thank 
you.
    Senator Tester. Thank you, Senator Collins. I will echo 
those remarks. We appreciate your service, we appreciate the 
folks that you represent, and the commitment they have to 
keeping this country the country it is today.

                     ADDITIONAL COMMITTEE QUESTIONS

    I appreciate your testimony. And Senators may submit 
additional written questions, and we would ask that you respond 
to them, if you get them, in a reasonable amount of time.
    [The following questions were not asked at the hearing, but 
were submitted to the Department for response subsequent to the 
hearing:]
                 Questions Submitted to Carlos Del Toro
               Questions Submitted by Senator Jon Tester
    Question. As part of its Fiscal Year 2024 budget request, the Navy 
plans to decommission 8 ships before the end of their service life, 
including 2 Littoral Combat Ships. Mr. Secretary, you told us that you 
have enough LCS to cover your mission, but these ships are newer than 
my tractor back home and still have plenty of life left in them. There 
is no shortage of demand within the Department for additional maritime 
assets-particular among the Combatant Commands. Further, you last year 
mentioned the possibility of transferring LCS the Navy no longer wants 
to foreign nations.
    Have you made any progress in that regard?
    Answer. We have made good progress. In February 2023, Navy 
International Programs Office issued correspondence soliciting interest 
from foreign governments on potential transfer of decommissioned LCS. 
In response, we received formal Letters of Request for the transfer of 
the LCS from five (5) countries. As part of the next step, we are 
beginning the process of determining which interested countries can 
effectively operate and sustain these platforms, with the ultimate goal 
of allocating specific hulls for transfer.
    Question. I want to ask about a pressing healthcare issue in Japan 
that is affecting our military readiness. When we talk to Marines 
stationed, there, the top concern we hear about is the lack of 
healthcare for their dependents and DoD civilians. Constituents from 
Montana stationed in Japan and working for DoD have also contacted my 
office voicing the same-concerns. I raised this issue during our recent 
Subcommittee briefing with the Defense Health Agency, and while I 
understand some policy changes have been made, concerns about Japanese 
hospitals denying care remain
    What are you doing to fix this problem?
    Answer. Healthcare access issues impacting Sailors, Marines, 
families, and civilian employees stationed in Japan is an important 
topic for the Navy. The Japanese healthcare system operates 
fundamentally differently than in the United States, but we are 
actively working with the Defense Health Agency and other DoD 
components to address these issues and ensure our Sailors, Marines, 
families, and civilian employees get the support they need both in the 
continental United States and overseas, in locations like Japan.
    Question. In February, the, Government Accountability Office 
reported that the Navy is facing persistent and worsening sustainment 
challenges across its ten classes of surface ships. From data collected 
over a ten-year period, operating and support costs grew by about $2.5 
billion, while the number of operating hours of the ships actually 
decreased. We already have a smaller fleet than China, we can't afford 
ships to be stuck in port when they should be steaming. Unfortunately 
these findings are not surprising. Your Fiscal Year 2024 budget request 
adds $1.9 billion to the Ship Maintenance account, fully funding our-
maintenance to capacity at the public and private shipyards. This is a 
good thing, but I'm not sure money alone will fix the issue.
    What are some specific action items you have directed to improve 
fleet readiness?
    Answer. I have directed Navy leadership to continue to evolve a 
myriad of endeavors to improve fleet readiness. Two examples include: 
Naval Sustainment System- Shipyards and Surface Warfare Enterprise 
Performance-to-Plan.
    The Naval Sustainment System-Shipyards (NSS-SY) is the Navy's 
approach to identify and execute initiatives that reduce nuclear ship 
and submarine maintenance durations. NSS-SY is focused on three 
critical levers: reducing unplanned work, increasing throughput, and 
increasing material readiness. Each of these efforts is analytically 
supported by Center for Naval Analysis. NSS-SY waterfront efforts are 
focused on people-centric initiatives. NSS-SY will continue through the 
end of 2023 targeting on-time delivery of all availabilities. Upon 
completion of the NSS-SY contract, the government will assume control 
of all initiatives and continue improvements to work towards meeting 
class maintenance plans by FY 26.
    Surface Warfare Enterprise Performance-to-Plan (P2P) remains the 
key driver to Get Rea1 on the Navy's baseline readiness performance, 
identifying the most consequential levers that move the needle on 
outcomes and communicating performance barriers to accountable 
supported commanders. Through P2P-Surface (focused initially on DDG 51 
Class availability performance), Navy is seeing positive results in 
execution leading measures including planning, reduced growth work, 
early contract awards, reduced contract change cycle time, and improved 
long lead time material (LLTM) processes reducing DDG 51 Class Days of 
Maintenance Delay (DoMD) by 27%, from 424 (QI FY 21) to 308 (Q4 FY 22).
    Question. Nearly 1 year ago, three Sailors assigned to the USS 
George Washington committed suicide in the same week. The Navy's 
initial investigation found no correlation between these deaths, but 
found manning shortages, mental health provider shortages, and quality 
of life issues to be contributing factors. The Suicide Prevention and 
Response Independent Review Committee referred to these as ``day-to-day 
stressors.''
    We have heard alarming statistics about the Navy's vacant mental 
health positions, and senior leaders receiving a dozen sailor suicide 
risk reports daily.
    What reforms has the Navy implemented to respond to these suicides?
    Answer. The Navy is focusing resources and action on areas with 
higher risk of suicide, such as units that are in a maintenance phase.
    The Navy is increasing the number of mental health providers and 
chaplains on the waterfront. For Newport News Shipyard in particular, 
additional mental health professionals are now assigned to Refueling 
and Complex Overhaul (RCOH) aircraft carriers and have offices in close 
proximity to the ship. This increases accessibility and reduces commute 
times.
    In March, the Navy published the Mental Health Playbook to help 
normalize conversations around mental health and provide Sailors a 
roadmap to navigate care options.
    The Navy is also overhauling the totality of its prevention 
programs through the Advance Navy Culture initiative. This initiative 
will streamline and integrate related efforts and programs to enable on 
outcomes critical to readiness including increased connection, 
cohesion, and inclusion within commands, more effective stress 
management tools for Sailors in challenging environments, and an 
overall reduction in harmful behaviors across the force.
    At the Newport News Shipyard, the Navy has taken numerous actions 
to improve the quality of life of Sailors. These include:
  --Improving access to food options consistent with 24/7 work hours by 
        bringing in food trucks in the evenings, reopening the self-use 
        kitchen in the unaccompanied housing, and opening a Navy 
        Exchange-mini-mart within the confines of the shipyard;
  --Increasing Wi-Fi access, which is now available for Sailors' 
        personal use, to increase connections to family' and friends;
  --Centralizing parking, increasing the number of shuttles from 
        parking lots to the shipyard and adding shuttle service inside 
        the controlled industrial area;
  --Implementing unit-level morale efforts on the USS George Washington 
        by reopening retail sales, resuming monthly birthday 
        celebrations of Sailors, hosting therapy dogs onboard and 
        increasing engagement with the command resilience team.
    More broadly, all aircraft carriers in RCOH have reviewed their 
sponsorship and mentorship programs, incorporating changes that benefit 
first-term Sailors. Welcome handbooks have been rewritten to cover 
mental health and other critical resources and information relevant for 
a first-term Sailor audience. First-term Sailors also receive command 
handbooks that provide a broad overview of the ship and the ship 
services tailored to a carrier in the shipyard.
    The Department of the Navy (DON), in coordination with the 
Department of Defense (DoD) and the other Military Departments, is 
reviewing the 127 recommendations made in the Suicide Prevention and 
Response Independent Review Commission (SPRIRC) report from February 
2023. Recommendations include policy reforms, increased services, and 
overall improvements to quality of life for Service Members. The DON 
submitted prioritization and implementation plans to the Secretary of 
Defense in June 2023, and anticipates further guidance upon his review.
    Question. When will the final investigation report be released?
    Answer. The Phase I investigation specifically looked into the 
contributing factors and any causal links between the three tragic 
suicides in April 2022. Phase I is complete and was briefed to the 
families in December 2022.
    The Phase II investigation focused on the command climate and 
quality of life onboard the USS George Washington including the 
availability of support services, the challenging environment in the 
shipyard, lessons learned from past shipyard refueling overhauls, any 
possible effects of the COVID-19 pandemic and systemic challenges that 
impact aircraft carrier overhauls or construction in Newport News. 
Given the breadth and complexity of the investigation, a review is 
underway to inform the prioritization and resourcing of the 
recommendations. The report was released on 18 May 2023.
    Question. Does the Navy have the funding it needs in this budget 
request to make the necessary quality of life improvements?
    Answer. The DON is continuing to execute the President's Budget 
2023 and has sufficient funding based on current requirements. The Navy 
is committed to improving quality of life for Sailors and has 
significantly increased mental health and suicide prevention and 
response investments in out years. Fiscal Year (FY) 2022 investments 
totaled $62M. This increased to $74M in FY 2023, and the projected FY 
2024 investment is $102M. These additional investments will expand 
clinical and non-clinical mental health resources to support Service 
Members in:
  --Offering programs aimed at strengthening resilience and well-being
  --Increasing access to embedded mental health providers
  --Providing reintegration support to Service Members after a suicide 
        attempt, and,
  --Deploying rapid behavioral health support to units following a 
        suicide.
    The DON is currently assessing any need for additional funding and 
resources for FY 2024 and beyond to support the implementation of the 
127 recommendations from the February 2023 Suicide Prevention and 
Response Independent Review Committee (SPRIRC) report on Preventing 
Suicide in the Military and the recommendations from Phase II of the 
USS George Washington investigation.
    Question. The Department of Defense Fiscal Year 2021 Annual Report 
on Sexual Assault in the Military found that the Department of the Navy 
had the highest prevalence rate for sexual assault and unwanted sexual 
contact across all Services. Female Marines and male Sailors had the 
highest rates overall. The Suicide Prevention and Response Independent 
Review Committee visited with Sailors assigned to a ship in drydock. 
Sailors were sleeping in cars to prevent being sexually assaulted on 
the ship.
    The recently released Annual Report for Sexual Harassment and 
Violence at the Military Service Academies also found an alarming 
prevalence increase at the U.S. Naval Academy, your pipeline for 
officers.
    What is the Department of the Navy doing about these disturbing and 
unacceptable trends?
    Answer. The Department of the Navy (DON) is continuing to implement 
the recommendations from the 2021 Independent Review Commission on 
Sexual Assault in the Military (IRC). In Fiscal Year 2022 (FY22), I 
released ALNAV 024122 Interim Policy Governing Investigations of Formal 
Sexual Harassment Complaints under IO US. C 1561. This interim policy 
requires that Investigating Officers charged with investigating formal 
complaints of sexual harassment come from outside the command of the 
victim and the subject; creating an environment that encourages victims 
to come forward. Additionally, I released the No Wrong Door Policy and 
Safe to Report Policy in June of 2022 that ensures victims receive care 
and support or have a ``warm hand,-off' appropriate service providers, 
as well as assurance that they will not be disciplined for minor 
collateral misconduct for filing an unrestricted report of sexual 
assault.
    The DON is continuing to make strides in removing collateral duty 
Sexual Assault Response Coordinators (SARCs) and Sexual Assault 
Prevention and Response Victim Advocates (VAs) by hiring personnel at 
the 0-6 command level. The additional personnel will increase a 
workforce specifically trained to assist victims of sexual assault and 
sexual harassment. Hiring actions from both Navy and Marine Corps SARCs 
and VAs are underway and expect to replace all collateral duty 
personnel by FY26.
    After a review of the IRC recommendations, I directed the DON to 
prioritize five recommendations that focused on developing, educating, 
and promoting our leaders, to include those in the pipeline at the 
United States Naval Academy. These recommendations will equip leaders 
with the training and education necessary to deter violence and set 
conditions for healthy personal and professional relationships, thereby 
promoting protective command climates. These five recommendations are:

