    [Senate Hearing 118-570, Part 2]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 118-570

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2025

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

                                    HEARINGS

                                    BEFORE A

                              SUBCOMMITTEE OF THE

                COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE

                        ONE HUNDRED EIGHTEENTH CONGRESS

                                 SECOND SESSION

                                       ON

                               H.R. 8774/S. 4921

      AN ACT MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE
         FISCAL YEAR ENDING SEPTEMBER 30, 2025, AND FOR OTHER PURPOSES

                                   __________

                                     PART 2

                             Department of Defense
                           Nondepartmental Witnesses

                                   __________

             Printed for the use of the Committee on Appropriations

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

            Available via the World Wide Web: http://www.govinfo.gov

                                   __________

                          U.S. GOVERNMENT PUBLISHING OFFICE
    55-293 PDF                     WASHINGTON : 2025

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

                          COMMITTEE ON APPROPRIATIONS

                        PATTY MURRAY, Washington, Chair
    RICHARD J. DURBIN, Illinois          SUSAN M. COLLINS, Maine, Vice
    JACK REED, Rhode Island                  Chair
    JON TESTER, Montana                  MITCH McCONNELL, Kentucky
    JEANNE SHAHEEN, New Hampshire        LISA MURKOWSKI, Alaska
    JEFF MERKLEY, Oregon                 LINDSEY GRAHAM, South Carolina
    CHRISTOPHER A. COONS, Delaware       JERRY MORAN, Kansas
    BRIAN SCHATZ, Hawaii                 JOHN HOEVEN, North Dakota
    TAMMY BALDWIN, Wisconsin             JOHN BOOZMAN, Arkansas
    CHRISTOPHER MURPHY, Connecticut      SHELLEY MOORE CAPITO, West
    JOE MANCHIN, III, West Virginia          Virginia
    CHRIS VAN HOLLEN, Maryland           JOHN KENNEDY, Louisiana
    MARTIN HEINRICH, New Mexico          CINDY HYDE-SMITH, Mississippi
    GARY PETERS, Michigan                BILL HAGERTY, Tennessee
    KYRSTEN SINEMA, Arizona              KATIE BRITT, Alabama
                                         MARCO RUBIO, Florida
                                         DEB FISCHER, Nebraska

                          Evan Schatz, Staff Director
                  Elizabeth McDonnell, Minority Staff Director

                                   ------

                            Subcommittee on Defense

                         JON TESTER, Montana, Chairman
    RICHARD J. DURBIN, Illinois          SUSAN M. COLLINS, Maine, Ranking
    PATTY MURRAY, Washington             MITCH McCONNELL, Kentucky
    JACK REED, Rhode Island              LISA MURKOWSKI, Alaska
    BRIAN SCHATZ, Hawaii                 LINDSEY GRAHAM, South Carolina
    TAMMY BALDWIN, Wisconsin             JERRY MORAN, Kansas
    JEANNE SHAHEEN, New Hampshire        JOHN HOEVEN, North Dakota
    CHRISTOPHER MURPHY, Connecticut      JOHN BOOZMAN, Arkansas
    CHRISTOPHER A. COONS, Delaware       SHELLEY MOORE CAPITO, West
                                             Virginia

                               Professional Staff

                                  Kate Kaufer
                                 Mike Clementi
                                 Laura Forrest
                                 Abigail Grace
                                   Katy Hagan
                                 Brigid Kolish
                                  Rob Leonard
                                  Ryan Pettit
                                Kimberly Segura
                            Ryan Kaldahl (Minority)
                            Todd Phillips (Minority)
                            Jason Potter (Minority)
                           Jesse Tolleson (Minority)
                           Mike Wakefield (Minority)

                             Administrative Support

                               Gabriella Armonda
                             Alex Shultz (Minority)

                                C O N T E N T S

                                  ----------

                                    HEARINGS
                             Tuesday, April 9, 2024

                                                                       Page

    Department of Defense: Department of the Air Force and Space
      Force: Office of the Secretary.................................     1

                            Tuesday, April 16, 2024

    Department of Defense: Department of the Navy: Office of the
      Secretary......................................................    51

                             Wednesday, May 8, 2024

    Department of Defense: Office of the Secretary of Defense........   141

                            Wednesday, May 15, 2024

    Department of Defense: Defense Acquisition Programs..............   207

                             Tuesday, May 21, 2024

    Department of Defense: Department of the Army: Office of the
      Secretary......................................................   269

                             Tuesday, June 18, 2024

    Department of Defense: National Guard and Reserve................   311

                                  ----------

                                  BACK MATTER

    List of Witnesses, Communications, and Prepared Statements.......   397

    Nondepartmental Witnesses........................................   373

    Subject Index....................................................   401
        Department of the Air Force: Office of the Secretary.........   401
            United States Space Force................................   401
        Department of the Army: Office of the Secretary..............   401
        Department of the Navy: Office of the Secretary..............   402
            United States Marine Coprs...............................   402
        National Guard and Reserve...................................   402
        Office of the Secretary of Defense...........................   403

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2025

                                  ----------

                             TUESDAY, APRIL 9, 2024

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10:00 a.m., in room SD-192, Dirksen
    Senate Office Building, Hon. Jon Tester (chairman) presiding.
        Present: Senators Tester, Baldwin, Shaheen, Collins,
    Murkowski, Moran, Hoeven, Boozman, and Capito.

                             DEPARTMENT OF DEFENSE

                          Department of the Air Force

                            Office of the Secretary

    STATEMENT OF HON. FRANK KENDALL, SECRETARY

                    opening statement of senator jon tester

        Senator Tester. I want to call this committee to order.
        I want to thank our witnesses, Secretary Kendall, General
    Allvin, and General Saltzman, thank you all for being here.
    Thank you for your service, and your dedication to our Nation's
    Air Force and Space Force. I look forward to, as all of us
    will, discussing your fiscal year 2025 budget priorities.
        General Allvin, I believe this is your first hearing before
    this subcommittee. Welcome. We are always interested to hear
    your perspective coming into this hearing. And so, we look
    forward to working with all of you to get the fiscal year 2025
    budget request for the Department of the Air Force, which is
    roughly 258.5, about 5 billion or 2 percent above last year's
    budget, passed.
         I say last year's budget, but as you well know,
    unfortunately, it is only 3 weeks' old. I think that is
    ineptness on Congress' part, not on yours, and we tend to tie
    your hands behind your back when we don't get budgets done on
    time.
        I know that Senator Collins and Senator Murray wanted to
    get a budget done on time. Unfortunately, there is far too many
    people here who believe that government shutdowns are the way
    this place should work. And it is not. And I look forward to
    working with Senator Collins, and everybody else on this
    subcommittee to get you guys a budget on time, that is as
    robust as we possibly can get.
        At last year's Department of the Air Force hearing, I
    stressed the importance of getting that budget done on time. We
    failed. But we don't need to fail this year. We need to get it
    done, and get it done by the end of September, so you guys have
    the certainty that you need not waste taxpayer dollars, and
    make sure that the folks that serve under you have every tool
    necessary to be successful.
        I commend Senator Murray, Senator Collins, for working hard
    to get that 2024 Bill across a finish line, but the fact of the
    matter is our Airmen and Guardians deserve better, and we can
    do better.
        A timely enactment of a Defense Appropriation Bill has
    never been more urgent. China's intentions regarding Taiwan,
    coupled with its advancements in military modernization.
    Russia's War, unjust war in Ukraine, and the escalation in the
    Middle East are just a few examples of global security
    environment that require continued diligence and modernization
    of critical weapon systems to effectively deter violence and
    defend ourselves and our allies.
        Continuing resolutions, government shutdowns without
    accurate appropriations, it hamstrings our national defense,
    our Airmen and Guardians don't receive the training they need
    to get their job done, we can't get rid of outdated equipment,
    we can't modernize, we can't field new systems to scale.
        So notwithstanding political headwinds and budget
    constraints, we are going to continue to work to end this
    trend, disastrous trend, I might add, of CRs (Continuing
    Resolutions) and uncertainty and get us back onto a regular
    budget cycle. The volatile global security environment has
    driven a great sense of urgency to the DOD's (Department of
    Defense) attempt to field innovative technologies and solutions
    at scale as quickly as possible.
        We are always open to working with the Department of
    Defense to ensure that our warfighter has the tools they need
    to be effective, and we encourage the DOD to continue to take
    advantage of the current rapid acquisition and prototyping
    authorities as well as funding flexibilities to get this job
    done.
        However, it cannot be ignored that programs initiated with
    expedited acquisition authorities apparently suffer from the
    same cost schedule, and technical issues as traditional
    acquisition programs do.
        The Air Force in particular, has struggled to mature and
    transition into significant production, several so-called,
    rapid acquisition programs, including the E-7 Wedgetail and the
    Air Hypersonic Weapon, further I am concerned that many
    prototyping programs initiated with much urgency are not fully
    funded in the budget. This does not send the right message.
        So, before we entertain enacting a new budget and
    acquisition authorities, I do want to understand how the Air
    Force is going to improve its performance to ensure that
    capabilities we invest in, actually reach the hands of the
    warfighter without wasting taxpayer dollars.
        There is no question that the Air Force must keep Pace with
    evolving threats by modernizing, fielding new capabilities, and
    procuring systems that outperform our enemy. It is the role of
    Congress to ensure the American taxpayer dollars are used the
    most effective way possible to achieve superiority. And I look
    forward to continuing to work with you folks, and others, to
    make that possible.
        Once again, I want to thank you for your service, I want to
    thank you for your leadership. I want to thank you for what you
    do to keep this country safe.
        And with that, I will turn it over to Senator Collins for
    her remarks.

                     statement of senator susan m. collins

        Senator Collins. Thank you, Chairman Tester, for holding
    this hearing. And a warm welcome to our newest member, who I
    just saw in the hallway, Senator Chris Coons, I know he stopped
    by prior to the hearing to greet our witnesses.
        To our witnesses, thank you for your service. And please
    relay to the Airmen and Guardians that serve with you how much
    we appreciate their service to our country.
        I want to expand just for a moment on the comments that the
    Chairman made about the importance of the Appropriations
    process proceeding on time. Our committee worked very hard last
    year and did in fact report each and every one of the
    Appropriations Bills, including the Defense Appropriations
    Bills prior to the end of July.
        Unfortunately, we then ran into roadblocks in getting the
    bills brought to the Senate floor. I would note that while the
    bill was passed far too late, we did avoid having a continuing
    resolution. That was advocated by some of our colleagues. It
    would have been an absolute disaster for our Department of
    Defense.
        And I thank the Secretary for spelling out in a letter what
    the disastrous consequences of a year-long continuing
    resolution would have been. So, we were far too late as an
    institution, in completing our bills, but at least we avoided
    that outcome.
        I would also note that it does not help the process that
    the President is late by a month in submitting his budget.
    There is a legal requirement for the budget to be submitted, I
    believe it is the first Monday in February, and that deadline
    was not met again this year.
        Let me offer a few other observations as we begin this
    important hearing. First of all none of us can gloss over the
    fact that this budget request would result in a real decrease
    in funding available for the Air Force and Space Force to buy
    aircraft and weapons that is true for the other military
    services as well.
        Just to keep pay B with inflation for critical needs, like
    military pay, healthcare, and housing, the top line would need
    to be higher by at least 4 percent, but the administration
    proposes a top line increase of less than 2 percent for the Air
    Force. To comply with the caps of the Fiscal Responsibility
    Act, the 2025 budget request for the Air Force is 2 billion
    less than was planned when Secretary Kendall and General
    Saltzman testified before the committee just last year.
        Second, our witnesses need to be completely forthright, as
    I know you will be, and always are, in describing to the
    committee the risk the Air Force would be accepting with this
    budget request. For example, Air Force officials have said that
    at any one time 514 aircraft in the fleet are grounded due to a
    lack of spare parts. Funding for additional spares to reduce
    that deficiency significantly was excluded from the budget
    request and, instead, has been included on the Service's
    unfunded requirements list.
        What are the consequences if Congress does not restore this
    $2 billion reduction? What risks are we assuming given that
    China's Air Force continues to grow, and this budget request
    proposes a net reduction of 129 aircraft? That means a much
    smaller Air Force. Each budget request must account for both
    the threats we are facing now and that are projected into the
    future.
        What I know, with certainty, is that the threats facing our
    country and our military are growing. Two combatant commanders
    in the last few months have told me that this is the most
    dangerous global environment in 50 years.
        Third, unless the National Security Supplemental is enacted
    into law, and soon, the Air Force will have to take funding out
    of hide from the fiscal year 2024 Defense Appropriations Bill
    we just enacted to sustain the Airmen and Guardians deployed in
    support of our allies and partners confronting adversaries in
    Europe and in the Middle East. The Bipartisan National Security
    Supplemental passed by the Senate in February included more
    than $1.8 billion for these purposes. Without this supplemental
    funding, there will be even greater harm to our overall
    readiness and modernization.
        Finally, I would note that many of the military aircraft
    transporting aid to Ukraine and Israel are supported by the
    101st Air Refueling Wing in Bangor, Maine, of which I am very
    proud.
        Secretary Kendall, I know they are very eager to host you.
    And I look forward to doing so as well.
        Thank you, Mr. Chairman
        Senator Tester. Thank you, Senator Collins. Appreciate your
    remarks.
        We will now start with the panel Secretary Kendall you are
    up. Your full written testimony will be a part of the record.
    If you can keep it close to 5, we would appreciate it, but take
    your time.

                    summary statement of hon. frank kendall

        Secretary Kendall. Thank you, Mr. Chairman.
        Chairman Tester, Vice Chair Collins, Members of the
    Subcommittee, General Saltzman, General Allvin, and I thank you
    for the opportunity to testify today on the Department of the
    Air Force's fiscal year 2025 budget submission. The DAF
    (Department of the Air Force) fiscal year 2025 budget request
    supports the National Defense Strategy.
        We appreciate the committee's support for the recently
    enacted fiscal year 2024 budget and your efforts to secure
    timely passage. As you are aware, the 6-month delay has had a
    real impact, that time cannot be recovered, but at least we can
    now move forward with our urgent modernization priorities.
        As I have testified before this committee repeatedly, time
    is my greatest concern, we are in a race for military
    technological superiority with a capable pacing challenge, our
    cushion is gone. We are out of time.
        As we have briefed the committee at a classified level, the
    pacing threat moves steadily forward, continued failure to
    provide on time authorities and Appropriations, as you both
    noted, will leave the Air Force and Space Force inadequately
    prepared. We know the committee recognizes this, and we
    appreciate your strong bipartisan support.
        Our fiscal year 2025 budget request complies with the
    Fiscal Responsibility Act (FRA). We are requesting $217.5
    billion for the Department of the Air Force, which includes
    $188 billion for the Air Force, and $29.4 billion for the Space
    Force. The fiscal year 2025 budget reflects an increase of
    about 1.5 percent, as you noted, less than inflation, Vice
    Chairman, over the enacted fiscal year 2024 budget, and does
    not keep pace with inflation, or with the 7 percent publicly
    acknowledged growth of China's military budget.
        To stay within the levels of the FRA, the DAF had to adjust
    our previous plans. The DAF fiscal year 2025 budget request
    seeks to preserve the momentum behind our modernization
    efforts, particularly the work on operational imperatives that
    we initiated, and that this committee supported in fiscal year
    2024.
        In order to preserve modernization, we have marginally
    reduced procurement, and we have sustained our foundational
    accounts at levels we deemed acceptable, but no more. Because
    the Space Force budget is dominated by research and development
    accounts, we have had to marginally reduce the pace and scope
    of our Space Force Modernization programs.
        Our first priority in the National Defense Strategy remains
    defense of the homeland. The DAF primarily supports through
    investments in domain awareness, air and space defense, early
    warning, and cyberspace defense programs.
        Our second NDS (National Defense Strategy) priority is to
    deter strategic attacks against the United States, our allies,
    and our partners. The DAF fiscal year 2025 budget request
    prioritizes nuclear modernization to maintain a safe, secure,
    and effective nuclear deterrent. Notably, The Sentinel ICBM
    (intercontinental ballistic missile) program is experiencing
    unacceptable cost and schedule increases and is currently
    undergoing a Nunn-McCurdy Review. The Department of the Air
    Force will work closely with the committee as that review
    reaches its conclusion.
        The third NDS priority is to deter aggression and be
    prepared to prevail in conflict when necessary. The DAF needs
    immediate and significant capability modernization to keep pace
    with the growing military capabilities of the PRC (People's
    Republic of China). The DAF operational imperatives and the
    closely related cross-cutting operational enablers continue to
    guide modernization. The fiscal year 2025 Defense DAF budget
    request includes $6.1 billion for these efforts.
        Finally, the fourth National Defense Strategy priority is
    to build a resilient Joint Force and enduring advantages. This
    budget request invests to ensure that we can recruit and retain
    the Force we need and so that our Airmen and Guardians, and
    their families have the quality of life they deserve and can
    serve to their full potential.
        As we have briefed the committee, the DAF is also currently
    undertaking a Department-wide effort to reoptimize to meet the
    demands of Great Power competition. The intent is to minimize
    both cost impacts and personnel or unit movements. We will work
    closely with the committee as we develop detailed plans. We do
    not anticipate any significant impact on the fiscal year 2025
    budget, and we have not requested funds for this purpose.
        The DAF also deeply appreciates the committees support for
    the DOD Quick Start Initiative that was enacted last year by
    the authorizers. The DAF has obtained approval from the
    Secretary for two programs that will be initiated under this
    new authority. We are in the process of providing the required
    formal notification to the Congress and will publicly announce
    the two programs shortly.
        Time matters, but so do resources. The United States is
    facing a competitor with national purchasing power that exceeds
    our own, a challenge we have never faced in modern times. China
    is actively developing and expanding capabilities to challenge
    strategic stability, attack our critical space systems, and
    defeat our ability to project power, especially air power.
    Conflict is not inevitable, but it could happen at any time.
        General Allvin and I just returned from a trip to some of
    our key bases in the Indo-Pacific. We should all be very proud
    of our men and women serving in harm's way and doing everything
    they can to deter and be ready for a conflict should that
    occur.
        The DAF fiscal year 2025 budget request is focused on
    addressing these realities and these needs. We commit to
    working with the committee to secure timely enactment of this
    budget request, and we thank you for your support in that
    endeavor.
        Thank you. We look forward to your questions.
        Senator Tester. Thank you, Secretary Kendall. We appreciate
    your statement.
        Now, we will turn to the Space Force. General Saltzman, you
    are up.

    STATEMENT OF GENERAL B. CHANCE SALTZMAN, CHIEF OF SPACE
                OPERATIONS, UNITED STATES AIR FORCE

        General Saltzman. Senator Tester, Ranking Member Collins,
    distinguished members of the committee, thank you for your
    continued support and for the opportunity to testify on the
    Space Force's Posture for fiscal year 2025.
        As the Space Force prepares to celebrate its fifth
    birthday, we are wholly dedicated to the work of forging a
    service purpose-built for Great Power competition. Space has
    never been more critical to the security of our Nation, and the
    success or failure of the Joint Force depends heavily upon the
    capabilities we present.
        It is our responsibility to contest and control the domain,
    to defend U.S. space capabilities, and to protect the Joint
    Force from space-enabled attack. Gaining and maintaining space
    superiority is the purpose for which the Space Force was
    established.
        With about 3 percent of the Department of Defense budget,
    the Space Force offers a tremendous value proposition to the
    Nation. Every dollar invested in Space brings asymmetric
    returns, but that means every dollar cut creates asymmetric
    risk.
        Against a near-peer adversary, space superiority is the
    linchpin. Without it, we cannot deter conflict. Without it, we
    cannot provide vital effects. Without it, we cannot protect the
    Joint Force. Until we have built the infrastructure to achieve
    space superiority, the Space Force is a work in progress.
        The Space Force's theory of success includes three parts:
    avoiding operational surprise, denying the benefits of attack
    in space, and conducting responsible counterspace activities.
    The Space Force budget request is designed to support the
    National Defense Strategy by building, training, and equipping
    the Forces the Nation needs to perform each activity,
    preserving freedom of action in space while deterring and
    denying adversarial objectives.
        Avoiding operational surprise requires us to maintain an
    accurate understanding of the space domain at all times, 8.3
    percent of our budget is dedicated to this aim. Operating
    across disaggregated sensor frameworks, the Space Force
    provides the maximum information possible to decision makers
    from the tactical to the strategic level. And denying the
    benefits of attack in space demands that we make any attack
    against U.S. capabilities impractical and self-defeating, 43.4
    percent of our budget is devoted to this objective.
        Investing in resiliency for missile warning and tracking,
    satellite communications, position, navigation, and timing,
    hybrid architectures and proliferated constellations impose a
    heavy cost on aggression.
        Finally, responsible counterspace activities describe the
    mechanism by which the Space Force can test and control the
    space domain. The fiscal year 2025 budget dedicates 24.7
    percent of the Space Force budget to space superiority. Within
    the constraints of the FRA, the fiscal year 2025 Space Force
    budget reflects hard choices to maintain legacy Space Services
    and preserve current readiness. But it also slows the fielding
    of a modernized force.
        Thank you for the opportunity to discuss the Space Force's
    fiscal year 2025 budget and posture. Even in the face of
    accelerating threats, the Space Force remains the preeminent
    military space organization in the world.
        With the support of this committee, our Guardians will
    preserve and expand our strategic advantage, and we will step
    up to meet our pacing challenge.
        So long as you continue to trust and invest in your Space
    Service, the Space Force will respond with unparalleled value
    for the Nation.
        I look forward to your questions.
        Senator Tester. Thank you, General Saltzman.
        Next, we will hear from Air Force General Allvin.

    STATEMENT OF GENERAL DAVID W. ALLVIN, AIR FORCE CHIEF
                OF STAFF

        General Allvin. Good morning, Chairman Tester, Vice Chair
    Collins, and distinguished Members of this Committee.
        Today, I am proud to represent the 677,000 Total Force
    Airmen serving our Nation. I want to thank you for your
    unyielding support, not only for those Airmen, but for their
    families as well. It is an honor to sit beside Secretary
    Kendall and General Saltzman today and testify on the fiscal
    year 2025 budget submission.
        As we look across the strategic landscape, we find
    ourselves in a time of significant consequence. The
    simultaneous demands of strategic competition with an
    aggressive and increasingly capable PRC, and persistent acute
    threats from around the globe require the Air Force to maximize
    the readiness of today's forces while adapting our structures
    and processes to offer the best opportunity to prevail in an
    environment of enduring Great Power competition.
        Time is not on our side. The fiscal year 2025 Air Force
    budget request reflects difficult choices. We have made
    tradeoffs to keep the Air Force's operational readiness today
    at the minimum acceptable to meet the Nation's demands while
    seeking to preserve the previous year's advances in
    modernization. The Air Force budget request also invests in the
    Air Force's most precious asset, our Airmen, to ensure they
    remain the decisive advantage upon which our Nation depends.
        Strategic deterrence is a key priority in our National
    Defense Strategy, and the U.S. Air Force remains committed to
    the recapitalization of our nuclear force. We are actively
    supporting the process triggered by the Nunn-McCurdy breach of
    the Sentinel Program and will continue to pursue the path of a
    safe, secure, reliable, and effective ground leg of the nuclear
    triad well into the future.
        The B-21 will form the backbone of the Air Force's future
    Bomber Force, capable of executing both conventional and
    nuclear missions, and remains a key investment priority for the
    fiscal year 2025 budget. Our ability to support the National
    Defense Strategy priority of deterring aggression and
    prevailing in conflict demands a modern Air Force that is
    connected to the Joint Force and can close multiple kill chains
    in minimal time to control the tempo of a complex fight with a
    peer competitor.
        To that end, the fiscal year 2025 budget proposes continued
    investments in the F-35 and F-15EX, albeit with fewer than
    preferred quantities dictated by the constraints of the Fiscal
    Responsibility Act. We continue our investment in the Advanced
    Battle Management System that will provide cutting-edge tools
    and an integrated digital architecture to enable C3 battle
    management in contested and degraded environments.
        We remain committed to the Next Generation Air Dominance
    Family of Systems, particularly Collaborative Combat Aircraft,
    which will allow the Air Force to deliver the affordable mass
    required to be effective against a very capable PRC. We are
    also committed to building forward basing resilient enough to
    enable continuous sortie generation even while under attack.
        This imperative became even more apparent to Secretary
    Kendall and I as we traveled through the Indo-Pacific. To
    arrest the decline in our readiness, we have proposed modest
    increases in investment in flying hours and weapon system
    sustainment to support them, while prioritizing investments in
    critical physical and cyber infrastructure.
        Our Airmen are and always will be the deciding factor in
    any conflict our Air Force faces and we are committed to their
    health, development, and quality of life. We have made
    significant progress, thanks to Congress' support, to increase
    basic pay, adjust basic allowance for housing and subsistence
    to account for macroeconomic factors.
        There is still work to be done. During our recent trip, the
    Secretary and I saw dedicated Airmen eager to accomplish the
    mission despite significant challenges such as infrastructure
    degradation caused by natural disaster, and persistent
    environmental challenges, as well as access to healthcare
    enjoyed by most CONUS (continental United States) Bases.
        Efforts in lowering barriers to service and increasing
    targeting tools are driving a trend in the right direction for
    recruiting and retention. To continue to attract and retain the
    very best in critical skills, we are developing tracks for
    officers and enlisted Airmen in the technical area, and we are
    creating new Warrant Officers billets in Cyber and IT.
        The job of your Air Force has not changed since its
    inception: support the defense of this Nation through credible
    deterrence and unmatched combat prowess. To preserve that level
    of deterrence, we must maintain our readiness today, modernize
    our Force for tomorrow, and provide the absolute best support
    to our Airmen. Success on any battlefield is a team effort.
        I want to thank the Members of Congress and this committee
    for their past and continued support.
        Thank you. And I look forward to your questions.
        [Statement follows:]
       Prepared Statement of Frank Kendall, General David W. Allvin and
                           General B. Chance Saltzman
                                    overview
        The President's Fiscal Year 2025 (FY25) budget request continues
    the Department of the Air Force's (DAF) implementation of the 2022
    National Defense Strategy (NDS), while striking alignment with the 2023
    Fiscal Responsibility Act (FRA). The DAF remains focused on the
    Department of Defense's mission to defend the U.S. homeland, safeguard
    and advance vital U.S national security interests, and meet growing
    threats to a stable and open international system, especially those
    posed by our pacing challenge, the People's Republic of China (PRC) and
    the Chinese Communist Party. In line with the priorities of the
    Secretary of Defense, this budget request supports that mission and
    invests in the people and teams that are our decisive advantage.
        The DAF is currently undertaking a Department-wide effort to
    optimize how we organize, train, and equip the Air Force and Space
    Force to meet the PRC pacing challenge. These efforts are necessary for
    us to remain competitive and are being undertaken with a strong sense
    of urgency. They cannot, however, substitute for the resources the DAF
    needs to execute its missions.
        The total DAF budget request for FY25 is $217.5B, an increase of
    1.1% from the FY24 President's Budget request. The USAF budget for FY25
    is $188.1B, a 1.7% increase from the FY24 request. The Space Force
    budget decreases modestly in FY25, from $30.0B to $29.4B. This is due
    in part to fact-of-life reductions in planned satellite availability
    for launch and to some key military space requirements shifting to the
    National Reconnaissance Office. The DAF had to implement some difficult
    tradeoffs, and take risk in certain areas to stay within the funding
    levels provided under the FRA.
        A forced reliance on funding through Continuing Resolutions has
    already significantly hampered the DAF's ability to keep pace with
    evolving threats by withholding authorization and appropriations to
    initiate new programs of record or increase spending on existing
    programs. Unfortunately, the time we have ceded cannot be recovered.
    Timely and consistent authorizations and appropriations for defense
    spending in line with this budget request are necessary to deter and,
    if required, defeat threats to our national security. Continued failure
    to provide on-time authority and appropriations will leave the Air
    Force and Space Force inadequately prepared for the dramatic
    geopolitical, technological, economic, and environmental challenges we
    are facing. To keep pace with the threats in the changing strategic
    landscape, we urge the Congress to enact this budget request without
    delay.
                        responding to increasing threats
        The threats to our national security are dramatically increasing.
    The 2022 NDS identified the PRC as the only country with the will and
    increasing capability to reshape the international order. In 2023, the
    PRC increased its annual military budget by approximately 7 percent
    with estimates showing it can support continued defense spending growth
    for at least the next five to 10 years.
        The People's Liberation Army (PLA) already fields the largest
    aviation force in the Indo-Pacific region. It has combined a growing
    arsenal of long-range precision weapons with improving space- based
    capabilities to expand the capability of its long range kill webs and
    enable strikes against U.S. and Allied forces, air bases, carriers, and
    high-value airborne assets.
        In addition to using space capabilities to target U.S. and partner
    terrestrial forces, the PLA is rapidly increasing its fielded suite of
    kinetic and non-kinetic counterspace capabilities. These include
    antisatellite missiles, ``inspection and repair'' systems that can
    grapple and disable satellites on orbit, laser weapons and jammers, and
    reusable spaceplanes with a range of potential military uses.
        The PRC is also advancing its electronic warfare and cyberspace
    attack capabilities to threaten U.S. bases and capabilities in the
    region and the U.S. homeland. For example, the PRC has targeted
    critical infrastructure in Guam that could be used to disrupt U.S. air
    operations.
        The PRC has also continued its rapid nuclear expansion, on track to
    exceed previous projections, with more than 500 operational nuclear
    warheads and a nascent nuclear triad. China is moving ahead of
    expectations to field a nuclear arsenal comparable to that of the
    United States. The PLA Rocket Force has at least 2,800 theater class
    ballistic missiles and 350 international-range ballistic missiles,
    including hypersonic missiles, highlighting its approach to diverse
    potential nuclear- delivery systems. Many of these systems have dual-
    use (conventional or nuclear) potential.
        We must keep pace with the growing military capabilities of the PRC
    while also managing the acute threat from Russia, deterring threats
    from other regional actors, while remaining vigilant to potential
    Violent Extremist Organization threats. Russia continues to place a
    strong emphasis on modernizing strategic weapons that will allow it to
    hold the United States homeland at risk, particularly with hypersonic
    and other next-generation weapons. Russia is developing and deploying a
    range of counterspace systems including surface-launched, air-launched,
    and orbital anti-satellite weapons, laser weapons, electronic warfare
    systems, and cyber capabilities that can threaten military and dual-use
    space assets. Both Iran and North Korea are also working to expand
    their military capabilities.
        In the midst of these growing threats, the capabilities of the
    Department of the Air Force are integral to the four priorities of the
    NDS: defending the homeland; deterring strategic attacks against the
    United States, our Allies, and our partners; deterring aggression and
    being prepared to prevail in conflict when necessary; and ensuring our
    future military advantage by building a resilient joint force and
    defense ecosystem. With budgetary pressure, the DAF budget request
    balances short-term risks and readiness against the need to rapidly
    modernize capabilities required to deter future threats and meet NDS
    priorities.
                               complying with fra
        The DAF's budget is aligned with the FRA. The global obligations
    and enduring missions of the DAF have not changed. Our global
    commitments have not changed. As a result, our force structure and
    human capital structure remain roughly constant from FY24. The
    requirements to maintain adequate operational readiness, support global
    deployments, and meet immediate mission requirements were met, but
    funded to the highest level of risk considered acceptable. For example,
    the so-called ``foundational accounts'' for Weapons Systems
    Sustainment, Facilities, and Flying Hours were funded at the lowest
    level considered acceptable in both the Air Force and the Space Force.
    This practice can be tolerated in the short term under the constraints
    of FRA.
        With these ``current force'' related elements of the budget
    allocated, investments in the ``future force'' were adjusted to manage
    risk. The DAF budget request protects essential modernization,
    especially the investments derived from our work on Operational
    Imperatives and Cross-cutting Operational Enablers, and chose to
    marginally reduce procurement of systems already in production in order
    to sustain as much as possible the planned pace of research and
    development funding for capabilities necessary to keep pace with
    existing and imminent pacing threats. Procurement accounts were
    adjusted downward in the Air Force from previous levels for some key
    programs, including F-35 and F-15E/X. Procurement accounts also
    decreased with fact-of-life delays in T-7 and E-7 production. The Air
    Force procurement account decreased from $30.6B in the FY24 request to
    $29.0B in FY25 and the Space Force procurement account decreased from
    $4.7B to $4.3B. These adjustments generally allowed research and
    development accounts to keep pace with inflation. They did not permit
    the desired growth over time. This is particularly true for the Space
    Force where transformational modernization is needed urgently.
                  meeting national defense strategy priorities
    Defense of the Homeland
        Our first priority remains defense of the homeland. The DAF
    supports this priority through investments in domain awareness, air and
    space defense, early warning that increases strategic deterrence and
    enables defense of critical infrastructure, and cyberspace defense
    programs. These investments are closely tied with the DAF Arctic
    Strategy and position the DAF to support implementation of the 2023
    Homeland Defense Policy Guidance.
    Deterring Strategic Attacks
        Our second priority is to deter strategic attacks against the
    United States, our Allies, and our partners. The DAF provides two legs
    of the Nuclear Triad and 75 percent of Nuclear Command, Control, and
    Communications (NC3). The DAF's full-scope nuclear modernization
    program recapitalizes all current systems and supporting infrastructure
    to deliver modern and credible deterrence capabilities, which are
    essential in today's increasingly uncertain international environment.
    Decades of deferring modernization of Cold War-era systems, combined
    with adversary nuclear modernization, make it imperative to modernize
    U.S. nuclear forces to maintain a safe, secure, and effective nuclear
    deterrent to protect the U.S. homeland, as well as Allies and partners.
        DAF nuclear capabilities provide unique, complementary, and
    credible options in support of integrated deterrence. Decades of
    deferred modernization have left little room for error in our
    recapitalization program if we are to maintain a safe, secure, and
    effective nuclear deterrent. The FY25 budget requests more than $19.4B
    for nuclear modernization efforts including the Sentinel Ground Based
    Strategic Deterrent, B-21 Raider, Survivable Airborne Operations Center
    (SAOC), Long-Range Standoff Weapon, Next-Generation Overhead Persistent
    Infrared programs, and the Evolved Satellite Communication System.
    Additionally, the Space Force is in the early stages of developing and
    fielding a more resilient missile warning and tracking capability
    focused on tracking advanced threats by integrating new critical
    missile tracking capabilities. While B-21 and LRSO are currently close
    to planned cost and schedule profiles, other programs are experiencing
    difficulties, and these programs have not completed development.
    Sentinel is undergoing a critical Nunn-McCurdy review due to cost and
    schedule increases. The SAOC cost estimate has also increased and is
    putting pressure on the DAF's budget.
                deterring aggression and prevailing in conflict
        The third priority of our NDS is to deter aggression and be
    prepared to prevail in conflict when necessary. The DAF needs immediate
    and significant capability modernization to keep pace with the growing
    military capabilities of the PRC. Each year, the threat continues to
    advance as does our effort to define cost effective competitive
    operational innovation. The DAF deeply appreciates the ``Quick Start''
    provision placed in the FY24 NDAA and will take full advantage of this
    opportunity to save precious time. Our effort to Reoptimize for Great
    Power Competition is intended in large part to create institutions with
    the mission of ensuring continuous competitiveness against our pacing
    challenge. The seven DAF Operational Imperatives and the Cross-cutting
    Operational Enablers body of work continues to guide the DAF's
    modernization effort. The FY25 DAF budget request includes $6.1B for
    these efforts, $4.0B in the Space Force and $2.1B in the Air Force
    excluding B-21 investments available at a higher classification.
             building a resilient joint force and defense ecosystem
        The fourth NDS priority is to build a resilient Joint Force and
    defense ecosystem to ensure our future military advantage. Our Airmen,
    Guardians, and civilian teammates are the decisive advantage in our
    strategic competition, and this budget request invests to ensure they
    can serve to their full potential. Programs that respond to the most
    pressing problems of our Airmen, Guardians, and their families are
    detailed for each DAF Military Service in the sections below.

                            UNITED STATES AIR FORCE

        Strategic competition with the PRC while also managing acute and
    persistent threats requires the Air Force to modernize to maintain its
    preeminent status in the world. The Air Force continues to implement
    the programs identified under the Operational Imperatives and follow
    through on initiatives designed to maintain the Air Force's qualitative
    advantages over any competitor. The Air Force is investing in force
    structure and capabilities aligned with the NDS. As the strategic
    environment is rapidly changing and technology fundamentally alters the
    character of war we are in a time of consequence. The Air Force is
    determined to maintain its position as the leader in speed, agility,
    and lethality upon which the joint team, the Nation, and allies rely.
        The FY25 Air Force budget request is $188.1B. The Air Force budget
    invests in foundational accounts in an attempt to arrest the year-over-
    year degradation of the capabilities, operational readiness, and
    supporting infrastructure necessary to implement the NDS, but doing so
    mandates a slower rate of needed modernization which increases the risk
    to the DAF's overall readiness. The budget fully funds nuclear
    modernization programs to deter strategic attacks, continuing the most
    extensive recapitalization effort of the nuclear enterprise in the Air
    Force's history. (The recently announced Nunn McCurdy cost breach on
    the Sentinel ICBM program is still being
        addressed and final estimates are not available at this time.) It
    also continues investment in modernization focused on critical long-
    range kill webs ($310.6M) and affordable mass ($719.8M) central to the
    ability to deter and, if necessary, defeat aggression. This is in clear
    recognition of the PRC pacing challenge and Russian acute threat. The
    Air Force budget request also invests in the Air Force's most precious
    asset--its Airmen--to ensure they remain the decisive advantage the
    Nation depends upon.
                    air force's role in defending the nation
        For FY25, the Air Force must make difficult choices to balance risk
    today and into the future. Today, the Air Force is accepting risk
    across the Service's modernization accounts in order to maintain
    minimally acceptable near-term operational readiness. This places
    additional risk on the Air Force's ability to deter and defeat any
    adversary going forward.
        The FY25 Air Force budget request prioritizes operational readiness
    in the current year and seeks to preserve previous years' substantial
    advances in modernization and procurement. The Air Force's operational
    readiness is near the minimum level acceptable for the Service to meet
    the Nation's demands.
        While this budget attempts to sustain the modernization momentum
    created by the Operational Imperatives and Cross-cutting Operational
    Enablers, it takes risk in the medium term to balance immediate
    operational readiness needs at the level of maximum tolerable risk. The
    medium-term risk most noticeably impacts the Air Force's ability to
    field the Next Generation Air Dominance (NGAD) Family of Systems, as
    well as a mature Command, Control, Communications, and Battle
    Management (C3BM) system, the Air Force contribution to JADC2.
        The Air Force is requesting $2.1B to meet the immediate Operational
    Imperatives required to maintain the Air Force's qualitative advantage
    and ability to deter and, if necessary, win whenever called upon by the
    Nation. The Operational Imperatives provide the Service with critical
    capabilities, readiness investments, and the foundation required to
    transition and sustain a wartime posture against our pacing threat.
    Notably, the USAF FY25 budget request continues progress toward
    fielding an operationally optimized Advanced Battle Management System
    (ABMS) ($174M) that will improve situational awareness and provide
    decision-support tools to close hundreds of kill chains within relevant
    timelines while operating in a highly contested environment. The FY25
    Air Force budget supports achieving moving target engagement at scale
    ($177M), which will be decisive in a conflict with a well-resourced
    peer- or near-peer adversary. Fielding the NGAD Family of Systems
    ($675M), particularly Collaborative Combat Aircraft, will allow the Air
    Force to augment current and future platforms with lower-cost
    complementary systems that can cost-effectively achieve control of the
    air in highly contested environments. The B-21 and its Family of
    Systems (details available at a higher classification) will be the
    backbone of the Air Force's bomber force and provide critical
    operational capability for both conventional and nuclear missions and
    provide precision effects en masse against targets worldwide. The Air
    Force is committed to building resilient forward basing ($594M) that
    ensures sustainable and networked bases capable of sufficient sortie
    generation and mission execution in a contested environment. The
    Service is also investing toward securing the critical readiness
    required to mobilize and move the Air Force and Joint Force into
    theater ($232.9M), including hardening mobilization and support
    capabilities against cyber and non-cyber threats. These investments
    represent significant efforts in critical systems and assets required
    by the increasingly challenging threat environment.
        Among the Air Force's highest priorities is achieving
    electromagnetic spectrum dominance and an information advantage in
    highly contested environments. The Air Force's budget includes a $50M
    budget request in FY25 for investment in EA-37B Baseline 4 capability
    enhancements and advanced waveform development. Furthermore, the Air
    Force is investing in mission resilience and adaptability efforts such
    as the 350th Spectrum Warfare Wing's rapid reprogramming to ensure
    effective electronic attack, support, and defensive capabilities;
    synchronization efforts such as Air Combat Command's Electromagnetic
    Battle Management (EMBM). The Air Force's investments in
    electromagnetic spectrum dominance are vital to ensuring that the
    Nation's warfighters, Joint mission partners, and Allies build,
    achieve, and maintain mission effectiveness, survivability, and,
    ultimately, warfighting advantage over the Nation's adversaries. These
    efforts aid in maintaining the Air Force's credibility in both
    assurance and deterrence roles.
        As the Air Force adapts to the changing strategic environment, we
    are reoptimizing every aspect of the Service around meeting the PRC
    pacing challenge. The Air Force is focusing organizations responsible
    for strategic readiness on current operational readiness, creating and/
    or elevating organizations that are critical to this strategic
    environment such as cyber and the nuclear enterprise, and creating a
    single command to focus on future capabilities. These reoptimization
    decisions make changes that are within the current authorities and, to
    the extent possible, the resources of the Department of the Air Force.
    As we strive to keep pace in a strategic environment where the
    competition has sustained and consistent growth in funding, these
    efforts alone will not be enough.
                   air force's role in taking care of people
        The Air Force is committed to attracting and retaining the best
    Airmen in the world. In FY24, the Active Duty Air Force is currently on
    track to meet its recruiting goals. Air National Guard and Reserve
    recruiting are trending upward but continue to remain a challenge for
    the Service. The Air Force has continued to break down barriers to
    service and made progress thanks to Congress's significant support to
    provide requested pay increases and increasing economic security for
    Airmen through cost-of-living adjustments to basic pay, BAH, and BAS.
    Additionally, the Air Force is opening its bases to local communities
    to showcase the service to the public and connect with the Nation's
    possible recruits. The then VCSAF's cross functional team on Barriers
    to Service implemented 18 policy changes since Jan 2023 to expand
    future recruiting opportunities and increase eligibility to serve.
    These changes include accelerated naturalization at BMT, aligning the
    body composition to the DoD standard, and expanding the tattoo policy.
    These changes have provided tangible improvements without sacrificing
    quality. The CFT will continue to review and adjust DAF policies and
    initiatives to best address future recruiting challenges and amplify
    efforts to increase propensity to serve for all.
        To maintain talent, the Air Force has focused on quality-of-life
    impacts for its Airmen, investing to ensure they have the resources
    required to thrive. The Air Force has concentrated on improving access
    to childcare; this budget request includes a $40.0M MILCON submission
    for a CDC at Mountain Home AFB, on top of 11 CDC MILCON projects that
    the Air Force is executing in FY25, and $50M in Facilities,
    Sustainment, Restoration, and Modernization focused investment in CDCs.
    The Service is also on track to implement the Independent Review
    Commission on Sexual Assault in the Military's recommendations and
    programs as approved by the Secretary of Defense, expanding victim care
    and support for victims of sexual assault. Specifically, the Air Force
    is increasing the presence of embedded mental health personnel in line
    units to prepare for contingency operations. Demand for these mental
    health services has increased twofold over the last decade while mental
    health manning has remained relatively unchanged. To offset the lack of
    providers, the Department of the Air Force is training service members
    at every level on basic mental health skills. The Air Force has also
    invested in Interpersonal and Self-Directed Violence Prevention and
    Response with $451M in the FY25 budget request to implement initiatives
    supporting and protecting Airmen.
        Quality of life also demands the best living and working facilities
    possible. Due to fiscal constraints resulting from the FRA, the Air
    Force was unable to reduce the $46.8B of deferred maintenance and
    repair backlog, nor achieve the 2.3% plant replacement value (PRV)
    reinvestment goal envisioned in the Infrastructure Investment Plan. The
    FY24 budget request set this goal at 1.58% and the FY25 budget request
    reduces it to 1.5%. Additionally, the existing CR has directly impacted
    the Air Force's ability to release funds and award dormitory contracts
    in the current fiscal year. The inability to release funds increases
    risk to meet the Air Force's dormitory investment goal of $1.1B by
    2026, and the inability to fund and award dormitory projects in FY24
    will roll into FY25. However, with this budget request, the Air Force
    will meet the FY22 NDAA requirement to invest at least 5% of the
    estimated replacement cost of the total inventory of permanent party
    dormitories for facility improvements. The Air Force is deliberately
    investing to sustain adequate dormitories. The FY25 budget request
    includes a planned investment of $250M for future prioritization of
    dormitory repair, but that does not include FY24 rollover due to
    funding delays. The Air Force is also engaging with local leaders to
    increase the availability of affordable housing options for families.
    These moves, along with the substantial increase in BAH for many
    localities, have increased housing opportunities and living facilities
    for Airmen.
        To be the best, we must manage our Airmen's talent. The Air Force
    is defining new Total Force skills required to meet the demands of Air
    Force Force Generation (AFFORGEN), Agile Combat Employment, and Future
    Force Design. As part of reoptimization, the technical tracks for
    Officers and Enlisted Airmen as well as the introduction of Warrant
    Officers for Cyber and IT, seek to attract and retain the critical
    talent needed in fast-paced and rapidly evolving critical technology
    sectors that are shaping the modern battlefield. We are also improving
    talent management by investing in processes and systems that increase
    agility, flexibility, and data access. The Air Force is exploring ways
    to identify the most innovative Airmen, network them, and ensure they
    can field innovative solutions to meet the Air Force's most significant
    challenges.
                 air force's role n succeeding through teamwork
        Teamwork is critical in the total Air Force, including the Reserves
    and the Air National Guard, all as part of the Joint Force meeting the
    NDS objectives. That teamwork begins within the DAF, where the Air
    Force relies on and supports the Space Force. Both Services depend on
    each other in developing and fielding the Operational Imperatives and
    achieving the Department's reoptimization efforts. Cooperation of both
    the Space Force and Air Force is required to meet the challenges posed
    by the nation's adversaries. The ability to conduct precision strikes,
    engage moving-targets, close kill chains, and build situational
    awareness in a highly contested environment requires the seamless
    integration of both Services. The Air Force and Space Force are
    inexorably intertwined, ensuring that both services, the Joint Force,
    and our allies and partners will prevail wherever called upon.
        Meeting our pacing challenge also demands that the Air Force
    seamlessly integrate with the larger Joint Force, the combatant
    commands, and our allies and partners. This is the essence of
    Integrated Deterrence. As part of the reoptimization efforts, the Air
    Force is executing large-scale exercises to test its capabilities
    against peer threats in highly contested environments and re-designing
    force presentation models to ensure combatant commanders most stressing
    operational needs are met. The FY25 budget includes $428M in investment
    to support the integrated priority lists of the combatant commanders.
    The Operational Imperatives and capability investments across the
    Service are critical to ensuring the Joint Force can succeed against
    the pacing challenge.
        While the Air Force focuses on supporting the Joint Force in
    meeting the NDS priorities, the Service also realizes that Allies and
    partners are a center of gravity for United States national security.
    Allies and partners facilitate access, basing, and overflight. The Air
    Force is committed to working with our Allies and partners, especially
    in the Indo-Pacific, Europe, and the Middle East, to advance an
    international order grounded in rules and norms. The Air Force
    continues to streamline FMS programs and work with allies to develop
    interoperable capabilities beginning from the initial design of
    systems.
        Teamwork is also required with the Defense Industrial Base to
    ensure a robust industry that is the world leader in technology and
    production capacity that can adapt at speed and scale. As we promote
    the strength of the Defense Industrial Base, the Service is working
    with industry partners on delivering relevant capabilities with
    increased speed and capacity and ensuring mission- dependent supply
    chain and logistics resilience.
        Teamwork inside the Department of the Air Force; the Joint Force;
    the Defense Industrial Base; and Allies and partners will be the
    cornerstone of integrated deterrence and combat capability in strategic
    competition with the PRC. The interdependence of these forces demands
    constant attention to drive seamless integration and interoperability.
    Unity in action and capabilities developed between the Air Force, Joint
    Force, and Allies and partners will provide our Nation and our Allies
    an advantage that no potential adversary can match.
        Perhaps as much as any time in history, teamwork is required across
    the whole of our government to tackle the increasingly complex and
    dangerous challenges that face our Nation. The Air Force will continue
    to work transparently and collaboratively through the Department of the
    Air Force, Department of Defense, Executive Branch, and Congress to
    field and maintain the most ready and dominant Air Force for the
    Nation.

                           UNITED STATES SPACE FORCE

        Since its establishment in 2019, the United States Space Force has
    focused on one, overarching imperative: to secure the Nation's
    interests in, from, and to space. As the threats in space to American
    prosperity and security both increase and become more sophisticated,
    the Space Force must transform and therefore, it is prioritizing
    investments that prepare the Joint Force and the Nation to confront the
    dangerous operating environment that space already has become. This
    transformation is severely complicated by the constrained fiscal
    environment, which has forced the DAF and the Space Force to make hard
    choices.
                   space force's role in defending the nation
        The world's use of space is growing at an accelerating rate, making
    space simultaneously more important and more dangerous. The domain is
    no longer the benign expanse of the past. Counterspace threats continue
    to destabilize the environment, and space-enabled attack increasingly
    holds the Joint Force and our homeland at risk. The PRC, and to a
    significant extent Russia, have operationalized space. The United
    States has not kept pace. With space undeniably defined as a
    warfighting domain, the Nation depends upon the Space Force to secure
    its interests in, from, and to space.
        To meet this challenge, the Space Force has organized its
    modernization efforts around a theory of success that aims to protect
    the Nation and its interests, while also preserving stability and long-
    term usability of the domain. This approach adheres to three guiding
    principles: (1) avoid operational surprise in the space domain, (2)
    deter attacks against U.S. interests in space and (3) prevent an
    adversary from using space to attack our homeland or the Joint Force.
    The destruction of forces in space risks creating long-lasting hazards
    and indiscriminate risks. For this reason, the Space Force's concept of
    space superiority seeks to protect U.S. interests without jeopardizing
    the future of the space domain.
        Avoiding operational surprise in space requires the Space Force to
    maintain constant awareness of the battlespace, supplemented by a
    robust capability to accurately produce indications and warnings for
    malign behavior. Over 8% of the Space Force's FY25 budget is dedicated
    to this purpose. Specifically, the Space Force budget invests $1.25B
    into the space domain awareness mission area, including funding for the
    Deep Space Advanced Radar Capability, SILENTBARKER, and Space Data
    Fusion. These programs extend the Space Force's umbrella of awareness
    in the space domain, by establishing a clear picture of the operating
    environment and denying adversaries the ability to strike U.S. assets
    without warning.
        To deny the benefits of a preemptive counter-space strike, the
    Space Force must build resilient space capabilities that guarantee
    continuity of critical services to the Joint Force despite current and
    growing adversary counterspace forces. These critical services include
    missile warning; communications; targeting; and Position, Navigation
    and Timing. The Space Force must transform these services to make them
    resilient to attack. As airborne systems providing communications and
    targeting have become more vulnerable and as threat long-range
    precision strike systems have proliferated, the Joint Force dependency
    on space is significantly increasing. To that end, the Space Force
    budget invests $2.58B, or 55% of the total space-based missile warning
    budget, to field a proliferated multi-orbit missile warning network.
    Operating across different orbital regimes and sensor types, this
    hybrid approach complicates an adversary's attack options against U.S.
    space assets, enhances resiliency of a no-fail warning mission, and
    assures critical decisionmaking data will be available at the tactical,
    operational, and strategic levels. The Space Force is procuring two
    additional GPS-IIIF vehicles. Presently, there are 31 satellites in
    orbit with four in storage and two slated for launch in FY25.
    Simultaneously, the Space Force is researching more resilient PNT
    options. The FY25 budget also devotes $4.4B to developing satellite
    communications (SATCOM) systems capable of operating through contested
    and degraded environments. The Space Force is working to ensure that
    all of its capabilities can deter, overcome, and operate through enemy
    action.
        $7.25B--nearly a quarter of the Space Force's FY25 funding--invests
    in the ability to counter an adversary from using space to attack the
    U.S. homeland or the Joint Force. This set of investments, which cannot
    be discussed in detail in an unclassified setting, is a major
    transformational effort for the USSF because it enables the newest
    Space Force mission, space superiority. The need to gain and maintain
    space superiority over peer adversaries is the distinguishing
    characteristic of a transformed Space Force and it is a top priority.
    Unfortunately, the compounding effects of Continuing Resolutions and
    the FY25 top-line funding constraints under the FRA have had
    significant impact on the Space Force's ability to meet the demands of
    this critical mission.
        Finally, to reoptimize for the pacing challenge, sustain our long-
    term competitive advantage, and ensure the relevance of our technical
    investments, the Space Force is establishing a Space Futures Command.
    Overseeing the forward-looking force design process by which we
    determine our objective force, Space Futures Command will provide vital
    structures and processes for our force development activities. Working
    closely with the Air Force Research Laboratory this Command will
    routinely assess the relevancy of and make recommendations on the
    priority of areas of scientific research. This will provide a clear and
    consistent demand signal to all partners, unambiguously identifying the
    technologies we consider to be essential to our success.
        The Space Force is in the early stages of a major transformation,
    from a force focused only on peacetime capabilities to a force that
    also includes the full range of warfighting capabilities. The Space
    Force we have today, no matter how ready it is, does not have the range
    of capabilities needed against the pacing challenge. Preserving current
    force capabilities is necessary but not sufficient. We must invest to
    transform our legacy space capabilities into a credible warfighting
    force to deter and, if needed, to defeat our adversaries; and we must
    do so with a sense of urgency. This requires on-time and stable
    funding. Continuing Resolutions force the Space Force to rearchitect
    programs, miss launch windows, and break delivery timelines, spreading
    mission delays across the FYDP. For example, hypothetical year-long CRs
    can force the Space Force to slow its launch procurements,
    precipitating impacts for years to come by reducing the capability it
    can get on orbit, creating industrial base challenges, delaying test
    and training activities, and generating more barriers to its
    transformation.
                  space force's role in taking care of people
        The Space Force's small but technologically sophisticated workforce
    means the Space Force must deliberately manage talent on an individual
    basis. In 2023, Congress passed the Space Force Personnel Management
    Act. This landmark legislation will enable the Space Force to build a
    modern personnel management system that will better allow the Space
    Force to develop and retain the elite military cadre it needs to be
    competitive and successful. The permeability between full-time and
    part-time military service the single component creates will allow
    Guardians of the relatively small Space Force to flexibly manage their
    careers and better meet their personal and professional goals while
    meeting Space Force operational needs.
        The Space Force is also piloting the Defense Civilian Training
    Corps in FY25. This program, which will act as a civil service
    counterpart to the Reserve Officer Training Corps program, will recruit
    civilian Guardians with desirable backgrounds following the completion
    of their undergraduate education. Additionally, FY25 resourcing will
    allow the Space Force to expand developmental opportunities for all
    Guardians. Here, the first step will be a redesigned Officer Training
    Course. Under this program, all newly accessed officers will attend the
    same initial skills training course to learn the fundamentals of cyber
    operations, intelligence, and space operations. This combined initial
    skills training will ensure all officers have a comprehensive
    operational background prior to pursuing more specialized duties like
    acquisition. The Space Force is truly committed to being operationally
    focused.
        The demands placed on Guardians continue to grow as space becomes a
    more dangerous operating environment. To prepare for this challenge,
    Guardians must be able to develop, train, and exercise their
    operational tradecraft in a secure environment against high-fidelity
    simulated threats. To meet these requirements, the Space Force is
    building the necessary test and training infrastructure from scratch.
    In FY25, the Space Force budget invests $438.7M into the Operational
    Test and Training Infrastructure (OTTI) program. The Space Force is
    also expanding its investments in the test enterprise to account for
    the electromagnetic and orbital warfare mission areas. Recently, the
    DAF organized all of these activities under a single Program Executive
    Officer, ensuring resourcing transparency, accountability, and
    interoperability across the test and training enterprise.
        One personnel challenge the Space Force faces as a small service is
    creating the organizational capacity to perform current operations
    while simultaneously building operational readiness for a high-
    intensity conflict. To better balance these two, the Space Force is
    formalizing how it builds operational readiness in combat force
    elements. The Space Force is accomplishing this by implementing the
    Space Force Generation model for readiness, which is made possible by a
    requested additional $344.2M invested across several accounts. This
    investment enables a rotational model for Employed-in-Place missions,
    allowing personnel to accomplish threat-focused combat training before
    they are presented to the combatant commanders for day-to-day
    operations.
               space force's role in succeeding through teamwork
        The Space Force is not just an important teammate, but an essential
    one to the Joint and Combined Force. Broader operational success across
    all domains and theaters will depend on the Space Force succeeding in
    its missions. First, the Space Force provides services that the Joint
    and Combined team must have, or they will fail. Achieving that requires
    not just fielding effective capabilities joint warfighters need, but
    also securing those capabilities from adversarial attack. Second, the
    Space Force protects the Joint and Combined team from space-enabled
    attack. The Space Force cannot succeed in either regard without robust
    relationships across the U.S. enterprise and with indispensable Allies
    and partners.
        To that end, partnerships with the other Services and throughout
    the Joint Force is a top Space Force priority. In FY24, the Space Force
    established several service components to integrate Space Force
    capabilities and expertise into the Combatant Commands. For example,
    the Space Force established U.S. Space Forces Europe and Africa, giving
    both USEUCOM and USAFRICOM a dedicated team of experts in space
    planning and operations. The FY25 budget invests an additional $27.8M
    to build service components in support of every Combatant Command. Once
    fully implemented, this program will give every Combatant Command
    access to Guardians who can help integrate space capabilities into
    their joint operations.
        Nationally, there are many agencies and organizations with equities
    in the space domain. This is why the Space Force is partnering with a
    variety of government agencies to unify effort and leverage common
    interests for mutual benefit in space. For example, space-based
    surveillance, reconnaissance, and targeting is a critically important
    emerging mission area for the Space Force. Therefore, the Space Force
    is working with the intelligence community, as well as industry
    partners, so that the Space Force can accomplish this important mission
    as part of the Joint Force.
        As a highly technical service, the Space Force depends on a strong
    industrial base. An eighth of the Space Force FY25 budget is dedicated
    to commercial space services which will help reinforce and energize the
    space industrial base our nation depends upon. Moreover, the Space
    Force is continuing to develop its commercial space strategy within the
    larger DAF and Department of Defense industrial policy framework to
    identify areas for deeper partnerships with the diverse commercial
    space market.
        The Space Force can no longer afford to delay its necessary
    transformation. Space capabilities are foundational to how the Joint
    Force projects power across the world and are increasingly at risk--
    they are old, vulnerable, and already not fully meeting joint
    warfighter needs. Lessening these risks requires transformational
    change--transcending the status quo and making smart investments in not
    just new systems, but also people--America's Guardians.
                                   conclusion
        The Department of the Air Force is in a race for technological
    superiority against a well-resourced strategic competitor. The United
    States is now facing a competitor with national purchasing power that
    exceeds our own, a challenge we have never faced in modern times The
    PLA is actively developing and expanding capabilities to challenge
    strategic stability, attack our critical space systems, and defeat our
    ability to project power, especially air power. Conflict in the Indo-
    Pacific region is not inevitable. The United States is actively working
    to prevent conflict by strengthening combat-credible deterrence.
    However, acute and persistent threats still exist, and the security and
    prosperity undergirded by the United States military for decades is
    increasingly challenged. The DAF FY25 budget request is focused on
    addressing this reality. The DAF has funded current readiness accounts
    at the lowest acceptable level while investing remaining resources in
    essential modernization. Some Air Force procurement has been deferred
    to free up funding for new capabilities in development. The Space Force
    lacks similar trade-off options, forcing delays in needed systems,
    especially counterspace systems. The DAF FY25 budget request is aligned
    with the NDS. It addresses mission requirements while taking care of
    people and fulfilling our role in the Joint, interagency, and combined
    team. We urge timely approval of this budget request to allow us to
    keep pace with the challenges facing the United States.