              DEVELOPING, EDUCATING, AND PROMOTING LEADERS
 
 
------------------------------------------------------------------------
      3.3b   Educate leaders on cyber harassment and technology-
              facilitated sexual harassment and sexual assault.
      3.4d   Review and revise Professional Military Education (PME) and
              Department of Defense (DoD) schoolhouse curricula to
              mainstream Women, Peace, and Security (WPS) priorities.
      3.5a   Use qualitative data to select and develop the right
              leaders.
       3.6   Building a climate for the reduction of sexual harassment
              and sexual assault as a fundamental leader development
              requirement.
      4.4c   Revise and update training modules on appropriate response
              to sexual assault and sexual harassment in PME for
              Officers and NCOs.
------------------------------------------------------------------------


    In August 2022, the DON defined ``cyberharassment'' allowing the 
DON to develop targeted training for Service Members and leadership on 
the prevention and appropriate response to harassing behaviors, 
including those of a sexual nature, that occur online. The DON 
anticipates launching cyberharassment training modules and webinars no 
later than (NLT) 30 September 2023 (Recommendation 3.3b).
    The DON is reviewing all PME and DoD schoolhouses for WPS 
principles. The Marine Corps has developed two MarineNet WPS courses: 
one for executives and one for junior/general population to help 
establish a WPS baseline understanding (Recommendation 3.4d).
    To select and develop the right leaders, the Navy is implementing 
the Naval Leadership Assessment Program (NLAP) to add more relevant and 
timely data to the process of selecting leaders to include reliable, 
and valid cognitive and non-cognitive data assessments, 360 
evaluations, structured job-related psychological interviews, and 
formal board interviews with Navy leadership (Recommendation 3.5a).
    The Navy and Marine Corps have conducted a comprehensive assessment 
to include a gap analysis of their leadership training curricula to 
ensure that the IRC recommended elements are fully integrated into 
future training modules. Currently, the Marine Corps Curriculum Review 
Board is in the process of approval for curriculum design, course 
descriptions, assessment overview and special areas of emphasis. The 
Navy is addressing curriculum gaps by piloting specific training to 
equip leaders to foster healthy climates (Recommendation 3.6).
    The Navy and Marine Corps have evaluated their existing PME 
training. Both Services are on track to design curricula that would 
eliminate reprisal, ostracism, and retaliation for survivors that 
report their experiences of sexual violence. Additionally, newly formed 
curricula has specifically designed modules to support leaders in 
helping survivors that are particularly vulnerable to sexual violence. 
All five of these recommendations will be implemented NLT 30 September 
2023 to aide in developing healthy climates and driving down the trends 
of sexual assault and sexual harassment as highlighted in the 2021 
report.
    Question. Where is the Department in hiring its prevention 
workforce and implementing the recommendations of the Independent 
Review Commission on Sexual Assault in the Military?
    Answer. The DON is continuing to implement the recommendations from 
the IRC. In November 2022, I signed a memorandum formally establishing 
the DON's Integrated Primary Prevention Policy. The DON, Navy, and 
Marine Corps intend to hire 1,055 full-time prevention workforce 
personnel between Fiscal Year (FY) 2022-2028. The Navy has hired and 
onboarded 43 personnel. The Marine Corps has hired and onboarded 18 
positions. Both Services have many hiring actions in progress and 
offers waiting to be accepted as it begins to ramp up the workforce.
                                 ______
                                 
            Questions Submitted by Senator Dianne Feinstein
    Question. The Navy has recently modernized its graving dock in San 
Diego and is also planning for an additional auxiliary floating dock in 
FY 25. While we welcome the Navy's investments in surge capacity, we 
also need to make sure that the Navy isn't discouraging the private 
sector from making and sustaining their own investments.
    What is the Navy doing to ensure that the ship repair industrial 
base remains healthy in San Diego and that these public investments are 
not negatively impacting critical, existing private sector capacity?
    Answer. The Navy is committed to enabling a healthy industrial base 
in San Diego and ensuring its actions do not have unintended negative 
consequences on our industry partners. The Navy's goal of utilizing the 
Naval Base San Diego (NBSD) graving dock remains to foster a 
competitive private industrial base that enables the Navy the 
opportunity to conduct all ship docking availabilities in ships' 
homeports. The NBSD graving dock was returned to service and certified 
to dock DDG 51 Class ships in August 2022, and within a month, the 
additional capacity provided by the NBSD graving dock was leveraged for 
an emergent docking. Had the government facility not been available, 
the docking would have been either delayed by approximately 8 months or 
the ship would have been forced out of port for the docking work, 
negatively impacting the crew and their families with next to no 
advance notice.
    In its efforts to mitigate any negative impacts to our industry 
partners, the Navy has refined its solicitation considerations for use 
of the NBSD graving dock and has implemented mechanisms that can allow 
for the place of performance to be changed to a private dock post-award 
if the contractor's dock would otherwise remain empty. The Navy 
continues to engage private repair yards and solicit feedback and 
refine its approach to maximize private dock usage and to use public 
docks to maintain competition. The Navy remains committed to working 
with industry and Congress to meet maintenance requirements while also 
promoting health of the industrial base.
                                 ______
                                 
             Questions Submitted by Senator Lisa Murkowski
    Question. I understand the Navy is collaborating with the Coast 
Guard in designing the Polar Security Cutters.
    Can you discuss how far along you are in the design process and 
elaborate on this project?
    What is the Navy doing to assist with the stopgap while we wait for 
the icebreaker?
    Answer. The Navy is collaborating with the Coast Guard on the 
Detail Design and Construction of the Polar Security Cutter (PSC), 
having formalized the relationship with a Memorandum of Agreement 
signed in 2017 to define specific roles and resource contributions. The 
PSC program is managed by an Integrated Program Office (IPO) comprised 
of Coast Guard and Navy personnel.
    The PSC remains in the Detail Design phase. An Initial Critical 
Design Review (CDR) was held in March 2022 and planning for the Final 
CDR is ongoing. The IPO expects the Final CDR to be held within the 
next 8 months. Design efforts related to the Final CDR directly support 
Production Readiness Review (PRR) milestones and ultimately the start 
of construction.
    Additionally, the IPO created a Prototype Fabrication Assessment 
(PFA) period, which is projected to start this summer and will provide 
a ramp up period to facilitate a seamless transition to construction. 
This risk reduction effort will allow for the construction of as many 
as eight PSC modules prior to PRR to accelerate industrial learning, 
allow the shipbuilder to test its production processes, and train its 
skilled workforce on the unique characteristics of the steel being used 
to construct this polar icebreaker.
    Question. There has been significant activity from our adversaries 
in the Arctic, however I have noticed a significant lack of presence 
from our own Navy by comparison.
    Do you have the shore side infrastructure to support a naval 
presence in the Arctic?
    Answer. Naval forces are unique in their ability to operate at sea 
away from fixed land bases. The ability to sustain and replenish 
surface ships, at sea and the persistent presence of our submarines 
gives the Navy a tremendous advantage in the austere and remote regions 
of the Arctic. Following National Defense Strategy guidance, the Navy 
accomplishes defense and protection of the homeland by using our bases 
in the Atlantic and Pacific, along with the bases offered by our Allies 
and Partners. The bases the Navy operates from are considered the fixed 
posture that allows the Navy to have presence anywhere in the world. 
This is the same whether the Navy operates in the lndo-Pacific, 
Atlantic, Caribbean, or the Arctic. Additionally, Naval air presence is 
supported by Joint Force and Interagency partner shore-side 
infrastructure. Of note, Naval Air Facility Adak was closed during the 
base realignment and closure (BRAC) in 1997.
    Question. Does this budget address the shore side needs of the Navy 
to have an Arctic presence?
    Answer. Navy does not currently have any specific military 
construction requirements in the Arctic; therefore, the budget does not 
address any shore side needs of the Navy to have an Arctic presence.
    Question. After WWII, the DoD dumped hundreds of tons of chemical 
weapons (mustard agent and Lewisite) at 2,000 fathoms depth off Attu. 
DoD was required by the 2007 Defense Authorization Act to conduct a 
survey of such sites in Hawaii and Alaska, yet it only conducted such 
surveys in shallow, tropical waters of Hawaii (two sites), and then 
argued that such a survey in Alaska was not needed, as the Hawaii and 
Alaska sites were 'substantially similar.' This is categorically not 
so.
    Why the DoD decline?
    Answer. The Navy respectfully defers to OSD to explain DoD policy 
for representative site selection in response to Sec. 314 of the FY 
2007 NDAA.
    Question. Will the Navy conduct a survey in Alaska?
    Answer. The Navy reviewed the language in accordance with Sec. 314 
of the FY 2007 NDAA, the Navy has and will comply with direction from 
the Secretary of Defense on locations to be surveyed.
                                 ______
                                 