        Senator Tester. General Allvin, thank you very much for
    your statement. I want to thank you all for your statements.
        I want to express a couple things before I get to my
    questions. Number one, this budget puts a lot of pressure on
    you three gentlemen, and the other branches of our military to
    make sure that our priorities are correct.
        That being said, we are living under a 1 percent increase
    budget cap that was negotiated in a bipartisan way by
    leadership. I don't think Senator Collins and I are going to be
    in conflict with this statement at all. I think this is totally
    inadequate. I think we have got to figure out a way to make
    sure, at this dangerous time, which I believe is the most
    dangerous time in the world since the early 1960s, that we give
    you the money you need and then hold you accountable to make
    sure you spend it correctly.
        But I am here to tell you that from this Senator's
    perspective, the amount that is in this budget, and I don't
    care if we are talking about Air Force, Army, Navy, Marines, it
    doesn't matter, is inadequate. And I think it is inadequate
    because there was the decision made to put a 1 percent cap down
    months ago. That was a bad decision.
        That being said, we will work with you and we will work in
    a bipartisan way to try to make sure that you have what you
    need for that deterrence and those priorities that you have
    already spoken of.
        I want to start by talking about recruiting, end strength
    for the Air Force in this budget it holds it steady at 320,000.
    It has always been a challenge. It is a challenge right now to
    meet that number.
        The question I have is how confident are you, Secretary
    Kendall, that you will be able to meet that number? And do you
    have enough people to--if you don't meet that number, do you
    have enough people to actually implement the modernization
    efforts?
        Secretary Kendall. All right. Recruiting was the question?
        Senator Tester. Yes.
        Secretary Kendall. We are actually doing very well this
    year. The active Force is on track at this point to essentially
    meet its goals. In fact, we are looking at revising the goals
    up slightly. The Reserves are doing well also. The Guard has
    improved their performance over last year, but it is not quite
    meeting their target.
        So we took a number of steps. General Allvin led a group, a
    taskforce when he was a vice chief-of-staff, that changed some
    of our policies to expand the envelope of the people that we
    would bring in. We did not lower our standards, but we made
    some adjustments. That helped a lot. We increased our efforts
    in recruiting in general. We provided better information
    technology so our recruiters could be out recruiting instead of
    at their computers, and we increased the size of the force.
        We also asked, throughout the Force, people to go interact
    more. The biggest problem we have with recruiting is the
    propensity to serve in the U.S. has declined, and a lot of that
    is lack of familiarity with the military. So we have taken a
    number of steps to try to reach out and communicate what the
    opportunities are in the military.
        So, I am very comfortable with the trajectory as it exists
    now. I think we are in good shape, as I said, for the active
    and the reserves, and I think we are making good progress on
    the Guard. The Space Force has not had issues recruiting.
        General Allvin may want to add a little bit to that.
        General Allvin. No. I think the Secretary has it exactly
    right. We are never satisfied because we know it can turn on a
    dime. And so, in addition to all those that the Secretary has
    mentioned, we're really reinforcing sort of the value
    proposition, the sense of purpose, and this idea that we are in
    a time of consequence, and just reinforcing that there is
    broader purpose in serving in the military. And that
    familiarity with what we do, I think, is reaching out to more
    people, and we are starting to resonate as well.
        Senator Tester. The Sentinel Project is a project that is
    near and dear to both Senator Hoeven and me. There is about
    $3.7 billion allocated to Sentinel, and this is to replace the
    Minuteman III intercontinental ballistic missile. There have
    been cost increases, and schedule delays, and quite frankly, I
    believe the Air Force is going to make a decision on the path
    forward in June, but quite frankly, we are running against--in
    my perspective--we are running against some real-time issues if
    we are going to get these replaced in the three ICBM bases by
    2036.
        I know that you are recused from this, Secretary Kendall,
    so I will go with General Allvin with the question: How
    committed is the Air Force to replacing Minuteman III? Do you
    believe that you have--do you believe the Air Force has the
    folks in position to manage this program? And do you think we
    will be able to get it done on time; that time being 2036?
        General Allvin. Well, Senator, as you know, we have to
    recapitalize, we have to ensure that we have a robust and
    effective triad, and of course, the ICBM leg of that triad is
    the most responsive and that has a great deterrence effect. So,
    we will remain committed to the recapitalization. And as we
    look at the Nunn-McCurdy process playing out, we are supporting
    that, and we are continuing our engineering and manufacturing
    development as that occurs.
        But regardless of what the decision is in July, we remain
    committed to ensuring that recapitalization, in whatever form
    that takes, the Office of Secretary of Defense has the overall
    decision authority, we are supporting that with facts and data,
    but we are certainly committed to ensure that regardless of
    what the outcome of that committee, we will ensure we have a
    safe and reliable and effective triad in the future.
        Senator Tester. Well, I think it is critically important. I
    just think it is critically important, and I think that if we
    don't get a good solid timeline about when things are going to
    happen, and I anticipate that is going to happen in June, then
    we can anticipate that we will never hit that 2036 mark.
        General Allvin. And I will add to that, if I could Senator,
    that we have internally, we have ensured that we are having
    leadership part of the reevaluation that we have done within
    the Air Force is we have elevated--elevating to a two-star
    General the Program Executive Office for ICBMS, and ensuring
    that we can continue to provide the focus and the overall
    guidance that is needed to support whatever decision that comes
    out of the Nunn-McCurdy.
        Senator Tester. I have some additional questions but there
    will be a second round, at least for me.
        Senator Collins.
        Senator Collins. Thank you, Mr. Chairman.
        General Allvin, I want to read to you a quote from the
    Executive Vice President of the Air Force Association, he said
    the following, ``Under this budget the Air Force, already the
    oldest and smallest in its history, would see its total
    aircraft inventory fall below 5,000 for the first time ever,
    and indeed when I looked at the chart on aircraft inventory the
    projection is 4,903 aircraft. China, on the other hand, is
    increasing the size of its fleet of aircraft.''
        Are we at the point where we are risking an Air Force that
    is too small to accomplish the missions that it is assigned?
        General Allvin. Senator, I believe that the most important
    thing that we should be focused on is having the right
    capability. Of course, we are all restricted by the budgets
    within which we work; however, our focus is to ensure that just
    having a quantity, we have the right quality to be able to
    ensure the survivability and the ability to compete in highly
    contested environment.
        So we are focused on getting the maximum capacity that we
    can of the most capable platforms and systems, because it has
    gone beyond just counting aircraft, it is the entire kill
    chain, the ability to have the battle management, to they have
    the situational awareness which is, increasingly, we are going
    to rely on my brother from Space here to ensure that we do. So
    it is really not just platforms, it is a capable system of
    systems that will ensure that we can endure.
        Senator Collins. As I listened to you, I remember an
    Admiral saying to me in my very first year in the Senate, that
    quantity has a quality all of its own. I mean there becomes a
    point, when I look at the 5-year plan of the Air Force, when
    you are seeking to divest more than a thousand aircraft while
    procuring fewer than one aircraft for every two jets that are
    being retired, and when I look at the situation in Ukraine it
    seems clear to me that not only is quality obviously extremely
    important in capability, but quantity matters also,
    particularly when we are facing as many threats in such diverse
    places, as we are.
        General Allvin. Senator, I would agree with you. And I
    would say that quantity does matter, but we want every one of
    that quantity to be survivable, because if we have a large
    quantity but they have a reduced chance of survival then we are
    actually putting more Airmen in harm's way and at higher risk
    if we can't have them survive and be able to actually prevail.
        And so, we do look at that capability and capacity, but we
    certainly don't want--because our Airmen will go fight, we want
    to deter, but when asked we will fight in whatever cockpits we
    have, and so we want to ensure that when we are providing that
    mass, that mass is actually survivable, and can endure.
        Senator Collins. I just want to make sure you have enough
    of those cockpits.
        For each of our witnesses, but starting with the Secretary,
    please describe to the committee the area, or capability, where
    you feel you are incurring the most risk given the top line
    constraints?
        Secretary Kendall. As I mentioned in my opening statement,
    my greatest concern is time, and the pace of modernization.
    China is, and I have been watching China closely for--since
    2010, they have modernized in a way which is intended to take
    advantage of what they see as our vulnerabilities, and so they
    are attacking things like our airfields, our carriers, our
    satellites, that we rely upon in relatively small numbers.
        They are also modernizing in the air domain and in the
    counterspace domain very effectively in general. And they are
    fielding quantities. We do have to respond to the quantities as
    you mentioned. Unfortunately, holding on to increasingly aging
    and expensive to maintain, and less cost-effective assets
    really doesn't help us with that equation.
        So when I look at the risk equation I think we are at a
    situation where, in the near term, the immediate term, we are
    at an acceptable level of risk, and we have to emphasize
    getting to the next round of the Next Generation, if you will,
    of capabilities.
        As General Saltzman mentioned, we have got to have a
    transformative set of space capabilities. We need to get to
    that. And in the air domain we need to get to the next
    generation, particularly the Uncrewed Collaborative Combat
    Aircraft that General Allvin mentioned.
        We have a cost problem with the aircraft that we are buying
    now. Our fighters are very expensive. The F-35 and the F-15EX
    cost about $100 million each, NGAD (Next Generation Air
    Dominance) and will cost over $300 million, and will be bought
    in small numbers. The uncrewed Collaborative Combat Aircraft
    give us an opportunity to address the cost and the quantity
    issues with relatively inexpensive but very highly cost-
    effective platforms that we add to the fleet.
        So getting on with the Next Generation capabilities is by
    far my highest priority right now. The risk is increasing over
    time. And if we focus on the risk today at the expense of the
    higher levels of risk we are going to see, as China continues
    to modernize, we are going to have to be in a very untractable
    position within just a few years.
        Senator Collins. Thank you. I will ask the other two to
    respond for the record. Thank you, Mr. Chairman.
        Senator Tester. Senator Shaheen.
        Senator Shaheen. Thank you, Mr. Chairman. Thank you,
    Secretary Kendall, and Generals Allvin and Saltzman for your
    service to the country.
        Secretary Kendall, I want to especially thank you for
    coming to the Pease Air National Guard Base last year. We
    really appreciated your announcing the Department's policy
    increasing transparency for those communities like Portsmouth
    that have been affected by PFAS (Per- and Polyfluoroalkyl
    Substances) contamination.
        I wonder if you can share an update on the implementation
    of the new policy, because I am still hearing concerns from
    residents in Portsmouth who feel like they are not seeing the
    kind of transparency they had hoped for as the result of the
    new policy.
        Secretary Kendall. Senator Shaheen, thank you, it was a
    pleasure to meet with you, and visit with you at Pease. And as
    the Vice Chairman mentioned earlier, I am going to be going to
    Bangor very shortly, so I will make sure I have got this
    balanced here.
        Senator Shaheen. You can stop on the way to Bangor, you
    know, we are right on the----
        Secretary Kendall. Will definitely do that. That program is
    moving forward, and I think it is--we are committed to doing
    the right thing in regard to addressing PFAS. We are reacting
    to the change in standard, and I think at this phase we are
    doing the planning for the next round. I think there has to be
    a reassessment given that the standard is tighter than
    originally expected. So let me let me take that for the record,
    and get back to you with a more detailed answer, but we share
    your concern about that problem.
        Senator Shaheen. Well, thank you. My constituents will
    especially appreciate that. Also, the Air Force submitted a
    proposal to the Armed Services Committee to move assets out of
    the Air Guard into the Active-Duty Space Force, and while I
    understand how important that is to the Space Force we are
    hearing some concerns from the Guard about what this means and
    whether it is a precedent for moving other missions out of the
    Guard.
        So, can you speak to that? And maybe General Saltzman as
    well could talk about the intent behind the authority and what
    you hope to use it for?
        Secretary Kendall. Now, we are in the process of preparing
    a report for the Congress on this, and I think it, it has been
    briefed already to some of the members. There are roughly 700
    people that are affected by this, that are currently doing--are
    designated as Space Force missions or Space Force people
    serving in the Air National Guard. And we need to resolve their
    status, it is awkward the current arrangement. We have made it
    work for almost over 4 years now, and we can continue to make
    it work, but it is not ideal by any means.
        Our preference would be to have those people become members
    of the Space Force, and transition as the Reserve people that
    are part of the Space Force are under the new statute that was
    passed last year, that we intend stability, in general, for
    these people, their units will still exist, they will still
    serve with, basically, the same conditions of part-time, and
    full-time, and so on, and they have the same benefits and
    everything else, but they will become part of the Space Force.
        The other alternative is the creation of a Space Guard, we
    are definitely not in favor that, that it is too small a number
    of people to create a large separate institution, and I think
    it is better for them, it is better for the Space Force
    certainly if we simply move them into the Space Force as the
    Reserves are going to be moving in. So, we value those people,
    but we want to get this resolved.
        Senator Shaheen. So, you don't see this----
        Secretary Kendall. They have been out there for several
    years we need to get it resolved.
        Senator Shaheen. And I appreciate that, and you don't see
    this as a precedent for moving other missions out of the Guard,
    and this is not a blueprint to start doing that?
        Secretary Kendall. No. This is an artifact of the creation
    of the Space Force, it is one of the things--it is sort of
    cleaning up the battlefield of the creation of the Space Force,
    doing what makes sense and logical for these people to--the
    legal term is ``sui generis'', it is a unique situation. There
    is absolutely no intention to make any other changes in moving
    things out of the Guard.
        Senator Shaheen. Thank you.
        General Saltzman, Starlink and other commercial satellite
    ventures are a complement to our operations in space, but I,
    and I am sure others were troubled by the reported incident of
    SpaceX shutting off its service to the Ukrainian Armed Forces.
    So, can you talk about how we should be addressing that kind
    situation with commercial services?
        General Saltzman. Yes, Senator. I think the best way to
    answer that question is just to say we do this in a number of
    different fields, for a number of different missions, and we do
    it contractually. And so, we have many contracts where we are
    counting on commercial service providers to be integrated into
    our operations.
        And we have always had good success in making sure that
    throughout the spectrum of conflict, from time of peace,
    through crisis, and even in the conflict that those providers
    understand what the services is, and what they are expected to
    do across that spectrum of conflict. And so bottom line is when
    we have contracts to support our military operations those
    companies come through.
        Senator Shaheen. And so how does Space Force then respond
    if there are risks involved and they don't come through?
        General Saltzman. Well, I imagine that would be through the
    legal ramifications of reversing contract that you have signed.
    So, we have also look very carefully at which companies we are
    asking for what services to provide, we are very deliberate
    with making sure that we account for what parts of our missions
    should be inherently governmental functions performed by
    members of the Space Force, which ones we feel like can be
    augmented successfully by commercial services, we are very
    deliberate with that process as we include them in. And so, we
    would hold them accountable to those contracts the way you
    would any legal framework.
        Senator Shaheen. Thank you. Thank you, Mr. Chairman.
        Senator Tester. Before I get to Senator Moran, I would just
    say that by the time he gets to the courts it is too late, if
    they have done something that puts us at risk.
        Senator Moran.
        Senator Moran. Chairman, thank you. And thank you to all of
    you for your service to the country. Thanks for being present
    with us this morning.
        Secretary Kendall, the B-21 Raider Program, let me ask
    three questions on that topic, all together I am going to try
    to get to four different topics in my time. As the B-21 program
    transitions into production, is there anything that this
    committee should consider to ensure the industrial base is
    prepared to support the production ramp and fielding meet the
    warfighters' needs? Are there additional milestones or
    accomplishments that over the next year or so that you can
    share in that regard, with the B-21 and the Strategic Posture
    Committee Report, anything that is included in there that the
    Air Force intends to incorporate into the B-21 Program?
        Secretary Kendall. I hesitate to say positive things about
    programs because the B-21 is still in development and it could
    get in trouble at any time, but at this point the program is
    making good progress. It is flying, I think that is public. It
    is classified so I can't give you many details here. I would
    point out that the production numbers that are reflected in our
    budget for this year show a decrease in unit cost, because we
    have been able to negotiate lower prices with the contractor.
    So, it is one example of where we are going in the right
    direction in our contracting activities and our negotiations.
        We can get back to you in classified environment, Senator
    Moran, and give you more details about specific milestones. But
    we are watching all that very closely, and at this point, at
    least, the program is executing fairly well.
        Senator Moran. Thank you. And I would look forward to
    visiting with you in a classified setting. And it is one that
    is critical for modernizing our aviation fleet, we also need to
    invest in sustainment of existing systems, and you have, and
    while you indicated a balance between New Hampshire and Maine,
    it has been a while since you have been to Kansas, we would
    love to have you back, but while you were there we visited
    Wichita State where we saw the twinning of the B-1. Could you
    detail how the Air Force has worked to digitally reengineer
    older aircraft is important to maintaining the Legacy Fleet?
        Secretary Kendall. We have attempted to plan the full
    spectrum of needs where the B-21 is introduced that includes
    facilitization, you know, simulations, training, et cetera. So,
    I have seen programs get into trouble because there was too
    much focus on the platform, and not enough on all the things
    are necessary to support it. So hopefully, we have avoided that
    in the case of the B-21.
        Senator Moran. Collaborative Combat Aircraft, the Air Force
    plans to rapidly acquire thousands of Collaborative Combat
    Aircraft even as the experimentation and testing of manned and
    unmanned teaming continues. What is the acquisition timeline
    and when does the Air Force plan to conduct a fly off?
        Secretary Kendall. We already have contracts underway for
    five competitors right now, we are planning to down select to a
    smaller number. I am not sure exactly what that is, at least
    two though, and then move into the next phase of design for the
    first tranche, the first increment of the CCAs (Collaborative
    Combat Aircraft). The details beyond that get classified pretty
    quickly.
        We are also working on the technology, I am going to get a
    ride on an autonomously flown F-16 later this year. There will
    be a pilot with me who will just be watching, as I will be, as
    the autonomous technology works, and hopefully neither he nor I
    will need to fly the airplane. But the technology is moving
    forward really well. We are encouraged by that.
        We set up the CCA Program to have three separate
    components, one is the New Development Program itself, another
    is the acquisition of some existing uncrewed aircraft that we
    could use to develop the organizational concepts, and
    maintenance approach, and so on, sort out some of those non-
    acquisition things, and also moving the technology forward to
    feed into the program. And all of those are moving forward. I
    am very encouraged by where the CCAs are.
        Senator Moran. Does the Air Force plan to have clean sheet
    designs for each mission set, or does it plan to have multiple
    role CCAs?
        Secretary Kendall. The initial role for the aircraft is
    going to be counter-air, but it will have the potential to do
    other things. So, the first increment which we are trying to
    get out quickly is sort of a minimum viable product, and then
    the second and follow-on increments will add additional
    capabilities. We want to manage it very carefully, though,
    because we have to keep the cost under control.
        The intent is to keep the cost of these aircraft to a third
    or a quarter the cost of an F-35, say. If we don't accomplish
    that, they won't be as cost effective as we desire.
        Senator Moran. Mr. Secretary, my final question. The
    release of the MOB 7 Basing Criteria for the KC 46-A Aircraft
    revealed an adjusted force structure of eight rather than
    twelve aircraft. Will the unit receiving the next KC-46 units
    have the exact mission requirements as they did with the 12
    aircraft KC-135 fleet? If so, what kind of feasibility analysis
    has been done to demonstrate that capability?
        Secretary Kendall. I don't have the details on that one
    already, I will have to take it for the record.
        General Allvin may be able to answer.
        General Allvin. I would just answer, Senator, that the
    requirements of each of the bases really comes through our
    AFTRANS our Air Mobility Command to TRANSCOM, so the
    requirement as far as the capabilities required and the
    capacity required it adjusts to the fleet size. So that we
    wouldn't expect that there would be a fleet--a requirement that
    exceeds the capacity of the base with the platforms at the end.
        Senator Moran. Do we know that that capacity exists with
    eight and not twelve? Or we don't know that? Or you are saying
    it doesn't exist.
        General Allvin. Well, if the capacity is reduced because of
    eight versus twelve, then the requirement will be adjusted
    accordingly so we won't be overstressing the crews or the
    maintainers to have them go up against a greater requirement
    for the capacity there.
        Senator Moran. Thank you. Thank you, all.
        Senator Tester. Senator Hoeven.
        Senator Hoeven. Thank you, Mr. Chairman. And thanks to all
    three of you for being here, and for your service to our
    country.
        Secretary Kendall, we have the best intelligence,
    surveillance, and reconnaissance capabilities in the world, but
    I am concerned that the drawdown of our fleets of ISR
    (Intelligence, Surveillance and Reconnaissance) Aircraft,
    including Global Hawk, without adequately replacing those
    capabilities in the Air Force is a concern. Do you believe that
    we have the best ISR capability now versus any of our
    adversaries?
        Secretary Kendall. Yes, overall, but we need to modernize,
    and we need to modernize quickly, and one of the things we are
    doing is shifting more capability into space, and that is
    largely because of the increased threats to our airborne
    platforms. We are acquiring systems like the E-7 which will
    give us an important element of capability. We always want to
    present the threat with an array of problems, not just one
    problem. So we don't want to be totally dependent on space, and
    we can't be totally dependent upon airborne platforms.
        So we are going to have a mix in the fleet for the
    foreseeable future, and we are going to have a more modern set
    of capabilities. A lot of our existing capabilities are very
    useful in a benign environment, in a not highly competitive
    environment, and we want to retain them for that purpose, but
    we also need to get on with modernization of more survivable
    assets at the same time.
        Senator Hoeven. Right.
        Secretary Kendall. And I will be happy to give you a more
    detailed brief at classified level.
        Senator Hoeven. Right. And we need to do that. You and I
    have talked about that, but for purpose of this briefing, so it
    is important that Air Force maintain that capability, and that
    we not have a gap in terms of what we, our leadership and ISR
    now, with the idea we are going to hand it off to Space and
    maybe have it in Space Force someday, but have a gap in either
    time, like a 5-year time gap, or capability, where an
    adversary, like China, might have a superior ISR capability,
    correct?
        Secretary Kendall. We are moving in the space as quickly as
    we can, and we have funded programs right now, particularly for
    ground moving target capability, that again, they are highly
    classified. And we are moving forward on technology and
    programs for air-moving target indications as well. Some of our
    older systems, like AWACS (Airborne Warning and Control
    System), for example are increasingly expensive to maintain.
        Senator Hoeven. Right.
        Secretary Kendall. We have drawn them down as a way to be
    more efficient with the aircraft that remain, there is a
    transition happening there. We have reduced our MQ9 Fleet but,
    you know, we have got it to a level now where we think we are
    going to maintain it. So we are trying to manage that, and
    manage the risk, but we are moving aggressively to space, that
    is not a long way away.
        Senator Hoeven. Right. But you would agree at the same time
    we have to maintain the best ISR capability versus any of our
    adversaries, as we do some of that transitioning, you would
    agree with that?
        Secretary Kendall. We do need to maintain ISR capability on
    air as we transition, and I think you--what you are aware I
    know you have been briefed, and Allvin and I have been talking
    about some of the things we are doing, and how we are going to
    take advantage some of the programs that we can't talk about in
    an open hearing.
        Senator Hoeven. Right. Well, my two remaining questions
    are: in addition to ISR, we want to have some offensive
    capability as part of that as well, right, both in terms of
    cyber and kinetic, right? And it is not just ISR, right?
        Secretary Kendall. Oh. Yes. Yes.
        Senator Hoeven. It is those offensive capabilities combined
    with stealth. And the other thing is, are you willing to work
    with this committee to make sure there isn't any gap, and that
    we are working with fixed-price contracts where we know the
    costs, versus a projected capability and a projected cost which
    is likely going to be much, much higher? My question is, are
    you willing to work with the committee, and that those things
    are important? That is my question.
        Secretary Kendall. They are important. We will work with
    the committee. I don't want us to talk by each other, and on
    what side, I am trying to be careful there.
        Senator Hoeven. But you know where I am going?
        Secretary Kendall. I think I understand where you are
    coming from.
        Senator Hoeven. Yes. And thanks.
        Secretary Kendall. I will be happy to work with you.
        Senator Hoeven. Okay. Appreciate it.
        And General Saltzman, anything you want to offer on the
    same issue, because you are obviously a big part of that
    transition?
        General Saltzman. Absolutely. And as you know SDA (Space
    Development Agency) is doing some work to help start to foster
    the kind of data transport layers, the kind of missile warning
    capabilities that we will need, as well as the GMTI (Ground
    Moving Target Indicator) capabilities that we are collaborating
    on, as the Secretary mentioned. All of those, if they are fully
    funded through the program as designed looking at later this FY
    DP (Future Years Defense Program), to start to deliver some of
    those capabilities.
        Senator Hoeven. Yes. And to get the right result we have to
    work very carefully with both of you to make it happen the
    right way.
        And then, General Allvin, I want to thank the Chairman for
    his emphasizing the importance of the Nuclear Triad and the
    updating of the ICBM to Sentinel, and how important he thinks
    it is, and that I concur with that. I do as well. I also want
    to express my appreciation for your answer that the
    modernization is an absolute requirement, and that we will
    address Nunn-McCurdy as part of that. And I appreciate the
    steps you are taking to make sure that that gets done.
        A specific question I have for you is in regard to weapons
    generation facility at the Minot Air Force Base which is the
    only dual nuclear base status, and your plans to address that?
        General Allvin. Obviously, the weapons generation
    facilities at all of the bases are key, they are going to be
    important and as we have discussed before we need to ensure
    that we have those accomplished in the right order, so by the
    time we are ready to take on the platforms such as the B-21 and
    the modernized platforms, we also have the right weapons
    generation facilities to be able to arm those as well.
        Senator Hoeven. Okay. Again thanks to all three of you,
    appreciate it. Thanks Mr. Chairman.
        Senator Tester. Thank you Senator Hoeven. And for the
    information of the Senators, we are going to be holding a
    classified hearing on Space Force related issues, and if there
    are issues that need to be in that classified hearing on the
    Air Force, too, we are more than happy to include those.
        Senator Boozman.
        Senator Boozman. Thank you Mr. Chairman. Thank you all for
    being here, we appreciate your hard work in keeping our Nation
    safe, but also in keeping--taking care of the men and women
    that serve, which is so, so very important. Along with the
    entire Arkansas delegation we are pleased with the continued
    investment at Ebbing Air Base, making it the Nation's Premier
    Foreign Pilot Training Center for allies and partners.
        General Allvin, can you speak to the importance of training
    our allied foreign pilots on U.S. soil, and why it is
    imperative to our national security?
        General Allvin. Thank you, Senator. And trust me, I say
    this out of pride not arrogance, but we have the best pilots in
    the world, and so if you want to train, being trained by the
    best is good for everybody involved, but specifically, you
    know, training with our Airmen here in the U.S. in places like
    Ebbing, it offers you the opportunity to not only understand
    how to fly the aircraft but how to use tactics techniques and
    procedures that are similar to those that we do as well.
        So as we train that with the pilots from foreign countries,
    their Air Forces develop those same tactics, techniques, and
    procedures, and then we can train like we are going to fight
    together. And so it makes us just a better allied and partner
    fighting force when we train on the same systems, and with the
    same tactics, techniques, and procedures.
        Senator Boozman. Very good. Secretary Kendall, you continue
    to emphasize the need for our investments to meet China's
    escalating military threats head on. China already has more
    troops, more munitions, and more hypersonic weapons than we do,
    their momentum is only growing. Can you talk to us how you
    would assess the progress you are making to keep pace with
    China's aggressive modernization efforts? And very importantly,
    what do you need most from this committee to ensure you can
    achieve your strategic objectives, and protect America's
    interest at home and abroad?
        Secretary Kendall. Senator Boozman, the second part of your
    question is the easier part. Timely appropriations; and thank
    you for asking, so I could say that; the Chairman talked about
    it earlier, so did the Vice Chairman.
        Senator Boozman. You can't say it enough, we appreciate
    that.
        Secretary Kendall. We have given up about a third of the
    time available over the last 15-odd years when we could have
    been making progress. And we have lost 5 years in the 15 years,
    and that you cannot win a race when you move at that kind of a
    pace, relative to an opponent who is not-- doesn't seem to have
    the same constraints. So time is my biggest concern, and timely
    appropriations is critical to success.
        I get intelligence and briefs every single morning, and I
    have given a threat briefing to the committee, we would like to
    offer another opportunity to do that, come over with an updated
    briefing, because the threat keeps changing, it keeps getting
    worse. And I just saw some data this morning which was, you
    know, concerning.
        And so we have got to move forward as quickly as we can. We
    are trying to structure our acquisition programs to make that
    happen, but I also want real capability delivered, so the
    guidance I have given the acquisition community is structure
    programs to get meaningful military capability as quickly as we
    can.
        And meaningful military capability isn't one or two
    prototypes, it is numbers that would matter and pose a threat
    to the adversary. So we are trying to structure our programs to
    accomplish that.
        We need to move forward very quickly in Space. Space focus
    needs to go through a transformation, it needs to go from,
    essentially, a situation where we could operate with impunity
    to one where we can't. And China has already fielded a number
    of anti-satellite capabilities and is fielding more.
        And China has also fielded a number of systems designed to
    target U.S. assets, and support warfighting, and we have to
    deal with those. We have to have counterspace capabilities that
    can deal with those, and traditionally we have not had a lot of
    capabilities. There are things that I can't talk about here
    that contribute to that, and that is very helpful, but it is
    not enough, we need to do more.
        On the Air Force side, we have this very large capital
    investment in the installed Force, and we have this very large
    set of global capabilities that we are supporting. So the
    balance there is about doing enough for all of that, maintain
    that, while we get on with modernization at the same time. I
    have a little bit of flexibility within the Department of the
    Air Force to move assets between the Space Force and the Air
    Force, we haven't done a lot of that, I did more of the first
    budget that I built than the last two.
        I think the risk is reasonably balanced. But time is my
    biggest concern. We are doing the right things, what we
    identified under both the operational imperatives, and the
    subsequent work on cross-cutting operational enablers, is the
    right suite of investments. And the $5 billion down payment
    that we got in the 2024 budget and the $6 billion we are asking
    for in this budget are going to move us in the right direction.
        We could move faster, and I would like to be able to do
    that, but I think we have a reasonable pace of modernization,
    if we are fully funded and promptly funded with the request
    that we have.
        Does that answer your question?
        Senator Boozman. Yes, sir, very much. Thank you very much.
    Again, thank you for being here.
        And thank you, Mr. Chairman.
        Senator Tester. Senator Murkowski.
        Senator Murkowski. Thank you, Mr. Chairman.
        Mr. Secretary, Generals, welcome, and thank you for your
    leadership.
        Mr. Secretary, it was good to visit with you just the other
    day in Anchorage. I appreciate your time and the opportunity
    to, again, talk about one of the issues that is impacting the
    mission readiness capability in Alaska with this proposal from
    the National Guard Bureau with regards to the AGR (Active Guard
    Reserve) due to technicians, I appreciate you looking into
    that, and really critically evaluating what that will mean to
    mission readiness.
        We talked a lot about the assets that the Air Force is
    requiring to keep pace with what is happening in the world, and
    we cannot overlook that none of this happens without the men
    and women that are operating and maintaining.
        I want to thank you, all three of you, for recently
    enacting the assignment incentive pay for extreme cold weather
    locations. That makes a difference in places like Minot, North
    Dakota, and in Eielson Air Force Base. Those people are very
    appreciative for that.
        Mr. Secretary, I would like to just draw your attention to
    a couple more areas of concern. One is this BAH (Basic
    Allowance for Housing) situation in Eielson, you got a
    situation there where airmen and their families are paying
    anywhere between $500 and $1,000 a month for home--for utility
    cost. It is a fact that the BAH there barely covers the cost of
    rent in the region. I just ask you to have your team look into
    this situation so that we are not in a place where utility
    costs really consume everything that these families have. So I
    would like you to take a look at that.
        The other thing that you and I had an opportunity to speak
    to was, the success of the Fly Back Program that we put into
    place just last year. We just got this survey back as of
    yesterday; I see it is good responses in the survey, in terms
    of how many participated in it, what the impact was to the
    Airmen who were able to take advantage of it. Basically, it is,
    on average, over $1,000 out of pocket to these individuals if
    they wanted to try to travel home. Nearly everyone says yes,
    save this program.
        So, I am hoping that you, too, see the success of this Fly
    Back Program, and then the individual initiatives that are
    going on to make it even better. Sarah Riffer with our Alaska
    Arm Services Y has made it a personal mission to even improve
    on this by being able to provide family members who are able to
    use the program, to give them companion tickets so that their
    families can go home with them. So, every little thing that we
    can make a difference, particularly in cold and darker places,
    are things that we would like to ensure a focus on.
        Let me ask a question to you, General Allvin. And this is
    with regards to the redesignation that we just saw up at
    Eielson, with the 18th Aggressor Squadron redesignated as the
    18th Fighter Interceptor. One of the challenges I think you
    recognize is we are utilizing the F-16s there, they are nearly
    50 years in age, very capable we do have the introduction of
    the F-15EXs which are great modern solutions here with greater
    payload.
        My question to you is, can you share the future plan for
    our Interceptor Squadron as our F-16s continue to age out? I
    think you recognize, again, what a benefit this has been with
    this redesignation, but we do have aging aircraft.
        General Allvin. Yes. Thank you, Senator, for that. And it
    has been a win-win, you know, by redesignating to the Fighter
    Interceptor Squadron, we have already seen improvements in the
    readiness of the F-22s, so that fifth-generation readiness is
    happening, and the team is doing a fantastic job in the Fighter
    Interceptor's Squad, it is sort of tailor-made for that
    mission.
        To your point, though, about the aging aircraft, you know,
    the average F-16 is 33 years old, and I understand these in
    Alaska are older. So we are going to continue to manage that
    fleet. The F-16 is the most affordable in the Fighter Fleet,
    and so for the mission of Fighter Interceptor, it really is,
    really the ideal type of aircraft to do that at the right price
    point.
        So we will continue to manage into the next decade to
    ensure that we have the right--the maintenance on that
    sustainability, and continue to make sure that we can maybe
    trade out the older ones for the newer F-16s, and manage that
    fleet through, because looking into the future, there may be a
    point in the next decade or so where we start to leverage
    things like Collaborative Combat Aircraft, to be able to
    augment on the Fighter Interceptor Mission.
        So long term, there may be a different Force design for
    doing the Fighter Interceptor Mission, but we will attempt to
    manage to ensure we have modern enough F-16s to do that job,
    primarily, because they are tailor-made for it.
        Senator Murkowski. Thank you.
        Mr. Chairman, I know you indicated you were going to do
    another round, could I just do one more, quick question for
    General Saltzman? Thank you.
        General, we know that the Air Force is proposing
    legislation to bypass existing law requiring it to obtain a
    Governor's consent before making changes to National Guard
    Unit, and to transfer 14 Air National Guard Space Units across
    seven states into the Space Force. Last year you testified that
    the Air National Guard makes up 30 percent of our Nation's
    Space Force capacity. What we understand, and this comes from a
    recent poll, of nearly 200 ANG (Air National Guard) Space
    operators, more than 50 percent said they would not transfer to
    the Active Duty Space Force.
        So the concern here of course is that you are going to have
    an impact on the mission on our preparedness, it seems to me
    you are potentially taking on a lot of risk there. Wouldn't it
    be easier to transition these units and personnel to a Space
    National Guard? And if you disagree with that, can you explain
    how this proposal, your proposal, is not going to create a gap
    in our space capabilities?
        General Saltzman. Thanks, Senator. The missions that are
    currently being performed in the Air National Guard are
    critical to our success, and I have been very clear about that
    in the past. The easiest way for me to manage it though, is for
    those missions to be performed in a single component. There is
    an added level of complexity if the Space Force is required to
    manage a second component like a Space National Guard. And I am
    trying to do my best to keep the administrative bureaucracy,
    the staffing levels of the Space Force as small as possible.
        But in order to take care of those Airmen that are
    currently performing Space Mission, I would need to have some
    administrative increases in order to manage two retirement
    systems, two promotion systems, all of the necessary overhead
    that comes with a second component. We were very thankful for
    Congress for passing the Space Force Personnel Management Act,
    which gave us the authorities to manage both full-time and
    part-time in a single component. We think this is
    revolutionary, and it is going to have a real impact on
    retention and career flexibility. So we are looking to take
    advantage of those.
        As far as the mission risk, here is the way I am thinking
    about it, almost every mission, in fact, every mission that is
    currently in the Space Force has come from another service or
    another military organization. And so all we have been doing
    for the last 4 years is managing that transition risk.
        Now, a lot of it came from the Air Force and it wasn't
    nearly as hard, because a lot of the Guardians came from the
    Air Force. But recently, in the last 2 years the Army and the
    Navy have both given us satellite communications capabilities.
    The Army's given us their Missile Warning JTAGS (Joint Tactical
    Ground Stations) capabilities.
        All of those missions directed to the Space Force, came
    with no promise of personnel, so we simply had to plan and
    manage the risk that could be associated with it, but by
    deliberately planning it, managing our accessions' rates, and
    then phasing those transitions in over time, we have been able
    to perform those missions seamlessly without any gaps in
    capability.
        Senator Murkowski. Mr. Chairman, I am well over my time,
    but thank you.
        Senator Tester. Senator Capito.
        Senator Capito. Thank you Mr. Chairman and thank you three
    gentlemen for being here with us today.
        General Saltzman I would like to start with you, because we
    do know that space domain awareness is essential for our
    military operations in space, and for many operations rely on
    Space-based assets like our satellite communications,
    obviously, in the non-military space, cislunar space domain
    awareness has also increased in importance. How is the Space
    Force collaborating with private sector, academic, and
    interagency partners to leverage the space domain awareness
    arena and capabilities?
        General Saltzman. Yes ma'am. Thank you. I can't emphasize
    this enough. Avoiding operational surprise in the space domain
    is one of our top priorities. The foundation of avoiding
    operational surprise is access to data that is collected by a
    number of sensors. We organically have many of those in the
    Space Force, but we rely on industry, commercial services,
    commercial data capabilities, we rely on allies, international
    partners. The more data you have on the space domain the better
    you are able to make sense of what is going on. And so, we
    spend money on it, we have it a part of our commercial space
    strategy to make sure we can incorporate that data, and we are
    committed to it.
        Senator Capito. Is that an increasing capability that you--
    I mean it seems to me that would be ever expanding.
        General Saltzman. You know, it is ever expanding, and so
    one of the things that I am starting to realize now is as we
    increase the amount of data that we are pulling in from other
    sensors, we have to be able to make sense of that data, and so
    now we are investing heavily in decision support software, data
    management tools, that help us rapidly pull together----
        Senator Capito. Is that AI, is that what you are talking
    about?
        General Saltzman. I don't think it even needs to rise to AI
    necessarily, but there are some elements of that. But it is
    automating, certainly, some of the more manpower-intensive
    activities that go on.
        Senator Capito. Right. Right. Well, I understand too that
    there is some emerging cooperation between the Space Force and
    the Green Bank Observatory in West Virginia. So, I would like
    to stay in touch with you on those capabilities, and because of
    the radio astronomy that we have out there, and have out there
    for decades, so excited about those possibilities.
        Secretary Kendall, nice to see you again, you wrote in your
    statement, something stuck out to me, it says, ``The Air Force
    is accepting risk across the Service Modernization account--the
    Services' modernization account, in order to maintain minimally
    accepted near-term operational readiness, this places
    additional risk on the Air Force's ability to deter and defeat
    any adversary going forward.''
        Obviously, what caught my eye, or ear on that, is the
    ``minimally accepted''; is that the standard where we are now?
    And I think that is a minimally accepted standard. I can't even
    imagine that that is actually an accepted standard, the way you
    phrased it. So, could you explain that to me a little bit in
    more depth?
        Secretary Kendall. Thank you, Senator. The availability of
    our aircraft right now sits at around 60 percent, to me that is
    a minimally acceptable number.
        Senator Capito. Um-hum.
        Secretary Kendall. It actually dipped a little below that.
    I have the most recent data here, in part, driven by the fact
    that the V-22 fleet is still not back in the air, it is in the
    process of getting back in the air, but nevertheless, this is
    driven by a number of things, it is driven largely by supply
    chain, driven by, you know, availability of Depot for
    throughput, but it is driven by money as much as anything.
        So, we would like to be--and if you may remember General
    Jim Mattis when he was Secretary, tried to get all the fighter
    aircrafts up to an 80 percent availability, that effort failed.
    The resources just weren't there to do it. So, we are not where
    we would like to be in terms of availability, in terms of
    current readiness, but it is an acceptable level because we can
    meet our commitments around the world, we can do the things we
    anticipate that the Joint Force may be asked to do, and as far
    as the air component, particularly in the space components are
    concerned.
        The point I am trying to make with what I said in the
    statement is, we can't go below that, we need to stay there.
        Senator Capito. Right.
        Secretary Kendall. And that, you know, what happened to us
    in '25, in particular, was that our plans were scaled back a
    little bit because of the Fiscal Responsibility Act. You know,
    we support that Act. It is, again, acceptable to us, but we are
    not moving forward with this modernization under it as quickly
    as I would like to. But we are sustaining the current fleet at
    a level which is acceptable, we have our foundational accounts,
    weapon system sustainment, the care of our facilities, our
    flying hours, at levels which we could accept, and we could
    live with, but long term they would be problematic for us.
        So, as we look out over the next few years, we are going to
    have to try to do better in some of those accounts, but it is
    acceptable for this year, for 2025. And we are moving forward
    with modernization at a rate which is as fast as our funding
    allows, and I would like to go faster there as well. So, anyway
    the bottom line is that that is what is behind my statement.
        Senator Capito. Okay.
        Secretary Kendall. We have to take small cuts in
    procurement in order to sustain the research and development
    for the next generation, and again those are on the margins,
    and they are acceptable to us, but they are not where we would
    like to be.
        Senator Capito. Let me ask just a quick follow-up question
    on that. So, I suppose when I was reading this, I was reading
    more on the manpower aspect of readiness.
        Secretary Kendall. Oh.
        Senator Capito. As opposed to the operational readiness of
    the aircraft. Is that a dual problem, or is it mostly on the
    aircraft issues that you just explained to me?
        Secretary Kendall. They are all related. The availability
    of aircraft affects our ability to fly.
        Senator Capito. Right.
        Secretary Kendall. And the ability of our pilots to train,
    it affects what our maintenance people can do. We have, I think
    it is well-known, a shortage in pilots right now, rated
    officers. And some of that is the throughput that our pilot
    training pipeline, if you will, can absorb. You know, and that
    is driven by--in part, by a similar training aircraft not being
    as available as we would like them to be, we just don't have
    the aircraft hours to train as quickly as we would like and get
    as many people through.
        Overall, I think that the--and General Allvin and General
    Saltzman may want to comment on this--I am less concerned about
    the people side of this.
        Senator Capito. Okay.
        Secretary Kendall. I think that our people are doing very
    well. They are getting the training that they need in general,
    we are talking about increasing the scale of some of our
    exercises to make them more realistic, we are trying to orient
    our training more towards what we call the pacing challenge.
    You know the threat that China in a conflict--and the
    conditions that people would experience in a conflict like
    that.
        Senator Capito. Okay.
        Secretary Kendall. That is a new requirement for us. So, if
    we have the time, General Allvin, you maybe want to comment on
    that.
        Senator Capito. Okay. Yes, General.
        General Allvin. I couldn't agree with the Secretary more.
    It really is the platforms, but the platforms do drive crew
    proficiency, maintenance proficiency, and those sorts, so they
    are related but I also you know we can pick up things in the
    simulator, and those things that can help with some of the
    skills, we certainly would like to have more aircraft
    availability to increase the proficiency of our air crews, and
    our maintainers, and the like, but I think the first thing is
    to get those--get the platforms up to speed, and the aircrew,
    and maintainers will rapidly follow.
        But we certainly--when the Secretary talks about redoing
    some of our exercises, we are trying to get the most out of
    every flying hour that we can. And that gives us combat
    readiness for the pacing challenge.
        Senator Capito. Okay. Thank you. Thank you, Mr. Chair.
        Senator Tester. Thank you. I will submit my questions for
    the record, except for this one I want to ask it.
        General Saltzman, you talked about additional duties that
    were coming from other branches of the military, your
    recommendation in this budget is for an end strength of about
    9,800--the first question is, do you anticipate that you are
    going to get more duties, responsibilities, programs, whatever
    you want to call them, from either the Air Force or any other
    branch of Service, number one?
        And then number two if that is the truth, does your end
    strength recommendations meet that challenge, and if it isn't
    the truth, does your end strength numbers meet those
    challenges?
        General Saltzman. Thanks, Senator. We are in a period of
    managed growth, we are certainly getting new missions, we are
    developing our own missions. We are getting them from other
    services. The trick is, I don't want the manpower before I have
    the actual systems to operate. We talk about counterspace, the
    ability to hold at risk the adversary satellites that can
    perform space-enabled targeting against the Joint Force, those
    missions have yet to be realized because we are still
    developing the architectures to launch to put into place.
        But as those get closer and closer to IOC (Initial
    Operational Capability), we will be building the squadrons that
    support those and fly those capabilities. And so, the trick is
    not asking for manpower before you need it, and then once you
    start to ask for it make sure you have the training pipeline,
    and the accessions pipeline to account for it. So, I am
    comfortable with the level of growth that we have asked for in
    this budget and I think that is going to be a continued managed
    growth over the next few years.
        Senator Tester. And excuse me, I just got to ask one more
    follow-up. And that is, when you are recruiting people to join
    the Space Force, are you recruiting people from other Service
    branches to join the Space Force, or do you have your own
    recruiting folks to recruit folks out of high school or
    college?
        General Saltzman. So, it is both right now. We are using
    the Department of the Air Force's Air Force Recruiting Service
    as a part of the recruiting for the Space Force, so we bring
    people straight from high school straight from colleges for our
    officers on our own, but we are also still leveraging, because
    we need experienced people, senior people to fill out some of
    the staffs, once a year we ask for inter-service transfers. And
    so, a couple of hundred a year are coming from the other
    Services, but I suspect once we start to develop our own size
    at the field-grade ranks, we will need less and less of those
    inter-service transfers.
        Senator Tester. Okay. Senator Collins.
        Senator Collins. Thank you, Mr. Chairman.
        General Allvin, a September 2023 GAO (Government
    Accountability Office) Report found that the F-35 mission-
    capable rate across all the variants of the F-35 was only 55
    percent that is far less than the program goal of 90 percent
    for the F-35A, as I am sure you know. We know that the aircraft
    can sustain a much higher mission-capable rate because the
    Israeli Air Force has been sustaining mission-capable rates
    that far exceed what GAO found for the U.S. fleet last fall.
        Your unfunded priorities list includes $612 million for
    Fighter Force reoptimization to purchase spares and other
    equipment necessary to make up to 208 Fighter Aircraft
    operationally capable within the existing inventory. That
    strikes me as such a logical investment. I mean, if by just
    buying more spare parts we can put more than 200 aircraft back
    into commission, why was that not included in the budget
    itself?
        General Allvin. Well, thank you Senator. Because I really
    want to--there are really two parts to that that I want to
    answer. First, of all to your point about increasing the
    mission-capable rate, the Joint Program Office is working very
    hard in trying to look at the degraders across all three
    variants, and so that is really happening through the Joint
    Program Office.
        Your point about the Israelis is a very good one, because
    we want to make sure we learn the right lessons. They certainly
    are having a much higher mission-capable rate. We need to see
    which of that is transportable because obviously they have
    different sortie durations and different missions, but the
    point is made that they do have a very respectable mission-
    capable rate. So, the Joint Program Office is working on that
    from a purely mission capable.
        The 612 million, is actually, it makes more aircraft
    available in this way, it is not so much that just getting more
    spare parts, but we are really adjusting the paradigm from how
    we traditionally have been deploying, and having spare support
    for our aircraft, for our squadrons. Traditionally, you have a
    squadron of, in the fighter world, 24, and you have a readiness
    spares kit that goes with that 24 in case they need to go
    deploy.
        If you deploy 12 you still take that readiness spares kit,
    so now you have 12 aircraft forward and you have 12 aircraft
    back at home that are sort of tethered to the home base because
    they don't have an additional spares skit to go somewhere else,
    because a long time ago the paradigm was, those would fall in
    on the original in the same location.
        We are not doing that anymore. So, we need to have the
    flexibility to have smaller units rather than units of 24, with
    a spares kit that will let them deploy organically. So, by
    having this 612 million, which applies to F-35, F-22, F-15, and
    F-16, by having those it will allow us to take a squadron of 24
    and maybe deploy to two different locations and operate
    independently. Meaning, we can make more aircraft available to
    the combatant commander for the requirements they may have, or
    actually the ones who aren't deploying can actually train
    better to do the Agile Combat Employment and go to locations
    where they may have to disperse.
        So, it is really upgrading our way of presenting Forces to
    the combatant commands and training for the high-end challenge,
    so that is what that additional capability made available to
    the combatant commanders, as others, because we can deploy more
    smaller units rather than just having to deploy units to one
    location.
        Senator Collins. Thank you. Thank you, Mr. Chairman.
        Senator Tester. Yes. I want to thank the folks for their
    testimony here today. We are going to work very, very hard to
    get this budget out on time so our hearing times are going to
    be very compressed.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senators May submit additional questions. I would ask that
    you would answer them as quickly as possible, and as thoroughly
    as possible within 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 Hon. Frank Kendall
                   Questions Submitted by Senator Jon Tester
        Question. Middle Tier Acquisition programs enable rapid prototyping
    of capabilities, and the fielding of new technologies. This is an
    authority granted to the military services to accelerate development
    and deployment of new capabilities considering the urgent threat.
    However, for at least the last three budget cycles, the Department of
    the Air Force has not fully funded some of these accelerated programs
    in its budget.
        Secretary Kendall, what is the justification for not fully funding
    rapid acquisition programs? I would argue that this sends a message
    that the Air Force is not committed to the success of these programs.
    Additionally, we know that ramping up production of weapons systems on
    short notice is challenging. What is the feedback from the defense
    industrial base with respect to transitioning prototypes into large-
    scale production? Are the budgets sufficiently stable and predictable
    for industry to put skin in the game?
        Answer. The Middle Tier Acquisition authority enables rapid
    prototyping, and we need to ensure we transition to a full program for
    capabilities the Department of the Air Force (DAF) determines are
    needed, cost effective, and affordable. The DAF is committed to working
    with industry to transition these programs into production to reach
    full capacity; however, our modernization plan is highly sensitive to
    changes in our topline and you are seeing the result of Fiscal
    Responsibility Act topline impacts in the decisions made in the Fiscal
    Year 2025 President's Budget request. The DAF is working within our
    budget to modernize while remaining compliant with restrictions related
    to the size of our force. My guidance to the DAF is that programs
    should be structured to field meaningful military capability as soon as
    possible.
        Question. The Air Force is planning to buy fewer fighter jets this
    year than initially anticipated. It's no secret that the F-35 program
    continues to face development delays. I understand that right now,
    there are dozens of aircraft sitting on the factory floor that are not
    combat capable because software hasn't been delivered on time. These
    delays harm our readiness and limit the effectiveness of the Joint
    Force. Mr. Secretary, you have referred to the F-35 program as an
    example of ``acquisition malpractice.''
        What lessons have you taken from the high-risk, concurrent
    development strategy? Given the pressure from the combatant commanders
    to field modernized capabilities now, how do we avoid rushing programs
    into production before they're ready? Is the Department of the Air
    Force planning to accept these aircraft? What is your plan to get the
    F-35 program back on track?
        Answer. Over a decade ago, I referred to the decision to enter F-35
    production well before the design was stable as ``acquisition
    malpractice.'' The United States Air Force (USAF) faces key
    development, interoperability, sustainability, and affordability
    challenges to ensure combat ready aircraft are acquired, and that the
    existing F-35A fleet is upgraded, and retrofitted to ensure these
    aircraft are prepared to counter current and developing threats as
    quickly as possible within projected resource constraints. Current
    Block 3F F-35As are sufficient to counter the threats they were
    designed for but will be less effective against high-end threats
    identified in the National Defense Strategy. Block 4 modernization with
    Technical Refresh-3 hardware ensures F-35 relevance in a high-end fight
    against China or Russia. The FY25 President's Budget request provides
    funding to deliver Block 4 capability essential to F-35 relevance
    against peer/near peer adversaries by Lot 22, which delivers in
    Calendar Year (CY) 2030. Development remains Block 4?s most critical
    challenge. USAF supports the Joint Program Office efforts to
    ``reimagine Block 4'' which will focus on what industry can deliver
    across the Future Years Defense Program while applying more robust
    systems engineering in the Block 4 program to establish realistic cost,
    schedule, and performance targets for Block 4 capabilities.
        Question. It was a little over a year ago that the Air Force
    approved a comprehensive Missile Community Cancer Study. This was after
    alarming reports that former missileers at Malmstrom Air Force Base in
    Montana are dying of Non-Hodgkin's Lymphoma at rates higher than the
    national average. Mr. Secretary, what is the status of this study and
    how are you coordinating with the VA? When can we expect the study's
    final findings and recommendations?
        Answer. The researchers at the United States Air Force School of
    Aerospace Medicine (USAFSAM) completed Phase 1a of the epidemiological
    study and Phase 1b is underway. The epidemiological study is moving
    forward as expected. A detailed summary of Phase 1a can be found on the
    Missile Community Cancer Study website. Additionally, USAFSAM is
    executing the third and final round of Environmental sampling at its
    three major installations. We anticipate completing all three phases of
    the epidemiological study and the environmental sampling results by
    late summer of 2024. A peer-reviewed paper with findings and
    recommendations is expected to publish on the MCCS website in the fall.
        USAFSAM and Air Force Global Strike Command (AFGSC) teams worked
    closely with the Department of Veterans Affairs (VA) since the start of
    this study. The Air Force team (i.e. AFGSC Surgeon General, Air Force
    Medical Agency, and USAFSAM) conduct monthly phone calls with the VA
    and quarterly updates to the VA Military Environmental Exposure Sub-
    Council. Additionally, the VA created an informational website, linking
    to the Air Force Missile Community Cancer Study website. The Air Force
    provided research data to the VA to help determine the number of former
    missileers seeking care in the VA system. The Air Force study team is
    committed to its collaboration with VA medical and the research
    personnel and will continue to provide regular updates going forward.
    Lastly, the Air Force team briefed VA White House staffers and PACT Act
    leadership in January 2024.
        Question. Secretary Kendall, you are leading an internal re-
    organization of the Air Force to ensure it's ready for the future
    fight. Tell us more about your plans, please. You have shared that this
    realignment will largely be resource neutral. Is that still your
    assessment? What steps did you take to understand the resource
    implications of this reorganization prior to its implementation?
        Answer. At this point, reoptimizing for Great Power Competition
    (GPC) does not change the FY24 or FY25 Department of the Air Force
    (DAF) President's Budget request. The Department conducted a five-month
    effort focusing on developing needed high priority solutions to make
    the DAF more competitive for GPC. The effort included over 1,500
    Airmen, Guardians, government civilians, and contractors from across
    the DAF, including the Major Commands and Field Commands. The
    Department is in the process of identifying any GPC-driven resource
    increases, which we intend to minimize. Near-term actions may require
    changes in budget execution, and we will work within our current budget
    authority. If the DAF identifies budget realignment requirements to
    implement near-term GPC efforts, we will work through the reprogramming
    process to seek funding flexibility from Congress.
        Question. General Allvin, regarding internal re-organization of the
    Air Force, from your vantage point how do the proposed changes result
    in a more capable force? What are your concerns about potential impacts
    to our military and civilian workforce?
        Answer. The proposed changes are designed to enhance United States
    Air Force (USAF) capabilities in a strategic environment defined by
    Great Power Competition. We anticipate no changes in end strength.
    These adaptations are crucial given the rapid evolution of threats that
    challenge traditional concepts of homeland sanctuary and U.S. military
    dominance.
        The reorganization focuses on transforming USAF wings into combat
    units of action. To address vulnerabilities in current force
    presentation, doctrine, and command, control, and communications
    support systems, the USAF is adopting a structure that increases
    survivability and combat lethality. This is achieved through enhanced
    dispersion, flexibility, resiliency, redundancy, and agility to deter
    and, if necessary, prevail in conflict. By reorganizing its force
    structure and embracing new operational paradigms, the USAF aims to
    successfully navigate the complexities of Great Power Competition,
    thereby defending U.S. interests and maintaining global stability. We
    are reoptimizing how we present forces at the wing level to provide
    more effective combat capability through more coherent warfighting
    teams. The USAF also plans to implement changes centered on how we
    develop people, generate readiness, project power, and develop
    integrated capabilities. We will continue to update Congress as we
    reach key decision points.
                                     ______

                  Questions Submitted by Senator Patty Murray
        Question. How does the President's Budget support the Air Force's
    air refueling mission?
        Answer. Air refueling is required for power projection that
    delivers a decisive advantage. The FY25 President's Budget requests
    nearly $1.8 billion in the air refueling enterprise and approximately
    $17.4 billion across the FYDP. The priorities in the Air Force tanker
    portfolio are continuous recapitalization of our aging KC-135s and the
    acquisition of the NGAS system to provide survivable refueling in a
    highly contested environment. Tanker Recapitalization is the program to
    continue tanker replacement between the current procurement of the KC-
    46A and beginning of the Next Generation Air-refueling System. The
    Tanker Recapitalization Program will continue replacement of KC-135s
    (after delivery of the last KC-46A) to maintain at least a 466-tanker
    fleet. The final acquisition strategy for the Tanker Recapitalization
    Program is pending and is expected in Quarter 3 of FY24.
        Question. How does the FY25 budget help support PFAS clean up on
    Air Force bases and communities around bases? What resources do you
    need to help speed up clean-up efforts?
        Answer. The $362 million requested in the FY25 President's Budget
    will continue to accelerate Department of the Air Force (DAF)
    perfluoroalkyl and polyfluoroalkyl substances (PFAS) response efforts.
    This request will apply $106 million toward cleanup related response
    actions; execute interim remedial actions to prevent further plume
    migration; sample drinking water wells where sampling was not
    previously required; expand sampling to where it is now required; and
    further PFAS investigation efforts.
        The remaining $256 million will be used for actions in furtherance
    of Aqueous Film Forming Foam replacement, including with respect to
    procurement, transition activities, and disposal; on-base drinking
    water monitoring; and research, development, test, and evaluation,
    including with respect to PFAS destruction technologies.
        Question. General Saltzman, can you provide an update on the Space
    Force Front Door Program? What resources are needed to ensure that the
    United States is keeping up with new technologies?
        Answer. The Space Force Front Door was established in Calendar Year
    (CY) 22 and is the entry point for commercial industry to do business
    with the United States Space Force (USSF). In late CY23, we revamped
    its website to better evaluate capabilities, be more responsive to
    industry, and share information across the Department of Defense and
    Civil Government. Since its establishment, we on-boarded over 300 new
    companies.
        Last year, Congress established a commercial service budget line,
    which enables the USSF Commercial Space Office to acquire new and
    emerging commercial technologies at the speed and with the agility
    needed to meet the pace of the commercial market. The Chief of Space
    Operations and Assistant Secretary of Air Force for Space Acquisition
    and Integration signed the first-ever Commercial Space Strategy, which
    frames the discussions, conditions, and processes necessary to
    accelerate purposeful pursuit of hybrid space architectures. For the
    United States to keep up with emerging technology, we need the
    necessary resources to onboard emerging technologies and provide
    investment opportunities that carry technologies across the ``valley of
    death''. The USSF will continue to work with partners to fund
    commercial technologies for mission areas consistent with the
    Commercial Space Strategy and look for opportunities to integrate,
    exercise, and operate commercial capabilities to ensure reliability and
    scalability across the spectrum of conflict.
                                     ______

                  Questions Submitted by Senator Tammy Baldwin
        Question. I share the Air National Guard's concerns about the slow
    pace of fuel tanker recapitalization--the KC-46A replacing the KC-135
    legacy platform that has remained in constant service since 1956. To
    maintain capacity to support contingency planning, the FY24 NDAA
    prohibited the Air Force from using FY24 funds to retire KC-135s from
    the reserve components and set a floor on air refueling inventory of
    466 aircraft. Please outline the Air Force's strategy for modernizing
    the refueler inventory while providing sufficient capacity to support
    contingency operations. Is the FY25 President's budget request
    sufficient to realize this strategy? What is the Department's plan for
    the reserve component tanker inventory that is not recapitalized as
    part of the 15 KC-46A main operating bases?
        Answer. Air refueling is required for power projection that
    delivers a decisive advantage in peer warfighting. In FY24, the Air
    Force retired KC-10s ``1-for-1'' as KC-46 aircraft delivered. The FY25
    President's Budget requests nearly $1.8 billion in the air refueling
    enterprise and approximately $17.4 billion across the FYDP. The Air
    Force tanker plan for the Tanker portfolio remains the continuous
    recapitalization of our aging KC-135s. Tanker Recapitalization is the
    program to continue tanker replacement between the current procurement
    of the KC-46A and beginning of the Next Generation Air-refueling
    System. The Tanker Recapitalization Program will continue replacement
    of KC-135s (after delivery of the last KC-46A) to maintain at least a
    466-tanker fleet. The final acquisition strategy for the Tanker
    Recapitalization Program is pending and is expected in Quarter 3 of
    FY24.
                                     ______

                 Questions Submitted by Senator Jeanne Shaheen
        Question. The FY20 NDAA required the phase out of aqueous film-
    forming foam (AFFF) firefighting foam containing PFAS by October 1,
    2024. Is the Air Force on track to meet that deadline this year? Has
    the Air Force also provided the necessary resources to Air National
    Guard units to replace AFFF?
        Answer. The Department of the Air Force took steps to cease using
    aqueous film-forming foam (AFFF) in all 567 facilities and is
    transitioning firefighting vehicles to Fluorine Free Foam. Only one
    hangar for Marine One at Joint Base Anacostia-Bolling and approximately
    800 firefighting vehicles will require an extension to the FY20 NDAA
    deadline of October 1, 2024. The Office of the Secretary of Defense is
    developing extension request documentation for each of the two NDAA-
    permissible 1 year waivers that will apply to the entire DoD. Each Air
    Force component, including the Air National Guard, is securing funds to
    remove and dispose of AFFF associated tanks and distribution in
    facilities through a centralized contract with the United States Army
    Corps of Engineers. Each Air Force component is sourcing the new
    Fluorine Free Foam through a contract with the Defense Logistics
    Agency.
        Question. Secretary Kendall, I enjoyed hosting you in New Hampshire
    at Pease Air National Guard Base to announce the Department's policy to
    increase transparency with affected communities from PFAS- contaminated
    sites across the country. My constituents in Portsmouth are concerned
    about a lack of transparency from the Air Force around PFAS clean-up
    efforts. Can you share an update on implementation of this new policy?
    When will this data be available to community members?
        Answer. The Department of the Air Force (DAF) is committed to
    transparency at Pease Air National Guard Base (ANGB). To implement the
    new DoD policy, we are publishing reports that will contain all
    publicly releasable PFAS sampling data. To communicate this, the DAF
    convened a Restoration Advisory Board (RAB) meeting at Pease ANGB on
    April 9, 2024, and announced a comprehensive Informal Technical
    Information Report will be finalized in May 2024, and made available to
    the RAB and to community members on the RAB website.
        The DAF has taken additional time to develop the report to ensure
    we carefully review the information and redact any personally
    identifiable information not consented for release by the landowner(s).
    The report will contain all sampling data collected during the ongoing
    PFAS Remedial Investigation and include comprehensive maps and figures
    that depict the nature and extent of PFAS releases on and off- site at
    Pease ANGB.
        Question. On April 10, 2024, the Environmental Protection Agency
    (EPA) finalized a National Primary Drinking Water Regulation (NPDWR)
    establishing legally enforceable levels, called Maximum Contaminant
    Levels (MCLs), for six PFAS in drinking water. There are 11 private
    wells at Pease that, to date, were below New Hampshire's MCLs. Although
    these wells are now above the EPA's new standards. Please advise how,
    and on what timeline, the Air Force will address wells that fail to
    meet the new MCLs.
        Answer. The Department of the Air Force (DAF) has been preparing to
    implement the EPA MCL final rule for both our on-base DoD drinking
    water systems and the response action sites within our cleanup program.
    Currently, the DAF does not have a specific timeline to address wells
    whose PFAS concentrations exceed the MCL limits set forth in the final
    rule, but we will keep Congress updated on our efforts at Pease Air
    National Guard Base. Overall, we remain committed to fulfilling our
    PFAS-related cleanup responsibilities expeditiously and will take
    necessary actions to implement the final rule at cleanup sites in
    accordance with the Comprehensive Environmental Response, Compensation,
    and Liability Act (CERCLA). The DAF reviewed PFAS sampling results and
    will be expanding existing cleanup investigations, assessing
    ``background'' levels of PFAS, and providing drinking water treatment
    for impacted off-base wells. Since a significant number of additional
    off-base wells will require treatment in light of the final rule, the
    DAF will prioritize locations where known PFAS levels in drinking water
    attributable to the DAF are the highest. To expedite implementation of
    more enduring solutions, the DAF will focus on installing treatment
    systems, such as drinking water filters fitted for an entire home.
        Question. The National Guard Bureau's decision to level Air
    National Guard units will have a large impact across the country,
    including at Pease Air National Guard Base in New Hampshire. I have a
    lot of concerns about the impact of this decision on Guard members' pay
    and benefit and on the ability of U.S. Transportation Command to
    utilize Pease and the Guard presence there to continue operations. Can
    you advise on your understood impacts that this decision will have on
    Air Force operations? Do you believe the Air Force was adequately
    consulted on this decision?
        Answer. The Air National Guard full-time leveling process ensured
    all units with similar mission sets received the same funding
    percentages to meet mission requirements. Over the last 30 years, unit
    conversions and programmatic actions resulted in an imbalance of funded
    full-time percentages across like units funded under the same program
    type. The National Guard has agreed to delay implementation in New
    Hampshire by 1 year to fully address concerns.
                                     ______

               Questions Submitted by Senator Christopher Murphy
        Question. First, I want to start at the outset by thanking you for
    the support reflected in your FY25 budget request for the F135 Engine
    Core Upgrade (ECU) for the F-35. Before last year's FY24 budget
    request, we all know that the Department of Defense deliberated
    thoroughly and carefully over options to improve the capability of the
    F135 engine to meet F-35 Block 4 requirements. The decision to move
    forward with the ECU to the F135 over trying to integrate AETP was
    deemed the most cost effective and safest solution for our
    servicemembers, and I thank you for keeping to that commitment in the
    FY25 request.
        In this vein, I'm quite pleased by the progress made over the last
    year to advance the F-35's F135 ECU. As you know, ECU meets all the
    established requirements and is being designed to be compatible with
    any of the power and thermal management system (PTMS) options that are
    under development and could be chosen. Maintaining engine commonality
    across the full fleet of F-35s--in the U.S. military and across allied
    militaries--is one major benefit of the F135 ECU. For another, ECU will
    deliver $38 billion in life cycle cost savings key to the overall
    program and to ensuring funding is freed up to increase fleet sizes and
    weapons capacity in the future. In all these ways, ECU is good for the
    warfighter and for the taxpayer.
        However, it's worth emphasizing that these benefits and savings are
    not realized until ECU enters service. To meet the timeline to deliver
    ECU by 2029, the acquisition strategy must stay sound, and the next
    development contract award must be made promptly. With that in mind,
    I'd like to hear an update from the Department's engagement on ECU, and
    specifically, the status of the ECU development contract. Are you
    committed to ensuring that the ECU development contract is awarded
    without delay to keep the program on track?
        Answer. The F-35 Joint Program Office Business Case Analysis on
    propulsion modernization determined an F135 Engine Core Upgrade (ECU)
    restores engine life for all three F-35 variants at the lowest cost.
    These findings informed DoD's decision to move forward with the F135
    ECU. The F-35 will require modernization to the power thermal
    management system beyond Lot 22 which delivers in Calendar Year 30. The
    Air Force is working with the other Services and the Joint Program
    Office to establish requirements to direct modernization development.
    ECU risk reduction design efforts have progressed, and service
    propulsion leaders are working closely with the Joint Program Office to
    develop and refine subsequent phases of the ECU acquisition strategy.
        Question. Given the Sentinel program will be delayed for at least 2
    years--and potentially longer--are there any new steps will be
    necessary to sustain the Minuteman III (MMIII) missiles to hedge
    against this increased risk? Is there an amount of delay in the
    Sentinel program beyond which there will be no choice but to take
    additional steps to sustain or extend the life of MMIII missiles?
        Answer. The Air Force continues to invest in modernizing aging and
    obsolete components of the Minuteman III system to ensure the land leg
    of the nuclear triad is a ready and reliable nuclear deterrent. The
    FY25 President's Budget request allocates approximately $1 billion per
    year to Minuteman III sustainment activities (i.e. RDT&E, Procurement,
    O&M) and the Air Force will continue to identify additional sustainment
    efforts required in future budget requests.
        In the FY25 President's Budget request, the Air Force is initiating
    four new Minuteman III sustainment programs, including Stage One
    Battery Replacement, Depot Reentry Support Equipment, Little Mountain
    Test Facility Updates, and Missile Transport Equipment.
        The Sentinel schedule and alternatives are being considered as part
    of the ongoing Nunn-McCurdy assessment. It would be premature to
    provide a Sentinel or Minuteman III timeline prior to the conclusion of
    the Nunn-McCurdy review process.
        Question. I understand you had to make difficult budget decisions
    in formulating the fiscal year 2025 budget request. But in my view, the
    ability to rescue our military personnel who come into harm's way has
    to remain a top priority, no matter the budgetary environment. It's a
    moral imperative in our military to ``leave no one behind.'' We must be
    clear in our commitment to protecting the men and women who risk their
    lives to protect. This is why I remain concerned about the service's
    decision to terminate the Combat Rescue Helicopter program, which has
    been delivering much-needed modernized aircraft to replace the aging,
    worn-out UH-60G Pave Hawks.
        The Pave Hawks have been in service since the early 1980s, and most
    are pushing well past their 7,000- hour service lives. With elevated
    maintenance demands and general functionality concerns, the HH-60G
    fleet is experiencing readiness rates half of what they should be--far
    below what's needed to support combat operations safely. In addition,
    the Air Force is retiring Pave Hawks significantly faster than current
    procurement of the new HH-60W. The upgraded ``Whiskey'' model offers a
    clear solution to this problem, delivering our search and rescue
    squadrons better fuel capacity, range, navigation tools, and defensive
    systems--all critical upgrades for making rescues safely and
    effectively.
        With 10 Combat Rescue Helicopters added by Congress in the fiscal
    year 2024 defense bill, my understanding is that the Air Force is now
    set to field just 95 aircraft to accomplish a mission for which the
    original program of record required 113 aircraft. That's just over 80
    percent of the original search and rescue mission requirement. And when
    we're talking about the lives of U.S. personnel stranded and in danger,
    I'm not comfortable with anything less than 100 percent preparation.
    Without a full, modernized combat rescue helicopter capability, how
    does the Air Force plan to address this looming shortfall in its search
    and rescue capability?
        Answer. The Air Force remains committed to supporting the Joint
    Force by maintaining the only dedicated DoD Combat Search and Rescue
    force. However, the capability limitations of the HH-60W against
    current and future threats cannot be mitigated with additional
    capacity. With existing Air Force and Joint Force capacity for
    Personnel Recovery, the Air Force position is to terminate additional
    procurement for the HH-60W program. Procuring additional HH-60W
    aircraft diverts limited resources away from higher priority NDS-
    focused modernization needs.
        Question. I've heard the arguments about the changing threat
    environment in Europe and the Pacific, as well as the challenges new
    air defenses pose to helicopters. I understand these concerns. But I
    still struggle to wrap my head around the Air Force's current plan not
    to fully equip itself for potential future combat rescue missions--in
    which stranded servicemembers' lives could hang in the balance.
        Even though the demands on rescue and search squadrons are
    changing, the response shouldn't be throwing up our hands and
    abandoning our combat rescue capability. Instead, we should be
    committing to upgrading our capability to meet the changing environment
    and fully prepare those tasked with critical combat and rescue
    functions. To that end, I'm glad the Air Force has again requested
    funding to upgrade HH-60W capabilities, including protection from GPS
    jamming, expanding secure Satellite Communications, and improving the
    ability to operate in Degraded Visual Environments such as blowing
    dust, snow, sand, and fog.
        Can you please speak to how these investments in CRH development
    will enable our combat and rescue missions to meet current, new, and
    emerging threats?
        Answer. The HH-60G is currently being replaced by the new HH-60W
    aircraft coming off the production line. The HH-60W fleet will include
    meaningful upgrades to deliver capability to conduct day, night, and
    marginal weather Combat Search and Rescue (CSAR) operations to recover
    isolated personnel in hostile or permissive environments. The Air Force
    CSAR enterprise will rely on the HH-60W helicopter, HC-130J aircraft,
    and Guardian Angel teams for the foreseeable future.
        At the currently planned procurement levels, Air Force can meet the
    demand for high-end CSAR capability within acceptable levels of risk.
    This will require Combatant Commanders to account for risk in highly
    contested environments and utilize other Joint assets in areas of
    responsibility that do not require dedicated high-end CSAR coverage,
    thereby preserving Air Force CSAR forces.
        The Air Force remains committed to supporting the Joint Force by
    maintaining the only dedicated DoD CSAR force. As the lead Major
    Command, Air Combat Command funds modernization and upgrade efforts to
    improve the survivability and effectiveness of the current force to
    maximize existing capabilities until new assets and capabilities can be
    developed.
        We are monitoring several joint efforts under the Future Vertical
    Lift program and anticipate an Air Force analysis of alternatives
    effort to start in FY30. Beyond recovery platforms, current investments
    in the Department of the Air Force's Operational Imperatives will
    modernize other essential components of the CSAR architecture by
    delivering Space and Cyber superiority, information and communications
    modernizations, and improvements in autonomous systems and force
    survivability.
        Question. I appreciated the Department of Air Force's (DAF) and the
    Director of the Air National Guard's (DANG) strategic basing decision
    in September 2023 to select the 103rd Airlift Wing in Hartford, CT, as
    a preferred location to replace eight C-130H models with eight C-130J
    models. This decision stands to bolster the 103rd Wing's critical
    mission across humanitarian operations, domestic support, and
    deployments abroad.
        That said, I understand that the Air Force and Air National Guard
    leadership are rolling out its sequential order for the basing of C-
    130Js, and I want to be sure the DAF and DANG are fully considering the
    advantages of basing C-130Js with the 103rd Airlift Wing as soon as
    possible. For one thing, my understanding is that the 103rd Airlift
    Wing is the only location of the four preferred locations selected in
    the fall that has zero initial costs for C-130J bed down, without any
    military construction requirements associated with the C-130J
    conversion.
        Can you please share in as much detail as possible the DAF and
    DANG's analysis and rationale for its sequencing decisions for the Air
    National Guard (ANG) C-130H Recapitalization to C-130J Main Operating
    Base (MOB) 7-10? Can you please share in as much detail as possible the
    timeline for basing at MOB 7-10, according to the approved basing
    action?
        Answer. The Department of the Air Force conducted analysis for the
    fielding of C-130J MOB 7-10 to maximize C-130J force presentation to
    Combatant Commanders with minimal disruption to Air Force Force
    Generation availability while minimizing upcoming C-130H weapons system
    sustainment costs. This phasing ensures C-130H units can convert to the
    C-130J and immediately cover scheduled taskings. The expected delivery
    dates are based on current production schedule. For Main Operating Base
    (MOB) 7, the first aircraft will arrive at the 120th Airlift Wing
    (Great Falls, MT) in Quarter (Q) 2 of Calendar Year (CY) 26 with the
    last aircraft arriving Q1 of CY27. For MOB 8, the first aircraft will
    arrive at the 182nd Airlift Wing (Peoria, IL) in Q2 CY26 with the last
    aircraft arriving Q1 CY27. For MOB 9, the first aircraft will arrive at
    the 133rd Airlift Wing (Minneapolis, MN) in Q2 CY27 with last aircraft
    arriving Q1 CY28. Lastly, for MOB 10, first aircraft will arrive at the
    103rd Airlift Wing (Hartford, CT) in Q2 CY27 with the last aircraft
    arriving Q1 CY28.
        Question. I understand there has been some pressure on the Air
    Force to reduce the size of the total force C-130 fleet, which has
    reportedly raised questions about the need to reduce the size of the
    Air National Guard's C-130 units' primary aircraft authorized (PAA)
    from eight aircraft to six aircraft. This would leave Air National
    Guard units, in Connecticut and across the country, ill-equipped to
    meet their requirement of being able to project a lead four-ship Unit
    Type Code (UTC) into the overseas operational environment and be able
    to meet domestic response and homeland defense requirements. Can you
    please describe the Air Force's thinking on this issue? Is the Air
    Force committed to ensuring Air National Guard units preserve eight PAA
    and their ability to meet their mission requirements?
        Answer. There is no pressure to reduce inventory and the Department
    of the Air Force (DAF) plans to maintain a fleet of 271 C-130 aircraft
    through 2029 and each Air National Guard unit will remain at eight
    Primary Aerospace Vehicles Authorized. The Air Force does not support
    additional procurement of C-130J aircraft in the FY25 FYDP. Given
    remaining C-130H fleet service life of more than 25 years, further
    recapitalization of C-130H aircraft with C-130J aircraft is unnecessary
    and not desired. Retaining additional C-130H aircraft or further
    congressionally driven recapitalization with C-130J diverts limited
    resources away from higher priority NDS-focused modernization needs,
    impacts DAF's ability to adapt technological advances for intra-theater
    lift, and could jeopardize U.S. victory in future conflict.
        Question. We have seen a significant increase of activity by our
    adversaries in space in recent times, including a Russian satellite
    spawning other satellites and a significant increase in missions from
    China to include being the first to land on the far side of the moon.
    What efforts do we have in place to monitor this? To that end what are
    we doing to monitor and obtain data generated from the science
    community that may provide beneficial data to the DoD, specifically on
    the far side of the moon?
        Answer. The United States Space Force operates and leverages the
    world's most extensive and capable space surveillance network. This
    network is primarily focused on our primary operating environment, up
    to and including Geosynchronous Earth Orbit. With that said, there are
    16 DAF efforts that have partial funding across a range of efforts to
    enhance our current capabilities and expand our space domain awareness
    into the cislunar region, a volume of space that is more than 2,700
    times larger than the volume in which DoD traditionally operates. The
    near-term focus is improving cislunar situational awareness
    capabilities by enhancing and integrating existing ground sensors.
        The Air Force Research Laboratory plans to undertake a series of
    space flight pathfinder demonstrations advancing the technologies for
    improving awareness in cislunar space to include propulsion
    technologies, mobility, navigation and timing, and space domain
    awareness strategies. The Space Force will continue to investigate
    opportunities for future focused investments in line with the National
    Defense Strategy, as well as DoD and Space Force strategies.
                                     ______

              Questions Submitted by Senator Christopher A. Coons
        Question. The Delaware Air National Guard does critical work in
    supporting Delaware, and C-130Js are a critical means of supporting the
    Guard's work. Delaware is one of four units that have yet to receive J-
    models. Does the Air Force support the continued procurement of C-130J
    models for the Air National Guard until all qualifying Air Guard units
    are equipped?
        Answer. The Department of the Air Force (DAF) plans to maintain a
    fleet of 271 C-130 aircraft through 2029. The Air Force does not
    support additional procurement of C-130J aircraft in the FY25 FYDP.
    Given remaining C-130H fleet service life of more than 25 years,
    further recapitalization of C-130H aircraft with C-130J aircraft is
    unnecessary and undesired. Retaining additional C-130H aircraft or
    further congressionally driven recapitalization with C-130J diverts
    limited resources away from higher priority NDS-focused modernization
    needs, impacts DAF's ability to adapt technological advances for intra-
    theater lift, and could jeopardize U.S. victory in future conflict.
        Question. A key focus of mine remains FLIGHT Act implementation,
    which aims to increase the number of diverse U.S. military pilots by
    supplementing flight training costs for ROTC members enrolled at HBCUs.
    I have worked hard each year since the FLIGHT Act's passage to ensure
    this subcommittee provides resources to implement this law. I
    understand that the FLIGHT Act spend plan includes funding for at least
    60 ROTC cadets to receive reimbursement for flight training each year,
    but that much less have received funding. Can you provide updates on
    FLIGHT Act implementation and details on your plan to get more FLIGHT
    Act funding to a greater number of cadets at HBCUs?
        Answer. In FY23, the Department of the Air Force (DAF) secured
    Office of the Secretary of Defense approval for a five-year, $25
    million implementation plan which, if fully executed, will directly
    support approximately 1,700 Air Force ROTC cadets across 274 minority
    serving institutions. This pilot program establishes additional flight
    awareness, training, certification, and professional pilot scholarship
    initiatives.
        Continuing resolutions in FY23 and FY24 prevented the DAF from
    fully executing the program. In FY23, we were able to execute
    approximately $2.3 million. We anticipate similar execution in FY24,
    which will enable us to fund the ``You Can Certify'' Program--100
    Cadets, ``You Can Fly'' Program--1,024 Cadets, and FLIGHT Act
    Reimbursement Costs--Reimbursed as Requested (four cadets to date).
        We value continued Congressional support for this program. A more
    defined four-to-five-year funding commitment would help us create
    professional pilot scholarships. This, combined with timely
    appropriations, will allow us to implement the program to full effect.
        Question. The Delaware Congressional delegation is very proud of
    Dover Air Force Base's work, including through Bedrock Innovation Lab.
    How is the Air Force working to expand programs like the Bedrock
    Innovation Lab around the country, and how can Congress support your
    efforts?
        Answer. Bedrock Innovation Lab is one of the leading SPARK Cells
    for Air Mobility Command. The Air Force supports 14 other Innovation
    Scaling Cells specifically designed to build innovation networks at
    operational levels. There are also over 105 SPARK Cells at tactical
    levels, supporting networks at the wing and base levels. Data and
    innovation from these activities are shared, scaled, and incorporated
    across the Department of the Air Force (DAF). SPARK Cells inform
    progressively larger investments with Airmen and Guardian innovators as
    they show promise and demonstrate success, mitigate risk, and control
    costs. Workforce development (e.g., fellowships, internships, training)
    activities are also used to support transition to the warfighter,
    increasing impact to the DAF writ large. The DAF plans to continue to
    support Bedrock and other SPARK Cells using Squadron Innovation Funds
    through the Air Force O&M account.
                                     ______

                Questions Submitted by Senator Susan M. Collins
        Question. Secretary Kendall has said the Department of the Air
    Force was forced to make hard choices under the Fiscal Responsibility
    Act top line set for the Department in fiscal year 2025. For example,
    twelve fighter aircraft were cut from the FY25 budget at a time when
    the Air Force is already retiring more aircraft than it is buying. The
    Air Force has up to 514 aircraft grounded at any given time due to a
    lack of spare parts, and funding to address that problem was identified
    as an unfunded priority rather than included in the budget request.
    General Allvin, please describe the area or capability where you feel
    that you are accepting the most risk given the top-line constraints
    this year.
        Answer. The budget request balances current and future risk. Both
    are of concern. The greatest risk is maintaining legacy force structure
    while simultaneously pursuing modernization which forces reductions in
    previously planned procurement and minimally acceptable readiness
    accounts. We are stretched thin, and you are seeing the result of the
    Fiscal Responsibility Act topline impacts in the decisions that were
    made in the FY25 President's Budget request. The Air Force Foundational
    Accounts that our current readiness rests upon (i.e. Weapon System
    Sustainment, Flying Hour Program, and Military Construction) are funded
    at lower rates than we would prefer. We are forced to work within our
    budget to modernize while also remaining compliant with statutory
    restrictions related to the size of our force. This results in the
    reduced procurement such as F-15EX and MH-139 aircraft are lower than
    desired foundational account funding.
        Question. Secretary Kendall has said the Department of the Air
    Force was forced to make hard choices under the Fiscal Responsibility
    Act top line set for the Department in fiscal year 2025. General
    Saltzman, please describe the area or capability where you feel that
    you are accepting the most risk given the top-line constraints this
    year.
        Answer. Given the rapid advance of adversary space capabilities,
    our greatest concern is time. We have added risk by delaying or
    reducing capabilities across several capability areas, particularly
    counterspace. We must have resilient assets that will survive an attack
    and provide the services that are so important to the rest of the Joint
    Force, as well as protect the rest of the Joint Force from space-
    enabled attacks. We made hard choices which impacted our ability to
    pursue comprehensive SATCOM resiliency initiatives and critical kill-
    chain architecture efforts. The additional risk delays efforts to
    provide system resiliency, deterrence, and critical space capabilities
    to gain and maintain U.S. space superiority for the foreseeable future.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
        Question. Secretary Kendall, a few years ago you attributed the Air
    Force's decision to reduce its acquisition of HH-60W's to the changing
    threat environment, as the service looks toward more advanced
    adversaries like Russia and China. While I understand that a conflict
    with China would look drastically different than our operations in the
    middle east over the past 20 years, 1) rescues will still be required
    and 2) we must also be prepared for potential conflicts elsewhere that
    consist of a similar environment to that of the recent past.
        Mr. Secretary, by the Air Force reducing its rescue capacity, does
    the service run the risk of being caught flat footed as it relates to
    the ability to rescue our servicemembers in harm's way? Are there any
    plans to increase capacity through additional acquisition? It doesn't
    appear to be addressed in the FY25 budget submission.
        Answer. At the currently planned procurement levels, the Air Force
    can meet demand for high-end Combat Search and Rescue (CSAR) capability
    within acceptable levels of risk. This will require Combatant
    Commanders to account for risk in highly contested environments and
    utilize other Joint assets in areas of responsibility that do not
    require dedicated high-end CSAR coverage, thereby preserving Air Force
    CSAR forces.
        The Air Force continues to invest in modernizing the currently
    fielded force, Isolated Personnel survivability, communications
    architecture, and integration with Allies and Partners. Investments in
    the Operational Imperatives will modernize other essential components
    of the CSAR architecture by delivering Space and Cyber superiority,
    information and communications modernizations, and improvements in
    autonomous systems and force survivability.
        Question. As part of the acquisition strategy for Phase 3 of the
    National Security Space Launch (NSSL) program, Lane 2 will include
    annual Launch Service Support (LSS) funding to cover National Security
    Space-unique costs. These costs include fleet surveillance, support to
    Government mission assurance, NSS-unique infrastructure, and complex
    security and integration requirements. The FY25 President Budget
    requests $476 million for LSS within NSSL Procurement, up from $291
    million requested and appropriated in FY24. This increase appears to
    support the inclusion of a third launch provider into Lane 2.
        Secretary Kendall, what details can you share about how you intend
    to allocate these LSS funds in FY25? If three providers are awarded in
    Lane 2 of NSSL Phase 3, do you intend to equally allocate the LSS
    funding equally among the awarded providers? Why is the $185 million
    increase from FY24 to FY25 so important to preserve?
        Answer. The FY25 Launch Service Support (LSS) request is based on
    the government's estimate and will be updated based on final LSS
    allocation in the awarded Phase 3, Lane 2 contracts. The difference
    between FY24 and FY25 LSS budget requests is largely driven by
    transition from Phase 2 to Phase 3 launch procurement, increased launch
    rates, associated systems engineering/integration, mission assurance,
    and Phase 3 award fees.
        Question. you know, the Air National Guard has proposed a leveling
    process to reconfigure the manning of its units across the country. The
    updated unit manning documents reduced Active Guard and Reservists
    (AGRs) positions that support Ballistic Missile Defense, Air
    Sovereignty, Search and Rescue, and Aerospace Alert missions in Alaska.
    Can you explain why having certain Air National Guard positions staffed
    with AGRs is critical to enable the active-duty Air Force's efforts to
    power project into the Indo-Pacific and defend the homeland?
        Answer. The Air National Guard (ANG) full-time leveling process
    ensured all units with similar mission sets received the same funding
    percentages to meet mission requirements. Over the last 30 years, unit
    conversions and programmatic actions resulted in an imbalance of funded
    full-time percentages across like units funded under the same program
    type. No resources were moved out of the Ballistic Missile Defense, Air
    Sovereignty, Search and Rescue, and Aerospace Alert mission sets. The
    resources were realigned within the same missions, providing funding
    equity across those same areas across the ANG enterprise. The National
    Guard has agreed to delay implementation in Alaska by 1 year to fully
    address concerns.
        Question. Can you explain why having certain Air National Guard
    positions staffed with AGRs is critical to enable the Space Force's
    efforts to defend the homeland?
        Answer. The Air National Guard in Alaska performs a space mission
    requiring continuous 24/7 operations which requires a particular type
    of duty status to defend the homeland. The National Guard has agreed to
    delay full-time leveling implementation in Alaska by 1 year to fully
    address these concerns.
        Question. There is a $815 million increase for NGAD development is
    in your most recent budget submission, with a total commitment of just
    about $28.5 billion over the next 5 years. Understandably so, most if
    not all of this is for development and test of the air vehicle and
    mission systems themselves, to include Collaborative Combat Aircraft.
    But there will likely be infrastructure costs required for basing as
    well, as Alaska experienced and embraced when ramping up for the
    arrival of the F-35s at Eielson in the 2016-2020 timeframe. General
    Allvin, could you speak a little bit to the infrastructure
    considerations and costs that might be associated with and required for
    NGAD basing?
        Answer. In general terms, infrastructure required for fighter
    missions include squadron operations facilities, simulator buildings,
    maintenance hangars, back shops, weather shelters, ramps space, and
    munitions storage. Overall costs are assessed during the Department of
    the Air Force strategic basing process, which takes into consideration
    existing facilities, the ability to accommodate new requirements
    through renovations, optimization of space, and quality of life
    factors, as well as any new construction to fulfill unmet requirements
    for the new mission. Additional details on the basing requirements for
    NGAD, including funding profiles, can be provided in the appropriate
    classification setting.
        Question. We maintain competitive advantages in many aspects of
    conflict, but less so in hypersonics. As we begin to shift focus from
    pure development to rigorous field testing, we understand that testing
    requires an extensive range, with the ability to track and record data
    over 1,000+ miles. These ranges are difficult to find, as you don't
    want to test missiles overpopulated regions, for obvious reasons.
    Alaska provides the only location capable of supporting both short- and
    long-range hypersonic weapons testing within the United States, with
    the ability to track weapons over long distances using ground-based
    stations along the Aleutian Test Range, vs more costly tracking methods
    utilizing ships and aircraft to track flight test data. General Allvin,
    can you speak a little more to the environmental requirements for
    hypersonic testing, what the Air Force looks for when selecting test
    ranges for hypersonics, and whether the Air Force has evaluated the
    Pacific?
        Answer. The Air Force, along with the Office of the Secretary of
    Defense (OSD) Test Resource Management Center (TRMC), notionally
    examines key criteria including weather/meteorology/atmospherics,
    terrain, sea state, capabilities for telemetry/tracking, safety, end-
    game scoring, operational security, cost, impact to commercial
    aviation, treaty impacts, and range availability during selection of a
    test range for hypersonics. OSD TRMC, which falls under the OSD
    Research and Engineering Enterprise, is the DoD lead with oversight
    over all DoD hypersonics test infrastructure investments in the
    Department. The TRMC hypersonics investment strategy identified cost
    and schedule efficiencies from using mobile, relocatable
    instrumentation to enable the Department to rapidly test hypersonics at
    multiple locations, including the Pacific. The Air Force leverages TRMC
    as the DoD hypersonics test investment lead and is aligning our test
    investment plans to the TRMC strategy by investing in terminal
    weaponineering, mobile telemetry, and overhead tracking systems so we
    can quickly and affordably test hypersonics in remote operational
    scenarios.
        Question. This committee was successful in securing over $200
    million in additional FY24 funding for radar upgrades and sustainment
    in Alaska; radars that, as mentioned previously, serve to detect
    adversarial threats, and protect the homeland. We are extremely proud
    of the work our Space Force Guardians do in Alaska as they monitor the
    horizons from Clear Space Force Station. General Saltzman, what are
    some of the Space Force's highest priorities for operations in Alaska,
    and the Arctic as a whole? Please touch on one to two of the highest
    priorities.
        Answer. The Space Force priorities for the Arctic include
    maintaining or upgrading ground-based radars to protect the homeland.
    For Alaska, this includes Long Range Discrimination Radar as it
    transfers from the Missile Defense Agency to the Space Force in FY25,
    Upgraded Early Warning Radar (UEWR) at Clear Space Force Station, and
    maintaining Cobra Dane as a capability in transition.
        In the greater Arctic region, Space Force priority capabilities
    include the Pituffik UEWR and providing secure communication in the
    Arctic region with Enhanced Polar Systems-Recapitalization to extend
    satellite communications for U.S. polar forces. Other priorities
    include augmenting the aging Defense Meteorological Satellite Program
    with Weather System Follow-on-Microwave, environmental Monitoring of
    the Arctic, in which much of Alaska resides, and measuring sea ice and
    the warming of the Arctic region, subsequently protecting new/emerging
    shipping lanes/access to the region.
        Question. The United States Space Force recently stood up the
    Operational Test and Training Infrastructure (OTTI) Program Executive
    Office in Space Systems Command. With the increase of adversarial space
    capabilities, training our guardians has never been more important and
    being able to truly measure our performance in how our systems operate
    in various scenarios. However, as a nation, we do not have a ``space
    range'' for training like other services do. How is the Space Force
    planning for and prioritizing a space range?
        Answer. Although co-located with Space Systems Command, the
    Operational Test and Training Infrastructure (OTTI) Program Executive
    Officer (PEO) and the supporting Integrated Program Office report
    directly to the Space Acquisition Executive. It is the OTTI PEO
    responsibility to acquire and sustain the test and training
    infrastructure necessary for combat credible force readiness in a
    contested environment. This generally includes modeling and simulation
    equipment, ranges, and weapon system training devices.
        In 2022, the Space Force established the National Space Test and
    Training Complex (NSTTC) in Colorado Springs, CO, to unify operations
    of the Electromagnetic Range, Orbital Warfare Range, Cyber Warfare
    Range, and Digital Warfare Environment.
        Each of the ranges and the digital environment are operated by
    units dedicated to providing customers with a safe and secure
    environment supporting test, training, exercise, and experimental
    activities in the varied space and cyber domains. Some units were
    established as early as 2004 and others were recently established to
    meet emerging and/or more mature threats as the space domain was no
    longer a sanctuary for US operations. Current initiatives include new
    or modernized range environments, equipment and instrumentation
    enabling high end, advanced testing of new capabilities.
        As the DoD's only space ranges, the NSTTC supports customers from
    all services and many agencies, enhancing specialized service and joint
    all-domain training.
        Question. The Space Situation Awareness program, received $372.8
    million in FY24 and then a $110.7 million program increase for $483.6
    million in the president's FY25 budget request. However, the space-
    based Space Domain Awareness (SDA) project received $115.6 million in
    FY24, only a $62.4 million program increase in the president's FY25
    budget request for a project total of $178.1 million. Given growing
    adversarial space-based threats and an influx of resident space
    objects, and the commercial satellite industry's growing in-space SDA
    capabilities, how is the Space Force prioritizing the acquisition of
    in- space SDA capabilities?
        Answer. Acquiring a resilient Space Situational/Domain Awareness
    architecture comprised of space-based (i.e., in- space), ground-based,
    and commercial capabilities is a priority to the Space Force. The Space
    Force leverages ground and space-based systems to discover, track,
    characterize, warn, and fuse information within the space domain. In
    FY25, we are investing $1.19B (4.1% of our total budget) in these
    critical Space Domain Awareness (SDA) capabilities.
        Space Force SDA architecture leverages partnerships and data across
    the national security space enterprise and commercial sources to ensure
    we have a resilient, integrated, and diverse sensor architecture. The
    partnerships will invest in efforts such as the Joint Commercial
    Office, the Commercial Space Operations Office, and the SDA Technology
    Accelerator Program laboratory, consistent with the recently published
    Space Force Commercial Space Strategy.
        The Space Situation Awareness Program Element consists of three
    acquisitions: the Deep Space Advanced Radar Capability (DARC), the
    Ground-Based Optical Sensor System (GBOSS), and SILENTBARKER. However,
    the Space Situation Awareness Program does not contain all Space
    Situational Awareness and Space Domain Awareness capabilities. DARC and
    GBOSS are ground-based systems that will track objects in deep space.
    SILENTBARKER is a Space Force-National Reconnaissance Office (NRO)
    space-based SDA program which aims to improve satellite threat
    intelligence and space situational awareness and its investment is
    shared between the Space Force and NRO. Therefore, the NRO portion of
    the investment is not included in the Space Situation Awareness Program
    Element.
                                     ______

                 Questions Submitted by Senator Lindsey Graham
        Question. It has come to my attention that the Reserve Component
    and the Active Component are struggling to agree on a plan to allocate
    funds to procure and maintain F-16 simulators for the Air National
    Guard. The South Carolina Air National Guard, which is stationed at
    McEntire Joint National Guard Base, is in the process of building a
    four-ship F-16 Mission Training Center to support the 169th Fighter
    Squadron. This specific $9.8 million MILCON project was requested in
    the FY22 budget and funded in the FY22 Omni. The indecision on how the
    funding of simulators will proceed could cause significant readiness
    impacts for both the Active and Reserve Components and result in wasted
    taxpayer dollars with the construction of an empty building.
        Do you commit to ensuring that taxpayer dollars will be well spent,
    and that readiness will be maintained by ensuring that F-16 simulators
    will be purchased and installed upon completion of the MILCON project
    at McEntire Joint National Guard Base and guarantee maintenance of
    these simulators for the future?
        Answer. Currently, the Air Force does not have plans to buy
    additional new simulators for McEntire.
                                     ______

                   Questions Submitted by Senator Jerry Moran
        Question. The Air Force was expected to request funding for the
    final aircraft in the BACN program of record in FY25. The FY24
    President's budget request projected $66.4 million for the aircraft
    plus $102 million for modifications. However, the FY25 President's
    budget requests $0 for the aircraft and $82.9 million for
    modifications.
        Did the operational requirement change since the FY24 budget was
    released? If so, please provide the analysis which led to this
    determination. How many airframes are required to meet the current
    operational requirement? What options exist to increase the operational
    availability and employment of the BACN platform?
        Answer. The Department of the Air Force (DAF) meets the current
    operational requirement of one BACN orbit in CENTCOM. Our final
    inventory objective is seven E-11A aircraft. We have three deployed
    aircraft and three aircraft stationed at Robins Air Force Base for
    training. To increase operational availability, the training mission is
    to receive an augmented flight simulator. At any given time, one
    aircraft is expected to be undergoing maintenance on a rotational
    basis.
                                     ______

              Questions Submitted by Senator Shelley Moore Capito
        Question. In a response that was provided to my office regarding
    the Block 8.1 upgrades for C-130J units in June 2023, the Air Force
    noted that the Mobility Air Force fielding plan, approved in 2015,
    would upgrade one unit at a time. Are you confident in the Air Force's
    ability to operate in a potential conflict in a contested environment
    with 25 percent of the fleet missing this upgrade for another five to 8
    years? Would the Air Force consider updating the fielding plan to
    incorporate National Guard and Reserve aircraft into the modification
    timeline?
        Answer. The Block 8.1 modification includes Tactical Datalink
    (Link-16) and many other upgrades. Block 8.1 is incorporated in
    aircraft production lines. All Air Force aircraft starting with FY20
    Congressional adds will be delivered in a Block 8.1 configuration. The
    165th Airlift Wing received C-130Js in Block 8.1 configuration from the
    production line in January 2024. There are 48 congressionally added C-
    130J aircraft between FY20 and FY23. The Air National Guard (ANG) is
    expected to receive 40 Block 8.1 C-130Js directly off the production
    line by Q2 FY28.
        The Air Force is confident our fielding plan for Block 8.1
    installations will meet the needed capacity for operations in a
    contested environment. In FY25, 14 additional Active-Duty C-130Js will
    upgrade with Block 8.1, bringing the fleet total to 79 Block 8.1
    aircraft by the end of FY25. Older C-130Js in the Air Force Reserve and
    ANG are projected to begin upgrade in FY28.
        Question. Only 60% of the Air National Guard's C-17 fleet has been
    modernized with the Extended Range Fuel Tank. Would the Air Force
    consider reassignment of some extended range C-17A aircraft from the C-
    17 training schoolhouse to units flying operational missions in support
    of Air Mobility Command that require extended range capability?
        Answer. The Formal Training Unit trains and educates students
    across the Active Duty, Air National Guard (ANG), and Air Force Reserve
    (AFR). The Schoolhouse aircraft are rotated based on flying hours
    within the Active-Duty fleet. Extended Range (ER) aircraft are required
    at the schoolhouse to complete aircrew training and exposure/
    familiarization with the systems on ER aircraft.
        Only 164 of the 222 Air Force C-17s have ER fuel tanks, including
    four of the eight (50%) West Virginia ANG aircraft, 31 of the 50 (62%)
    total ANG aircraft, 69% total AFR aircraft, and 79% total Active-Duty
    aircraft.
        The Air Force attempts to manage the C-17 fleet with a Total Force
    lens, with Air Mobility Command (AMC) serving as the lead command for
    fleet management. Currently, neither Air Force Reserve Command (ARC)
    nor the ANG participate in the C-17 fleet management program, severely
    limiting AMC's ability to project fleet needs.
        As the lead command for the C-17 fleet, AMC must retain a requisite
    percentage of ER aircraft within Active-Duty units to accomplish daily
    training and operational missions, both planned and unplanned. The Air
    Force attempts to fill operational missions with Active Duty first,
    then ARC with participation. For this reason, the Air Force requires a
    higher ratio of ER tails in Active Duty versus ARC. From a Total Force
    perspective, we cannot transfer aircraft between components until we
    fleet manage as a Total Force enterprise.
        Question. Why has the Department of the Air Force submitted a
    legislative proposal to Congress that would relocate Air National Guard
    billets to the single component Space Force without notification to
    Governors as required under Title 32, Section 104 of U.S. Code?
        Answer. Section 924 of the FY24 NDAA directed a review of multiple
    courses of action with respect to the potential disposition of space
    functions currently executed by Air National Guard (ANG) units. During
    the review, the Office of Management and Budget (OMB) requested that,
    along with the final report, the Department provide a legislative
    proposal that would implement the recommended course of action.
        Additionally, during the interim briefing to the Congressional
    Armed Services Committees required by Section 924, committee staff
    requested technical drafting assistance in support of transferring ANG
    units with space functions into the Space Force. At the time of these
    requests, the legislative proposal was being finalized and staffed
    within the Office of the Secretary of Defense (OSD) as part of the DoD
    Legislative Proposal Process. The proposal was forwarded to OMB, who
    after reviewing the proposal, authorized OSD to transmit it to the
    committees on behalf of the administration.
        The Section 924 report transmitted to Congress explains the
    relative costs, benefits, and risks of each course of action. The
    Department will comply with all applicable legislation prior to the
    execution of any decision, as directed by Congress. Consultations with
    governors are now taking place.
        Question. Is it the opinion of the Department of the Air Force
    that, to allow current Air National Guard space operators to remain in
    the Reserve Component, new and separate systems for promotion,
    retirement, and personnel only serving the Space Force must be created?
    If yes, why must these processes that already exist in the Air National
    Guard be recreated?
        Answer. The FY24 NDAA Space Force Personnel Management Act (SFPMA)
    authorized the Space Force to develop an innovative personnel
    management system integrating Active-Duty Guardians and Air Force
    Reserve space professionals into a unified Service, offering full-time
    and part-time service options without establishing a traditional
    reserve component.
        Current Department of the Air Force human resource systems managing
    full-time members are not integrated with systems managing part-time
    members and require new personnel management processes and integrated
    systems. One of the efforts of SFPMA will be a systems evaluation for
    better integration of existing personnel processes and systems for
    part-time and full-time members within the Space Force.
        Should Congress make the determination to transfer covered space
    functions from Air National Guard (ANG) to the Space Force, the
    management of ANG personnel who voluntarily transfer would be managed
    the same way that the Space Force is currently managing the integration
    of the Air Force Reserve space professionals: primarily focusing on
    full-time participation/opportunities and then opening a transfer
    window for part-time opportunities. The new authorities granted by
    SFPMA will allow the service to talent manage to the individual, based
    on the Space Force needs.
        Question. Air National Guard data shows that most Air National
    Guard space operators do not intend to transfer to the single component
    Space Force. How does the Air Force intend to re-mission personnel who
    do not transfer within their states if space missions are relocated
    from the Air National Guard? What are the projected costs associated
    with that re-training?
        Answer. The United States Space Force (USSF) has not approached any
    Air National Guard (ANG) servicemembers nor presupposed Congressional
    decision on the future of these units, so it is premature to speculate
    on what ANG servicemembers would be offered and what their final
    decision would be regarding any voluntary transfers to the Space Force.
    As with all planning options, the Department of the Air Force would
    look at all aspects of the issue to ensure mitigation strategies and
    measures are in place to incentivize desired outcomes. The USSF is
    already largely responsible for the training and sustainment of the
    identified ANG units. While servicemember expertise is valuable, the
    USSF can and will manage transition risk, leveraging the experience to
    date as it already has with transitions from the other active duty
    Services (i.e. Air Force, Army, and Navy) based on Congressional
    direction. Additionally, the USSF experience with Air Force Reserve
    transfers is that, when given a choice, 80% of servicemembers are
    transitioning.

                              SUBCOMMITTEE RECESS

        Senator Tester. We will convene again, hearing from the
    Navy on April 16 at 10 a.m.
        The subcommittee stands in recess. We are adjourned.
        [Whereupon, at 11:22 a.m., Tuesday, April 9, the
    subcommittee was recessed, to reconvene at 10 a.m., Tuesday,
    April 16.]

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2025

                                  ----------

                            TUESDAY, APRIL 16, 2024

                                           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, Collins, Murkowski,
    Graham, Moran, Hoeven, and Boozman.