               Questions Submitted by Senator Jerry Moran
    Question. It is my understanding that the CDC-Agency for Toxic 
Substances and Disease Registry (ATSDR) is on-site in Hawaii reviewing 
records of families who were affected by the Red Hill water 
contamination, at the request of the Navy. I think the ATSDR's presence 
is a step in the right direction to find answers for the 93,000 
affected individuals. I understand that Service Members do not need to 
grant authorization for this type of review, but families of Service 
Members have reported no communication or transparency relating to CDC-
ARSDR's presence in Hawaii.
    What is the purpose of the review and when will you be 
communicating with families about this review and its purpose?
    Answer. Defense Health Agency Public Health requested CDC/ATSDR 
epidemiologic assistance to better understand the illnesses reported by 
families impacted by the Red Hill fuel release. CDC/ATSDR officers 
reviewed the medical records of 653 individuals potentially exposed to 
the fuel release. Defense Health Agency Public Health will communicate 
the findings to the Red Hill community through multiple platforms 
including a Red Hill Health e-update, website, and webinar.
    Question. What guidance have you put out to commanders on the 
ground about what to communicate to these families?
    Answer. First and foremost, Navy leaders--at all levels--encourage 
individuals to seek medical attention if they are experiencing 
symptoms. In January 2023, the Defense Health Agency established the 
Red Hi11 Clinic, which provides same-day consultations for those 
experiencing symptoms potentially related to the Red Hill fuel release. 
Regarding the CDC-Agency for Toxic. Substances and Disease Registry 
(CDC/ATSDR), local Navy leadership and public affairs offices 
publicized the CDC/ATSDR survey and strongly encouraged participation. 
The Navy has also hosted town halls that included representatives from 
EPA, DOH and the CDC/ATSDR to provide information and answer questions 
from military personnel, families and the local community. The Navy 
will continue to coordinate closely with the Defense Health Agency, the 
Hawaii Department of Health, and the CDC/ATSDR to share information 
with the public as soon as it is available.
                                 ______
                                 
              Questions Submitted by Senator John Boozman
    Question. Congress strongly supports increased funding to build, 
maintain, and expand our naval fleet, While supporting the domestic 
American manufacturing base. However, our defense manufacturing base is 
facing challenges from foreign competition. For example, it is my 
understanding that the Navy's Constellation Class power systems upgrade 
was completed by a European manufacturer over a domestic manufacturer 
because the Navy focused on cost instead of enforcing domestic content 
requirements for power generation equipment.
    Can you please share what the Navy is doing to ensure strong 
enforcement of domestic content and Buy America standards, which will 
in turn support our domestic manufacturers? Do you support stronger 
domestic content requirements for power generation equipment?
    Answer. The health of the shipbuilding industrial base and sub-tier 
suppliers is vital to meeting our National Defense Strategy. Balancing 
imperatives such as strategic industrial base capabilities, supply 
chain resiliency, and affordability is a complex task. Through 
collaboration and smart investments, the industrial base can adapt and 
grow to build and maintain the fleet we need. The Navy is in compliance 
with domestic sourcing requirements and continually monitors and works 
with industry partners, including sub-tier suppliers, to assess the 
general health of the industrial base and identify opportunities for 
strengthening areas in need of reinforcement. This is almost always 
accomplished by encouraging competition while ensuring key domestic 
suppliers have sufficient work to sustain themselves. The Constellation 
Class power and propulsion systems are being manufactured to baseline 
requirements and have not undergone an upgrade. Although Section 
8113(b) of Public Law 116-9:), the FY 2020 Consolidated Appropriations 
Act, directs all propulsion engines and main reduction gears be 
manufactured domestically by the 11th ship, the Constellation Class 
will deliver ship 2 with 100% domestically built power and propulsion 
systems. Additionally, the power and propulsion equipment manufacturing 
transition has begun on the first ship with training United States 
workers on foreign production lines. The Navy supports all current 
domestic content requirements and will continue to assess opportunities 
to strengthen the domestic shipbuilding industrial base.
                                 ______
                                 