                             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 want to call this hearing to order.
        Good morning, everybody. Today we welcome Secretary Del
    Toro, Admiral Franchetti, and General Smith. Thank you for
    serving our Nation and for leading our Navy and Marine Corps. I
    look forward to discussing the 2025 budget priorities today.
        Admiral Franchetti, this is your first appearance before
    this subcommittee. I have enjoyed getting to know you over the
    recent months and we look forward to working with you
    throughout this process and moving forward.
        General Smith, this is also your first appearance in front
    of this committee. It is great to see you and I want to thank
    you for your service and I want to thank you for being here
    today.
        The fiscal year 2025 budget request of the Navy and Marine
    Corps is at $252.3 billion, excluding funds for military
    construction. This represents a 1.4 percent increase above
    fiscal year 2024-enacted levels.
        You received your fiscal year 2024 funding only a couple
    weeks ago, 6 months late, because Congress didn't do its job
    and get its work done on time. In my opinion, this is a
    disgrace. Our Nation continues to face real threats from China
    and Russia and Iran and terrorist groups.
        As we saw just this past weekend when Iran brazenly
    attacked Israel with hundreds of missiles, the world doesn't
    follow any congressional calendar.
        The Senate-passed national security supplemental includes
    $2.4 billion for the operations in the U.S. Central Command
    Area of Operations. That includes funds to replace interceptors
    fired in defense of our ships and of our allies in the region.
        It is long past time to get these funds signed into law. I
    believe the Supplemental was sent out in August of last year.
    We have allies and they're friends of ours. We've got countries
    that are fighting for democracy. Yet we have soldiers' lives
    that are at risk in the region. Yet we continue to fiddle and
    do Putin's bidding.
        It is long past time to get these funds signed into law and
    like I said, I would like the witnesses today to explain the
    impact of having to cash flow these operations from existing
    budgets.
        But as challenging as the Middle East situation is, the
    Number 1 threat to our freedom, the pacing threat remains to be
    China, and as I said before, China doesn't operate on
    continuing resolutions. So notwithstanding political headwinds
    and budget constraints, we will continue to work with my good
    friend Susan Collins and Chairman Murray to end this disastrous
    trend of CRs (continuing resolutions) and insert some certainty
    back into our budget cycle.
        To be clear, we have our work cut out for us. The
    bipartisan fiscal responsibility is the law of the land. It
    caps spending for both defense and non-defense programs. Last
    year, despite our efforts, we were not able to convince our
    colleagues to change those budget caps.
        Given the pressures on the budget, such as the impact of
    inflation, we need to modernize the nuclear Triad, rising
    personnel costs, and near and present global threats, and I
    might say and I've said it before, so this is not breaking
    news, I think we're in a more perilous time than has ever been
    in my lifetime, maybe with the exception of the Cuban missile
    crisis.
        It is imperative that we invest these dollars that we do
    have in a way that gets results that we want.
        I want to highlight a few areas that we need further
    discussion. The first is our people, our sailors, Marines, and
    civilians. The subcommittee had worked with the department to
    provide additional funds in recruitment and increase suicide
    prevention efforts. I would love to hear an update on that.
        Second is shipbuilding. Secretary Del Toro, you recently
    concluded a 45-day shipbuilding review and documented serious
    scheduling delays. The results are damning and I understand
    additional studies are now ongoing. I would love to hear about
    that.
        Third, the volatile global security environment that has
    driven a great sense of urgency and DOD (Department of Defense)
    attempt to field innovative technologies and solutions at scale
    as quickly as possible.
        We're always open to working with the Department of Defense
    to ensure the warfighter has the tools it needs to be
    effective. However, it cannot be ignored that programs
    initiated with expedited expedition authorities apparently
    suffer from the same costs, schedule, and technical issues as
    traditional programs do.
        The Navy is no exception. For example, the extra-large
    unmanned undersea vehicle is intended to fill an urgent
    requirement. Despite fabrication starting in 2019, here we are
    in 2024 with no operational assets. Icing on the cake, I now
    hear that the Navy is planning to sole source the follow-on
    effort and that begs the question of what message does that
    send?
        So before we entertain enacting the new budget acquisition
    authorities, I want to know how the Navy's going to improve its
    performance to ensure the capabilities we invest in actually
    reaches the hands of the warfighter without wasting taxpayer
    dollars.
        It is the role of Congress to ensure the taxpayer dollars
    are used in the most effective way possible to maintain
    American superiority and I look forward to continuing to work
    with you to make that possible.
        Once again, I want to thank you, all of you for your
    service to this country, but before your opening statements, I
    want to turn it over to Senator Collins for any remarks she
    would like to make.
        Senator Collins.

                     STATEMENT OF SENATOR SUSAN M. COLLINS

        Senator Collins. Thank you, Mr. Chairman.
        Let me begin my remarks by saying that I can't imagine a
    more timely hearing than this one, given Iran's deliberate
    attack against the sovereign nation of Israel with more than
    300 drones and ballistic missiles over the weekend and the
    Navy's truly heroic response in assisting Israel and our other
    allies.
        Impressively with the assistance of the United States,
    England and France and certain Arab states, Israel intercepted
    99 percent of these missiles. That includes more than 80
    incoming drones and at least six ballistic missiles that were
    taken down by American forces, including the crews of two Bath-
    built destroyers, the USS Carney, and the USS Arleigh Burke.
        Keep in mind that this is the same USS Carney that has been
    protecting U.S. and allied shipping in the Red Sea and has an
    amazing record of shooting down incoming missiles and drones
    fired by the Houthis. In fact, the U.S. Navy has thwarted
    numerous attacks from Iran's terrorist proxies and I do think
    we should remember the role of Iran in all of this, whether it
    is arming and equipping the Houthis, Hamas, Hezbollah. If you
    trace back, it always comes back to Iran.
        We place and appropriately so a lot of emphasis on China in
    our hearings as being the pacing threat, but we cannot forget,
    as the Chairman indicated, how dangerous the world is today and
    how many adversaries we have and Iran is certainly among them,
    and I think we need to remember that less than 1 percent of the
    weapons reached their targets this weekend in Israel does not
    in any way reflect a lack of effort or maligned intent by Iran.
        Rather, it is a testament to the service members who
    successfully deployed modern missile defense capabilities,
    capabilities that were developed over decades at the cost of
    billions of dollars, but we should never take for granted what
    it took to make this defense of Israel possible.
        If ever the naysayers had any doubt about the value of
    today's surface Navy, those doubts should be eliminated by the
    events of the last 6 months.
        Shifting to the budget focus of today's hearings, I will
    start by echoing the Chairman's comments by saying how great it
    is to see General Smith back and healthy with us today. I look
    forward to continuing to work together, although it appears
    that amphibious ships may not be quite as much work this year
    as they did last year, and I imagine that you're quite okay
    with that.
        To Secretary Del Toro and to Admiral Franchetti, thank you
    also for your extraordinary leadership and service.
        I also want to recognize the service and sacrifice of our
    Marines, our sailors, and their families. I'm proud also that
    so many Mainers have chosen to support the Navy through their
    critical work at Bath Ironworks, the Portsmouth Naval Shipyard,
    the plant run by Pratt and Whitney, the Naval Computers and
    Telecommunications Center in Cutler, and other locations and
    facilities around our State.
        There are many challenges confronting the Navy today but
    three are at the forefront of my mind. First, there are not
    enough sailors reporting for duty at sea. Second, shipbuilding
    is nowhere close to keeping pace with China's growing Navy, and
    third, the funding for the Navy's next generation fighter
    aircraft that is central to the Air Wing of the future has been
    delayed considerably in this budget request.
        Let me comment briefly on each of those comments. Last
    month the Navy reported a sea duty shortfall of nearly 22,000
    personnel. On average, 13 out of every hundred jobs on a ship
    are unfilled. These gaps at sea are growing worse. So I look
    forward to your assessment of the impact of the empty sea duty
    billets on operational readiness and on retention and
    recruitment.
        China's Navy continues its explosive growth from more than
    370 ships today to 435 by the year 2030 while this budget
    request results in only 294 U.S. Navy ships in the same
    timeframe, merely a single ship more than today's current
    fleet.
        In total, the request includes only six new ships for
    fiscal year 2025. The last time the Navy requested so few ships
    was more than 15 years ago.
        It's worth pointing out, as the Chairman has, that the
    bipartisan National Security Supplemental that the Senate
    passed more than 2 months ago includes more than $3 billion to
    bolster the submarine industrial base to help address the
    lengthy delays in both submarine programs.
        I would also add that the Supplemental includes $2.4
    billion to reimburse for the direct costs being incurred by
    U.S. military units in harm's way in Central Command for 6
    months. Those were costs that could not have been anticipated
    and that is yet another reason we need to get this Supplemental
    to the President and signed into law.
        Navy sailors and service members of the other branches of
    the military have answered the call, doing everything asked of
    them and more. We need to pass the Supplemental so that these
    missions can continue and the necessary investments in the
    shipbuilding industrial base can be made.
        Therefore, we also need to mark up and pass the fiscal year
    2025 Defense Appropriations bill as soon as possible that
    defers conflict by providing the Navy and the Marine Corps with
    the ships, aircraft, munitions, and other capabilities
    necessary to keep our country and our allies safe during this
    extraordinarily difficult and dangerous time.
        Thank you, Mr. Chairman.
        Senator Tester. Thank you, Senator Collins.
        Now I'll have opening statements and please know that your
    full opening statement will be a part of the record.
        We'll start with you, Secretary Del Toro.

                   SUMMARY STATEMENT OF HON. CARLOS DEL TORO

        Secretary Del Toro. Chairman Tester, Vice Chair Collins,
    Distinguished Members of the Committee, it's an honor to appear
    before you this morning to discuss the posture of the
    Department of the Navy.
        First and foremost, I do also want to thank General Smith
    and Admiral Franchetti for answering the call of our Nation
    time and time again. They, like all who devote their careers
    and in some cases even sacrifice their lives in defense of
    their fellow Americans, represent everything that makes the
    United States a beacon of hope and freedom around the world.
        Together, our combined years of service to our country
    totals over a century, a century marked by multiple
    deployments, time away from home, and sacrifices made by our
    families, and as we gather here this morning, thousands of our
    sailors, Marines, civilians and their families are either
    stationed or deployed all over the world, making the same
    sacrifices, enduring the same trials that myself, General
    Smith, and Admiral Franchetti have faced throughout our
    careers.
        In the Indo-Pacific, our Navy and Marine Corps are sailing
    and operating alongside our international allies and partners
    in support of a free and open maritime commons, one where
    nations are secure in their access to the seas and where their
    rights within their exclusive economic zones are respected and
    upheld by all.
        Across Europe we, in cooperation with our NATO (North
    Atlantic Treaty Organization) allies, are supporting our
    Ukrainian partners as they continue their fight to restore
    their territorial and national sovereignty as Russia's illegal
    full-scale invasion enters now its third year, and I also urge
    Congress to pass the National Security Supplemental without
    further delay in support of our Ukrainian partners as they
    fight to restore peace in their homeland in defense of
    democracy for all free nations, not just Ukraine.
        In the Red Sea, our sailors and Marines have encountered
    hundreds of missiles and drones launched by the Houthis the
    past 6 months targeting merchant shipping and the warships of
    both the United States and international allies and partners as
    you have stated.
        We are confronting an adversary supported by Iran. All
    roads lead to Iran. It has no respect for the innocent lives
    and civilian merchant mariners and one that is actively
    targeting our ships attempting to harm our sailors and Marines
    because we dare to defend the defenseless.
        And just this past weekend, as you have stated, USS Carney
    and USS Arleigh Burke, both operating in the Eastern
    Mediterranean Sea, intercepted several Iranian ballistic
    missiles heading towards Israel.
        For those who question why the American taxpayer should
    provide for and maintain a Navy and Marine Corps, look at what
    is happening today in the Middle East where we are defending
    the free flow of international commerce and actively defending
    our international allies and partners.
        Members of the Committee, we appear before you today to ask
    for your continued support, for your partnership and your
    commitment in ensuring that the nearly one million sailors and
    Marines and civilians of the Department of the Navy that we
    lead are ready on all fronts at all times.
        While the Fiscal Responsibility Act of 2023 forced us to
    make very hard choices, the $257.6 billion in the President's
    budget request for fiscal year 2025 for our department adaptly
    balances maintaining and modernizing the fleet and force of
    today against planning for the future force while also taking
    care of our people.
        This budget directly supports our department's three
    enduring priorities of strengthening our maritime dominance,
    building a culture of warfighting excellence, and enhancing our
    strategic partnerships.
        We are acquiring the most lethal, agile, and capable
    warships, submarines, aircraft weapon systems, and other
    systems our world has ever seen. We're also funding the
    research and development of transformational technologies and
    fielding them more quickly to make our fleet more lethal and
    persistent within the current FY DP.
        We are investing billions of dollars in the industrial base
    that supports us while encouraging them to invest more in
    themselves at the same time.
        As responsible stewards of taxpayer funds, we will enforce
    accountability to ensure that our sailors and Marines have the
    platforms and capabilities they need to deliver on time and on
    budget.
        Above all else, we are taking care of our personnel and
    their families by focusing on improving housing, expanding
    childcare capacity, and increasing access to mental health
    resources, amongst other critical areas.
        We are clear-eyed about the challenges our Nation faces
    today in the maritime domain, both commercial and naval, and as
    a maritime nation we must confront the challenges of today and
    prepare for the potential conflicts of tomorrow by investing in
    a strong Navy and Marine Corps.
        Again, it is an honor to appear before you this morning and
    to lead the most powerful lethal and flexible Navy and Marine
    Corps team in the world and we look forward to discussing with
    you how best to deliver the Navy and Marine Corps that our
    Nation requires.
        Thank you.
        [The statement follows:]
                     Prepared Statement of Carlos Del Toro
                                  introduction
        Chairman Tester, Ranking Member Collins, and distinguished members
    of the committee, I am honored to appear before you alongside General
    Smith and Admiral Franchetti to discuss the posture of the Department
    of the Navy (DON). We appreciate your trust and confidence in us to
    lead the nearly one million Sailors, Marines, and civilians of our
    Nation's naval services, and we value opportunities like this to
    discuss our approach to recruiting, training, equipping, and preparing
    our Sailors and Marines to defend our Nation.
        For over 248 years, our Navy and Marine Corps have served as our
    Nation's vanguard, representing our interests around the globe--on,
    above, and below the sea, ashore, as well as in space and cyberspace.
    Our Founding Fathers recognized the importance of a well-trained, well-
    equipped naval force, and codified in our Constitution this legislative
    body's obligation to the American people to provide for and maintain a
    Navy and, by extension, a Marine Corps. Since the founding of our
    Nation, we have relied on our naval services to secure the world's
    oceans to sustain our economy through international trade, to engage
    with allies and partners thousands of miles away, and to confront the
    threats that have challenged our very way of life.
        Today, our naval power is on full display around the globe,
    especially in the Red Sea and in the Indo-Pacific. We are reassuring
    allies and partners, deterring potential adversaries, and responding to
    the actions of those who wish to threaten the lives of our Sailors,
    Marines, and civilian merchant mariners engaged in lawful,
    international commercial activities. American Sailors and Marines are
    protecting the national security interests and prosperity of the United
    States--all in line with the National Security and National Defense
    Strategies.
        As we confront global challenges, we remain laser-focused on
    managing our strategic competition with the People's Republic of China
    (PRC)--our pacing challenge. The PRC continues to behave provocatively
    and unsafely across the Indo-Pacific region, especially in the Taiwan
    Strait and the South China Sea. The PRC seeks to coerce its neighbors
    and threaten their interests, while undermining our alliances and
    security partnerships. The People's Liberation Army Navy (PLA(N)) is
    just one element of the maritime force Beijing employs to challenge the
    rules-based international order. As illustrated by ongoing PRC actions
    against our Philippine ally at Scarborough Reef and Second Thomas
    Shoal, the PRC uses its Navy, Coast Guard, and Maritime Militia as part
    of an integrated, cumulative campaign designed to force nations to
    submit to Beijing's excessive maritime claims despite international
    law, as reflected in the 2016 South China Sea ruling under Annex VII of
    the United Nations Convention on the Law of the Sea. Using these ``gray
    zone'' operations, the PRC is attempting to illegally appropriate other
    countries' offshore resources, threatening the peace, prosperity, and
    ecological stability of the world's ocean. Our Navy and our Marine
    Corps play a vital role--and have proven their effectiveness--in
    supporting our allies and partners' civilian vessels in standing up to
    the PRC's coercive maritime strategy in the South China Sea. While we
    do not seek confrontation, we will continue to uphold a free and open
    Indo-Pacific, and we will continue to fly, sail, and operate wherever
    international law allows.
        In Europe, Russia's illegal war and full-scale invasion of Ukraine
    has entered its third year. Our Ukrainian partners continue to display
    incredible courage and bravery on the battlefield, in the air, and at
    sea as they strive to restore their national and territorial
    sovereignty. We are proud to stand by their side, along with our NATO
    allies, and it is imperative that we continue to provide them with the
    support required for them to achieve victory, including the passage of
    the national security supplemental bill before Congress. As President
    Biden stated: ``History is watching. The failure to support Ukraine at
    this critical moment will not be forgotten. Now is the time for us to
    stand strong with Ukraine and stand united with our allies and
    partners. Now is the time to prove that the United States stands up for
    freedom and bows down to no one.''
        In the Middle East, the Iranian-aligned Houthis continue to launch
    unprovoked attacks on civilian merchant ships sailing innocently
    through waters where international law allows in the Red Sea and Gulf
    of Aden, one of the world's busiest waterways that accounts for more
    than 15% of the world's shipping traffic and connects Europe and Asia.
    More than twenty countries have joined us in Operation Prosperity
    Guardian to protect civilian ships and crews from harm. Acting in self-
    defense, our Navy and Marine Corps, along with the navies of our allies
    and partners, have shot down scores of anti-ship cruise missiles,
    ballistic missiles, and drones launched by the Houthis. Our ships,
    aircraft, and crews have performed admirably to both protect
    international commercial ships from multi-domain threats and defend
    themselves.
        Following exhaustive diplomatic efforts to seek an end to the
    Houthis' attacks without further damage and bloodshed, we and our
    allies have conducted multiple rounds of combined self-defense strikes
    against targets in parts of Houthi-controlled Yemen, including storage
    sites and locations associated with the group's missile and air
    surveillance capabilities. These strikes were in direct response to
    Houthi actions that have demonstrated their callous disregard for the
    lives of civilian merchant mariners, underscored by the anti-ship
    ballistic missile attack that claimed the lives of three seafarers
    aboard the merchant ship M/V True Confidence.
        The Houthis' actions in the Red Sea are reverberating across the
    global economy. Iran, through its proxies and partners, aims to exploit
    the ongoing conflict in Gaza to exact a price on the rest of the world
    by increasing shipping costs and maritime insurance rates, as well as
    lengthening the time it takes goods to reach their intended ports.
    These costs are borne by our own citizens, as well as citizens in
    countries around the world, including those most vulnerable to
    disruptions in maritime transportation. It is imperative that we and
    our global network of allies and partners bring an end to the Houthis'
    threat to U.S. Navy vessels and the disruption of the free flow of
    maritime commerce. In the Red Sea, as elsewhere, we must not hesitate
    to counter those who threaten the free and lawful use of the sea by all
    nations.
        The operations in the Red Sea and Gulf of Aden over the past 3
    months illustrate perfectly how technological investments and force
    design decisions made by naval leaders in the past impact operations
    for decades. The backbone of our air defense fleet, the Aegis Combat
    System, first became a program of record as the Advanced Surface
    Missile System 60 years ago this year. Launching from the flight deck
    of the nearly 47 year-old USS Dwight D. Eisenhower (CVN 69) in the Red
    Sea region, the workhorse of our air wings, the F/A-18E/F Super Hornet,
    is derivative of a strike fighter platform that first flew 45 years ago
    this year, employing the latest version of an air-to-air missile, the
    AIM-9 Sidewinder, which first entered service 68 years ago. The
    platforms and weapon systems our Sailors and Marines have used with
    great effect in shooting down Houthi anti-ship cruise missiles,
    ballistic missiles, and drones can be traced back to development
    efforts and disciplined investments from the '60s, '70s, and '80s, as
    well as timely modernizations and upgrades that have enabled these
    platforms and systems to be relevant in today's threat environment.
        Today, the decisions we make regarding shipbuilding, platform and
    systems acquisition, cybersecurity and information technology,
    maintenance, repair, and caring for our Sailors, Marines, civilians,
    and their families will shape the future of the Navy and Marine Corps
    in the 2050s and beyond. I fully support Admiral Franchetti's
    priorities outlined in America's Warfighting Navy and General Smith's
    efforts to modernize and increase the lethality of the Marine Corps
    under the umbrella of Force Design. The guidance issued by our service
    chiefs is aligned with my three enduring priorities of Strengthening
    Maritime Dominance, Building a Culture of Warfighting Excellence, and
    Enhancing Strategic Partnerships. With the support of Congress, we have
    made tremendous progress over the past year to advance our three
    enduring priorities.
             progress update on the don's three enduring priorities
    Strengthening Maritime Dominance
        Over the past twelve months, we have delivered nearly a dozen new
    battle force ships to the fleet and have nearly ninety under contract,
    including our highest acquisition priority, the Columbia-class SSBN. We
    continue to explore new block buys and multi-year contracts to procure
    ships more efficiently and affordably while providing our industry
    partners with clear and predictable demand signals for ships,
    submarines, and munitions. The submarine industrial base faces an
    increased demand as we ramp up production of Columbia-class SSBNs and
    continue procuring Virginia-class SSNs. To augment our Fleet and our
    Force, we have made significant strides in developing and deploying a
    hybrid fleet (manned and unmanned) across the Fourth, Fifth, and
    Seventh Fleet Areas of Operations. The Windward Stack and Gatekeeper
    operations, led by Fourth and Fifth Fleet, respectively, and similar
    activities in other theaters provide persistent presence and deliver
    all-domain awareness across a total area covering tens of thousands of
    square miles. The assistance provided to Ukraine by U.S. Naval Forces
    Europe has demonstrated how to deliver combat power with a hybrid fleet
    in battle with Russia's Black Sea Fleet. We are also on track to
    conduct an at-sea test of the Transportable Re-Arming Mechanism (TRAM)
    for Vertical Launch System at-sea reloading, which will significantly
    increase the combat readiness of our surface fleet by reducing combat
    reload times.
        To keep our Fleet ready, we continue to modernize our four public
    shipyards through the Shipyard Infrastructure Optimization Program
    (SIOP). Over the past year, we have completed renovations and
    improvements of our dry docks at both Norfolk Naval Shipyard and Puget
    Sound Naval Shipyard, and awarded a $2.84 billion construction contract
    for the replacement of Dry Dock 3 at Pearl Harbor Naval Shipyard. All
    of this progress was made possible with the support of Congress, and I
    appreciate your enduring commitment to ensuring the success of SIOP as
    we contract, fund, execute, and complete these critical projects to
    support our future requirements and keep our warships and submarines
    mission-ready.
        As we modernize our Fleet and our Force through several initiatives
    to increase their lethality, mobility, and capabilities, we are also
    increasing their resiliency in an effort to combat the effects of
    climate change. In 2022, our Department released Climate Action 2030,
    focusing our approach on this important issue. Actions we have taken in
    line with our climate strategy include critical infrastructure upgrades
    to increase the resiliency of our installations, which are central to
    our ability to project naval power both at-sea and ashore. Through our
    Chief Sustainability Officer, the DON has issued guidance on resilient
    infrastructure, water security, acquisitions, and energy to ensure that
    we make good use of the resources we have now and invest in the
    resources we will need in the future. As a maritime nation, we cannot
    afford to ignore how our world's changing climate impacts the
    environments across which our Sailors, Marines, and civilians operate.
    Our operational environment is directly impacted, increasing the
    mission demands of our maritime forces and decreasing our ability to
    respond to those demands.
        Our partners and allies are seeing the same thing, and as we work
    to reduce the threat of climate change and increase our resilience, we
    are committed to working with them to ensure our collective naval
    forces remain resilient and resourced to maintain their competitive
    advantages in the decades to come.
    Building a Culture of Warfighting Excellence
        Our people remain our greatest strength. Personnel readiness and
    resilience begin and end with them. Every Sailor, Marine, and civilian
    deserves leadership at all levels that fosters healthy commands built
    on trust, respect, and inclusion. We will ensure that both Quality of
    Life and Quality of Service meet the standards expected by our Sailors,
    Marines, civilians, and their families. We are prioritizing our most
    pressing infrastructure problems, including facilities, barracks,
    water, and energy.
        We are acting on our commitment to provide additional services for
    our Sailors and Marines who reside in unaccompanied housing. In
    February, we launched a pilot program in Hampton Roads to provide
    complimentary Internet access to all Sailors living in unaccompanied
    housing. The feedback we receive from our personnel participating in
    these programs will directly inform our future efforts to roll out this
    service Department-wide, providing Sailors and Marines with access to
    free Internet services in unaccompanied housing.
        We also remain committed to maximizing Sailor and Marine
    development and are pursuing every available avenue to retain our best
    and most fully qualified personnel while recruiting the next
    generation. Our education institutions, including the Naval Academy,
    Naval Postgraduate School, Naval War College, Marine Corps University,
    and Naval Community College, remain world-class, and we released the
    Naval Education Strategy last year to modernize our naval education to
    meet our Nation's security needs.
    Enhancing Strategic Partnerships
        Our greatest asymmetric advantage is our global network of allies
    and partners. We continue to foster strong security ties, pursue new
    ways to link industrial bases, secure supply chains, and co-produce
    technologies to boost our collective capabilities. For example, the
    historic AUKUS trilateral partnership among Australia, the United
    Kingdom, and the United States, provides a generational opportunity to
    strengthen our respective security and defense capabilities, uplift our
    respective industrial bases, and contribute to peace and stability in
    the Indo-Pacific.
        Additionally, we are focused on advocating for national maritime
    power--both commercial and naval--across the Federal government. We
    have collaborated with our inter-agency partners at the Department of
    Transportation, Department of Commerce, Department of Homeland
    Security, the U.S. Trade Representative, and with maritime stakeholders
    throughout the Department of Defense, to build consensus and identify
    actions that we can take in support of our nation's shipbuilding and
    ship repair capabilities and capacity in support of our naval services.
    We are appreciative of the widespread interest and support these topics
    have garnered in Congress, and we look forward to working with you in
    the years to come to identify solutions that will improve the readiness
    and health of our Nation's commercial maritime and naval fleets.
        We likewise remain committed to bolstering our relationships with
    the defense industrial base and academia. With congressional support,
    Ship and Submarine Industrial Base investments have led to improved
    hiring across our submarine shipbuilders and suppliers; establishment
    of dedicated manufacturing trade centers and pipelines; and the
    training and placement of over 5,000 people within the industrial base
    since 2020. Over the next decade, our Nation will need 200,000 new
    qualified workers to choose careers in fields like naval architecture,
    engineering, and lifecycle management, as well as technical expertise
    in nuclear welding, robotics, software management, and additive
    manufacturing. Pre-apprenticeship, registered apprenticeship, and labor
    management programs are critical tools to help fulfill this labor
    demand.
        Finally, we are strengthening our bonds with the communities we
    serve across our Nation through outreach, Navy and Marine Corps Weeks,
    Fleet Weeks, and other events. I am especially proud of the work we've
    done to foster our connectedness with Tribal Nations. The Department of
    the Navy is the first military department to have a full-time,
    dedicated Director of Tribal and Indigenous Affairs. We are committed
    to the enduring relationships and transparency in our work with Tribal
    Nations to meet our shared goals, as well as all communities which our
    Sailors, Marines, civilians, and their families work in and call home.
                    the fiscal year 2025 president's budget
        Building on the successes and progress made along our three
    enduring priorities during 2023, the President's Budget for Fiscal Year
    2025 (PB25) request to Congress for the Department of the Navy reflects
    President Biden's faith in our vision for the United States Navy and
    the United States Marine Corps, and advocates for the funding levels
    required to maintain the Fleet and the Force that our Nation requires.
    Our request this year for the Department of the Navy is $257.6 billion,
    a 0.7% increase over the $255.8 billion in the President's FY24 Budget
    request, adhering to the defense spending levels set by the Fiscal
    Responsibility Act of 2023 (FRA). I will note for the committee that
    adhering to the FRA required us to make hard choices, leading us to
    prioritize the readiness of our Fleet and our Force today, as well as
    taking care of our people, over significant investments in the future
    force. These choices are reflected throughout PB25.
        Every dollar of this requested investment by the American taxpayer
    will ensure that our Sailors, Marines, civilians, and their families
    are provided for--from the continued acquisition of strategic platforms
    and systems, investments in research and development as well as basic
    science and technology, addressing critical infrastructure
    requirements, to improving overall Quality of Life/Quality of Service
    for our personnel. Most importantly, PB25 will ensure the Department of
    the Navy's ability to continue to invest in support of our three
    enduring priorities.
    Strengthening Maritime Dominance
                Fleet Investments
        For FY25, we are requesting $32.4 billion to support ongoing
    shipbuilding programs and allow for the procurement of six battle force
    ships, each one bringing advanced warfighting capabilities to the
    Fleet.
        In the undersea domain, this budget provides funding for the first
    boat in a new multi-year procurement contract for our Block VI
    Virginia-Class nuclear-powered attack submarines (SSN) and provides
    significant additional resources to increase industrial capacity for
    submarine construction. Our request also continues funding for the
    second of our Columbia-Class nuclear-powered ballistic missile
    submarines (SSBN), as well as advance procurement and continuous
    production supporting the remaining boats. The Columbia SSBN will
    modernize the most- survivable leg of our country's nuclear triad and
    remains our Department's highest priority acquisition program.
        For our surface fleet, we look to procure two Arleigh Burke-Class
    destroyers (DDGs) and one Constellation-Class frigate (FFG), each of
    which will bring additional capacity and capability to our Fleet's
    integrated air and missile defense, anti-surface, anti-submarine, and
    naval strike operations. In support of the Marine Corps' Force Design,
    PB25 also provides funding for the first-in-class Landing Ship Medium
    (LSM) to enable mobility and sustainment for the Stand-In Force.
    Investments in our amphibious fleet with the request for one Flight II
    San Antonio-Class Landing Dock Transport (LPD) in each of FY25, FY27,
    and FY29 are necessary to maintain the thirty-one amphibious ships
    required by law and will give us the flexibility to retire older and
    less-capable platforms.
                Aviation Investments
        As we continue to modernize our surface and undersea fleets, we
    must also ensure that our aviation community has the right mix of air
    frames and capabilities to support our Sailors and Marines in the
    execution of their assigned missions. PB25 requests $16.2 billion to
    support aircraft procurement, aircraft modification efforts, the
    acquisition of critical spare and repair parts, and funding for
    aircraft support equipment and facilities.
        Our request for fixed-wing aircraft centers around the procurement
    of twenty-six F-35 Lightning II Joint Strike Fighters--thirteen
    carrier-based F-35s for the Navy and Marine Corps and thirteen short-
    takeoff vertical-landing F-35s for the Marine Corps--and our rotary
    wing procurement request for the Marine Corps includes nineteen CH-53K
    heavy-lift helicopters as part of a new, two-year block buy for
    airframes with engines procured as a five-year multi-year block buy.
    PB25 also includes funding to begin low-rate initial production of the
    MQ-25, an unmanned, carrier-based platform that will provide an
    organic, in-air refueling capability to our carrier airwings. The MQ-25
    is the ``pathfinder'' to the Air Wing of the Future, and will increase
    the strike range, capability, and lethality of both the Carrier Air
    Wing and the Carrier Strike Group.
                USMC Ground Investments
        Equally as crucial to our Fleet and our Force are the investments
    we make in the Marine Corps' ability to operate ashore. PB25 requests
    $4.2 billion in support of critical investments that are key to the
    success of the Marine Corps' Force Design transformation efforts.
    Highlights in platform and system acquisition efforts include 80 new
    Amphibious Combat Vehicles, 674 Joint Light Tactical Vehicles, and 123
    Javelin anti-armor missiles. Also included are requests for funding to
    continue the procurement of Medium Range Intercept Capability (MRIC)
    missiles and launchers and support the sustainment of the Ground/Air
    Task Oriented RADAR (G/ATOR). The dollars committed to these
    acquisition programs will exponentially increase the mobility,
    survivability, and lethality of our Marines, giving them advantages
    over our adversaries in austere and contested environments.
                Munitions Procurement
        As we consider how our Fleet and our Force fight in contested
    environments, there is no better example than our operations in the Red
    Sea and Gulf of Aden, where the strike and air defense capabilities of
    our naval forces are in high demand by U.S. Central Command. However,
    we are expending critical munitions from our stockpiles with every
    engagement. Our $6.6 billion request continues our multi-year
    procurement of the Standard Missile, Naval Strike Missile, Long-Range
    Anti-Ship Missile (LRASM), and Advanced Anti-Radiation Guided Missile-
    Extended Range (AARGM-ER). We also intend to procure Tactical Tomahawks
    for the Navy and Marine Corps, supporting their ability to strike
    targets both from the sea and from the shore.
        Further, this request increases production for both the LRASM and
    AARGM-ER, both of which are critical munitions that allow our Sailors
    and Marines to engage targets at an extended range, reducing risk to
    personnel and platforms. We are also investing in systems designed to
    provide ships with an ability to defeat unmanned aerial vehicles in a
    way that both lowers the cost-per- kill and reduces the expenditure of
    high-end missiles against relatively low-end threats. These systems
    will help put us on the ``right side of the cost curve'' while also
    increasing the ability of our ships to remain on station for longer
    periods of time.
                Cyber, Cybersecurity, and Information Technology
        As we procure more advanced platforms, we continue the
    modernization of our IT systems and the cybersecurity safeguards that
    protect them. We continue to refresh and modernize our computer systems
    and virtual environments to provide a better user experience, in line
    with the ``Fix Our Computers'' initiative. We are also taking advantage
    of the new capabilities for connectivity provided by proliferated Low
    Earth Orbit (P-LEO) satellite networks to support our Fleet and our
    Force, both at sea and ashore. By decreasing the time required for
    users to log in and set up applications, as well as increasing data
    flows and network accessibility, we are improving the quality of
    service provided to hundreds of thousands of users across the entire
    Department of the Navy.
        At the same time, we are implementing our new, comprehensive Cyber
    Strategy, published in November by our Chief Information Officer and
    Principal Cyber Advisor. This strategy aims to ensure that the DON's
    cyber posture positions our naval services for success during
    competition, crisis, and conflict. The DON Cyber Strategy is directly
    aligned to the National Defense Strategy and DoD Cyber Strategy and
    outlines seven lines of effort for our Department to focus on,
    including cyber workforce development; cyber readiness; defense of
    enterprise IT; data and networks; defense of critical infrastructure
    and weapon systems; partnering to secure the defense industrial base;
    and fostering cooperation and collaboration. In addition to these
    efforts, I have directed the Naval Criminal Investigative Service
    (NCIS) to utilize other proactive initiatives under their authorities
    as the Military Department Counterintelligence Organization (MDCO) to
    better support and harden the industrial base from adversarial cyber
    and traditional intelligence threats to ensure acquisition integrity.
        Additionally, I am committed to supporting our Cyber Mission Forces
    (CMF)--both Navy and Marine Corps--as they continue to gain advantage
    in this critical warfare domain. PB25 supports the continued
    development of our Department's CMF, both in terms of manning and
    training, to ensure our personnel are prepared to operate in
    cyberspace.
        Through the investments requested in PB25 for our Department's
    information technology, cybersecurity programs, and cyber personnel, we
    will continue to make progress to secure our global networks from
    external and internal threats posed by state and non-state cyber actors
    while maintaining the confidentiality, integrity, and availability of
    data for our users.
                Funding for Operations and Maintenance
        While acquisition of new platforms and capabilities is critical to
    the modernization of the Fleet and the Force, we must always make
    readiness our top priority. PB25 requests $34.6 billion for Fleet
    readiness, with $7.6 billion for ship operations such as training and
    deployment, $14.5 billion for fleet upkeep--including fifty-eight ship
    and submarine maintenance availabilities at our public and private
    yards, $10.6 billion for 875,000 flight hours for our Navy and Marine
    Corps flight crews, and $1.9 billion for aviation maintenance to
    increase the number of mission-capable aircraft. Additionally, we are
    requesting $4.5 billion to ensure our Fleet Marine Force remains
    prepared to operate forward. This amount includes $2 billion for field
    logistics, $2.1 billion to maintain the operational readiness of Marine
    units around the world, $200 million for maritime prepositioning, and
    $200 million for depot maintenance for ground platforms and systems.
                Divestments
        As we acquire new platforms and systems and focus on the
    maintenance, upkeep, and operation of those that are in service, we
    must also evaluate which platforms have outlived their service life and
    are a drain on the force in terms of time, capital, pier space, and
    personnel.
        In the information technology (IT) realm, the DON continues to
    realize progress through Operation Cattle Drive, our Department's
    effort to accelerate the modernization and transformation of our IT
    capabilities. Led by our Assistant Secretary of the Navy for Financial
    Management and Comptroller and Chief Information Officer, we are
    working to sunset unneeded, obsolete, unproductive, insecure, and un-
    auditable IT systems and applications. Operation Cattle Drive will
    accomplish two goals: (1) improve the overall financial management and
    auditability of the DON, and (2) eliminate unnecessarily redundant IT
    systems, resulting in increased efficiencies, cost avoidance, and
    funding reallocation to close known resource gaps, enabling better
    support to our Sailors and Marines.
        PB25 also requests the divestment of several platforms, including
    the EP-3 Aries, U.S. Navy MH-53E mine countermeasure and heavy lift
    helicopters, MQ-8C unmanned rotary aircraft, and ten ships. As this
    committee is aware, legacy platforms that are costly to maintain and
    are ill-equipped to perform their missions in contested environments
    must be retired in order to invest in new, lethal capabilities.
        Some of the ships we seek to divest have yet to reach their
    expected service lives. Recognizing that the American taxpayer has
    committed billions of dollars to construction, outfitting, maintenance,
    and operation of these warships, allow me to provide a hull-by-hull
    explanation of our request.
        For USS Shiloh (CG 67) and USS Lake Erie (CG 70), both ships are
    less than 3 years away from their end of service life, and will require
    a significant amount of time and resources to improve their material
    condition and upgrade their combat, hull, mechanical, and electrical
    systems. Simply put, the costs associated with these upgrades and
    continued operation of these ships post-modernization are too high to
    yield a positive return on investment. Instead of returning these ships
    to a ready state just in time for their normal retirement, the Navy
    will apply the funding associated with these ships elsewhere either to
    maintain or modernize in-service assets that provide a greater combat
    capability to the Fleet and the Joint Force.
        The same justification applies for USS Germantown (LSD 42), which
    will reach the end of its expected service life in 2026. USS Germantown
    currently has an unsatisfactory life cycle health assessment and is
    proposed for divestment based on the cost and condition of the ship,
    including her rotting wooden decks, limitations on the operation of her
    cranes, and other material deficiencies. The funds required to maintain
    USS Germantown for her final 2 years are better spent elsewhere in
    support of our amphibious fleet. I will also highlight for the
    committee that retiring USS Germantown 1 year early does not impact our
    ability to meet the thirty-one amphibious ship requirement as we
    continue to procure new LPDs throughout the FYDP with the support of
    Congress.
        USS Jackson (LCS 6) and USS Montgomery (LCS 8)--two of our
    Independence-Class variant littoral combat ships--have yet to receive
    the Lethality and Survivability Upgrade, an investment of several
    million dollars per ship that is beyond our current fiscal guidance.
    Further, these ships represent an excess LCS capacity beyond our
    revised requirement for fifteen MCM and ten Surface Warfare Mission
    Packages.
        Much like USS Jackson and USS Montgomery, USNS Spearhead (T-EPF-1),
    USNS Choctaw County (T-EPF-2), USNS Millinocket (T-EPF-3), and USNS
    Fall River (T-EPF-4), represent excess capacity beyond what our Navy
    and Marine Corps needs for expeditionary fast transport ships (T-EPF).
    Currently, the Navy has fourteen T-EPFs in service with two additional
    hulls under construction, exceeding the revised, combined Navy and
    Marine Corps requirement for twelve EPFs. By divesting these four T-
    EPFs to bring our fleet size in line with service requirements, the
    Navy will realize significant cost savings and will be able to use the
    available financial and manpower resources to support higher priority
    programs.
        Finally, we are requesting to divest the USNS John Glenn (ESD-2),
    one of our Fleet's two expeditionary transfer docks which were
    originally designed and configured around a specific concept of
    operations for uncontested ship-to-shore maneuver that has been
    obviated by the evolution of the threat environment. Operational
    limitations, including low sea-state restrictions, lack of organic
    surface connectors, and other challenges that limit the utility of this
    platform as presently configured. By inactivating USNS John Glenn,
    which is already in a reduced operating status, we project an annual
    cost savings of $33 million in OMN funding.
        While all ten of these ships, as well as the Sailors and Merchant
    Mariners who have crewed them throughout their time in service so far,
    have served our Nation admirably, their divestment during FY25 will
    allow us to maximize our utilization of resources and personnel in
    support of programs and platforms that better support the Joint Force
    in countering our most pressing threats.
                Research and Development (R&D) of Enhanced Capabilities
        Beyond the acquisition of new platforms, systems, and munitions, as
    well as the divestment of those that are no longer capable of
    performing their missions, our Department is also focused on the
    research and development of our next-generation capabilities. PB25's
    $25.7 billion for R&D continues to invest in developing and fielding
    those very capabilities that our Sailors and Marines of tomorrow will
    rely on in potential future conflicts. These includes our next-
    generation fighter aircraft, submarines, and large surface combatants,
    as well as unmanned systems that will operate in the air, on the
    ocean's surface, and under the sea. Over $3 billion of this request
    will also go towards enterprise networks, cybersecurity, and electronic
    warfare systems to support our personnel and bolster our current
    posture across the electromagnetic spectrum.
        As a part of our larger R&D funding request, $2.53 billion is set
    aside for basic science and technology development that underpins our
    future capabilities. Earlier this month, we released our Department's
    latest Naval Science and Technology Strategy, the execution of which
    will be led by our Chief of Naval Research and his team. This strategy
    will serve as the driving force behind how we invest the American
    taxpayers' dollars on S&T and will directly contribute to ensuring that
    our Nation leads the world in developing revolutionary technologies.
        Our Department recognizes the importance of protecting the
    investments we are making in basic S&T research to preserve the
    competitive advantages they provide to our Sailors and Marines as
    technologies mature into cutting-edge capabilities. In early February,
    the Department of Defense (DoD) released the National Defense
    Industrial Strategy, centered around four priorities-- resilient supply
    chains, workforce readiness, flexible acquisition, and economic
    deterrence--to strengthen our industrial base's resilience and counter
    threats posed by adversary capital investments and intellectual
    property misappropriation to our Nation's innovation ecosystem. In
    support of this strategy, the DON recently stood up the Maritime
    Economic Deterrence Executive Council (MEDEC). This body will serve as
    a coordinating mechanism to synchronize efforts to protect new and
    novel technologies with naval applications, both across the Department
    and in alignment with our inter-agency partners.
        Over the past year, we have made structural changes throughout our
    Department--from standing up and empowering new innovation-focused
    units to elevating the Chief of Naval Research to be a direct report to
    me--to better facilitate the rapid identification, experimentation,
    prototyping, fielding, and adoption of new capabilities and
    technologies that provide our Sailors and our Marines with competitive
    warfighting advantages.
        In September, we stood up the Department's Science and Technology
    Board, chaired by former Secretary of the Navy Richard Danzig, to bring
    together leaders across various disciplines to help identify new
    technologies and capabilities. I charged them to explore the impact of
    asymmetric, cutting-edge technologies in both the near and distant
    futures of warfighting, across all domains in which we operate. They
    are working on improving surface ship cyber defense, shipboard additive
    manufacturing, and lifecycle maintenance. Our ongoing project on
    surface ship maintenance is investigating key issues that impact our
    performance. I expect their recommendations on potential new technology
    investments will improve all aspects of our operations, including
    planning, condition-based assessments, additive/advanced manufacturing,
    and IT modernization.
        Likewise, our initiative on surface ship cyber defense is crucial
    to executing complex missions in contested environments. We have a
    world-class team performing this study that will benefit the Fleet. As
    part of this initiative, we have integrated cybersecurity and defense
    requirements into the new Constellation-class frigate as a critical
    attribute at the onset of the program. The program has scheduled early
    integration testing events at available land-based test sites. We
    intend for these test events to assess network cybersecurity controls
    and reduce shipboard integration risks for government and contractor-
    furnished equipment.
        This past year, we celebrated the 100th anniversary of the Naval
    Research Laboratory, highlighting our Department's long history of
    pioneering research with academia, the private sector and other
    partners to develop and deliver naval superiority. We benefit from a
    strong organic, national and global research ecosystem across the
    entire Naval Research and Development Establishment (NR&DE).
        Composed of our fifteen Naval Warfare Centers, five Naval
    University Affiliated Research Centers (UARCs), the Office of Naval
    Research, NRL, Marine Corps Warfighting Laboratory (MCWL), Marine Corps
    Tactical Systems Support Activity (MCTSSA), Naval Postgraduate School
    (NPS) and our Center for Naval Analysis (CNA), the NR&DE continues to
    be at the forefront of our basic and applied research through
    technology development, integration, operations, maintenance and
    sustainment. The NR&DE unifies Naval R&D organizations to provide
    greater technological advantage to U.S. warfighting.
        This continuum of science, research, development, testing, and
    evaluation is critical to transitioning ideas and concepts developed in
    the lab to new capabilities for naval warfighters. Our long-view
    approach provides our thought leaders the autonomy to produce the
    scientific knowledge, capability improvements and disruptive
    technologies able to address naval mission needs. ONR is investing in
    science and technology projects alongside our international partners
    and allies, each aiming to address common challenges we face as
    maritime nations. Similarly, ONR, through NavalX, is working to deepen
    our international and domestic relationships with industry via our Tech
    Bridges, many of which are co-located with our Naval Warfare Centers.
    We connect directly with companies and source commercial technologies
    that complement and supplement our Fleet and our Force's existing
    systems, tools, and research.
        The Naval Innovation Center (NIC) at the Naval Postgraduate School
    in Monterey, California, which I announced in December 2022, will
    empower our next generation of warfighters by leveraging the unique
    warrior talent at NPS to inform future operational concepts and
    advanced technology development. The NIC will provide a space for
    academic collaboration, defense-focused experimentation, and
    demonstration of operational use cases to ensure the effectiveness,
    technological leadership and warfighting advantage of the Naval
    services. Meanwhile, the Marine Innovation Unit (MIU) is focused on
    identifying, experimenting, and rapidly fielding technologies and
    capabilities to address gaps identified by our Marines. MIU leverages
    the expertise and professional networks of our talented Reserve Marines
    to accelerate the development and fielding of key capabilities
    throughout the Force. Their efforts are already reducing timelines
    between identifying needs and delivering warfighting capabilities
    supporting the Marine Corps' transformational Force Design, ensuring
    our Marines are agile, capable, and lethal.
        The Navy's Disruptive Capabilities Office (DCO) is pushing the
    bounds of rapidly identifying innovative applications of existing and
    new systems by harnessing today's exponential growth in technology. The
    DCO is collaborating with stakeholders from across our Department, DoD,
    and industry, focusing on identifying solutions for our warfighters at
    a pace and scale to close our Fleet's most critical capability gaps. It
    works closely with the NR&DE to address the immediate and near-term
    needs that require the rapid transition and integration of new and
    innovative solutions.
        Program Executive Office (PEO) Integrated Warfare Systems and PEO
    Land Systems are conducting a pilot program to improve our business
    practices, realigning their respective portfolios to a capabilities-
    focused model. This pilot program explores how our Program Executives
    can operate under a new portfolio-centric construct to increase the
    capability development and fielding rate over our present timelines and
    does so in a manner that leverages pre-existing authorities. The
    lessons we learn throughout this pilot program will enable all our PEOs
    to better address the emerging threats and requirements under their
    respective purviews.
        An essential element of our Department's approach to innovation is
    the collaboration with our fellow services and throughout the DoD. We
    work with our partners at the Defense Innovation Unit (DIU) and the
    Office of Strategic Capital to ensure that our requirements for
    critical technologies are illuminated to industry and investors for
    their consideration. We are committed to close collaboration within our
    own Department and with our fellow services, OSD, DIU, and the entire
    Federal government to ensure we are aligned. The Department of the
    Navy's contribution to the ``Replicator Initiative,'' partnering
    closely alongside joint efforts like DIU, will accelerate production
    and delivery of the capabilities our Joint Force needs at scale.
        Innovation is not solely about delivering material solutions. In
    many cases, the solutions to real operational problems can be found by
    changing warfighting doctrine or training approaches. As we re-focus
    our efforts on addressing the challenges we face in the maritime domain
    today and will face in the future, we must recognize that there are
    still organizational changes which must be made to ensure we are
    developing, adopting, and scaling at a rapid pace to deliver the
    technologies and capabilities our Sailors and Marines require.
        Working alongside our partners throughout the DoD, we will continue
    to evaluate our approach to the rapid adoption and fielding of new
    capabilities and technologies to ensure we are reducing barriers and
    transition timelines, ensuring our Sailors and Marines are equipped
    with modern systems and platforms to support their missions.
                Investments in the Organic Industrial Base
        As we continue to acquire the ships, submarines, aircraft, and
    systems we need today and invest in the development of the next
    generation of platforms and capabilities for the fight of tomorrow, we
    will not be successful without substantial, consistent investments in
    the infrastructure that enables these platforms. To that end, PB25
    requests $2.8 billion to continue making the necessary investments in
    our four public shipyards that will ensure their sustainability and
    climate resiliency through the Shipyard Infrastructure Optimization
    Program (SIOP). As I noted earlier, SIOP will improve the operational
    availability of our Fleet by providing modernized facilities,
    infrastructure, and equipment that will undoubtedly increase our
    shipyards' capacity and capabilities to complete maintenance
    availabilities. By recapitalizing century-old infrastructure, we are
    also improving the Quality-of-Service for the over 30,000 engineers,
    artisans, and Sailors who work at our four public shipyards, providing
    safer working conditions while creating reliable, resilient, secure
    energy and water sources for this infrastructure and its mission.
                Infrastructure and Installation Resilience
        DON installations and facilities are power projection platforms. In
    order for our installations to remain safe, secure, effective, and
    resilient, our Department has made it a top priority to tackle
    infrastructure deficiencies that decrease our ability to support
    mission requirements. This effort includes addressing facilities and
    core utilities that are beyond service life and in poor condition as a
    result of decades of under-investment and neglect. PB25 includes a
    request for $11.1 billion for the Navy and $4.6 billion for the Marine
    Corps for installation and facilities support, as well as $4.6 billion
    for military construction projects, to support our worldwide
    infrastructure portfolio that our Sailors, Marines, civilians, and
    their families rely on every day.
        While the Department continues to invest in our most critical
    infrastructure, we are initiating a thirty-year infrastructure plan to
    guide future investments and resources to fully address the gaps in
    modernization and recapitalization. This plan is an integrated,
    informed, sustainable approach that recognizes our installations are
    critical to our Navy and our Marine Corps' ability to project power on
    a global scale as well as to defend the homeland.
        We also recently initiated a Critical Infrastructure
    Synchronization Forum, which is designed to work through the challenges
    and interdependencies of infrastructure resilience and address the
    threats to our most critical facilities and core utilities. In support
    of this effort, PB25 includes funding for cyber hardening, smart grids,
    facility-related control systems, and black start exercises, directly
    bolstering our infrastructure portfolio against hazards.
        As I highlighted earlier, a major challenge that directly impacts
    our infrastructure is climate change. Climate resilience is an
    essential component of DON mission readiness, and the Department
    strives to ensure installations and infrastructure are resilient
    against extreme weather events, water scarcity, sea level rise,
    recurrent flooding, wildfires, and other environmental considerations
    and threats that present significant risk to our mission. Effectively
    responding to climate impacts is a critical component of strengthening
    maritime dominance and directly impacts the entire spectrum of military
    operations. Our National Security Strategy highlights climate change as
    the greatest and potentially existential shared problem for all
    nations, and our National Defense Strategy rightly recognizes climate
    change as a ``transboundary challenge'' that is transforming the
    context in which the Joint Force operates. We are taking actions to
    bolster the resiliency of our Department, while also working alongside
    our international partners and allies. For example, next month the
    Assistant Secretary of the Navy for Energy, Installations, and the
    Environment will be hosting the Department's third climate-related
    tabletop exercise.
        This exercise will be focused on the challenges posed by climate
    change throughout the Caribbean, and how we can work with and support
    key regional partners on topics including health, safety, and
    infrastructure. I look forward to sharing with you the outcome of this
    exercise and what lessons learned can further enhance our Department's
    approach to ensuring the sustainability of our worldwide infrastructure
    portfolio and advance our collaboration with and support of key
    regional partners.
        Energy and energy security are critical to the DON's ability to
    provide global presence and ensure stability, deter adversaries,
    respond to crises, and, if necessary, fight and win our Nation's wars.
    Energy security is necessary to address how we operate in a contested
    logistics environment, as well as address the increasing demand for
    clean and reliable energy to support electrification, support data
    centers and power Artificial Intelligence, directed-energy weapons,
    autonomous vehicles, and future technologies. In recent years, the DON
    has begun development of the Next Generation-Medium Tactical Truck (NG-
    MTT) to reduce bulk fuel logistics burdens and improve fuel economy.
    The DON has also developed and patented a safety mitigation container
    solution to enable the fielding of battery-powered ground vehicles, the
    first step toward hybridization efforts for Navy ships. Additionally,
    the Department continues to invest in analytic assessments to support
    decisionmaking to meet fuel metering and monitoring requirements.
                Red Hill
        As we focus on our critical infrastructure portfolio, we remain
    engaged with the communities that support our installations. One
    example of this is the values we share with the people of Hawai'i in
    the community we share with them--including our servicemembers,
    civilians, and their families--who were affected by the fuel spill at
    the Red Hill Bulk Fuel Storage Facility (Red Hill). Since November
    2021, our Department has been laser-focused on monitoring and
    remediating the environmental impacts and addressing the effects this
    spill had on the community that we committed to providing safe drinking
    water to. Now, with over 99% of the previously held fuel reserves
    removed 6 months ahead of schedule, we remain steadfast in our resolve
    to close Red Hill permanently and conduct the long-term environmental
    remediation and aquifer restoration efforts at this site to ensure the
    health of the surrounding natural environment. Last month, I was in
    Hawai'i to attend the transfer of responsibilities ceremony from Joint
    Task Force-Red Hill (JTF-RH), which was responsible for defueling Red
    Hill, to Navy Closure Task Force-Red Hill (NCTF-RH), which will execute
    the permanent closure of that facility. NCTF-RH's motto is ``Safe,
    Deliberate, Engaged, Committed,'' and we will continue to engage with
    Red Hill stakeholders at all levels to rebuild the trust between our
    Department and the people of Hawai'i in our ability to provide safe
    drinking water to the communities we serve.
                Safety
        Safety is a critical component of our Navy and our Marine Corps
    foundation and a key indicator of professionalism and discipline,
    directly contributing to the combat readiness of our Fleet and our
    Force. The Department of the Navy places the utmost importance on
    building a culture of safety excellence, and we reject the notion that
    safety mishaps are simply ``the price of doing business.'' Many mishaps
    are preventable when we comply with established procedures and take
    action to stop unsafe acts before they occur.
        However, despite our best efforts, incidents do occur, and when
    they do, we quickly respond. The Department of the Navy re-established
    the Deputy Assistant Secretary of the Navy (Safety) position as a Tier
    3 SES, elevating the DON's Safety portfolio commensurate with the
    importance we place on safety. In addition, the Navy Executive Safety
    Board, chaired by the Vice Chief of Naval Operations, was reinitiated
    in 2024 and took effective action on systemic issues noted by the Naval
    Safety Command (e.g., Shore Fire Protection Systems, Enterprise Safety
    Management System, and the LCS Small Boat Launch and Recovery System).
    The DON also established the Shore Policy Board to highlight and
    address infrastructure-related concerns. The Marine Corps directed the
    assignment of a General Officer to lead Marine service safety
    initiatives and provide the requisite level of oversight and
    leadership.
        The DON takes every mishap seriously and properly investigates
    causal and contributing factors to prevent future occurrences.
    Additionally, we continue to improve our analytic capability to
    facilitate identification of units that may be at risk of potential
    mishap. We continue to refine the identification of occupational
    exposures to things like chemicals, noise, and blast overpressure, to
    better understand the effects of these exposures through science and
    improve methods to limit exposure. We are executing efforts such as the
    promulgation of Lessons Learned and a continuous evaluation and
    refinement of safety policy and guidance.
        Creating and maintaining a culture of safety within the Department
    of the Navy ensures our warfighting readiness, and we remain committed
    to prioritizing safety education and promulgation.
    Building a Culture of Warfighting Excellence
        Building a culture of warfighting excellence is focused on training
    our Sailors and our Marines to be the very best warfighters they can
    be, rooted in the principles of taking care of our people and enabling
    strong leadership with an emphasis on treating each other with dignity
    and respect. This pillar of our enduring priorities emphasizes not only
    caring for our Sailors and Marines, but also our Navy and Marine Corps
    families and civilians. Under PB25, we continue to invest in programs
    and infrastructure that support our people and enable them to devote
    their maximum effort to mission accomplishment.
                Warfighting Expertise
        In August 2023, the Navy and Marine Corps conducted Large Scale
    Exercise 2023 (LSE 23), the third and most complex iteration of the
    exercise, which included more than 25,000 Sailors and Marines across
    the world. LSE 23 was a Live, Virtual, and Constructive (LVC) exercise
    which spanned 22 time zones and included USS Eisenhower (CVN 69) and
    five other carrier strike groups (two live, four virtual), six
    Amphibious Ready Group (two live, four virtual), and 25 live and 50
    virtual additional ships. Based in real-world events, the Navy and
    Marine Corps assessed and refined modern warfighting concepts such as
    Distributed Maritime Operations (DMO), Littoral Operations in a
    Contested Environment (LOCE), and Expeditionary Advanced Base
    Operations (EABO) throughout the exercise.
        The Navy is advancing warfighting tactics and development through
    continued implementation of integrated training environments--live
    platforms and simulators--across our Fleet, including Live, Virtual,
    and Constructive (LVC), Link Inject-to-Live (LITL), Navy Continuous
    Training Environment (NCTE), and Tactical Operational Flight Trainers
    (TOFT).
        The Surface and Mine Warfighting Development Center (SMWDC) remains
    laser-focused on forging new and advanced surface warfare tactics,
    techniques, and procedures (TTPs) and training Warfare Tactics
    Instructors (WTIs) who bring their warfighting expertise to the Fleet.
    Surface WTIs, highly trained surface warfare officers, specialize in
    Anti-Submarine and Surface Warfare (ASW/SUW), Integrated Air and
    Missile Defense (IAMD), Amphibious Warfare (AMW), and Mine Warfare
    (MIW) and are engaged at every stage of a ship's training cycle. Our
    successes in the Red Sea are a direct reflection of our investments in
    high-end tactical training and advanced TTP development, spearheaded by
    SMWDC, Naval Air Warfighting Development Center (NAWDC), Naval
    Information Warfighting Development Center (NIWDC), and the WTIs in the
    Fleet.
        We also continue to adapt the expertise of our people in uniform to
    match the changing character of war. Similar to the establishment of
    our Maritime Space Officer community in 2021 and the creation of our
    Maritime Cyber Warfare Officer and the enlisted Cyber Warfare
    Technician rating last year, earlier this year, we established the
    enlisted Robotics Warfare Specialist (RW) rating to plan missions and
    operate and maintain remotely-operated and autonomous systems. The RW
    rating is a major milestone in the Navy achieving a hybrid fleet. These
    new areas of expertise are necessary to preserve our warfighting
    advantage, and also require a strong foundation of education.
                Education Initiatives
        We continue to prioritize education in support of force readiness.
    We provide a range of learning opportunities for our Sailors, Marines,
    and DON civilians to further develop their professional competencies
    and intellectual skills that enable our Naval force to succeed against
    competitors and adversaries, and effectively deter aggression. The DON
    is taking an integrated, enterprise-wise approach to improve naval
    education and prioritize programs that are critical for a competitive
    warfighting advantage. The Naval Education Strategy provides my
    guidance and vision to modernize naval education over the next 10
    years, and to more effectively deliver relevant, engaging, competency-
    focused, and outcomes-based education to the total force. The
    Department is implementing a continuum of learning for the entire
    force, integrating education into talent management frameworks for more
    precise and agile talent management, and strengthening the education
    institutions within our Naval University System.
        For example, the DON is directing $25 million towards developing
    the United States Naval Community College (USNCC). The USNCC ensures
    enhanced operational readiness by providing world-class, naval-relevant
    education entirely online to a globally deployable force. In September
    2023, USNCC completed Pilot II and enrolled approximately 3,500
    students, developed seven full associate degree programs in naval-
    relevant concentration areas, and validated the five Naval Studies
    Certificate courses that will be the core curriculum for every USNCC
    associate degree program.
        The USNCC is currently pursuing candidacy status and accreditation
    through the Middle States Commission on Higher Education. USNCC
    successfully navigated Phase 1 of the accreditation process and
    submitted the Phase 2 readiness report at the end of September 2023.
    The USNCC is on track to complete Phase 3 for academic accreditation by
    Fall 2024. Through the USNCC Consortium Agreement, degrees are
    currently granted to USNCC students through consortium partners
    Alexandria Technical and Community College, Arizona State University,
    Embry-Riddle Aeronautical University, Northern Virginia Community
    College, Tidewater Community College, University of Maryland Global
    Campus, and Western Governors University.
        The USNCC headquarters has been temporarily based in Quantico,
    Virginia. In January 2024, the Naval Education Board (NEB), an internal
    DON board that I established and Chair, voted unanimously to move the
    USNCC's permanent headquarters to the Security Force building on the
    campus of the United States Naval Academy in Annapolis, Maryland. At
    Annapolis, the USNCC staff and faculty will be able to better
    collaborate with the Naval Academy, and have access to the Nimitz
    Library, IT support, and ample conference facilities. The USNCC
    headquarters move will take approximately two and a half years to
    complete, and will require $30 million for relocation of the building's
    current occupants and $8 million for building renovation.
                Education for Seapower Advisory Board (E4SAB)
        Education is a key naval warfighting enabler, is essential for
    force development, and is a top DON priority for building a culture of
    warfighting excellence. Under the provisions of the Federal Advisory
    Committee Act, the Education for Seapower Advisory Board (E4SAB)
    provides the Secretary of Defense and Deputy Secretary of Defense, by
    way of my role as the Secretary of the Navy, with independent advice on
    matters relating to the Naval Postgraduate School, the Naval War
    College, and the Naval Community College. The E4SAB is a requirement
    for each institution's academic accreditation and meets at least twice
    a year. Chaired by the Honorable Sean O'Keefe, a former Secretary of
    the Navy and NASA Administrator, the board's membership includes
    leading experts in academia, business, national defense and security,
    management, leadership, and research and analysis. I have charged the
    E4SAB to provide recommendations regarding the Naval Education
    Strategy's implementation. I expect that the board's recommendations
    will inform the Department's efforts to improve education across our
    entire Naval University System.
                Recruiting/Retention
        To maintain a combat-ready Navy and Marine Corps, we focus both on
    recruiting motivated Americans and on retaining high quality Sailors,
    Marines, and civilians to meet our personnel needs. Despite a
    challenging and competitive environment, we are proud to highlight that
    the Marine Corps met its recruitment goal in FY23 and projects making
    all FY24 recruiting missions. While the Navy fell short of its FY23
    recruiting goals for Officer and Enlisted Sailors, both Active and
    Reserve, it has placed an increased emphasis on updating recruitment
    policies and expanding the eligible population by opening the aperture
    of qualified individuals within authorized parameters in an effort to
    address the continued challenges presented by a strong economy,
    competitive labor market, and other social and demographic factors.
        High retention is a direct reflection of the value our members
    place on their military service. In FY23, the Navy and Marine Corps
    exceeded their overall active duty enlisted retention goals and are on
    track to meet FY24 goals. We are leveraging financial incentives and
    programs to include special and incentive pays, early promotions, and
    assignment incentive pays to attract and retain Sailors and Marines in
    undermanned or difficult-to-fill positions and communities.
                Benefits and Pay
        To attract and retain top-tier talent, the DON understands the need
    to care for its people through competitive benefits and pay. Initial
    results of the Quadrennial Review of Military Compensation indicate
    that enlisted Sailors and Marines earn more than 83% of civilians with
    similar education and years working. In 2025, the Employment Cost Index
    (ECI)-based pay raise for our Sailors and Marines will be 4.5%,
    outpacing expected inflation for the second year in a row. Along with
    competitive pay, the Navy and Marine Corps boast attractive non-pay
    policies and programs, including childcare, healthcare benefits, the
    Career Intermission Program, spouse employment programs, graduate
    education, Tuition Assistance, focused geographic stability, dual-
    military co-location, and other programs that contribute to readiness
    and enhance quality of life. While the DON may provide pay and benefits
    beyond that of many civilian employers, we should--and will--always
    remember that we require our Sailors and Marines to serve for a minimum
    number of years and at times in combat, where they may make the
    ultimate sacrifice of their lives for our defense.
        To maintain our global posture and critical mission readiness, the
    DON has put in place aggressive strategies to recruit and retain highly
    skilled civilian employees. Currently, the DON uses multiple
    compensation systems that cover approximately 220,000 civilian
    appropriated fund employees to include General Schedule, Federal Wage
    System, Senior Executive Service, Wage Marine Pay Schedule, and various
    Demonstration Projects. In our effort to enhance our compensation
    program for civilian employees, the DON is currently reviewing our
    various pay systems with the goal to streamline or combine these to
    enhance our capabilities and effectiveness. Additionally, to mitigate
    challenges in recruitment and retention of our civilian workforce, the
    DON is working to request approval for enhanced compensation, which
    include special salary and wage rates as well as special pay incentives
    above the normal thresholds. Other available compensation strategies
    include accelerated training and promotion programs, student loan
    repayment programs, and advanced in-hire rates up to Step 10 for
    General Schedule employees and Step 5 for Federal Wage System
    employees.
                Quality-of-Service Improvements
        The DON prioritizes the continuous improvement of Quality-of-Life
    (QoL) and Quality-of- Service (QoS) advances. In May 2023, following
    the investigation into the suicides aboard USS George Washington and at
    Mid-Atlantic Regional Maintenance Center (MARMC), I released a joint
    memo with then-Chief of Naval Operations Admiral Gilday, Setting a New
    Course for Navy Quality of Service, which prioritized a sustained
    effort to correct the Navy's QoS. The memo established the Navy's QoS
    cross-functional team (CFT), and clear Commander's Intent provided the
    lines of effort focusing the CFT's efforts.
        The Navy's CFT, led by Commander, Navy Installations Command, is
    comprised of flag officers, senior civilians, and senior enlisted
    personnel from approximately sixty Navy organizations across both the
    Secretariat and the Fleet. The CFT is establishing standards and
    measures for Navy QoS, bringing those standards and measures to Newport
    News Shipbuilding prior to scaling them throughout the Fleet. We are
    constantly evaluating areas in which we are missing the mark for QoL
    and QoS enhancements and are finding new ways to improve how we support
    our Sailors and civilians.
                Housing
        Improving off-duty Quality of Life resources and initiatives for
    our Sailors and Marines is a focal point for the DON. This effort
    includes improving the quality of unaccompanied housing, with $1
    billion over the FYDP for barracks construction and renovations and
    $144 million allocated for housing sustainment and management. Under
    PB25, we are also investing $41 million in food and housing options for
    Sailors assigned to ships undergoing maintenance. We are investing $481
    million in restoration of unaccompanied housing, a 32% increase over
    PB24, and we are fully funding the sustainment of gyms. We have also
    established that no Sailors reside on-ship during maintenance
    availabilities and that berthing barges are available for duty section
    personnel.
        The Marine Corps' Barracks 2030 initiative lays out an ambitious
    plan to improve the Corps' management of the barracks, modernize the
    barracks inventory, and update the refresh rate of the materials in the
    barracks. With the support of Congress, the Marine Corps has
    implemented the Capital Planning Tool to leverage a tiered approach to
    facility lifecycle management that reduces footprint while prioritizing
    investments for the most critical facilities.
        We are committed to improving the living conditions for our Sailors
    and Marines who reside in unaccompanied housing, and will continue to
    work closely with Congress, including the House Armed Services
    Committee's Quality of Life Panel, to ensure transparency and
    collaboration on this important issue.
        We are also focused on the continuous improvement of our Military
    Housing Privatization Initiative program to maintain resident trust. We
    are reinforcing DON oversight and exercising active leadership to
    ensure that the community residing in privatized housing feels heard
    and supported. Over the past year, the DON Housing team has made great
    strides in moving the privatized housing program into the next phase of
    sustained oversight and dynamic leadership involvement. We continue to
    improve the tools we have developed to perform better analysis of our
    processes, policies, and the overall program to ensure higher levels of
    service and satisfaction for our Sailors, Marines, and their families.
    PB25 includes requests for $245 million for construction as well as
    $377 million for operations--including the management, services,
    furnishings, utilities, maintenance, leasing, and privatization
    support--in support of our family housing program.
        The DON remains committed to the early identification and
    resolution of housing issues, as well as improving processes and
    oversight to improve our residents' experiences. We are dedicated to
    providing suitable, affordable, and safe living quarters for our
    Sailors, Marines, and their families, and PB25 directly supports our
    efforts to do so.
                Family Readiness
        The DON views childcare as a workforce enabler that directly
    enhances the readiness, efficiency, and retention of our Sailors and
    Marines. The Navy and Marine Corps operate Child Development Centers
    (CDCs), Youth Centers for children ages 6-12, provide fee assistance
    for in-home care providers, and subsidize commercial spaces under a
    program titled Military Child Care in Your Neighborhood. There are
    seven 24/7 CDCs to accommodate shift workers and watchstanders in Fleet
    concentration areas and extended hours of operation at other locations.
    Together, the Navy and Marine Corps have approximately 42,000 childcare
    spaces world-wide and employ over 8,400 child and youth professionals.
        However, the demand for childcare exceeds the available inventory
    both on and off-base. Due to community and military capacity shortfalls
    and staff hiring, there are approximately 4,300 children on the
    waitlist. While this is a significant decrease from the 11,000 children
    on the waitlist in July 2021, we remain laser-focused on continuing to
    reduce our waitlist numbers. In FY23, Navy Child and Youth Programs
    (CYP) executed a contract with a commercial childcare provider to open
    forty-eight additional spaces near Naval Air Station Jacksonville, and
    the model will be replicated in San Diego and Norfolk. We are also
    expanding our on-base childcare capacity through ongoing military
    construction projects in Naval Base Kitsap, Naval Base Point Loma,
    Naval Support Activity Hampton Roads, and Joint Expeditionary Base
    Little Creek/Fort Story. The Marine Corps has four projects in planning
    for FY25-26 in Marine Corps Base Camp Pendleton, Anderson Air Force
    Base in Guam, Marine Corps Base Quantico, and Marine Corps Base Camp
    Butler.
        Due to frequent moves to new duty stations, spouse employment can
    be a concern for military families and an obstacle to financial
    security. The unemployment rate of military spouses is approximately
    21%, and earnings are typically less than those of their counterparts
    with equal experience in the private sector. They can be at a
    disadvantage when it comes to finding gainful employment, from
    occupational re-licensure to finding new schools or adequate and
    affordable childcare. The Navy and Marine Corps Employment Assistance
    Programs provide military spouses with information, referrals, and
    guidance counseling to assist in making effective career and education
    decisions. To address the challenges faced by military spouses and
    lower the financial burden associated with relocating, the Navy and
    Marine Corps provide reimbursement for Spouse Licensure and
    Certification. As of February 2024, the Navy and Marine Corps have
    reimbursed a combined total of 1,293 licensure claims to support the
    careers of our military spouses.
                Exceptional Family Member Program (EFMP)
        The DON is committed to providing our Navy and Marine Corps
    families with necessary assistance and care at their assigned
    locations. The Exceptional Family Member Program (EFMP) ensures Sailors
    and Marines are assigned to locations where the required medical
    services and educational support are available for families with
    special needs. Navy EFMP employs 117 personnel to support 23,516
    enrolled family members. The Navy has identified and initiated the
    process of establishing its central/single-site EFMP office at Navy
    Personnel Command under PERS-45 to coordinate health services,
    permanent change of station order processing, identification/
    enrollment/disenrollment, and educational support services; we expect
    full operation of the office by Q4 FY25. The Marine Corps is compliant
    with the requirement for a central office that reports to the Deputy
    Commandant for Manpower and Reserve Affairs.
        While most Navy and Marine Corps families are satisfied with EFMP,
    we continue to seek areas of improvement, namely in areas of medical
    and educational support. The Marine Corps was the first service to
    offer specialized legal support services to families to address
    education needs, and the Navy has implemented the provision of special
    education legal support to families. To address the medical issues, the
    Defense Health Agency is working to reduce the long wait times for
    specialty care.
                Mental Health and Resiliency
        Mental health is health. Mental health concerns remain a top
    priority within the DON. Admiral Franchetti, General Smith, and I are
    committed to ensuring our Sailors and Marines have access to the tools
    available to strengthen their mental health. We are also committed to
    ensuring that their leaders have the tools available to assist them in
    recognizing personnel who may require a mental health evaluation.
        Prioritizing mental health includes embracing a change in culture
    and view towards accessing mental health services--one which
    acknowledges that seeking help is a sign of strength. We are working to
    ensure our commanders, leaders, supervisors, and civilian and uniformed
    managers at all levels continue to normalize talking about mental
    health issues to destigmatize seeking mental healthcare, and ultimately
    encourage Sailors and Marines to make use of well-being resources
    throughout their careers.
                Brandon Act
        In July 2023, under ALNAV 054/23 and in alignment with the DoD
    Directive-type Memorandum 23-005, the DON implemented the Brandon Act.
    The Brandon Act honors the life of Petty Officer Third Class Brandon
    Caserta by allowing service members to self-initiate a mental health
    evaluation at any time, for any reason, and in any environment. There
    is a direct tie between mental health, overall well-being, and combat
    readiness. In order to ensure we are ready, we prioritize mental health
    as we do physical health and will continue to increase awareness of
    resources and services available to our Sailors and Marines. I will
    stress again that seeking help is a sign of strength.
                Military Justice Reform
        The DON has answered the call for meaningful change to our military
    justice practice. We are deliberately and comprehensively delivering
    the most significant reforms to the system in more than seventy years.
    The FY22 NDAA military justice reforms and SECDEF's Independent Review
    Commission (IRC) recommendations are top-priority initiatives for the
    Navy and Marine Corps judge advocate communities, and shortly after I
    became Secretary I established an Implementation Advisory Panel
    comprised of senior DON leaders whom I directed to oversee and expedite
    the adoption of the NDAA and IRC recommendations, including the timely
    establishment of the Office of Special Trial Counsel (OSTC) for each
    service, implementing independent prosecution offices for personal
    violence offenses, known as covered offenses.
        In October 2023, in advance of the December 2023 deadline set by
    the NDAA, both the Navy and Marine Corps OSTCs became fully
    operationally capable and are staffed by experienced, specialized, and
    well-trained legal professionals to ensure independent review of the
    most serious personal violence offenses in each service. The FY23 and
    FY24 NDAAs expanded upon the military justice reforms enacted by the
    FY22 NDAA, and the budget request for FY25 includes funding to support
    the sustainment and staffing of both OSTCs. My Implementation Advisory
    Panel proposed, and I agreed, that the independent investigation of
    sexual harassment allegations in the DON should be conducted by the
    Naval Criminal Investigative Service. We have provided additional
    resources to NICS for this important mission. We have also strengthened
    collaboration by integrating local OSTC counsel with NCIS Family and
    Sexual Violence squads.
        The Naval Court-Martial Reporting System (NCORS) is the DON's new
    electronic case management system, currently in its final stages of
    development to meet statutory requirements. It is a modern, cloud-based
    system that is easily configurable system and will enable the Navy and
    Marine Corps to better track and analyze military justice data and to
    respond to Congressional requests. PB25 includes additional funds for
    NCORS for expanded roles and functionality.
        Other important reforms include a new, military judge-alone
    sentencing system with parameters and criteria, expanded access by
    convicted service members to the appellate court system, broader
    notification rights for crime victims, randomized selection of service
    members detailed to court-martial panels, new procedures for complaints
    of sexual harassment, and increased resources for defense counsel.
        Military justice reform remains an ongoing and evolving effort, and
    both services are continually assessing the efficacy of new policies
    and practices and are ready to adjust as needed. The Navy and Marine
    Corps judge advocate communities, in close partnership with the OSTC
    regarding covered offenses, are spearheading initiatives for the
    Department of the Navy to develop a comprehensive, ongoing assessment
    framework using a wide range of qualitative and quantitative factors.
    These assessments include a newly developed military justice reform
    survey to obtain victim and other user input on their perception and
    confidence in the system as the significant military justice reforms
    are implemented.
                Audit Process
        After a two-year audit cycle across FY22 and FY23, the Marine Corps
    passed its financial statement audit with a clean opinion, successfully
    accounting for more than $46.3 billion in assets. The Navy is
    undergoing its seventh full financial statement audit of the Navy
    General Fund (GF) and the DON Working Capital Fund (WCF) in FY24. We
    continue to execute our proven strategy focused on transformational
    changes geared towards our most impactful areas that includes
    consolidating the number of feeder and accounting systems the Navy
    uses, accounting for and valuing the Navy's mission-critical assets,
    supplying the warfighter, and enhancing cybersecurity.
        In FY23, the DON sustained all prior year material weakness
    downgrades and downgraded three additional material weaknesses ahead of
    schedule--GF Fund Balance with Treasury and GF and WCF Oversight and
    Monitoring. In addition, the Navy closed 306 financial and information
    technology audit findings, leading all Services in FY23 closures, and
    concluded the fourth year of 100 percent physical inventory testing,
    achieving 99.5 percent inventory accuracy for 11 million items. Even
    with the size and complexity of the DON, our audit strategy is
    generating proven results validated by our auditors.
    Enhancing Strategic Partnerships
        In addition to Strengthening Maritime Dominance and Building a
    Culture of Warfighting Excellence, the President's Budget for Fiscal
    Year 2025 enables us to continue our work in enhancing our Strategic
    Partnerships, both at home and abroad.
                International Partnerships
        In every region where our Sailors and Marines operate, we do so
    alongside our international partners. The relationships we enjoy with
    our allies and partners are unparalleled by our potential adversaries,
    and we are proud to enjoy the friendship of like-minded nations who
    share our commitment to upholding the rules-based international order
    that has brought relative stability and prosperity to billions of
    people over the last several decades. Foundational to our international
    partnerships is the trust our Sailors and Marines share with their
    counterparts--a trust that is developed through countless exercises and
    operations.
        Over the past year, I have been fortunate to attend several
    bilateral and multilateral exercises in person, including UNITAS 64 in
    South America and TALISMAN SABRE in the Indo-Pacific. During every
    exercise, I was impressed by the skills of our partners and the esprit
    de corps shared between our Sailors, our Marines, and their
    international counterparts. With each evolution, the power of our
    combined maritime forces was on full display, and I look forward to
    opportunities this year to observe the increasing interoperability and
    cooperation with our allies and partners at events such as Rim of the
    Pacific 2024, scheduled for this summer in Hawai'i.
        Exercises are only one facet of our strategy to engage with our
    international partners and allies. At a macro level, the United States
    Navy and Marine Corps remain committed to supporting our longstanding
    NATO alliance--an alliance which now includes Finland and Sweden--
    especially as our European allies continue to address security concerns
    presented on their borders by Russia. We also are committed to our
    partners in Africa, where last year I attended the first-ever U.S.-
    hosted African Maritime Forces Summit, held in Cabo Verde.
        In the Indo-Pacific, we are focused on ensuring the success of
    AUKUS, a generational security partnership that both provides our
    Australian allies with a nuclear-powered, conventionally-armed
    submarine fleet and fosters advanced technology development among
    Australia, the United Kingdom, and the United States in several
    critical areas, including undersea capabilities, artificial
    intelligence, and machine learning, cyber, and hypersonics. As part of
    AUKUS, the Australian government's contribution to the U.S. Submarine
    Industrial Base starting in FY25 will supplement our own SIB
    investments. These investments will facilitate increased U.S.
    production of future Virginia-Class submarines, which will offset the
    impacts to the U.S. submarine fleet caused by the sales of one in-
    service Virginia SSN in 2032 and a second in-service SSN in 2035 to
    Australia in accordance with Congressional authorization, as well as a
    new-construction submarine which will be sold to Australia in 2038. We
    are grateful for the support of this committee in our work to ensure
    the success of the AUKUS partnership, which will further our goal of
    maintaining a free and open Indo-Pacific region for decades to come.
                Guam
        As we continue to strengthen our international partnerships, we are
    also focused on building and maintaining our relationships here in the
    United States with the state, territorial, and local governments across
    the many communities that support our Sailors, Marines, civilians, and
    their families. As such, we are deeply involved with the government and
    citizens of Guam. Our Department is on track to begin the movement of
    Marines from Okinawa to Guam in support of the Defense Policy Review
    Initiative, with the relocation of Marines slated to begin in the first
    quarter of FY25. The end state of this personnel movement is projected
    to leave 11,500 Marines on Okinawa, while stationing 7,000 Marines on
    Guam. I am also pleased to highlight that our Under Secretary of the
    Navy was appointed by the Deputy Secretary of Defense to serve as the
    Senior Defense Official for Guam (SDOG). In this role, Under Secretary
    Raven will serve as the DoD's senior representative when meeting with
    key leadership and stakeholders in Guam. He will also provide senior
    leadership oversight and support to Commander, Joint Region Marianas in
    the execution of on-island activities and will liaise with the Army,
    Air Force, USINDOPACOM, USD (A&S), USD (R&E) to ensure we are aligned
    in the capability development and delivery of logistics and
    infrastructure requirements.
        As we face the unprecedented pace of our mission growth on Guam,
    infrastructure and facilities are required to support the expansion of
    our on-island infrastructure footprint. In support of our military
    construction and family housing construction projects, totaling $2.9
    billion across the FYDP, we greatly appreciate Congress' approval of an
    extension of the H2B visa program through 2029, which will provide
    measures to offset workforce capacity challenges in support of our
    missions on Guam. We are committed to working with our government
    partners and stakeholders on Guam, as well as our partners across the
    DoD, to ensure the success of the transition of our personnel. We
    appreciate this committee's support as we carry out this process in a
    disciplined, sustainable manner that will enhance the readiness of our
    forces throughout the Indo-Pacific.
                Industry Partnerships
        Beyond international and local partnerships, we are also committed
    to ensuring that the defense industrial base on which we rely remains
    responsive to our acquisition requirements. PB25 invests $4.0 billion
    in our Submarine Industrial Base to support submarine new construction
    and sustainment, as well as $227 million in the weapons industrial base
    to increase surge production and suppliers for critical components.
    These investments are vital to maintaining the health of key industries
    that play a significant role in the lethality of our Fleet and our
    Force--industries from which we cannot afford to accept production
    delays.
        We continue to pay special attention to increasing our engagements
    with small businesses throughout the defense ecosystem. As a former
    small business owner, I know just how critical this segment is, and I
    also know the incredible amount of expertise and know-how these firms
    bring in support of our Sailors, Marines, and civilians. The DON
    continues to explore all opportunities to increase prime awards to for
    Small Businesses (SB), including but not limited to increased outreach
    to the SB industrial base via conferences and Navy Weeks, monitoring
    subcontracting performance and trends of our large prime partners, and
    continuing to stress the importance of disaggregation of expiring
    contracts to give a possible greater allocation to small businesses. As
    a direct result of these strategic initiatives, the DON has increased
    spending with SBs by 30% over the last three fiscal years, with SDBs
    experiencing a similar 30% increase over that same time period. Both SB
    and SDB set new records for prime awards in FY23, with Small Businesses
    receiving over $20B in prime awards from the DON (an increase of $1.5B
    over FY22); Small Disadvantaged Businesses received $7.6B in prime
    awards from the DON (an increase of $680M over the prior record of
    $6.9B set in FY22). For FY24, we are on-track to meet our Small
    Business goals and remain committed to doing so during FY25.
        Beyond capital investments and engagements with small businesses,
    we continue to partner with industry and academia in workforce
    development initiatives. This past October, I attended the
    groundbreaking ceremony for a new, purpose-built regional training
    center in Danville, Virginia, that will expand workforce training
    opportunities in ``new-collar'' trades--those that combine
    traditionally blue-collar jobs with cutting-edge technologies--which
    are crucial to submarine and ship construction. This regional training
    center demonstrates the progress that can be achieved when local,
    state, and Federal governments, as well as industry and academia, come
    together and collaborate in support of a noble cause. Danville can and
    should serve as a model for nation-wide training programs that provide
    Americans with the skillsets necessary to achieve employment in good-
    paying jobs while also contributing to our national security.
        Last month, I received the results of the 45-Day Shipbuilding
    Review, conducted by my Assistant Secretary of the Navy for Research,
    Development, and Acquisition and Commander, Naval Sea Systems Command.
    This review illuminated the delays we are experiencing across several
    major shipbuilding programs and highlighted the challenges faced by
    both industry and the Navy to deliver ships and submarines on time. Our
    Department undertook this review to both provide transparency to
    Congress and identify steps we can take to develop a more realistic,
    pragmatic approach to shipbuilding. We are building a process and a
    team to reduce delays in ship and submarine deliveries with our
    industry partners, and we appreciate the continued support of this
    committee as we endeavor to ``Get Real, Get Better'' on shipbuilding.
        As we invest in the capacity, workforce, and capabilities of our
    industry partners, we must also give due consideration to holding
    industry accountable for the work they are contracted to perform. It is
    of utmost importance that the American people receives the best value
    for taxpayer dollars, and the Taxpayer Advocacy Project (TAP) ensures
    just this. TAP leverages DON subject matter expertise to research
    recurring contractor issues and legal solutions, educate Program
    Executive Officers, Program Managers, Contracting Officers, and DON
    attorneys on available legal tools to improve contractor performance,
    and assist those same stakeholders in identifying and clearing any
    Pentagon or vendor barriers to deliver contracted material and services
    on behalf of the warfighter and the taxpayer. TAP supports my
    priorities by positively impacting readiness improvement, ensuring that
    our Sailors and Marines are well-equipped, that contract cooperation is
    flowing both ways, and that the DON receives what it paid for on-
    budget, on-schedule, and on-performance.
                Maritime Statecraft
        This past September, during my remarks at Harvard University's
    Kennedy School of Government, I called for a new vision of Maritime
    Statecraft to prevail in this era of intense strategic competition.
    Maritime Statecraft encompasses not only naval diplomacy but also a
    national, whole-of-government effort to build comprehensive U.S. and
    allied maritime power, both commercial and naval. Our Nation's most
    prominent naval strategist, Alfred Thayer Mahan, argued that naval
    power begets maritime commercial power, and control of maritime
    commerce begets greater naval power. The PRC's leaders have read Mahan,
    and their actions show it.
        As the PRC has built up its commercial and naval fleets and gained
    influential ownership in ports around the world, U.S. commercial
    maritime power has declined precipitously. Today, the PRC is the
    world's largest builder of commercial, ocean-going ships, with over 40%
    of the global market being built in Chinese shipyards. More concerning
    still, Beijing leverages its dominant commercial shipbuilding capacity
    and modern commercial shipyards and infrastructure to efficiently
    produce its naval fleet. Chinese shipping firms have come to dominate
    the worldwide commercial shipping industry. They have established an
    ownership stake in 95 ports across 53 countries worldwide, including in
    many of our own ports and those of our allies. They also field the
    world's largest global fishing fleet and the third largest merchant
    marine fleet with more than 7,000 ships, compared to the United
    States--ranked 70th--with 178.
        Since entering office in August 2021, I have engaged across our
    Federal government--with the White House, the Department of
    Transportation, the Department of Homeland Security, Department of
    Commerce, the Office of the U.S. Trade Representative, and throughout
    the DoD--to bring attention to this issue and explore what authorities
    we can leverage to support the revitalization of our national
    shipbuilding industry. For example, Secretary Buttigieg and I had a
    productive discussion regarding our shared Title 46 authority in the
    Construction Differential Subsidy that allows the U.S. Government to
    offset the higher cost of building a commercial ship in the United
    States relative to foreign shipyards provided the Secretary of
    Transportation and the Secretary of the Navy certify a national
    security purpose for the vessel. I have likewise welcomed the United
    States Trade Representative's in-depth engagement on boosting the
    proportion of U.S. international trade carried on U.S.-flag vessels--
    today, less than one half of 1 percent of U.S. international exports
    and imports sail on U.S.-flagged merchant ships, almost all of which
    are foreign-built.
        My team and I have toured private shipyards across our Nation, from
    Bayonne, New Jersey, and Philadelphia, Pennsylvania, to Vallejo and
    Richmond, California, to better understand the capacity and workforce
    challenges these yards face. In February, I held engagements with the
    leadership of major shipbuilders in Japan and South Korea to gain a
    better understanding and appreciation for how they construct commercial
    and naval vessels in modern shipyards. I was enormously gratified by
    the strong interest expressed by the leaders of these world-class
    shipbuilders in establishing U.S. subsidiaries and investing in
    shipyards in the United States--and I could not be more excited at the
    prospect of these companies bringing their expertise, their technology,
    and their cutting-edge best practices to American shores.
        In mid-November, I convened the inaugural meeting of the Government
    Shipbuilders Council at the Coast Guard's only public yard in
    Baltimore, Maryland. This new organization, comprised of
    representatives from the Departments of Transportation, Commerce,
    Homeland Security, and Defense, and our five government shipbuilding
    partners--MARAD, Coast Guard, NOAA, and the Army--will discuss how we
    can work together to collectively engage with industry, address common
    challenges, and share best practices.
        All of these are early steps, and there is still much work to be
    done. We welcome Congress' collaboration and support as we continue our
    Department's work on Maritime Statecraft with our counterparts in other
    Federal departments and agencies, industry, academia, and our
    international allies and partners. Revitalizing our comprehensive
    maritime power is a generational endeavor, requiring sustained,
    bipartisan commitment at the national level. Though the road ahead may
    be long, not a moment's time should be lost in embarking on a task so
    essential to our country's security and prosperity.
                                    closing
        As I close, it is important to remember that the missions we send
    our Sailors and Marines on every day are anything but routine and, in
    most cases, extremely dangerous.
        In January, we suspended the search for two U.S. Navy SEALS we lost
    at sea--Petty Officer First Class Christopher Chambers and Petty
    Officer Second Class Nathan Ingram--during the seizure of lethal,
    Iranian-supplied advanced conventional weapons to the Houthis.
        And in February, we lost five Marines in a training accident--Lance
    Corporal Donovan Davis, Sergeant Alec Langen, Captain Benjamin Moulton,
    Captain Jack Casey, and Captain Miguel Nava--assigned to the ``Flying
    Tigers'' of Marine Heavy Helicopter Squadron 361.
        As we mourn the loss of these brave Americans, their fellow Sailors
    and Marines continue to deploy around the globe. We honor their legacy
    by protecting the families they left behind and by upholding the ideals
    and principles that they gave their lives for.
        The investments we ask you to make in our Navy and Marine Corps
    represent more than just buying ships, aircraft, and submarines,
    developing new capabilities, or bolstering the resiliency of the
    critical infrastructure we rely on. It is about supporting our men and
    women, both uniformed and civilian, and their families, who have
    committed their careers and indeed their lives in defense of our
    Nation.
        I am grateful for the continued bipartisan support of this
    committee, and I look forward to working with all of you to advance our
    Nation's security with a Navy and Marine Corps that possesses the
    enduring advantages required to uphold our nation's interests in
    peacetime, deter potential adversaries in crisis, and win decisively in
    war.
        May God continue to grant the United States of America and its
    people fair winds and following seas. Thank you.