            Questions Submitted to Admiral Michael M. Gilday
               Questions Submitted by Senator Jon Tester
    Question. All military Services are facing historic recruiting 
challenges. There are many factors at play here, but notable causes 
remain a shrinking pool of eligible candidates, and a competitive job 
market. Last year, the Navy took a significant number of recruits from 
its Delayed Entry Program (DEP) Pool to try to meet its recruiting 
goals, thereby significantly depleting the Navy's accessions pipeline 
for this year. The Marine Corps reduced the size of its force below its 
Force Design 2030 goal.
    How is recruiting going for the Department of the Navy this year?
    Answer. Navy Recruiting Command (NRC) continues to aggressively 
work towards the Fiscal Year 2023 (FY23) accession mission, but is 
experiencing challenges. The previous FY was one of the toughest in 
recruiting history and NRC was unable to refill the DEP pool back to a 
healthy level of 50 percent. The inability to rebuild a healthy DEP 
created conditions for a contract-and- ship environment, which places 
additional stress on achieving the required mission. Throughout this 
FY, NRC has experienced great difficulty attracting Sailors in specific 
high-demand fields (Nuclear Field, Information Warfare, Special 
Warfare/Operations, Submarine, and certain aviation specialties), due 
to strong competition from the other Services and industry, a decline 
in labor force participation rate, a decline/loss of relationships and 
recruiter contacts, and a low market propensity among the target 
demographic. Propensity to serve declined from 13 percent to nine 
percent, which equates to approximately 1.2 million fewer prospects. In 
order to be successful this year, Navy will have to match or exceed the 
highest average contracting rate (927 Net Contract Attained (NCA)/week) 
in more than a decade to make the accessions mission.
    Question. Are you on track to meet your authorized strength levels?
    Answer. The Navy is employing numerous recruiting, attrition, and 
retention mitigations to help mitigate the end strength shortfalls in 
FY23. However, due to the challenging recruiting environment and the 
growing strength profile from FY22 to FY23, Navy does not anticipate 
achieving authorized strength levels in FY23.
    Question. In February, the Government Accountability Office 
reported that the Navy is facing persistent and worsening sustainment 
challenges across its ten classes of surface ships. From data collected 
over a ten-year period, operating and support costs grew by about $2.5 
billion, while the number of operating hours of the ships actually 
decreased. We already have a smaller fleet than China, we can't afford 
ships to be stuck in port when they should be steaming.
    The GAO report was specific to surface ship maintenance, but 
submarines are also plagued with longer than expected repair periods.
    What are we doing to increase readiness of the submarine force?
    Answer. Navy leadership remains dedicated to reducing our 
submarine's days of maintenance delay and returning our fighting force 
back to the fleet as expeditiously as possible. The Navy is executing 
multiple initiatives for improvement to eliminate the root causes of 
the delays. These initiatives are part of the Naval Sustainment System-
Shipyard (NSS-SY) and referred to as Pillars of effort. Each Pillar is 
led by a flag officer to ensure enterprise accountability. The Pillars 
include Engineering, Inside Shops, Waterfront, People, Fleet Ops, 
Infrastructure, Information Technology, Cost, and Planning. The Navy is 
engaged across the spectrum of submarine maintenance and modernization 
and is targeting improvements that will increase overall submarine 
readiness.
    In conjunction with these Pillars, the Navy established several 
critical efforts to drive change and improvements to the maintenance 
and sustainment periods through the implementation of a VIRGINIA Class 
(VACL) Material Strategy as well as additional focused efforts in the 
areas of Supplier Development, Shipyard Infrastructure, Strategic 
Outsourcing, and Workforce Development.
    VACL Material Strategy comprises four critical actions:
    1. Ensure proper phasing of material funding to support having a 
majority of the material at start of maintenance availabilities.
    2. Ensure proper levels of material funding per availability.
    3. Ensure the material funding is clearly separated/identified.
    4. Develop and implement a Bill of Material strategy to increase 
material availability.
    Key PB-24 investments in SSN maintenance are:
  --Fully funds Submarine Maintenance (1B4B) which will improve 
        confidence in schedule execution and material availability for 
        planned submarine overhauls. ($972M (FYDP))
  --Invests in the long lead-time (LLTM) materials that are causing 
        significant delays in VCS availabilities. ($896M (FYDP))
  --Addresses obsolete systems or components and invests in outsourced 
        work to enable shipyard worker focus on critical path work. 
        ($761M (FYDP))
  --Restores Navy Working Capital Fund investment in VCS material made 
        in FY23. ($350M (FYDP))
  --Funds planning of a private shipyard VCS availability in heel-to-
        toe fashion following BOISE EOH, continuing Navy's partnership 
        with private industry. ($170M (FYDP))
    The Navy is aggressively pursuing this VACL Material Strategy with 
all stakeholders to address material issues impacting VACL maintenance 
performance. A key focus is to bolster the industrial base in the 
following areas:
Supplier Development
    Develop existing suppliers and expand the number of Submarine 
Industrial Base suppliers to better support material needs. The Navy is 
working with stakeholders, including the two prime submarine 
shipbuilders--General Dynamics Electric Boat (GDEB) and Huntington 
Ingalls Industries--Newport News Shipbuilding (HII-NNS), to improve 
oversight and assessment of the supply chain, including conducting 
annual health and readiness assessments of the supplier base that 
supports the submarine shipbuilding enterprise. Using a comprehensive 
risk management approach, critical suppliers are evaluated on their 
ability to meet current demand and grow to meet future demand. This 
oversight and accountability model enables greater visibility of supply 
chain health and data informed decisionmaking that transition 
information to action.
    Investments in the Submarine Industrial Base ultimately provide 
additional benefits to sustainment, as beneficiary companies and 
suppliers supporting new construction also manufacture spares used for 
submarine maintenance availabilities.
Shipyard Infrastructure
    The Navy, GDEB, and HII-NNS, have each invested to expand and 
modernize facilities and shipyard infrastructure to support submarine 
construction capacity. The Navy has primarily used capital expenditure 
(CAPEX) and Construction Readiness Incentives (CRI) to support both 
shipbuilders' capital investments. The Navy and both shipbuilders have 
reached a common understanding of the current facilities, fixtures, 
footprint, and resources needed to achieve the construction capacity to 
reach the COLUMBIA SSBN and two VACL SSN (1+2) serial submarine 
construction rate, as well as the risks and constraints as part of that 
baseline. Additionally, the Navy is investing in the modernization and 
expansion of facilities and infrastructure at the public shipyards 
through the Navy's Shipyard Infrastructure Optimization Plan (SIOP). 
Specifically, SIOP is designed to update the physical layout of the 
four public shipyards, upgrade and modernize their dry docks, and 
replace antiquated capital equipment. FY23 enacted appropriations 
included $1.8B for SIOP efforts. PB24 continues SIOP investments 
requesting $2.7B in FY24 and $9.9B across the FYDP.
Strategic Outsourcing
    Strategic outsourcing provides the dual benefit of supporting 
increased production at the public shipyards while leveraging existing 
capacity and stabilizing the workload for other industry partners. 
These efforts are focused on increasing depot-level capacity and 
reducing CNO availability duration. This work includes a combination of 
preservation, onboard ship system work, structural, electrical shop 
work, support services, and component repairs.
    At the private shipyards, GDEB is continuing to execute a 
combination of traditional ``buy'' purchase orders and the Focus 
Factory (FF) outsourcing concept, which is a dedicated approach to 
allow the transfer of work and technical rigor to the industrial base 
using shipbuilder instructions, processes, and supervision. Newport 
News Shipbuilding (NNS) is outsourcing approximately 1 million labor 
hours per year to address footprint and work center capacity 
constraints. This work includes a combination of large structural 
assemblies, steel fabrication, machining, and blast and coat 
operations. NNS intends to maintain this level of outsourcing over the 
next 5 years based on current demand signals. An extensive amount of 
work has been performed to assess and develop suppliers to support this 
workload. Suppliers are beginning to demonstrate the ability to 
overcome the learning curve but workforce development and employee 
retention remain challenging.
Workforce Development
    To keep pace with the existential threat of shrinking manufacturing 
base expertise and experience, the nation must view the generational 
increase in requirements for submarine shipbuilding and maintenance as 
an opportunity to reimagine traditional approaches. These approaches 
must address skilled labor resource shortages, bridge disconnects 
between school-based education and domestic defense manufacturing 
skillsets and reinvigorate community connection with the Navy mission. 
The Navy is implementing a strategy in partnership with the Office of 
the Secretary of Defense Industrial Base Analysis and Sustainment 
Program, industry, regional trade associations, and state/local 
governments to address critical Submarine Industrial Base workforce 
challenges in the attraction, recruitment, training and development, 
and retention of the vital defense industrial base workforce.
Workforce Pay and Retention
    NAVSEA is leveraging a three-pronged approach to address hiring 
challenges and improve retention.
  --Special Pay Rates: One of the leading indicators related to under 
        performance of hiring plans is the disparity of pay in 
        comparison to private industry. Each shipyard developed data-
        driven positions to be considered for Special Pay Rates
  --Through the Naval Sustainment System-Shipyard (NSS-SY) People 
        Pillar, the Expert Tradesperson initiative creates a career 
        path that incentivizes our best and brightest mechanics to stay 
        in the Wage Grade field. The Expert Tradesperson position was 
        established with a clear vision and intent to enhance a career 
        in trades and increase responsibilities and authorities within 
        the production department, thereby dramatically improving 
        throughput and productive capacity.
  --Pursuing Exceptions to Pay Increase Limitations: Annual 
        appropriations law found in the Financial Services and General 
        Government Appropriations Act places limits on wage schedule 
        increases for Federal Wage System positions. This limitation 
        does not provide parity with private industry and places undue 
        burden on the naval shipyards to recruit or retain qualified 
        employees.
Strategic Submarines Sustainment Efforts
    OHIO Class SSBNs remain the cornerstone of our national security. 
The Navy established Program Management Office (PMS) 396 in October 
2021 to focus on the sustainment of OHIO Class SSBNs for fleet tasking 
and is taking a multi-pronged approach to SSBN sustainment and 
readiness. This includes technical rigor and adherence to requirements, 
proactive solutions to maintenance and material issues, incremental 
modernization to meet future needs/threats, continuous data feedback 
and analyses to routinely refine and improve maintenance requirements, 
work execution, and develop/execute depot maintenance schedule.
    Similar to the VACL, the Navy remains dedicated to reducing our 
strategic submarines' days of maintenance delay and returning our 
fighting force back to the fleet. We are ensuring VACL lessons are 
implemented and applied and have focused efforts in the areas of 
Supplier Development and Sea-Based Strategic Deterrence Infrastructure.
                                 ______
                                 
              Questions Submitted by Senator Tammy Baldwin
    Question. Admiral Gilday, during the hearing, General Berger 
explained his justification for listing the LPD as his number one item 
on the Marine Corps Unfunded Priorities List, can you please respond to 
his points?
    If the Navy does not plan to purchase an LPD for the next 5 years, 
how will the Navy fill that capability gap and/or mitigate associated 
risks with ceasing acquisition of the LPD?
    Answer. General Berger and I agree on the requirement for 31 
amphibious ships, and we are committed to ensuring we meet this 
requirement and do so in a timely manner, but with a capable, 
sustainable mix of ship classes that will support our Marines and 
Sailors for decades to come. The FY24 budget reflects a pause in 
procuring LPDs in order to conduct an LPD 17 Flt II amphibious ship 
cost/capability study and complete the Battle Force Ship Assessment & 
Requirement (BFSAR) report to Congress which will inform the FY25 
budget's way ahead for LPD acquisition.
                                 ______
                                 
             Questions Submitted by Senator Lisa Murkowski
    Question. The Navy has conducted three surveys of WWII munitions 
and explosives of concern (including Unexploded Ordnance, UXO) on the 
seabed at Unalaska, and has identified several areas where these 
hazards may be. It has concluded that risks to public safety are 
present in many of these areas. I, and I believe the Navy view these 
seabed MEC/UXOs as a serious risk to public safety in the Unalaska/
Dutch Harbor area. Yet, the Navy does not plan to conduct another 
survey until 2027. To date the Navy has apparently only used Side Scan 
Sonar in its surveys, but no underwater metal detectors, ROVs, 
Synthetic Aperture Sonar, to locate these explosive hazards.
    Why?
    Answer. The Navy is committed to protecting human health and the 
environment by investigating, remediating and implementing response 
actions at munition sites on land and at sea. To protect public safety 
in the Unalaska/Dutch Harbor area, the Navy is implementing response 
actions to include land use controls, notifying the public, and 
conducting outreach to communities that might access the area.
    While there have been great strides in the past several years to 
develop and obtain technologies that can find munitions on the 
seafloor, there are currently no technologies or equipment that can 
operate in the challenging sea conditions in Alaska and provide high-
fidelity information to identify and classify Munitions and Explosives 
of Concern (MEC). The Navy has assessed the ability of other equipment, 
such as Remotely Operated Vehicles and currently available metal 
detectors, to operate in the Unalaska/Dutch Harbor area as well. 
Unfortunately, these technologies do not generate data results that are 
superior to side scan sonar.
    The planned MEC survey dates in Fiscal Year 2027 (FY 27) are based 
on the expected timelines to develop new technology through the 
Department of Defense's Strategic Environmental Research and 
Development Program (SERDP) and the Environmental Security Technology 
Certification Program (ESTCP). The Navy plans to use synthetic aperture 
sonar along with other equipment FY27. The Navy remains committed to 
moving forward on underwater investigation and remediation as soon as 
possible, and will adjust timelines as suitable equipment is available.
    Question. Will the Navy use all technologies at its disposal, to 
locate these MEC/UXOs, and to the extent that is safe, remove or 
contain these munition hazards such that they no longer pose a threat 
to the local public?
    Answer. Yes, the Navy is committed to taking all actions necessary 
to protect human health and the environment.
                                 ______
                                 
               Questions Submitted by Senator Jerry Moran
    Question. The Skillbridge program is a valuable and effective 
program for servicemembers to gain practical civilian work experience 
prior to separation. The Navy recently released guidance restricting 
access to Skillbridge for its senior enlisted and officers. While, the 
Navy's recruiting challenges are not as drastic as others, I believe 
the Navy should be prioritizing programs to stay ahead of this issue.
    Can you share what specific information and factors influenced this 
guidance?
    Answer. The Navy's rationale for these program changes is to 
balance between mission readiness and Sailors' ability to improve post-
service employment opportunities, consistent with the MyNavy HR 
Strategic Goal to Build a Navy that can Fight and Win.
    The Navy understands the value of SkillBridge for transitioning 
Sailors. Our policy changes focus SkillBridge opportunities on junior 
Sailors who are less likely to have extensive formal education, or 
highly developed skillsets, placing them at the highest risk for post-
service unemployment. These changes focus the program on those whom it 
was intended to help, while also taking into account critical manning 
needs and mission readiness.
    The Navy is also mindful of the significant investment we make in 
officer education. These policy changes ensure maximum return on that 
investment by requiring officers to fulfill their commitments to the 
Navy before embarking on SkillBridge.
    Question. Did you consult with DoD before issuing these new 
guidelines?
    Answer. Yes. We socialized our proposed policy changes with 
SkillBridge leadership at the Office of the Under Secretary of Defense 
for Personnel and Readiness.
    Question. Private sector firms are providing incredible fellowships 
and internships at no cost to the Services beyond sustaining the 
service members' pay and benefits.
    Does the Navy have an alternative program that costs less and 
delivers similar outcomes while also improving the transition 
experience?
    Answer. The Navy is fully committed to assisting our Sailors' 
successful transition to civilian life. It is our goal to enable former 
Sailors to become productive citizens and ambassadors for the Navy in 
which they served. We fully support and encourage their participation 
in the Transition Assistance Program as required by law, along with 
participation in other transition or internship programs, such as 
SkillBridge, as the individual unit's mission requirements allow.
                                 ______
                                 