        Senator Tester. Secretary Del Toro, thank you. Thank you
    for the statement.
        Next, we will have Admiral Franchetti. Admiral.
    STATEMENT OF ADMIRAL LISA FRANCHETTI, CHIEF OF NAVAL
                OPERATIONS
        Admiral Franchetti. Chairman Tester, Vice Chair Collins,
    Distinguished Members of the Committee, good morning and thank
    you for the opportunity to testify on the posture of the United
    States Navy.
        On behalf of all our sailors, Navy civilians and their
    families, deployed and stationed all around the world, thank
    you for your leadership and your continued support in providing
    and maintaining the Navy the Nation needs.
        I'd also like to thank my teammate, General Smith, for his
    exceptional partnership and collaboration as we guide our
    services under the leadership of Secretary Del Toro.
        Flanked by two oceans, the United States is and always has
    been a maritime nation whose security and prosperity rely on
    access to the sea and for over 248 years the U.S. Navy has
    guaranteed that access, operating forward, defending our
    homeland, and keeping open the sea lines of communication that
    fuel our economy and underwrite our Nation's security.
        The events of this past year and the actions taken by your
    Navy/Marine Corps team in the Indo-Pacific, in the
    Mediterranean, in the Red Sea, and beyond underscore the
    enduring importance of American naval power.
        With an average of a 110 ships and 70,000 sailors and
    Marines deployed on any given day, the Navy/Marine Corps team
    is delivering power for peace, deterring potential adversaries
    and standing ready to fight and win our Nation's wars if
    deterrence fails. I could not be more proud of this team.
        No other Navy in the world can train, deploy, and sustain
    such a lethal combat-credible force that operates from the
    seabed to space at the scope, scale, and tempo that we do.
        This year's budget request supports the National Defense
    Strategy and my priorities of warfighting, warfighters, and the
    foundation that supports them. It enables the Navy to continue
    to meet our congressionally mandated mission in both peace and
    war.
        It is strategy-driven, maintaining our focus on the
    People's Republic of China as the pacing challenge, the acute
    threat of Russia, and other persistent threats, like the
    Democratic People's Republic of Korea, Iran, and violent
    extremist organizations.
        Given the discretionary spending caps prescribed by the
    Fiscal Responsibility Act and the top line increase of .7
    percent, the Navy had to make tough choices, favoring near-term
    readiness, investing in our industrial base, and prioritizing
    our people, while assuming risk and future capabilities.
        Within this fiscally-constrained environment, the budget
    request fully funds the Navy's top acquisition priority and the
    most survivable leg of our strategic deterrence, the Columbia
    Class submarine.
        It provides funds for six battle force ships and
    incremental funding for two Ford Class Carriers in fiscal year
    2025 and continues our support for Marine Corps Force Design by
    maintaining 31 amphibious ships, procuring three LPDs (landing
    platform, dock) , one LHA (landing helicopter assault), and
    eight Medium Landing ships. In total, the budget request
    procures 57 ships across the FY DP.
        This budget request prioritizes warfighting by funding our
    operations training and readiness accounts. It continues our
    strong commitment to our warfighters and our families through
    pay raises for our sailors and Navy civilians and investments
    in quality of service initiatives, such as unaccompanied
    housing, education, childcare, and sailor resiliency, and it
    invests in our foundation with funding for our installations,
    for our Shipyard Infrastructure Optimization Program, and for
    the broader Defense Industrial Base, sending a strong signal to
    our industry partners on the need to increase our capacity to
    meet the growing demands of the present and the future.
        As Chief of Naval Operations, I am committed to pulling
    every lever available to me to put more ready players on the
    field, platforms that are ready with the right capabilities,
    weapons, and sustainment and people who are ready with the
    right skills, tools, training, and mindset to defend our
    nation's security and prosperity wherever and whenever it is
    threatened.
        I thank the committee for your leadership and your
    partnership in ensuring the world's premiere warfighting force
    remains ready to preserve the peace, respond in crisis, and win
    decisively in war if called.
        I look forward to your questions.
        [The statement follows:]
              Prepared Statement of Admiral Lisa Marie Franchetti
                                  introduction
        Chairman Tester, Ranking Member Collins, distinguished members of
    the Committee, thank you for the opportunity to testify on the posture
    of the United States Navy. On behalf of our Sailors, Navy civilians,
    and families deployed and stationed around the world, thank you for
    your continued leadership and support. Thank you for ensuring our Navy-
    Marine Corps team remains ready for prompt and sustained combat
    incident to operations at sea as well as for recognizing in law our
    Navy's role in the peacetime promotion of our Nation's national
    security interests and prosperity. Your commitment guarantees that our
    Navy is always postured and ready to deliver power for peace, respond
    in crisis, and win decisively in war.
                    america's identity as a maritime nation
        Flanked by two oceans, the United States is and has always been a
    maritime nation. Our economy, like the world's economy, flows through
    the sea. Ninety percent of global trade travels by sea. Ninety-five
    percent of international communications and roughly 10 trillion dollars
    in financial transactions each day transit via undersea fiber-optic
    cables. In the U.S., seaborne trade carries more tonnage and value than
    any other mode of transportation, generating 5.4 trillion dollars in
    annual commerce and supporting 31 million American jobs. There is no
    doubt: the seas are the lifeblood of our economy, our national
    security, and our way of life.
        For 248 years, Congress has provided and maintained a Navy-Marine
    Corps team that has preserved America's access to the seas. From the
    founding of our Nation to the World Wars of the 20th century, America's
    naval forces have fought and won our Nation's battles to keep open the
    sea lines of communication that guarantee our prosperity and security.
    In every ocean, we uphold and protect the post-World War II rules-based
    international order that we fought to establish and have continued to
    defend for nearly three quarters of a century.
                           the geopolitical landscape
        Our Nation's security and prosperity, and by extension the rules-
    based international order, is under threat from multiple fronts across
    all domains, including the maritime. The People's Republic of China
    (PRC), Russia, Iran, the Democratic People's Republic of Korea (DPRK),
    and Violent Extremist Organizations (VEOs) desire to rewrite the global
    rules-based order for their own political, military, and economic
    interests. They threaten access to waterways, ports, and key logistics
    hubs, which are critical to the U.S. and the global economy. They seek
    to control key maritime chokepoints like the Taiwan, Hormuz, and Bab
    al-Mandeb Straits in order to exploit sea control and subsequently deny
    the U.S. Navy, U.S.-flagged, and other internationally flagged
    commercial shipping freedom of maneuver.
        As the National Defense Strategy (NDS) makes clear, the PRC is
    America's pacing challenge, representing the most comprehensive and
    serious challenge to our national security. It is the only country with
    both the intent to reshape the international order and, increasingly,
    the economic, diplomatic, military, and technological power to do so.
    Its coercive and aggressive behavior threatens to refashion the Indo-
    Pacific region and the international system to suit its interests and
    authoritarian preferences. Over the last twenty years, the PRC used its
    considerable economic wealth to revolutionize its maritime capability
    to rival and contest ours. In that short time, the PRC tripled the size
    of its Navy and is on pace to surpass 400 ships by 2030.
    Simultaneously, it has created a world-wide network of ports, railways,
    and roads through its Belt and Road Initiative, expanded its strategic
    nuclear capacity, advanced its offensive and defense cyber and space
    capabilities, built up its rocket force, created man-made islands to
    extend its vast territorial claims over the South China Sea, and
    developed sophisticated munitions in an attempt to keep the United
    States military and our Allies and partners at range.
        Russia continues to challenge American interests and to pose an
    existential threat to our Allies and partners in the North Atlantic
    Treaty Organization (NATO) as evidenced by its unprovoked, unjust, and
    reckless invasion of Ukraine. Russia has the world's largest nuclear
    arsenal, is battle- hardened, and is on a wartime economic footing. It
    continues to violate the core principles that uphold global peace and
    security, seeking to change borders of sovereign countries by force. We
    will continue to work with our Allies and partners to blunt Russian
    aggression and support Ukraine in its fight for territorial integrity
    and democracy.
        Other persistent threats include the DPRK, Iran, and VEOs. The DPRK
    continues to expand its nuclear and missile capability to threaten the
    U.S. homeland, deployed U.S. forces, and our Allies and partners in the
    region, most notably Japan and South Korea. Iran continues to
    destabilize the Middle East with its support for militant groups'
    malign activities, its advancing nuclear program, and its harassment of
    maritime commerce in the Strait of Hormuz and the Arabian Sea. It
    continues to build and export missiles and missile architecture,
    unmanned aerial vehicles (UAVs) systems, and advanced maritime
    capabilities to VEOs worldwide--not just in the Middle East. Most
    notably this year, the world saw Iranian weapons used by the Houthis to
    disrupt the free flow of maritime commerce in the Red Sea.
                   navy's fy25 strategy-driven budget request
        The Navy's budget request for FY25 funds a strong, global Navy that
    is postured and ready to deter potential adversaries, protect our
    homeland, respond in crisis, and, if called, win decisively in war.
    Nested under the National Security Strategy (NSS) and NDS, the Navy's
    FY25 budget request is strategy driven with a focus on the PRC as the
    pacing challenge, while keeping a weather eye on the acute threat of
    Russia and other persistent threats like the DPRK, Iran, and VEOs. It
    supports the United States Marine Corps Force Design, implements
    Distributed Maritime Operations (DMO), and executes the 2022 Chief of
    Naval Operations Navigation Plan. It fully funds the Columbia-class
    submarine and the nuclear architecture that underpins it, allocates
    resources to our operations and readiness accounts that will keep our
    naval forces forward to defend our global interests, prioritizes
    resources to fund the Submarine Industrial Base (SIB), and maintains 31
    amphibious ships per our Title 10 requirement.
        However, the 2023 Fiscal Responsibility Act (FRA) imposed
    constraints that required us to make hard choices. Given the
    discretionary spending caps and the 0.7 percent topline increase, the
    Navy's FY25 budget request favors readiness for the near-term fight and
    the need to meet our congressionally-mandated peacetime mission over
    the modernization we will need for the future.
        As our Nation's founders recognized, naval power is--and will
    continue to be--an essential element of our national security. The
    actions your Navy has taken this year in the Indo-Pacific, the Eastern
    Mediterranean Sea, the Red Sea, and elsewhere to defend American
    interests are a direct result of years of readiness investments in our
    Navy-Marine Corps team. Our actions illustrate how past investments and
    decisions made by our leaders in Congress, the Navy, and industry
    affect our ability to meet our mission today. More importantly, our
    Sailors' actions on, under, and above the seas to defend the rules-
    based international order demonstrate the value of investing in a
    strong naval force.
        Within this constrained fiscal environment, we must continue that
    investment in our Navy- Marine Corps team to meet the threats of this
    challenging environment. We must put more ready players on the field--
    platforms ready with the right capabilities, weapons and sustainment
    and people who are ready with the right skills, tools, training, and
    mindset--to ensure we are fully prepared to fight and win our Nation's
    wars in this decisive decade. We cannot afford to keep players on the
    field that can no longer contribute to our ability to win decisively.
    The Navy's FY25 budget reflects that need and reflects my priorities of
    Warfighting, Warfighters, and the Foundation that supports them that I
    set forth in my America's Warfighting Navy document in January 2024.
                 warfighting: delivering decisive combat power
        The Navy views everything through a warfighting lens. Operating in
    support of the NSS, NDS, and National Military Strategy, the United
    States Navy is a critical element of the Joint Force, upholding
    international norms, providing access to free and open oceans, and
    ready to deliver decisive combat power as part of a Joint and Combined
    Warfighting Ecosystem. The FY25 budget request ensures our ability to
    execute globally distributed sea control and sea denial and guarantees
    our ability to fight and win our Nation's wars, if called.
        Strategic Deterrence Investments. The FY25 Budget Request fully
    funds the Nation's top defense acquisition priority and the Navy's
    contribution to our strategic deterrence: the Columbia-class ballistic
    missile submarine, the second life extension of the Trident II D5
    Ballistic Missile, and the Take Charge and Move Out (TACAMO) command,
    control, and communications suite.
        Procurement Investments. With 88 ships on contract and 66 under
    construction already, the FY25 request invests $32.4 billion in
    shipbuilding, funding six battle force ships (one Virginia-class
    submarine, two Arleigh Burke-class destroyers, one Constellation-class
    frigate, one San Antonio-class amphibious transport dock, and one
    Medium Landing Ship) and providing incremental funds for two Ford-class
    aircraft carriers (CVN 80 and CVN 81) and the USS Harry S. Truman (CVN
    75) Refueling and Complex Overhaul. The budget request funds a total of
    $189 billion across the FYDP for 57 total battle force ships.
        Notably, the budget requests $7.3 billion for the procurement of
    the first Virginia-class Block VI submarine and will initiate a nine-
    ship planned multi-year procurement beginning in FY25. It funds two
    Arleigh Burke class destroyers, including completion funds for three
    FY23 and two FY24 ships, and continues investment in the Constellation-
    class frigate program, which gets more players on the field with
    increased lethality, survivability, and capability. Additionally, it
    bolsters our investment in the Navy-Marine Corps team and our
    commitment to USMC Force Design and the Expeditionary Advanced Base
    Operations concept by maintaining 31 amphibious ships, providing $1.6B
    in FY25 to the fourth San Antonio Class LPD FLT II, adding funds across
    the FYDP to support amphibious ship recapitalization in LPD Flight IIs
    in FY27 and FY29, and funding 8 Medium Landing Ships through the FYDP.
        Ship Decommissionings and Divestments. The FY25 budget requests the
    decommissioning of 19 ships, 9 of which have completed their normal
    lifecycle and 10 that are divestments before the end of their expected
    service life. This is a return on investment decision, based on a hull-
    by-hull assessment of each ship's material condition, life remaining,
    cost and time to upgrade, and warfighting relevancy.
        Readiness Investments. Our Navy must be able to put players on the
    field that are ready with trained crews, ships and aircraft ready to
    operate, and with capable weapons systems and munitions. Despite FRA
    constraints, the Navy's FY25 budget request provides $34.6 billion--an
    overall increase of $200 million from the FY24 request--to Fleet
    readiness to support flying and underway steaming at levels that
    support our Fleet's global operations. It funds the reality that
    readiness is the key enabler for naval superiority and that ship,
    submarine, and aviation operations are the Navy's core capability and
    the foundation of maritime dominance.
        The FY25 request funds $7.6 billion--an increase of $600 million
    from the previous year--in ship operations, providing the fuel, parts,
    and support necessary to train the Fleet and deploy it worldwide and
    investing in the critical maintenance for Military Sealift Command's
    support ships. The budget request supports a Fleet average of 58 days
    underway per quarter for deployed ships and 24 days per quarter for
    non-deployed ships. Out of the total $10.6 billion in Navy-Marine Corps
    flight operations funding, the budget request funds $6.8 billion in
    Navy flight operations, funding approximately 600,000 Navy flying hours
    to resource Fleet preparation and execution of training and operational
    requirements.
        In regards to maintenance, we must get our ships, submarines, and
    aircraft in and out of their availabilities on time and on cost. The
    budget request funds $14.5 billion in ship maintenance, including 58
    ship availabilities, and covers private contracted availabilities as
    well as the Navy's four public shipyards, regional maintenance centers,
    and intermediate maintenance facilities. It also provides $1.3 billion
    in aviation maintenance that paces the Fleet Flying Hour Program,
    funding 328 airframe and 1,486 engine events and sustaining aviation
    investments in depot overhauls and aircraft spares to increase mission
    capable aircraft numbers.
        Sealift Investments. The Navy is committed to meeting Strategic
    Sealift mobility requirements by recapitalizing the Ready Reserve Fleet
    and the Maritime Prepositioning Force with a combination of used
    vessels and new construction vessels. To achieve this, the Navy is
    building a Sealift Campaign Plan to focus on a whole-of-strategic-
    sealift approach across the entirety of sealift prepositioned and surge
    assets. A key element of this plan is continued implementation of the
    congressionally-provided authorities to address strategic sealift
    readiness and recapitalization through the Buy-Used Program, which
    purchases used sealift vessels to replace older, aging vessels
    currently in the Maritime Administration's (MARAD) Ready Reserve Fleet.
    To date, the Navy has procured five ships through the Buy-Used Program
    and plans to procure two more in FY24 and two more in FY25, which will
    meet the congressionally mandated limit. The Navy supports modifying
    the current congressional restrictions on the Buy-Used Program to allow
    the Secretary of Defense authority to purchase foreign built, used
    vessels without limitations. This authority would allow the Navy to
    accelerate surge sealift Fleet recapitalization immediately, while
    continuing to support U.S. shipyard industrial base.
        The FY25 budget request continues this current recapitalization
    strategy to buy and modify two used vessels per year across the FYDP,
    while executing the current planned retirement schedule. The Buy-Used
    program provides a stable acquisition profile with forecasted
    maintenance and repair costs to meet strategic mobility requirements at
    a moderate level of risk. Additionally, the Navy is partnering with
    MARAD and USTRANSCOM to develop requirements for a range of new sealift
    construction options from basic sealift vessels for the Ready Reserve
    Force to purpose-built Maritime Prepositioning Force vessels.
        Investments in the Hybrid Fleet. The Navy continues to invest in
    its hybrid fleet and in the enabling capabilities that will support all
    current and future unmanned programs of record. By leveraging America's
    unmatched innovation base, the Navy intends to augment our highly
    capable, existing platforms with a host of optionally manned and
    unmanned platforms operating under, on, and above the seas. This will
    extend our reach, expand our ability to distribute our forces, and
    enable us to deliver larger volumes of kinetic and non-kinetic effects
    across all domains to fully support the Joint Force. These technologies
    are being developed in Navy laboratories, with industry partners, and
    onboard the Navy's unmanned prototypes and tested in real-world
    scenarios.
        To deliver these capabilities at the speed of relevance, the Navy
    is working to improve the acquisition process. The Navy's newly
    established Disruptive Capabilities Office (DCO) is focused on the most
    promising, game-changing technologies and getting them from prototype,
    to scale, and into the hands of our warfighters as quickly as possible.
    The DCO reports directly to me and the Secretary of the Navy.
    Simultaneously, the Navy is fully supporting OSD's Replicator effort
    and Defense Innovation Unit to rapidly procure and scale technologies
    that will ensure our warfighting advantage.
        Network Investments. In order to ensure warfighting advantage, we
    must guarantee decision superiority for our warfighters. With this in
    mind, the FY25 budget request invests $140M in FY25 with a total of
    $716M across the FYDP in Project Overmatch. Through Project Overmatch--
    the Navy's contribution to Combined Joint All Domain Command &
    Control--we are fielding the connective tissue for today's Fleet, while
    developing and experimenting with what is needed for our hybrid fleet.
    Using modern software methods and pipelines, we are fielding software-
    based networking technologies to provide as many pathways to connect
    and share information as possible, as well as software applications
    that aid decision makers and planners in executing DMO. To date we have
    fielded our first increments of Project Overmatch across multiple
    Carrier Strike Groups and shore command nodes. The FY25 budget request
    will fund our follow-on increments of this capability, while growing
    the architecture, adding resilience and redundancy to our
    communications paths, and expanding into additional domains in
    conjunction with our Joint partners and Allies.
        To provide more secure, resilient, and reliable means to C2 our
    naval forces, the FY25 request continues procurement and installation
    of satellite communications systems to include Satellite Terminal
    (transportable) Non-Geostationary Terminals, and Portable Receive
    Terminals as well as a wideband anti-jam modem system that protects
    vital SATCOM links. Our investments will result in the modernization of
    the Automated Digital Network System to a Software-Defined Network that
    will increase capacity and capability afloat and ashore for operational
    continuity. This investment supports our operational architecture and
    creates tangible warfighting advantages by providing access to
    resilient, high-speed, low-latency bandwidth at sea.
        Cyber Investments. The FY25 budget requests invests $1.55 billion
    in enhancing maritime cyber capabilities while also maximizing our
    investment in joint cyber capabilities defined via U.S. Cyber Command's
    goals and objectives. In 2023, the Navy released our Cyber Strategy to
    ensure alignment with national strategic guidance and to define
    context-specific lines of effort and outcomes across the intersection
    of the maritime domain, information environment, and cyberspace to
    enhance national security. The FY25 request executes that strategy and
    continues investment in cyber, which includes procurement of software,
    upgrades, and technical support and increased development of support
    for cryptologic modernization solutions. These investments explore,
    test, and accelerate integration of non-kinetic capabilities that
    provide our forces with cost-effective offensive and defensive options.
        The budget request also invests in cryptographic and cybersecurity
    modernization, reducing the threat in the rapidly evolving digital
    landscape. We have increased support for cryptologic modernization
    solutions, upgrading all operational devices so we stand ready to
    operate against future quantum computing threats. In cybersecurity,
    network modernization will allow us to rapidly integrate learning from
    initiatives like Project Overmatch in order to provide our Sailors the
    best-in-class technology, at speed, across all of our platforms. Our
    Cyber Mission Forces stand ready to conduct full spectrum cyberspace
    operations in all domains.
        Workforce Modernization. The Navy is updating its human force
    structure to ensure it has a workforce well-versed in cyber and
    unmanned technologies. To advance a truly hybrid fleet, we need to
    develop warfighters for the next generation who ruthlessly pursue
    warfighting excellence, who can deliver the advantage of autonomous and
    unmanned systems and who can operate and innovate alongside their
    systems. To meet this challenge, the Navy established the maritime
    cyber warfare officer designator and the cyber warfare technician
    rating in FY24. With this new designator and rating, the Navy now has a
    holistic group of cyber warfighters trained to address the most
    challenging cyber threats. We have also established foundational Navy-
    provisioned offensive cyber training, adjusted tour lengths, and
    maximized incentives, improving our cyber team readiness by 20 percent
    over the last year. In February 2024, the Navy established a new
    robotics warfare specialist rating to build and develop a team with
    experience in sensors, platform autonomy, and mission autonomy program.
    These Sailors will serve as the operators, maintainers, and managers of
    our hybrid fleet, planning and controlling our future unmanned systems.
        Allies and Partners Investments. The Navy recognizes that we will
    never fight alone. Our Allies and partners are our true strategic
    advantage and a fundamental component in putting more players on the
    field. They are force multipliers. Moving forward, we will design and
    drive interoperability with our Allies and partners into our systems
    and processes to deliver combined lethality in support of the rules-
    based international order we protect together. A cooperative deployment
    program, combined with a robust international exercise program,
    highlighted by the Rim of the Pacific (RIMPAC) Exercise this year,
    underscores our commitment to working alongside our Allies and
    partners.
        The Navy is committed to strengthening the bonds with two of our
    closest allies and fulfilling our US commitments to the Australia-
    United Kingdom-United States (AUKUS) enhanced security partnership.
    This once-in-a-generation opportunity demonstrates our shared interest
    in a free and open Indo-Pacific based on international law and serves
    to uplift the warfighting capability of our three nations. Through the
    establishment of a conventionally armed, nuclear-powered attack
    submarine capability in Australia and the development and
    operationalization of advanced technologies and warfighting
    capabilities, we will build our collective technical and industrial
    capabilities to deliver next-generation interoperable systems that
    deter aggression and win in war, if necessary.
        Investments in the Arctic. The Arctic is critical to America's
    safety and economic prosperity. Maritime presence and competition in
    the Arctic has grown to include many non-Arctic nations, as faster and
    cheaper trade routes become available due to increasingly navigable
    waters. To meet this challenge, the FY25 budget request provides $47
    million in FY25 and $252 million across the FYDP for Arctic research,
    training, and operations. The Navy, Marine Corps, and Coast Guard must
    ensure all navigation and exploration--fishing, oil, and natural gas--
    remains in accordance with internationally recognized rules and norms.
    We will continue to work with our Allies and partners in the region--
    Canada, Iceland, Denmark, Sweden, Finland, Norway, and the United
    Kingdom--to ensure a peaceful and stable Arctic. The U.S. Navy remains
    ready to respond to changing geopolitical and climate conditions in the
    Arctic.
                    warfighters: strengthening the navy team
        The Navy's active and reserve Sailors, our Navy civilians, and our
    families are our asymmetric advantage and give our Navy the decisive
    edge. I could not be more proud of our Navy team, who executes our
    Navy's mission every day. We must continue to build strong warfighting
    teams, recruit and retain talented people from across the rich fabric
    of America, and provide them world-class training and education. We
    remain committed to improving our Sailors' Quality of Service, which
    includes Quality of Life and Quality of Work. Within FRA Caps, the FY25
    budget request provides $41B--a 2 percent increase over FY24--for an
    active duty force of 332,300, which includes a 4.5 percent pay increase
    for our Sailors, and invests $2.8B for 57,700 reserve Sailors, aligned
    with Fleet force structure changes.
        Manning. Simply put, the Navy needs more people to meet our mission
    requirements around the world. Over the last year, we averaged more
    than 18,000 manning gaps at sea, primarily in our apprentice ranks.
    Because of this, the Navy continues to prioritize seagoing billets for
    deployed and next-to-deploy forces to ensure all operational units are
    fully ready to support national tasking. We are offering increased
    incentives for our Sailors to remain at sea or return to seagoing
    billets through programs like the Advancement-to-Position program.
        Retention. Our first line of effort in ensuring our Fleet is manned
    is to retain the Sailors we currently have. Overall, Navy retention
    remains healthy. We ended FY23 meeting or exceeding our retention
    benchmark forecasts across most of our zones of service and are on-
    track to meet FY24 retention targets. To continue this momentum, the
    FY25 budget's personnel funding paces a strong economy by offering our
    Sailors a complete compensation package, providing competitive pay and
    benefits as well as basic pay increases and cost increases for housing,
    subsistence, and basic needs allowances. It invests $84 million more
    than the FY24 request in enlistment and re-enlistment bonuses. The Navy
    also extended the High Year Tenure (HYT) Plus pilot program
    indefinitely, which allows our Sailors to negotiate new orders to
    valid, vacant billets, or to extend their current assignment to the
    normal tour length to stay in past HYT gates.
        Recruiting. The root cause of our manning challenges is our
    recruiting challenge. Although the Navy missed its FY23 recruiting goal
    by 7,000 Sailors, we contracted 6,000 more Sailors than we did in FY22.
    We are using all available levers to maximize the effectiveness of
    recruiting for FY24 by seeking innovative ways to attract individuals
    who are qualified and willing to serve. This starts by connecting
    people that live in every zip code to our Navy story and by spreading
    our message to areas of untapped potential, far from our bases and
    installations, and with little or no exposure to the Navy. We are
    recruiting in previously under-served markets, presenting in new places
    like gaming events and in the virtual world to create awareness beyond
    our traditional talent base, and expanding our market penetration
    through enhanced marketing and advertising via multi-channel means
    (social media, connected television, and online presence).
        The Navy is also evaluating organizational and policy initiatives
    to improve recruiting and expand the pool of qualified, motivated, and
    capable applicants that meet our standards. This past year, the Navy
    established the Recruiting Operations Center to establish a more
    effective enterprise approach to recruiting, elevated Commander, Navy
    Recruiting Command to a seasoned 2-star Admiral position to provide
    better oversight and direction, and increased recruiter manning for
    greater reach and production. To expand opportunities to join our team,
    we raised the recruiting age from 38 to 41 years old, established the
    Future Sailor Preparatory Course, both Physical Fitness and Academic,
    increased enlistment bonuses to attract high quality recruits for high
    demand ratings, increased the number of Category IV recruits to match
    rating demand, and began accepting high quality (AFQT 50 and greater)
    Tier III recruits.
        Education & Training. In an effort to prepare our warfighters for
    the future fight, the Navy's FY25 budget request prioritizes Sailor
    education by investing $25 million in the expansion of the United
    States Naval Community College (USNCC) to 25,000 students by FY26 and
    by fully funding Tuition Assistance Programs. The Navy is committed to
    Naval University System wholeness, giving our Midshipmen at the United
    States Naval Academy, our officers at the Naval War College, our
    officers, enlisted, and civilians at the Naval Postgraduate School, and
    our enlisted Sailors across the Fleet every opportunity to succeed. We
    continue to see great results from the USNCC with over 3,500 Sailors,
    Marines, and Coastguardsmen currently enrolled in eight different
    academic programs. Additionally, through other initiatives like Live,
    Virtual, and Constructive training, Ready Relevant Learning, and the
    Fleet Learning Continuum, the Navy is ensuring our Sailors have the
    professional knowledge, skills, and training to be ready to meet and
    excel in its national security tasking.
        Quality of Service (QoS). QoS remains among my highest priorities
    as CNO. The Navy remains resolute in our obligation to care for and
    deliver QoS to our Sailors, both active and reserve, our civilians, and
    our Navy families because they are our most important resource. Within
    a constrained budget environment, the FY25 budget request continues our
    significant investment in QoS with $816 million to Quality of Life
    (QoL) and $536 million to Quality of Work (QoW) initiatives. The budget
    request includes a $523 million increase in Quality of Life initiatives
    over FY24 and pulls every lever to sustain deserved pay increases for
    our Sailors, increase BAH and BAS allowances, and fully fund barracks
    sustainment and operations.
        To demonstrate the Navy's commitment to improving QoS, the Navy
    established a QoS Cross Functional Team (CFT) to improve our Sailors
    and families' QoL. Reporting to the Secretary of the Navy and me, the
    QoS CFT is Sailor-centric and focused on achieving both short-term and
    long-term goals to improve our Sailors' QoS. The CFT has made
    significant progress in addressing challenges faced by Sailors serving
    on ships and submarines at Huntington Ingalls Industries-Newport News
    Shipbuilding, including off-ship berthing, the availability of quality
    food, Internet connectivity, and improved access to medical care and
    resources. The Navy intends to scale these initiatives Fleet wide.
        Unaccompanied Housing (UH). The Navy's FY25 request fully funds
    barracks operations and sustainment and fully funds barracks
    recapitalization for fully scoped and ready projects. The budget
    request invests $1.2 billion across the FYDP for barracks construction
    and renovations to repair poor and failing UH facilities. It invests
    $206 million in FY25--an increase of $41 million from FY24--for UH
    repair and addresses repairs to five CONUS facilities (Naval Air
    Station (NAS) Lemoore, NAS Oceana, Joint Base Pearl Harbor, Naval Base
    Kitsap, and Submarine Base Kings Bay) and one OCONUS facility (Naval
    Support Activity Bahrain). The FY25 budget request commits $10 million
    in planning and development for UH projects across the FYDP and is
    expanding privatized UH in San Diego and Hampton Roads.
        The budget also invests in adding Wi-Fi to all our UH. Beginning in
    February 2024, we commenced a Wi-Fi pilot (12 facilities/4K Sailors) in
    unaccompanied housing facilities at Naval Station Norfolk, Portsmouth
    Medical Center, and Norfolk Naval Shipyard. This pilot will run through
    the end of the fiscal year and will ensure the program is optimized to
    deliver connectivity and value to our Sailors prior to a wider roll-out
    across the Navy.
        Childcare. The Navy is committed to meeting active-duty service
    member childcare requirements and is making steady progress on reducing
    the waitlist. As of March 2024, Navy has a Child Development Center
    (CDC) and School Age Care (SAC) waitlist of approximately 3,600
    children, down from 5,300 at the start of FY23. To expand capacity and
    drive down the waitlist, the Navy is focused on staff recruitment and
    retention through increased pay and other initiatives, facility
    expansion through military construction (MILCON), and the Military
    Childcare in Your Neighborhood (MCCYN) Fee Assistance Program for those
    on the CDC and SAC waitlist. Currently, all active duty families on the
    waitlist have received MCCYN fee assistance. The Navy is extending the
    MCCYN program to Navy civilians this year.
        In regards to MILCON, the Navy's FY25 budget request adds $22
    million in Facilities, Sustainment, Restoration, and Modernization
    funding for CDCs, $23 million for CDC Planning and Design for future
    MILCON, and $437 million for childcare operations. The following
    locations are areas of ongoing CDC construction projects: Naval Base
    Kitsap, Naval Base Point Loma, Naval Support Activity Hampton Roads,
    and Joint Expeditionary Base Little Creek/Fort Story. The Navy has 12
    additional CDC MILCON projects programmed across the FYDP.
        Healthcare. The Navy remains committed to our families and the need
    to provide affordable, high quality healthcare. Working closely with
    the Defense Health Agency and the Office of the Secretary of Defense
    for Health Affairs, the Navy's FY25 budget request invests $1.9B across
    the FYDP to stabilize the health system and fully restore military
    medical manpower. This will ensure our ability to generate Navy
    operational medical capabilities to support high end competition,
    crisis, and combat, ensuring more players remain on the field.
        Mental Health. The Navy is committed to ensuring our Sailors have
    access to the full continuum of mental health resources with the right
    care, at the right level, and at the right time. Our FY25 request
    increases funding for Mental Health and Suicide Prevention services by
    $52 million--a 173 percent increase from FY24--and fully funds the 21st
    Century Sailor Readiness and Resiliency and Suicide Prevention and
    Response initiatives, which enable Sailors to seek help earlier and
    often, but before a crisis. We continue to assign more chaplains to
    seagoing units and provide more mental health specialists to Fleet
    concentration areas. Right now, 43 percent of our mental health
    providers are embedded with the Fleet, providing proactive prevention
    and treatment.
        Additionally, in 2023, the Navy implemented the Brandon Act, which
    honors the life of Petty Officer Third Class Brandon Caserta. The
    Brandon Act streamlines access to mental health support for all our
    Sailors and reduces stigma by fostering a culture of support for those
    seeking help. Also, in 2023, the Navy published the Mental Health
    Playbook, which assists command leaders in preventing mental health
    issues from occurring, and, when they do, shows them how to connect
    Sailors with the proper mental healthcare. We remain committed to
    providing our Sailors the support they need.
        Sexual Assault Prevention & Response. The Navy is committed to
    providing a safe work environment free of sexual assault and sexual
    harassment for all our Sailors and to advancing a culture of Great
    People, Great Leaders, and Great Teams that drive healthy command
    climates. The FY25 budget request invests $353 million in the
    recommendations made by the Independent Review Commission on Sexual
    Assault in the Military (IRC-SAM) with a focus on prevention, climate
    and culture, and victim care lines of effort. The budget requests
    includes funding for the phased hiring of Integrated Primary Prevention
    Workforce, the phased drawdown of collateral duty SAPR personnel, and
    for training and education. On December 28, 2023, the Navy's Office of
    Special Trial Counsel (OSTC), led by a rear admiral (O-7) who reports
    directly to the Secretary of the Navy, became fully operational. This
    independent prosecution office, staffed by experienced, specialized,
    and well-trained professionals, now exercises disposition authority
    over the Navy's most serious personnel violence offenses, including
    sexual assault. Beginning in January 2025, the OSTC will also review
    formal, substantiated complaints of sexual harassment further
    supporting a safe and secure working environment for all Sailors.
              foundations: build trust, align resources, be ready
        The Navy must have a robust, strong, and resilient foundation that
    supports our warfighters and warfighting. This begins by recognizing
    installations and shore infrastructure as warfighting platforms--as
    aircraft carriers that do not get underway--and investing in the shore
    as a weapons system. The FY25 budget request continues our investment
    in installations, shipyards, the SIB, and the weapons industrial base
    to ensure they are resilient and mission-ready and can generate and
    sustain our warfighters and our warfighting.
        As in FY24, the Navy's FY25 budget request provides large
    investments in the health of the industrial base, providing clear
    headlights to industry on our build plans. In line with the Secretary
    of the Navy's Maritime Statecraft initiative, we are exploring
    additional ways to further invest in industry and increase shipbuilding
    capacity through multi-year, block buy purchases and investments in
    workforce development and supply chain resiliency. This requires a
    whole-of-government effort. In order to deliver the Navy the Nation
    needs, the Navy is pulling every available lever to expedite the
    necessary ships, aircraft, and weapons to our warfighters--by
    continuing to partner with industry, academia, interagency and allied
    partners to solve our most pressing challenges and by improving our
    ability to maintain existing platforms.
        Installation Investments. The FY25 budget requests allocates $10.5B
    across the FYDP to piers, airfields, aviation facilities, maintenance
    facilities, and core utilities to meet the Nation's needs. Because
    shore infrastructure is vital in enabling global logistics, the Navy is
    repairing and updating critical waterfront utilities, making structural
    repairs to wharves and docks, and building and repairing taxiways and
    hangars. We are investing in our critical utility systems, upgrading
    water, wastewater, and electrical generation, distribution, and
    treatment capabilities to improve resiliency, quality, and reliability
    and minimize risk to mission. In energy, we are pursuing micro grids
    and continuing to aggressively conduct and learn from black start
    exercises, which are designed to test an installation's ability to
    continue mission during a total loss of commercial power. Because most
    of our power originates off-base, the Navy continues to partner with
    local and state communities and Allies and partners, to improve
    resiliency inside and outside our fence line to support the Fleet.
        Shipyard Infrastructure Optimization Program (SIOP) Investments.
    Our FY25 request invests $2.8 billion in SIOP and provides $9.0 billion
    across the FYDP, continuing our commitment to this once-in-a-generation
    investment in our four public shipyards. This is on top of our FY23 and
    FY24 requests of $1.9B and $2.7B. We must ensure our shore enterprise
    is fully funded, reinforced, and upgraded to prepare for war. The
    average age of the Navy's shipyard facilities and related
    infrastructure is 61 years old and the average age of our dry-docks is
    101 years old. SIOP is a needed investment in repairs, modernization,
    and recapitalization to deliver dry-docks that can support current and
    future classes of our nuclear-powered submarines and aircraft carriers,
    optimize workflow through changes in the physical layout of the
    shipyard, and increase productivity through technology and equipment
    upgrades.
        The FY25 budget request funds the following: the fifth increment of
    the P-381 Multi-Mission Dry Dock Extension ($401 million) at Portsmouth
    Naval Shipyard, the third increment for the P-209 Dry Dock 3
    Replacement at Joint Base Pearl Harbor Hickam ($1,199 million), first
    increment for P-1062 Dry Dock 3 Modernization at Norfolk Naval Shipyard
    ($54 million), P-859 CVN 78 Aircraft Carrier Electrical Upgrades at
    Naval Base Kitsap ($182 million), and planning and design requirements
    ($183 million) for future construction efforts.
        SIB Investments. The Navy's FY25 budget request reflects our
    prioritization of and significant investment in our undersea warfare
    capability. The Department of Defense's FY25 budget request invests
    $4.0 billion and $11.4 billion in the FYDP in the SIB, sending a strong
    signal to and increasing the health of industry, building our supply
    chain resiliency, bolstering our long-term capacity and supporting the
    AUKUS partnership, all while ensuring readiness for today. The FY25
    request doubles the approximately $2.0B SIB investment Congress
    provided in FY23 and FY24. This significant investment is on top of the
    President's FY24 $3.3B SIB Supplemental request and the planned
    investment of $3B from the Commonwealth of Australia. These actions
    meet a generational demand for an increase of at least 100,000 skilled
    workers over the next 10 years to build the Columbia-class submarine,
    deliver the Virginia-class submarine, and maintain our in-service
    submarines.
        This is a national effort. The SIB, including the supply chain that
    supports material and readiness for all submarine classes, consists of
    over 15,000 industry partners spread across every state in the country.
    The Navy will continue to partner with industry to make investments
    that will deliver a production cadence of 1 Columbia and 2.3 Virginia-
    class submarines per year to replace the aging Ohio-class submarine,
    achieve our required force structure of 66 SSNs, and support our AUKUS
    commitments.
        Weapons Industrial Base (WIB) Investments. The Navy's FY25 budget
    request invests $6.6 billion in critical munitions and builds on the
    FY23 and FY24 weapons industrial base and procurement investments. The
    budget request continues the multi-year procurement for four critical
    munitions across the FYDP: Standard Missile (SM), Naval Strike Missile
    (NSM), Long Range Anti-Ship Missile (LRASM), and Advanced Anti-
    Radiation Guided Missile (AARGM). The Navy remains committed to working
    with industry to identify manufacturing challenges and provide
    investment opportunities to streamline testing and increase production.
        Additionally, the Navy is investing in industry and in its organic
    industrial base to ensure we can ramp up munitions production in the
    immediate future. Building upon the FY23 and FY24 requests, the FY25
    budget request invests $227M to expand capacity for Trident II, Long
    Range Anti-Ship Missiles, Standard Missiles, and MK-48 torpedoes. We
    welcome supplemental funding to help replenish munitions expended in
    the Red Sea.
        Typhoon Mawar. The Navy is committed to repairing the damages done
    by Typhoon Mawar in Guam. Current damage exists at $44 billion with
    over $6 billion in facility repairs and reconstruction in FY24 and
    FY25, complicating our ability to meet the NDS and impacting QoL for
    residents and service members. With the accelerated degradation of our
    shore installations and infrastructure compounded by the increased
    demands of our QoS investments, it is important that the Navy obtain
    the Guam Disaster Recovery supplemental in a timely manner in order to
    begin recovery from the typhoon's damage.
        Red Hill. The Navy remains committed to rebuilding trust with the
    people of Hawaii and service members, civilians, and families affected
    by the Red Hill fuel leaks. Joint Task Force-Red Hill has safely
    removed 104.6 million gallons of fuel--over 99 percent of previously
    held fuel reserves--6 months ahead of schedule, and turned over
    responsibilities to Navy Closure Task Force-Red Hill (NCTF-RH) on 28
    March. NCTF will execute the permanent closure of Red Hill and continue
    long-term environmental remediation and aquifer restoration efforts.
    The Navy team in Hawaii continues to work alongside the EPA and Hawaii
    Department of Health to provide water that meets all Federal and state
    safe drinking water standards, while transparently communicating with
    elected representatives, community groups and the public.
        Industrial Base Workforce Development. Our recruiting efforts are
    about more than recruiting active duty Sailors. It is about a broader
    ``call to service'' to active duty and reserve Sailors and workers
    supporting the industrial base that covers the spectrum of support to
    our Nation. The Navy appreciates Congress' continued support and is
    working closely with industry partners to strengthen and grow the
    defense industrial base workforce through the SIB, multi-year
    procurement contracts, and SIOP to help build a comprehensive,
    coordinated, and sustainable development system to deliver skilled
    trade workers. For example, the SIB is working closely with regional
    training partners across the country to improve workforce attraction,
    recruitment, training, and retention in order to achieve the increased
    capacity to design, build and sustain the platforms and systems the
    Navy and Nation needs.
        Additionally, the DDG 51 multiyear procurement contract for FY23
    included a workforce development incentive that supports essential
    enhancements, including workforce housing and transportation, expansion
    of local talent pipeline programs, facilities modifications in support
    of workforce development, attraction and retention bonus programs, and
    augmented on-the-job training. And, through SIOP and our
    recapitalization of century-old infrastructure, we are improving QoS
    for our 30,000 shipyard employees. But, we must do more. Alongside
    government and industry, we must explore ways to support QoL concerns
    in order to ensure that these workers have affordable housing,
    commutes, and food options.
                                   conclusion
        The Navy continues to meet its Title 10 mission to be organized,
    trained, and equipped for the peacetime promotion of the national
    security interests and prosperity of the United States and for prompt
    and sustained combat incident to operations at sea. Our operations
    around the world demonstrate that an investment in America's Navy is an
    investment in America's security and prosperity. We answer the bell,
    from the seabed to space, in cyberspace, and in the information
    environment. No other Navy in the world operates at this scale and no
    other Navy in the world can train, deploy, and sustain such a lethal,
    globally deployed, combat-credible force.
        As our Nation's founders recognized and as seen this year, naval
    power is--and will continue to be--an essential element of our national
    security. The Navy's FY25 budget request invests in that reality and
    prioritizes warfighting advantage to win in this decade. Through our
    Performance to Plan, Get Real Get Better, and Culture of Excellence 2.0
    initiatives, the Navy is instilling a mindset that makes the most out
    of each dollar we receive to build the best Navy possible. We are
    committed to ensuring the American taxpayer knows that each dollar
    invested in the Navy is a dollar well spent on their safety, security,
    and prosperity.
        The credibility of our Nation's deterrence rests upon ready and
    capable ships, aircraft, and submarines. The investments we make now
    will shape the global maritime balance of power for the rest of this
    century. I could not be more proud of our Navy team that guarantees our
    prosperity and security, deters our adversaries, and is ready to fight
    and win if needed. The Navy will continue to work alongside all
    stakeholders and our Allies and partners to deliver the Navy the Nation
    needs. On behalf of our more than 600,000 active and reserve Sailors,
    Navy Civilians, and Navy families, I am grateful to this committee and
    to your colleagues in Congress for your steadfast commitment to your
    United States Navy.

        Senator Tester. Thank you, Admiral. We appreciate your
    testimony.
        You're up General Smith.
    STATEMENT OF GENERAL ERIC M. SMITH, COMMANDANT OF THE
                MARINE CORPS
        General Smith. Good morning. Chairman Tester, Vice Chair
    Collins, Ladies and Gentlemen, thank you for the opportunity to
    represent your Marines today.
        I'd like to start by sincerely thanking this committee for
    its enduring support and your advocacy for a timely,
    predictable, and sufficient budget that enables the Marine
    Corps to remain first to fight.
        I'd also like to express my deep gratitude for the
    partnership between my shipmate Admiral Franchetti and me as we
    lead our respective sea services under the leadership of
    Secretary Del Toro.
        Whether deterring, responding to crisis, or in conflict, it
    will be the Navy and Marine Corps Expeditionary Forces who make
    first contact with partners seeking help or adversaries seeking
    a fight. Our partnership, collaboration, and integration is a
    decisive advantage.
        Last week I published updated guidance to the force
    entitled Maintain Momentum. I chose this title as I firmly
    believe the Corps is on the right path under Force Design.
        A few points from that document. First, I believe the
    Marine Corps must continue to strike a balance between the
    high-end modernization and our commitment to persistent
    forward-deployed naval expeditionary forces that campaign and
    respond to crises globally. This effort is represented by our
    Marine Expeditionary Units.
        Second, we must prioritize our operations with the Navy and
    its amphibious ships and we must provide Marines with the
    organic mobility to rapidly maneuver from shore to shore, ship
    to shore, and back again.
        Third, on recruiting, our performance speaks for itself. We
    will continue to make our mission without ever diminishing our
    standards.
        Additionally, our top performing Marines are re-enlisting
    at record rates and we must sustain this trend.
        Fourth, we must maximize the capabilities of our Reserves
    to ensure that our Nation has the ready bench of warriors they
    have relied on since the founding of Marine Corps Forces
    Reserve in 1916.
        And fifth, I'm dedicated to ensuring a quality of life for
    our Marines that matches the high demands we place on them
    every day. That means nutritious food, high quality and
    accessible gyms, and a safe quiet place to recover from a hard
    day's work.
        Our Barracks 2030 Initiative is our most consequential
    barracks investment ever and it is sorely needed.
        While aggressively pursuing these priorities, I commit to
    you that our Corps will always be frugal and accountable with
    the resources you and the American people provide. I'm proud of
    my Marines and civilian Marines who enable the Marine Corps to
    receive an unmodified audit opinion earlier this year, the
    first of any service to do so.
        They told us what we have long known, that when you entrust
    us with the taxpayers' money, it is money well spent and fully
    accounted for. All these things are critical to maintaining the
    strength and dominance of your Marine Corps.
        This year marks 249 years since the founding of our Corps.
    That is 249 years of battles won and peace upheld in the name
    of democracy and prosperity for our Nation and for all nations
    who abide by the International Rules-based Order, but
    increasingly world events demonstrate this Order is being
    challenged.
        `Free trade, unrestricted access to the seas, peaceful
    cooperation between nations big and small are under assault.
    Our Nation's prosperity is underwritten by a strong Navy and
    Marine Corps who maintains a global presence and keeps maligned
    actors at bay.
        Thank you again for the opportunity to represent your
    Marines today. I pledge to continue to work closely with each
    of you to ensure your Marine Corps remains the most lethal
    fighting force on the planet.
        I look forward to your questions.
        [The statement follows:]
                  Prepared Statement of General Eric M. Smith
        Chair, Ranking Member, and distinguished members of the Committee,
    thank you for the opportunity to report to you on your Marines and your
    Corps. Your support has been critical to your Corps' ability to remain
    the Nation's Force-in-Readiness, all the while modernizing to stay
    ahead of our adversaries and those who would seek to threaten our
    Nation or its Allies and partners.
                          who we are and how we fight
        The Marine Corps is, first and foremost, a warfighting
    organization. We exist to fight and win our country's battles.
    Everything we do is with that one goal in mind. The character of war
    may change, but its essence never will--it is the violent struggle
    between two irreconcilable wills. That struggle is where Marines
    thrive. We ask for nothing more than the chance to be First to Fight.
        We are and will remain a naval expeditionary force that fights from
    the sea as task-organized, multi- domain combined arms air-ground task
    forces. With Force Design in progress, we continue our proud history as
    our nation's expeditionary shock troops who can deliver combat power
    from sea to land--and we have added the additional capability to
    project power from land to sea. As a globally present and persistent
    force, we are inextricably linked to naval campaigns, and we are
    forward deployed in competition, ready to respond in times of crisis at
    a moment's notice.
        Our foundation as our Nation's expeditionary force in readiness and
    as its elite soldiers from the sea will not change. But the formations,
    capabilities, and methods we use against our adversaries must evolve.
    Combined arms operations today are more than coordinating ground
    maneuver, indirect fires, and close air support--already the most
    difficult task for any fighting force to master. To fight and win
    against a peer adversary, combined arms must now be all-domain,
    incorporating effects in and from cyberspace, space, and the
    electromagnetic spectrum. The mastery of this evolution in warfare is
    what allows us to punch above our weight class. It is what will keep
    the Marine Corps--a relatively small service --respected by our friends
    and feared by our enemies across the globe.
        Maneuver Warfare, encapsulated in our Marine Corps Doctrinal
    Publication (MCDP) 1, is integral to how we fight, but our
    understanding of ``maneuver'' must evolve along with the changing
    character of war. Marines at the tactical edge will maneuver under all-
    domain supporting fires to seize terrain and destroy the enemy. This
    challenge will require a greater proliferation of capabilities that can
    provide those all-domain effects down to the lowest level. This
    requirement includes autonomous systems; precision fires; intelligence,
    surveillance, reconnaissance, and targeting (ISR-T); integrated command
    and control; and increased ground and maritime mobility.
        Marine Stand-in Forces are task-organized, mobile, low-signature,
    sustainable formations, built to maneuver across all domains, sense and
    understand the battlefield, enable combined kill webs, and apply all-
    domain combined arms. They persist forward in contested areas, operate
    alongside allies and partners, contribute to deterrence, and, if
    deterrence fails, fight to win. Adversaries will attempt to deny and
    degrade the joint force's ability to see and sense. Marines at every
    echelon are now using the platforms and capabilities that our
    aggressive modernization efforts are delivering. Our Force Design
    efforts have enabled our Marines to conduct all-domain and multi-source
    collections and intelligence in support of the joint force. We are the
    eyes and ears for the joint force, ideally positioned within the
    weapons engagement zone (WEZ) to conduct both reconnaissance and
    counter-reconnaissance, to act as a joint tactical air controller for
    the combined joint force, and to strike the enemy from land to sea with
    organic sensors and precision fires.
        Sustaining those forces will be both vitally important and
    exceptionally difficult. Contested logistics can only succeed through a
    combination of technology and tactics. Forces will have to coordinate
    the deliberate application of multi-domain fires and maneuver to create
    the physical and temporal conditions necessary to support logistics
    networks. Make no mistake--a peer fight requires both the large
    traditional avenues for supply as well as a global network of tailored
    nodes to support specialized units distributed across the battlespace.
    The Globally Positioned Network ashore, including Maritime
    Prepositioned Forces afloat, will become nodes within a larger,
    resilient sustainment web that will not rely on single points of
    failure. This is a wicked problem to solve, but for Marines, it is not
    insurmountable. We became Marines to do hard things.
        Today, across the Indo-Pacific, approximately 23,000 Marines are
    forward-deployed or stationed West of the International Dateline.
    Building upon the longstanding ability of III Marine Expeditionary
    Force to deter, campaign, and respond to crises, I would like to
    highlight several initiatives in the Indo-Pacific region: a new
    integrated naval Task Force called TF 76.3; our Marine Littoral
    Regiments--one of which will be forward postured in Japan's Southwest
    Islands; an expanded Rotational Force in Australia; and a new
    Rotational Force--Southeast Asia. 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. Just
    as important, our forward posture contributes to the core mission of
    the Naval Force--presence.
      --Marines with the I and III Marine Expeditionary Forces continue to
            reinforce joint warfighting advantages through their ongoing
            activities across the Indo-Pacific with our allies in the
            region, including Japan, Australia, the Philippines, Thailand,
            and South Korea. Exercises RESOLUTE DRAGON and IRON FIST with
            the Japanese Ground Self-Defense Force (JGSDF) and Amphibious
            Rapid Deployment Brigade are two of the best examples of our
            active campaigning in the theater. Those operations and
            activities directly support Japan's efforts to reinforce its
            maritime domain awareness in the Southwest Islands, enhance its
            reconnaissance and counter-reconnaissance capabilities, and
            further develop its capability to use land-based anti-ship
            systems to effect sea-denial. Some of this training occurs at
            the JGSDF's Camp Ishigaki on a southwestern Japanese island
            approximately 160 miles east of Taiwan.
      --In Australia, Marine Rotational Force--Darwin (MRF-D) continues to
            demonstrate advanced interoperability between the Marines Corps
            and Australian Defense Forces (ADF) across each warfighting
            function, power projection with non-traditional assets, and the
            ability to overcome mobility challenges in the littoral
            environment. Because of the years of working closely with the
            U.S. Marine Corps to address the changing threat, the ADF are
            developing two amphibious brigades that have much in common
            with the Marine Littoral Regiment. This year, MRF-D will
            integrate with the ADF in at least 13 operations, activities,
            and investments (OAIs), including exercises that seek to
            validate theater planning assumptions and enhance overall
            interoperability. The MRF-D 2024 rotation will further focus on
            simulating and overcoming the logistical challenges we envision
            facing in a high-end fight in the Pacific.
      --The largest bilateral military exercise between Australia and the
            United States, Exercise TALISMAN SABER, is well known; what is
            perhaps less well known is that TS23 integrated amphibious
            vessels from the United States and Japan, as well as German
            naval infantry, and introduced field training exercises with
            several Pacific Island Countries for the first time. And, for
            the first time last year, we were able to include the
            Indonesian National Armed Forces within our combined training
            alongside the Australians. We look forward to expanding upon
            this new opportunity to extend our campaigning.
      --In October 2023, we initiated the second rotation of our newest
            expeditionary force--Marine Rotational Force--Southeast Asia
            (MRF-SEA), to counter ongoing PRC maritime gray zone
            operations. MRF-SEA operations and activities included coastal
            defense training, raid and reconnaissance training, and
            amphibious operations training with Allies and partners in the
            Philippines, Malaysia, Indonesia, and Singapore.
      --Our most important campaigning event in support of deterring North
            Korean aggression, SSANG YONG, resumed in 2023 and involved an
            amphibious landing with elements of the ROKMC, 1st Marine
            Division, and the 13th Marine Expeditionary Unit (MEU). SSANG
            YONG 24 is planned for August 2024 to allow for the utilization
            of the America ARG (LHA 6) and 31st MEU.
      --In August 2023, Marines of the AMERICA Amphibious Ready Group and
            31st Marine Expeditionary Unit (MEU) conducted humanitarian
            assistance/disaster relief operations in the vicinity of Papua
            New Guinea following the eruption of Mount Bagana on 31 Jul
            2023.
        Our efforts across the EUCOM AOR have also significantly expanded,
    and now include tailored efforts with NATO's newest members--Sweden and
    Finland. Since 2018, Exercise ARCHIPELAGO ENDEAVOR has been the primary
    venue for Marine Forces, Europe, to develop interoperability with the
    Swedish Marines. Beginning in 2022, the Royal Swedish Navy also offered
    the exercise as a medium for the Marine Corps to develop and evaluate
    modern concepts such as maritime domain awareness. This generous offer
    and the close relationship with America's newest Ally are further
    evidence of the strategic impact of our network of Allies and partners.
    In 2023, Low-Altitude Air-Defense (LAAD) Marines participated in
    exercise ADEX with the Finnish Navy, and Combat Logistics Battalion-6
    (CLB-6) participated in Exercises ATRAIN and FREEZING WINDS with the
    Nyland Brigade (naval infantry). This year, Exercise FREEZING WINDS
    will be the primary bilateral exercise between the Marine Corps and
    Finnish Navy and naval infantry forces. In addition to those exercises,
    Marines from 2d Marine Division conducted several HIMARS Rapid
    Infiltration (HIRAIN) events throughout the theater, including Finland,
    Poland, and Greece. These visible demonstrations of combat credibility
    and operational reach involve inserting HIMARS via fixed-wing aircraft,
    conducting fire missions using U.S. and NATO C2 architecture, and then
    extracting via fixed-wing aircraft.
        Your Corps' worldwide campaigning activities, alongside the Navy,
    help nurture our Nation's source of strategic advantage on the world
    stage: our network of Allies and partners. Through our persistent
    presence, we are forging close and lasting relationships--every day--
    and building a network of friendly forces who have common operating
    concepts and increasingly, interoperable systems and procedures.
        Following the terrorist attack on Israel on 7 October 2023, the
    26th MEU and BATAAN Amphibious Ready Group immediately responded and
    provided simultaneous contingency support to EUCOM from the
    Mediterranean Sea and CENTCOM from the Red Sea. Their rapid response
    demonstrated the ARG/MEU's ability to provide expeditionary sea-based
    contingency response packages during times of crisis without the
    constraints and restraints of access, basing, and overflight.
    Additionally, the 26th MEU(SOC) aboard the BATAAN ARG conducted
    maritime security operations in vicinity of the Straits of Hormuz to
    deter malign influence and assure free flow of commerce.
        Throughout 2023, Marine Security Guard Augmentation Units (MSAU)
    operating under Title 22 authorities augmented security at designated
    U.S. diplomatic facilities overseas to protect U.S. diplomats and
    prevent the compromise of national security information and equipment.
    MSAUs conduct on-compound security and defense at these facilities when
    Department of State (DOS) deems there is a need to augment the resident
    Marine Security Guard detachment due to an increased threat. In 2023,
    there were 18 MSAU deployments in support of our diplomats in Ukraine,
    Central African Republic, Ecuador, Mali, Haiti, Zimbabwe, Egypt,
    Liberia, Lebanon, Jordan, Israel, Democratic Republic of Congo, and
    Bangladesh.
        All these examples, from maritime security to Embassy
    reinforcement, demonstrate the diverse range of missions that our
    crisis response forces are ready to execute at any time and place. The
    breadth of those capabilities is simply unmatched across the joint
    force and continues to be a source of strategic advantage.
                               where we are going
        Upon my assumption of duties as Commandant of the Marine Corps, I
    outlined my top five priorities: (1) Balancing Crisis Response and
    Modernization, (2) Naval Integration and Organic Mobility, (3) Quality
    of Life, (4) Recruit, Make, and Retain Marines, and (5) Maximize the
    Potential of our Reserves. Those priorities remain at the heart of my
    direction to your Corps.
    Balancing Crisis Response and Modernization
        By balancing crisis response and modernization, we will continue
    our modernization effort under Force Design while remaining unwavering
    in our commitment to a persistent, global forward presence and to our
    Marine Expeditionary Units.
        Force Design and Modernization. I remain fully committed to Force
    Design and all its supporting efforts. The following assumptions inform
    our modernization efforts: (1) The long-standing trend of increasing
    dispersion on the battlefield will continue and likely accelerate--
    frontages will increase, battlefield depth will increase, and sanctuary
    will be difficult to achieve; (2) winning the all-domain reconnaissance
    and counter-reconnaissance fight provides significant warfighting
    advantage and losing this fight will be increasingly difficult to
    overcome; (3) the Marine Corps' ability to task-organize for specific
    missions will continue to be a source of competitive advantage for the
    service; and (4) the future operating environment requires threat-
    informed modernization of Marine Corps capabilities.
        We will continue to provide our Nation with forward deployed Marine
    forces who campaign and are prepared to respond to crisis alongside our
    Navy shipmates. Employing our crisis response capability as a subset of
    campaigning is how we will be postured to deter malign actors and
    provide our Nation's leaders with strategic decision space. Despite the
    threats from operating inside an adversary's WEZ, forward-deployed
    Marines can shape the operational environment and cause our adversaries
    to think before committing to a course of action. Should our
    adversaries foolishly choose to fight, Marines will be ready with the
    tools necessary to destroy and defeat them in combat.
        Marine Littoral Regiments: As an example of our dispersed, task-
    organized units that possess modern equipment for the future of
    warfare, the 3d Marine Littoral Regiment (MLR)--headquartered at Marine
    Corps Base Hawaii--reached Initial Operational Capability in 2023 and
    is planned to reach Full Operational Capability in FY 25. 3d MLR is
    actively experimenting with innovative tactics, techniques, and
    procedures to enable its unique mission as a distributed unit that must
    possess resilient communications, air defense, and precision fires. On
    the other side of the Pacific, the 12th Marine Littoral Regiment--
    headquartered in Okinawa, Japan--stood up in November 2023.
        Contested Logistics: The ability to conduct logistics in a
    contested environment will underwrite the success of any future naval
    campaign in the current age of ubiquitous counter-intervention
    strategies. Contested logistics remains a service priority but will
    require a combination of solutions from the Service, joint force, and
    allies and partners. Connecting the industrial base, depots in the
    United States, and ports of embarkation with forward nodes in theater
    and tied to a resilient tactical level sustainment web, supported by
    multi-domain distribution platforms, will take a monumental effort
    across all the services.
        The Marine Corps will continue to work in stride with the joint
    force, Allies, and partners to ensure we have the integrated systems,
    architecture, global logistic awareness, doctrine, and training to
    sustain our forces. The Marine Corps, in close collaboration with the
    Navy, is currently experimenting with over a dozen new manned and
    unmanned technologies and potential future capabilities focused on
    enabling logistics in a contested environment. These operational
    experiments include well-known capabilities such as the CH-53K, the
    stern landing vessel (SLV), as well as lesser-known, emerging
    capabilities like the tactical resupply unmanned aircraft system
    (TRUAS), the Medium Aerial Resupply Vehicle for Expeditionary Logistics
    (MARV-EL), and the autonomous low-profile vessel (ALPV). Concurrently,
    the Marine Corps has commenced the formal establishment of the first of
    three near-term Global Positioning Networks located in the Western
    Pacific.
        Marine Corps Intelligence, Surveillance, & Reconnaissance (ISR)
    Enterprise Transformation: As an essential element of transformative
    efforts behind our modernization, the Marine Corps ISR Enterprise will
    continue to expand and strengthen the Corps' dynamic--and growing--
    cadre of ISR professionals. The Marine Corps exceeded our goals in
    qualifying Marines to expand signals intelligence and electromagnetic
    warfare specialties. Integrated within our infantry battalions, some of
    these Marines have already begun contributing to the Joint and Naval
    Forces' ability to sense and make sense in complex maritime and
    littoral environments. Other groundbreaking efforts throughout the
    Fleet Marine Force include integration and experimentation with
    innovative maritime sensing capabilities such as surface-search radars,
    automatic recognition software, advanced electromagnetic support
    capabilities, and various tactical airborne platforms.
        Autonomous Systems at Scale: The Marine Corps is actively engaged,
    participating, and, in some instances, leading efforts within the
    Department of Defense's Replicator Initiative, which aims to field
    attritable autonomous systems at scale and in multiple domains. To
    accomplish this task, the Marine Corps is aggressively leveraging AI,
    robotics, and commercial technology. I see Replicator, if managed
    carefully, as an opportunity to build on the momentum of Force Design
    to accelerate modernization and alignment with the emergent needs of
    the Joint Force. The USMC has worked tirelessly to scale some of the
    identified capabilities already, so we appreciate Replicator's holistic
    approach to breaking down policy barriers while we strengthen our
    industrial base. As Replicator continues to rapidly develop, the
    Service will emphasize unmanned systems that can support a range of
    military operations in the Indo-Pacific and other geographic regions.
        Complementing these efforts, the Marine Corps takes advantage of
    the Rapid Defense Experimentation Reserve to rapidly transition
    promising prototypes into production. An example of one such initiative
    is the Marine Corps' XQ-58A Valkyrie, a highly autonomous, low-cost
    tactical uncrewed air vehicle, which successfully completed two test
    flights, one in October 2023 and the other in February of 2024. These
    flights mark key milestones in the Marine Corps' Penetrating Affordable
    Autonomous Collaborative Killer--Portfolio (PAACK-P) experiment. Future
    test flights will inform Marine Corps requirements for the Marine Air-
    Ground Task Force Unmanned Aerial System Expeditionary (MUX) Tactical
    Aircraft (TACAIR) program. The XQ-58A will complete six planned test
    flights with objectives that include evaluating the platform's ability
    to support a variety of intelligence, surveillance, and reconnaissance
    (ISR) missions; the effectiveness of autonomous electromagnetic support
    to crewed platforms; the potential for AI-enabled platforms to augment
    combat air patrols; and other manned-unmanned teaming (MUM-T)
    capability objectives. We are committed to the development of a robust
    Combat Collaborative Aircraft capability and think this model of
    manned-unmanned teaming is just as relevant on the sea and under the
    sea. We are exploring options that would provide our future MEUs with
    such capabilities.
        Training and Education. Last summer, the Navy and Marine Corps team
    conducted our most expansive and stressing live and virtual training to
    date in Large Scale Exercise 23 (LSE 23) using Carrier Strike Group 2,
    anchored on the USS Dwight D. Eisenhower (CVN-69), to help us better
    understand how we would fight the next war at sea. We were able to
    connect six carrier strike groups (two live, four virtual), six
    amphibious ready groups (two live, four virtual), and an additional 25
    live and 50 virtual ships. To add to the realism of the event, exercise
    planners added 25,000 sailors and Marines to the exercise with very
    little additional preparation outside of normal training. All these
    factors make both the learning and findings more authentic. LSE 23
    required the use of nine Maritime Operations Centers. Testing
    warfighting concepts and challenging ourselves at this scale is exactly
    what is required to generate the warfighting readiness we need in the
    future against a peer threat.
        Readiness. Critical to our ability to remain forward postured and
    ready for any crisis is our commitment to operations and maintenance
    funding of ground and aviation training, maintenance, safety, and
    readiness. This funding allowed us to respond to the many crises around
    the world in 2023, and it will help ensure that we are organized,
    trained, equipped, and forward-postured to do so again this year and
    into the future. We will continue to emphasize the importance of a full
    and predictable budget to fund modernization programs, advance our
    logistics capability, which is the pacing function, and advance the
    role of our installations as power projection platforms.
        Unmodified Audit Opinion. As we invest in new platforms, barracks,
    and training, it is our responsibility as good stewards of taxpayer
    funds to continue to prove that when the Corps is provided a taxpayer
    dollar, we can show exactly where and how it has been invested--a
    responsibility I take very seriously. Following a rigorous two-year
    audit, the Marine Corps achieved an unmodified audit opinion, the best
    possible outcome--and the first time in the Department of Defense's
    history that any service has received an unmodified audit opinion.
    These results demonstrate how seriously the Marine Corps takes its
    stewardship of taxpayer funds and our ability to account for and put to
    best use every dollar trusted to the service. This audit supports what
    we have believed for a long time--when Congress provides the Marine
    Corps a dollar, we invest it wisely, and we can tell you exactly where
    and how it was spent to further our Nation's national security
    objectives. The Marine Corps worked with Independent Public Accountants
    to validate budgetary balances and records and to audit physical assets
    at installations and bases across the globe. These actions included
    counting military equipment, buildings, structures, supplies, and
    ammunition held by the Marine Corps and our DoD Partners. The audit's
    favorable opinion was only possible through the support and hard work
    of numerous dedicated Marines, civilian Marines, and many other
    partners across DoD. Nonetheless, we will not rest on our laurels; the
    audit report pointed out some areas for improvement, and we will use
    these recommendations to make our fiscal practices even better.
    Naval Integration and Organic Mobility
        The Marine Expeditionary Unit remains our crown jewel, and the
    Navy's Amphibious Warfare Ships and surface connectors are key enablers
    in campaigning, crisis response, and contingency response. Our MEUs
    remain in high demand by Combatant Commanders, Allies, and partners
    alike; our MEUs respond to crises all over the globe and prevent crises
    from turning into a larger conflict. Amphibious Warfare Ships enable
    our global, persistent presence--that presence has been the guarantor
    of peace and worldwide prosperity for the better part of the last
    century. No platform or unit is capable of a more diverse set of
    missions from the low-end to the high-end of military operations. No
    other unit is purpose-built for campaigning and deterring maritime
    gray-zone operations. No other part of the fleet is purpose-built to
    satisfy the naval presence mission. Bottom line, Amphibious Warfare
    Ships with embarked Marines are the only tool in the U.S. arsenal that
    can strengthen our relationships with Allies and partners across all
    domains while being capable of rapidly transitioning to crisis or
    conflict. As an assurance for Allies and partners, the Navy and Marine
    Corps ARG/MEU team has no equal and is a primary source of strategic
    advantage.
        Amphibious Warfare Ships. The CNO and I have locked shields, and
    there is no space between us on the requirement for Amphibious Warfare
    Ships--to include construction, maintenance, and modernization, and the
    availability of ships for training and deployment. The Fiscal Year 2025
    Thirty Year Shipbuilding Plan continues the LPD Flight II Program on 2-
    year centers and LHA production on 4-year centers across the FYDP. This
    includes full funding for LPD33 in this FY25, the CY24 delivery of LPD
    29 USS McCool, and funding to maintain a scheduled delivery of LHA 8 in
    FY26--sustaining no fewer than 31 amphibious warfare ships. The CNO and
    I continue to work to improve amphibious warfare ship readiness to
    ensure global, persistent presence of MEUs in support of Combatant
    Commanders' demands.
        Amphibious warship procurement, like other Navy shipbuilding
    programs, can benefit from multi-ship procurement contracts that
    stabilize the industrial base and provide significant cost savings for
    the Department. New ship acquisition using authorities already granted
    by Congress yield potentially significant cost and schedule benefits,
    accelerates delivery of amphibious warfighting capability to the Fleet,
    and provides critical stability and predictability to the shipbuilding
    industrial base. By procuring the amphibious warfare ships in the 30-
    Year Shipbuilding Plan (3 LPDs and 1 LHA) on a multi-ship procurement
    contract, the Department can save hundreds of millions of dollars for
    the American taxpayer. Multi-ship procurement supports the industrial
    base and is a critical tool for reaching and maintaining the amphibious
    warfare ship requirement and meeting the objectives of the 2022
    National Defense Strategy, as long as industry produces those ships on
    schedule and on budget.Littoral Mobility. Mobility is a critical
    requirement to enable the dispersion and persistence of stand-in
    forces. In the case of MLRs in the Indo-Pacific, littoral mobility will
    be essential to maneuver through the complex geography of the region.
    We recognized this capability gap early as we developed concepts for
    the Indo-Pacific and designed the associated Medium Landing Ship (LSM)
    as a critical enabler for this theater. Separate and complementary to
    the Amphibious Warfare Ships, the LSM is a maneuver asset and, as a
    shore-to-shore vessel, is unique and critical to expeditionary littoral
    mobility. LSMs facilitate campaigning and can support diverse missions
    such as security cooperation, humanitarian assistance/disaster relief
    (HA/DR), logistics support, and the launch and recovery of uncrewed
    systems for maritime domain awareness.
    Quality of Life
        When we improve our Marines' Quality of Life (QoL), we do right by
    our Nation's most precious resource--our Marines and their families--
    and we retain our lethal edge by retaining our top talent. To this end,
    we have recently undertaken several targeted efforts to improve our
    Marines' QoL and further promote the retention of our best Marines:
      --Rapid execution of ``Barracks 2030,'' the most consequential
            barracks investment plan we have ever undertaken.
      --Improvements in quality and accessible healthcare.
      --Acceleration of investments in Marine Corps Total Fitness and
            focused investments in our gyms, chow halls, Child Development
            Centers, and family housing.
      --Increased creative incentives for overseas and Pacific-based
            Marines.
        Our recent Talent Management efforts are data-informed and
    comprehensive. Additionally, we recognize that Quality of Life does not
    just mean facilities and incentives. Talent Management drives us to
    make better data-driven institutional decisions and personnel policies
    for our Marines and their families. All Marine leaders know
    instinctively that we have a sacred and personal responsibility to
    lead, mentor, and care for our junior Marines, but there is still more
    the institution can do to help our youngest Marines.
        Barracks 2030. The Marine Corps has recently initiated Barracks
    2030, our strategy to pursue improvements in our unaccompanied housing.
    This strategy codifies many initiatives the Corps began in February
    2023 and is certainly informed by the 2023 Government Accountability
    Office report on barracks. The Marine Corps' Barracks 2030 strategy
    takes an aggressive approach in improving housing for our Marines along
    three lines of effort: Management, Modernization, and Materiel. Our
    strategy is data-driven--to the ``room level.'' I recently directed the
    inspection of the over 58,000 barracks rooms in the Marine Corps--not
    as a replacement to our junior leaders' weekly inspections for
    cleanliness and repair--but to establish a systematic approach towards
    barracks maintenance using a standardized repair checklist. In the
    coming weeks, the data from this inspection will inform our
    prioritization of efforts and future year budget requests.
        As an example of our management efforts, and as directed by the
    Fiscal Year 2024 National Defense Authorization Act, we plan to
    implement a civilian management structure in our Military Housing
    Offices by October of this year, followed by civilian and contractor
    management of each of our barracks in the next 2 years to improve
    responsiveness to maintenance requests. Ultimately, we will return more
    than 500 Marine non-commissioned officer barracks managers to their
    primary military occupational specialties. We further intend to
    consolidate family housing and barracks oversight within the Military
    Housing Offices, which will streamline leadership and management of all
    Marine Corps housing.
        Our Modernization plans extend beyond new structures and include
    modernizing systems to enable right-size inventory and deliberate,
    proactive maintenance. Over the last 6 years, the Marine Corps has
    averaged over $200 million annually in restoration and modernization
    projects for barracks exclusively. In Fiscal Years 2022 and 2023, we
    renovated 30 barracks, improving the quality of life of 8,116 Marines.
    In Fiscal Year 2024, we approached Congress with a funding request to
    renovate 13 more barracks to improve the living conditions of 3,517
    Marines. We are leveraging a tier-based readiness approach to lifecycle
    management to prioritize investments for the most critical facilities.
    Every dollar spent will be targeted to where it will have the greatest
    impact. Future modernization efforts include installing new air
    conditioning systems for barracks in the warmest of climates and
    targeted demolition to remove buildings not suitable for our Marines.
        In the near term for Material, Marines can expect to see common
    space furniture replaced three times faster than in years past and
    replacement of lock systems across the entire barracks portfolio within
    the next 2 years. We are also committed to replacing room furniture,
    washers, and dryers at a much greater frequency through a centralized
    procurement system.
        Health Care. Quality healthcare for our Marines is the minimum
    standard for readiness and is vital to the All-Volunteer Force.
    Overseas, and primarily in Japan, network care in the civilian
    community is not as readily accessible at the standard set by the
    Department of Defense for our Marines and their families. In
    recognition of this fact, the Marine Corps conducted a data-driven area
    assessment on delayed access to care. Guided by the results of this
    assessment, the Marine Corps is working with Navy Medicine and the
    Defense Health Agency to identify the location and need of specialties
    and develop a plan to address them. We are thankful for Congress'
    support for the Defense Health Agency implementation and its support to
    address the gap between DoD contract healthcare labor rates and the
    civilian market.
        Sexual Assault Prevention and Response. Sexual assault is a crime,
    and the Marine Corps always focuses on assisting victims with care and
    support and holding alleged perpetrators appropriately accountable. As
    of December 2023, the Marine Corps Office of the Special Trial Counsel
    is fully staffed and operational worldwide. This program will
    professionalize prosecution of special victims offenses and
    strengthening victims' confidence in the military justice system. The
    Marine Corps continues to hold its commanders and senior enlisted
    leaders responsible for the command climate of their units and for
    fostering a culture of respect for all.
      --Our Training & Education Command has undertaken a comprehensive
            review and modification of our training covering the career of
            a Marine--from the first instance a poolee commits to the Corps
            to training for our Colonel-level commanders. Foundationally,
            this training review and implementation has leveraged the
            Independent Review Commission on Sexual Assault in the Military
            (IRC) training requirements.
      --In FY23, the Marine Corps worked to hire 358 positions across the
            enterprise and another 92 in FY24 in support of IRC
            recommendations approved by the Secretary of Defense and
            prevention efforts. This hiring is in addition to the
            previously authorized 120 Marine Corps full-time equivalents
            (FTE) in prevention and response. As of January 2024, 162
            employees have been onboarded, and another 273 hiring actions
            are in process. We remain unsatisfied with the pace of our
            hiring, especially in certain locations where labor and
            workforce factors limit our available pool of applicants. We
            will continue to work with Congress to develop policy
            initiatives to accelerate this effort.
        Marine Corps Total Fitness. Marine Corps Total Fitness is the
    summation of physical, mental, spiritual, and social fitness programs
    that equip our Marines with the tools of resiliency and fortitude
    required to fight at their highest potential and prevent unnecessary
    loss due to factors ranging from non-EAS attrition to the tragedy of
    suicide. The Marine Corps takes a holistic approach to total fitness,
    understanding that fitness is more than simply possessing high physical
    fitness or mental aptitude scores. Upon assuming the duties of the 39th
    Commandant, I immediately directed simple but effective measures to
    supplement our already robust total fitness initiatives--a renewed
    focus on Quality of Life by improving the quality of our living spaces,
    our chow halls, and 24/7 access to on-base gyms. Further, I will
    continue to ensure access to the programs available to our Marines
    using force-wide person-to-person engagement programs such as Unit
    Marine Awareness and Prevention Integrated Training, which every Marine
    in the Corps receives annually.
        As a Corps, we apply a public health approach to prevention,
    focusing on ensuring the health, safety, and well?being of the entire
    Marine Corps community. Our efforts aim to strengthen protective
    factors that reduce the risk of individuals experiencing harmful
    behaviors. For example, social connections, social support, and
    positive social relationships are protective factors against a spectrum
    of issues including child abuse, domestic abuse, hazing, sexual
    violence, substance abuse, youth violence, and suicide-related
    behavior. Skill-building is an essential component of prevention and
    equips Marines and their families with the tools needed to cope with
    stressors before they become overwhelming. Examples of skill-building
    include building problem-solving, coping, anger management, and healthy
    relationship skills.
        Over the last year, the Marine Corps Behavioral Programs Office has
    implemented several efforts to combat the factors contributing to
    harmful behavior and suicide. Their efforts include the third iteration
    of our annual Wellness Symposium to inform unit Suicide Prevention
    Officers, Suicide Prevention Program Coordinators, and uniformed
    leaders. The office also partnered with the Lejeune Leadership
    Institute to reinforce prevention efforts at our Marine Corps Recruit
    Depots through leadership and ethics courses. Our Safety Division has
    also updated our Cognitive Behavioral Therapy curriculum. We have
    initiated a deliberate service-wide messaging campaign targeted at
    Total Fitness and suicide prevention. In fact, the second message to
    the entire force that the Sergeant Major of the Marine Corps and I
    recorded was specifically aimed at addressing mental health and suicide
    prevention directly.
        Safety. Safety is a critical component of our Corps and a key
    indicator of a unit's discipline. Operational excellence is the
    professional, efficient, and expert execution of our warfighting
    missions, functions, and tasks. It demands a culture of continuous
    improvement and the pursuit of the highest standards. Safety is not a
    restriction or obstacle to realistic or challenging training--it is a
    requirement. Many mishaps are preventable when we comply with
    established procedures and take action to stop unsafe acts before they
    occur. Our safety culture is strong but must be doggedly maintained and
    actively inculcated into our youngest Marines. When I became
    Commandant, I directed the assignment of a General Officer to lead our
    service safety initiatives and provide the requisite level of oversight
    and leadership. I am grateful to Congress for the additional
    authorization of a general officer that enabled this assignment.
        Childcare. Our Child and Youth Programs (CYP) provide high-quality,
    accessible, affordable care aboard 16 Marine Corps installations and
    through contractual partnerships. Some of the benefits CYP offers
    include Child Development Programs, the Community-Based Child Care Fee
    Assistance Program, and Youth Programming. We continue to make progress
    in recovering from the effects of COVID-19 on our childcare network.
    The Marine Corps Child Development Center's (CDC) unmet needs list
    continues to shrink, with the current total at 962 spaces.
        We are addressing childcare waitlist issues by emphasizing hiring
    efforts and a non-competitive childcare employee transfer program.
      --Beginning in FY23, we added over $100 million to the Child and
            Youth Program portfolio to hire more employees at increased
            wages to help retain a professional workforce. Our average CDC
            employee salary is now higher than those outside the gate at
            most installations.
      --In FY23, direct care employees' salaries were increased beyond the
            federally mandated $15 per hour. The minimum wage of an entry-
            level employee is $18.20 per hour. Childcare employees with
            children enrolled in the program now receive a 50 percent
            reduction in fees for the first child and a 20 percent
            reduction for subsequent children.
      --Our current staffing turnover rate is 20 percent, a marked
            improvement over the FY21 and FY22 turnover rates of 34 percent
            and 45 percent, respectively. Departing employees listed
            ``relocation'' as the primary reason they resigned in about a
            third of cases, which is explained by the fact that many CDC
            employees are spouses who move alongside their servicemember.
            Military spouses comprise 40 percent of the Marine Corps' Child
            and Youth Programs employees. Spouse employment is important
            for many Marine Corps families and can be a significant factor
            in their financial security, readiness, and retention. Family
            Member Employment Assistance Program is available at each
            Marine Corps installation and provides employment related
            referral services, career and skill assessments, career
            coaching, job search guidance, portal career opportunities, and
            education centers referrals/guidance. We also reimburse
            eligible Marine spouses up to $1,000 for state licensure and
            certification cost arising from relocation to another state. We
            appreciate Congress' recent expansion of this program and
            continued support. To address the challenge of PCS cycles, we
            have implemented a CDC employee non-competitive transfer
            program that allows employees to transfer from their current
            position more seamlessly to a similar one at a different
            installation. This single initiative has enabled us to retain
            more than 180 spouse employees, whom we may have otherwise
            lost.
      --To mitigate waitlists, we also offer childcare fee assistance for
            eligible Marines assigned to an installation with a significant
            waitlist. Over the last three Fiscal Years, the rate of fee
            assistance utilization has increased steadily for both
            community-based childcare providers as well as children served.
            In Fiscal Year 2023, over 1,600 children were enrolled in the
            fee assistance program at over 620 community-based providers,
            at a total cost of $6.1 million. We recently increased the
            maximum amount of fee assistance, which will undoubtedly help
            our Marine families, especially those in high-cost areas.
        We appreciate Congress's support to improve childcare delivery in
    all its forms. Access to and affordability quality and reliable
    childcare enables Marines to focus on their duties, which directly
    impacts our readiness and lethality.
        Overseas and Pacific Marines. The Marine Corps has established a
    Pacific cell to focus solely on improving the quality of life and
    morale for our Marines, civilian workforce, and families throughout the
    Indo-Pacific. This cell is engaged with units stationed in the Pacific
    and has solicited direct feedback. One idea we are studying is the
    adequacy of policies regarding shipment and storage of privately owned
    vehicles for Marines stationed overseas. Those changes would improve
    spouse employment, access to childcare, and other quality-of-life
    priorities. We are considering other monetary and non-monetary
    incentives to reduce the cost and stress of executing orders to
    overseas locations.
    Recruiting, Making, and Retaining Marines
        Recruiting. Our success in maintaining an elite force begins with
    recruiting young men and women who possess the character, mental
    aptitude, physical and psychological fitness, and desire required to
    earn the title, ``Marine.'' Recruiters face a challenging environment.
    Labor market challenges, historic lows in qualification rates, and
    lower propensities to join have made it increasingly difficult to
    maintain our recruiting momentum. Nonetheless, we do not ask young men
    and women to join us, and we do not promise them an easy life--instead,
    we challenge them to try out for and earn the privilege to wear the
    Eagle, Globe, and Anchor. Those who meet and sustain our high standards
    deserve our best leadership. We are a proud organization that welcomes
    and judges all based on one standard--the Marine Corps standard.
        There is no better visible example of our disciplined warriors than
    our recruiters. We send our very best to recruiting--our recruiters are
    often the first Marine a young person ever meets. One in four of our
    general officers have been recruiters during their career, and we pride
    ourselves in assigning a sergeant major to every recruiting station. We
    value the mission--not only for the immediate results of recruiting the
    best fighting force for our Nation--but also for the professional
    development and leadership that such rigorous duty instills in a Marine
    leader. As it is such a challenging duty, we are paying particular
    attention to the quality of life for our recruiters. Incentives like
    monetary bonuses help, but we understand that non-monetary incentives
    often make the difference. Additionally, and in keeping with Marines'
    tenet of ``exploit success,'' I recently directed an increase of
    several hundred recruiters to ensure our continued success in
    accomplishing our mission and sustaining the momentum in re-building
    our Delayed Entry Pool.
        Our performance speaks for itself. As you know, Marine Corps
    Recruiting Command achieved its Fiscal Year 2023 recruiting mission
    while sustaining our high standards. Last fiscal year, over 98 percent
    of our recruiting accessions were high school graduates, exceeding the
    Department of Defense's standard of 90 percent. While we are authorized
    up to 4% of accessions from the CAT IV mental group, we have
    deliberately chosen not to do so and did not access any CAT IV
    applicants in 2023. In addition, the average Armed Forces Qualification
    Test (AFQT) score for Marine recruits was over 60--which remains well
    above the AFQT average score of 50; sixty-six percent scored in the top
    three tiers of the AFQT, exceeding the DoD standard of 60 percent.
    Marine Corps Recruiting Command has also successfully made our shipping
    and contracting missions every month this fiscal year. Of note, we have
    also surpassed the Fiscal Year 2023 total number of Prior Service
    Enlistment Program (PSEP) re-accessions back into the Active Component.
    So far, in Fiscal Year 2024, we have already attained 126 PSEPs in
    comparison to the 121 total in Fiscal Year 2023. For our Officer
    mission, we have accessed 639 officers so far this fiscal year, which
    is on-pace to meet or exceed the mission by category and component.
        Retention. Over the past 12 months, we have implemented five major
    reform initiatives: (1) the Commandant's Active and Reserve Retention
    Program, 2) the Expanded First Term Alignment Plan (FTAP) Retention
    Model, (3) the Small Unit Leader Initiative, (4) Promotion Allocation
    Fulfillment, and (5) Marine Corps Graduate Education Program (MCGEP)
    Enlisted Pilot. These programs provide demonstrable results, and I am
    prepared to provide the Committee with detailed briefings on each. As
    just one example of the impact these initiatives are having, we entered
    FY23 with a persistent shortfall of approximately 2,000 Sergeants
    across the force. Via implementing the Small Unit Leader Initiative, we
    not only decreased that shortfall to 150, but also secured the
    retention of the top talent within our E4 ranks for years via early re-
    enlistment.
        In FY22, we successfully re-enlisted 5,918 (22%) of the eligible
    first-term population of 26,221 Marines. In FY23, we expanded those
    efforts and successfully re-enlisted 7,070 (27%) of the eligible first-
    term population of 26,121 Marines. Most importantly, 5,670 of those re-
    enlisted remained in the FMF to provide greater unit cohesion. With
    even greater goals in FY24, we anticipate continued high re-enlistment
    rates, particularly among first-term Marines. In FY23, we initiated a
    pilot program targeting our infantry community, seeking to create
    greater unit cohesion and individual Marine and family stability via
    60-month infantry-only enlistment contracts. Due to the success of that
    effort, on 1 October 2023, all infantry contracts became 60-month
    contracts. Within the first quarter of this FY, we have already
    exceeded our monthly mission goals, and for the year-to-date, we have
    shipped 149% of the requirement. We will meet and exceed our annual
    infantry recruiting mission of 2,579 this year.
        It is important to note that as the Marine Corps shifts from a
    ``Recruit and Replace'' to an ``Invest and Retain'' model, the service
    must incentivize the retention of the highest quality Marines,
    regardless of occupational specialty. The idea that ``there is always
    boat space for talent'' is our guiding principle. However, if not
    diligently managed, MOS-agnostic retention may result in uneven
    retention across occupational specialties. To ensure the even
    distribution of retained talent across the force, we will continue
    incentivizing lateral move opportunities for qualified Marines by
    reducing administrative barriers to lateral moves and offering targeted
    bonuses for high-demand, low-density skills. Moreover, within the next
    year, we can expect the delivery and enhancement of the Talent
    Management Engagement Portal and AI/ML enabled models such as the
    Retention Prediction Network, Talent Marketplace, and Modernized
    Enlisted Staffing Goal Model that will allow us to better identify the
    highest quality Marines for targeted retention.
    Optimizing Employment of our Reserves
        By Maximizing the Potential of our Reserves, we continue to forge a
    lethal Total Force that is greater than the sum of its parts while
    taking stress off the Active Component. To maximize the potential of
    our reserves, we must appropriately resource our AC end strength to
    172,300 and RC end strength to 32,500; research the necessary policies
    and authorities required to enable AC and RC permeability; and return
    to historic National Guard Reserve Equipment Account funding levels to
    ensure the modernization and readiness of our Reserves. The Selected
    Marine Corps Reserve (SMCR) is a service-retained force and reservoir
    of capabilities similar to our three active-duty MEFs. Our world-class
    Marine Corps Reserve routinely provides forces to satisfy service needs
    from training to generate readiness, build partner capacity in SOUTHCOM
    and AFRICOM, and augment traditional global force management
    requirements. Purpose-built to augment, sustain, and reinforce the
    active component, our SMCR units, Individual Mobilization Augmentee
    (IMA) Detachments, and Individual Ready Reserve (IRR) are sources of
    competitive warfighting advantage.
                                   conclusion
        The Marine Corps will be ready to respond to any crisis or
    contingency in the future, just as we have in the past. I remain
    committed to ensuring the Marine Corps remains our Nation's Force-in-
    Readiness. We will never lower our standards or sacrifice the
    reputation associated with the sacred title, ``Marine''--and will
    remain innovative and agile in our approach to warfighting. With your
    help, we will ensure your Marines are provided with world-class
    training and improved quality of life and are enabled with the
    capabilities required to win our Nation's battles against any
    adversary. I promise you that every dollar invested will give you the
    greatest return to realize our modernization strategy, build a more
    lethal force, and take care of your Marines and their families. I thank
    the Committee for your continued advocacy and support for your Marines.
    Semper Fidelis.

        Senator Tester. Thank you for your statement, General. We
    appreciate you being here as well as the entire panel.
        I'm going to start with you with rounds of questions here.
        Secretary Del Toro, this past weekend U.S. forces stationed
    in the Middle East defended Israel from Iran's barrage of
    missiles. This is just the latest in a series of actions U.S.
    forces have taken in the area to defend assets and assets of
    our allies.
        Secretary Del Toro, so far you're paying for these
    operations out of your existing budget, even though the Senate-
    passed National Security Supplemental contains $2.4 billion to
    cover these costs, including replacing the missiles.
        Can you please explain the impact of having to cover these
    costs without the Supplemental funds that the Senate has
    already passed, by the way?
        Secretary Del Toro. Well, thank you, Mr. Chairman, and
    thank you both for actually recognizing the bravery and the
    courage of our sailors and Marines who've been now operating in
    both the Mediterranean and the Red Sea over the course of the
    last 6 months, first the Ford Carrier Strike Group, then
    followed by the Bataan Amphibious Readiness Group, as well,
    too, and, of course, now the Eisenhower Carrier Strike Group
    with additional ships that are being provided for in the
    Mediterranean.
        Over the course of the last 6 months we have actually
    encountered over a 130 direct attacks on U.S. Navy ships and
    merchant ships. The munitions that are critical to these
    counter strikes are extremely important to the Department of
    the Navy. We currently have approaching $1 billion in munitions
    that we need to replenish at some point in time.
        So, therefore, over $2 billion that's provided for in the
    Supplemental is direly critical to our Navy and Marine Corps to
    be able to replenish those munitions and continue to provide
    the types of defensive measures that we have this past six and
    a half months now.
        Senator Tester. Thank you.
        Admiral Franchetti, I know that ship maintenance is a
    priority for you and addressing that.
        What is the impact of extended operations and deployment on
    the force?
        Admiral Franchetti. Ship maintenance is one of my biggest
    priorities.
        Senator Tester. I don't know that your mic is on. Go ahead.
    Sorry.
        Admiral Franchetti. Okay. On?
        Secretary Del Toro. It's on now.
        Senator Tester. Yes. There you go.
        Admiral Franchetti. Ship maintenance is one of my very
    biggest priorities. When I talk about getting more players on
    the field, you know, one way to do that, of course, is to
    procure new ships, but the other one is to get them in and out
    of maintenance on time.
        So we're very focused as we are looking at the ships that
    are already underway, several of which have been extended,
    making sure that we work with our shipyards and our planning to
    be able to get them in and out of maintenance as quickly as
    they come back.
        I think more broadly, we're very focused on improving our
    processes that are related to shipyard maintenance in general.
    Some of that is making sure that we get our packages locked in
    about 6 months ahead of time before the ships come back so we
    can plan the work ahead of time so we don't have as much growth
    work or new work once the ship is in the actual availability.
        The other one is putting in place basically a surface
    readiness group. It's going to be led by a second tour, a
    sequential command captain at the 06 level, who will have a
    team of folks that are very experienced in shipyard maintenance
    to bring the ships through, help provide that expertise and
    oversight along with our NAVSEA (Naval Sea Systems Command)
    counterparts that will be doing that.
        So, again, I think we're starting to see some big
    improvements in shipyard maintenance for our surface ships and
    look forward to continuing that progress. We can't take our
    foot off the gas and I'm very focused on this.
        Senator Tester. Thank you.
        Secretary Del Toro, you had a 45-day review of Navy
    shipbuilding, documented a 3-year delay in the new Frigate
    Program, 2-year delay in the latest aircraft carrier, 2-to-3-
    year delay in the Virginia Class Attack submarines, 12-to-16-
    month delay in the Columbia Class submarine.
        This is despite unprecedented support by Congress.
    Headlines and delays like this should constitute a full-blown
    emergency for the Navy and the shipbuilding industry.
        I know there's no quick fixes, but I have yet to see what
    either party is prepared to do about it and to be specific,
    who's being held accountable.
        Now, look, we do studies and we do surveys. I'm talking
    about we being the Senate and that's exactly what they end up
    being. I think your review has shown that we've got a problem,
    a major problem and a problem that puts our national security
    at risk.
        So the question is, is how do we hold these folks
    accountable? What do we need to do to make sure these folks
    understand that profitability in the shipbuilding industry
    isn't your Number 1 responsibility? It's to get these ships out
    and submarines and equipment out on time, on budget the way we
    need them to keep this country safe.
        Secretary Del Toro. That's exactly right, Mr. Chairman, and
    when I was confirmed, I committed to you that I'd be honest,
    transparent, and committed to making a difference and that's my
    intent. That was my intent in asking for the 45-day review,
    which reviewed over 10 shipbuilding programs for the purpose of
    providing the assessment of national and local causes of
    shipbuilding challenges.
        In that regard, the contributing factors that were
    discovered in that review are lead ship issues, design
    maturity, first of class challenges faced by the shipyards, as
    well, transition of production, design workforce, and other
    shortage of blue collar labor across the country, as well.
        It was also determined that shipyards simply aren't making
    enough of a contribution on their own to increasing their own
    production rates at their own shipyards which is also critical.
        I mean, it's just one example, Mr. Chairman. We're making a
    $15 billion investment over the course of the next 5 years,
    money that's the taxpayers' money, and at the same time many of
    these shipyards are actually making stock buyback programs
    where they're buying back stocks to the tune of $4 billion and
    upwards of that. That's unforgivable.
        We need them to invest in their own shipyards just as much
    as the American taxpayer is investing in the budget to get
    these production lines back up.
        Senator Tester. Well, I would just say that, you know,
    Eisenhower warned of the military industrial complex. The fact
    of the matter is, is that they're an important partner for us.
    They're an important part of the equation and I get it that
    excuses are many, whether it's workforce or whatever it is, but
    the fact that some of these corporations are using the money to
    buy stocks back without building capacity first is incredibly
    irresponsible and I hope they're listening because, quite
    frankly, we will do whatever we can do to make sure they have a
    workforce, but, dammit, they gotta step up to plate and in many
    cases I have not seen that happen.
        Senator Collins.
        Senator Collins. Thank you, Mr. Chairman.
        Admiral, I want to follow up on the Chairman's question to
    you about maintenance and delays. You addressed it from surface
    ships. I want to talk to you about submarines.
        The Shipyard Infrastructure Optimization Program, SIOP, and
    the Ship Depot Maintenance Line Item are both well resourced in
    the budget request. I support these needed investments in the
    Portsmouth Naval Shipyard in Kittery, Maine and in our other
    shipyards because during the past decade fewer than one-third
    of the Navy's attack submarines have completed maintenance on
    time.
        Last year Navy officials conceded that there were nearly
    twice as many non-deployable submarines as were anticipated
    because of maintenance or other issues. This is the trend that
    we simply have to reverse.
        To what extent we make the investments in the budget can we
    expect that the submarine maintenance backlog will decline?
        Admiral Franchetti. Thank you, Senator, and as you know,
    our submarines are a true advantage and we really do need to
    improve on our overall submarine maintenance.
        I think two things that you mentioned there. So the
    Shipyard Infrastructure Optimization Program, you know, this
    isn't a once in a generation, really once in a 100 year
    overhaul of our four public shipyards. We really appreciate the
    investments in those shipyards because they are so critical to
    that maintenance that you're talking about and this is
    recapitalization of the dry docks. It is a reorganization of
    the shipyard to ensure that the flow of the work across the
    shipyard will be effective and more efficient as we're doing
    that maintenance and then, of course, upgrading the equipment
    that is part of that.
        It's all part of the Shipyard Optimization Program that
    we're putting in place, and I think you will really see those
    investments pay off over many years. These are long projects
    and again we appreciate the investment in that.
        As far as getting our submarines out of the shipyard on
    time, you know, we've made a lot of progress in putting in
    place processes that help us look at the data analytics so we
    can better understand where the choke points, what are the
    barriers to getting our submarines out of maintenance on time,
    and then working to implement the corrections.
        We've put the Head of our Submarine Force in charge of that
    overall process last year to really drive the operational
    demand and understand the sense of urgency that we need in each
    one of our shipyards to be able to get them out on time.
        One of the other things we've found was that a shortage of
    supply parts and rotatable pool would be a way. So we put that
    in our budget for last year. We're looking forward to getting
    those all on contract now, a little bit delayed, about 6 months
    delayed, but we will get that in there and then expect to see
    positive results of having those spare parts and long lead time
    materials in place ahead of time to expedite that maintenance.
        So, again, we're starting to see some good progress out in
    Pearl Harbor Naval Shipyard. We have two submarines, the
    Minnesota and the Illinois, that are currently on track for
    their maintenance availabilities, and we look to take the
    learning that they're doing out in Pearl Harbor and bring that
    to our other shipyards, as well.
        Senator Collins. Well, the Portsmouth Naval Shipyard in
    Kittery, Maine, is the gold standard, just to get that on the
    record, but obviously I visited there many times and the
    physical constraints are a real barrier and that's why the SIOP
    Program has been absolutely critical.
        General Smith, I want to talk to you about an unfunded
    priority that you've submitted and that's for the procurement
    of four F-35 engines and engine-powered modules to alleviate
    potential logistical problems associated with transporting
    engines to ships and the time that it takes to replace an
    engine at sea.
        Could you comment on how funding additional F-35C spare
    engines and power modules would improve F-35 readiness and
    better support our operational commanders?
        General Smith. Senator, I can, and thank you for the
    question.
        Those four engines enable us to do repairs at sea which are
    incredibly difficult when we're deployed aboard our amphibious
    landing ships, our LHAs, LHDs, and when we have the appropriate
    number of spares, we can in stride swap an engine out. We have
    the maintainers and the tools to do that at sea but we need the
    spare engines to do so and that increases our readiness
    dramatically.
        So those four engines are vital as we have encountered, I
    would say, higher than expected degradation in our engines.
        Senator Collins. Thank you.
        I couldn't help but notice this morning that sitting next
    to our highly-decorated Marine are two former commanders or
    captains of the Arleigh Burke destroyers and I appreciate the
    fact that you understand that they are truly the workhorse of
    the fleet and have been there for more than 3 decades.
        Mr. Secretary, could you describe for the members of the
    committee who may be less familiar what the important role
    played by our destroyers, how important they have been both in
    protecting the shipping lanes in the Red Sea and in the defense
    of Israel this past weekend?
        Secretary Del Toro. Well, thank you, Madam Vice Chair.
        Without question, the Arleigh Burke destroyer is a multi-
    mission platform that conducts numerous missions, especially
    including air defense and ballistic missile, defense for U.S.
    forces and our allies and partners has been critically
    important to the defense of the Red Sea over the course of the
    last 6 months, and they really have operated extraordinarily
    well.
        It's a testament to the investments that have been made by
    the Department of the Navy and the Congress specifically over
    the course of the last several decades, investments in the
    Aegis Combat System and the weapons systems and the munitions
    that actually go on those ships to be able to effectively
    defend our national security interests.
        As you know, over 90 percent of the world's trade actually
    travels on the water and we also have undersea cables that
    carry up to 10 trillion financial transactions every single
    day.
        So the protections of those seas and those undersea cables
    is incredibly important and it is actually the Arleigh Burke
    destroyer and hopefully in the future the Constellation Class
    frigate, as well, too, that will provide that defense to our
    national security.
        Senator Collins [presiding.] Thank you.
        Madam Chair, welcome.
        Senator Murray. Thank you. Thank you very much to our Vice
    Chair and to Chair Tester, thank you all to our witnesses for
    joining us and thank you for your service to our country.
        At a time when we know some of our adversaries are making
    significant investment in their Navies, we have to keep pace
    and maintain strong investments for our Navy and Marine Corps
    and that doesn't mean just equipment. We have to invest in our
    men and women in uniform, getting them adequate training and
    equipment and making sure their families have support, like
    childcare, mental health care, safe quality housing, and a lot
    more.
        And while we discuss what's needed for the Navy and Marine
    Corps in fiscal year 2025, I can't neglect to mention that we
    must also finish the job on fiscal year 2024 by passing the
    National Security Supplemental ASAP.
        Iran's attacks over the weekend are a very stark reminder
    of the precarious moment that we're in, the pressing challenges
    we and our allies face across the globe, including the risk of
    further escalation of hostilities in the Middle East, and of
    the urgent need to pass the National Security Supplemental.
        It is critical we act, that we stand with our allies that
    we deter escalation and more conflict, and, of course, we know
    that Americans support turning the tide for the war in Ukraine.
        For months I've been insisting we pass a comprehensive and
    bipartisan national securities supplemental I wrote with many
    of you who are here in this room. So I'm glad the Speaker now
    seems to be moving in that direction. I look forward to working
    with Chairman Cole, Vice Chair Collins, Ranking Member DeLauro
    to make this a reality.
        After so many months of needless delay from House
    Republicans, we've got to get this done. We need to get it
    right, as everyone in the room knows, the details matter, and
    show the world that there is bipartisan support to stand with
    our allies.
        Having said that, let me turn to questions for our
    witnesses.
        Mr. Secretary, last week reporting from military.com
    reveals deeply disturbing accounts of child abuse by child
    development center employees at Navy installations. The
    investigation found that Navy rules prioritized protecting the
    institution, keep parents in the dark and have minimal
    safeguards to guarantee accountability.
        According to the reporting, base commanders and military
    police units often don't know who is responsible for reporting
    and investigating abuse at CDCs (Child Development Centers) and
    in one case it took a full year before workers responsible for
    abuse were charged in a civilian court.
        The reporters interviewed a dozen families with similar
    stories of not being told when their child was injured and in
    many cases parents shouldered hefty legal bills to force the
    military branches to tell them what happened.
        I cannot emphasize enough how concerning and unacceptable
    that is.
        So, Mr. Secretary, I want to know, what is the Navy doing
    to investigate these reports and ensure that those responsible
    are held accountable?
        Secretary Del Toro. Well, Senator, first and foremost,
    thank you for the concern that you display for our service
    members and their families, as well, too.
        I had four children growing up, many of them actually were
    in childcare development centers, and there is no greater
    priority than the safety of our service men and women in
    uniform and the civilians that actually use those CDCs, as
    well, too.
        I'm quite familiar with the details actually from the 2022
    case of this child development center, but there are
    inaccuracies, as well, too, in the reporting of those facts. In
    fact, law enforcement officials were informed on the very first
    day that they were discovered and they were actually brought to
    bear.
        Unfortunately, we sometimes can't control how long it takes
    for civilian investigations to be followed through and for the
    burdens that are placed on families in having to demonstrate
    facts, as well, too, throughout those investigations. But
    that's no excuse obviously for trying to move as quickly as
    possible.
        The director of that childcare center was actually fired.
    There were actually seven other employees that were fired along
    with it and I assure you that moving forward we have learned
    the lessons from that case, from both those cases, and ensuring
    the highest levels of standards for security and care for our
    CDCs throughout the entire Department of the Navy and Marine
    Corps.
        Senator Murray. So what are you doing to make sure this
    never happens again?
        Secretary Del Toro. Well, we've actually learned those
    lessons and we've applied those lessons throughout all child
    development centers from 2 years ago. There were numerous
    policy violations that were not adhered to, as well, too. So
    we've conducted training across all those CDCs and----
        Senator Murray. Is that training----
        Secretary Del Toro [continuing]. Those trainings have been
    conducted and applied across all CDCs in the Navy and Marine
    Corps today.
        Senator Murray. Okay. Well, I'm going to be following this
    very closely and I expect this to be investigated and addressed
    swiftly and report back to us so our men----
        Secretary Del Toro. Already have, Senator. We'd be happy to
    make those facts available to your office.
        Senator Murray. Okay. I would appreciate that. Men and
    women in uniform can only do their jobs if they know their kids
    are okay.
        Secretary Del Toro. Couldn't agree with you more, ma'am.
        Senator Murray. Okay. In 2022 the Defense Health Agency
    removed labor and delivery services from naval hospitals,
    Bremerton and Kitsap Counties in my State, and it forced
    service members and their families to then seek care in the
    community or travel over 2 hours to Madigan Army Medical
    Center.
        Kitsap County already has a medical provider shortage and
    the reduction of services at the Bremerton Hospital has really
    increased the strain on the system.
        The Navy predicts that the USS Reagan is going to bring an
    additional 3,500 additional crew members and families to the
    Puget Sound Naval Shipyard.
        Talk to me about how you are going to adjust healthcare
    capacity to address the needs as that increase in population
    comes there.
        Secretary Del Toro. Senator, as much of a concern as this
    is to you, it's as much a concern to me, as well, too,
    especially in the Pacific Northwest where we are facing
    significant challenges in terms of medical care providers not
    just in the military service but also in the civilian sector,
    as well, too.
        We are working very closely with the DHA (Defense Health
    Agency). I myself have discussed this situation with the Under
    Secretary for Health, trying to work with DHA in providing them
    as much of support as we can from the military side, from the
    operational medical side to provide additional staff to the
    MTFs (Military Treatment Facility) themselves so that we can
    beef them up.
        I have actually visited numerous clinics in the Pacific
    Northwest and I'm aware of some of the shortages and the great
    work that they're doing despite the shortages, as well.
        We will continue to work with the Office of the Secretary
    of Defense and the DHA and the Deputy Secretary of Defense to
    provide the necessary support from operational Navy medical
    resources basically, but that also creates a challenge in terms
    of ensuring that the standards of proficiency that are required
    in operational medical readiness are also adhered to should we
    ever have to go into a conflict.
        Senator Murray. Okay. Well, let's stay in touch on that and
    keep us informed.
        Secretary Del Toro. Yes, ma'am.
        Senator Murray. And I'm out of time, but I did want to
    mention Congress approved a $195 million to address the
    electrical bone of the Puget Sound Naval Shipyard and provided
    a $130 million over the President's budget request to address
    the seismic concerns at PSNS (Puget Sound Naval Shipyard).
    Those projects are essential for the Navy SIOP and its Ford
    Class Aircraft Modernization Projects.
        So if you could provide an update to us or my staff on the
    Navy's work to address the seismic issues and I would really
    appreciate it.
        Secretary Del Toro. I'd be happy to do so and I cannot
    thank the support of the communities in the Pacific Northwest,
    state government, and local government working with the
    Department of the Navy as we actually worked through those
    challenges last year.
        Senator Murray. Thank you.
        Secretary Del Toro. It really was a case study in how it
    can be effectively executed when everybody is working together
    as one team.
        Senator Murray. Okay. Great. Thank you.
        Senator Collins. Thank you, Chair Murray.
        Senator Hoeven.
        Senator Hoeven. Thank you, Ranking Member Collins. I guess
    Acting Chair now, huh?
        Senator Collins. Yes. I like that.
        Senator Hoeven. Yes. Me, too.
        [Laughter.]
        Senator Hoeven. Thanks to all of you for being here and for
    your service.
        Secretary Del Toro, there's been a drawdown in airborne ISR
    (intelligence, surveillance, and reconnaissance) and I know
    that there's a sense that we're going to do a lot of it from
    space which we are, but at the same time, you know, we're
    hearing from combatant commanders and everybody else that they
    need that airborne ISR.
        How important is it that we not only maintain our ISR
    capabilities but that we continue to have the best ISR
    globally, for example, for things like survivability of the
    fleet?
        Secretary Del Toro. Senator, I couldn't agree with you
    more. There just simply aren't enough ISR assets throughout the
    entire department and there will always be a need for more of
    them, especially as we get into the realm of countering
    unmanned aerial threats, as well, too, not just to our forces
    at sea but to our installations commands, as well, too.
        Although I can't get into the details of some of the major
    investments that we've made to counter those threats and be
    happy to do so in closed session, there is a high demand for
    those assets and we need to continue and invest more in our
    budgets moving forward.
        Senator Hoeven. Thank you, Secretary.
        Admiral Franchetti, do you have enough capacity against
    missile threats not only in the Mid East, let's start there,
    obviously what we saw recently with the attack from Iran on
    Israel, but also in Europe and East Asia?
        Admiral Franchetti. Thank you.
        You know, this is one of the critical things that we
    provide every day, air defense, missile defense, and, you know,
    we really need to continue to invest in our weapons industrial
    base as well as we're making investments in the broader defense
    industrial base, so continuing to invest in our weapons
    industrial base is really important.
        I think the Navy really about 2 years ago, we started
    investing in all of our critical munitions that we needed,
    including those we need for air defense, and we want to
    continue those investments.
        We're looking at that as an enterprise investment, one that
    in the past munitions were a little bit of a bill payer for
    some of our other capabilities and we have changed that that we
    are working to invest in those munitions that we need.
        We're also partnering with Missile Defense Agency, of
    course, for ballistic missile defense and look forward to that
    continued partnership and getting exactly what we need to
    defend our Nation.
        Senator Hoeven. So your capacity status right now is
    adequate, inadequate?
        Admiral Franchetti. So it is adequate for what we have now.
    As you'll see in our budget, we have requested additional funds
    for continued improvement in those investments for munitions as
    well as in the Supplemental to replenish what we've been using
    already in the Red Sea.
        Secretary Del Toro. Senator, may I just quickly add to
    that?
        Senator Hoeven. Sure.
        Secretary Del Toro. I would argue that the President's
    budget numbers are adequate but that's also prior to the
    attacks that we've just had this weekend alone, for example.
        So we are now closely approaching a billion dollars on
    expenditures for munitions that we need paid back by the
    Supplemental which is why it's critical for Congress to pass
    the Supplemental this week so that we can actually get the
    additional resources to be able to supplement those munitions
    that will be critical moving forward.
        Senator Hoeven. Which is important to understand that a lot
    of the funding in the Supplemental goes to restoring our
    weapons as well as strengthening our military industrial base
    to produce more of those new sophisticated weapons rapidly,
    whether it's airborne assets or whether it's missile defense,
    the things that we need now and going forward, right?
        Secretary Del Toro. That's exactly right, Senator. I mean,
    we've been firing SM(standard missile)-2s. We've been firing
    SM-6s and just over the weekend SM-3s to actually counter the
    ballistic missile threat that's come from Iran.So we need this
    Supplemental to pass this week.
        Senator Hoeven. Yes. So it really does go to our arsenal
    and our defenses.
        Secretary Del Toro. Yes, sir. These are investments in our
    industrial base. There's no question about it.
        Senator Hoeven. Right. Then for either one of you or both
    of you on the nuclear deterrent commitment of the Triad and
    whether, you know, we're tracking both in terms of the Columbia
    Program and, you know, your commitment to that modernization of
    the nuclear Triad, starting with you, Secretary.
        Secretary Del Toro. Absolutely, Senator. I mean, the Navy's
    investment in the Columbia Class submarine has been enormous.
    It is our Number 1 acquisition priority and it will continue to
    be our Number 1 acquisition priority moving forward.
        We've also, as I came in to this role, made the decision in
    my first month as Secretary to assess the possible extensions
    of Ohio Class submarines, as well, recognizing that there could
    potentially be a gap in the Columbia Program as it's turning
    out to be accurate now and so we have actually assessed five
    SSBNs (Ship, Submersible, Ballistic, Nuclear), Ohio Class SSBNs
    now that can be extended for another deployment, and we will
    continue those efforts until we close any gap that might exist
    in the Nuclear Triad.
        Senator Hoeven. Very good. Admiral, anything to add there?
        Admiral Franchetti. Yes, Columbia is our Number 1
    investment priority.
        Senator Hoeven. Okay. Thanks to both of you.
        General Smith, again, same thing on ISR unmanned aircraft.
    You're actually working very hard to upgrade, modify,
    strengthen, enhance, you know, your ability to deploy and be
    that rapid reactionary force globally and I know you're looking
    at how do you do that in the modern age with new technologies.
        Address your need for airborne UAS in the battlefield.
        General Smith. Senator, we're focused on the MQ9. The MQ9
    is a vital platform for us. We're focused on the training and
    the procurement of that platform and what we call the TSOR pod,
    which they're a different classification level I'd be happy to
    come brief you on, but it can detect at great ranges adversary
    movements and it can seamlessly complete the kill chain for our
    long-range fire missile systems. So the MQ9 is vital to our
    future.
        Senator Hoeven. Both in terms of getting it but also the
    school, the development, the training, and so forth.
        General Smith. Absolutely.
        Senator Hoeven. That capacity as well?
        General Smith. Absolutely. We are currently working with
    the Air Force to train dually, but we need to stand up a
    schoolhouse, as well, to pull some of that pressure off the Air
    Force.
        Senator Hoeven. Where do you see other modifications and
    how do you think you make that expeditionary force more
    effective? What else can the committee do to help you in that
    process?
        General Smith. Senator, I would say steady procurement for
    our amphibs is actually the most vital thing for our
    expeditionary warfighting capability. We need steady funding
    for our LHAs on 4 year centers and our LPDs on 2 year centers
    because we are an expeditionary warfighting organization. We
    live to deploy----
        Senator Hoeven. Right.
        General Smith [continuing]. And that is the Number 1 thing
    for us, Senator.
        Senator Hoeven. Thank you. Again, thanks to all three of
    you.
        Thank you, Mr. Chair.
        Senator Tester [presiding.] Senator Boozman.
        Senator Boozman. Thank you, Mr. Chairman, and thank you all
    for being here. We appreciate the great work that you do
    ensuring the services not only have the resources to accomplish
    the mission but also taking care of the men and women that
    serve and sacrifice and their families. It certainly is a
    family affair.
        General Smith, the Marines Force Design 2030 requires
    forward deployed Marine sailors as a standing force. I
    understand the medium-range intercept capability system will be
    critical to support the standing force.
        Is this program funded at the level it needs to be in
    fiscal year 2025 and, if not, where do you need the funding to
    go? How will this help our allies in the Middle East?
        General Smith. Senator, the system you're describing, the
    medium-range intercept capability, is an Israeli-built Tamir
    missile combined with the TPS-80 gator radar and that gives us
    an incredible advantage in detection and action against inbound
    enemy air threats.
        We are on path to procure that. The current budget supports
    it, and it is really just a matter of time to build the arsenal
    of TPS-80s and the Tamir missiles that are required to be able
    to fully engage this system.
        Senator Boozman. So we're funded up and you've got the
    resources you need?
        General Smith. We do, Senator.
        Senator Boozman. Very good. Tell me, Admiral Franchetti,
    again the idea that we're in a situation where we have the
    issue of expenditure, you know, the idea of shooting a $2
    million missile at a $200,000 or less drone. What are we doing
    to solve that problem?
        Admiral Franchetti. Well, first, I couldn't be more proud
    of our Navy team, our investments have really made over the
    last 10 years to make sure that our surface ships would have
    the weapon systems they need, the training, and the confidence
    in those systems to be able to operate them the way that they
    are doing that in the Red Sea and, you know, you cannot put a
    price tag on the 300 sailors that are on each one of those
    ships and we are defending in-depth and using all of those
    capabilities that we put in place over really the last 10 years
    of investment.
        You know, I think we are working hard across the entire
    Joint Force to look as we see this changing character of war
    and the use of unmanned aerial systems. You saw it in our media
    in Azerbaijan. You're seeing it in Ukraine and Russia. You're
    seeing it here in the Red Sea, that we know we need to develop
    additional capabilities to counter those UASs (Unmanned
    Aircraft Systems), whether they're kinetic or non-kinetic, as
    quickly as possible, working with industry and the innovation
    base to bring to bear some technologies that are out there and
    we're hoping to get those on to our platforms as quickly as
    possible.
        Senator Boozman. So you feel like we're doing a good job of
    balancing near-term with the again investments that we need to
    go forward to actually counter? Does that make sense?
        Admiral Franchetti. I do. We're testing out a laser called
    the Helios System right now, but all of the services right now
    are testing out different types of capabilities to get there
    and I'd like to be able to work together with them to marinize
    some of those and again share lessons learned so we can get
    after this challenge because we know that it will be with us
    for the foreseeable future.
        Senator Boozman. Right. Thank you.
        Mr. Secretary, the Navy's $1 billion investment in
    unaccompanied housing is much needed to improve quality of
    life. We also know that there is more work to be done.
        Mr. Secretary, can you speak to how quality of life
    investments and to the value proposition of service, especially
    as the Navy continues as all the services do with recruiting?
        Secretary Del Toro. Thank you, Senator. Thank you for your
    commitment to quality of service for our Marines and our
    sailors. I've been committed to it the entire time that I've
    been Secretary as has the Secretary of Defense, as well, too,
    and I think those commitments are really paying out.
        We're seeing the highest retention rates in the Navy and
    Marine Corps today that we've seen in a very long time and I do
    believe it's fundamentally because of those quality of service
    investments, starting with increase in pay, 5.2 percent last
    year, 4.5 percent in this presidential budget. Combined it's
    the highest pay increase that we've seen in a long, long time.
        That's been compounded by a long-term commitment to
    improving family housing on the part of the Congress and the
    part of the department for over the last 20 years.
        However, I think we've fallen short when it comes to our
    commitment to unaccompanied housing and we're now correcting
    the record on that. For example, in the Marine Corps, the
    Commandant can talk to it, we've just surveyed all our Marine
    Corps housing. We essentially have 40,000 units basically that
    have been surveyed. We have 60,000 Marines living in those.
    17,000 have fallen short.
        We need to continue to make the infrastructure investments
    in our unaccompanied housing both in the Marine Corps and in
    the Navy moving forward.
        Part of the solution in my humble opinion is actually
    moving some of those barracks to privatize housing. When you
    take a look at the gold standard of housing in the Navy, for
    example, out in San Diego, that should be the standard
    basically for housing and so just this past year alone I made
    the decision to move six, and I'm glad the White House agreed
    with me, to move six of those additional housing units to that
    gold standard. More has to be done and certainly I will.
        I would welcome one of my service chiefs to comment on
    that, as well.
        Admiral Franchetti. I think it's also, in addition to the
    housing, it's also opportunities that folks have, for example,
    to cook their own food in the housing, to have access to
    fitness centers that are nearby, and, of course, making sure
    that the unaccompanied housing is not only new or modernized,
    it's also maintained properly. So we've put in place QR (Quick
    Response) codes that people can report their maintenance and,
    you know, really making strong investments in the FSRM
    (Facilities Sustainment, Restoration and Modernization)
    accounts and appreciate all the appropriations from the
    committee to be able to improve that.
        General Smith. I would echo the Secretary and my shipmate
    that the FSRM accounts are vital, the Facilities Sustainment
    Restoration and Modernization funds, to modernize the barracks
    that we do intend to keep and then the construction to build
    the new barracks that we intend to tear down and build new
    because the Marines deserve a quiet healthy place, climate-
    controlled, to live and to recuperate after a hard day's work.
        Senator Boozman. Very good. Well, thank you all. We really
    do appreciate your service in so many different ways.
        Thank you, Mr. Chairman.
        Senator Tester. Senator Graham.
        Senator Graham. Thank you, Mr. Chairman. Appreciate each of
    you for your service to our country.
        I want to try to keep this as simple as possible, so simple
    an Air Force person could understand what we're talking about
    when it comes to the Navy.
        There was a report done in June of last year called The
    Battle Force BFSAR. Are any of you familiar with that, Admiral?
        Admiral Franchetti. Yes.
        Senator Graham. Okay.
        Admiral Franchetti. Battle Force Structure Assessment.
        Senator Graham. There you go. We got one acronym down and
    many to go, I'm sure.
        It said we needed 381 manned ships and a 150 unmanned
    platforms for a total of 515, is that accurate?
        Admiral Franchetti. Yes. That's accurate and really every
    study since 2016 has said that we need----
        Senator Graham. Okay.
        Admiral Franchetti. [continuing]. A larger Navy.
        Senator Graham We need 515. How many do we have now in
    terms of ships?
        Admiral Franchetti. We have 293 ships today.
        Senator Graham. Okay.
        Admiral Franchetti. And we are continuing to----
        Senator Graham. How many will we have under this budget in
    2030?
        Admiral Franchetti. In 2030, we will----
        Senator Graham. Have 294 ships.
        Admiral Franchetti. [continuing]. Have 294 ships, yes.
        Senator Graham. Okay. We're going to have one more ship
    than we have today in 2030. We got a long way to go to get to
    373.
        What does it take to build out this 515 platform Navy in
    terms of spending?
        Admiral Franchetti. So, first of all, on the numbers, it's
    not only about the numbers, Senator Graham, it's also about the
    capabilities----
        Senator Graham. Now wait a minute.
        Admiral Franchetti [continuing]. That we need.
        Senator Graham. No, no, no, no, no. You said numbers. You
    didn't--the report said 515. It said 381 manned ships and a 150
    unmanned. Are those numbers right?
        Admiral Franchetti. Yes, those numbers are correct.
        Senator Graham. Apart from capability? Don't put out a
    report that's false. If these numbers are not accurate cause we
    have capability to do it with half of that, I need to know
    right now.
        Secretary Del Toro. Senator, the ships----
        Senator Graham. I'm not talking to you.
        Admiral Franchetti. Yes, that is our analysis and it was
    done last year. That reported that out in the Battle Force
    Strategy----
        Senator Graham. Okay. So you stick by these numbers, right?
        Admiral Franchetti. We will continue to do that----
        Senator Graham. Okay. All right. You're telling us what you
    think you need.
        Admiral Franchetti. Yes.
        Senator Graham. So we got a budget that gets us to 294 in
    2030.
        Now, Mr. Secretary, you support this budget?
        Secretary Del Toro. I do support this budget and I----
        Senator Graham. Do you support the plan to get to 515
    ships?
        Secretary Del Toro. By 2043, sir.
        Senator Graham. You support that plan?
        Secretary Del Toro. I do support the profile. The Number 1
    profile that we submitted in the shipbuilding plan----
        Senator Graham. Okay. So how in the hell do we get there?
    If----
        Secretary Del Toro. Well,----
        Senator Graham [continuing]. You support----
        Secretary Del Toro. I'll be happy to----
        Senator Graham. I'll get right to you. I'm talking to----
        Secretary Del Toro. Let me explain how we get there, sir.
        Senator Graham. Huh?
        Secretary Del Toro. I'd be happy to explain how we get
    there.
        Senator Graham. Okay. How do we get there real quick?
        Secretary Del Toro. We get there by having continued
    support from the Congress basically without----
        Senator Graham. How much money do you need----
        Secretary Del Toro. The Fiscal Responsibility Act has made
    it difficult this year to be able to invest----
        Senator Graham. Admiral Gidley said----
        Secretary Del Toro. However, but if I can----
        Senator Graham. I am talking.
        Secretary Del Toro. Okay.
        Senator Graham. Admiral Gidley said last year you need 5
    percent above inflation to get there according to this plan.
        Secretary Del Toro. And the Congress passed the Fiscal
    Responsibility Act.
        Senator Graham. Yes. Well, I'm not saying we're not at
    fault.
        Secretary Del Toro. The budget----
        Senator Graham. So we're 1 percent above last year's
    numbers, right?
        Secretary Del Toro. Correct.
        Senator Graham. Okay. Last year's numbers were 1 percent
    above. We're still below inflation.
        Secretary Del Toro. Now last year's numbers actually were
    quite significantly higher than----
        Senator Graham. We're 1 percent over last year's number
    because of the Fiscal Accountability Act. You don't agree with
    that?
        Secretary Del Toro. That's correct.
        Senator Graham. Okay. Well, what's inflation?
        Secretary Del Toro. Inflation runs at about 3.4 percent
    right now.
        Senator Graham. So we're spending below inflation. Can we
    agree on that?
        Secretary Del Toro. That's correct.
        Senator Graham. Okay. So if it takes 5 percent over
    inflation to get to this magic number, this year we're spending
    below inflation and when you project it out, the number shifts
    we'll have an inventory. We're not the enemy here. It goes to
    294.
        Where does China go by 2030, Admiral? How many ships will
    China have?
        Admiral Franchetti. It's projected to have about 430 ships.
        Senator Graham. Yes. How many do they have now? 390 what?
        Admiral Franchetti. 370.
        Senator Graham. Okay. They have 395 now. That's what this
    chart says. Maybe it's 370. Let's say it's 370. They have 435,
    we think, by 2030. We're going up one ship, they're going up
    like a bunch. There is no plan to the public out there. I trust
    you about the 515. I'm not arguing with you.
        I think you know what the hell you're talking about. I'm
    not arguing with you that we should have more money. I'm just
    saying we're saying one thing and doing another. The
    responsibility falls on elected officials, but I would like you
    all to echo what I'm saying. I'd like you all to legitimatize
    that my concerns are real. I'm just not making this shit up,
    that we talk about a Navy to confront threats that are growing
    and our budgets do not meet the needs of this country by a
    factor of a bunch, and it's going to take bipartisan effort to
    get with the program.
        What I want the country to know is that we're on course to
    shrink the Navy as China is increasing the Navy. The budgets we
    have do not get us anywhere near where the experts say we need.
        So what you can do for this country, I think all of you, is
    just tell us the truth that we're on track not to meet our
    goals, is that true, Admiral?
        Admiral Franchetti. Sir, we have about 86 ships on contract
    right now, 55 under construction. There's 57 in this budget.
        One of the things that we need to do as a Nation is invest
    in our shipbuilding----
        Senator Graham. How many are we going to retire?
        Admiral Franchetti. We are retiring 19.
        Senator Graham. Well, so in 2030, if we're at 294 today,
    we're 293, we just gained one ship, is that right?
        Admiral Franchetti. Yes. That is correct.
        Senator Graham. Okay. Well, that's my point. By 2030, we
    have like one more ship than we have today and we need 380
    something of these things and we're going backward, not
    forward.
        So I'm going to--will you work with me, Admiral, Mr.
    Secretary,--haven't talked about the Marines, you got off
    because I didn't even get to you. Will you work with me to come
    up with a realistic plan that would allow us as elected
    officials to get to where we need to go?
        It's up to us to get us there, but I would like a plan if
    you would help me to submit that would get us on track to
    getting to the ships we need unmanned and manned 515 by 2043.
    Will you work with me to do that?
        Admiral Franchetti. We're continuing to work to invest in
    the industrial base and----
        Senator Graham. That's not my question. I meant will you
    work with me.
        Secretary Del Toro. Senator, we will continue----
        Admiral Franchetti. We will continue----
        Senator Graham. The answer is----
        Secretary Del Toro. We will continue to work with you to
    get----
        Senator Graham. Good, good, cause we got a long way to go.
    Thank you.
        Senator Tester. Thank you, Senator. You're exactly right,
    but we got a much bigger problem on this side of the dais than
    we do on the other side truthfully.
        Senator Graham. We've got problems and I want to work with
    you to fix them and I think you want to fix them.
        Senator Tester. I do want to fix them and we need to make
    sure we're increasing the industrial base so that they can meet
    these goals because right now they can't even meet the goals
    that we're funding.
        Senator Graham. That's what they said, too.
        Senator Tester. That's right. And so I don't think there's
    a lot of argument that this is a very dangerous time and you
    know that serving on the Armed Services, but we need to beat
    the hell out of one another first.
        Senator Graham. Fair enough.
        Senator Tester. Senator Murkowski.
        Senator Murkowski. Count me amongst those that are worried
    about our shipbuilding capacity and our infrastructure and it's
    not just how many ships we're funding but we know we've got a
    serious problem when it comes to the workforce that's out there
    and, Admiral, we've had an opportunity to talk about this and I
    don't know if there's a grand plan there to work more on that,
    but I've been focusing on what we're trying to do to build out
    these Polar Security Cutters and help Coast Guard with their
    shipbuilding.
        We're told it all comes down to workforce, comes down to
    workforce, but it also comes to the funding of the vessels
    themselves.
        I want to thank both of you for making the trip to the
    Arctic. Secretary, it was good to travel with you and, Admiral,
    I know you went the week following with Senator Coons.
        I hope that you had an opportunity to meet with the female
    submariner who wanted to talk about integration of women
    submariners into that. I thought she had a very compelling
    message there.
        The point that I would like to reinforce, we have
    challenges again on the submarine side. We've got challenges
    with all of our shipbuilding, but I've been trying to get Coast
    Guard moving with the Polar Security Cutters and have been
    frustrated on many, many turns here.
        We try to underscore how far behind we are and people say
    we get the fact that Russia has 55, we don't even have two. I
    don't even think we have barely one anymore, but the Navy's the
    contract agent for the ongoing effort to build out the
    additional icebreakers. The Coast Guard, of course, owns and
    operates and maintains, but I need to know and I'd like your
    commitment, Admiral, that the Navy as the contract agent for
    this effort is proactively supporting the Coast Guard and their
    acquisition of additional icebreakers.
        Working through this past appropriations process was a huge
    struggle to keep in place any kind of funding going forward for
    the acquisition line. We took a rescission. It didn't kill it,
    but it doesn't help that in the President's budget there's
    nothing for the PCS, Polar Security Cutters for fiscal year
    2025.
        So I'm just nervous on all levels about the commitment that
    we have to ensuring that we have the assets in the Arctic and
    those assets are the things that can break the ice and we can't
    hope that our submarines are going to be able to pop a hole
    through and maybe that allows for ships to move through. That's
    not how it works.
        We've got to do more and I'd like your commitment here as
    we're working with the folks at Coast Guard to ensure that
    Navy's role in all of this as the contract agent is really
    robust and engaged.
        Admiral Franchetti. Thank you, Senator Murkowski, and thank
    you for your time the other day.
        After our meeting, I did go and talk with our folks. I made
    sure that they are fully committed and they are providing that
    robust support that you asked for to support the Coast Guard in
    the design and the procurement of that Polar Security cutter.
        So we are very focused on it and you have my commitment I
    will continue to watch that and, yes, I did meet with the
    submariner when I was onboard the Indiana, as well.
        Senator Murkowski. Good. Thank you for that.
        Secretary Del Toro. Senator, equally so, you have my
    commitment, as well. As we've discussed, I'm one of the few
    Secretaries of the Navy that has actually argued for more Coast
    Guard funding because I think it's important and the
    relationship between the Coast Guard and the Navy just
    continues to get stronger and stronger as evidenced by our
    contracting actions on this program.
        Senator Murkowski. We need to keep leaning in and it's
    going to take all of us.
        Still sticking with the Arctic, as you know, we're moving
    forward with the first deep water Arctic port, the Port of
    Nome. It's going to be incredibly important to our national
    defense interests. We are, as you know, not fully funded with
    that project yet, likely not going to receive MILCON (Military
    Construction) funding despite the clear national security nexus
    here.
        So I would ask, Admiral, that you articulate support for
    this project to the White House, to OMB (Office of Management
    and Budget), as we're moving forward. The Navy will benefit
    greatly. I think you know that. You recognize that. So we just
    need a little bit of support here on the infrastructure
    shoreside, as well. Head nod means yes, correct?
        Secretary Del Toro. Yes, ma'am.
        Admiral Franchetti. Yes, ma'am.
        Senator Murkowski. Thank you.
        General Smith, sticking again with the Arctic because I
    like this theme here this morning, we have not only expanded
    the training opportunities in the Arctic with the Joint JPARK
    Training Facility, got a training center. We got the Northern
    Warfare Training Center. Marines have been participating in
    exercises like Arctic Edge as well as Nordic Response in
    Europe, but I look at the Marines' role in Arctic Ops as
    absolutely necessary.
        There's a great read in the Washington Post from just about
    a week ago about the Navy Seals as well as the Green Berets
    that were training. The Seals were down in Kodiak. The Green
    Berets were up in Fairbanks. It's 40 below, but the commander
    from the Seal Unit said that the Arctic is the most rugged and
    extreme place for any military to operate, even the most
    routine functions can be an existential threat.
        Seems to me that if you're a real Marine, by God that's
    where you want to go train. It's the toughest of the tough and
    the hope is, is that in this kind of extreme environment you
    can get training, if you can live through that, by gosh, you
    can do just about anything else.
        So I'm asking you to speak to whether or not you see an
    increased role for the Marine Corps there in the Arctic in
    terms of training and other exercises.
        General Smith. Well, Senator, thanks for that question, and
    I wholeheartedly agree that the cold makes cowards of us all.
        Senator Murkowski. Well, we're cowardly up there. We
    embraced it.
        General Smith. It is a vital piece of our training as
    Marines who fight in any clime and place and so we are
    committed to training in Alaska. We're committed to Northern
    Edge. We're committed to operating our F-35s from Alaska
    through the Aleutians, and we're committed to our ground forces
    operating in Alaska.
        We also have Bridgeport in California. That's our Northern
    Warfare Training Center, but we are fully committed----
        Senator Murkowski. You realize how odd that sounds that our
    Northern Warfare Training Center is in California?
        General Smith. Yes, ma'am. It's up in the Sierra Nevadas.
        Senator Murkowski. Okay.
        General Smith. It's cold.
        Senator Murkowski. Okay. Good.
        General Smith. It's not as cold as Alaska is, but, yes,
    ma'am, we're fully committed to being able to operate in any
    clime and place and that includes Alaska.
        Senator Murkowski. Thank you, Mr. Chairman.
        Senator Tester. Senator Moran.
        Senator Moran. Chairman, thank you.
        Commandant, let me begin with you. Would you describe for
    me and this subcommittee the importance of the CH-53K and its
    support for mobility for the Marine Corps and how its increased
    capabilities will meet the needs of our national defense?
        General Smith. Senator, I can. Thank you for the question.
        The CH-53K is unique in the DOD inventory in that it can
    lift itself. It can lift 36,000 pounds external, plus its
    internal load. It has in-flight refueling and it can conduct
    operations at great ranges.
        So being able to sling load 36,000 pounds means it
    literally can lift itself and it is vital to our work in the
    Pacific and our inter-island campaign.
        Senator Moran. Admiral, let me ask you a similar question.
    The multi-domain environment in which we now live as the
    National Defense Strategy laid out, the integration of
    platforms to support the warfighter's ability to make rapid and
    informed decisions in fleet architecture, the Navy is enabling
    our autonomous fleet with artificial intelligence from Kansas.
        How does the integration of commercially available
    platforms support ongoing Navy efforts like Project Unicorn to
    deliver multisource intelligence battle space preparedness?
        Admiral Franchetti. Thank you, Senator Moran.
        Senator Moran. Complicated. The way I described it sounded
    pretty complicated but maybe you can highlight for me the
    importance.
        Admiral Franchetti. Certainly. You know, as we look to the
    future and the evolution of both unmanned and autonomous
    platforms, it's really important to have that backbone, the
    architecture through which we can communicate with them.
        So we are continuing to work through our Project Overmatch
    to develop those opportunities as well as with our Disruptive
    Capabilities Office.
        I think if you look to the commercial space and in the
    innovation base, a lot of that technology and the work being
    done is out in the commercial sector in the innovation space.
        So we stood up under the Secretary's leadership a
    Disruptive Capabilities Office which really helps connect us to
    all the people that are developing those technologies in the
    innovation area so we can more rapidly get those into the hands
    of the warfighter.
        So that office's job is essentially to go out and work with
    commercial industry to see what is already out there that can
    solve challenges that we have and again bring those rapidly to
    bear.
        Senator Moran. And is it working?
        Admiral Franchetti. It is working. It's a great pipeline
    and I'm really excited about it.
        Senator Moran. Great. Mr. Secretary, last year I asked you
    about the status of the Navy's efforts in regard to Camp
    Lejeune. Your staff and others have provided us with
    information in preparation for expecting my question today.
        I think they've answered much of what I want to know. I
    would tell you that my staff has been told there's a 190,500
    claims that have been received, 551 have evidence to support a
    settlement. I don't know what about the other.
        Have all 190,000 been evaluated or those are still in the
    works?
        Secretary Del Toro. No, sir. Actually, a 190,500 have
    been----
        Senator Moran. Thank you for saying it correctly.
        Secretary Del Toro [continuing]. Submitted on the online
    portal. Of those 190,500, only 551 claims have actually
    submitted all the information that's necessary to be able to
    determine evaluation on those claims. 63 currently qualify for
    a settlement offer. Of those 63, offers have been made to all
    63 of those claimants. Of those 63 claimants who've completed
    their files, they've been made an offer basically. They qualify
    for an offer. 29 of the 63 were actually accepted, two were
    declined, and the remaining offers still await a decision. The
    total value of the 29 settlement offers that were already made
    is $7,500,000 and we remain deeply committed to working with
    all of these claimants for the expeditious resolution of their
    claims once all the information is submitted on the portal.
        Senator Moran. So, Mr. Secretary, the question I'm looking
    for an answer for is what of the other 190,500--what's happened
    to those other claims, other than the 551?
        Secretary Del Toro. They're essentially gathering their
    paperwork and all the necessary medical evidence that's
    necessary to be able to submit it on to the portal.
        Senator Moran. So a significant number of claims still are
    pending?
        Secretary Del Toro. That's correct, sir.
        Senator Moran. And my final question, Mr. Chairman, is the
    Supplemental that I hope that we receive in the Senate this
    week.
        Can you explain to the committee why this Supplemental
    package is critical to preserving peace and stability in the
    Indo-Pacific and assuring our allies and partners? This is not
    a throw-away question. It seems somewhat self-evident to me,
    but there's been some talk about separating the variety of the
    package into separate segments.
        I think it's a package that's important all together and I
    would love to know from your department if that's true and why.
        Secretary Del Toro. Senator, you couldn't be more accurate
    with your assessment of how important I think it is to keep
    these packages together.
        As we continue to now look at 3 years of warfare on the
    Ukrainian battlefield, we have an obligation to support our
    sisters and brothers in Ukraine who are fighting not just for
    their own democracy but the democracy of all nations an if we
    fail to support them as we have committed to doing so, then
    without question I think that there will be a future where we
    have to make even greater investments into the defense of
    Europe in the future. So that's point Number 1.
        There's no question in my mind that as the situation
    continues to evolve on the battlefield in Ukraine that
    President Xi is also looking intently at our commitment and our
    reactions and if we don't meet our requirements and our
    commitments in Ukraine and Ukraine falls, there's no question
    in my mind that he will be emboldened actually in his intent
    towards Taiwan in the future, as well, too, and equally
    important obviously is the defense of Israel. The defense of
    free trade in the Red Sea and throughout the Middle East is
    incredibly important and so all of the investments that the
    American taxpayers are making and hopefully will be making in
    defense of Israel and defense of our Ukrainian brothers and
    sisters in deterring China are critically important and they're
    all interrelated, as well, and as I said earlier today, many
    roads lead to Iran, as well, too.
        So we need the investments in munitions and operations and
    O&M money to continue to support operations in the Red Sea
    collectively and that's why I think all these packages are
    together, in addition to the other parts of the Supplemental
    that are also being considered.
        Senator Moran. Is it fair to say that failure to invest
    broadly with the challenges we face around the world, invest in
    all of them results in greater challenges to come in each
    component?
        Secretary Del Toro. Without question, Senator.
        Senator Moran. And you cannot single out one without
    causing consequences elsewhere, including the security of the
    United States of America.
        Secretary Del Toro. That is correct, Senator. I agree.
        Senator Moran. Thank you.
        Senator Tester. Thank you for that question, Senator Moran,
    because the truth is, is that those additional investments also
    include people's lives if we don't do what we need to do today.

                         ADDITIONAL COMMITTEE QUESTIONS

        So thank you guys. We appreciate your testimony, all of you
    across the board. We appreciate the people you represent in the
    Navy and the Marine Corps. We appreciate what you do.
        Senators may submit additional written questions. We ask
    that you respond to 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 Hon. Carlos Del Toro
                   Questions Submitted by Senator Jon Tester
        Question. This Subcommittee has been very supportive of the
    submarine industrial base. But despite repeated investments, we don't
    see submarines being delivered on cost and schedule--just the opposite,
    as the 45-day shipbuilding review shows. As a result, this year's
    budget requests only one Virginia Class submarine, and instead proposes
    $3.9 billion in Submarine Industrial Base investments to increase
    shipbuilders' health and supply chains.
        Secretary Del Toro, in addition to $3.9 billion for the submarine
    industrial base in this budget, the National Security Supplemental
    includes $3 billion for the submarine industrial base. How are you
    going to ensure that these funds get to the right parts of the
    industrial base for a meaningful impact, particularly the sub-tier
    suppliers?
        Answer. Removal of the second VIRGINIA class submarine in FY25 was
    a difficult choice, but the Navy is optimistic it provides an
    opportunity to recover the backlog within the production line and for
    the Submarine Industrial Base (SIB) investments to take greater effect.
    The Navy estimates, with SIB investments requested in the PB25 budget,
    that the Navy and industry will get back to a two-per-year VIRGINIA
    production cadence by the end of FY28.
        SIB investments proposed in the PB25 budget submission expand upon
    the foundational investments made in PB23 and PB24. These investments
    were made based on studies done jointly by the Navy and the Office of
    the Secretary of Defense Cost Analysis and Program Evaluation (OSD
    CAPE). Investments across the sub-tier suppliers were assessed as part
    of the study, and the Navy will continuously evaluate the need for
    supplier investment based on gaps in capability and capacity in meeting
    production of one COLUMBIA plus two VIRGINIA Class submarines per year.
    Approximately 85% of the funding provided to date (FY18-24) has been
    for sub-tier suppliers.
        Question. Last year, Congress approved multi-year purchases for
    several missiles that are very important to our ability to fight and
    win a war if we have to. This will provide funding stability and
    predicted quantities for several years to come. In return, reflecting
    that stability, we expect to see cost savings and investments from
    industry. However, according to your request for this year, we will get
    17 fewer Long Range Anti-ship Missiles, and 31 fewer Advanced Medium
    Air to Air Missiles that what you planned last year.
        Secretary Del Toro, are we going to get the savings, stability, and
    industry contributions we expected?
        Answer. I would like to thank the Committees for supporting the
    Department's multi-year munition procurement strategy. FY24
    appropriations provided for Economic Order Quantity, Advanced
    Procurement and Industrial Base Facilitization investments that will
    enable the purchase of long lead time materials and production capacity
    increases required for the successful implementation of the multi-year
    awards planned for FY25 and beyond. Although we continue to be affected
    by the increasing impacts of inflation on our buying power, we expect
    the strategies to yield savings in line with OSD/CAPE projections.
    Further, the duration of these procurements, combined with the
    significant production capacity increases being implemented and growing
    demand from the other Services and partner nations, are expected to
    provide needed stability in this sector. Finally, while we have seen
    some of our prime contractors and sub-vendors contribute to ongoing
    capital expenditures, we will continue to encourage their increased
    investments in these endeavors.
        Question. I want to commend the Navy for establishing Quality of
    Service in response to the very tragic spike of Sailor suicides. We
    included $30 million in last year's bill for suicide prevention efforts
    including training and wellness programs, and high speed connectivity
    for Sailors to stay in touch with their loved ones and not feel
    isolated.
        Secretary Del Toro, what level of funding is included in the
    President's budget request for Quality of Service? How is this funding
    split between prevention and policy reforms, mental health, and
    infrastructure improvements?
        Answer. First, I thank the Congress for your support and
    partnership in taking care of our people and building a culture of
    warfighting excellence. Quality of Service (QoS) remains a high
    priority in the FY 2025 President's Budget with a total Navy QoS
    request of $1.35 billion in FY25. Of this total, $531 million supports
    prevention and policy reforms, including sexual assault and harassment
    prevention and response, and manpower information technology
    transformation. $374 million supports mental health, including embedded
    mental health providers, warrior toughness training, suicide
    prevention, and morale and wellness programs. And $448 million supports
    infrastructure, including unaccompanied and off-base housing, berthing
    barges, galleys, and additional parking.
                                     ______

                  Questions Submitted by Senator Brian Schatz
        Question. Joint Task Force--Red Hill has officially transferred
    closure duties to Navy Closure Task Force. Over $477 million remain
    unspent from the Red Hill Recovery Fund.
        How is the Navy planning to utilize these funds to support
    environmental and health remediation efforts impacted by the Red Hill
    spill?
        Answer. Remaining funds are slated to be applied to specific
    planned future actions necessary to address RH closure tasks. The
    Department of the Navy (DON) and Defense Logistics Agency (DLA) have
    planned for full expenditures of available funding and are engaged in
    award activities to complete the expenditure. The current distribution
    of funds is as follows: Tranche #2 distributes $457.8M from the Red
    Hill Recovery Fund of which Operation & Maintenance, Navy receives
    $168.8M. The Joint Task Force accounts for $14.2M to support the Line
    of Effort (LOE) 2: Defueling Operations. The remaining $154.6M
    allocated to Navy will support LOE 1: Community Response, and LOE 3:
    Tank Closure Requirements, including: Granular Activated Carbon (GAC)
    treatment system operations and maintenance, Site Assessment Field
    Work, and Strategic Engagement and Communications. An additional $41.1M
    fulfills the Fiscal Year (FY) requirements associated with Drinking
    Water Long-Term Monitoring (LTM) Sampling and Administrative Consent
    Order (ACO) Compliance.
        Question. Does the Navy, along with its partners in the Red Hill
    closure effort, believe that the remaining funds are enough to conduct
    the closure mission?
        Answer. The remaining funds are not enough to complete the effort.
    Funding provided to date addresses physical tank closure activities
    including defueling, tank cleaning and pipeline removal, as well as
    community response activities. Several lines of effort are underway to
    investigate and remediate prior fuel releases that will continue beyond
    FY25 that will require the Navy to identify additional resource
    requirements. Final actions to meet remediation and long-term tank
    closure requirements depend on the results of studies that can only be
    completed after defueling and tank cleaning, and will incorporate
    regulatory requirements for remediation and long-term maintenance.
        Question. How does the Navy plan to assess what environmental and
    health damages from Red Hill will require remediation?
        Answer. Remediation requirements are established by the State of
    Hawai`i through the Emergency Order, 2015 AOC and 2023 ACO, along with
    underground storage tank (UST) closure requirements from the Hawai`i
    Administrative Rules (HAR). Efforts to investigate and remediate
    specific known releases from the RHBFSF have been underway since 2015,
    and a Site Assessment to assess the entirety of the RHBFSF facility is
    ongoing. This Assessment will form the basis of further Site
    Investigation (SI) efforts to determine the nature and extent of
    releases at the RHBFSF. Remedial efforts will follow the SI and
    continue until the regulatory criteria for environmental closure of the
    RHBFSF are satisfied. Remediation activities are specific to the site,
    media (soil/groundwater) and quantity and type of released material.
    The Navy continues to work closely with the State of Hawaii Department
    of Health and the U.S. Environmental Protection Agency to identify
    efforts required for the environmental restoration of Red Hill.
        Question. How is the Navy selecting how to fund projects to address
    remediation issues?
        Answer. Projects are being developed and funded according to a
    master schedule to ensure that remedial actions are implemented as
    early as feasible, provided that viable remedial pathways are
    identified. Funding for remediation projects is divided between Defense
    Logistics Agency (DLA) and Navy. DLA is responsible for funding
    environmental remediation requirements that are not associated with the
    water system. The Navy, through CNIC, is responsible for funding
    requirements associated with the water system. The Navy's project
    selection and funding process follows the three steps of future years
    planning, stakeholder meetings, and annual programming for compliance
    and remediation. During future years planning, Navy reviews large scale
    projects including military construction and special projects over a
    multiyear period, and refines during planning and design to ensure
    regulatory requirements are incorporated. For the stakeholder meetings
    step, Navy meets weekly with regulators to identify requirements and
    determine projects to comply. During the annual programming step, Navy
    identifies a detailed allocation of resources to meet requirements.
        Question. Does the Navy suspect it will need additional
    appropriations to support environmental and health remediation
    projects?
        Answer. Navy will need to allocate additional resources to these
    projects. Navy will continue to support environmental remediation
    projects through the Operation and Maintenance, Navy appropriation. At
    this time, the known remediation projects are funded, but as ongoing
    investigations progress and regulatory requirements for compliance and
    remediation increase, the Navy will identify additional resource
    requirements.
        Question. The Department of Defense (DoD) has referred to the U.S.
    Indo-Pacific Command (INDOPACOM) area of responsibility (AOR) as the
    ``priority theatre.'' Regional threats from the People's Republic of
    China (PRC), Russia, and North Korea have exacerbated the need for
    continued investments in maintenance and readiness for our forces.
        How is the Navy prioritizing specific Shipyard Infrastructure
    Optimization Program (SIOP) investments across U.S. public shipyards to
    produce and maintain surface vessels and submarines?
        Answer. Thank you for the question, Senator Schatz. The Navy agrees
    that to ensure deterrence of our near peer adversaries, prioritizing
    specific Shipyard Infrastructure Optimization Program (SIOP)
    investments for our Virginia and Ford Class ships, as well as our
    entire fleet, is paramount in maintaining a ready force. The Navy has
    deliberately prioritized drydocks and back-bone infrastructure
    investments, such as utilities, at our public shipyards to enable the
    Fleet in the fight to be the most ready.
        The Navy continues to prioritize Pearl Harbor Naval Shipyard (PHNS)
    with $3.37B in construction under contract. The program has completed
    $23.8M worth of construction ranging from dry dock repairs to shop
    consolidation and funded $124M of new industrial plant equipment.
    Moving into the future, the PHNS area development plan will guide the
    execution of SIOP priorities of returning ships to the Fleet and
    maximizing shipyard efficiency.
        The Navy remains committed to SIOP by investing in drydocks that
    support current and planned classes of nuclear-powered warships,
    optimizing workflow through significant changes to the public
    shipyards' physical layout, and replacing obsolete capital equipment
    with modern technology that increases productivity and safety.
        Question. The Department of Defense (DoD) has referred to the U.S.
    Indo-Pacific Command (INDOPACOM) area of responsibility (AOR) as the
    ``priority theatre''. Regional threats from the People's Republic of
    China (PRC), Russia, and North Korea have exacerbated the need for
    continued investments in maintenance and readiness for our forces.
        How is Navy incorporating climate risk assessments when assessing
    investments in Navy infrastructure, including in projects the Navy
    approves for support through sustainment, restoration, and maintenance
    funds?
        Answer. The Department of the Navy is currently implementing
    requirements in 10 USC 2864 to address military installation resilience
    by adding climate resilience components to each installation's master
    plan. These climate resilience components assess multiple climate
    hazards, and develop recommended course of action to address validated
    deficiencies. The Navy and Marine Corps uses these recommendations to
    develop both Operations & Maintenance (O&M) and Military Construction
    (MILCON) projects. ICRPs currently underway in INDOPACOM include: Joint
    Base Pearl Harbor-Hickam, Marine Corps Base Camp Blaz, Naval Base Guam,
    and Commander, Fleet Activities Yokosuka.
        More broadly throughout the AOR, the Department is investing in
    both built and natural infrastructure with a resilience focus. At
    Pacific Missile Range Facility, the Department of the Navy, in
    partnership with the local utility, has built the DoD's largest clean
    energy microgrid, ensuring our ability to operate this critical
    facility in the face of extreme weather or other disruptions. In Guam,
    we are partnering with the community to restore native forests,
    protecting Guam's aquifer, and enhancing climate adaptation efforts. We
    are also undertaking major infrastructure projects like the Shipyard
    Infrastructure Optimization Program (SIOP) at Pearl Harbor Naval
    Shipyard and the build-up on Guam as we focus on building in a climate
    informed way. For SIOP, for example, we are integrating climate
    resilience considerations throughout the planning process, and have
    included the requirement that the shipyard be able to operate for 14
    days off the electric grid and independent of local water supplies.
        As the Department's Chief Sustainability Officer, I have issued a
    series of memoranda, directing the Navy and Marine Corps to achieve key
    resilience and sustainability objectives. The very first memoranda I
    issued was on infrastructure, setting a course to ensure that our
    standard facility designs are electrified, sustainable, energy
    efficient, and resilient. My team is also working with the Department
    of Defense and other Services to develop standard thresholds and
    approaches to tracking impacts from extreme weather so we can better
    track infrastructure damage and more effectively target resilience
    investments to guard against future impacts.
        Question. Earlier this month, the DoD Inspector General released
    its report entitled, ``Review of the Navy and Marine Corps Policies
    Covering Sexual Harassment Complaint Process.'' This report points out
    that the Navy and Marine Corps have the highest rates of sexual
    harassment among the Services. The IG found gaps in the Navy and Marine
    Corps' policies relating to the documentation of complaints,
    investigations of severe allegations, training of investigating
    officers, and tracking the status of complaints. The IG indicates that
    while the Navy and Marine Corps are working to resolve some of these
    gaps, more needs to be done.
        What is your response to the IG's report? Will the prevention
    workforce help implement some of the recommended policy changes?
        Answer. The recommendations from the Department of Defense
    Inspector General's (DoDIG) ``Review of the Navy and Marine Corps
    Policies Covering Sexual Harassment Complaint Process'' report align
    with current Department of the Navy (DON) efforts to implement
    significant reforms in the response to sexual assault and sexual
    harassment as required by provisions from Fiscal Years 2022 (FY22) and
    2023 (FY23) National Defense Authorization Act (NDAA) as well as
    recommendations from the 2021 Independent Review Commission on Sexual
    Assault in the Military report. As such, the DON is addressing policy
    and process updates to improve the documentation of sexual harassment
    complaints, investigations of severe allegations, training of
    investigating officers, and collecting data to track the status of
    complaints.
        The DON's progress to date include:
        Issuances of the No Wrong Door Policy to ensure victims of sexual
    assault, sexual harassment, and domestic violence receive needed care
    and quality of service with minimal delays (June 2022).
        Expanding available resources for victims of sexual harassment
    including eligibility to receive the full range of support services
    available to victims of sexual assault (DON Policy Regarding Support
    Services for Victims of Sexual Harassment. June 2023).
        DON has developed a Misconduct Report Incident Trucking (MRIT) case
    management system to centralize data collection for all Navy and Marine
    Corps Military Equal Opportunity (MEO) cases. MRIT is currently in a
    testing phase to ensure accessibility across the force to include cases
    being entered from ships and submarines. Features of this system align
    with DoDIG recommended elements to include when notifications have been
    made to the next highest-level commander and when cases have been
    withdrawn, downgraded, or dismissed.
        Naval Criminal Instigative Services (NCIS) has been designated as
    the DoN's primary investigative body for all formal sexual harassment
    complaints. In accordance with FY23 NDAA Sec. 54 l(b), all formal
    complaints of sexual harassment will be investigated by NCIS and
    reviewed by the Navy or Marine Corps Offices of Special Trial Counsel.
        The DON is establishing the Integrated Primary Prevention Workforce
    (IPPW) that will focus on preventing harmful behaviors, addressing
    systematic issues, and improving climate and culture. The DON, Navy,
    and Marine Corps are actively hiring personnel to combat harmful
    behaviors, including those that fall within the MEO Portfolio.
    Additionally, the IPPW will be taking a holistic approach to prevention
    with a renewed focus on improving climate and culture across the DON.
    As the workforce continues to grow, is trained, and operationalized,
    the DON will be able to better assess the positive impacts the IPPW has
    in preventing harmful behaviors, to include sexual harassment.
                                     ______

                  Questions Submitted by Senator Tammy Baldwin
        Question. Mr. Secretary, I noted with concern that your 45-day
    shipbuilding review assessed the Frigate program to be delayed by 36
    months.
        What is your assessment of whether the Navy carries responsibility
    for any part of the delays to the Frigate program? If you do identify
    responsibility on the part of the Navy, what actions are you taking to
    rectify them?
        Answer. Ongoing Functional and Detailed Design efforts are driven
    in large part by challenges in both the engineering workforce and
    industry-wide blue collar hiring and retention, combined with issues
    the shipbuilder has encountered in adapting the parent design to meet
    the requirements that were reflected in the system specification used
    in the competition.
        There have been limited changes to the contract after award that
    were negotiated and agreed to with the shipbuilder. However, the Navy
    does not consider the negotiated changes to be a primary driver of
    functional or detailed design schedule delays.
        To mitigate ongoing delays in the schedule, the Navy and
    Fincantieri Marinette Marine (FMM) are jointly pursing program-wide
    process improvements and mitigations across multiple program risk
    areas.
        Question. Would additional funding for the Frigate industrial base
    help put this program on a path to success?
        Answer. The Navy is very appreciative of the industrial base
    funding that Congress has given the Frigate program: $50 million in
    FY23 and $50 million in FY24. The Program has identified key risks
    (workforce, first-time Prime Contractor, first of class issues, etc.)
    impacting FFG 62 and follow delivery schedules for which Surface
    Combatant Industrial Base (SCIB) funding is critical to execute
    mitigation efforts. Near-term investments target understanding FMM
    workforce challenges related especially to recruitment, retention, and
    training, with development of corresponding initiatives. FMM plans to
    continue working with regional governments and stakeholders to ensure a
    robust Frigate Industrial Base through mid- and long-term activities
    associated with housing, expansion of talent pipelines, school
    outreach, and other community-based initiatives.
        The Navy fully supports the President's FY25 budget request.
        Question. The Navy took approximately 15 months to obligate the
    FY23 Frigate industrial base funding. What are the Navy's plans for
    improving the effective and timely execution of this funding?
        Answer. The program office received its first funding allocation
    related to the Industrial Base with the FY23 SCIB funding. This became
    available on March 21, 2023, after the conclusion of the FY23
    Continuing Resolution when the remainder of allocated SCN funding was
    received. After Collaboration with the shipbuilder regarding priorities
    and return on investment, the Navy obligated the FY23 SCIB funding on
    August 15, 2023.
        While executing the FY23 SCIB funding, the Navy has engaged the
    industrial base, primarily focused on design maturation acceleration
    and workforce retention, with well-defined and established contract
    vehicles; industrial base funding for these efforts will be executed
    with increased proficiency.
        Question. Mr. Secretary, I am troubled by the selection of an
    untested engine for the T-AGOS program. There already exists a suitable
    diesel engine in production for Navy service that is already undergoing
    the necessary rigorous Navy testing. In fact, the Navy contributed
    millions of dollars of investment in building the test stand for this
    engine. The current plan for the forthcoming T-AGOS program includes
    selection of a locomotive engine that has not proven endurance in Navy
    service and has yet to begin Navy testing.
        Can you explain the anticipated extra costs and time delays to the
    T-AGOS program that will result from selecting a commercial and
    untested engine over a technically compliant lower cost engine
    solution?
        Answer. The prime shipbuilding contractor (Austal) for the T-AGOS
    program conducted internal industry studies and selected an engine that
    they determined best met the requirements of the contract. There is no
    anticipated extra cost or time delays to the T-AGOS program because of
    Austal's selected engine.
                                     ______