              Questions Submitted by Senator John Boozman
    Question. In a potential conflict in the Indo-Pacific region, the 
strength of our Navy will be one of the key factors for control of the 
region. Given the current pace of the People's Republic of China (PRC) 
naval expansion, now more than ever we must focus on improving and 
maintaining the readiness of our current fleet.
    Admiral Gilday, I know that you understand this problem better than 
anyone. Can you please talk to the initiatives that the Navy is 
implementing to modernize and optimize our shipyards to ensure our 
fleet is prepared for the possibility of future conflict?
    Answer. The Navy's primary initiative to modernize and optimize the 
four public shipyards is the Shipyard Infrastructure Optimization 
Program (SIOP). Shipyards with resilient facilities, efficient layouts, 
modernized equipment, and digital interconnections generate Fleet 
readiness and strengthen our Nation's security.
    With the support received from Congress--to include the $1.7 
billion appropriated in Fiscal Year (FY) 2023--SIOP is advancing three 
lines of effort (LOE): (1) deliver required dry dock repairs and 
upgrades to support current and planned classes of nuclear-powered 
aircraft carriers and submarines, (2) optimize workflow within the 
shipyards through significant changes to their physical layout and 
modernizing facilities, and (3) recapitalize obsolete industrial plant 
equipment with modern technology, substantially increasing productivity 
and safety. In addition, SIOP provides a unique opportunity to address 
environmental stewardship, climate change, and energy resiliency, while 
updating the shipyards to Navy criteria and industry standards.
    SIOP has already achieved a number of accomplishments:
  --Completion of the Portsmouth Naval Shipyard (PNSY) Super Flood 
        Basin construction project and the modernized Norfolk Naval 
        Shipyard (NNSY) Dry Dock 4.
  --Construction contract awards for the NNSY Dry Dock 8 Saltwater 
        Upgrades and the Pearl Harbor Naval Shipyard (PHNS) Dry Dock 3 
        Replacement.
  --Preliminary design of a Gerald R. Ford-class aircraft carrier 
        capable dry dock at Puget Sound Naval Shipyard (PSNS).
  --Awarding multiple Facilities Sustainment, Restoration, and 
        Modernization projects across all four shipyards.
  --Making a of range of capital equipment investments to include 
        delivery of a 175-ton portal crane to PNSY.
    The foundation of SIOP's optimization effort is made up of the 
industrial modeling and simulation, engineering studies, and area 
development plans underway for each shipyard. SIOP completed the first 
increment of industrial modeling in 2022, which provided facility-level 
data describing optimized workflow among buildings and validated 
reductions in ship maintenance availability durations achievable by 
optimizing facility layouts and infrastructure. The second increment of 
industrial modeling started in 2022 and focuses on processes within 
each building to optimize shop floor layout and equipment to further 
increase efficiencies. Using the modeled data from the first increment 
of industrial modeling and data gathered from engineering studies, area 
development plans are underway at all four shipyards. Leveraging a 
SIOP-tailored major defense acquisition process, the Navy will make 
investment decisions that will lead to design and construction of the 
preferred alternative at each shipyard.
    As the deliberate, long-term planning progresses that will create 
the efficiencies and throughput needed in our public shipyards, the 
Navy is making significant near-term investments in facilities and 
equipment to support the platforms in the fleet and entering service. 
The Navy's FY 2024 President's Budget Submission confirms the 
Administration's commitment to SIOP with $9.9B of funding across the 
FYs 2024-2028 Future Years Defense Program.
    Navy readiness demands that all SIOP investments are coordinated 
with fleet operational commitments to ensure alignment of requirements, 
construction, and ship maintenance, while remaining mindful of the 
impact SIOP will have on our shipyard workers and our need for 
sustainable infrastructure. This includes ensuring the program is 
integrated with the Naval Sea Systems Command Performance to Plan, the 
Naval Sustainment System--Shipyards efforts, local communities and 
regulators, and the Administration's climate initiatives.
                                 ______
                                 
             Questions Submitted to General David H. Berger
               Questions Submitted by Senator Jon Tester
    Question. You recently quoted a 32 percent readiness rate for our 
amphibious fleet. You're not proposing to buy any new amphibious ships 
in the 2024 budget, but at the same time are proposing to retire 3 
amphibious ships, further shrinking the fleet.
    What size amphibious fleet do we need to support Force Design 2030?
    Answer. We need no less than 31 Amphibious Warfare Ships to enable 
Marine Corps Title 10 missions in support of the joint force while 
providing minimal ARG/MEU presence globally in support of Combatant 
Commanders. This number is threat informed and risk assessed. It is 
scenario based, and model driven through a multiple phase event 
executed by the analytic arms of the Navy and the Marine Corps. It is 
imperative for delivering our Marines and their equipment on time, at 
decisive locations, to contest strategic areas in support of our 
Nation's most demanding war planning efforts. However, there is still 
significant risk with only 31 amphibious warfare ships due to 
readiness. Even with an inventory of 31, four of our last five ARG/MEUs 
have been delayed, and one patrol executed with two ships instead of 
three. This requirement is consistent with 11 amphibious warfare ship 
inventory studies completed over the last 14 years.
    Question. Is it accurate that last year, the Marine Corps was 
unable to support certain recent deployment requirements from the 
Combatant Commanders?
    Answer. The Marine Corps remains postured and prepared to serve as 
the Nation's crisis response force, providing credible forces where the 
Nation is least ready. Last year, following the Russian invasion of 
Ukraine in February of 2022, Marines stood ready to sortie to the U.S. 
European Command. However, due to readiness issues of certain 
Amphibious Warfare Ships, we were unable to provide this option to the 
EUCOM Commander and Secretary of Defense.
    Then, in February of this year, when Turkey experienced one of the 
most devastating earthquakes in the region's history, Marines who are 
trained and prepared to support humanitarian aid operations were once 
again ready to deploy. Due to the availability of amphibious shipping, 
this deployment option was not available to the Secretary of Defense. 
An amphibious ship with embarked Marines could have provided the 
Combatant Commander with capabilities such as a hospital, large 
berthing spaces, water purification, heavy lift helicopters, debris 
removal, and transportation via MV-22 tiltrotor aircraft, and a landing 
force of 2,400 Marines trained in Humanitarian Assistance/Disaster 
Relief (HA/DR). Instead, Marines forward based in Naples, Italy 
established a forward crisis response operations center at Incirlik Air 
Base in Turkey. Without the organic and sovereign capabilities of an 
embarked MEU aboard amphibious ships, this HA/DR response option was 
severely reduced, and the nation was unable to support a NATO partner 
as we traditionally have in a crisis.
    Question. All military services are facing historic recruiting 
challenges. There are many factors at play here, but notable causes 
remain a shrinking pool of eligible candidates, and a competitive job 
market.
    Last year, the Navy took a significant number of recruits from its 
Delayed Entry Pool to try to meet its recruiting goals, thereby 
significantly depleting the Navy's accessions pipeline for this year. 
The Marine Corps reduced the size of its force below its Force Design 
2030 goal.
    Is readiness now a concern for the Marine Corps?
    Answer. The Marine Corps remains the Nation's force-in-readiness--a 
postured naval expeditionary force ready to deter adversaries, respond 
to crisis and conflict, and contribute to Naval and Joint Force 
operations. Our identity as Marines centers on being ready to deter, 
fight, and win. As individuals, as units, and as a Corps, everything we 
do is in support of warfighting advantage and being most ready when the 
Nation is least ready. This is our obligation to the American people.
    Our FY23 end strength target is 172,300. While enlisted recruiting 
continues to face unprecedented challenges, retention is responding 
positively across almost all metrics. For both first term reenlistments 
and career-oriented Marines we have retained over 104% of our goal. 
This retention rate of this magnitude is record setting. Current plans 
achieve the Force Design 2030 floor of 174,600 by FY30; the intent is 
to achieve the floor sooner if possible. The Marine Corps adjusted its 
Active Component enlisted recruiting mission in FY22 by 1,500 to 
mitigate the effects of COVID and new medical screening system 
implementation. Despite FY22 challenges, the Marine Corps achieved its 
enlisted recruiting goal. However, doing so reduced the Service's 
delayed entry recruit pool from a historical average of over 50% to 
approximately 30%. The FY23 Active Component enlisted recruiting 
mission was modified in December 2022 from 31,900 to 28,900 to mitigate 
risk due to the current recruiting environment and limit further 
delayed entry pool degradation.
    Our Nation is facing a recruiting strain that is unparalleled in 
the All-Volunteer Force era. All Services are affected by the current 
confluence of a stagnant youth population, declining youth propensity 
to serve, declining percentage of qualified youth, and fragmented 
advertising markets. This is a national problem requiring a whole-of-
nation dialogue. In keeping with the tenets of Force Design 2030, the 
Marine Corps is increasing retention of our highest performing Marines, 
especially within leadership and highly technical billets. This will 
prepare our forces to succeed on dispersed, complex, distributed, and 
high-technology future battlefields. We will continue to refine our 
policies consistent with Talent Management 2030 to best align the 
innate aptitudes, unique skill sets, and personal and professional 
aspirations of individual Marines to the warfighting requirements of 
the Marine Corps--over the entirety of a Marine's career. Young 
Americans who earn the title of ``Marine'' can expect to be challenged 
through higher quality, more intense, and more sophisticated training 
and education than ever before.
    Question. I want to ask about a pressing healthcare issue in Japan 
that is affecting our military readiness. When we talk to Marines 
stationed there, the top concern we hear about is the lack of 
healthcare for their dependents and DoD civilians.
    Constituents from Montana stationed in Japan and working for DoD 
have also contacted my office voicing the same concerns.
    I raised this issue during our recent Subcommittee briefing with 
the Defense Health Agency, and while I understand some policy changes 
have been made, concerns about Japanese hospitals denying care remain.
    Are you hearing the same from Marines and civilians stationed in 
Japan?
    Answer. Yes, healthcare access issues impacting Marines, families, 
and civilian employees stationed in Japan is an important topic for the 
Marine Corps. At the recent Executive meeting of USMC 3 and 4 star 
Generals, this topic was prioritized. The Japanese healthcare system 
operates fundamentally differently than in the United States. There is 
a different mechanism for accessing care both in a prehospital setting 
and specialty care. We are actively working with the Defense Health 
Agency and other DoD components to address these issues and ensure our 
Marines, families, and civilian employees get the support they need 
both in the continental United States and overseas, in locations like 
Japan.
    Question. Last fiscal year, the Marine Corps did not spend all of 
its initial funding to begin hiring its prevention workforce.
    What is the status of the Marine Corps hiring for these positions?
    Answer. To date, 85 positions are posted or have selected 
candidates with Tentative Job Offers and 24 personnel have been hired. 
The Marine Corps noted in the OSD Implementation Roadmap development 
that execution of IRC recommendations require time for implementation 
planning and assessments, clarification of tasks, and Service-specific 
input to support a phased, iterative approach. The accelerated funding 
the Marine Corps received at the beginning of the 3rd quarter FY22 in 
support of the IRC was not obligated. Originally, the Marine Corps was 
planning for FY23 implementation of the IRC recommendations. Since 
notification of FY22 funding, the Marine Corps has completed the 
necessary administrative actions and all hiring/payroll processes to 
commence IRC hiring actions in support of IRC requirements. The full 
implementation of Marine Corps hiring, based on SAPR IRC 
recommendations, is in progress.
    Question. Are you on track to fill these positions this fiscal 
year?
    Answer. No. We are behind. That said, we are working to get on 
track with filling these positions this fiscal year and are currently 
at 14 percent of our FY23 goal to hire 369 positions worldwide, with 
new vacancy announcements being posted regularly. These positions 
include 121 SARCs, 194 Victim Advocates, 23 Primary Prevention 
Integrators, and 31 Equal Opportunity Advisors. Marine Corps 
implementation of all IRC requirements will require significant 
enduring resourcing, programmatic changes for manpower training, and 
military justice policy and authorities.
                                 ______
                                 
              Questions Submitted by Senator John Boozman
    Question. General Berger, I read in your written statement that you 
have invested significantly in quality-of-life improvements for Marines 
living in the barracks. However, I also saw that 16% of the facilities 
are in poor or failing conditions.
    What investments can we make to ensure that Marines and their 
families have the high-quality housing they deserve, and do you see a 
correlation between the quality of your barracks and housing and the 
recruiting and retention issue?
    Answer. The Marine Corps sees a direct correlation between the 
condition of our quality of life (QOL) facilities with recruitment and 
retention. As stated in the Marine Corps' Talent Management 2030 plan, 
``Quality of life is one of the leading reasons Marines choose to 
depart our Corps. We must renew our focus on meeting Marines' needs 
like high-quality barracks, family housing, and chow halls; adequate 
childcare center capacity; and sufficient options for pediatric care.''
    To achieve these goals, the Marine Corps will invest $116M to 
renovate 13 barracks in FY24, as well as over $201M in family housing 
construction and operations. The Marine Corps strives to improve the 
QOL for its service members and their families, and with these 
investments, hopes to increase retention and recruiting measures.
    Question. General Berger, I understand a large part of Force Design 
and the stand- in forces concept is forward deployed Marines who are 
already in place when the worst- case scenario unfolds. This plan 
requires resiliency, self-sufficiency, and the ability to punch back, 
after taking a punch. It seems the MRIC, or Medium-Range Intercept 
Capability system is important for this capacity.
    Can you tell me about this systems progress and your planned 
investments for FY24?
    Answer. MRIC is an expeditionary, land-based, medium-range, 
surface-to-air fires system that will enable Joint, Marine Corps, and 
partner forces to operate and persist within contested areas by 
providing these forces with the capability to defend against cruise 
missiles and other aerial threats. The Marine Corps is utilizing a 
Middle Tier Acquisition (MTA) approach to procure an MRIC prototype 
system. The MRIC rapid prototype effort began in FY21, demonstrated 
success against relevant target profiles through a series of multiple 
live fire tests during FY22 and FY23, and remains on track to deliver a 
prototype system to conduct operationally relevant demonstrations by 
the end of FY25. This will inform the Marine Corps' follow-on materiel 
development decision in order to meet the Force Design requirement to 
field an MRIC Battery to each of the three Low Altitude Air Defense 
(LAAD) Battalions in FY26, FY27, and FY28.
    The FY24 President's Budget request $44M to support munition and 
component level procurement of the prototype system, as well as the 
operation and maintenance, and research and development requirements 
for the planned operational demonstration and necessary preparatory 
events and activities. These include training Marines to operate the 
prototype system, performance of an operational demonstration in 
Arizona, and conducting a quick reaction assessment in New Mexico. The 
last event will be overseen by the Marine Corps' Operational Test and 
Evaluation Activity.

                          SUBCOMMITTEE RECESS

    Senator Tester. Look, I think predictability in the 
industrial base is really, really important. And I think, 
making sure we are getting the biggest bang for the buck, by 
getting folks to have competitive contracts, and getting these 
out on time is also very important.
    And I look forward to working with all three of you, as do 
Senator Collins, to make sure that when this budget hits the 
ground, we all know what is in it, and we all know what to 
expect the results of it are, because I think it is a 
critically important moment in time. So thank you all for what 
you do.
    This defense subcommittee will reconvene on Tuesday, April 
18, at 10 a.m., to hear from the Air Force.
    We stand in recess.
    [Whereupon, at 11:33 a.m., Tuesday, March 28, the 
subcommittee was recessed, to reconvene at 10 a.m., Tuesday, 
April 18.]