                 Questions Submitted by Senator Jeanne Shaheen
        Question. Secretary Del Toro, I'm pleased to report that Granite
    State Manufacturing, a subcontractor in New Hampshire, has been able to
    expand their capacity to support the Virginia and Columbia class
    programs as a direct result of receiving Supplier Development Funding
    (SDF). They added an additional 70,000 square foot manufacturing plant
    and created a partnership with local community colleges to train and
    hire additional skilled workers to support the build effort. Thank you
    to the Navy for heeding Congress's call and ensuring that these funds
    go beyond just the prime contractors.
        Can you please advise on how other small and non-prime businesses
    may be able to take advantage of SDF?
        Answer. Submarine industrial base suppliers at any level of the
    supply chain, as well as companies interested in joining the submarine
    industrial base are invited to submit proposals for Supplier
    Development Funding projects. Proposals can be submitted to both prime
    submarine shipbuilders, General Dynamics Electric Boat (GDEB) or
    Newport News Shipbuilding (NNS), or to the Navy Submarine Industrial
    Base (SIB). Proposals are reviewed by the joint Navy-Shipbuilder team,
    and prioritized based on project Return on Investment (ROI), impact to
    submarine production, supplier and market segment health assessments,
    and risk analyses.
        Supplier Development Funding is specifically allocated to support
    industrial base suppliers, rather than prime shipyards, to add
    capability and capacity to the supply base, improving manufacturing
    quality, and reducing risk posed by single and sole-source suppliers.
    Since FY 2018, the Navy has funded more than $1.7B to execute hundreds
    of supplier projects to support the nuclear shipbuilding enterprise.
        The Navy partners with Granite State Manufacturing in their
    recently launched partnership with Manchester Community College to
    provide a rapid, 12-week welding boot camp training program with
    student costs fully covered. Programs like this are critical to meeting
    the demand for key skilled trades across the submarine industrial base.
        Question. Secretary Del Toro, I'm concerned about the waterborne
    security barriers that the Navy depends on to protect our ports,
    installations, and ships. My understanding is that the existing marine
    barriers have a primary function of performing as marine gates, yet in
    the existing installations, this function has caused delays in ship
    movements, and require a complex arrangement of contractors and service
    boats to operate them. As the Naval Sea Systems Command pursues a full
    and open competition for next generation waterborne security barriers:
      --Will the procurement become an ACAT level Program of Record? What
            level?
      --Will the Navy perform a review by OPTEVFOR for the proposed
            equipment?
      --What improvements will be made to enable better performance of the
            marine gate function?
        Answer. The Navy plans to initiate the procurement process of
    planning and preparing for the replacement of the waterborne security
    barriers after Fiscal Year 2026. The Navy has not requested funding for
    the Next Generation Waterborne Security Barriers and requirements
    remain under development. As a result, the path forward for the program
    including the ACAT level (if any), any OPTEVFOR review requirements,
    and any marine gate improvements have not yet been determined.
                                     ______

               Questions Submitted by Senator Christopher Murphy
        Question. Connecticut is home to Electric Boat and hundreds of
    downstream suppliers who support Electric Boat's operations.
    Collectively, these companies employ thousands of workers who are
    leading the effort to restore our submarine production to full
    operating capacity. The shift to one Virginia Class threatens to set
    back recent rapid advances made in Connecticut that support submarine
    production.
        Secretary Del Toro (or CNO Franchetti), how is the Navy's request
    for one Virginia Class submarine in FY25 anything but a step back for
    our submarine industrial base, which has been making progress that
    needs to continue full speed ahead?
        Answer. Virginia production is currently below the two per year
    rate. Removal of the second ship in FY25 was a difficult choice, but
    the Navy is optimistic it provides an opportunity to recover the
    backlog within the production line and for Submarine Industrial Base
    investments to take greater effect. Procuring one VIRGINIA Class
    submarine in FY2025 enables workforce efforts, manufacturing,
    outfitting, assembly, and delivery efforts to all be synchronized and
    efficiently functioning, thereby ensuring that the ramp to ``1+2'' is
    executable and can be achieved in CY28. The Navy is mindful of the
    criticality of stability within the vendor base and despite removal of
    a ship, retained advance procurement (AP) and economic order quantity
    (EOQ) values in the budget.
        Question. How does the FY25 request keep existing suppliers--and
    not just advanced procurement suppliers--fully funded and active in the
    submarine industrial base?
        Answer. There is significant funding across the submarine
    enterprise associated with material procurements. With retention of
    FY25 AP and EOQ funding in the budget, coupled with VIRGINIA Class
    material funding across the FY24 and all Block VI (FY25-29) ships, as
    well as significant COLUMBIA Class Build II material, the Navy will
    work with the shipbuilders to ensure stability throughout the
    industrial base.
        Question. The FY25 budget does push for significant investment in
    the submarine industrial base--with $4 billion requested for supplier
    and workforce development support. This is of course on top of the key
    $3.3B in the National Security Supplemental. Can you outline in greater
    detail for us the plan for these critical submarine industrial funds?
    How have you seen investments in recent years go to work for our
    suppliers and workers, and how do you plan to invest this funding to
    keep this momentum in the fiscal year ahead?
        Answer. The submarine industrial base (SIB) investments in the FY24
    supplemental and the FY25 budget requests build upon the foundational
    investments made in PB23 and PB24 and continue targeted efforts in the
    next tranche of supplier development, infrastructure, strategic
    sourcing, workforce development, government oversight and technology
    opportunities. Investments in recent years have helped work to address
    the capability and capacity within the industrial base. These
    investments coupled with the previous FY18-22 funding have funded over
    200 supplier development projects across 34 states, invested in almost
    300 sequence critical materials and have provided significant resources
    in single/sole source suppliers. Additionally, training opportunities
    exist at local, regional, state and national levels to attract workers
    into the SIB. Future investments will continue to drive to achieve
    production rate of one COLUMBIA Class and two VIRGINIA Class submarines
    per year in CY28.
        Question. In April 2022, Seaman Recruit Xavier Sandor took his own
    life with his service- issued firearm while standing watch on the USS
    George Washington, due to a combination of stress, lack of sleep, and
    failure to recognize a sailor going through crisis. Seaman Sandor was
    one of three suicides aboard the GW in that single week. Thanks to the
    passage of my bill, the Seaman Xavier Sandor Support for Sailors Act,
    these sailors will now receive basic allowance for housing during
    maintenance.
        With this in mind, Secretary Del Toro (or CNO Franchetti), would
    you provide an update on the extension of basic allowance for housing
    to better support sailors during lengthy maintenance periods, as
    required by the Seaman Xavier Sandor Support for Sailors Act?
        Answer. We are doing all that we can to minimize situations where
    Sailors have to reside onboard ships. Members not already on BAH are
    lodged in government unaccompanied housing or government leased
    housing.
        Unaccompanied and government leased housing are preferred as they
    come furnished and the member does not have to arrange utilities.
        Question. What further authorities or resources does the Navy need
    to better support our sailors and ensure situations like Seaman
    Sandor's never arise again?
        Answer. Culture of Excellence (COE) 2.0 was officially launched
    this year ensuring every member of the Navy Team thrives under a Great
    People, Great Leaders, and Great Teams construct. We have also issued a
    Mental Health Playbook which is designed to assist leaders in
    preventing, mitigating, and addressing mental health issues within the
    commands. Every suicide is a tragedy, and one is too many. Suicide
    prevention is an all-hands effort that requires ongoing efforts to
    create a culture of safety, to take proactive steps toward maintaining
    mental wellness, and to foster connectedness with those around us so we
    are prepared to fight and win in combat. The Navy needs timely and
    sustained funding for Quality of Life improvements across the Fleet and
    funding for wellness programs that build a Sailor's resiliency through
    mind, body, and spirit needs.
        Question. In April 2022, Seaman Recruit Xavier Sandor took his own
    life with his service- issued firearm while standing watch on the USS
    George Washington, due to a combination of stress, lack of sleep, and
    failure to recognize a sailor going through crisis. Seaman Sandor was
    one of three suicides aboard the GW in that single week. Thanks to the
    passage of my bill, the Seaman Xavier Sandor Support for Sailors Act,
    these sailors will now receive basic allowance for housing during
    maintenance.
        Another key finding of last year's investigation was that the USS
    George Washington lacked sufficient mental health resources. What is
    the Navy doing to ensure our sailors have access to mental health
    support they need?
        Answer. The Navy is committed to ensuring access to the full
    continuum of mental health resources for our Sailors and Families,
    while aiming to utilize the right care, at the right level, at the
    right time. Mental health and behavioral health services are available
    worldwide from Navy installation counseling centers, on the waterfront,
    in operational units through embedded mental health (EMH) providers, at
    military medical treatment facilities, and via virtual health
    platforms. Non- medical services are available through Fleet and Family
    Support Centers, Military and Family Life Counseling, Military
    OneSource, and Navy Chaplains.
        In FY23, the Navy published a Mental Health Playbook, implemented
    the Brandon Act, and coordinated with OSD on recommendations from the
    Suicide Prevention and Response Independent Review Committee Report.
    Also in FY23, the Navy Installation Director of Psychological Health
    program was enacted to ensure that all 81 Navy installations world-wide
    have an identified licensed mental health provider to serve as
    consultant to the installation commander regarding psychological health
    for service members and families. Relatedly, EMH remains vital for
    mental wellness by placing Mental Health professionals as far forward
    as possible: 43% of active-duty mental health providers and 38% of
    behavioral health technicians are assigned to EMH billets. Finally, in
    FY24, mental health billets on aircraft carriers were doubled and now
    include a psychologist, a licensed clinical social worker, and two
    behavioral health technicians.
        Question. The Navy's unmanned efforts seem to be primarily focused
    on air and surface assets, but it's worth noting that capable uncrewed
    surface vessels (USV) can host acoustic sensing systems that in many
    cases can provide more persistent, wider-area surveillance in support
    of maritime domain awareness and anti-submarine warfare. The committee
    appropriated $20 million in fiscal year 2022 for the Navy to for work
    on this type of technology, supporting testing and deployment of four
    Outpost persistent, passive acoustic surveillance systems developed by
    Thayer Mahan in Groton, CT. These systems were successfully deployed to
    the Western Pacific where they identified and monitored adversary navy
    operations. Earlier this year, Johns Hopkins University's Applied
    Research Lab, on behalf of the Office of Naval Research, completed a
    study that showed the Outpost system met all Navy requirements for
    subsurface acoustic monitoring in many important maritime areas around
    the world.
        How does the Navy understand the potential for USV-based acoustic
    sensing systems to improve its surveillance abilities and maritime
    domain awareness?
        Answer. ThayerMahan (TM) operational deployment assessment is
    ongoing and has not completed final assessment. The Navy will continue
    to evaluate the S&T and commercial technology base to support the wide
    area surveillance gaps.
        Question. Why did the Navy's not include funding for this type of
    technology in its fiscal year 2025 budget?
        Answer. PB25 supported validated, technically mature, higher
    priority wide-area surveillance program of record (POR) associated with
    Fixed, Mobile, and Deployable Surveillance Systems (FSS, MSS, DSS).
    PB25 did include funding for DSS Deep Water Active as part of the
    transition from DARPA's KRAKEN into the beginning stages of Middle Tier
    Acquisition (MTA) Rapid Prototyping and Fielding phase. However, PB25
    did not include TM Outpost technology because the technology at this
    time is not sufficient to fit DSS gaps.
        Question. What is the Navy's strategy to increase its development
    and use of USVs that employ capable passive acoustic surveillance
    technologies?
        Answer. The Navy's DSS Deep Water Passive (DWP) MTA FY19-FY24 POR
    is finalizing the Quick Reaction Assessment (QRA) which includes the
    unmanned surface communications relay node. These lessons learned,
    along with the Navy's unmanned vehicle history, will be incorporated
    and matured during the Rapid Prototyping phase of the DSS DWA program
    of record.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
        Question. Mr. Secretary, in 1882, the Navy, who at the time had
    been appointed to administer the territory of Alaska, conducted
    military operations against the Alaska Native village of Angoon. The
    result of this operation was significant loss of life during the
    bombardment, followed by the loss of an untold number of lives in the
    subsequent winter. In a September 14,1982 letter to Charlie Jim Sr.,
    Vice Chairman, Kootznoowoo Heritage Foundation, John S. Herrington
    (Assistant Secretary of the Navy, Manpower and Reserve Affairs)
    officially acknowledged the Navy's involvement in the affair saying,
    ``The destruction of Angoon should never have happened, and it was an
    unfortunate event in our history.'' But the U.S. government has never
    formally apologized for the shelling of Angoon. Angoon was not the only
    Alaska Native village in Southeast Alaska shelled by the military. In
    1869, the U.S. military destroyed villages near the present-day cities
    of Wrangell and Kake. I have been asking the Navy to issue a formal
    apology to Angoon and to these other Alaska Native villages for some
    time now. And there have been meetings with the Communities and the
    Navy and with myself and Senator Sullivan since 2020 and we are always
    told: ``It's coming, we are close.''
        What is the status of this apology?
        Answer. The Department of the Navy (DON) is committed to issuing a
    formal apology to the Alaska Native villages of Angoon and Kake, which
    were affected by Navy actions. The Navy has initiated discussions with
    the affected clans in Angoon. We are in contact with the village of
    Kake to discuss with the affected clans there. Our Navy Region
    Northwest Commander has been actively and enthusiastically engaged with
    clan leaders by participating in Tribal events in Alaska, establishing
    stronger relationships and earning the trust of the clan leaders. We
    will continue to work with the clans on a culturally appropriate and
    respectful apology, and our goal is to issue an apology in the Fall of
    2024.
        Question. Mr. Secretary, in its Defense Overview for the FY25
    Budget Request, OSD notes that, and I quote: ``In the Arctic, the
    Department will continue developing a monitor-and-respond approach.''
    In an area that is becoming more and more accessible as temperatures
    increase, with new routes becoming available each year that we have
    never seen before, new routes that can be exploited by our adversaries
    with bad intentions, this sounds like an unacceptably passive strategy
    to me.
        Mr. Secretary, could you please expand on the Navy's strategy in
    the Arctic?
        Answer. The National Defense Strategy's monitor-and-respond
    approach to the Arctic--with which the Department of the Navy is fully
    aligned and integrated--is not a strategy of passivity. The Department
    of the Navy, in particular, maintains an active and important role in
    the security of the Arctic region, by regularly exercising and
    operating in and around the Arctic region both Jointly and with our
    Allies and partners. Navy ships and aircraft, along with Marine
    aircraft, vehicles and personnel in the region are pre-positioned or
    operate forward to strengthen homeland defense, safeguard U.S.
    interests, and improve interoperability with Allies and partners while
    preserving the Department's focus on the pacing threat.
        The DON continues to pursue capabilities that increase our ability
    to monitor and respond in the high north consistent with the National
    Security Strategy and the National Defense Strategy, including the
    Persistent Arctic Surveillance System, Polar Over the Horizon Radar,
    new environmental prediction capabilities, and sea ice analysis and
    forecasting capabilities. We also have an active role in the
    International Cooperative Engagement Program for Polar Research, an
    international agreement to help advance polar science and technology,
    where current working groups are focused on the environment, human
    performance factors, platforms, and situational awareness. Our regular
    exercises in the region, including ICE CAMP this year, allow us to test
    and hone our abilities, tactics, and equipment while operating with
    Allies and Partners.
        The Secretary of the Navy directed an update to the Arctic
    Blueprint, which will soon be released. The updated strategic guidance
    will reinforce the Navy and Marine Corps roles in defending the
    homeland and protecting American and Allied interests to ensure a
    stable Artic region with internationally recognized norms and rules.
                                     ______

                   Questions Submitted by Senator Jerry Moran
        Question. Did the Department of Justice consult with the Navy
    before finalizing the elective option?
        I have heard from constituents who are only able to receive a
    settlement for one claim via the elective option process.
        Answer. Yes, the Department of Justice consulted with the
    Department of the Navy before finalizing the elective option.
        Question. How does this process impact claimants which submit
    multiple claims?
        Answer. A claimant may only submit one claim under the Camp Lejeune
    Justice Act, though they may allege multiple injuries under that one
    claim. The elective option provides an expedited pathway to a
    settlement offer for a Camp Lejune Justice Act claim. Every Camp Lejune
    Justice Act claim filed with the Department of the Navy will be
    evaluated to determine whether the claim is eligible for a settlement
    offer under the Elective Option. No additional action by claimants is
    necessary.
        Question. Are they able to receive a settlement for both claims?
        Answer. Claimants are able to receive a settlement for multiple
    injuries under one claim.
        Question. Based on your testimony, I understand that of 190,561
    claims received by the Navy only 551 (0.29%) contain all the evidence
    needed to support a settlement determination.
        Please outline all required documentation needed to support a
    claim.
        Answer. Before the Camp Lejeune Claims Unit can adjudicate a claim,
    the filer must submit sufficient evidence to enable the Department of
    the Navy to investigate the factual basis for the claim. For any claim
    submission to be considered properly presented, the file must initially
    include, at a minimum, the following information in writing:
        (a) Name of the injured person/claimant;
        (b) The basis of the claim (basic description of harm/injury as a
    result of presence at Camp Lejeune);
        (c) The demand of the claim stated as a ``sum certain'';
        (d) If an agent/representative files on behalf of the injured
    person, the basis of the filer's authority to act on behalf of the
    injured person; and
        (e) Signature of the individual filing the claim.
        Once properly presented, the claimant bears the burden of proof to
    substantiate the claim (provide the required documentation to prove the
    allegations set forth in the claim). The Camp Lejeune Justice Act sets
    forth the eligibility requirements for an individual to recover damages
    as a result of exposure to contaminated water at Camp Lejeune during a
    specified timeframe. In order to adjudicate a claim, the Department of
    the Navy must first determine if a claimant meets those eligibility
    requirements. This includes, but is not limited to, documentation
    showing when and for how long a claimant was exposed to water at Camp
    Lejeune and what harm or injury, if any, the claimant sustained as a
    result. The Camp Lejeune Clams Unit may request documentation from
    claimants to substantiate a Camp Lejeune Justice Act claim, but such
    documentation is not required to file a claim.
        Question. Which documentation is most commonly missing from a
    claim?
        Answer. The Camp Lejeune Justice Act claims currently pending
    review most frequently lack documentation showing when the claimant was
    present on Camp Lejeune and/or medical documentation containing a
    diagnosed injury.
        Question. What is the Navy's process for providing feedback to
    claimants which did not submit all required documentation?
        Answer. The Camp Lejeune Claims Unit provides detailed instructions
    to claimants filing claims using the online claims portal. These
    instructions provide examples of documentation that may support a Camp
    Lejeune Justice Act claim. The Department of the Navy and the
    Department of Justice also published public guidance that details the
    evidentiary requirements for claimants to support their Camp Lejeune
    Justice Act claim. Additionally, the Camp Lejeune Claims Unit is
    committed to notify every filer to identify any additional information
    required to support their Camp Lejeune Justice Act claim. Filers will
    be able to securely upload all necessary documentation to support their
    claim directly through the Claims Management Portal. Alternatively,
    claimants may mail their supporting documentation to the Camp Lejeune
    Claims Unit at the address listed on the Camp Lejeune Claims Unit
    website--https://www.navy.mil/clja/.
        Question. Are all 190,010 claimants with incomplete submissions
    aware of exactly what their pending claim is missing?
        Answer. The Camp Lejeune Claims Unit is currently working through
    every Camp Lejeune Justice Act claim pending review to inform each
    claimant of additional documentation necessary to process their claim.
    While the Camp Lejeune Claims Unit continues that effort, filers are
    encouraged to review the Required Documentation section of Individual
    Claim filing instructions published on the Navy JAG Corps Claims
    Management Portal. The Claims Management Portal is accessible at
    https://clclaims.jag.navy.mil/CLJAC/CLIC/#Required%20Documentation.
        Question.Last year the Navy estimated $31 million is needed to
    support the establishment of a Camp Lejeune Claims Task Force.
        Do you have all of the resources needed to stand up this task
    force?
        Answer. Yes, the Camp Lejeune Claims Unit is approaching its full
    staffing level of approximately 140 personnel. The Camp Lejeune Claims
    Unit is also nearing full implementation of its purpose-built Claims
    Management System which is expected to facilitate and expedite review
    and processing of the unprecedented volume of Camp Lejeune Justice Act
    claims.
        Question. What percentage of the manning requirement is met within
    the task force?
        Answer. The Camp Lejeune Claims Unit is currently 62% staffed with
    Federal civilian employees. The remaining 38% is currently staffed with
    contracted support personnel. All contracted support personnel will be
    backfilled with Federal civilian employees who are onboarding over the
    next several months.
                                     ______

                  Questions Submitted by Senator John Boozman
        Question. I understand that the Navy has expressed their interest
    in funding multiple solid rocket motor producers and plans to leverage
    budget resources to fund these new companies. I expect this effort to
    provide a fair and open competitive developmental and procurement
    process that does not result in an unfair advantage to those who have
    invested their own resources improving existing production capacity for
    solid rocket motors (SRMs).
        Specifically, the FY24 Consolidated Appropriations Act included
    $50M in funding to establish a second source SRM for the Standard
    Missile 6 (SM6) program. The report accompanying the Act included
    language requiring additional funding increases to be competitively
    awarded, I request additional details on how you will ensure a
    competitive environment for this funding.
        When will the Navy announce its plans for a competition for a
    second source SRM for its SM6 program?
        Answer. The Navy solicited competitive proposals through a
    prototype project Other Transaction Authority (OTA) for four solid
    rocket motor (SRM) efforts using a targeted FY23 Office of the
    Secretary of Defense (OSD) budget increase, including the redesign of
    the Mk 72 Booster and redesign of the Mk 104 Dual Thrust Rocket Motor
    (DTRM). Six companies provided submissions and two companies were
    selected for each effort. FY24 funds will be used to further mature the
    second source designs. Continued design maturity and prototyping OTAs
    will be competitively awarded through the Naval Energetic Systems and
    Technologies Consortium.
        Question. Will this competition use existing qualifications for the
    SRM's or will changes be made?
        Answer. All SRM development efforts leverage new designs for motors
    that meet the same specifications as the current motors manufactured by
    Aerojet Rocketdyne. Therefore, the new motors will require
    qualification prior to use.
        Question. Has an analysis been done on supply chain impact that
    could result from a different SRM provider?
        Answer. Demand for rocket motors exceeds the current capacity with
    Aerojet Rocketdyne. Additional suppliers provide significant increases
    in overall capacity for both production stability and increased future
    needs. Aerojet Rocketdyne will remain a supplier for Mk 72 and Mk 104
    rocket motors.
        Question. By what date does the Navy expect a second source SRM to
    be qualified?
        Answer. The Navy expects second source SRMs to be qualified by
    FY27.
        Question. What is the estimated cost of qualifying this second SRM
    supplier?
        Answer. The expected qualification cost per SRM is $40M-$75M. The
    cost of qualification is highly dependent on design changes from the
    currently qualified motors.
                                     ______

              Questions Submitted by Senator Shelley Moore Capito
        Question. Naval Sea Systems Command has included a Next Generation
    Waterborne Barrier Procurement in its long-range procurement planning.
    Please provide an update on the Navy's timeline for initiating this
    procurement process.
        Does the Department of the Navy plan to initiate procurement for
    this new barrier in or after Fiscal Year 2026?
        Answer. Yes, the Navy plans to initiate the procurement process of
    planning and preparing for the replacement of the waterborne security
    barriers after Fiscal Year 2026.
        Question. Given increasing threats to U.S. Navy ships, if
    additional funding was provided, could procurement planning or
    preparation work for the eventual procurement of replacement systems be
    accelerated?
        Answer. The Department of the Navy supports the President's Budget
    submission for fiscal year 2025 (PB25) as the best balance of resources
    needed to strengthen maritime dominance, build a culture of warfighter
    excellence, enhance strategic partnerships, and maritime state craft
    vision. The Navy's Unfunded Priority List (UPL), submitted in March of
    this year, serves as a complement to the critical investments requested
    in the PB25 and primarily focuses on ways to accelerate capabilities to
    the Fleet. Should Congress make the decision to appropriate funds to
    the Navy above the PB25 level, the UPL represents the requirements the
    service needs the most.
                                     ______

                 Questions Submitted to Admiral Lisa Franchetti
                   Questions Submitted by Senator Jon Tester
        Question. This Subcommittee has been very supportive of the
    submarine industrial base. But despite repeated investments, we don't
    see submarines being delivered on cost and schedule--just the opposite,
    as the 45-day shipbuilding review shows. As a result, this year's
    budget requests only one Virginia Class submarine, and instead proposes
    $3.9 billion in Submarine Industrial Base investments to increase
    shipbuilders' health and supply chains.
        Admiral Franchetti, the Navy has fewer submarines than it tells us
    it needs, yet you're proposing to reduce procurement. What is the
    operational risk associated with that decision, and How do we explain
    that to the warfighter?
        Answer. Given the current backlog, and delivery rate that has
    consistently lagged the procurement rate, removal of the second FY25
    SSN does not result in an immediate impact to operations as we have 15
    SSNs on contract and 13 in construction. It also does not result in an
    immediate impact to force structure as the SSN procured in FY26 will
    start in its place.
        Attempting to procure another submarine this year would take longer
    to build, cost the Navy more, and risk further complications in the
    Submarine Industrial Base (SIB), as compared to allowing our PB-25
    investments to yield the efficiencies we need. The Navy's decision to
    remove the second Virginia Class SSN (VCS) in FY25 provides an
    opportunity for the shipbuilders to balance production for VCS Block VI
    construction starting in FY25 and serial Columbia production starting
    in FY26 and allows for maturation of improvements in manufacturing,
    outfitting and assembly as well as industrial base investments.
        The Navy's ability to reach and maintain a production cadence of 1
    Columbia Class Submarine and 2 VCS per year (``1+2''), sustain the
    existing submarine fleet, and ramp up to meet the AUKUS trilateral
    agreement is dependent upon SIB capacity. The PB-25 budget reflects a
    prioritization in undersea warfare capabilities, with increased
    investment in SIB. The removal of the second FY25 SSN was a hard but
    necessary decision to not add to the current backlog and give industry
    time to be able to produce the ships and submarines we need on a pace
    at which we need them.
        Question. According to the Navy budget documents, the Fiscal Year
    2025 enlisted Sailor end strength is ``substantial below requirement.''
    In addition, there are currently over 18,000 gaps in operational sea
    billets, a number that has grown steadily. I have concerns about the
    workload strain this is putting on Navy leaders and Sailors at sea. The
    last thing anyone wants is to have more deadly accidents like the USS
    Fitzgerald and USS McCain.
        Admiral Franchetti, What do these gaps at sea mean operationally
    for the Navy? How do you plan to address this problem?
        Answer. As of 25 April 2024, the Fleet has experienced 18,524
    enlisted gaps in operational sea duty. These gaps are most apparent at
    the Apprentice level, with 18,304, or 98% of the total gaps at sea. The
    Journeyman level has 380 operational sea duty gaps, while the
    Supervisor level is above target by 160. Balancing operational demands
    with limited Sailor inventory is not a new problem. While continued
    inventory shortfalls occur, we routinely take actions to ensure safe
    and effective operations. Collaboration between the Fleet, Type
    Commanders (TYCOM), and distribution is essential to minimizing
    operational impact.
        The MyNavy HR Force Management enterprise, specifically enlisted
    distribution, continues to work closely with U.S. Fleet Forces (USFF)
    and the Pacific Fleet (PACFLT) at the start of each detailing cycle to
    offer the highest priority jobs to Sailors for application within the
    MyNavy Assignments (MNA) cycle. Additionally, Navy Personnel Command is
    supporting TYCOM secondary manning actions that move Sailors between
    units to fill operational billets that could not be filled through the
    normal MNA cycle, and so far, we are successfully mitigating gaps at
    sea.
        From an accessions standpoint, we took what we missed in FY23 and
    added it to what we needed to do this year for a mission of 40,600. We
    recognize it is not just about end strength, it is about work
    requirements in the Fleet that we need to maintain so we can build out
    of that trough. We are doing everything we can to increase our
    recruiting and achieve the FY24 mission, while we continue to maintain
    historically high retention of our Sailors. First, we are improving the
    efficiency of our recruiting enterprise by appointing a two-star
    admiral as Navy Recruiting Command, standing up a Recruiting Operations
    Center, and increasing manning of our recruiting stations and centers
    with the help of Selected Reserve Sailors. Second, we are expanding the
    pool of applicants who can join our team through various programs and
    policies such as:
      --Increasing the age for applicants to be able to join up until their
            42nd birthday.
      --Implementing the Future Sailor Prep Course (FSPC), modeled after
            the Army's Future Soldier Prep Course, to improve academics and
            physical fitness and provide more opportunities to future
            Sailors.
      --Accepting applicants that do not have education credentials, if
            they have an Armed Forces Qualification Test (AFQT) score of 50
            or higher.
      --Allowing recruits to participate in alternate cardio options on the
            Physical Fitness Assessment, to align with Fleet standards.
      --Establishing Every Sailor a Recruiter, a program for currently
            serving Sailors to share their experience and provide leads of
            interested applicants.
      --Utilizing a category IV pilot, which allows for up to 20% of total
            accessions who attain an AFQT score of 10-30 to join, as long
            as they meet line score requirements for their rating. We have
            vacancies in less complex ratings that these future Sailors can
            fill, allowing those more qualified to earn ratings that more
            closely match their skillset.
      --Leveraging the additional enlistment bonus authorities from
            Congress to attract high-quality recruits to fill high demand
            rates. Future Sailors can earn up to $140k in bonuses (up to
            $75k in enlistment bonus + up to $65k in loan repayment).
        With these and other initiatives, the Navy constantly explores and
    evaluates new methods for bringing in qualified, motivated and capable
    applicants from every zip code. We continue to build pathways of
    opportunities for all qualified individuals who want to serve.
        Question. I want to commend the Navy for establishing Quality of
    Service in response to the very tragic spike of Sailor suicides. We
    included $30 million in last year's bill for suicide prevention efforts
    including training and wellness programs, and high speed connectivity
    for Sailors to stay in touch with their loved ones and not feel
    isolated.
        Admiral Franchetti, How have Sailors responded to Quality of
    Service and in particular, those in leadership?
        Answer. The Navy is committed to improving Quality of Service
    (QoS), and even though the feedback from Sailors to Navy leadership on
    the QoS initiatives and improvements to date has been positive, we
    recognize we have much more work to do. The Navy continues to take our
    Sailors' concerns very seriously and we are making concerted efforts to
    address issues to support a better quality of life (QoL) and quality of
    work for them and their families. There is ongoing dialogue between our
    Sailors and leadership at every level to ensure we are actively
    addressing these concerns and improving conditions for our members.
        In December 2023, we conducted a survey at Newport News
    Shipbuilding (NNS) by polling Sailors and measuring the impacts and
    improvements across all ranks of the Navy. Of the 522 Sailors who
    completed the survey, about a quarter of respondents reported QoL at
    Newport News to be significantly or somewhat better. Additionally,
    survey results showed 71% believe leadership is providing adequate
    information on QoS updates in Newport News (i.e., food options, fitness
    facilities, medical care, and recreation opportunities). The main
    stressors continue to be parking/transportation, quality of food
    options and access to fitness centers which leadership is working to
    address. At NNS, we continue to make improvements through recent
    contracts and programs that specifically address QoS issues, to include
    expanded access to food with the opening of an additional micromart,
    increased access to medical care, upgrades to exercise equipment and
    the opening of the Armed Forces Wellness Center, and in the
    modernization of Huntington Hall. We are committed to improving QoS for
    our Sailors and intend to revisit our Newport News Sailor population
    with a survey in June 2024 to continue measuring Sailor satisfaction.
    Finally, the Navy continues to work with the city of Newport News to
    review PPV housing and create an option for expansion as part of our
    effort to improve QoL for our Sailors and their families.
                                     ______

                  Questions Submitted by Senator Brian Schatz
        Question. The Department of Defense (DoD) has referred to the U.S.
    Indo-Pacific Command (INDOPACOM) area of responsibility (AOR) as the
    ``priority theatre''. Regional threats from the People's Republic of
    China (PRC), Russia, and North Korea have exacerbated the need for
    continued investments in maintenance and readiness for our forces.
        What is the current backlog for maintaining and repairing
    submarines?
        Answer. When it comes to the number of operational SSNs, the Navy
    is not where it needs to be. Sustainment challenges have resulted in a
    total of 17 SSNs in depot availabilities or idle versus a public/
    private shipyard repair capacity of 13.
        Due to this imbalance between shipyard repair capacity and demand,
    the Navy expects operational availability to remain at 62-66% through
    FY 2026 and then ramp to approximately 80% in FY 2028 based on
    improvement efforts. This length of time is required because many of
    the improvement efforts (material, workforce, etc.) take time for their
    benefits to be realized.
        Our submarines are our true asymmetric advantage, and we need to
    improve on our overall submarine maintenance. We appreciate
    congressional investments in our shipyards because they are critical to
    that effort and recapitalization of the dry docks. Those investments
    will help ensure the flow of work across the shipyards will be
    effective and more efficient. We have made progress toward putting in
    place processes that help us look at the data analytics so we can
    better understand the choke points and barriers are to getting our
    submarines out of maintenance on time.
        Question. The U.S. military is moving to incorporate artificial
    intelligence (AI) in more aspects of its platforms and operations.
    While AI can help improve military efficiency and effectiveness,
    significant concerns exist over its uses, including through lethal
    autonomous weapons systems (LAWS).
        Given the global rules on military AI are yet to be written, does
    the Navy believe AI guardrails are necessary?
        Answer. The Navy is committed to developing and using AI in a
    manner consistent with our national values, shared democratic ideals
    and moral stance, which means setting guardrails and implementing AI
    responsibly. If developed without appropriate safeguards, even
    seemingly benign Al capabilities can introduce vulnerabilities that can
    lead to adverse outcomes and put lives of American people in danger.
        We believe that putting guardrails in the AI development process
    will serve as an enabler for AI adoption, rather than a set of
    barriers, by earning trust of Service members, civilian personnel, and
    citizens in thoroughly built, tested, and justified systems. Trust in
    Navy-developed AI systems will promote rapid adoption of AI and enable
    department to modernize its warfighting capabilities across a range of
    combat applications and to strengthen the Department's competitive
    edge.
        The Navy supports international norms for AI usage that respect
    democratic values, while defending against aggression. Ensuring AI is
    bounded by core ethical principles of being responsible, equitable,
    traceable, reliable, and governable will make certain the United States
    continues to represent a path to peace, security, and societal progress
    and will allow us to maintain the trust of our allies and coalition
    partners.
        Question. What capabilities does the Navy need to further invest in
    to keep pace with the growing threats of AI and what supports does each
    service need to enable these skillsets?
        Answer. The Navy needs a robust training and education pipeline to
    build a workforce that is able to develop, build, deploy and utilize AI
    tools across the range of naval missions to include warfighting areas,
    as well as readiness and corporate functions. A well-educated and
    technically competent workforce ensures we maintain an advantage over
    adversaries, while also ensuring our AI use is in accordance with our
    values and ethics. Responsible AI (RAI) will be an integral part of our
    AI education and training so that those that use or make decisions
    regarding the use of AI will be fluent in policy, doctrine, and ethical
    use.
        Concurrent with our investment in people, we need to continue to
    make investments in the hardware and software infrastructure that will
    allow us to deploy AI across all Navy missions and do so in all manner
    of environments, from the seabed to space. The Navy operates far from
    home and must be ready to do so in an environment where an enemy is
    actively trying to prevent us from accomplishing our mission. This will
    require an AI infrastructure that is more robust than those fielded by
    the private sector--it must work in a communications degraded
    environment and away from normal sources of computer and software
    development. Additionally, it will require significant investment in
    edge computing and a robust communications architecture able to support
    modern AI Operations (AIOps) across a range of scenarios from CONUS to
    a Weapons Engagement Zone. This infrastructure must include both
    hardware and a growing suite of software tools that enable modern
    AIOps.
        Due to the rapid advances in AI tools and hardware we need to use
    the acquisition authorities we have, such as Other Transaction
    Authorities, to keep pace with this growing technology area. For
    example, we need to consider leasing of models and tools, the sharing
    and pooling of data, and a better ability to work with industry to find
    mutually beneficial rights to data ownership.
        Similarly, we also need to grow our long-standing investment in the
    science and engineering of AI to better understand how AI works and--
    critically--how it might fail and keep pace with growing complexity of
    the use cases AI can solve. This involves both fundamental research
    into the technology as well as investments in the Test & Evaluation of
    AI tools. The power of AI comes from its ability to be useful in
    situations it wasn't specifically trained to handle, but this brings
    with it an inability to test it in every scenario it might possibly
    encounter. Further research into this area is critical if we are to be
    able to trust the AI we deploy, while the growing usefulness of it will
    almost certainly lead to calls to deploy it in cases even if not fully
    understood. Likewise, our adversaries may be tempted to deploy AI tools
    that are not fully understood if it gives them a material advantage,
    and failing to keep pace could increase strategic and operational
    risks.
                                     ______

                Questions Submitted by Senator Susan M. Collins
        Question. Admiral, the Supplemental passed by the Senate included
    $2.4 billion for operations in Central Command. For example, in light
    of concerns that some of us have regarding munitions, how important is
    the funding in that bill to recertify 354 Navy interceptor missiles?
        Answer. Supplemental war funding provided by the National Security
    Supplemental (H.R. 815) is vitally important for Navy to sustain its
    current stockpiles, and I thank Congress for enacting these
    appropriations. The most immediate support we can give the Fleet for
    self-defense and defense of the free flow of maritime commerce, is to
    get unusable missiles out of storage, off the maintenance floor, and to
    the ships that need them as quickly as possible. The Supplemental
    funding enables us to maximize recertification in FY2024 and puts us on
    a path to meeting our goal of 720 recertifications per year.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
        Question. Admiral Franchetti, in the hearing on April 16th, you
    testified that the Navy has 293 ships today, and by 2030 will have 294
    ships.
        Could you please detail the number and types of ships that are
    planned to enter service between now and 2030?
        Could you please detail the number and types of ships that are
    planned to be decommissioned between now and 2030?
        Note: when comparing answers to 1a and 1b, the result should be a
    net growth of 1.
        Answer. Eighty-four ships will enter service in FY24-30 while
    eighty ships will decommission during same time period. See table for
    amplifying information. As of April 16th, the ship count is actually
    294, with four FY24 deliveries having already occurred. This leaves a
    projection of 80 deliveries by 2030 and 80 ships to be decommissioned
    in that time.

        Question. Admiral Franchetti, in the hearing on April 16th, you
    testified that the Navy currently has 86 ships on contract, 55 under
    construction, and 57 in the FY25 PB request.
        Could you please detail the anticipated completion years for the 55
    ships currently under construction?
        Over the course of time that it takes to complete construction on
    the 55 ships currently under construction, how many ships does the Navy
    anticipate decommissioning?
        Answer. The 55 ships under construction have planned future
    delivery dates from FY24-FY32. Data as of April 16, 2024:

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

    --------------------------------------------------------------------------------------------------------------------------------------------------------
    Fiscal Year........................        24           25           26           27           28           29           30           31           32
    Under Construction Planned Delivery         7           10           13            7            7            6            2            2            1
    --------------------------------------------------------------------------------------------------------------------------------------------------------

        A total of 98 ships are planned to be retired* from FY24-FY32.
        *Note. By definition in General Policy for the Inactivation,
    Retirement, and Disposition of U.S. Naval Vessels (OPNAVINST 4770.5J),
    retirement is transitioning a naval ship or craft from active to
    inactive status by decommissioning or placing out of service.
                                     ______

                  Questions Submitted to General Eric M. Smith
                   Questions Submitted by Senator Jon Tester
        Question. General Smith, this Subcommittee has been very supportive
    of the Marine Corps' Force Design 2030. A key linchpin of this strategy
    is the procurement of Medium Landing Ships. Fiscal Year 2025 is your
    first year of requested procurement, and I have two questions for you:
        General Smith, as much as you can in this setting, can you explain
    to the Subcommittee how these ships fit into your broader amphibious
    strategy? And second, the Congressional Budget Office just released a
    report stating that these ships will likely cost between $340 million
    to $430 million per ship--more than double your initial estimate of
    $200 million. In light of the shipyard challenges across the country
    right now, how will you manage cost and schedule?
        Answer. The Medium Landing Ship (LSM) is planned to fill the
    capability gap that exists in the littoral environment between the
    Navy's large, globally deployable, high endurance, multipurpose
    Amphibious Warfare Ships (AWS) and smaller amphibious warfare type
    craft that enable ship to shore employment.
        The larger AWS are warships designed to project combat power
    globally with multi-domain capabilities contained within Marine
    Expeditionary Units (MEUs). The Marine Corps currently has seven MEU
    Command Elements--three on the East Coast, three on the West Coast, and
    one MEU in Okinawa, Japan with the Forward Deployed Naval Force (FDNF).
    Each MEU is paired with an Amphibious Ready Group (ARG) that is
    comprised of three AWS--one LHD/LHA, and two LPDs. The Navy and Marine
    Corps' amphibious strategy is grounded in forward presence of the ARG/
    MEU team to campaign, rapidly respond to crisis, and if necessary,
    project combat power ashore during conflict in support of Fleet
    objectives.
        The LSM is not a warship, its role is to provide the primary means
    of theater mobility--littoral maneuver and sustainment for Marine
    elements of the Stand-in Force (SIF). Marine SIF are task- organized,
    mobile and low-signature formations designed to maneuver across all
    domains. They provide the Joint Force the ability to sense and
    understand the battlefield, enable combined kill webs, and apply all-
    domain combined arms. They persist forward in contested areas, operate
    alongside allies and partners, contribute to deterrence, and, if
    deterrence fails, enable the Joint Force to project power during
    conflict. Adversaries will attempt to deny and degrade the Joint
    Force's ability to see and sense. The SIF will be the eyes and ears for
    the Joint Force, ideally positioned within the weapons engagement zone.
    Marine SIF formations primarily operate in the littoral environment
    that currently has a critical gap in which the Navy and Marine Corps do
    not maintain a platform that is suitable to maneuver and sustain forces
    operating ashore. The LSM will fill this void and be a vital platform
    for the SIF to deploy personnel and equipment to maintain forward
    presence by campaigning, responding to crisis, and enabling Joint Force
    power projection during conflict.
        In February 2023, Naval Sea Systems Command (NAVSEA) estimated the
    cost of the first LSM to be $268M. This was informed by industry
    feedback from multiple partners, gained during industry studies,
    concept studies, and preliminary design. In April 2024, CBO released a
    report on the LSM that estimated the cost between $460-$560M. NAVSEA's
    estimate assumed a high degree of commercial ship attributes with
    minimal military unique requirements and used an applicable mix of
    analogous ships--commercial/military--for costing estimates. CBO
    assumed a higher level of military vice commercial content in
    constructing their cost estimate. CBO used LPD-17 and T-AO as analogous
    ship classes to estimate the LSM cost. Both ships are larger, more
    complex, and built in shipyards with higher cost structures than what
    is envisioned for LSM.
        Moving forward, the Navy expects to receive full and open
    competitive Detailed Design and Construction proposals from industry
    later this spring. A formal cost estimate will be conducted this summer
    by NAVSEA in support of milestone B/C (Nov 2024). OSD CAPE will also
    conduct an independent cost estimate to support the milestone. The Navy
    and the Marine Corps are committed to the procurement of the LSM as a
    DoN requirement to fill a much-needed capability gap and will continue
    to manage cost estimates and scheduled deliveries.
        Question. Earlier this month, the DoD Inspector General released
    its report entitled, ``Review of the Navy and Marine Corps Policies
    Covering Sexual Harassment Complaint Process.'' This report points out
    that the Navy and Marine Corps have the highest rates of sexual
    harassment among the Services. The IG found gaps in the Navy and Marine
    Corps' policies relating to the documentation of complaints,
    investigations of severe allegations, training of investigating
    officers, and tracking the status of complaints. The IG indicates that
    while the Navy and Marine Corps are working to resolve some of these
    gaps, more needs to be done.
        What is your response to the IG's report? Will the prevention
    workforce help implement some of the recommended policy changes?
        Answer. At the time of the DoD IG Report, the Marine Corps had
    already identified gaps and was updating procedures for handling sexual
    harassment complaints, as well as the policies enforcing them. Many of
    the report's recommendations had been incorporated in the service's
    Prohibited Activities and Conduct order ahead of the report being
    published, to include: the option for complainants to select either
    formal or informal reporting processes, except in quid pro quo cases
    where formal processing is mandatory; requiring a third-party
    investigative officer from outside the complainants and subject's chain
    of command; and mandatory processing for administrative separation in
    cases of substantiated complaints of sexual harassment. Marine Corps
    Order 5354.1G will be published in 2024 which incorporates all the
    recommendations from DoDIG- 2024-071.
        Prevention workforce hiring continues to be challenging but the
    Marine Corps is working to fill every open position. We continue
    developing the policies, procedures, and practices needed to fulfil
    integrated prevention requirements. These important team members will
    help ensure we meet the intent of the Department and the Congress in
    preventing, reducing and adjudicating complaints of sexual harassment.
                                     ______

                  Questions Submitted by Senator Brian Schatz
        Question. The U.S. military is moving to incorporate artificial
    intelligence (AI) in more aspects of its platforms and operations.
    While AI can help improve military efficiency and effectiveness,
    significant concerns exist over its uses, including through lethal
    autonomous weapons systems (LAWS).
        Given that the global rules on military AI are yet to be written,
    does the Marine Corps believe AI guardrails are necessary?
        Answer. Yes, guardrails are necessary. DoD Directive 3000.09
    outlines the guardrails currently established by the department that we
    hope will become the foundation for global rules related to the use of
    AI in LAWS. ``The design, development, deployment, and use of AI
    capabilities in autonomous and semi-autonomous weapon systems will be
    consistent with the DoD AI Ethical Principles and the DoD Responsible
    Artificial Intelligence Strategy and Implementation Pathway.''
        Question. What capabilities does the Marine Corps need to further
    invest in to keep pace with the growing threats of AI and what supports
    are needed to enable these skillsets?
    Infrastructure:
        Answer. Significant investments in hardware and software
    infrastructure is needed to deploy AI across all Marine Corps missions
    across all environments. Marines operate far from home, in every
    environment, and often with an active enemy. This requires an AI
    infrastructure that is more robust than those fielded by the private
    sector--it must work in a comms degraded environment and do so far from
    normal sources of computer and software development. This requires
    significant investment in edge computing, algorithm optimization, and a
    robust communications architecture able to support modern AI Operations
    (AIOps) across a range of scenarios from CONUS to a Weapons Engagement
    Zone. This infrastructure requires both hardware and software tools
    that enable modern AIOps.
        Current acquisition regulations make the procurement of cutting-
    edge AI capabilities and hardware difficult due to the rapid pace of
    change when compared to our ability to define requirements and procure
    to that target. We need an acquisition framework, and the commensurate
    authorities, to keep pace with rapidly growing technologies. We also
    need more flexibility in our acquisitions processes to adapt to newer
    models of ``Buying AI''. This includes leasing models and tools, the
    sharing and pooling of data, and a better ability to work with industry
    to find mutually beneficial rights to data ownership.
        We also need to grow our long-standing investment in the science
    and engineering of AI. We must ensure that our understanding of how AI
    works and--critically--how it might fail, keeps paces with the growing
    complexity of the use cases AI can solve. This involves both
    fundamental research into the technology as well as investments in the
    Test & Evaluation of AI tools. The power of AI comes from its ability
    to be useful in situations it wasn't specifically trained to handle but
    this brings with it an inability to test it in every scenario it might
    possibly encounter. Further research into this area is critical if we
    are to be able to trust the AI we deploy while the growing usefulness
    of it will almost certainly lead to calls to deploy it in cases even if
    not fully understood. Likewise, our adversaries may be tempted to
    deploy AI tools that are not fully understood if it gives them a
    material advantage over us. Failing to keep pace could put us at risk
    of losing a war.
    Workforce:
        We need a robust training and education pipeline to build an AI
    workforce that can develop, build, deploy and use AI tools across the
    range of Marine Corps missions. This includes both warfighting areas as
    well as readiness and corporate functions. A well- educated and
    technically competent workforce will ensure we maintain an advantage
    over adversaries and will also be the key link in ensuring all our AI
    use is in accordance with our values and ethics. RAI training will be
    an integral part of our AI education and training to ensure that all
    who use or make decisions regarding the use of AI will be fluent in
    policy, doctrine, and ethical use.
                                     ______

                 Questions Submitted by Senator Jeanne Shaheen
        Question. General Smith, my office has heard from constituents in
    law school that are currently receiving benefits from the Marine Excess
    Leave Program and accepted an offer on the condition of the Department
    of Veterans' Affairs confirmation of a monthly stipend through the GI
    Bill. Unfortunately, the VA recently changed its policy and is no
    longer allowing a stipend for Marines participating in the ELP.
        Are you aware of this issue and the importance of this program? Do
    you commit to working with Congress on a legislative fix?
        Answer. Thank you for your attention on this important program. The
    excess Leave Program is a vital pathway for Marines who wish to serve
    in our Corps as lawyers. I am committed to working with Congress to
    resolve this issue.
        The Marine Corps is aware of the Department of Veterans Affairs'
    recent determination that disallows payment of a monthly housing
    allowance for Marines who choose to use the Post 9/11 GI Bill while
    participating in the Excess Leave Program.
        For your awareness, the Marine Corps has committed to fully fund
    the Funded Law Education Program for the next three fiscal years. We
    are also in the process of converting several eligible Excess Leave
    Program participants to the Funded Law Education Program, where they
    will receive full active duty pay and allowances, as well as have the
    Marine Corps pay the cost of their tuition (up to the maximum amount
    allowed under the Post 9/11 G.I. Bill).
        However, there are some Marines who participate in the Excess Leave
    Program who are too senior to participate in the Funded Law Education
    Program due to a statutory cap limiting eligibility to those with less
    than 6 years of active service.
        Question. General Smith, regarding Marine helmets:
        Considering a maturing threat coupled with advancements in helmet
    technologies, what is the Marine Corps plan to generate new
    requirements for its helmet systems?
        Answer. Current Marine Corps helmets are meeting our requirements.
    The Enhanced Combat Helmet (ECH) was fielded to meet an emergent
    threat-based requirement for increased ballistic and fragmentation
    protection and wear (weight and fit). The High Cut ECH, that close
    combat Marines are equipped with, is a modification of the ECH that
    provides the same level of protection while meeting the integration
    requirements for new headborne capabilities (night vision devices and
    over the ear hearing protection). Any future helmet requirements will
    be threat informed to ensure that Marines continue to be equipped with
    the requisite level of protection.
        Question. I'm concerned about reports that Marines are removing
    protective helmet padding for extended-wear comforts and/or to free
    space for use of combat optics. This is concerning for many reasons,
    including how this could lead to TBI issues, which was the subject of a
    recent Senate Armed Services Committee hearing. Request you please
    provide the result of recent testing that uncovered this fact.
    Furthermore, what is the Marine Corps doing to provide its soldiers
    with a helmet that supports comfort, safety, and the necessary
    capability such as combat optics?
        Answer. Initial results of a recently completed extended user
    evaluation included instances of Marines removing protective helmet
    padding in the Enhanced Combat Helmet (ECH) and High Cut ECH. In many
    cases, it was discovered that Marines were wearing helmets that were
    incorrectly sized, leading them to remove helmet pads to improve fit
    and comfort. Additionally, it was discovered that commercially
    available third-party pads that do not provide adequate blunt impact
    protection were being purchased and utilized by Marines. To address
    these issues, the program manager will release a Safety of Use Message
    (SOUM) to reinforce published sizing guidelines for the ECH and HC ECH
    and the policy that prohibits Marines from using non-standard
    protection capabilities such as third-party pads. The program office
    will also conduct research to identify other pad solutions that may
    provide enhanced comfort while meeting personal protection
    requirements.
        The extended user evaluation is part of a Marine Corps effort to
    look at the potential for an improved helmet system. In assessing the
    comfort, safety and ability to integrate head mounted devices such as
    night vision, the HC ECH was found to be acceptable by Marines in all
    categories evaluated. The Marine Corps will continue to evaluate its
    helmets and any potential improved systems to provide the best
    available capabilities to our Marines.
        Question. Please report on the status and plan to resolve
    manufacturing and testing matters related to the High Cut Enhanced
    Combat Helmet in support of Marine Corps usage.
        Answer. The are no manufacturing and testing issues related to the
    High Cut Enhanced Combat Helmet. The Marine Corps is working with DLA
    to establish a follow-on Sustainment Contract for the Enhanced Combat
    Helmet, pending completion of the normal process of manufacturing and
    first article testing.
                                     ______

                   Questions Submitted by Senator Jerry Moran
        Question. The U.S. Marine Corps' OPF-L program has awarded
    contracts, ostensibly for development and test, to three vendors for
    systems with varying attributes and capabilities.
        What is the Marine Corps' plan to incorporate loitering munitions,
    lethal unmanned systems, ISR and EW platforms into tactical units?
        Answer. The Marine Corps plans to incorporate these technologies
    into its platoons and companies at the tactical level. For loitering
    munitions, the Marine Corps' Organic Precision Fires-Light (OPF-L) is
    the near-term focus providing infantry platoons and squads with anti-
    personnel and anti-materiel precision effects at increased ranges. For
    ISR, the Marine Corps is investing in a Family of Small Unmanned
    Aircraft Systems (FoSUAS). These Group 1 and Group 2 systems, which
    weigh fewer than 55 pounds, provide a variety of short, medium, and
    long-range capabilities to squads, platoons, and companies. In
    addition, the Marine Corps is developing and procuring modern, counter-
    remote controlled IED/counter-UAS systems in multiple form factors
    across the Fleet Marine Force. This includes pursuing dismounted, or
    man-portable, counter-UAS systems and mounted systems, such as the
    Marine Air Defense Integrated System (MADIS) that will support tactical
    units.
        Question. What is the roadmap for the Marine Corps' future use of
    small unit lethal unmanned systems?
        Answer. OPF-L is fully funded to provide the Marine Corps with a
    non-developmental loitering munition capability for use at the squad
    and platoon level by FY27. Future efforts will increase the range,
    survivability, and effects of these systems for use at company and
    battalion echelons.
        Question. How is the Marine Corps incorporating loitering munitions
    into distributed operations?
        Answer. Organic Precision Fires (OPF) remains a priority effort and
    is a critical element of Marine Corps modernization. OPF provides an
    organic, loitering, beyond line-of-sight precision strike capability to
    rapidly engage the enemy beyond the range of direct-fire weapons while
    minimizing collateral damage and exposure to enemy direct and indirect
    fires. Loitering munitions will be incorporated into infantry
    battalions that will increasingly execute distributed operations in the
    future.
        Question. What is the Marine Corps' fielding plan for loitering
    munitions?
        Answer. The Marine Corps will begin fielding loitering munitions to
    deploying infantry battalions in early FY27. The Marine Corps will
    initially procure approximately 550 command and control (C2) systems
    and 1,800 munitions.
        Question. What is the planned ratio of loitering munitions to
    unmanned ISR platforms within a given Platoon or Company?
        Answer. Pairing of UAS and loitering munition capabilities will
    occur at the squad through battalion echelons. The current plan is for
    each Marine infantry company to possess 18 loitering munition systems
    and 5-10 short, medium, and long range airborne RSTA systems.
        Question. How would training for these platforms occur?
        Answer. Since October 2023, the Marine Corps trains and produces
    the Military Occupational Specialty (MOS) of 7316, Small UAS Operator.
    The 71-day Program of Instruction trains Marines on the Stalker VXE30,
    R80D SkyRaider, and the RQ-20 Puma. Marines who are trained and
    certified on these platforms are assigned to Marine Corps Infantry
    units across the Fleet Marine Force (FMF).
        An array of SUAS training and experimentation--in collaboration
    with the Office of Naval Research (ONR), the Marine Corps Warfighting
    Lab (MCWL) and Exercise Forces--are executed during Service Level
    Training Exercises (SLTEs) at Marine Corps Air Ground Combat Center
    (MCAGCC) in 29 Palms. The following are a few recent examples:
      --SUAS Dropper Experimentation--MCAGCC in collaboration with ONR and
            1st Marine Division schools is testing a fragmentation grenade
            dropper SUAS to develop control and risk management procedures
            as well tactics, techniques, and procedures (TTPs) for the use
            of SUAS delivered munitions for incorporation into future
            training.
      --Live Fire Shoot Counter SUAS training--During SLTE 2-24, 2d
            Battalion 4th Marines tested the effectiveness of organic
            Marine Corps weapons against SUAS at the culmination of their
            Movement to Contact (MTC). Live fire conditions were evaluated
            to enable refinement of TTPs against modern aerial threats.
      --Counter SUAS experimentation with Electromagnetic Attack (EA)
            Equipment--Marine Air Ground Task Force Training Command's
            (MAGTF-TC) Tactical Training & Exercise Control Group (TTECG)
            in coordination with ONR employed EA equipment to gain lessons
            learned on best practices to counter a variety of SUAS
            platforms with organic Electronic Warfare (EW) capabilities.
        Question. How is the Marine Corps investing in ``swarming'' UAS
    technologies?
        Answer. The Marine Corps is actively investing in advanced swarming
    Unmanned Aircraft Systems (UAS) technologies, emphasizing both the
    hardware and software necessary to augment processing power for these
    complex systems. Key focus areas include partnerships with national and
    international bodies, development of cutting-edge software, and the
    integration of tactical communication tools. Specifically, the Marine
    Corps Warfighting Lab (MCWL) has partnered with the Irregular Warfare
    Technical Support Directorate (IWTSD), Special Operations Command
    (SOCOM), and Army Development Command (DEVCOM) to refine and utilize
    emergent semi-autonomous swarming software for managing UAS for various
    mission sets, including Intelligence, Surveillance, and Reconnaissance
    (ISR), electronic surveillance, target localization, and Counter-UAS
    operations.
        The Marine Corps is also supporting the Australian Army's
    Autonomous ISR program, one of the forefronts in reconnaissance
    swarming technology. MCWL and Marine Forces Special Operations Command
    (MARSOC) are developing a mobile UAS ``Hive'' system. This system,
    designed for high technological readiness platforms, can be transported
    via Ultra-Light Tactical Vehicles (ULTVs), small watercraft, and other
    vehicles. The technology is intended to facilitate housing, powering,
    and commanding various UAS, particularly those listed under the Defense
    Innovation Unit's Blue UAS framework, providing a robust platform for
    swarming operations.
        Additionally, MCWL is leading continued development and
    experimentation with the Radio Agile Integrated Device (RAID)-Plate.
    This next-generation wearable command and control (C2) solution is
    crucial for on-the-edge processing needs essential for AI, UAV control,
    data fusion, and UxS autonomy, such as swarming. The RAID Plate is a
    lightweight consolidated system that supports connectivity for up to
    four radios and includes an NVIDIA Graphics Processing Unit (GPU),
    enabling the high processing demands of swarming technologies.
        Question. Does the Marine Corps intend to leverage production
    readiness of lethal systems being procured by the Army's LASSO (Low
    Altitude Stalking and Strike Ordnance) program?
        Answer. The Marine Corps continues to maintain close coordination
    with Navy, Army, and SOCOM organizations pursuing similar loitering
    munitions capabilities. The Marine Corps' near-term focus is on
    completing OPF-Light testing in FY25 to support procurement in FY26 and
    fielding beginning in early FY27. The Army's Low Altitude Stalk and
    Strike Ordnance (LASSO) program of record is for a larger loitering
    munition capability, and it mirrors the Marine Corps' OPF-Medium
    requirement. The Marine Corps will leverage other Service's OPF-Medium
    testing and certification activities to eliminate duplicative efforts
    across the Services. Upon their successes, the Marine Corps will
    conduct limited delta testing for service specific requirements to
    provide initial OPF-M capabilities to Marine Corps units as quickly as
    possible.

                              SUBCOMMITTEE RECESS

        Senator Tester. This Defense Subcommittee will reconvene on
    Tuesday, April 30, at 10 a.m., maybe earlier if we can move it,
    for a hearing with the Department of the Army. Army's up next.
        We stand in recess. Thanks, folks.
        [Whereupon, at 12 p.m., Tuesday, April 16, the subcommittee
    was recessed, to reconvene at 10 a.m., Tuesday, April 30.]

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2025

                                  ----------

                             WEDNESDAY, MAY 8, 2024

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10:03 a.m., in room SD-192, Dirksen
    Senate Office Building, Hon. Jon Tester (chairman) presiding.
        Present: Senators Tester, Murray, Schatz, Baldwin, Shaheen,
    Murphy, Coons, Collins, Murkowski, Graham, Moran, Hoeven,
    Boozman, and Capito.

                             DEPARTMENT OF DEFENSE

                       Office of the Secretary of Defense

    STATEMENT OF HON. LLOYD J. AUSTIN, III, SECRETARY
    ACCOMPANIED BY HON. MICHAEL J. McCORD, UNDER SECRETARY OF DEFENSE
                (COMPTROLLER)/CHIEF FINANCIAL OFFICER

                    OPENING STATEMENT OF SENATOR JON TESTER

        Senator Tester. I want to call this hearing to order. Good
    morning. I want to welcome our witnesses, Secretary Austin, and
    General Brown. We appreciate you being with us here today.
        General Brown, this is your first appearance before this
    subcommittee in your position today. And I want to thank you
    for your commitment and longstanding service to our Nation.
        Secretary Austin, last year when you testified before this
    committee, we discussed the danger of a potential Government
    default. Thankfully, cooler heads prevailed, and we were able
    to come together in a bipartisan manner to avert a catastrophic
    Government default and shutdown. But we have failed miserably
    in getting the budget done on time.
        Here we are, more than halfway through the fiscal year, and
    you just got your budget, albeit, 6 months late. These repeated
    delays will have real impact, and I hope you will illustrate
    for us the impact of these late budgets, and constant
    continuing resolutions.
        We are meeting today to discuss DOD's $833.5 billion budget
    request for the next fiscal year. This is a 1 percent increase
    above last year's budget, and it is consistent with the budget
    caps that were agreed to in the Bipartisan Fiscal
    Responsibility Act.
        On a side note, I will tell you this, Mr. Secretary, that
    Ranking Member Collins and myself think we need a bigger
    number. And the reason for that, and you know this better than
    I, is because if we are going to invest in future technologies,
    this number has to be bigger.
        The military services and the combatant commands are
    telling us they have unfunded requirements in excess of $20
    billion. The price of fuel is much higher, our Military is
    engaged in operations around the world, the National Security
    Supplemental that Congress cleared just last month, some 8
    months after the administration presented, addresses some of
    those concerns. It includes important funds to support
    Ukraine's continued fight against the Russians, buys new
    weapons for our military services, replace those we have given
    to the Ukrainians, supports Israel's air defense capability,
    and provides much needed infusion of cash to pay for operations
    in the Red Sea, that invests capabilities critical to deter
    China.
        Finally, passing the National Security Supplemental was an
    important step forward, but that alone, will not help you or us
    get the job done. Because of the bipartisan budget caps the
    fiscal year 2025 budget request is roughly $10 billion below
    what you had planned for last year at this time. We need to
    understand what risks this lower budget creates for our
    military personnel, our operations around the globe, and out
    modernization efforts.
        We have got to get a budget done so the men and women in
    uniform, supported by civilians of Department of Defense, can
    go about their business of keeping America safe.
        I support the ongoing efforts of Senators Murray and
    Collins to chart a path forward that will work, and will work
    with anyone to get this job done.
        Once again, thank you, gentlemen for being here. Thank you
    for your testimony. But before you begin your opening remarks,
    I want to recognize Susan Collins, Senator Collins, for her
    opening statement.

                     STATEMENT OF SENATOR SUSAN M. COLLINS

        Senator Collins. Thank you very much, Chairman Tester for
    holding this very important hearing.
        General Brown, as this is your first time testifying before
    the subcommittee in your capacity as Chairman of the Joint
    Chiefs of Staff, let me join the Chairman in extending a
    special welcome to you. I also want to thank both of our
    witnesses, as well as the Comptroller, for your service and the
    service of the men and women you represent.
        I look forward to hearing from you how the President's
    fiscal year 2025 budget request will affect the Department's
    implementation of the 2022 National Defense Security Strategy,
    the goals of which I largely support. We must be clear-eyed
    that this budget request would represent a real cut in funding
    for the Department of Defense as it fails to keep pace with
    inflation. It proposes a defense funding increase of just 1
    percent, $8.6 billion, relative to the current fiscal year.
    That amount is well short of the $22.5 billion year-over-year
    increase that the Department would need simply to cover
    projected cost escalations related to fuel, military and
    civilian pay, and medical care.
        This is a nearly $14 billion shortfall. It means that the
    President's request shifts funding away from modernization,
    readiness, and procurement to cover these must-pay costs. If
    the world were becoming safer, then perhaps such a reduction
    could be absorbed with little risk to national security. But
    unfortunately, that is not the world in which we live.
        Russian President Putin continues his brutal bombardment in
    Ukraine. Hamas refuses to return the remaining 133 hostages,
    including five Americans, who have been held for 214 days since
    Hamas' attack on Israel. Iran and its proxies continue to fan
    the flames of violence throughout the Middle East, and China's
    Military budget and Navy continue to grow, including a 7.2
    percent increase in defense spending in the Chinese budget
    compared to last year.
        In the past few months, two of our combatant commanders
    have told me that the threats we face today are the most
    dangerous than any that they have seen at any time during their
    careers. In addition, we see a resurgence of ISIS-K (Islamic
    State Khorasan) and other terrorist groups that have caused the
    FBI directors to say that it is ``blinking red'' in terms of a
    potential terrorist attack on us, or our Western allies.
    Indeed, we have seen terrorist attacks.
        The proposed inventory divestments and cuts to ship vehicle
    and aircraft procurement included in the President's budget
    request would require us to incur excessive risk without there
    being any discernible reduction in the threats facing our
    country. The budget requests would result in the smallest Air
    Force fleet in the Service's history. We would have the
    smallest Army since the start of the All-Volunteer Force in
    1973. Our Naval fleet of 290 ships is already smaller than
    China's fleet of more than 370 ships.
        Under this budget, the Navy's overall fleet would grow by
    just one ship, a single ship, during the next 5e years, far
    fewer than the 435 ships China will have. The technological
    edge and high-end capabilities that we have enjoyed since the
    end of the Cold War is also eroding. It is being directly
    challenged by China and Russia.
        On a more positive note, I want to commend you, Mr.
    Secretary, and your teams, for efforts to make the Department
    more innovative and in taking steps to strengthen the
    industrial base.
        Finally, I would be remiss if I did not use this
    opportunity to thank Chairman Tester and Chair Murray for
    working with leader McConnell and me over the last several
    months, indeed this entire subcommittee, to get the National
    Security Supplemental across the finish line. These investments
    will help to strengthen our own Military and Defense industrial
    base while supporting key partners abroad.
        From the Portsmouth Naval Shipyard in Southern Maine to the
    Defense Finance Accounting Service facility in Northern Maine
    along our Canadian border, and many places in between,
    thousands of Mainers proudly support and contribute to our
    Nation's defense.
        Employees at Bath Iron Works, which builds naval
    destroyers, and Pratt & Whitney, which manufactures military
    jet engines, perform essential roles in support of our national
    security; all of the men and women who serve our country,
    whether in uniform or in the defense industrial base, or as a
    civilian Federal employee; deserve a budget that supports them.
        I look forward to hearing from our distinguished witnesses
    today.
        Senator Tester. Thank you, Senator Collins.
        First up, we will have Secretary Austin. Appreciate you
    being here, Mr. Secretary. You have the floor.

                 SUMMARY STATEMENT OF HON. LLOYD J. AUSTIN, III

        Secretary Austin. Chairman Tester, Ranking Member Collins,
    and distinguished Members of the Committee, thanks for the
    opportunity to testify in support of President Biden's proposed
    fiscal year 2025 budget for the Department of Defense.
        I am pleased to be joined by our outstanding Chairman of
    the Joint Chiefs of Staff, General C.Q. Brown; and by Under
    Secretary Mike McCord, the Department's Comptroller.
        Let me start by thanking this committee for all that you do
    to support the U.S. Military, our troops, and our military
    families. As Secretary, I have always been guided by three
    priorities: defending our Nation, taking care of our people,
    and succeeding through teamwork. Our budget request for fiscal
    year 2025 will advance all three of these priorities.
        First, the President's request will invest in cutting-edge
    capabilities across all domains. That includes $48.1 billion
    for naval and shipbuilding capabilities, $61.2 billion to
    reinforce U.S. air dominance, and $13 billion to bolster Army
    and Marine Corps combat capabilities. Our request will also
    provide $33.7 billion to strengthen our space architecture; and
    $14.5 billion to develop and field advanced cybersecurity
    tools.
        It will direct $49.2 billion to modernize and recapitalize
    all three legs of our nuclear triad, and it will sharpen our
    tech edge through a $167.5 billion investment in procurement,
    and $143.2 billion in R&D.
        Second, this budget request will support our outstanding
    troops and their families. That includes raising base pay and
    housing allowances, investing in better housing, making
    childcare more affordable, and funding vital work to prevent
    sexual assault and suicide in the military. And third, this
    request will help the Department further deepen our teamwork
    worldwide.
        Our network of allies and partners remains a strategic
    advantage that no competitor can match, and you can see its
    power in our strengthening ties across the Indo-Pacific, in
    today's expanded and United NATO (North Atlantic Treaty
    Organization), and in the 50-country Ukraine Defense Contact
    Group that I convened.
        Our budget remains rooted in our 2022 National Defense
    Strategy. Our request positions the United States to tackle the
    Department's pacing challenge, the People's Republic of China,
    with confidence and urgency. It will help meet the acute threat
    of Putin's increasingly aggressive Russia. It will help us
    tackle the persistent dangers from Iran and its proxies. It
    will help us take on the threats from North Korea and global
    terrorist organizations, and other malign actors, and it will
    help us continue to deter aggression against the United States
    and our allies and partners, and to prevail in combat, if
    necessary.
        Now today, I want to underscore three key messages. First,
    even as our budget request abides by the mandatory cap set by
    the Fiscal Responsibility Act, it is aligned to our strategy.
    We made tough but responsible decisions that prioritize near-
    term readiness, modernization of the Joint Force, and support
    for our troops and their families. Our approach dials back some
    near-term modernization for programs not set to come online
    until the 2030s.
        Second, we can only fully reach the goals of our strategy
    with your help. I am grateful that Congress passed the fiscal
    year 2024 Appropriations in March, and the single greatest way
    that Congress can support the Department is to pass
    predictable, sustained, and timely appropriations.
        My third and final message is that the price of U.S.
    leadership is real, but it is far lower than the price of U.S.
    abdication. As the President has said, we are in a global
    struggle between democracy and autocracy, and our security
    relies on American strength of purpose----
        [Interruption.]
        Senator Tester. You may proceed.
        Secretary Austin [continuing]. And our security relies on
    American strength of purpose, and that is why our budget
    request seeks to invest in American Security and in America's
    defense industrial base. The same is true for the recently
    passed National Security Supplemental that will support our
    partners in Israel, Ukraine, and Taiwan, and make key
    Investments to increase submarine production.
        In fact, about $50 billion of this supplemental will flow
    through our defense industrial base, creating good jobs in more
    than 30 States. So we are grateful for our partners in Congress
    who help us make the investments needed to strengthen America's
    security, through both the supplemental and the President's
    budget requests.
        The United States military is the most lethal fighting
    force on Earth, and with your help, we are going to keep it
    that way.
        I deeply appreciate your support for our mission and our
    troops. And I look forward to your questions.
        Thank you, Chairman.
        [The statement follows:]
                   Prepared Statement of Lloyd J. Austin, III
        Chairman Tester, Vice Chair Collins, distinguished members of the
    Committee:
        Thank you for the opportunity to testify in support of President
    Biden's proposed Fiscal Year (FY) 2025 budget for the Department of
    Defense.
        I am joined for the first time by our outstanding new Chairman of
    the Joint Chiefs of Staff, General C.Q. Brown. I am also glad to be
    back with Under Secretary of Defense (Comptroller), Mike McCord. We are
    grateful for the partnership of Congress and of this Committee in
    sustaining the most formidable fighting force in history. We remain
    deeply committed to our mission of keeping the United States secure in
    a rapidly changing global security environment. Above all, we are
    constantly mindful that our greatest strategic asset is our people--
    especially the more than 2 million extraordinary active-duty, National
    Guard, and Reserve Service members who step up every day to keep
    America safe.
        As always, we understand our duty to be the best possible stewards
    of hard-earned taxpayer dollars. Our request for resources is rooted in
    our strategy, even as it recognizes fiscal reality. For the third
    straight year, the President's defense budget request builds on the
    2022 National Defense Strategy (NDS). To responsibly and effectively
    implement the NDS and tackle the complex challenges we face, the budget
    hews to the performance-improvement initiatives that we established to
    improve the Department's capabilities, organizations, and management
    processes.
        This budget request is consistent with the mandatory caps directed
    by Congress under the Fiscal Responsibility Act of 2023, allocating
    $849.8 billion for DoD programs and initiatives for the coming fiscal
    year. Under these caps, we made difficult but responsible decisions
    that focus on maintaining our readiness and taking care of our people.
    I am confident that our budget request will continue to make the United
    States more secure. It will continue to bolster our ability to defend
    our country, paced to the growing, multi-domain challenge posed by an
    increasingly aggressive People's Republic of China (PRC). It will
    better prepare us to prevent strategic attacks against the United
    States or our allies and partners. It will strengthen the unmatched
    global network of alliances and partnerships that magnify our power and
    deepen our security. It will expand our ability to deter aggression,
    even while it prepares our forces to prevail in conflict if necessary.
    And it will pave the way toward a more resilient joint force and
    defense ecosystem, built for the security challenges of the 21st
    century.
        The NDS identifies the PRC as the Department's pacing challenge.
    This budget request therefore focuses on the need to strengthen our
    integrated deterrence and position the United States to prevail in
    strategic competition with the PRC.
        The budget request will also help us meet additional challenges we
    face in today's shifting global security environment. The NDS singles
    out President Vladimir Putin's increasingly aggressive Russia as an
    acute threat. In February, Russia's unprovoked and indefensible full-
    scale invasion of Ukraine entered its third grim year. The United
    States has been the essential nation in rallying support for Ukraine's
    fight against Putin's aggression and atrocities.
        The NDS also highlights the persistent dangers posed by Iran,
    global terrorist organizations, and other malign actors. Ever since
    Hamas's vile terrorist assault on Israel on October 7, 2023, the United
    States has steadfastly supported Israel's right to self-defense; worked
    to prevent the conflict in Gaza from igniting new eruptions on Israel's
    northern border; pushed to protect innocent Palestinian civilians and
    get far more humanitarian aid into Gaza; and moved decisively to deter
    Iran and its proxies from taking action that would escalate into a
    broader regional conflict.
        Above all, the NDS demands even deeper investments in the
    Department's people, who remain the bedrock of America's security. We
    rely on the service and the sacrifice of our troops and our civilian
    workforce, and the President's budget request will dedicate the
    resources, services, policies, and programs needed to faithfully
    support them and their families.
        Our commitment to maintaining enduring advantages for the United
    States is reflected in the Department's requests for procurement and
    for research and development--$167.5 billion and $143.2 billion,
    respectively.
        Provisions of the Fiscal Responsibility Act forced tough choices
    related to further military modernization. The law's topline limitation
    requires the Department to make targeted reductions to programs that
    will deliver key capabilities in later years to preserve the joint
    force's ability to fight and win in the near term. This approach
    assumes some risk on mid- and long-term modernization efforts not
    intended to be delivered until the 2030s, but achieving our strategy
    will require making up for these funding delays with growth in future
    years.
        Meanwhile, I take seriously Congress's goal for the Department to
    get a clean audit opinion by 2028. Americans should expect us to
    account for our dollars and our inventory. That is why this budget will
    continue to invest in the controls we put in place to ensure that we
    spend taxpayer resources as intended by Congress. And it is why I
    directed senior leaders to tie performance results to their
    organizations' audit objectives.
        Notwithstanding our efforts at responsible fiscal management, the
    lack of timely enactment of full-year appropriations has seriously
    hindered the Department's operations and planning. I am grateful for
    congressional action to pass Fiscal Year 2024 appropriations, but when
    we are forced to operate under continuing resolutions, at the previous
    year's appropriations levels, the Department cannot start new
    initiatives or increase the rate of production for many high-priority
    programs. Stop-gap funding measures delay badly needed investments in
    our military infrastructure, inflict unnecessary disruptions on our
    Service members and their families, undermine our recruitment efforts,
    and give an unnecessary boost to our strategic competitors.
        The single greatest way that Congress can support the Department of
    Defense and our troops is to pass predictable, adequate, sustained, and
    timely appropriations.
        Since my first day as Secretary of Defense, I have been guided by
    three priorities: defending our Nation, taking care of our people, and
    succeeding through teamwork. As detailed below, President Biden's FY
    2025 budget request will advance all three of these overarching
    priorities, providing the most lethal fighting force on Earth with the
    means to defend the American people in turbulent times.
        As Congress develops authorization and appropriations legislation
    in the months ahead, I am grateful for your support of our budget
    request and the mission and the people of the Department of Defense.
                              defending the nation
        To tackle the evolving challenges and threats from the PRC, Russia,
    Iran, the Democratic People's Republic of Korea (DPRK), and global
    terrorist groups, as well as transnational challenges such as climate
    change and pandemics, we must upgrade not just our weapons systems but
    also our ability to quickly field new capabilities. Today's rapidly
    shifting security environment demands that the Department ruthlessly
    prioritize to strengthen our warfighting capabilities, build a skilled
    and innovative defense workforce equipped for tomorrow's challenges,
    and work together more powerfully with our indispensable allies and
    partners.
    Outpacing the PRC
        As the NDS notes, an increasingly aggressive PRC is trying to shape
    the global system to suit its authoritarian preferences. This is a
    generational challenge, and the Department will continue to meet it. We
    also seek a free, open, and prosperous Indo-Pacific region in which all
    countries are free from coercion. The FY 2025 budget request will help
    us realize that goal.
        In FY 2025 and beyond, we will strengthen U.S. integrated
    deterrence by advancing new operational concepts, investing in cutting-
    edge capabilities across all domains, and deepening our cooperation
    with our outstanding allies and partners in the Indo-Pacific. Across
    the region, we are experimenting with new technologies to expand our
    warfighting advantages and refine the way that we operate.
        We have made historic improvements to our force posture in the
    Indo-Pacific. Last year was the most transformative year in a
    generation for U.S. force posture in Asia. In 2023, we made major
    infrastructure improvements in airfields, logistics, and domain
    awareness across the region.
        Meanwhile, we are modernizing U.S. posture in Japan and have
    deployed additional forces in Japan, Australia, Guam, and, on a
    rotational basis, in the Philippines.
        Through a $9.9 billion request for the Pacific Deterrence
    Initiative, the Department continues to prioritize investments in our
    activities and infrastructure to reinforce security and stability in
    the Indo-Pacific region and bolster our advantages and those of our
    allies and partners west of the International Date Line. With our
    allies and partners, we will continue to increase the complexity and
    the scale of our exercises, which will boost deterrence and enhance
    interoperability. We also continue to staunchly support Taiwan's self-
    defense, consistent with our longstanding policy anchored in the Taiwan
    Relations Act, the three Joint Communiques, and the Six Assurances.
    Answering the Acute Russian Threat
        Putin's unprovoked and unjust 2022 invasion of Ukraine has taken a
    harrowing toll on the Ukrainian people and threatened security in
    Europe and beyond. Putin's war is a frontal assault on the hard-won,
    post-World War II rules-based international order that has produced
    decades of prosperity without great-power war. If Putin prevails in
    Ukraine, it would embolden would-be aggressors everywhere. The world of
    chaos and conquest that Putin seeks--one in which autocrats think they
    can rewrite borders by force--would leave the United States far less
    secure. The price of U.S. leadership remains far lower than the price
    of U.S. abdication. There is no good reason to think that an emboldened
    Putin would stop with Ukraine, which could mean unthinkably high costs
    for the United States. This is not just about Ukraine's survival; it is
    also about America's security.
        The United States has therefore rallied a broad coalition of allies
    and partners to support Ukraine's brave fight against Putin's war of
    choice. The FY 2025 budget request will position the Department to
    continue to oppose the Kremlin's aggression, while bolstering U.S.
    force posture in Europe and reinforcing our allies and partners.
        As Putin's forces continue their attacks against Ukraine's front
    lines, cities, and civilians, support from Congress is more crucial
    than ever--including the supplemental funding that Congress recently
    approved. This supplemental will strengthen American security and save
    Ukrainian lives; it will enable us to meet Ukraine's urgent self-
    defense requirements, even as we maintain our own readiness and advance
    our military modernization; and it will meet our commitments to our
    partners in Israel and in the Indo-Pacific region. Moreover, because
    the additional arms and ammunition provided to Ukraine will be produced
    by our own defense industrial base, the supplemental will invest
    billions of dollars in the U.S. economy, creating quality jobs for
    Americans and increasing the resilience of our vital supply chains.
    Thank you for securing those vital resources.
    Persistent Security Threats
        Other malign actors, including the DPRK, Iran, and global terrorist
    organizations, continue to threaten the security of the United States
    and our allies and partners. Russia has deepened its ties to Iran, the
    DPRK, and the PRC--all of which seek new ways to undermine U.S.
    interests across the Indo-Pacific, the Middle East, and Africa. The FY
    2025 budget request ensures that the United States is ready to deter
    and respond to these persistent threats.
        In the Middle East, the Department remains committed to Israel's
    right to self-defense; to ensuring that Israel never has to endure
    another assault like October 7th; to the swift return of all hostages
    in Gaza, including American citizens; and to preventing the further
    spread of conflict. At the same time, we continue to press Israel to
    protect Palestinian civilians and to increase the flow of urgently
    needed humanitarian assistance into Gaza.
        The Department is also focused on Iran, whose nuclear ambitions,
    dangerous proxies, support for terrorism, and threats to freedom of
    navigation undermine regional security and threaten U.S. forces,
    allies, and partners. Through investments including integrated air- and
    missile-defense systems, maritime domain awareness, and counter-
    uncrewed aerial systems, the FY 2025 budget request will help us
    strengthen our partnerships in the region and preserve our ability to
    deploy combat-credible forces when needed.
        On the Korean Peninsula, we will continue to shore up peace and
    security, despite the DPRK's ongoing provocations. With our allies in
    the Republic of Korea and Japan, we are reinforcing our extended-
    deterrence commitment and strengthening bilateral and trilateral
    cooperation. That includes information sharing, joint exercises, new
    missile-warning data-sharing systems, and increased U.S. rotations. The
    FY 2025 budget request will ensure that U.S. forces in and around the
    Korean Peninsula remain ready to respond to aggression by the DPRK.
        Our ability to monitor and disrupt terrorist threats to our country
    and our citizens has grown dramatically in the two decades since the
    September 11, 2001, attacks by al-Qaeda. The FY 2025 budget request
    will continue to sharpen our over-the-horizon counterterrorism
    capabilities. The Global Coalition to Defeat ISIS--now in its tenth
    year, with 87 members-- is a lasting example of the value of working
    with allies and partners toward our common counterterrorism goals.
    Investing to Win Across All Domains
        We continue to strengthen our capabilities across all domains of
    potential conflict. To strengthen our sea power, this request includes
    $48.1 billion for naval and shipbuilding capabilities to enhance and
    modernize our fleet. The Navy's commitment to stable acquisitions
    remains the foundation of a healthy shipbuilding base. The Department
    plans to invest more than $9 billion over the next 5 years to improve
    public repair yards through the Shipyard Infrastructure Optimization
    Plan.
        We are also making a historic investment in our submarine
    industrial base to develop supply chains, attract and retain skilled
    workers, and ensure the on-time delivery of Columbia and Virginia Class
    submarines. The FY 2025 budget request includes $4 billion for the
    submarine industrial base, which follows the nearly $1.2 billion
    requested in FY 2024 and $3.3 billion in the recently passed
    supplemental funding bill. These investments account for existing
    production capacity at our shipyards and represent an investment
    strategy that will allow us to support both our domestic production
    goals and our commitments under the AUKUS initiative. These investments
    will enable the Navy to maintain undersea dominance, keep a strong
    presence in key regions, respond effectively to emerging PRC threats,
    and continue the transition to Distributed Maritime Operations.
        The FY 2025 budget also requests $61.2 billion in key areas to
    assure U.S. air dominance. This includes continued funding for the
    modernization and sustainment of the F-35 and F-22 fleets, while
    developing the next-generation fighters and autonomous collaborative
    combat aircraft critical to maintaining superiority in the skies. Our
    request also prioritizes long-range fires, including hypersonic
    weapons; a modern air command-and-control framework; rapid global
    mobility; and preeminent electromagnetic-warfare capabilities. To
    further increase strategic deterrence, the FY 2025 budget request will
    invest in the development, production, testing, and deployment of the
    B-21 strategic bomber and the Long-Range Standoff Weapon, which will
    enhance the Air Force's penetrating strike capability.
        On land, the FY 2025 budget requests $13 billion to bolster Army
    and Marine Corps combat capabilities. It will continue to strengthen
    and modernize the Army's Organic Industrial Base, including
    improvements to its arsenals, maintenance depots, and ammunition
    facilities. It also invests in electromagnetic-warfare capabilities and
    command-and-control systems, as well as air- and missile-defense
    systems and land-based long-range fires. Additionally, the budget
    request will invest in technology to counter small uncrewed aerial
    systems, including sensors, a common operating picture, data libraries,
    and both kinetic and non-kinetic mitigation capabilities. And once
    again, we ask Congress to provide necessary flexibility for a portion
    of this funding to enable the Department to rapidly respond to emergent
    operational needs and evolving force protection requirements.
        The FY 2025 budget request includes a $29.8 billion investment in
    munitions, including procurement for critical weapons such as Maritime
    Strike Tomahawk and Long Range Anti-Ship Missiles at or near maximum
    production-capacity levels. The Department is committed to boosting the
    variety and quantity of our air-, sea-, and ground-launched munition
    inventories and to maintaining a consistent and predictable demand
    signal for our industry partners.
        Congressional support of the Department's previous requests for
    multi-year procurement authority would help grow the advanced munitions
    industrial base.
        The FY 2025 budget request will support the Department's pursuit of
    base-resilience and base- hardening initiatives to protect our forces
    and installations from air and missile threats--and to recover quickly
    if struck. This request will continue to strengthen our missile-defense
    capabilities, including multiple new radars and launch systems for the
    Guam Defense System.
        We are also seeking resources to improve infrastructure for our
    joint forces across the Indo- Pacific. We will increase the lethality
    and the survivability of our Army and Marine deployments in the Indo-
    Pacific by providing them with the capabilities they need to operate in
    distributed and contested environments. For our Air Force, this budget
    request will improve the resilience of our forward basing by funding
    hardening and dispersion activities.
        In the space domain, we will continue to invest in the systems and
    the capabilities to build advantages over any competitor. The
    Department will commit $33.7 billion to strengthen our space
    architecture, including strategic and tactical missile warning and
    tracking; communications; positioning, navigation, and timing; space
    sensing; and the supporting ground architecture. The budget request
    will also fund upgrades to our launch infrastructure to support more
    government and commercial launches.
        Beyond our cooperation with the American commercial space sector,
    this budget request will also allow the Department to enhance our
    engagement with our allies and partners in the space domain. Consistent
    with the Space Strategic Review, these investments continue to focus on
    deterring hostile uses of space and ensuring that the United States can
    prevail should deterrence fail in this critical domain.
        The FY 2025 budget request proposes an investment of $14.5 billion
    in cybersecurity and other investments in cyberspace. This includes,
    among other things, developing and fielding advanced cybersecurity
    tools and techniques to protect our networks and critical
    infrastructure; expanding data-centric and artificial intelligence
    programs; upgrading our cyber-operations training platform; and
    accelerating our use of cloud-based capabilities.
        Finally, the COVID-19 pandemic--which killed more than 1.1 million
    Americans--underscored the national-security risks from biological
    threats. It is important, therefore, that in August 2023, the
    Department released the Biodefense Posture Review. This foundational
    document outlines key reforms to posture the Department to prevail in
    the face of future threats, including from adversaries who seek to
    disrupt U.S. military operations. Building on these reforms, the
    President's FY 2025 budget request will further enhance our ability to
    keep America safe from biological threats.
    Innovating and Modernizing
        A safe, secure, and effective U.S. nuclear deterrent is the
    ultimate check on strategic attacks against our country and our allies.
    The Department is committed to maintaining and modernizing all three
    legs of the U.S. nuclear triad even as we remain ready to pursue arms-
    control measures that enhance U.S. and allied security. The FY 2025
    budget request includes an investment of $49.1 billion to fund our
    nuclear enterprise and invest in U.S. nuclear command, control, and
    communications. This budget request will enable the Department to
    maintain our reliable and effective legacy systems while building and
    fielding their replacements.
        The replacement for the ground-based leg of the nuclear triad, the
    Sentinel weapon system, remains one of the largest, most complex
    programs within the Department. The Department notified Congress in
    January that Sentinel had experienced a critical cost overrun, and we
    are now reviewing the program, as required under the Nunn-McCurdy Act.
    This robust review will be completed within 120 days after the
    submission of the President's budget. The Department remains determined
    to prevent gaps in capability as we modernize our intercontinental
    ballistic missile fleet.
        The Department also continues to invest in cutting-edge defense
    capabilities, from uncrewed systems and smarter munitions to advanced
    energetics and manufacturing. We are integrating human-machine teaming,
    developing autonomous systems, and fielding reliable and resilient
    networks and data. At the same time, we are taking steps to optimize
    the practices and systems that are working best, while phasing out our
    technical debt--those quick fixes that we know will be costly or
    obsolete in the future. All this will make our operations faster, more
    lethal, and more survivable for our forces, allies, and partners. As I
    have repeatedly said, when we sharpen our tech edge, we expand our
    military edge.
        In this sustained period of record or near-record low unemployment,
    the Department is finding new ways to develop and recruit the talent
    that will help us maintain America's position as the global leader in
    research and development. We are cultivating skilled scientists and
    engineers through the Science, Mathematics, and Research for
    Transformation scholarship-for-service program and other initiatives.
    This budget request will also continue to pilot the Defense Civilian
    Training Corps and civilian cyber-workforce-incentive programs to
    strengthen skills in other critical fields such as acquisition, digital
    technologies, Zero Trust, and cybersecurity.
        We are also investing in research partnerships focused on critical
    technologies with our allies and partners. Our unparalleled network of
    alliances and partnerships is key for technological development, co-
    investment in combined capabilities, and production capacity.
        The Department continues to vigorously develop and test advanced
    weapons prototypes. The FY 2025 budget request will foster the
    development of several hypersonic weapons programs, prioritizing
    surface-launched boost-glide capabilities and air-launched cruise
    missiles. Also in FY 2025, the Army will field its third Medium-Range
    Capability battery and its second Long-Range Hypersonic Weapon battery.
    Our budget request will also invest in further improvements to our
    subsonic cruise missiles to keep them effective against rapidly
    evolving threats and targets.
        To sustain U.S. technological superiority for the future force, the
    public and private sectors must work even more closely together. The FY
    2025 budget will advance the work of the Defense Innovation Unit, which
    is working with venture-capital firms and tech innovators who are often
    doing business with the Department for the first time. By building
    bridges with private industry, we can acquire commercial technologies
    that will deliver game-changing capabilities at speed and scale. In
    2022, I established the Office of Strategic Capital to provide the
    Department with new, loan-based tools to catalyze private investment in
    domestic production and manufacturing of the crucial technology supply
    base, at limited cost to the Department and the taxpayer. The recent
    passage of the FY 2024 appropriations bill will empower this new office
    to help attract and scale private capital to invest in the critical
    technology components that underpin our most important weapons systems.
        We also continue to invest in programs to test and scale emerging
    technologies, such as the Strategic Capabilities Office, the Rapid
    Defense Experimentation Reserve, and the Accelerate the Procurement and
    Fielding of Innovative Technologies program.
        Additionally, the Department will continue to work with Congress to
    tackle emerging concerns through the new Replicator initiative to
    accelerate capabilities from prototype to scale. The Department is
    currently focused on producing thousands of attritable autonomous
    systems over the next 18 to 24 months, creating a repeatable process
    that will enable the rapid delivery of future capabilities.
        To improve the speed, quality, and accuracy with which commanders
    make decisions, we are actively pursuing the Combined Joint All Domain
    Command and Control capability, which seeks to integrate and deploy
    information across all domains and the electromagnetic spectrum. As
    Deputy Secretary Kathleen Hicks recently announced, the Department has
    delivered its initial iteration of this capability, an important step
    in scaling it across the joint force. The FY 2025 budget request will
    help the United States maintain our edge in command and control across
    all domains, as the pace and amount of information in warfare
    increases.
    Improving Our Resilience
        As the NDS warns, the climate crisis is reshaping the Department's
    strategic environment and threatening U.S., allied, and partner
    interests. Climate change is placing new demands on the joint force and
    challenging our readiness. Extreme weather events have inflicted
    billions of dollars of damage on DoD installations and assets. And in
    places such as the Arctic, climate change is creating new potential
    points of friction.
        By working with allies and partners to enhance climate resilience,
    we strengthen our defense relationships and bolster our ability to
    respond to instability and humanitarian emergencies. Meanwhile, by
    reducing the operational energy demand of our platforms, we can act
    more nimbly and freely in contested logistics environments and sustain
    distributed operations.
        This budget request will invest in enhancements to our operational
    capabilities, mission resilience, and readiness. This includes programs
    that reduce or avoid the risk of energy and water supply disruptions to
    military facilities--whether caused by extreme weather, cyber
    operations, or kinetic attack. The budget request also includes funding
    to improve the energy efficiency of combat operations and platforms, to
    enhance the joint force's agility, and to reduce logistics risk in
    contested environments like the Indo-Pacific region. Throughout, our
    focus is on maximizing our operational advantages--and, when necessary,
    preparing to fight and win under any conditions.
                           taking care of our people
        Doing right by our people is a readiness imperative. This budget
    request therefore will enable the Department to invest in significant
    additional quality-of-life improvements, military pay raises, and
    benefits for our outstanding Service members and their families.
    Furthermore, it helps to implement historic military-justice reforms,
    counter the scourge of sexual assault, build positive command climates,
    and deepen our efforts to prevent suicide in our ranks.
    Strengthening Support to Service Members and Families
        Our Service members and their families deserve competitive
    compensation packages that make the Department an employer of choice.
    After troops received a basic-pay increase of 5.2 percent in 2024--the
    largest in more than 20 years--the FY 2025 budget request will support
    a 4.5 percent pay raise in the coming year. At the President's
    directive, we will continue to examine compensation through the
    Quadrennial Review of Military Compensation.
        The places where we work and live affect our people's ability to
    carry out their missions and the overall recruitment and retention of
    the force. The FY 2025 budget request will build on recent investments
    in construction, maintenance, cleanup, and conservation, including $2
    billion for family housing construction and operations and more than $1
    billion in military construction for unaccompanied housing. This
    continued investment reflects the commitment in our ``Resilient and
    Healthy Defense Communities'' strategy to ensure that our people live,
    work, and train in healthy, functional, and resilient spaces.
        The FY 2025 budget request will provide additional economic support
    to our Service members and families across a range of programs. The
    Department is making childcare more accessible and affordable, and we
    are expanding the availability of childcare-fee assistance through the
    Military Child Care in Your Neighborhood PLUS initiative. Additionally,
    in 2023, the Department established the opportunity for Service members
    and their families to contribute to dependent-care flexible spending
    accounts, which make the costs of childcare and other forms of care for
    family members easier to bear. I have also taken direct action to
    reduce commissary prices and to increase opportunities for our military
    spouses to excel in their own careers.
        With thanks to Congress, the Department has implemented expanded
    parental-leave benefits for our Service members. New parents now
    receive 12 weeks of paid, non-chargeable leave, whether they become
    parents by birth, adoption, or long-term foster care. And when a
    Service member suffers the tragedy of the death of a spouse or child,
    DoD has implemented a bereavement leave benefit that Congress provided,
    which allows Service members who have not yet accrued significant
    annual-leave balances to take up to 14 days of non-chargeable leave in
    these times of grief.
    Protecting Our Teammates and Ensuring Accountability
        As I said on my first full day in office, sexual assault in the
    military is a scourge, and ending it is a leadership issue. Every
    member of the force deserves a workplace free of sexual assault, sexual
    harassment, and personal fear, which erode cohesion and trust within
    our units. The FY 2025 budget request will ensure that the Department
    will have the capabilities, the programs, and the integrated prevention
    workforce needed to implement the recommendations I approved from the
    2021 Independent Review Commission on Sexual Assault in the Military.
        The Department also recently reached a milestone in strengthening
    accountability and increasing Service members' trust in the fairness
    and integrity of the military justice system. In December 2023, the
    Offices of Special Trial Counsel within the Military Departments
    reached full operational capability, shifting prosecutorial discretion
    for 13 serious criminal offenses away from commanders to specially
    trained and independent judge advocates who report directly to the
    Secretaries of the Military Departments. This landmark change to the
    U.S. military justice system significantly strengthens the independent
    prosecution of sexual assault and other serious criminal offenses, such
    as domestic abuse and child abuse and neglect. It is the most important
    reform to our military justice system since the creation of the Uniform
    Code of Military Justice in 1950, and I am grateful to Congress for
    passing this important law.
        The Department also remains laser-focused on preventing suicide in
    our ranks, and we are committed to implementing enabling actions
    informed by the work of the Suicide Prevention and Response Independent
    Review Committee. In September 2023, I announced a comprehensive
    suicide-prevention campaign plan implementing more than 80 actions,
    including steps to improve suicide-prevention training, reduce the
    stigma associated with seeking help, expand access to support services,
    and promote the safe storage of guns and potentially dangerous
    medications.
    Addressing the Recruiting Challenge and Growing Our Talent
        The Department of Defense must recruit and retain the best of
    America, building pathways of opportunity for all qualified patriots
    who seek to serve. Many factors can affect recruiting, including a
    competitive economy, shifting attitudes toward institutions, limited
    familiarity with the military, and the aftermath of the Iraq and
    Afghanistan wars. To push past the headwinds in meeting the recruiting
    mission, we must clearly convey the full range of opportunities and
    benefits offered by military service. Recent legislation and ongoing
    activities by the Services are opening pathways for recruiters to reach
    more young people while upholding our standards.
        Amid today's challenging recruiting environment, retention remains
    high. The Department has moved effectively to incentivize members to
    remain in the military, to strive for promotion and increased
    responsibility, and to enhance their skills and abilities. This budget
    request envisions additional ways to tap into the full range of talent
    across America.
        The FY 2025 budget request will also support a properly sized,
    highly capable civilian workforce aligned to the Department's mission
    and workload. The Department will continue to work to make the best
    possible use of our deeply dedicated people, including our troops, our
    civilian workers, and our contractors.
        The Department continues to provide exceptional opportunities for
    service and professional development. This means attracting more
    personnel with technological skills, foreign-language abilities, or
    other talents. We are investing in training and education, as well as
    creating scholarships for science, technology, engineering, and math.
    The Department is committed to attracting, retaining, and developing
    the best talent in America, especially rising stars with expertise on
    emerging technologies and cutting-edge capabilities such as AI, data
    analytics, digital modernization, and cyber operations.
                          succeeding through teamwork
        Our long-term security and success demand teamwork--across the
    Department and beyond. That means working closely and effectively with
    our interagency colleagues, Congress, industry, and our peerless
    network of allies and partners worldwide. The FY 2025 budget request
    will enable the Department to deepen our cooperation with the allies
    and partners who magnify our power and advance our shared security
    interests.
        The NDS is rooted in the immutable military reality that
    strengthening our work with allies and partners deepens our common
    security and lets us share the burden of forging a safer and more
    prosperous world. For example, the Defense Security Cooperation Service
    that I established in May 2023 will improve the way the Department
    trains, organizes, and equips itself for security cooperation, which in
    turn will let us more swiftly and effectively deliver capabilities to
    our allies and partners. This budget request will support the initial
    phases of the establishment of this service, which will put our
    Embassy-based Security Cooperation personnel on par with those in the
    Defense Attache Service.
    The AUKUS Partnership
        I am grateful to Congress for its support of the historic AUKUS
    partnership, including passing legislation to allow for more seamless
    defense innovation and trade with two of our closest allies, Australia
    and the United Kingdom. The FY 2025 budget request will support the
    AUKUS initiative to forge a more secure balance of power in the Indo-
    Pacific region. Our three proud democracies are jointly tackling the
    threats of the 21st century, building on our proud work together in the
    20th century.
        Last year, the President announced our plans for the first major
    initiative of AUKUS: providing Australia with a conventionally armed,
    nuclear-powered submarine. The phased approach to that initiative will
    allow us to provide this capability on the fastest possible timeline,
    while strengthening the nuclear nonproliferation regime. The first
    phase of that initiative is on track: the first Australian submariners
    have graduated from our nuclear-power school; two of our submarines
    have conducted port visits in western Australia; and Australian workers
    are building their skills alongside Americans in our ports in Hawaii
    and Guam. In December 2023, I hosted my U.K. and Australian
    counterparts at the Defense Innovation Unit in Silicon Valley, where we
    committed to seeking even greater innovation and interoperability among
    our defense industries. This AUKUS initiative will deepen trilateral
    cooperation in several areas, including artificial intelligence and
    autonomy, quantum technologies, cyber capabilities, hypersonics, and
    more.
        We are also expanding our bilateral defense and security
    cooperation with Australia, particularly on force posture and
    capabilities development. In 2023, our two governments entered into an
    arrangement to collaborate on a flexible guided weapons production and
    maintenance capability to be located in Australia.
    Allies and Partners in the Indo-Pacific
        Our network of allies and partners in the Indo-Pacific is deep,
    wide, strong, and committed to a shared vision of peace, prosperity,
    stability, and deterrence. The FY 2025 budget request will ensure that
    the United States can continue to strengthen these key alliances and
    partnerships.
        To deter the threat that the DPRK's nuclear weapons and ballistic-
    missile programs pose to the American homeland, we have increased
    rotations of strategic assets to the Korean Peninsula and returned to
    large-scale, combined, live-fire exercises with the Republic of Korea.
        We are working closely with our Japanese allies to forward-deploy
    more versatile and resilient U.S. capabilities, to enhance Japan's
    counterstrike capabilities, and to modernize our alliance's command and
    control.
        We are modernizing the U.S.-Philippines alliance by enhancing
    maritime cooperation, strengthening Philippine capabilities, and
    improving interoperability and information sharing. Under the Enhanced
    Defense Cooperation Agreement, we have expanded our rotational presence
    to four new strategic locations in the Philippines. These steps
    underscore our unwavering commitment to our Mutual Defense Treaty with
    our allies in the Philippines.
        Our annual Cobra Gold exercise with Thailand helps strengthen
    relationships among participating regional partners. Last year's
    exercise saw the largest U.S. contingent in a decade, as well as the
    participation of dozens of other countries, in a welcome return to pre-
    pandemic levels.
        With this budget request, we are beginning a new chapter in U.S.-
    India relations, under our Major Defense Partnership. Our militaries
    are accelerating joint exercises, information-sharing, and other
    operational activities to boost maritime security in the Indian Ocean.
    By bolstering the Indian military's capabilities, we can work together
    to uphold a more stable balance of power across the wider Indo-Pacific.
    We are committed to ensuring that the growing U.S.-India partnership
    supports the efforts of our broader network of allies and partners,
    especially the Quadrilateral Security Dialogue among Australia, India,
    Japan, and the United States.
        The FY 2025 budget request will also enable the Department to
    remain engaged across the Pacific Islands region, in alignment with our
    Indo-Pacific strategy. That includes building on the Defense
    Cooperation Agreement that we secured last year with Papua New Guinea,
    as well as increased security cooperation and closer bonds with the
    Freely Associated States--Micronesia, the Marshall Islands, and Palau.
        Strong multilateral cooperation, including with the Association of
    Southeast Asian Nations (ASEAN), underpins all these efforts to foster
    a free and open Indo-Pacific. As I have said, the Indo-Pacific remains
    our center of strategic gravity.
    European Security and Support to Ukraine
        The United States continues to work closely with our allies and
    partners to support Ukraine's fight for freedom. The engine of our
    efforts is the Ukraine Defense Contact Group, the coalition of some 50
    countries that I regularly convene to meet Ukraine's immediate
    battlefield needs and support its long-term security and sovereignty.
    Members of the Contact Group have organized new, multinational
    ``capability coalitions,'' focused on supporting such areas as
    Ukraine's air force, integrated air and missile defense, artillery,
    maritime security, armor, information technology, de-mining, and
    drones.
        Putin's war of choice poses the largest threat to European security
    since the height of the Cold War, and NATO is more united than ever.
    The greatest alliance in history has gained two more highly capable
    defense partners with the recent accession of Finland and Sweden, and
    the United States has moved urgently with our allies to further fortify
    NATO and bolster its defenses on its eastern flank.
        Allies are also increasing investments in their own militaries at
    levels not seen since the end of the Cold War. More allies than ever
    are meeting their pledges to invest at least 2 percent of their GDP in
    defense--including, as NATO Secretary General Jens Stoltenberg has
    noted, a real increase of 11 percent in defense spending in 2023 across
    our European and Canadian allies. This is historic progress, and we
    will continue to encourage further investments and urge every member of
    NATO to meet its obligations under the Defense Investment Pledge.
        Our commitment to Article Five of the North Atlantic Treaty remains
    ironclad. We will not be dragged into Russia's war of choice, but we
    will stand with Ukraine as it fights to defend itself, and we will
    continue to strengthen NATO's collective defense and deterrence. We
    cannot have a secure America without a strong NATO.
        The Kremlin's war poses a direct threat to security in Europe and
    beyond. The world will only become more dangerous if Putin and his
    fellow autocrats conclude that they can wipe democracies off the map
    and force free people to live in fear. So we will continue to support
    Ukraine's brave defenders--both because it is the right thing to do and
    because it is central to America's continued security.
    Investing in America's Defense Industrial Base
        The United States needs an adaptive, resilient, and robust defense
    industrial base to meet its 21st- century defense challenges. Today,
    our defense industrial base still relies heavily on foreign production
    and vulnerable supply chains. Providing military capabilities at the
    speed and scale necessary to maintain our competitive advantage--
    without relying on competitors for capital, technology, or raw
    materials--will require cooperation and investment from both the
    private and public sectors to build a modern defense industrial base.
        In January, the Department published the National Defense
    Industrial Strategy, which will guide DoD actions--in partnership with
    industry and our allies--to meet the production demands posed by
    evolving threats. This budget request will shore up critical domestic
    and allied supply chains for sectors such as microelectronics, casting
    and forging, and batteries and energy storage. It will also help secure
    upstream supplies of rare earth elements essential to U.S. economic and
    national security, including by supporting programs to boost innovative
    manufacturing methods, the use of alternate materials, and strategic
    stockpiling.
        The budget request also outlines investments to revitalize our
    submarine industrial base. That will create good American jobs, grow
    our manufacturing capacity, and strengthen our submarine supply chains.
        When we invest in America's defense industrial base, we do not just
    strengthen our national security; we also boost our economy. The
    defense sector can catalyze innovation, create jobs, and make
    technological advances. Our relationships with industry can strengthen
    America's defense even as they sustain America's economic growth.
        Such progress relies on a fully funded defense budget. Dependence
    on short-term funding measures damages our ability to invest in our
    defense industrial base. Under continuing resolutions, critical
    national-security programs are delayed or put on hold, and the fiscal
    uncertainty destabilizes the U.S. economy. The only clear path for the
    United States to maintain our global strength and continue to outpace
    our rivals is for our valued partners in Congress to provide full-year
    appropriations. Building on Congress's meaningful investments over the
    past 3 years, the Department is committed to working with Congress to
    ensure that our industrial base can continue to meet the needs of our
    warfighters--and ensure continued security for the United States.
                                   conclusion
        As the President has noted, we stand at ``an inflection point in
    world history.'' Amid a global battle between democracy and autocracy,
    our friends, our rivals, and our foes are all looking to America. Our
    security in these turbulent times relies on American strength of
    purpose. We remain determined to meet this moment.
        The FY 2025 budget request will ensure that the Department will be
    able to continue building the most lethal, resilient, and responsive
    military on Earth. We hope that our valued partners in Congress will
    help us make the critical, targeted investments to strengthen America's
    security in this time of historic challenge. To that end, the single
    best thing that Congress can do to strengthen our national defense is
    to pass a full-year appropriation. Our competitors do not have to
    operate under continuing resolutions. When the Department does, it
    erodes both our country's security and our ability to compete--today
    and in the future.
        We make this request mindful of the need to be faithful stewards of
    taxpayer dollars. The American public, including of course our
    extraordinary troops and veterans, should never expect anything less.
        Finally, I want to thank our Soldiers, Sailors, Airmen, Marines,
    and Guardians; their families, caregivers, and survivors; and our
    civilian employees. They are our greatest strategic asset--and they
    never waver in their drive to make our union more perfect, our country
    more secure, and our world more just.
        Thank you.

        Senator Tester. Secretary Austin, thank you for your
    testimony.
        Next, we will have General Brown. General Brown, you have
    the floor.
    STATEMENT OF GENERAL CHARLES Q. BROWN, JR., CHAIRMAN OF
                THE JOINT CHIEFS OF STAFF
        General Brown. Chairman Tester, Ranking Member Collins, and
    distinguished Members of the Committee, I am honored to join
    Secretary Austin and the Honorable Mike McCord to appear before
    you today.
        On behalf of the Joint Force, the Department of Defense,
    civilians, and our families, I want to thank Congress for your
    steadfast support and the opportunity to testify on the fiscal
    year 2025 Defense budget request, which reflects our shared
    commitment to national security. I also want to thank you for
    passing the National Security Supplemental, which provides
    vital support to our allies, partners, and our defense
    industrial base, to counter aggression and strengthen our Joint
    Force capabilities and capacity in preparation for any future
    contingency.
        The global security environment is increasingly complex.
    The 2022 National Defense Strategy identifies five key
    challenges: the People's Republic of China, our pacing
    challenge, continues its risky behavior around the globe. A
    newly aggressive Russia with its unprovoked war against
    Ukraine; a reckless Iran, who we saw a few weeks ago attempts
    to escalate regional conflict with unprecedented attacks and
    support of proxy forces; the destabilizing North Korea, which
    threatens regional security; and violent extremist
    organizations, which leverage instability to advance their
    cause.
        These challenges are interconnected, which demands a
    strategic approach addressing the immediate threats while also
    preparing for future contingencies. It requires all of us to
    operate with a sense of urgency. Days after becoming the
    Chairman, I laid out three expectations in my message to the
    Joint Force: honing our warfighting skills have primacy in all
    we do; modernizing and aggressively leading with new concepts,
    and approaches; and trust is the foundation of our profession.
        Our military exists to fight and win our Nation's wars. We
    train every day to ensure we are so good at what we do that we
    deter any adversary from engaging the U.S. in conflict. This
    budget requests $147 billion to sustain readiness and ensure
    the Department can counter near-term threats. We also focus on
    better integrating our allies and partners in our planning and
    operations by investing in critical programs and capability,
    expanding security cooperation, exercises, training, and
    interoperability.
        Our investments in readiness ensure the Joint Force can
    respond when the Nation calls. While we are focused on our
    readiness for today, it is critical to modernize and lead with
    new concepts to prepare for tomorrow. The Department continues
    to invest in capability and capacity to outpace our competitors
    while transforming from costly legacy platforms that are no
    longer relevant to the threat.
        This budget strategically invests $167.5 billion in
    procurement, underscoring our commitment to equip the Joint
    Force with unparalleled combat capabilities across every
    domain. This budget also invests $143.2 billion in research,
    development, tests, and evaluation of future capabilities that
    will retain our strategic edge.
        This budget invests significantly into nuclear
    modernization, digital innovation, multiyear procurement of
    critical munitions, and the strengthened defense industrial
    base. With rapidly evolving threats in technology, accelerating
    our modernization is crucial.
        Lastly, trust is the foundation of our profession. Joint
    Force must uphold--must build upon, and uphold the trust in
    each other, trust of our families, trust of our elected
    leaders, and trust of our Nation. Enhancing the quality of
    service and the quality life of our personnel is not just a
    moral obligation; it is a strategic imperative. The budget
    includes investments in quality of service efforts such as
    advanced training, educational benefits, and career
    development, while also investing in quality life projects like
    housing, medical clinics, and child care facilities, as well as
    funding spouse employment initiatives, enhanced mental health
    resources, and robust programs to combat sexual assault.
        We must create an environment where all can reach their
    full potential. Trust that our Joint Force stands ready, ready
    to defend our national interests, ready to deter aggression,
    and ready, if necessary, to fight and win our Nation's wars.
        I thank you for your support and collaboration in our
    shared commitment to face the security challenges of today and
    prepare for tomorrow. We are living in consequential times, and
    there is no time to waste.
        Thank you. And I look forward to your questions.
        [The statement follows:]
              Prepared Statement of General Charles Q. Brown, Jr.
                                    overview
        I am honored to represent our dedicated Joint Force, Department of
    Defense civilians, and their families who are focused on ensuring and
    supporting our national security. I thank Congress for your support and
    collective commitment to addressing our most pressing national security
    challenges. The Joint Force acknowledges and appreciates the diligent
    efforts of our Congressional members in securing the vital resources
    necessary to train, equip, and maintain our readiness, while also
    modernizing to prepare for the future.
        The President's $849.8 billion defense budget for Fiscal Year (FY)
    2025 reflects our shared commitment to facing today's security
    challenges head-on, while also laying the groundwork to confront the
    uncertainties of tomorrow. This budget includes targeted program
    reductions to meet funding levels approved by Congress under the Fiscal
    Responsibility Act of 2023. Under these caps, this budget prioritizes
    Joint Force readiness and taking care of our people while reducing
    programs that will deliver future combat capability in the 2030s.
        The 2022 National Defense Strategy (NDS) identifies the evolving
    security challenges that the Department must address to safeguard our
    national interests. Implementing the NDS requires the Joint Force
    address these challenges while simultaneously accelerating
    modernization to maintain our strategic advantages. This budget
    resources our strategy and enables the Joint Force to invest in
    capabilities to remain the most capable military force in the world for
    decades to come. The NDS articulates four key priorities essential to
    our national security:
      --Defending the homeland, paced to the growing multi-domain threat
            posed by the People's Republic of China (PRC)
      --Deterring strategic attacks against the United States, Allies, and
            partners
      --Deterring aggression, while being prepared to prevail in conflict
            when necessary
      --Building a resilient Joint Force and defense ecosystem
        The NDS makes it clear that the PRC remains our pacing challenge
    and ``our most consequential strategic competitor for the coming
    decades.'' The PRC is the only state with the intent as well as the
    economic, diplomatic, military, and technological power to reshape its
    region and the global order. The Joint Force will focus efforts on
    addressing our pacing challenge while simultaneously preparing for and
    responding to the acute Russian threat and the challenges posed by
    North Korea, Iran, and Violent Extremist Organizations (VEOs).
        This budget is threat-informed and built to ensure that our
    strategic planning, resource distribution, and capability development
    are responsive to current challenges as well as future threats. Through
    aligning this budget with the strategic and operational landscape, the
    Joint Force is postured to remain versatile, resilient, and capable to
    protect the American people, our prosperity, and our way of life.
        Each branch and component of our Armed Forces plays a pivotal role
    in supporting and upholding these priorities. The connections from this
    budget request to the NDS, National Military Strategy (NMS), and the
    Joint Warfighting Concept (JWC) are clear and deliberate. The JWC,
    informed by the current threat environment, has linkages to our
    resource allocation and requirement planning processes.
        The current strategic environment requires that our force continue
    to advance and adapt to the changing character of war. We must always
    be prepared to fight and win our Nation's next war. Our current
    strategic advantage gives us confidence against any adversary. We must
    continue to strengthen our national security and our warfighting
    advantage because our competitors and adversaries have not stopped
    advancing their capabilities.
        I am confident in our Joint Force. Our Soldiers, Sailors, Airmen,
    Marines, Guardians, and civilian teammates form the most capable
    fighting force in the world--bar none. In my 2 October 2023, Message to
    the Joint Force, I articulated my expectations for the Joint Force:
      --Honing our warfighting skill has primacy in all we do
      --Modernizing and aggressively leading with new concepts and
            approaches
      --Trust is the foundation of our profession
        The Joint Force can only remain the world's most capable force if
    it is supported by the necessary resources to organize, train, equip,
    exercise, and employ the Total Force. We can only accomplish our
    mission and maintain our advantage with stable, predictable, and timely
    budgets. By passing an on-time budget, Congress enables the Department
    to execute our strategy with a full-year appropriation. We are
    challenged to implement our strategy and stay ahead of our pacing
    challenge when we are not resourced with an on-time full-year
    appropriation and funding is delayed due to another Continuing
    Resolution.
        Our service members and their families sacrifice for our Nation and
    we owe them the tools they need to be successful in a dynamic, evolving
    strategic environment.
                             strategic environment
        The global security environment is extremely complex. The
    international order and its principles of sovereignty, democracy, and
    rule of law have underpinned global security for almost 80 years.
    Today, this system is under threat. The NDS identifies five key
    challenges that threaten U.S. national interests and our way of life:
    the PRC, Russia, North Korea, Iran, and VEOs. All five of these
    challenges are currently active at the same time and in some cases
    working together.
        I have served as the Chairman of the Joint Chiefs of Staff for more
    than 6 months and during this time, each of our NDS challenges have
    confronted our defense and security goals. The PRC continues to
    undertake coercive and risky military behavior in the South China Sea,
    across the Indo-Pacific, and around the globe. Russia's unprovoked war
    of aggression in Ukraine has entered its third year seeking to
    overthrow a sovereign neighbor that posed no threat. Iran sponsors and
    supports militia groups and terrorist activity threatening regional
    stability and U.S. forces. North Korea continues to test ballistic
    missiles and technology while also transferring ballistic missiles to
    Russia in direct violation of multiple United Nations Security Council
    resolutions. VEO activities around the globe spread violence, sow
    terror, and cause unnecessary suffering. These actors work to exploit
    perceived gaps in U.S. military might, seeking to expand their
    influence and challenge the global order.
        Today's current global strategic environment requires the Joint
    Force to both address the pacing challenge of the PRC and focus efforts
    on the rest of the globe. We can and will do both.
        People's Republic of China: The PRC's increasingly aggressive
    military actions in the South China Sea; actions to assist Russia,
    North Korea, and Iran; and increasing economic influence around the
    globe threaten to destabilize the global security environment. The PRC
    continues to expand military capabilities across multiple domains. We
    are entering a decisive decade where the PRC is challenging the future
    of the international order and the United's States' place in the world.
        Though the Joint Force focuses on being ready for conflict, our
    goal is to deter and stay in competition. On 21 December 2023, I held a
    video teleconference with my PRC counterpart to discuss the importance
    of responsibly managing competition and avoiding miscalculations.
    Communication lines have reopened with the PRC across various levels
    across the U.S. Government, engaging in substantive dialogue which can
    reduce the likelihood of misunderstandings and inadvertent escalations.
        Russia: Russia's war in Ukraine not only threatens European
    stability but also aims to undermine the global order to benefit its
    interests. The international community's support for Ukraine has been
    pivotal, emphasizing the global commitment to sovereignty and deterring
    future aggression around the world. Russia's focus on expanding and
    modernizing its nuclear arsenal further complicates the global security
    dynamic.
        North Korea: North Korea's advancing nuclear program threatens U.S.
    interests and regional stability. Its ongoing and increasingly
    aggressive ballistic missile research and testing represent a threat to
    our homeland and to our Allies and partners in the Indo-Pacific.
        Additionally, recent information has indicated that North Korea
    provided Russia with ballistic missile launchers and ballistic
    missiles, which is a notable and concerning escalation in North Korean
    support for Russia.
        Iran: Iran-backed militia groups have used the HAMAS terrorist
    attacks of 7 October 2023 to increase attacks on U.S. forces in Syria,
    Iraq, the Red Sea, and across the region. Iran's support for and
    involvement in these attacks contributes to larger regional
    instability.
        Additionally, Iranian aid has enabled the Houthis to initiate a
    campaign of missile attacks, since November 2023, against commercial
    ships in the Red Sea. Iran is also taking actions to improve its
    missile forces and continues to retain programs that would enable
    nuclear weapon production. Finally, Iran provides support to Russia's
    aggression and continues to operate across the gray zone with coercive
    and malign activities.
        Violent Extremist Organizations: Against the backdrop of these
    state actors, VEOs continue to sow terror and instability, with recent
    escalations further threatening regional peace. On 7 October 2023,
    HAMAS conducted a heinous and brutal attack on the people of Israel.
    The U.S. remains committed to supporting Israel's right to defend
    itself while actions to protect and provide humanitarian aid to the
    civilians in Gaza must increase. The threat landscape is further
    complicated by transnational extremist organizations such as ISIS, Al
    Qaeda, and others across Europe, Africa, the Middle East, and the Indo-
    Pacific. Despite experiencing significant setbacks, these groups
    persist in their violent campaigns, leveraging instability to expand
    their presence, manipulate populations, and disseminate radical
    ideologies.
        The interconnectedness of these challenges necessitates a strategic
    approach that addresses the immediate threats while also preparing for
    future contingencies. The U.S. and its Allies must navigate this
    complex environment with a combination of military readiness,
    diplomatic engagement, and a commitment to the principles that have
    historically underpinned global order.
                                  warfighting
        Our military exists to fight and win our Nation's wars. That is why
    I'm adamant, honing our warfighting skill has primacy in all we do. We
    train and prepare every day to ensure we are so good at what we do,
    that we deter any adversary from engaging the U.S. in conflict. The FY
    2025 budget will enable our force to train across the full spectrum of
    operations at varied levels of scope, scale, and complexity. The Joint
    Force works to implement the NDS through campaigning by linking
    together training, exercises, and activities to reach our defined
    objectives. This budget enables the necessary investments to carry out
    our Joint Force's crucial work and to do so with tactical and technical
    proficiency.
        First and foremost, our service members are expected to master the
    warfighting skills of their individual service. Our service members
    must focus on being an adversary's worst nightmare in a fight. As the
    tactical expert in each domain of warfare, our service members are then
    required to integrate individual mission areas into a cohesive fighting
    force. With the changing character of war, future conflicts will be
    fought across all warfighting domains--land, sea, air, space, and
    information. Therefore, eliminating gaps and seams in Joint Force
    readiness will be a priority. This requires proper resourcing for
    training aides, employment ranges, and equipment to be able to practice
    like we fight across events from daily training evolutions to fully
    integrated high fidelity international exercises. This budget requests
    $147 billion to sustain readiness and ensure the Department can counter
    near-term threats and prevail in long-term strategic competition.
        In addition, any future armed conflict will be fought alongside
    Allies and partners, necessitating our Soldiers, Sailors, Airmen,
    Marines, and Guardians be able to integrate across the joint and
    combined force. My expectation is that America's service members are
    able to execute tactically while also understanding the larger
    operational context and geostrategic environment in which they operate.
        Finally, our service members understand that the United States
    military is only one component of our whole of government efforts to
    support and protect our interests in the global order. The U.S. must
    act with one end goal in mind and holistically bring together all our
    elements of national power.
        Allies and Partners: The United States has an incredible network of
    Allies and partners with whom we integrate to achieve our security
    objectives. We can better leverage their contributions and capabilities
    by building them into our plans from the beginning. We cannot expect
    success when we focus on building U.S.-only capability and then adding
    on Allies and partners at the end. We must start at the beginning with
    the end in mind and account for our Allies and partners earlier in our
    planning, requirement, and acquisition processes. The FY 2025 budget
    will enable the Joint Force to plan, train, and exercise alongside our
    Allies and partners worldwide. It will also enable further research,
    development, and testing for joint capabilities and the integration of
    partner capabilities to collectively address global security
    challenges. Our Allies and partners are a powerful force multiplier and
    are crucial for our continued security.
        Working together as a combined force enhances our capabilities
    immensely, demonstrated by the collective effort of Allies and partners
    around the world in delivering more than $88 billion in security
    assistance to Ukraine since Russia's invasion in 2022. This security
    assistance has not only supported Ukraine, but it has also reaffirmed
    our resolve to work with our Allies and partners around the world as
    closely as ever. We have strengthened NATO, enhanced and recommitted
    our support to Israel and Taiwan against regional threats, and advanced
    efforts in the tri-lateral security partnership between Australia, the
    United Kingdom, and the U.S (AUKUS). This budget includes $2.9 billion
    for the European Deterrence Initiative and $9.9 billion for the Pacific
    Deterrence Initiative. This will fund capabilities to expand security
    cooperation with Allies and partners across Europe and the Indo-
    Pacific, ballistic missile defense activities in support of Guam,
    improved infrastructure, exercises, training, and experimentation
    activities. The $4.0 billion for the submarine industrial base will
    strengthen the health and capacity of the submarine force and further
    advances AUKUS. In our globally interconnected world, relationships
    matter. None matter more than our close-knit ties with our Allies and
    partners.
        During my more than 6 months in this job, I have had more than 145
    engagements with my counterparts from around the world. My engagements
    have revalidated a well-known fact. U.S. leadership is wanted, needed,
    and watched. U.S. efforts are a catalyst for change--what we do drives
    action.
                         modernization and new concepts
        Our Nation needs us to both be ready to fight today's battles and
    prepare for tomorrow's wars. We must prepare by modernizing and
    aggressively leading with new concepts and approaches. The JWC provides
    a framework for how the Joint Force will modernize and how we will
    fight in a future conflict. The JWC guides the Department's future
    force development, design, and warfighting approach to ensure we have
    the right people, equipment, training, roles, and doctrine to deter and
    if necessary, win in a future conflict. We must modernize our force,
    through innovation and by building a bridge to the defense industry to
    deliver capability in a timely manner.
        As we work to shorten the timeline between prototype and program of
    record, there is growing importance for collaboration between the
    Services and our industry partners to deliver at scale, develop
    training programs, and provide required sustainment so our warfighters
    can operationalize the delivered capabilities. With rapidly evolving
    threats and technologies, accelerating our modernization is crucial.
    Our adversaries are advancing quickly, and it is imperative that we
    equip our Joint Force with the most advanced tools and capabilities
    available.
        Readiness and modernization depend upon consistent on-time, full
    year appropriations. We thank Congress for passing FY 2024
    appropriations and we will work with Congress to deliver on-time
    appropriations for FY 2025. Continuing Resolutions of any length have
    long lasting impacts on the Joint Force. They significantly impact and
    degrade our ability to defend the United States. They slow progress,
    prevent new starts of programs, and delay our force modernization
    efforts. They damage our relationships with the defense industrial
    base, eroding trust and driving up costs as industry hedges against
    funding inconsistency. We have operated under Continuing Resolutions
    for 14 of the last 15 years, totaling 5 years' worth of lost time. Time
    we cannot get back.
        Force Modernization: We continue the execution of several programs
    essential to Joint Force modernization, focusing on advanced platforms,
    long-range fires, and uncrewed systems. The Department continues to
    invest in capabilities and effects to outpace our competitors while
    divesting costly legacy platforms that no longer best meet our needs.
    While these choices may be challenging, they are crucial for directing
    resources towards the optimal mix of programs to fill the portfolio of
    requirements essential for our security.
        In the FY 2025 budget, $167.5 billion is strategically allocated
    towards procurement, solidifying our commitment to equip the Joint
    Force with unparalleled combat capabilities across every domain. Our
    air power will be elevated through a fleet of advanced fighter
    aircraft, the B-21 bomber, and tanker aircraft. Our sea power is
    strengthened with the construction of six battle force ships as well as
    the continued production of Ford-class aircraft carriers and Columbia
    ballistic missile submarines. Our combat force in the land domain will
    be modernized and reinforced with the most advanced equipment available
    including the Armored Multi-Purpose Vehicle, Amphibious Combat Vehicle,
    and the XM30 Combat Vehicle. This budget also includes significant
    development in uncrewed and autonomous systems to expand reach, access,
    and payload for operations across all domains. Together, these systems
    along with advanced weapons will challenge, target, and neutralize
    adversary capabilities while also affirming our technological edge in
    an era of strategic competition.
        Additionally, this budget significantly advances our long-range
    fires capabilities with $9.8 billion for the development and
    procurement of multi-domain hypersonic weapons and the improvement of
    long-range survivable subsonic weapon systems. These strategic
    investments ensure our Joint Force maintains a decisive edge in
    delivering precise strikes over vast distances to outpace emerging
    threats and support future warfighting concepts.
        Across all domains, we continue to invest in the capabilities and
    technologies that will position the Joint Force to meet the pacing
    challenge of the PRC and the acute threat of a newly aggressive Russia.
    Furthermore, the Joint Force recognizes the importance of the space and
    cyber domains and is focused on those areas promising the largest
    return on investment in the near-term, such as space domain awareness,
    space command and control, space resiliency, cyber security, and the
    Cyber Mission Force. The $143.2 billion FY 2025 budget request for
    research, development, test, and evaluation will enable the Department
    to develop the technology, innovative capabilities, and modernized
    approaches for the Joint Force to gain and exploit positions of
    advantage.
        Nuclear Modernization: In alignment with our overarching strategy
    for Joint Force modernization, the FY 2025 budget underscores our
    commitment to the comprehensive recapitalization of our Nation's
    strategic deterrent. This deterrent not only protects the United States
    but also many Allies who depend on extended deterrence and assurance.
    We are in the midst of a generational change, undertaking the
    modernization of all three legs of the nuclear triad simultaneously
    with the development of the sea-based Columbia-class submarine, the
    airborne B-21 bomber aircraft, and the land-based Sentinel
    Intercontinental Ballistic Missile (ICBM). These systems will form the
    backbone of our Joint Force's ability to maintain a safe, secure,
    effective, and credible nuclear deterrent. Concurrently, we are
    enhancing and modernizing our Nuclear Command, Control, and
    Communications (NC3) systems to ensure they remain secure and reliable
    amidst evolving threats.
        This concerted effort in nuclear modernization is foundational,
    enabling the broader strategic capabilities that underpin our national
    defense. It fortifies our extended deterrence commitments, amplifying
    the strength and cohesion of our global alliances and partnerships. A
    modernized, safe, secure, and effective nuclear triad provides an
    outsized return on investment to assure our Allies, deter aggression,
    and preserve our national security.
        Our investment in nuclear capabilities reflects a judicious balance
    between advancing cutting-edge technologies and phasing out legacy
    capabilities. Nuclear modernization is a critical component of our
    strategy, ensuring the Joint Force remains equipped to navigate the
    complexities of modern warfare and emerging global threats.
        Digital Innovation: The Joint Force is also advancing our digital
    modernization, acknowledging decision advantage will be a key offset in
    future conflicts. The Joint Force remains committed to realizing a
    fully capable Combined Joint All Domain Command and Control (CJADC2)
    environment and leveraging initiatives being demonstrated today in our
    Global Information Dominance Experiments (GIDE). A modernized and
    technologically advanced Joint Force will communicate seamlessly across
    platforms in all domains. This will ensure we quickly identify viable
    paths capable of delivering command and decision dominance. CJADC2 will
    enhance warfighting readiness through improved access to and the
    interoperability of joint data at the strategic, operational, and
    tactical levels. This budget requests over $1.3 billion to develop and
    improve our CJADC2 capabilities.
        With investments in digital innovation, from command and control to
    modeling and simulation, digital modernization can improve all
    Department work, advance intelligence collection, streamline processes,
    and enable better data-informed decisionmaking. The FY 2025 budget
    prioritizes artificial intelligence (AI), investing $1.8 billion in
    research, development, test, and evaluation funds and in operations and
    maintenance funds, highlighting the strategic importance of AI to our
    Joint Force for both the near- and long-term.
        Additionally, this budget allocates $14.5 billion for cyberspace
    activities, supporting the Joint Force's defensive and offensive
    cyberspace operations capabilities and cyber strategy. This funding
    will enable the Joint Force to move at the pace of technology.
    Investments and relationships help the Joint Force accelerate software
    and technology production to scale ideas and move from concept to
    combat capability.
        Munitions: This budget sends a strong signal to the defense
    industrial base through $29.8 billion for munitions and the use of
    multi-year procurement authorities for critical munitions. Russia's war
    in Ukraine and Israel's operations in Gaza highlight the strategic
    nature of how munitions stockpiles directly impact battlefield
    operations. Producing advanced munitions can take years and depends on
    complex production lines with a skilled workforce that cannot be
    started overnight. To ensure the Joint Force is prepared for challenges
    around the globe, we must build out robust production capacity to stay
    ahead of need to address any emerging crisis. This budget continues to
    strengthen the defense industrial base and will support several
    investments to improve its capacity to meet current and future demands.
        This budget prioritizes addressing our pacing challenge, the PRC,
    with procurement of the most relevant munitions--long-range cruise
    missiles, anti-ship missiles, surface-to-air missiles, torpedoes, and
    air-to-air missiles. The Joint Force takes a holistic approach to
    ensure we have the optimal balance of capabilities and capacity
    including hypersonic as well as subsonic, survivable, and large payload
    weapons. We continually manage and assess our stockpiles and
    procurement to ensure we have the munitions that our warfighters need.
        Expanded multi-year procurement authorities for critical munitions
    will continue to enable us to deepen our inventories and decrease
    operational risk. Multi-year procurement authorities are essential to
    proactively address challenges with complex supply chains, long lead-
    time components, obsolescence, workforce shortages, and infrastructure
    shortfalls that must be overcome. These authorities directly support
    the capabilities we need to execute our strategy while managing and
    mitigating risks during crisis and conflict.
        Defense Industrial Base: A strong and robust defense industrial
    base including logistical systems and global supply chains will enable
    the production of technologies and capabilities critical for our
    national defense. To fully modernize the Joint Force, we must provide a
    consistent demand signal to the defense industrial base through clearly
    articulated priorities and resourcing. Doing so activates the defense
    industrial base to expand capabilities and capacity helping to enable
    contract performance and on-time deliveries.
        This budget allocates investments towards revitalizing and
    expanding the defense industrial base, ensuring it is prepared to meet
    production demands required for current and future operations. Over $8
    billion is requested to fund several key defense industrial base
    sectors, including $375 million for microelectronics, $369 million for
    castings and forgings, $193 million for strategic and critical
    materials, $243 million for kinetic capabilities, $3 million for energy
    storage and batteries, $125 million for bio-manufacturing, $4.0 billion
    for the submarine industrial base, and a $112 million investment into a
    skilled industrial workforce. A strong and robust defense industrial
    base contributes to deterrence and provides a foundation for surging in
    the event of crises or conflicts.
                                     trust
        Trust is the foundation of our profession. The Joint Force must
    build upon and uphold the trust in each other, the trust with our
    families, the trust of our elected leaders, and the trust of our
    Nation. I am proud to lead a Joint Force that continually demonstrates
    dedication to the oaths we took to serve our Nation and to the
    professional standards expected by our Nation and its leaders. We
    strive every day to reinforce the trust placed in us, by the American
    people, to safeguard our country's values and interests.
        Our Joint Force leaders have a responsibility to foster a cohesive
    environment where every service member has the opportunity to reach
    their full potential. I am committed to removing barriers to success,
    such as any type of discrimination, harassment, or assault, especially
    sexual harassment and sexual assault. The profession of arms is based
    on trust. We must maintain that trust by serving with integrity and
    professionalism.
        Force Development: Our Soldiers, Sailors, Airmen, Marines,
    Guardians, civilians, and their families are the Joint Force's
    asymmetric advantage against our adversaries. Technology and
    capabilities are important, but the mission cannot be accomplished
    without a professional, organized, and trained Joint Force. The
    proposed budget includes strategic investments in critical areas such
    as advanced training programs, health and wellness initiatives, and
    career development opportunities to ensure our forces are not only
    prepared but also thriving. This includes improved pay to reflect the
    dedication and risks undertaken by our service members, enhanced
    healthcare services, and continued educational benefits for them and
    their families. We also remain committed to supporting spouse
    employment initiatives, career guidance, and licensure reimbursement.
    These investments are a clear signal of our unwavering commitment to
    maintaining the readiness and resilience of our forces.
        Quality of Service and Quality of Life: Our service members and
    their families sacrifice a great deal for our Nation. It is our
    obligation, as leaders, to take care of them and ensure their success.
    Our Quality of Service efforts support and enable our service members
    by providing them the means and capability to hone their warfighting
    skills and to be ready when the Nation calls. Our Quality of Life
    investments support our service members when they are outside of work
    and takes care of their families.
        I am committed to improving Quality of Service and Quality of Life,
    through proper force development initiatives mentioned above, various
    housing initiatives, improved childcare programs, enhanced mental
    health resources, and robust programs to combat sexual harassment and
    sexual assault. The FY 2025 budget dedicates $1.2 billion to sexual
    assault prevention and response efforts, including building a full-time
    workforce of over 2,500 dedicated prevention personnel. We remain
    committed to suicide prevention and this budget allocates $547 million
    to reinforce and expand suicide prevention strategies, ensuring every
    service member feels supported in seeking help. Additionally, this
    budget includes $2.3 billion for construction of barracks, dormitories,
    medical clinics, and childcare facilities as well as another $2.0
    billion for family housing construction and operations to ensure we
    have quality facilities for our service members and their families. It
    is our duty to provide our service members and families with
    comprehensive support and resources for their well-being and success.
        Recruiting and Retention: We must provide the right capabilities,
    training, and education to recruit and retain a talented workforce. To
    be as effective as possible on the battlefield, we must leverage the
    strengths of everyone on our Joint Team. While the Services continue to
    encounter a challenging, but improving recruiting environment,
    retention remains high, indicating that our people are finding
    fulfillment and meaning as they proudly serve their Nation. We can make
    an impact on recruiting by engaging with the public. Only 1 percent of
    our society has served in the military and much of our society is not
    as connected to the Armed Forces as they once were. Our Joint Force and
    our veterans have an obligation to engage in their communities,
    providing an important connection between our military and the society
    that we serve. Whether in uniform or in some other capacity, we all
    have the responsibility to inspire the next generation to serve to the
    benefit of our Nation and our security.
                                   conclusion
        Our Joint Force is the most capable and lethal fighting force in
    the world, and they will defend, deter, and if necessary, fight and win
    our Nation's wars. They are ready to respond to the myriad of
    challenges that currently exist across the globe. Our military strength
    is a crucial element of our national security, and it is most effective
    when used in concert with the full spectrum of our national power.
        The PRC continues its expansion of its military, pursues
    increasingly aggressive actions in the Indo-Pacific region, and
    threatens the international order. Russia remains an acute threat as it
    seeks to impose its imperial order and expand its sphere of influence.
    Continued unrest in the Middle East also represents a challenge to our
    Joint Force, as we withstand and respond to attacks against our forces.
        The FY 2025 budget ensures that the Joint Force can effectively
    address these challenges and all our NDS priorities. I thank Congress
    for its continued support and partnership in our shared mission to
    defend our Nation, protect our citizens, and preserve our way of life.
    This budget request is not just a financial document; it is a clear
    statement of NDS implementation and our collective resolve to face the
    challenges of today and prepare for those of tomorrow. It is a
    commitment to our service members and their families, ensuring they
    have the tools, training, and support necessary to succeed. Given the
    convergence of the five NDS challenges, our Joint Force depends on
    long-term, stable, predictable, and timely funding. We are living in a
    consequential time. There is no time to waste.

        Senator Tester. Thank you for your statement, General
    Brown.
        And there will be probably multiple rounds, but there will
    be 5 minutes per member.
        This is for you, Secretary Austin. The budget request is
    consistent with the cap set forth in the Fiscal Responsibility
    Act; however, the proposed growth is below current inflation
    levels. It does not account for billions of dollars for
    additional requirements identified by the Military Services. As
    has been pointed out by both of you, this is a very dangerous
    time in which we live, in my lifetime, probably comparable to
    the early '60s with the Cuban Missile Crisis.
        So Mr. Secretary, where are you taking risk because of this
    budget cap? I should say, where are we taking risks because of
    this budget cap?
        Secretary Austin. Thanks, Chairman. First of all, our
    budget continues to be strategy-driven. Over the last several
    years, we have worked hard to make sure that we link the budget
    request to the strategy, and that has been, in my view, the
    best approach to constructing the budget. But to meet the caps
    approved by Congress, we had to make some tough but responsible
    choices, and we prioritized near-term readiness.
        As you heard me say earlier, Chairman, we decided not to
    invest in some modernization that would not deliver results
    before 2030, and we invested in our people and our families.
    The kinds of decisions that we had to make were--the tough
    decisions that we had to make were things like fifth- and
    sixth-generation aircraft. But having said that, our budget
    does include, as you heard me say earlier, $143.2 billion for
    RDT&E (Research, Development, Testing, and Evaluation), and
    $167.5 billion for procurement.
        And because we accepted some risk in modernization for the
    out years, we will need to have a growth in the topline in the
    out years to ensure that we can recapture some of the things
    that we weren't able to get into this budget.
        Senator Tester. So let me follow up on that. You talked
    about focusing on the projects that can give you results before
    2030. So that means basically with this budget, what we are
    doing is putting off expenditures into future budget cycles,
    because these projects, after 2030, are projects that will have
    to be taken care of fiscally, correct?
        Secretary Austin. That is correct, Chairman. And our plan
    is to, going forward, invest in those things, but we weren't
    able to do it in this budget. We prioritized near-term
    readiness, and taking care of our people, and I believe that is
    the right approach.
        Senator Tester. Do you believe that in future budgets, if
    we are able to invest in those projects, that we will be able
    to catch up and remain on schedule?
        Secretary Austin. I do, Chairman, if we are provided the
    resources and the growth in the topline in the out years that
    we will ask for, yes.
        Senator Tester. General Brown, you talked about where we
    are today, is there operational impacts from this budget today,
    over the next year, and what impact does this have, say, 5
    years down the road?
        General Brown. For operational impacts for today, because
    of our focus on readiness, I don't see operational impacts.
    Now, as the Secretary highlighted, as we had to defer some of
    our modernization, you think about 5, 6, you know, years; a
    decade from now, there is potential challenges if we don't get
    the additional support in topline in the out years.
        Senator Tester. Excuse me, what kind of challenges are we
    talking about when you say ``additional challenges''?
        General Brown. Well, part of it was deferring some of our
    modernization and ensure, you know--the thing I focus on, as
    Chairman, is ensuring we have both capability and capacity, and
    we have got to make sure we have capability that stays ahead of
    the threat, and then also have capacity to be able to operate
    in many of the areas around the world like we do today. And
    that is where we need to make sure we are working closely
    together on the out years to ensure that we can actually
    continue to modernize and make sure we stay ahead of the
    threat.
        Senator Tester. Okay. Senator Collins.
        Senator Collins. Thank you, Mr. Chairman.
        Mr. Secretary, let me follow up on the Chairman's question
    by asking you a very basic question, and that is, if you had
    your preference, would you be operating under a 1 percent
    increase? In other words, do you think that Congress should
    revisit the 1 percent cap that is imposed by the Fiscal
    Responsibility Act?
        Secretary Austin. Certainly, the cap makes it more
    challenging and forces us to make choices that if we didn't
    have that cap, we obviously wouldn't have to make. So yes, it
    does provide more challenges, but certainly, we have worked
    hard to link our requests to our strategy, and as much of our
    strategy as we can support, we are going to support.
        Senator Collins. Thank you. I want to switch to a different
    issue. On October 25, 2023, that was the darkest day in Maine
    history in my lifetime. 18 Mainers lost their lives, 13 others
    were injured in the worst mass shooting that we have seen. The
    killer, Robert Card, was a Sergeant First Class in the U.S.
    Army Reserve. The Governor of Maine established an Independent
    Commission that has issued an interim report, and that report
    included several very troubling findings, about missed
    opportunities to prevent this tragedy.
        For instance, mental health providers recommended to Mr.
    Card's Army Reserve Unit that, quote, ``Measures be taken to
    safely remove all firearms and weapons from his home.'' Well,
    the Army Reserve Unit took appropriate action to reserve Mr.
    Card's access to military weapons. This recommendation was
    never communicated by the Army to relevant law enforcement
    agencies in Maine.
        We had members of Mr. Card's unit raising alarms with their
    supervisors about what--about their fear that he was extremely
    dangerous. He actually assaulted a fellow soldier. He was
    institutionalized for 2 weeks at a hospital for those with
    mental illness in New York State while he was on Drill.
        We have an Inspector General's Report that is underway to
    look at this more thoroughly. After I receive that report, I
    intend to draft legislation that would require our Military
    Services to report to the appropriate authorities when
    someone--when a Service member poses a threat to him or
    herself, or to others, while protecting the Second Amendment
    Rights of our Service members.
        Would you commit to working with me on such legislation to
    establish formal policies and procedures, so that we can ensure
    that our Military Services share this kind of relevant
    information with law enforcement and with State officials under
    the appropriate State laws?
        Secretary Austin. Thanks, Senator. First of all, this was a
    tragedy, and my thoughts and prayers go out to all those
    affected by this tragedy. The health and welfare of our troops
    is a very important to me, at the top of my mind all the time.
    So is the health and welfare of our community members. And so,
    absolutely, we will work with you to ensure that we have the
    mechanisms to, where appropriate, pass relevant information to
    authorities, and so I look forward to my staff engaging your
    staff on this issue, and going forward.
        Senator Collins. Thank you very much.
        Senator Tester. Senator Shaheen.
        Senator Shaheen. Thank you, Mr. Chairman. Welcome, Mr.
    Secretary, General Brown, and Mr. McCord.
        Secretary Austin, while I am glad that we were able to pass
    the National Security Supplemental, I think all of us were
    relieved that that happened. What we have seen is that Russia's
    industrial base has been able to increase production in part
    due to sanctions' evasions, in part because they are getting
    assistance now from the People's Republic of China, from Iran,
    from North Korea. And we know that Iran now supplies 70 percent
    of Russia's drone capabilities in Ukraine. Those are the same
    drones that they are using in the Middle East to kill American
    Service members and attack us.
        So can you talk a little bit about how the administration
    is seeking to limit industrial base cooperation between Russia
    and China? And what in this budget will help us do that?
        Secretary Austin. Well, we certainly have raised this issue
    in the right channels, Senator. And you are right, prior to--at
    one point, Russia had experienced significant losses because of
    the work that Ukraine in its Forces was doing. They had
    inflicted significant casualties on the Russian Forces,
    destroyed a significant amount of its equipment.
        And so to your point, we saw Russia engaged North Korea,
    who provided quite a bit of munitions and missiles. The drones
    provided by Iran really kind of helped begin to turn the tide
    there for Russia a bit and allowed them to kind of get back up
    on their feet, in addition to them increasing their production
    in their industrial base. But without the help from Iran, North
    Korea, and China, to your point, this probably would not have
    occurred to the degree that it has occurred.
        So we have engaged in the right channels to emphasize our
    serious concerns about PRC (People's Republic of China) and
    others providing this sort of support. As you know, there are
    sanctions that we continue to look at in a number of areas, and
    we revisit those sanctions to ensure that we are being as
    effective as we can. But that continues to be a work in
    progress. And so, this is a whole-of-government effort. And
    again, I think we are engaging in the right channels, but there
    is a lot more work that continues to, need to be done.
        Senator Shaheen. Well, thank you. Clearly, we still have
    work to do. Secretary Austin, the last time I saw you before
    the Armed Services Committee, we talked about the 60 Minutes
    report about anomalous health incidents, and you committed to
    taking a look again at the genesis of those incidents. But one
    of the other aspects of that are the personnel who have been
    affected by those anomalous health incidents. In DOD
    (Department of Defense), the fiscal year appropriations bill
    for DOD in 2024 provided funding specific for payments to
    victims of anomalous health incidents, and there is funding in
    2025 to provide payments as well.
        But the rulemaking that is required to get those payments
    out the door has not yet happened. Will you commit to this
    committee that the Department will work on that, and provide
    the required payments to victims?
        Secretary Austin. Absolutely, Senator.
        Senator Shaheen. And do you know when DOD plans to publish
    its final regulations around this issue?
        Secretary Austin. I will have to get back to you on that. I
    don't have a forecast.
        Senator Shaheen. If you could get back to the committee, I
    would appreciate that. I know that we have a number of people
    who are waiting for help who have been affected.
        General Brown, this budget invests in important
    conventional capabilities, but one of the areas where we still
    have challenges is in the area of disinformation and
    misinformation, so can you talk about how the budget invests in
    our capabilities for cyber, and in the information domain, to
    counter what we are seeing from virtually all of our
    adversaries?
        General Brown. Well, you know, there are areas that we
    invest in, in the information domain, and in particular, there
    is about $14.5 billion in our cyber capabilities for both
    offensive and defensive cyber. There is about $1.8 billion for
    artificial intelligence to better understand how we would use
    that. But I think it is also important that we understand how
    our adversaries would use artificial intelligence against us.
        And it is really, again, how we bring together our data,
    and using our data and having good ways to analyze,
    particularly the misinformation, and ensuring that we stay
    ahead particular in the cyber realm to get information out and
    get the facts out early. And part of this is not only the
    investment in the technology, but it is also the investment in
    the training of our Force to move at the pace of the way
    information moves today. That is something we will continue to
    work on as well.
        Senator Shaheen. Well, thank you. My time is up, but I hope
    we are also working with the Global Engagement Center at the
    Department of State, because clearly this is an area where we
    have an equal amount of work to do. Thank you.
        Senator Tester. Senator Moran.
        Senator Moran. Chairman, thank you. Mr. Secretary, thank
    you for your presence and service. The administration has
    halted a shipment of American-made munitions to Israel, even if
    it is the administration's goal to reach a ceasefire agreement,
    does this not send the wrong message to our ally Israel and
    embolden Iran and Iranian-backed groups? We should not be
    signaling to Iran's enemies that our support is conditional.
    Many of us in this room worked hard to get aid included and
    passed by the House and Senate in the emergency supplemental.
        My questions on this topic are three: Should we be
    concerned that the aid that was included in that recent
    supplemental is in jeopardy of being withheld from Israel? Did
    the Secretary of State, Secretary Blinken, consult with you on
    this decision? And do you agree that halting U.S. assistance to
    Israel emboldens its enemies?
        Secretary Austin. Thanks, Senator. First of all, our
    commitment to Israel's security is ironclad. As you had seen
    from the very beginning, we have flowed billions of dollars of
    security assistance at very rapid pace into Israel, and as you
    just mentioned, with your help, and we are grateful for this,
    just passed the largest ever supplemental appropriation.
        And most recently, on April 13 and 14, you saw us lead an
    unprecedented coalition to defend Israel, as Iran attacked
    Israel with a significant number of drones and ballistic
    missiles. And so we are going to continue to do what is
    necessary to ensure that Israel has the means to defend itself,
    but, that said, we are currently reviewing some near-term
    security assistance, of shipments in the context of unfolding
    events in Rafah.
        Senator Moran. So you agree with the pause, and I mean, you
    were consulted and agree with the pause, Mr. Secretary?
        Secretary Austin. Again, I think we haven't made any
    decisions. We did pause as we reevaluated some of the security
    assistance that we are providing to----
        [Interruption.]
        Senator Tester. I just stopped the clock so that Jerry gets
    his full two-and-a-half minutes.
        Secretary Austin [continuing]. So, we have been very clear,
    Senator, as you know, from the very beginning, that Israel
    shouldn't launch a major attack into Rafah without accounting
    for and protecting the civilians that are in that battle space.
    And again, as we have assessed the situation, and we paused one
    shipment of high-payload munitions. And again, I think we have
    also been very clear about the steps that we would like to see
    Israel take to account for and take care of those civilians
    before major combat takes place.
        We certainly would like to see no major combat take place
    in Rafah. But certainly, our focus is on making sure that we
    protect the civilians. And again, we have not made a final
    determination on how to proceed with that shipment. And I would
    highlight that this shipment doesn't have anything to do with
    the Supplemental Appropriations that you just helped us get.
        And my final comment is that we are absolutely committed to
    continuing to support Israel in its right to defend itself.
        Senator Moran. Mr. Secretary, thank you. I worry about the
    suggestion that support by the United States is conditional.
        Let me turn to a different topic: Legislative Proposal 480,
    the Space Guard issue about the National Guard. The code
    dictates that National Guard equities cannot be withdrawn
    without the consent of a State's Governor. I am informed that
    recently, governors from 53 States and territories wrote you a
    letter opposing this legislative proposal. Would you tell me
    what the Department's thoughts are? Do you consult with
    governors? And based upon this overwhelming feedback, does it
    cause any reconsideration about the legislative proposal?
        Secretary Austin. I have received a letter from the
    Governor, Senator. And most recently, Secretary of the Air
    Force has reached out and engaged the governors to talk about
    this issue and explain the rationale. As you know, when we
    stood up Space Force, we took on units and people that were
    focused on the Space Mission and incorporated those from the
    Air Force, from the Army, from the Navy, incorporated those
    people and units into Space Force.
        This measure will affect, I believe, a small number of
    people. But certainly, you know, I understand the Governor's
    concerns, and we owe it to the Governors to engage them on it.
    And that is why Secretary of the Air Force has recently engaged
    them personally on this issue.
        Senator Moran. I encourage that to occur. Mr. Secretary,
    thank you.
        Senator Tester. Chairman of the Full Appropriations
    Committee, Senator Murray.
        Senator Murray. Thank you very much, Chair Tester. And
    thank you to our witnesses for joining us today.
        Right now, we face a number of serious challenges across
    the globe. That is why Vice Chair Collins and I pushed through
    the gridlock to hammer out and pass a strong National Security
    package that sent support to our allies, especially Ukraine,
    humanitarian aid to civilians, and a message to our allies and
    adversaries alike that America is still strong enough and
    united enough to lead the free world.
        We didn't just pass a bill; we passed a critical test on
    the world stage. And something I don't want anyone to forget:
    The Bill the House eventually passed was essentially identical
    to the one the Senate passed 2 months earlier. However, the
    delay in inaction was not without cost. We and our allies lost
    precious time and resources during those 2 months that we can't
    recover.
        This is similar to the cost we face each time we flirt with
    a Government shutdown, or put the Government on autopilot under
    continuing resolutions. Those situations come with costs. And
    notably, neither China nor Russia faced the threat of a
    Government shutdown, or a CR.
        I am certain all of us agree that democracies are stronger
    than dictatorships, but we have got to prove it. And that will
    take bipartisanship, because as we all know, our work is not
    done.
        We must maintain America's leadership and make smart
    investments to help reduce global conflict and instability,
    which of course keeps our country safe. That means ensuring our
    Military remains the best in the world, supporting the men and
    women in uniform who sacrifice greatly to keep our country
    safe, having our allies' backs, and taking an all-of-government
    approach to keep our country strong and secure.
        We are working with tight fiscal constraints, but Secretary
    Austin, it is so important we make sure not only that your
    Department has the resources needed to execute our National
    Defense Strategy, but that your counterparts across government
    also have the resources they need to keep our country safe.
        The 1 percent increase in funding provided for fiscal year
    2025 under the caps is as inadequate for nondefense spending as
    it is for the Department of Defense. Having just worked
    together to write and pass 12 bipartisan bills for fiscal year
    2024, we all know this very clearly.
        So as members talk about how we might increase investments
    to better meet our defense needs, we cannot ignore our needs
    here at home as well. When it comes to additional resources
    above the caps, which the Vice Chair and others have mentioned,
    I am going to insist on parity for nondefense spending to make
    sure we are providing for our children and families, keeping
    them safe.
        After all, our safety also depends on our diplomatic corps,
    which works around the clock to prevent and end conflict. Our
    counterterrorism efforts, and the law enforcement personnel
    working to identify and disrupt threats, our public health
    system and pandemic response efforts, the officials enforcing
    our sanctions to help choke off financial resources for
    dictators like Putin, our work countering the influence of the
    Chinese Communist Party, ensuring we remain on the cutting edge
    of research and manufacturing, and so much more.
        So, with that in mind, Secretary Austin, can you talk about
    your work with your counterparts across government, whether
    that is at State, or commerce, or so many other agencies, and
    how their efforts assist the work you do to keep our country
    safe and factor into our National Defense Strategy?
        Secretary Austin. You have heard a number of secretaries
    say before, Chair Murray, that if we don't fund State and
    others to the right level, then we are going to need more
    bullets because they do great and important work to move things
    towards greater stability and security in all regions of the
    world. And so it is this whole-of-government effort, this
    interaction between departments in support of our overall goals
    and objectives that really is what causes us to be effective.
    So, it is important that they do get supported.
        Senator Murray. Thank you. And as the Chair of our
    committee knows that includes our veterans and the challenges
    that they are having right now with the VA (Veterans Affairs)
    budget.
        Mr. Secretary, on the $60 billion that Congress
    appropriated to support Ukraine and its fight against Putin, a
    package this committee worked on for months, as this war
    continues now into its third year, how is this funding being
    used? What improvements are we seeing on the frontline?
        Secretary Austin. Well, it is still very early on, as you
    know. It does take time to get some of this capability in. But,
    we, in anticipation of the potential of getting the
    supplemental approved, we forward-positioned some things, some
    critical things like air defense interceptors and artillery
    munition so that if it were approved, we would be able to
    rapidly move those things in, in support of Ukraine. And we are
    doing that.
        And you know, I talk to my counterpart in Ukraine every
    week. I just talked to him yesterday, as a matter of fact, in
    checking on, how that is going, what his most critical needs
    are. And I think, again, this is going to be very, very
    helpful. But to your point, it is hard to buy back time. But
    given that, I think that without this help, Ukraine would have
    a very tough time defending against what is a superior force
    with the Russians.
        Senator Murray. And is our inventory here at home being
    replenished?
        Secretary Austin. This supplemental will certainly help in
    a major way in that regard. Want to make sure that we do have
    the ability to replenish our stocks. And, as we have drawn down
    some of our stocks and provided weapons and vehicles to
    Ukraine, we will replace those weapons with newer models. And
    all of that work flows through our industrial base, and it will
    affect some 30 different States in the country. And that
    creates good jobs, good-paying jobs for Americans. And we
    remain excited about that.
        Senator Murray. Thank you. Thank you very much, Mr.
    Secretary. Thank you, Mr. Chairman.
        Senator Tester. Senator Boozman.
        Senator Boozman. Thank you, Mr. Chairman and Vice Chair
    Collins for this important hearing. Secretary Austin, and
    General Brown, thank you both for your service, I appreciate
    your leadership and unwavering commitment to our Service
    members, and very importantly, to their families.
        Secretary Austin, the National Defense Strategy underscores
    the need to prioritize interoperability and enable coalition
    with enhanced capabilities. I remain dedicated to working with
    the Air Force to ensure Ebbing Air National Guard Base in Fort
    Smith, Arkansas, becomes the premier F-35 Pilot Training Center
    in the future. It is important that this mission begins on time
    and with the necessary resources. Secretary Austin can you
    speak to how this mission will strengthen warfighting
    capabilities and create an enduring advantage with our allies
    and partners?
        Secretary Austin. Well, this clearly provides the
    capability for us to enhance our interoperability, Senator. And
    it is a great platform, great capability, the training is
    always first-rate because of the commitment of our trainers.
    And again, there are a lot of countries who want this
    capability, and having the ability to train to standard in
    country is absolutely important.
        And so it contributes to the overall readiness of the
    combined Force. So you know, interoperability means having the
    right policies and procedures but it also means the ability to
    work with, together with our comrades in other countries.
        Senator Boozman. Right.
        Secretary Austin. And so this face-to-face work that is
    conducted at places like this I think is critical.
        Senator Boozman. Thank you, Mr. Secretary.
        General Brown, you and I recently visited Camden, Arkansas,
    where we toured a munitions production facility, and saw the
    urgent need for our defense industrial base to increase
    capacity and replenish our stock piles. The passage of the $95
    billion Security Supplemental bill proves that when we provide
    assistance to our allies and partners we strengthen our defense
    industrial base as well. This fiscal year Congress also
    approved multiyear procurement for six missile programs for the
    first time.
        General Brown, what impact will multiyear procurement
    authority have on the defense industrial base, and specifically
    munitions production?
        General Brown. Well, when I think about multiyear
    procurement, what it does is it provides opportunity for
    consistency, and that consistency is a for us to be able to
    provide a consistent demand signal to industry so they can
    actually get a workforce, have a supply chain, and know what to
    forecast for over several years.
        I think that is going to help us in the long run, because
    that consistency will help build trust, it will drive down
    cost, and it will ensure we get capability delivered on time.
    If we have inconsistency it is going to, you know, decrease
    that trust, increase the cost, and then also increase how long
    it is going to take to get the capability in the hands of our
    warfighters. So the multiyear procurement, the National
    Security Supplemental that will invest in our defense
    industrial base is hugely important, not only for our allies
    and partners but it is just as important for our Force as well.
        Senator Boozman. Good. And I appreciate you getting out and
    about, I know you are traveling a lot, you know, visiting these
    places, and again, I think that is really important, and very
    well received.
        Secretary Austin I appreciate your continued focus in
    taking care of people, the budget calls for a 4.5 percent pay
    increase for Service members, and annual increases to housing,
    and subsistence allowances, the Quadrennial Review of Military
    Compensation is due to be completed by January 2025. In the
    meantime there have also been multiple recommendations to
    enhance pay flexibility for Service members including incentive
    pay for certain career fields, and targeted raises for junior
    enlisted Service members. Secretary Austin; in your opinion,
    where would pay flexibility be most effective if implemented?
        Secretary Austin. Well, first of all let me thank you for
    the support that you have given us to date. As you pointed out,
    we are asking you for 4.5 percent pay raise in this budget
    request, Senator, but to take you back a bit, in 2023 we asked
    you for a 4.6 percent pay raise, and you supported us on that.
    And in the fiscal year 2024 budget we asked you for a 5.2
    percent pay raise, and that is the largest pay raise in 20
    years.
        And so when you add those together, I think that that is a
    pretty meaningful increase in compensation. My goal is to
    provide--reduce the costs on troops and families, and provide
    more resources. And so anything that we do in terms of these
    types of actions, to answer your question, does reduce the
    strain on our troops and families, whether or not, you know, we
    can do that going forward certainly any recommendation that is
    being that is being made we will have to do an analysis in
    terms of how it affects, you know, the budget now and into the
    future, and so as you propose different things, we certainly
    look to work with you, and provide you that analysis.
        Senator Boozman. Thank you, sir. Thank you, Mr. Chairman.
        Senator Tester. Thank you, Senator Boozman. Senator Schatz.
        Senator Schatz. Thank you, Chair and Vice Chair.
        Secretary, thanks for being here. I want to talk to you
    about the Red Hill closure and remediation. Once the decision
    was taken to shut down Red Hill that part went relatively
    smoothly, and was ahead of schedule, and then there is the
    whole enterprise of the new concept of operations as it relates
    to fuel in the Pacific. I am going to set that aside for the
    moment.
        Because the thing that the community is working on and
    thinking about the most is long-term health impacts and long-
    term environmental impacts, and what, of the appropriated money
    that we provided to the Department, is allocated for that? Now,
    we just got a brief, and so we have some broad categories for
    what I think is called ``community response'', but I would love
    it if you could just articulate both at the conceptual level,
    and in as granular a manner as you can. What you are planning
    to do with the remainder of the money as it relates to making
    sure that none of that petroleum eventually makes its way back
    into any of those aquifers? And that anyone who has been harmed
    by ingesting petroleum product gets taken care of by the
    Department?
        Secretary Austin. Well, thanks Senator Schatz. As you
    mentioned, once the defueling was complete, you know, then we
    stood down the Red Hill taskforce, and then stood up a
    taskforce that the Navy is now in charge of. And it is charged
    with environmental remediation. And you know, I have had
    personal conversations with both the leader of the taskforce,
    and most importantly, the Secretary of the Navy, on how
    important this is, and they are committed to ensuring that they
    do the right things to make sure that we get this right going
    forward.
        We owe it to the members of the community to ensure that we
    do in fact do this. In terms of specific amounts of funds that
    are allocated to each segment of this, I will have to take that
    for the record, and come back to you on that, sir.
        Senator Schatz. That is fine. And you know, we just got
    briefed on it yesterday, and it is still a bit of like, you
    know, big pots of money categories, $95 million here, $32
    million there, $62 going to the taskforce. So we don't even
    know what these numbers mean but I think, you know, the
    community is asking me what is happening with the money. It has
    to be obligated by the end of this fiscal year.
        And so time is short. So if we can get fidelity on that, it
    doesn't have to be with you, but it can be any member of your
    team, that would be very, very----
        Secretary Austin. The power we had, sir, with----
        Senator Schatz [continuing]. Hopeful, yes.
        Secretary Austin [continuing]. Your permission, I would
    just like to thank you and the delegation for your continued
    support. Without that we probably wouldn't have the adequate
    resources to do the things that are going to need to be done
    going forward here.
        Senator Schatz. Thank you. General Brown, you know the
    amount of aid that this committee can provide is finite, and
    given that the Indo-Pacific is the priority theater, I am going
    to say this somewhat less diplomatically than my prepared
    question. What keeps you up at night? What are the unfunded
    priorities that you think we really need to take a hard look at
    in the Indo-Pacific?
        General Brown. Well, the things that I stay focused on, and
    I will just tell you, I am very confident in our Joint Force,
    so there is not much that keeps me up at night, but I do stay
    focused on ensuring we have the capability and capacity for our
    Joint Force to execute what the Nation asks.
        And so it is the modernization things that we highlighted
    earlier in this hearing that we had to defer as we--because of
    the Fiscal Responsibility Act. And so I want to make sure that
    we actually have that capability and capacity to be modernized.
    It is also the multiyear procurement that we also spoke about
    on munitions.
        I also want to have a strong defense industrial base, so we
    can produce those munitions and those capabilities, so we don't
    have a fair fight. I want to have an unfair fight, where we
    have the advantage and do that, not only with our Joint Force,
    but also with our allies and partners.
        Senator Schatz. This is a little bit outside of our
    committee, but a lot of us are on the MILCON (Military
    Construction) Committee as well. You know, the other thing I
    would flag is, overseas MILCON is never the most exciting thing
    for a Member of the United States Senate to fund, but it is
    really essential in the Indo-Pacific theater, and then
    certainly in the State of Hawaii a lot of the DOD's assets,
    bases, and installations, and everything else, are sitting on
    really, really old infrastructure.
        So that is the other thing that is less exciting to fund
    sewer systems, water systems, electrical redundancy, and all
    the rest of it. But we are not capable if we don't have those
    things operating well. So let us add at least elevate it even
    though, you know, it is not exactly the kind of thing that you
    do a ribbon-cutting for, if you are a good politician. So thank
    you.
        Senator Tester. And all those things cost money, and it is
    another reason we need to revisit the cap. Thank you, Senator
    Schatz.
        Senator Schatz. Thank you.
        Senator Tester. Senator Capito.
        Senator Capito. Thank you, Mr. Chairman. And thank you all
    for being here, for your great service to our country.
        Secretary Austin, I am a little concerned--very concerned
    about the credibility of the administration's Deterrence
    Policy. When I see President Biden's messaging to Putin, and to
    Iran, and to the Houthis, and other Iran-backed groups, I just
    see President Biden saying, ``don't'', and we have had, you
    know, attacks--people obviously not adhering to that. I am
    concerned that we are significantly eroding our deterrence by
    setting these sorts of ambiguous boundaries and letting our
    adversaries kind of walk over us sometimes. So what steps are
    you and the President taking to establish a stronger, more
    credible deterrence against these threats from our adversaries,
    besides just ``don't''?
        Secretary Austin. I take it you speaking about the Middle
    East specifically?
        Senator Capito. Yes. Yes, sir.
        Secretary Austin. So you know, we had a number of goals at
    the very beginning of this crisis. And one of them was to
    protect our people, and both our troops, and civilians in the
    region. Another was to recover the hostages; another was to
    ensure that we are doing everything that we can to support
    Israel in its efforts to defend itself. And then, finally, it
    is our goal to ensure that we contain this conflict in Gaza,
    and not have a regional conflict breakout.
        So you saw us early on, deploy some pretty substantial
    capabilities into theater to discourage people from trying to
    do that, from trying to blow this into a regional conflict. And
    I think even though there has been dust-ups throughout the
    region, we don't see a regional conflict at this point,
    Senator.
        So if you take a look at the attacks that were being
    conducted against our troops, you recall that in January we
    saw--leading up to January, we saw a number of attacks against
    our troops, and our bases, and you saw us in February conduct a
    pretty major strike in--that the President authorized in both
    Iraq and Syria.
        Since that time, we have seen two incidents, and we
    attribute those actions to probably rogue elements. So in that
    case, they have been deterred from attacking our troops. But in
    terms of Iran and its actions in the region, Iran continues to
    present a threat to the region, and that is something that we
    are going to have to remain focused on, for sure.
        Senator Capito. Let me ask both of you a question here
    about the reports that of withholding weapons. We all voted,
    many of us, I certainly did, and was pleased to support the
    bill, by 79 to 18, to reinvigorate not just our own defense
    industrial, but also to give aid to several other entities.
    What is the status of withholding our weaponry that we voted to
    send to Israel? Are we doing that? And why are we doing that.
        Secretary Austin. Again, you know, our commitment to Israel
    is ironclad, Senator, and you know, as I said earlier, since
    October 7, we have flowed in billions of dollars worth of
    security assistance.
        Senator Capito. Right.
        Secretary Austin. And as you just mentioned, you just
    passed the largest supplemental in history for--that is focused
    on Israel. And we are going to continue to do what is necessary
    to support Israel, you know, currently----
        Senator Capito. Are those reports false, then, that I am
    reading?
        Secretary Austin. No. We are currently reviewing some near-
    term security assistance shipments in the context of the
    unfolding events in Rafah.
        Senator Capito. So we are withholding our shipments of
    weapons predicated on the strategy that Israel is employing and
    going into Rafah; is that the bottom line here?
        Secretary Austin. We have not--again, we are assessing. We
    have not made any final decisions on this yet, but, to answer
    your question, yes----
        Senator Capito. Yes.
        Secretary Austin [continuing]. We are--there are some
    things that we are taking a closer look at.
        Senator Capito. Okay. Then that is an answer that is--well,
    thank you for clarifying it. I wouldn't say I agree with it.
    But thank you for clarifying it.
        General Brown, let me ask you. This is one of the things
    that come up on the refortification of our own munitions. How
    do you see that now, that we have passed this, and the
    President has signed this?
        General Brown. Well, it is going to put us on a much better
    path. And it is not only what the supplemental, but I would
    also say the fiscal year 2024 National Defense Authorization
    Act, which allowed for multiyear procurement for six systems, I
    would look to actually expand that in the future on a multiyear
    procurement, because what that will do will provide levels of
    consistency for our Defense industrial base so they can
    actually work with the workforce facilities, supply chains, and
    allow us to make sure we have the capacity from a munition
    standpoint.
        Senator Capito. So you are convinced that we are on a glide
    path to renew our munition supplies to a satisfactory level for
    you----
        General Brown. We are on a good path. One of the pieces I
    would also add, though, you know, getting a budget on time is
    actually really important to actually provide that level of
    consistency so we can write contracts and give our defense
    industrial base the confidence and the trust that they can
    invest and have that workforce and supply chain.
        Senator Capito. I think we all hear you. Thank you.
        Senator Tester. Senator Coons.
        Senator Coons. Thank you, Chairman Tester, and Vice
    Chairman Collins, and thank you to the leadership of this
    committee, the Full Committee Chair and Vice Chair for
    navigating some very challenging dynamics and getting,
    ultimately, delivered to our warfighters, and to all the
    different departments and agencies that were supported through
    the supplemental, a critically needed additional funding. As a
    new member of this subcommittee, I look forward to working with
    you.
        I have got two questions I would like to focus on. As you
    heard Chair Murray in her, I thought, compelling commentary, we
    need to coordinate between defense, diplomacy, and development
    to be as effective as possible, particularly in places that are
    on the margins of the main conflicts currently, appropriately
    occupying most of your time.
        I Chair the subcommittee that funds the State Department
    and USAID (United States Agency for International Development).
    Five years ago, President Trump signed into law the Global
    Fragility Act, which Senator Graham and I, and two dozen other
    Senators co-sponsored and worked on, and it is a simple
    proposition. It requires coordination between DOD, USAID, and
    State in fragile countries that are not yet failed states, not
    yet scenes of active combat, but where we might implement the
    same sort of strategy we pursued in Colombia over a long period
    of time, to prevent a fragile state from becoming a failed
    state.
        One of my concerns has been the genuine lack of DOD
    engagement in Global Fragility Act implementation. I understand
    you have a lot on your plate, but there are several identified
    nations and areas of focus under GFA (Global Fragility Act).
    One of them happens to now be the subject of, I think, renewed
    intense engagement, Coastal West Africa.
        I have been to every country in the Sahel, I have visited
    the relevant Air Base in Niger that is now being occupied by
    both Russian and American troops, as we are likely being forced
    to leave, Niger. I am very concerned about the security and
    stability situation in the region. And our partners, Ghana and
    Cote d'Ivoire, with whom we have trained and prepared for quite
    some time, have been asking now for years for additional
    security assistance.
        Mr. Secretary, I would be interested in your input on what
    DOD's plans are for taking advantage of this existing structure
    for how we can coordinate planning between the diplomats, the
    development professionals, and the security professionals of
    our Government and our allied partners in an area that is newly
    of some focus, Ghana, Cote d'Ivoire, Togo, Benin, because of
    the very real threats of violent extremist organizations, of
    Wagner, of Jihadists in the Sahel threatening these partner
    nations. How do we plan to use this tool, sir?
        Secretary Austin. Well, first of all, we are fully
    committed to supporting the Global Fragility Act, and you are
    right that area that you mentioned is of increased importance.
    You mentioned that we were forced to leave Niger, we will leave
    Niger, Senator, but as you know, what we do in order--terrorism
    thrives in ungoverned spaces.
        Senator Coons. Yes.
        Secretary Austin. And what we typically do is to try to
    help countries develop their own capability to control their
    sovereign spaces. But you have got to have a reliable partner.
    And in this case, you know, the----
        Senator Coons. Sir, we could spend a lot of time on the
    coups in Mali, and Burkina, and Niger, and how that happened
    and why. Not to interrupt, I don't mean to be rude. I have very
    little time, sir. I agree with you that we have an unreliable
    partner in Niger. I visited those facilities. I regret that the
    significant investment that we made there will not likely
    redound to our benefit.
        I just was wondering how you see prioritizing partnering
    with State and AID in developing security plans for Coastal
    West Africa, if I might, sir?
        Secretary Austin. Yes. So what I was going to say next, is
    that you are right, this is an important area, and we are
    working with State currently to address those places that you
    mentioned, and potentially develop the capability to have a
    presence there, and partner in a more significant way with a
    couple of those countries. And that work is ongoing now.
        Senator Coons. Well, I look forward to consulting with you
    both about this, because I think there is an urgency to it,
    from a security perspective.
        Secretary Austin. I would agree.
        Senator Coons. Chairman, this is what keeps me up at night,
    is a number of very capable foreign terrorist organizations
    that see this. If I might, Mr. Chairman, ask one last quick
    question?
        Senator Tester. Damn quick.
        Senator Coons. Damn quick. I have also recently visited in
    Jordan and Iraq, and I am very concerned about the threat to
    our Forces, posed by low, slow--exactly, the low technology
    drones that Iran is providing to Russia at scale. I see that
    there is a specific counter-UAS (Unmanned Aerial System) Fund
    in this year's budget. Just briefly speak to the importance of
    having flexible funding and our ability to develop and deploy
    quickly state-of-the-art defenses to this evolving threat to
    our troops. Thank you, sir.
        Senator Tester. Senator Baldwin.
        Senator Baldwin. Thank you, Mr. Chairman.
        Mr. Secretary, the Army continues to budget for tactical
    wheeled vehicles at rates well below the minimum sustaining
    rates in industry requires to keep production lines open, and
    further the Army is risking a gap in production by
    transitioning the Joint Light Tactical Vehicle to a company
    that has no experience manufacturing this platform. So I am
    worried that the Army's management of these programs and their
    associated industrial base--and the Army is due to complete a
    strategy for the acquisition of the platforms this summer, but
    I am concerned about the Army's ability to grade its own work,
    frankly.
        The tactical wheeled vehicle sector is an important part of
    the overall industrial base, and our National Security
    Strategy. So Mr. Secretary, can I count on sound decisionmaking
    from DOD on vehicle programs? And further, will you engage the
    Office of the Assistant Secretary of Defense for Industrial-
    Based Policy in reviewing the Army's management of the tactical
    wheeled vehicles, and providing recommendations?
        Secretary Austin. You can. And I will. And there is no
    question that Wisconsin's Industrial Base is critical, and so
    we want to make sure that we continue to do the right things to
    keep the--and make sure we have the capacity to address our
    needs going forward, so yes.
        Senator Baldwin. Okay. Wisconsin's Industrial Base is
    something, of course, that is always on my mind. And so I am
    going to shift to our shipbuilding. Mr. Secretary, we were all
    troubled by the 75-day shipbuilding review that found major
    delays among most of the shipbuilding programs. And I was
    surprised to hear that the Navy estimates that the Frigate will
    be delayed by as many as 36 months. As you and I discussed last
    year, I worked to secure funding for the industrial base and
    workforce development programs that would support growing the
    skilled workforce that we need to sustain robust production of
    the Frigate. I am disappointed that it took the Navy 15 months
    to obligate the fiscal year 2023 funds.
        Mr. Secretary, will you explain to the committee the
    importance of continuing to fully fund the Frigate Program, and
    its associated workforce development needs on a consistent
    annual basis? And will you commit to working with me to ensure
    that the Navy works diligently and responsibly to execute these
    funds?
        Secretary Austin. As you know, this budget request,
    Senator, does include requests for fully funding the fiscal
    year 2025 Frigate. But to your point in terms of making sure
    that we have the workforce that can provide the capacity that
    we need to stay on track, and keep up with the demand, that is
    critical. So the industrial base needs to be able to, not only
    recruit, but retain the talent that is needed to do that. And
    we have to continue to invest in that. And again, we have to
    pick up the pace. And so we will continue to work with industry
    leaders to do--in fact, do that.
        And I have met with some industry leaders and talked about,
    you know, what we are doing with the resources that are being
    provided to invest in the industrial base, and we will continue
    to do that going forward. And I think they are doing some
    things on their own to invest, but we have to work together in
    a more meaningful way to increase capacity.
        Senator Baldwin. Thank you. Thank you.
        Senator Tester. Senator Graham.
        Senator Graham. Thank you. Rather than getting in a fight
    about the Navy, why don't we agree with the following; that the
    Battle Force Ship Assessment Requirement Report issued said
    that we need 381 manned ships, 134 unmanned, for a total fleet
    size of 515, I think by 2043.
        General Brown, is that right?
        General Brown. Senator, I am not familiar with the complete
    study. But I do know we need additional capability.
        Senator Graham. Okay. So I am just assuming the people who
    issued this knew what they were talking about, we are on track
    to have 294 ships by 2030 under the budget proposal, is that
    right, Secretary Austin?
        Secretary Austin. Right, 291----
        Senator Graham. Okay. Yes. Okay.
        Secretary Austin [continuing]. 29 and----
        Senator Graham. Yes, right. So we are at 293 and 2030, we
    are going to have 294. There must be a lot of shipbuilding
    between 2030 and 2040. The problem is money. It is not your
    fault, I am not blaming anybody, I think this committee ought
    to look at an OCO (Overseas Contingency Operations) account, if
    you believe the Navy is essential to deterring China, that to
    come up with a sustainable plan to get our Navy in shape to
    deter war with China and other places, I think we got to look
    at sort of modernization OCO, and I want to have a bipartisan
    discussion about, to give you the ships and the things you need
    to win the wars we hope we never have to fight, by deterring
    them.
        So let us go to Ukraine right quick. General Austin, you
    said that Ukraine is a vital national security interest to the
    United States. How that ends, do you agree that if we lose in
    Ukraine, pull the plug on Ukraine, we will send a signal of
    weakness?
        Secretary Austin. That is right.
        Senator Graham. Yes.
        Secretary Austin. That is right, Senator. I agree with
    that.
        Senator Graham. And General Brown, I am sure you agree too.
        General Brown. I do agree.
        Senator Graham. I totally agree, there are people on our
    side, Senator Collins will tell you, we hear from all the time.
    Just, you know, it doesn't matter, pull the plug on Ukraine.
    With all due respect, you are wrong, in my view. So I am going
    to keep supporting Ukraine.
        Now, you just confirmed that we are delaying transfer or
    stopping transfer of certain weapons, like 2,000-pound bombs to
    Israel; is that correct, Secretary Austin?
        Secretary Austin. What I said, we are assessing, you know,
    where we are right now?
        Senator Graham. Well, the media reports that it happened,
    are they incorrect?
        Secretary Austin. That we have made a decision to----
        Senator Graham. Yes.
        Secretary Austin. Again, we have made no decisions, we are
    assessing.
        Senator Graham. Are you worried that if you make a decision
    to deny weapons that Israel say they need, that it would send a
    signal to Hamas and Iran to keep pushing?
        Secretary Austin. Senator, we want to make sure that we are
    providing the right kinds of weaponry.
        Senator Graham. Okay. Would you have supported dropping the
    atomic bombs on Hiroshima and Nagasaki, General Brown, to end
    World War II?
        General Brown. Well, Senator, I think just based on the
    situation where----
        Senator Graham. Well, we know. I mean it has happened, we
    know, I am not asking you, they did it. Do you think that was
    disproportionate?
        General Brown. It was definitely a----
        Senator Graham. Well, do you--in hindsight, do you think
    that was the right decision for America to drop two atomic
    bombs on the Japanese cities in question?
        General Brown. Well I will say it stopped the world war.
        Senator Graham. Okay. Let us say we had--do you agree,
    General Austin, if you had been around, would you say drop
    them?
        Secretary Austin. You know, I you, I agree with the
    Chairman here----
        Senator Graham. I mean, if we go back in time, says, hey,
    we got two atomic bombs, should we drop them, what would you
    say?
        Secretary Austin. Well, you know, I think the leadership
    was interested in curtailing the----
        Senator Graham. What is Israel interested in? Do you
    believe Iran really wants to kill all the Jews if they could,
    the Iranian regime?
        Secretary Austin. They have----
        Senator Graham. Do you believe Hamas is serious when they
    say we will keep doing it over and over again. Do you do you
    agree that they will if they can?
        Secretary Austin. I do and (crosstalk)----
        Senator Graham. Okay. Do you believe that Hezbollah is a
    terrorist organization, also bent on the destruction of the
    Jewish State?
        Secretary Austin. Hezbollah is a terrorist organization.
        Senator Graham. Okay. So Israel has been hit in the last
    few weeks by Iran, Hezbollah, and Hamas, dedicated to their
    destruction, and you are telling me you are going to tell them
    how to fight the war, and what they can and can't use when
    everybody around them wants to kill all the Jews, and you are
    telling me that if we withhold weapons in this fight, the
    existential fight for the life of the Jewish State, it won't
    send the wrong signal.
        Do you still think it was a good idea, General Austin, to
    get out of Afghanistan?
        Secretary Austin. I support the President's----
        Senator Graham. Yes, I think you do. I think it was a
    disastrous decision. If we stop weapons necessary to destroy
    the enemies of the State of Israel at a time of great peril, we
    will pay a price, this is obscene, it is absurd. Give Israel
    what they need to fight the war, they can't afford to lose.
    This is Hiroshima and Nagasaki on steroids.
        Senator Tester. Senator Murphy. You are clear. Senator
    Murphy.
        Senator Murphy. Thank you very much, Mr. Chairman, great to
    see you both, thank you for your service to the country. It is
    pretty stunning to me how this country and our allies fail to
    learn recent history lessons. Those recent history lessons in
    both Afghanistan and Iraq, tell us that there are substantial,
    grave limitations to the ability of military force to eliminate
    a terrorist threat.
        In fact history tells us that the application of
    overwhelming military force can, in fact, grow terrorist
    threats, not shrink them. Mr. Secretary, you have said today
    that Israel has the right to defend itself, the United States
    supports Israel's right to defend itself. I agree. But if
    Israel's strategy is making it more likely, not less likely,
    that future terrorist attacks will occur, then it is not an
    effective strategy.
        And so it is all well and good to get angry about a
    conversation the United States is having with Israel over the
    right strategy to defeat terrorism, but we have lots of
    experience in failed strategies. The National Intelligence
    Estimate released just earlier this year said this, that the
    Gaza crisis has galvanized Violence by a range of actors around
    the world, and while it is too early to tell, it is likely that
    the Gaza conflict will have a generational impact on terrorism,
    a generational impact on terrorism.
        Both al-Qaeda and ISIS (Islamic State of Iraq and Syria),
    inspired by Hamas, have directed supporters to conduct attacks
    against Israeli and U.S. interests. Here is my question, how do
    we apply the lessons that we learned in Iraq and Afghanistan,
    as a means of helping Israel understand how to defeat Hamas,
    and what is your assessment of whether this campaign is in the
    long run going to decrease the ability of Hamas or follow-on
    organizations to recruit and retain strength, and the ability
    to hurt Israel and the United States?
        Secretary Austin. Thanks Senator, we said all along that
    Hamas does not equal the Palestinian people, they are not one
    and the same. And what we learned to your point, key lesson
    there is that you have to protect the people, the civilians in
    the battle space, otherwise you create more terrorist going
    forward.
        So it is not only a moral imperative, but it is also a
    strategic imperative that that you protect civilians, and the
    two aren't mutually exclusive, you can do both. And we know how
    to do that, and so in terms of the lessons learned, the kinds
    of things that we would endeavor to pass along, those are the
    things that we continue to have a dialogue on.
        But you know, there have been far too many, far too many
    civilian casualties in this battle space, and I think we should
    do everything possible to ensure that that we are protecting
    the civilians and providing for their welfare, humanitarian
    assistance.
        Senator Murphy. I think you are right that there is a
    strategic and a moral reason to care about the number of
    civilian casualties in Gaza, even if you don't care about the
    moral consequences of 13,000 children dead, you should care
    about the strategic consequences of providing continued
    bulletin board recruiting material to the very organizations
    that we are trying to destroy.
        Mr. Secretary, let me do a hard turn here on a subject
    really important to U.S. national security, but also to my
    State. As you know this budget downgrades our commitment to
    building Virginia Class Submarines from two to one a year. We
    made a big mistake in the 1990s when we hollowed out the
    submarine industrial base. We went from having 12,000 employees
    at electric boat down to about 1,500, and it took us a decade
    or more to scale back up when we realized we really needed
    these submarines.
        How can we look at the request for only one Virginia Class
    Submarine in fiscal year 2025, as anything but a pretty
    enormous step back for our industrial base? I am really worried
    about our ability to be able to deliver what we know we need,
    which is two Virginia Class Submarines, and keeping the
    Columbia Class on time. I just worry that you can't do that if
    you take this big, even if it is just a 1 year, but a big step
    back in commitment to the Virginia Program.
        Secretary Austin. Thanks, Senator. So the choices are to
    increase the backlog by putting more demand on the system, or
    invest more in the industrial base, and that is the approach
    that we have taken. We asked you for in 2023 and 2024 we asked
    you for $1.9 billion to invest in the industrial base, sub-
    industrial base. For this budget, we are asking for $4 billion.
    The Supplemental gives us $3.3 billion, and Australians are
    also investing in the submarine industrial base, our submarine
    industrial base.
        So as I have talked with industry leaders, you know, we
    have talked about how we go about recruiting more people,
    increasing strengths in the supply chains, and so that work is
    ongoing and needs to be done, but we have to increase the
    capacity. And I know there is argument both ways, in terms of
    the demand versus investing in the capacity, but they believe,
    and I believe that that we will get there, but we just need to
    do more in terms of capacity, so.
        Senator Murphy. I appreciate that $4 billion investment, it
    is significant, but that has to be an immediate pathway to get
    us back on track to be building those two Virginia Classes a
    year. Look forward to working with you on it.
        Thank you, Mr. Chairman.
        Senator Tester. Senator Hoeven.
        Senator Hoeven. Thank you Mr. Chairman.
        Mr. Secretary, do you believe that Israel has to fully
    defeat Hamas so that they don't come back and have another
    attack like October 7?
        Secretary Austin. I do believe that Hamas has to be
    defeated, yes. And the goal of the Israeli leadership, as
    stated by them, is to destroy Hamas.
        Senator Hoeven. Okay. Then if they need to be fully
    defeated, then won't giving them precision weapons like
    Boeing's joint attack--direct attack munitions, and small
    diameter bombs help them fully defeat Hamas with less
    collateral damage, with less impact on civilians. Those
    precision weapons will help them fully defeat Hamas with less
    impact on the civilian population in Gaza, so why wouldn't we
    go ahead and get them those weapons just as fast as we can?
        Secretary Austin. I tend to agree with you, you need
    precision-guided munitions of the right type. And that is why
    we just recently provided small diameter bombs to Israel.
        Senator Hoeven. But clearly it was the intent of Congress
    to get Israel that assistance, and so we are watching very
    closely that you get that to them as expeditiously as possible,
    so they can fully defeat Hamas, so Hamas doesn't regenerate and
    do the same kind of attack that they did on October 7; wouldn't
    you agree with that?
        Secretary Austin. And I would also agree with that and I
    would also agree with the point that we need to do everything
    we can to protect civilians in the battle space. So that
    precision that you talked about is really, really important, so
    some types of munitions are better suited than others, but we
    really would like to see that that begin to happen in terms of,
    you know, fewer casualties, fewer civilian casualties, and more
    precise----
        Senator Hoeven. Do you agree or not that we need to get
    them the assistance to fully defeat Hamas; do you agree with
    that or not?
        Secretary Austin. And we have been doing that from the very
    beginning.
        Senator Hoeven. Do you agree with that, or not?
        Secretary Austin. I do.
        Senator Hoeven. Okay. Thank you, Mr. Secretary, appreciate
    it.
        Mr. Chairman, I want to talk to you about Sentinel, given
    the incredible threat from China, and Russia, and the
    incredible buildup we are seeing particularly in China, with
    their nuclear arsenal, and given the Nunn-McCurdy Review, one,
    are you fully committed to modernization of our nuclear forces
    to the Sentinel Program and how are you going to do and what
    are you going to do to keep that on track.
        General Brown. As you know, our nuclear portfolio, and our
    nuclear triad is key to our strategic deterrence, and so in
    this budget there is $49 billion that is focused on that
    portfolio for Sentinel, there is 3.7 billion. As the Air Force
    works through its Nunn-McCurdy, we want to continue down the
    path to modernize, because this leg of triad, Sentinel, is the
    one that is available 24/7, and to provide the that strategic
    deterrence in addition to the other two legs of the triad.
        Senator Hoeven. Are you fully committed to doing what you
    need to, to keep it on track?
        General Brown. I am.
        Senator Hoeven. And do you feel that you have the plan in
    place right now to do that?
        General Brown. Well, this is where the Air Force is working
    through the Nunn-McCurdy, and I have not gotten a brief from
    them, but I do know that the Air Force is focused on this, you
    know, based on my past experience, and based on how important I
    know it is for the Nation.
        Senator Hoeven. Is there something that you would want to
    see from this committee that would help you do that?
        General Brown. Well, I think the collaboration with the
    committee, and consistent funding, on-time funding, will be
    helpful to move forward, and then this constant dialogue to
    figure out where we can take out any slack to ensure we get the
    capability.
        Senator Hoeven. Well, our Chairman is from Montana, the
    home of Malmstrom, and of course we have the Minot Air Force
    Base in North Dakota, and Senator Barrasso in F.E. Warren, I
    know that we are committed to helping you. So if there is
    something else that needs to be done we want to know what it is
    to keep that program on track.
        General Brown. We will definitely let you know.
        Senator Hoeven. Okay. Thank you very much. And then the
    last question I would have, Mr. Chairman, for you is, how are
    you making sure that we have enough ISR (Intelligence,
    Surveillance, and Reconnaissance)--with this you know
    development in for space-based assets, and that is I know it is
    critically important, we are very committed to funding that and
    advancing it. I am concerned that you are not doing enough to
    maintain an ISR capacity. What are you doing to make sure that
    you have the ISR assets that all of the Forces, not just Air
    Force, but all of our Forces are asking for?
        General Brown. You know, as a Joint warfighter, and having
    been serving jointly, I have been focused not just on the Air
    Force but all the Services. And when I look at the ISR, in
    particular, it is the capability that only do we have from the
    air-breathing assets, but it is how we bring in ISR from our
    maritime assets, how we bring it in, and particular from our
    space assets, and how we transition.
        I would also highlight the fact how cyber plays a key role
    in some of our ISRs as well. And so having the capability to
    bring that all together and using our digital tools to take all
    the information we get from whatever ISR platform, that is what
    we really--you know, that is where the focus is. How do you
    take that information to things we can analyze to determine
    intent, and it is not just--I know our combatant commands are
    focused on particular platforms, but it is the combination of
    platforms and capability, and how we bring that together, that
    is going to make us most effective as a Joint Force.
        Senator Hoeven. Well, you and I have worked on this for
    some time, and you have had a good common-sense approach to it.
    And so we want to continue working with you on it, but what you
    do in ISR affects every single Force in the DOD, not just Air
    Force. It is vitally important. So I want to encourage your
    continued focus on making sure that you have adequate ISR, and
    we will work with you to do that, but very important.
        General Brown. Actually having the ISR actually makes my
    job easier. So I am completely focused on ensuring we have that
    capability.
        Senator Hoeven. Thank you, Mr. Chairman.
        Senator Tester. Yes. Thank you. I have got a couple more
    questions. And I thank you guys for your patience, and going
    through the order here. We have had good participation today.
        Look, I have repeatedly called upon Secretary Mayorkas, and
    President Biden, and Congress, to step up and fix what is going
    on in the southern border. It is not sustainable at all, and it
    is unacceptable. DHS (Department of Homeland Security)
    continues to rely on DOD support at the southern border to make
    sure that they are doing what they can do. But once again, I
    don't see any funding in this budget for DOD personnel for
    those operations. So Mr. Secretary, a couple things. Number
    one, how many troops are serving currently on the southern
    border?
        Secretary Austin. There is about 2,500 on board.
        Senator Tester. Yes. And how does DOD cover these costs?
        Secretary Austin. As we always have, out of our operating
    budget.
        Senator Tester. And so what does that mean, and
    operationally, who gets shorted?
        Secretary Austin. Of course, that means that there is
    something else that we are not doing because of that support.
    But you know, it is important that we do everything we can to
    support DHS in its effort to--it its work on the southwest
    border. We have been doing that for 19--the last 23 years. The
    price tag has been about $4 billion. But again, we are
    supporting Agency, and DHS is a lead Agency. And again, it is
    important to our country, and we are going to do what is
    required to support the----
        Senator Tester. So let me ask you this, Mr. Secretary, do
    you agree with my perspective that the administration needs to
    do more to secure the border, and we shouldn't have to depend
    upon the military to do that?
        Secretary Austin. We should, or should not?
        Senator Tester. Should not have to depend upon the
    military?
        Secretary Austin. I could not--I agree, but if we are
    required to assist, then certainly we will continue to do so.
        Senator Tester. I want to go back to Senator----
        Secretary Austin. And the President agrees with the fact
    that there is more that should be done, and that is why when
    you came up with this bipartisan approach, that was very much
    supported.
        Senator Tester. Yes. Well, no doubt about it, Congress
    dropped the ball on that because that would have changed things
    dramatically, but some folks want it to be used as a political
    tool, when in fact we ought to be working for the betterment of
    the country, not for Democrats or Republicans.
        I want to talk to you a little bit about Sentinel. Senator
    Hoeven brought this up. I am frustrated. Secretary Kendall has
    recused himself for reasons, by the way, that I understand
    Members of Congress who created that problem. Northrop Grumman
    is doing what they can do. The Air Force is doing what they can
    do. Bechtel is doing what they can do. You guys have educated
    me very, very well on what is going on in this world, and why
    this is a dangerous time, yet I don't get the sense of urgency
    on Sentinel, particularly with the ground-based missiles that
    we have.
        We have got timelines, and quite frankly, we had a General
    in front of the VA MILCON Committee, and General Miller, I
    believe, correct me if I am wrong, General Miller, and I asked
    them about time lines. Great guy, incredibly talented, could
    not even give me the year they anticipated starting this
    program. And I get it, there is studies going on, there is cost
    issues, and it is going to cost a lot.
        General Brown, can you give me any sort of--this is in your
    old job, front and center, and it is still in your new job too,
    by the way, but can you give me any idea on, if I should be
    concerned about the timeline continuing to slip on the ground-
    based Nuclear Missile Sentinel Project that I think is
    critically important as a deterrent moving forward in this
    world in the 21st century?
        General Brown. Senator, I don't necessarily have the
    details, but I think for all of us, we all should be, you know,
    I get concerned we don't get capability to the hands of our
    warfighters, or things that are very important to our strategic
    deterrence. And so my focus as a Chairman, and same as, when I
    was the Air Force Chief, is to ensure we are doing everything
    we can to make sure we bring that capability forward.
        And so I am focused, and want to make sure that we continue
    to do that. So I do have, like you, have some concerns. I want
    to understand where we are, and what are the things we need to
    do to ensure we bring that capability forward as quickly as
    possible.
        Senator Tester. We are here to help.
        General Brown. Yes, sir.
        Senator Tester. But I will tell you that unless we start
    getting timelines, and goals, and everything set up, there is
    going to be a lot of pressure being put on people because,
    quite frankly, I do not think it is acceptable to be continuing
    to say: Don't worry about this, it is coming. The truth is, we
    have been at this for a while, and I haven't seen it coming,
    seen it progressing to the point it needs to.
        Senator Collins, I will get to you. I want to get to
    Senator Murkowski, for her first round.
        Senator Murkowski.
        Senator Murkowski. Thank you, Mr. Chairman, and apologize,
    we are all jumping in between multiple appropriation
    subcommittees this morning.
        But gentlemen, thank you for being here, thank you for your
    leadership. I know that there is probably been a great deal of
    discussion here this morning as there is just generally about
    the threats from China, Iran, the conflicts in Ukraine, but I
    feel it is important to always underscore that we never take
    our eye off of North Korea, who just last month, of course,
    fired missiles in the direction of Japan, one of our strongest
    allies in the Pacific.
        It was Prime Minister Kishida who noted, just shortly after
    the most recent launch from North Korea, that their frequent
    launches threaten the peace and safety of not only Japan but
    the region and the international security. So I just make the
    statement to let you know that it is something that we are
    certainly engaged in tracking, and I know you are as well.
        But I want to ask you, Mr. Secretary, not about North
    Korea, but a focus on the Arctic. Your fiscal year 2025 budget
    overview states that the goal of this year's budget request is
    ``To develop a monitor and response approach in the Arctic.''
    So I read that to suggest that this is a passive approach in
    the Arctic, which I think would be a strategic critical error.
    As you know, we are already behind. We are under-equipped when
    it comes to assets. When you look at what Russia has with their
    icebreaker fleet of about 50 vessels, in the United States
    here, we have barely two.
        Mr. Secretary, you have been to the State, you have had
    really strong statements noting that the United States has to
    project power in both regions while also serving as a frontline
    in the Homeland Defense Mission. So you are saying all the
    right things, but I am concerned about the wording here, and I
    would ask for you to just expand on what a monitor and respond
    approach in the Arctic really entails.
        Secretary Austin. Thanks, Senator. The United States is an
    Arctic nation, and of course, this is a strategically important
    region to us for a number of reasons. And we are going to
    continue to take actions to prioritize the region. You are
    going to soon see us release a new Arctic Strategy, and that
    strategy will account for the changes in the environment, you
    know, the warming climate, the fact that we have new members of
    NATO that I think will be very helpful in working with us going
    forward.
        We see each of the Military Services making investments in
    their ability to operate in that environment. We also see a
    Combatant Commander, NORTHCOM, partnering with Canada to
    modernize the NORAD (North American Aerospace Defense Command).
    And so again, it is important to us. You know that we conduct
    some pretty significant exercises, like Northern Edge up there,
    and every time we do that, we learn a lot more about ourselves
    and the challenges that are facing us. But again, the Arctic
    will remain important to us, and we will account for that in
    the new strategy that we are going to release.
        Senator Murkowski. Well, I thank you for that, and would
    suggest also, and when we factor it into the strategy that,
    again, when we look at the budget, making sure that it is
    resourced to demonstrate that, whether it is in the proper
    Arctic equipment, cold weather service incentive programs, and
    the like.
        Very quickly to you, General Brown, as you well know,
    Alaska's in a pretty unique position because it executes a
    NORTHCOM mission but with PACOM assets, and it creates some
    operational control issues as NORTHCOM and 11th Air Force
    Commanders are unable to effectively utilize their assets in a
    timely and efficient manner. Every 11th Air Force Commander I
    have worked with has expressed the concerns about the
    structure, in that it doesn't prioritize Homeland Defense,
    making their job a little bit harder. I am sure you are
    tracking this issue.
        I know that the proposal is currently being considered
    within the Pentagon. I don't know if you have any updates that
    you can provide now, or at a later point in time, but it is
    something that, again, we are looking to address. I had a
    conversation with General Guo just yesterday.
        Secretary Austin. Well, having served as a Commander of
    Pacific Air Force, I am very familiar with the operational
    challenges associated with Air Forces in Alaska that are both
    focused on NORTHCOM-NORAD Missions, as well as INDOPACOM
    Missions.
        I am not aware of a direct proposal, but I have talked to
    General Guo as well, and just based on experience, I know it is
    something we got to take a look at to continue to make sure
    that we don't create unnecessary seams to make sure we can
    respond in whichever way the Nation requires with the
    capabilities that are stationed there in Alaska.
        Senator Murkowski. I appreciate your review of that. Thank
    you, Mr. Chairman.
        Senator Tester. Senator Collins.
        Senator Collins. Thank you, Mr. Chairman.
        Mr. Secretary, Congress has overwhelmingly, and with
    bipartisan support, indicated its support for providing weapons
    and other assistance to Israel. These funding bills have passed
    with 70 to 80 votes in the Senate, and by similar bipartisan
    margins in the House. You said in response to a question today
    that no final decision has been made. I would suggest to you
    that pausing or delaying the delivery of weapons to Israel is a
    decision, and it is a decision that most Members of Congress
    would take issue with.
        I was reading a report from John Spencer, who is the Chair
    of Urban Warfare Studies at West Point, and he said, quote,
    ``Israel has implemented more measures to prevent civilian
    casualties in urban warfare than any other military in the
    history of war.''
        So that leads me to ask you, what conditions is the
    administration asking Israel to fulfill before releasing these
    weapons that the administration has deliberately delayed
    despite strong Congressional support for this assistance?
        Secretary Austin. Thanks, Senator. Well, first of all, it
    is about having the right kinds of weapons for the task at
    hand. And a small diameter bomb, which is a precision weapon
    that is very useful in a dense built-up environment, is
    helpful, but maybe not so much a 2,000=pound bomb that could
    create a lot of collateral damage. And so, we have been very
    clear that we have to do more to--Israel needs to do more to
    protect the civilians in the battle space.
        And we wanted to make sure that we saw a plan to move those
    civilians out of the battle space before executing any kind of
    ground combat operation. And we would also like to see them do
    more precise operations. Now, I don't doubt that they have some
    very good policies, and they do, but it is important to make
    sure that we are following the policies. And so, we have been
    having conversations about this. And so, we think it is
    imperative that we do more to protect civilians in the battle
    space, and that is the real issue.
        Senator Collins. And I would just suggest to you that it is
    Hamas that has its military operations under hospitals, under
    schools, concealed in civilian areas, and is using our
    hostages, American hostages, Israeli hostages, and innocent
    Palestinian civilians as human shields. I think we need to
    remember and always remind ourselves that it was Hamas that
    massacred 1,200 Israelis.
        It wasn't the Israelis that started this conflict. And I am
    just very concerned that we not try to micromanage Israel's
    right to defend itself against a terrorist group backed by
    Iran.
        Let me just quickly go to one other issue, and that is, I
    know that the National Security Strategy focuses on great power
    competition with China, however, the most imminent threat to
    the U.S. homeland, and our citizens abroad, as well as our
    allies, may well be the reconstituted terrorist factions that
    have grown since our abandonment of Afghanistan.
        And to follow up on the Chairman's point, according to one
    DHS official cited in a Washington Post report: More than
    10,000 migrants from Central Asian countries have entered into
    the United States in the past year, some of whom have crossed
    the border illegally. So is the Department of Defense also
    keeping its eye on the terrorist threat which I believe is, as
    the FBI Director has said, ``blinking red'', and working with
    our intelligence community?
        Secretary Austin. Absolutely, Senator, we are. You know, I
    meet routinely with the Director of the CIA, and the Director
    of National Intelligence, and discuss, you know, our assets and
    resources that we have that are focused on collecting on these
    groups. And I remind you that we were the country that warned
    both Iran and Russia of a pending attack. And so we couldn't do
    that if we didn't have the visibility that we have. Now, it is
    not perfect, and we will continue to work to do everything we
    can to make sure that we have every sensor available helping us
    here, so.
        Senator Collins. Thank you.
        Senator Tester. Senator Moran.
        Senator Moran. Chairman, Vice Chairman, thank you.
        General, the Air Force recently awarded a contract for the
    new Survivable Airborne Operations Center, SAOC, to replace the
    E-4, the Doomsday. Would you, General, highlight for this
    committee, the importance of this aircraft in the event of a
    national emergency or destruction of ground command and control
    centers?
        General Brown. Well, it is designed to support our Nation
    on our worst day, on a major attack on our Nation. And so it is
    very important, not only for the command and control, and for
    the leadership of the Nation, but also for our nuclear command
    and control as well. So it plays a key role to provide the
    President and our national leadership options to continue to
    operate when we have any type of crisis or contingency.
        Senator Moran. What is the reason there needs to be a
    replacement of the current aircraft?
        General Brown. Just based on age. And one of the things we
    have to pay attention to, not only for this particular
    platform, but for, I would say all the platforms we have within
    the Department, is to ensure that we actually have a viable
    platform that we can sustain from a maintenance standpoint,
    because at some point it gets more costly to maintain than to
    move into a new capability.
        I would also say, technology, as technology advances, we
    want to make sure we have the most advanced capabilities that
    the Nation has to offer in the platforms that we use, not only
    for our command control, but also for our warfighters.
        Senator Moran. Thank you, General.
        Secretary Austin, the Bipartisan Strategic Posture
    Committee Report recommended fully and urgently executing the
    U.S. Nuclear Modernization Program of record, including the
    replacement of all delivery systems. Can you highlight, please,
    some of the key successes related to modernization of our
    Strategic Delivery System?
        Secretary Austin. Yes, well, in this forum, I will say
    that, again, we are asking you in this budget for some $49
    billion to continue to invest in all three legs of the triad.
    We have requested, to this point, some $149 billion, and that
    money is being put to use to upgrade our capabilities across
    the board.
        So, as we look at the threat though going forward, Senator
    Moran, you know, the threat that we face today was clearly not
    a threat that we were facing 10 years ago, and it won't be the
    same 10 years from now. So, this is a kind of a changing
    challenge, and we have to keep pace with that. And so we
    anticipate that going forward, there will be more changes that
    will have to be made, and you know, as our adversaries get more
    capability, so.
        Senator Moran. Thank you. Thank you, both.
        Senator Tester. I want to thank you for being here,
    gentlemen. We appreciate you, we appreciate the testimony you
    have given here today, and the answers to the questions.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senators may submit additional written questions and we ask
    you to respond to those questions 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 Hon. Lloyd J. Austin, III
                   Questions Submitted by Senator Jon Tester
        Question. The budget request is consistent with the caps set in the
    Fiscal Responsibility Act. However, the proposed growth is below
    current inflation levels and does not account for billions of dollars
    of additional requirements identified by the military services.
        Mr. Secretary, where are you taking risk because of the budget cap?
        Answer. Since FY22, you have seen us increase our topline request
    by over $130 billion. This budget continues to be strategy driven, and
    we are investing in what we need to maintain our competitive edge. But
    to meet the budget caps approved by Congress under the Fiscal
    Responsibility Act, we made tough but responsible decisions to
    prioritize near-term readiness at the expense of some modernization
    that will not be delivered until the 2030s. It's critical that we
    regain topline growth in the out years to ensure we meet our
    modernization goals.
        Question. I have repeatedly called upon Secretary Mayorkas and
    President Biden to step up and secure the southwest border. The status
    quo is not working, despite the assistance of our troops. DHS continues
    to rely on DoD support at the southwest border. But once again, no
    funding is included in the budget for DoD personnel and operations.
        Mr. Secretary, how many troops are serving at the border now? How
    is DoD going to cover these costs?
        Answer. As of May 7, 2024, approximately 2,334 military personnel
    are supporting the Department of Homeland Security's border security
    mission at the southwest border. As the cost of DoD's support is
    unbudgeted, DoD absorbs this cost in the year of execution including
    via reprogramming actions.
        Question. Mr. Secretary, do you agree with me that the
    Administration needs to do more to secure the border from a national
    security standpoint?
        Answer. Border security is a law enforcement mission of the
    Department of Homeland Security. In response to DHS requests for
    assistance, we have supported DHS's border security mission at the
    southwest border for 19 of the last 23 years at the cost to DoD of more
    than $4 billion. We're working with DHS to help develop its own
    capabilities, because long-term reliance on DoD presents a risk,
    particularly in the event that our forces, capabilities, and resources
    need to be committed to a major overseas contingency.
        Question. Two months ago, in response to a growing humanitarian
    crisis, the President directed the Department of Defense to establish a
    pier on the Gaza coastline to provide critical food and water
    deliveries for Palestinian civilians. The initial estimate for 60 days
    of operations was $154 million; we understand that DoD now estimates
    the cost to be $320 million for 90 days of operations.
        How will DoD pay for this operation?
        Does DoD have a cost estimate for extended operations beyond 90
    days?
        Answer. The Joint Logistics Over-the-Shore humanitarian assistance
    cost estimates significantly decreased from the $320M initial estimate
    to the current $230M due to an altered operational environment, partner
    contributions, and a reduced amount of funding requirements for
    contract solutions. The initial cost estimate was the best initial
    government estimate of contracting solutions that would allow the
    Department to fulfill its mission to support the U.S. Agency for
    International Development. Vendors provided proposals at much lower
    costs than previously estimated, and operational, force protection, and
    basic life support costs were refined from the initial estimates due to
    detailed analyses from the DoD Components.
        The JLOTS repair of approximately $15M is included in the revised
    estimate of $230M.
        Question. Shortages in our supply chain are delaying major programs
    across every military Service, which hampers our ability to field new
    capabilities to the warfighter on cost and on time. The submarine
    industrial base comes to mind, but so do other programs, such as
    Sentinel, which will replace Cold War era Minute Man III interceptors.
        Secretary Austin, when the Department makes a contract award, how
    do you track the health and performance of suppliers? It seems we often
    rely on the prime contractor instead of identifying and managing key
    suppliers ourselves.
        Answer. Keeping suppliers accountable in the performance of a
    contract is important for ensuring the health and resilience of the
    defense industrial ecosystem. Through the Office of the Assistant
    Secretary of Defense for Industrial Base Policy (OASD(IBP)), the DoD
    supports non-prime contractors who manage important elements of the
    defense-critical supply chains. OASD(IBP)'s Manufacturing Capability
    Expansion and Investment Prioritization (MCEIP) office identifies areas
    where additional critical industrial capacity is needed and makes
    targeted investments to close these gaps. All MCEIP investments are
    tracked individually by agreement for deliverables and technical
    success. These deliverables vary by effort based on technology,
    maturity and risk. If the performer does not meet the technical
    measures of success or fails to deliver, MCEIP will terminate the
    agreement and reinvest the remaining funds. This is one of the major
    benefits of the Defense Production Act ordinarily receiving non
    expiring funds. Following the technical period of performance (TPOP),
    MCEIP will enter a No Cost Monitoring Phase (NCMP) where the government
    will maintain oversight of the performance and ownership of all
    equipment to ensure proper use, sustainability of the investment and
    protection from adversarial capital. This period can last up to 5 years
    after the TPOP ends.
        Question. Mr. Secretary, we have spent billions in recent years to
    shore up and expand our supply base. Are we getting the right return on
    our investments?
        Answer. The Department is constantly working on ways to increase
    supply chain resiliency to support programs using domestic and
    alternate materials, as well as innovative manufacturing methods. The
    FY25 Budget would make new investments in our supply chains. Supply
    chain challenges are also an economy-wide issue, and military demand is
    not always enough to influence these markets. Where applicable, we need
    to work with the U.S. industry to promote more secure options, drawn
    from domestic and allied commercial supply chains. The Department is
    receiving significant return on our investments by onshoring critical
    industrial sectors within the United States. Congress appropriated $1
    billion to the Defense Production Act account via the CARES Act, which
    resulted in increased domestic vaccine production, and development of
    mRNA vaccine and therapeutics production expertise within the United
    States. We have also supported the development of critical minerals
    processing and mining within the United States to reduce our dependence
    on near-peer adversaries. These investments were made in novel
    technologies or sectors prior to commercial viability. As these
    investments and companies mature, the money spent will generate new
    sectors of production within the United States, along with jobs and
    intellectual expertise. Investment in the supply base will grow the
    economy and the capabilities of U.S. manufacturing. These investments
    are driving employment within the United States and reducing our
    vulnerability to trade disruptions and forms of economic statecraft
    practiced by adversarial nations.
        Question. Mr. Secretary, in recent years, Congress has established
    unprecedented acquisition and budget authorities to drive more
    innovation into DoD. Yet the results are mixed: many of these programs
    suffer from cost overruns and schedule delays, and we have yet to see
    prototypes successfully fielded at scale. My concern is that we are at
    risk of falling into the trap of `perennial prototyping,' and not
    actually delivering capability in relevant numbers to our troops by
    increasing procurement.
        Answer. The Department has established several programs
    specifically focused on transitioning prototype technology across the
    valley of death and at scale. For example, the Rapid Defense
    Experimentation Reserve (RDER) is a whole-of-Department effort focused
    on advanced technologies to close gaps in the Department's Joint
    Warfighting Concept. In the past, similar processes have delivered
    impactful capabilities, such as Switchblade loitering anti-armor
    munitions, which have been effective in Ukraine. We know that this type
    of rapid prototyping and experimentation works.
        In addition to the establishment of the RDER, there is a new
    organization within the Office of the Under Secretary of Defense for
    Research and Engineering called Multi-Domain Joint Operations (MDJO),
    which was specifically chartered to work closely with the Joint Staff
    to understand all domain joint warfighter gaps, identify leading-edge
    capabilities to address those gaps, and work rapidly to transition
    those capabilities to Military Service and DoD Agency programs of
    record. MDJO guides proven prototype capabilities through to programs
    of record, delivering them at scale. The Under Secretaries of Defense
    for Research and Engineering and Acquisition and Sustainment have
    bolstered their relationship by working closely on the Competitive
    Advantage Pathfinder program, which works to identify systemic process
    challenges that prevent or slow capabilities from crossing the valley-
    of-death, and recommending solutions that could be scaled across the
    DoD to enable transition of a wide-range of capabilities faster than
    currently planned.
        Another example of the Department delivering capabilities at scale
    through prototyping is the Replicator initiative. Replicator is a
    Department-wide effort to expedite innovation adoption within the
    Department while enhancing adaptability and resiliency in warfighting
    strategy. The Replicator effort is focusing initially on fielding
    thousands of all-domain attributable autonomous systems within 18 to 24
    months. Replicator will also be a catalyst to accelerate the
    Department's ability to streamline bureaucratic processes for rapid
    procurement and acquisition, institutionalizing these processes to
    drive future capacity for capability adoption. Replicator is already
    identifying and addressing pain points.
        Given the proven and well-documented success of the Defense
    Innovation Unit's (DIU) Commercial Solutions Opening (CSO) process and
    their use of Other Transaction authority to support rapid prototyping
    and subsequently scale, DIU is leveraging these tools to attract new
    and nontraditional vendors through the Replicator initiative.
        We are also working to educate and train the acquisition workforce
    on the authorities afforded to them. This includes improving training
    with Defense Acquisition University to ensure all acquisition pathways
    are adequately taught to ensure an informed workforce.
        Lastly, the Department is executing the newly established
    Accelerate the Procurement and Fielding of Innovative Technologies
    (APFIT) program to rapidly inject small-business oriented programs with
    funds needed to bridge them from development into production,
    accelerating production by one to 2 years earlier than previously
    baselined.
        These focused programs indicate that the Department is not
    prototyping for the sake of prototyping alone, but rather to deliver
    capabilities at speed and at scale.
        Question. Mr. Secretary, for years, research and development
    funding has been used to mature and prototype technologies like
    hypersonic weapons and artificial intelligence. These technologies
    would give us decisive capabilities in a near-peer competition with
    China, so when will they become real programs that are fielded at
    scale?
        Answer. The Department of Defense is focused on developing the best
    capabilities for our warfighters as quickly as possible. To accomplish
    this goal, the DoD is funding research and development to mature and
    prototype technologies that are critical to the needs of our
    warfighters.
        The Department's offensive hypersonic weapons development is driven
    by a need to provide a full range of options to senior decision makers.
    Hypersonics are a key component in the mix of capabilities that the
    joint force needs to deter and, if necessary, defeat aggression.
        In the near term, Army tactical missiles for the first Long-Range
    Hypersonic Weapon (LRHW) battery are projected to begin delivering in
    2024. Additionally, the USS Zumwalt (DDG 1000) will deploy the full
    Navy Conventional Prompt Strike (CPS) boost-glide hypersonic weapon
    system in the 2020s, to be followed by CPS deployment on Virginia-class
    attack submarines.
        The Department has funded and has already deployed many systems
    that leverage artificial intelligence, and we continue to advance our
    capabilities in this technology area each year. For example, Project
    Maven which was piloted in 2017, is one of the Department's
    foundational artificial intelligence programs. Maven enables the
    warfighter to achieve decision advantage by processing multiple data
    streams at the edge. Predictive maintenance is another example of
    artificial intelligence capabilities being leveraged in the field. The
    Services, like the Air Force, have instituted predictive maintenance
    programs to enable maintainers to predict and prevent problems before
    they occur. Moreover, the Department has learned that successful
    deployment of artificial intelligence is not about any single
    application but about the creation of a data and operating enterprise
    that allows both the deployment and the necessary feedback and
    evolution of an artificial intelligence capability within that
    enterprise. Through the Chief Data and Artificial Intelligence Officer
    (CDAO) and the Military Services, the Department has been setting the
    conditions necessary to facilitate that successful enterprise, while
    our science and technology community has been exploring solutions to
    issues that are unique to the Department, such as intermittent and
    constrained communications at the tactical edge.
        The DoD will continue to encourage innovation and experimentation
    to outpace its competitors to ensure the U.S. warfighter never shows up
    to a fair fight.
        Question. The Commission to review the Department's budget process
    recently made over 20 recommendations to change DoD's internal budget
    process. Many of these recommendations do not require legislation to
    implement.
        Secretary Austin, can you give us an update on progress you have
    made in moving forward on key, near-term recommendations, such as
    establishing communications enclaves; updating the cumbersome process
    for realigning funds; and improving in person communications?
        Answer. The Department submitted six requests for PPBE reform in
    the FY 2025 budget submission. Each of these is designed to attain the
    financial management flexibility that the Department needs. Many of
    these proposals have been submitted in previous budget cycles but not
    enacted. They include:
      --Two-Year Permanent Change of Station Funding (Appropriations
            Language)
      --National Guard Two Percent Carryover (Appropriations Language)
      --Health Care Transformational Fund (General Provision)
      --Operation and Maintenance (O&M) Unobligated Balance Carryover
            (General Provision)
      --O&M, Defense-Wide (DW), Civil Military Program Transfer Authority
            (Reverse) (General Provision)
      --Increase to Below Threshold Reprogramming (BTR) Limits (Joint
            Explanatory Language Change)
        The reprogramming process, recommended for reform by the Commission
    on PPBE Reform, is affected by two proposals--O&M Unobligated Balance
    Carryover up to 50 percent into the next FY and Increase to BTR Limits
    adjusted for inflation--on pages 6 and 7, respectively, in the
    Appendix.
      --FY 2025 resources requested for PPBE reform implementation: The
            total FY 2025 resources requested for PPBE reform
            implementation is $12.9 million. These resources are for
            implementation of the early 13 recommendations made by the
            Commission on PPBE Reform. Further, since the final report from
            the Commission on PPBE Reform was released after the FY 2025
            budget was submitted, funding for implementing any additional
            recommendations from the final report will be requested in the
            FY 2026 budget submission.
      --The FY 2025 funding request includes $7.8 million by the Office of
            the Under Secretary of Defense (Comptroller) to implement 11 of
            the early recommendations and $5.1 million by the Chief Digital
            and Artificial Intelligence Office (CDAO) to develop and
            implement the SUNvana classified and unclassified data sharing
            enclaves between Congress and DoD. This request consists of
            $5.9 million of O&M, DW and $7.1 million of RDT&E funding.
            These amounts break out as follows:
      --Recommendations 10, 12, 17, and 27A: $0.7 million of FY 2025 O&M,
            DW funding is requested for contracted full-time equivalents
            (FTE) that will provide cross-functional support in
            implementing all four recommendations that fall under the
            responsibility of the Deputy Comptroller for Program and Budget
            (P/B) and the Deputy Chief Financial Officer in OUSD(C). These
            include Recommendation 10--Review and Consolidate Budget Line
            Items; Recommendation 12--Review and Update PPBE-Related
            Guidance Documents; Recommendation 17--Encourage Improved In-
            Person Comms; and Recommendation 27A--Restructure budget
            justification books.
      --Recommendation 18: $0.5 million of FY 2025 O&M, DW funding is
            requested for contracted support to develop training courses
            that will improve the Department's budget justification
            material and will be led by the Director of Human Capital and
            Resource Management, OUSD(C).
      --Recommendations 19 and 24: $5.1 million of FY 2025 RDT&E funding is
            requested for contracted support to develop and implement the
            SUNvana classified and unclassified data sharing enclaves
            between Congress and DoD.
      --Recommendations 20, 21, 26: $4.2 million of FY 2025 O&M, DW funding
            is requested for contracted FTE that will provide cross-
            functional support in implementing all three recommendations
            that fall under the responsibility of the Deputy Comptroller
            for Enterprise Financial Transformation in OUSD(C). These are
            Recommendation 20--Create a Common Analytics Platform;
            Recommendation 21--Strengthen Governance for DoD Business
            Systems; and Recommendation 26--Streamline Processes and
            Improve Analytic Capabilities.
      --For Recommendation 23: $1.9 million of FY 2025 RDT&E funding is
            requested for contracted support for the consolidation of the
            OSD resourcing systems.
      --Recommendation 25: no FY 2025 funding is requested as this
            recommendation falls within an existing Department-funded pilot
            program for improved recruiting and retention led by the
            OUSD(C) and the Department's Chief Talent Management Officer in
            the Office of the Under Secretary of Defense for Personnel and
            Readiness.
      --Recommendation 27B27B: $0.5 million of FY 2025 O&M, DW funding is
            requested for contracted support to improve training courses
            for DoD liaisons to Congress and will be led by the Deputy
            Comptroller for Budget and Appropriation Affairs.
      --Recommendation 27D27D: no FY 2025 funding was requested for the
            recommendation to improve understanding of private sector
            practices.
        Progress on PPBE reform initiatives identified as key by the
    Commission on PPBE Reform
      --Establish classified and unclassified enclaves for DoD-Congress-DoD
            information sharing and Modernize the Tracking of
            Congressionally Directed Actions: In the last year, the
            Department stood up SUNvana, an extension of the Advana
            ecosystem that can provide Congress access to budget and
            execution-related data, applications, and services without a
            Common Access Card (CAC). The SUNvana environment currently
            provides users access to Selected Acquisition Reports (SAR),
            and modern, default, historical, and Middle Tier of Acquisition
            (MTA) program reports. I appreciate Congress providing
            additional funding in Fiscal Year 2024 for enhancements to
            SUNvana. The CDAO and OUSD(C) are working with the
            congressional staffs to prioritize improvements to SUNvana
            using this funding.
      --Improved In-Person Communications/Midyear Update: A Departmental
            workgroup has been established to identify opportunities to
            provide Congress with an improved understanding of emerging DoD
            priorities, impacts of fact-of-life changes, new operational
            requirements, emerging technology, and geopolitical updates. To
            date, the workgroup has been engaging with internal DoD
            participants to collect data on all PPBE related engagements
            with the Hill throughout the Department to determine where
            additional or revamped engagements are necessary.
      --Through its data discovery efforts, the Department found that over
            the last 10 years, DoD engagements with the Hill have increased
            significantly; specifically, from 2014-2024, there was a 522
            percent increase in briefings from the Department to Congress.
            Correspondingly, over the same period, there was a 91 percent
            increase in requests from authorizers, a 288 percent increase
            in requests for reports to Congress, and an 80 percent increase
            in requests from authorizers.
      --The workgroup is now focusing on quality versus quantity of future
            engagements and will begin engagement with Congress in the very
            near future to solicit their input on where they think improved
            communication would be most beneficial.
      --Review and consolidate BLIs: The Department has established a
            workgroup to systematically review budget line items and work
            with congressional defense committees to rationalize and
            consolidate BLIs where appropriate. This workgroup has begun to
            collect inputs from DoD components on proposed BLI changes
            prior to consulting with the Committees of Jurisdiction to
            determine where changes are mutually beneficial.
      --Continue Rationalization of the OSD Resourcing Systems/Accelerate
            consolidation of the OSD programming and budgeting systems: The
            Department continues collaboration across the components to
            streamline business processes, leverage existing data-related
            implementations, and eliminate duplication of efforts. The goal
            is to create a data-driven environment powered by advanced
            analytics and artificial intelligence. This year, the
            Department will continue its efforts to sunset legacy systems,
            including a system that archives execution data (1002 and
            SF133) received from the Defense Finance and Accounting Service
            which will be replaced by the ADVANA-SIPR database. The
            Department is also assessing the Comptroller Information
            Systems data structure and all existing functionality necessary
            for the OMB submission requirements for integration into the
            Next Generation Resource Management System.
        Progress on other PPBE reform initiatives include:
      --J-Book Restructure: A cross-functional workgroup has been
            established to comprehensively review the Department's budget
            justification books (J-books), including the scope and depth of
            budgetary and programmatic content, uniformity of presentation
            formatting, and the consistency of terminology usage. We will
            engage with Congress on proposed changes.
      --Improve training for preparation of budget justification materials:
            The Department convened a working group to identify initial
            training needed by specific appropriation, exhibit type, and
            skill level to target improved J-Book submission quality and
            consistency across the DoD. For the remainder of FY 2024, DoD
            will establish and hold ``train-the-trainer'' sessions. In
            FY25, for all three certification levels within the DoD
            Financial Management Certification Program, existing web-based
            course training will be revamped and new courses will be
            developed with targeted competency objectives to improve J-Book
            submission quality and consistency across the DoD financial
            management community.
      --Update of PPBE-related guidance documents: The Department has
            committed to improving effectiveness of our financial
            operations and reporting through improved clarity and currency
            of our guidance documents. We already completed assessing and
            categorizing the DoD Financial Management Regulation chapters
            for revision and republication. Since January 1, 2024, the
            Department has reissued 10 out of 106 DoD Financial Management
            Regulation chapters identified for revision and is expected to
            reissue a total of 20 chapters by the end of FY 2024. Over FY
            2025 and FY 2026, the Department expects to complete the
            remaining 86 chapters identified for updates and reissue them
            by the end of FY 2026.
      --Create a Common Analytics Platform/Expand PPBE analytics via Advana
            & Streamline processes and improve analytic capabilities to
            reduce workload: The Department initiated a change management
            process to train its workforce to utilize Advana for analysis
            via Advana 101. Additionally, the OUSD(C) Enterprise Financial
            Transformation team has established bi-weekly sessions to
            introduce Advana and train the Financial Management community
            on topics such as web applications, spend plan modelling, and
            execution review tools within Advana. OUSD(C) is also actively
            strategizing to broaden Advana's utilization and developing a
            data integration plan for the Department's Next Generation
            Resource Management System (NGRMS) to improve capability and
            reduce redundancy. Advana data and dashboards also served as
            the sole platform for FY24 working capital fund mid-year
            reviews.
      --Strengthen Governance for DoD Business Systems/Annual report on
            DoD's strategy of consolidation of PPBE business systems: The
            Department validated the planning, programming, and budgeting
            system inventory and incorporated the additional systems into
            the next Defense Business Systems (DBS) Audit Remediation Plan.
            However, the Department would welcome the consolidation of
            congressional reporting on the DBS into a single report, which
            would better align to the DoD's Annual Financial Reporting
            timeline and support more results-based reporting.
                                     ______

                  Questions Submitted by Senator Patty Murray
        Question. In 2013, as part of an effort to consolidate services in
    the Military Health System, the Defense Health Agency downsized
    military hospitals across the U-S, including Naval Hospital Bremerton
    in Washington state. What steps is the Department taking to increase
    its hiring so servicemembers and their families have adequate access to
    labor and delivery services?
        And how is the Department working with local hospitals to establish
    M-O-Us to ensure that military bases can maintain readiness while
    caring for local servicemembers and their families?
        Answer. We take the health well-being of the force and our military
    families extremely seriously. We continue to meet congressional intent
    for reform, and we've completed consolidation of military medical
    treatment facilities under the Defense Health Agency. The Department
    has been working at all levels in a deeply collaborative way to ensure
    the Military Health System's 9.6 million beneficiaries have access to
    the care they need, including to our sailors and their families in
    Washington State. The Defense Health Agency, Military Departments, and
    Joint Staff are working in close coordination to address staffing
    shortages and fulfill mission requirements.
        Question. The Center for Autism Resources, Education and Services
    (CARES) facility and program at Joint Base Lewis McChord has proven to
    be an effective resource for military families who have a child with
    disabilities. Are there limitations to expanding this program elsewhere
    in the country?
        Has the Department looked at expansion?
        Answer. Providing evidence-based support and services to DoD
    beneficiaries with special healthcare needs is a top priority. Any
    program for consideration of an enterprise solution must be critically
    evaluated to ensure that the beneficiaries' needs are addressed, and
    that it is sustainable. Certain limitations may preclude expansion,
    including funding, availability of identified providers, and other
    geographic or regional limitations. The Defense Health Agency continues
    to work with Joint Base Lewis McChord to explore the CARES model and
    its capability to expand throughout the enterprise. The analysis
    includes, but is not limited to, an appropriate staffing model, patient
    population, patient throughput, and clinical outcomes.
                                     ______

                 Questions Submitted by Senator Jeanne Shaheen
        Question. The Fiscal Year 2024 appropriations bill provided funding
    specific to the Department of Defense for treatment and payments to
    victims of anomalous health incidents (AHIs). The Fiscal Year 2025
    Budget also requests $5 million. I recently wrote a letter with Chairs
    and Ranking members of Appropriations, Armed Services, Foreign
    Relations and Intelligence committees requesting that the
    Administration fully implement the HAVANA Act.
        The DoD still has not issued a final rule, required by law, to
    provide payments to victims. At the May 8, 2024 hearing, you provided
    commitment to the Committee that the Department will pursue the
    rulemaking related to treatment and payments for AHI victims.
        As required by law, please provide a date by which the Department
    will issue its regulation related to treatment and payments for AHI
    victims.
        Answer. We take the health and well-being of the force and our
    military families extremely seriously. That includes those who may have
    experienced an Anomalous Health Incident (AHI). We support a government
    wide effort to identify the cause, and provide medical care to those
    with symptoms, caused by a potential AHI. We'll continue to provide
    quality care to all current and former U.S. government personnel and
    their families who have been referred to us for evaluation and care.
    The Department is facilitating timely access for health assessments and
    medical treatment to evaluate and treat those who are experiencing AHI
    symptoms or related conditions. We've established memorandums of
    understanding across the interagency to ensure care is delivered
    quickly and seamlessly to all who may be affected. We have streamlined
    our processes across the interagency to ensure care is delivered
    quickly and seamlessly to all who may be affected.
        Additionally, we are committed to providing compensation to current
    and former civilian employees of the Department or their family members
    for certain Anomalous Health Incident (AHI)-associated injuries and are
    working diligently to implement the necessary requirements to ensure
    individuals receive compensation in accordance with the HAVANA Act of
    2021.
                                     ______

              Questions Submitted by Senator Christopher A. Coons
        Question. I enacted the Global Fragility Act (GFA) 4 years ago with
    26 bipartisan cosponsors in order to prevent violence and promote
    stability by maximizing effectiveness of U.S. diplomatic and
    development efforts with security and defense assistance. I remain
    concerned by the lack of Department of Defense (DoD) engagement on
    implementation, especially in Coastal West Africa where the security
    situation is increasingly dire.
        Answer. DoD is fully engaged in supporting GFA implementation. In
    its supporting role, DoD helps manage and prevent conflict and address
    global fragility through specialized activities including Civil Affairs
    activities, operations in the information environment, institutional
    capacity-building, and security cooperation. DoD efforts also include
    enhancing the capabilities of security forces, focusing on
    professionalization, and strengthening civilian-military coordination.
    As an indicator of this commitment, DoD committed more than $45 million
    in security cooperation funding to Coastal West Africa nations between
    Fiscal Year 2021 and Fiscal Year 2024. Coastal West African countries
    have also benefited from the Defense Operational Resilience
    International Cooperation (DORIC) pilot program, which works with
    partner national security forces to plan for, respond, and adapt to
    defense-related environmental and operational energy challenges.
        Question. What are DoD's plans for bolstering security assistance
    in support of GFA, especially in Africa?
        Answer. DoD has already taken steps to bolster security assistance
    in GFA priority countries. For example, GFA was identified as a
    priority in the Fiscal Year Significant Security Cooperation Initiative
    guidance provided to Combatant Commands. Since the GFA was enacted,
    Geographic Combatant Commands, including USAFRICOM, have incorporated
    GFA principles into security cooperation planning.
        Question. What are your plans to increase global train and equip
    and logistic support in line with GFA implementation in region?
        Answer. DoD primarily supports GFA implementation through civil-
    military engagement support, training and equipping militaries,
    building defense institutional capacity, and professionalizing security
    forces. In addition to sizeable programmatic investments DoD has
    already made to support GFA implementation, DoD has also increased
    support to GFA priority countries in the form of additional personnel,
    Civil Affairs capabilities, and the increased frequency and focus of
    senior leader engagement.
        Question. DoD's Civil Affairs program is not only important to GFA,
    but to addressing gray zone threats and instability more widely. I am
    concerned to hear that funding cuts to Civil Affairs may implicate GFA
    implementation, encourage you to reconsider.
        Answer. Civil Affairs forces are DoD's unique tool not only for
    implementation of stabilization activities, but also for influence and
    access. Civil Affairs forces enhance awareness of the civil environment
    and manage civil-military engagements, mitigate civilian harm, and
    identify and attrite underlying causes of instability. Civil Affairs
    forces work with local partners, to include partner militaries, to
    strengthen resilience against threats and enhance civil-military
    relations.
        Question. Details on plans for Civil Affairs budget for forthcoming
    fiscal years?
        Answer. Civil Affairs (CA) forces are an important component of the
    United States Army Special Operation Command (USASOC) whose tasks
    include building and maintaining international partnerships. The
    Assistant Secretary of Defense for Special Operations and Low Intensity
    Conflict (ASD(SO/LIC)) and Commander, United States Special Operations
    Command (USSOCOM) will continue to ensure that CA forces are funded
    sufficiently and adjust annual budget submissions accordingly.
    Additionally, the Army's current transformation has impacted active-
    duty CA billets and force structure. To mitigate these impacts, the
    ASD(SO/LIC) and Commander, USSOCOM will work closely with the Army
    Reserve's CA components to ensure they are trained and funded to meet
    mission requirements. Budget specifics regarding Army CA forces will be
    released when the President's Budget is signed.
        Question. What are your plans to reconfiguring U.S. force presence
    and capabilities in Coastal West Africa?
        Answer. DoD remains committed to working by, with, and through
    African partners to build their capability to degrade terrorist
    organizations and contribute broadly to regional security and
    stability. We are investing in our security cooperation programs to
    bolster the capacity and capabilities of friendly foreign militaries to
    address security challenges and continue to seek opportunities to
    further enhance our partnerships with West African countries. We
    continue to explore options for future DoD posture in Coastal West
    Africa, including any potential reconfiguration of U.S. force presence
    and capabilities.
        Question. I recently visited the Middle East where I saw how
    vulnerable U.S. troops are to UAS attacks. I understand efforts to
    enhance counter UAS are a priority and that DoD's budget request
    includes a request for a specific counter-UAS fund. Can you speak to
    the threat and why having flexible funding for counter-UAS initiatives
    is important?
        Answer. Small uncrewed aircraft systems (sUAS) are an inexpensive,
    accessible, flexible, expendable, and plausibly deniable way to carry
    out armed attacks and project outsized power over a variety of domains.
    They are growing in variety, quality, and quantity, however their
    ability to adapt to complex operational environments with autonomy,
    volume, speed, and lethality makes them a very challenging threat.
    Countering Uncrewed Aircraft Systems (C-UAS) is an important component
    of an integrated air and missile defense architecture, providing both,
    air defense and force protection to our forces and allied and partner
    nations against state and non-state adversaries. For Fiscal Year 2024,
    in close collaboration with Members of Congress, $100M in procurement
    funding was redirected from the C-UAS Transfer Fund and placed directly
    into Service and US Special Operations Command accounts to provide
    emergent capability to protect U.S. personnel at several key locations
    and critical installations in the Homeland and abroad. Continuing this
    close coordination with the Services to identify capabilities that
    address emergent threats will enable the C-UAS Transfer Fund to provide
    the necessary resources to protect U.S. personnel in the Homeland and
    abroad.
                                     ______

                 Questions Submitted by Senator Lindsey Graham
        Question. Foreign entities of concern (FEOC) empower their
    governments to access sensitive data for national security purposes,
    which raises concerns about connected vehicles manufactured or operated
    by companies incorporated in certain countries, particularly the
    potential for unauthorized access to collect and transmit data and
    implement surveillance capabilities embedded within a vehicle's
    technology. DoD recently added one of the world's largest LiDAR
    suppliers, with roots in Shanghai, on a list of companies with
    ``Chinese Military Connections.''
        How concerned are you about the potential national security impacts
    of automakers and suppliers with FEOC backing gaining market access in
    the U.S.? What are those public concerns?
        Answer. In its capacity as a member of the Committee on Foreign
    Investment in the United States (CFIUS), the Department of Defense
    routinely conducts rigorous analysis to identify transactions or
    foreign investments involving U.S. entities that may pose a threat to
    national security. The Department believes the CFIUS process allows for
    a full assessment of the national security risks involved in
    transactions filed with the Committee. The Department of Defense
    continues to evaluate the potential that foreign entities of concern
    (FEOCs) may access, collect, or transmit data and implement
    surveillance capabilities. Regarding more specific definition issues,
    the Department of Defense defers to the Departments of Treasury and
    Energy and the final rules issued regarding the FEOC definition.
        Question. The June 2023 Battle Force Ship Assessment and
    Requirement stated that the Navy requires a fleet size of 381 manned
    and 134 unmanned ships. Current budget caps, as set by the Fiscal
    Responsibility Act (Public Law 118-5), negatively impact the ability of
    the Department of Defense to fund the Department of the Navy above
    inflation in order to meet this goal and ensure our nation can meet the
    various threats around the globe.
        How much funding would be required to ensure that the Navy reaches
    this goal of 381 manned and 134 unmanned ships?
        Has the Department of Defense considered alternative ways to reach
    this goal, such as looking to our allies in Japan or South Korea to
    construct unmanned ships?
        Answer. The FY25 Budget includes $32.4 billion in shipbuilding
    funding to modernize our Naval Forces, including new construction of 6
    battle force ships in FY25 with plans to procure 57 ships over the next
    5 years. We had to make tough, responsible choices to comply with the
    Fiscal Responsibility Act budget caps, and we're focused on investing
    in what industry can produce. Over the last 3 years, you have seen us
    make critical investments in the shipbuilding industrial base to ensure
    that American industry can meet our national security needs far into
    the future. These investments will support supplier and workforce
    development, and infrastructure improvement to support increased
    production and reduce maintenance backlogs. The Navy is making critical
    improvements to ship maintenance and construction to ensure we maintain
    the fleet as effectively as possible. Further, in support of the
    Secretary of the Navy's ``Enhancing Strategic Partnership'' priorities,
    the Navy continues to engage with Japanese and South Korean delegations
    to discuss unmanned systems in order to ensure our nation can meet
    threats around the globe.
        Question. Congress passed the Make PPE in America Act as part of
    the Infrastructure Investment & Jobs Act in 2022. This law strengthens
    efforts to onshore production of personal protective equipment (PPE) in
    the United States by requiring Federal agencies to issue long-term
    contracts for American-made PPE. My understanding from conversations
    with a domestic PPE manufacture is that agencies are not fully
    complying with the law.
        How many long-term contracts has DoD issued to U.S. manufacturers
    since the enactment of the Make PPE in America Act?
        Answer. The requirements of the Make PPE in America Act are not
    applicable to the DoD.
        However, based on a review of DoD contract data, the Department
    estimates it has issued less than 230 long-term contracts for PPE to
    U.S. manufacturers since the enactment of the Make PPE in America Act.
        Question. How many Buy America waivers, specifically for medical
    exam gloves, has DoD requested and received since the Make PPE in
    America Act was enacted? Please explain your reasoning.
        Answer. The requirements of the Make PPE in America Act are not
    applicable to the DoD. According to available data, the Department has
    not requested any Buy American non-availability waivers for medical
    exam gloves since the Make PPE in America Act was enacted on November
    15, 2021.
        Question. Please identify how many Service-Disabled Veteran Owned
    Small Businesses (SDVOSBs) received contract awards from DoD (to
    include DLA) to the Federal resellers who provide U.S. manufacturers
    medical exam gloves under the Make PPE in America Act since January
    2022?
        Answer. The requirements of the Make PPE in America Act are not
    applicable to the DoD. However, the Department reviewed data in the
    Federal Procurement Data System (FPDS) and found 15 SDVOSB vendors who
    received contract awards from DoD to provide U.S. manufactured medical
    exam gloves since January 2022. The contract description in FPDS was
    used to identify gloves, but data is not available to tell whether
    these vendors were resellers.
        Question. In your opinion as the Secretary of Defense, what more
    could Congress have done to ensure government agencies like the DoD
    support U.S. manufacturers of medical examination gloves who are not
    able to purchase NBR from a domestic source?
        Answer. America's Defense Industrial Base is one of our core
    strategic assets. When able, we will always prioritize American
    companies and defense suppliers. DoD appreciates the congressional
    direction in Section 835 of the FY24 NDAA that raised the domestic
    source content for major acquisition programs in line with Executive
    Order 14005, issued by President Biden in 2021. Having more defense
    equipment made in America is good for our national security and our
    industrial base. Authorizing government agencies to purchase medical
    examination gloves from manufacturers who source raw materials from the
    National Technological and Industrial Base (NTIB) could further
    increase supply chain resilience even when domestic sources are
    unavailable.Additionally, legislation allowing sourcing from NATO
    allies and countries designated as Major Non-NATO Allies (MNNA) under
    22 U.S.C. Sec. 2321k would significantly increase the potential
    supplier base for raw materials to also include countries with
    extensive manufacturing. Expanding available sources to include NTIB
    members, NATO, and MNNA countries would bring in six of the world's top
    ten countries by manufacturing output (excluding the United States) as
    potential precursor sources. The National Defense Industrial Strategy
    calls for partnering with allied defense industrial bases, and
    expanding the authority to source from these nations would increase our
    industrial partnership.
        Question. In your opinion as the Secretary of Defense, what more
    could Congress have done to ensure government agencies like the DoD
    support certified SDVOSB resellers who work with these U.S.
    manufacturers noted above?
        Answer. The recent increase in the government-wide goal for
    Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) from 3% to
    5%, as outlined in the 2024 National Defense Authorization Act (NDAA),
    represents a significant move in supporting these businesses. The
    Department of Defense remains committed to meeting and exceeding this
    goal, as it has consistently done in previous fiscal years.
                                     ______

                   Questions Submitted by Senator Jerry Moran
        Question. According to a recent Wall Street Journal article,
    Chinese companies have an aggressive hold on the solar market,
    controlling about 83% of solar panel production and almost 100% of some
    aspects of the solar supply chain. DoD recently announced it would
    purchase solar panels for the Pentagon's rooftop.
        If the Pentagon follows through, are you committed to purchasing
    only American made solar panels from entities not owned or controlled
    by Chinese companies?
        Answer. If the Pentagon rooftop solar project moves forward, the
    solar panels will comply with domestic preference statutes implemented
    by the Federal Acquisition Regulation and Defense Federal Acquisition
    Regulation Supplement, including relevant provisions of the Buy
    American Act as well as the Trade Agreements Act.
        Question. Last year, the NDAA included a provision banning DoD from
    procuring batteries from Chinese-owned entities; should we do the same
    for solar panels?
        Answer. Current laws and regulations are sufficient to ensure the
    Department is not procuring solar panels from Chinese-owned entities.
    No additional legislation is required at this time. For its contracts
    involving the purchase of solar panels, the Department complies with
    the domestic preference and trade agreement partner statutes
    implemented by the Federal Acquisition Regulation and Defense Federal
    Acquisition Regulation Supplement. The Department uses a rigorous and
    extensive oversight process to ensure compliance with these laws and
    regulations. This process includes thorough pre-award technical
    evaluations to assess whether contractor proposals are fully responsive
    to the applicable specifications and project requirements, including
    domestic sourcing requirements. The Department also utilizes
    comprehensive post-award construction quality management, including
    regular government-led quality control meetings and inspections with
    appropriate documentation from the contractor detailing the exact
    material and equipment the contractor intends to use or install. These
    processes help to ensure that the Department is only procuring solar
    photovoltaic equipment that is fully compliant with all statutory and
    regulatory sourcing requirements. Looking to the future, the Department
    is leveraging its considerable purchasing power to support the ability
    of the U.S. carbon pollution free energy industry and related allied
    commercial supply chains to rapidly grow and provide resilient,
    diversified, clean energy generation to support our warfighters.
        Question. The Military Spouse Accelerator Pilot (MSCAP) shows
    promising early results.
        Can the DoD elaborate on plans to expand this program or introduce
    similar initiatives?
        Answer. We've worked hard to increase opportunities for employment
    for military spouses. Through the spouse education and career
    opportunities program, we provide access to high quality, tools, and
    information resources to expand educational and career support to
    military spouses around the world. The Military Spouse Career
    Accelerator Pilot (MSCAP) has proven that the military spouse talent
    pool is desirable across various industry sectors. In its first year,
    the Career Accelerator saw 85% of participants receive employment
    offers with an average of compensation of $69,000.
        In year two, we are focusing on expanding MSCAP into two new
    sectors: Creation of skill-based fellowships and expansion into the
    public sector. The creation of skill-based fellowships supports spouses
    that may not have the needed experience or education but want to enter
    the workforce. Over the 12-week fellowship, spouses will receive the
    necessary training to move into an employed role. We have more than 50
    spouses currently participating in these new fellowships. The other is
    to expand MSCAP to include the Federal government. We recognize that
    Federal employment is a great opportunity for military spouses. We are
    working across Federal agencies to overcome some of the differences
    between the private and public sector; mainly access to facilities and
    systems and efficiently moving into an employed status at the end of
    the fellowship.
        Question. Can the DoD provide any data that shows a correlation
    between high military spouse unemployment and recruiting and manning at
    certain installations?
        Answer. The Department is not able to show a correlation between
    high military spouse unemployment and recruiting and manning at certain
    installations. However, information on recruiting, retention, PCS
    moves/location and spouse unemployment is provided below:
      --Recruiting: JAMRS, within the Office of People Analytics (OPA), has
            found that economic factors, including perceptions of the
            economy and the ability to find a full-time job, have very
            small predictive ability on propensity to join the military. A
            large majority of military enlisted accessions are single at
            the time of entry so it is unlikely that spouse unemployment
            would be salient for them.
      --Retention: An OPA study found that employed spouses of active duty
            Service members are significantly more likely to support their
            Service member staying in the military than are unemployed
            spouses. (Citation--Office of People Analytics (2020). Factors
            Associated with Active Duty Spouse Unemployment (Report #2020-
            094), retrieved from https://www.opa.mil/research-analysis/
            spouse-family/military-spouse-survey-survey-reports-briefings/
            2019-survey-of-active-duty-spouses/factors-associated-with-
            active-duty-spouse-unemployment/).
      --PCS Moves: An OPA survey found that spouses who had a PCS move in
            the past 12 months had more than double the odds of being
            unemployed as spouses who had not had a PCS move in the past
            year. Citation--2021 Survey of Active Duty Spouses: https://
            www.militaryonesource.mil/data-research-and-statistics/survey-
            findings/2021-spouses-survey/.
      --Location: The OCONUS spouse unemployment rate was higher than the
            CONUS rate. Citation--2021 Survey of Active Duty Spouses,
            Special Analysis.
        Question. What specific steps is DoD taking to enhance the
    Transition Assistance Program (TAP) to better align veterans' skills
    with civilian job markets?
        Answer. TAP provides extensive employment information and support
    to assist Service members in aligning their skills with civilian job
    markets. TAP curriculum includes a one-day Department of Labor (DoL)
    Employment Fundamentals of Career Transition course, a two-day DoL
    Employment Workshop, a two-day DoL Career and Credential Exploration
    workshop, and the Small Business Administration's two-day Boots to
    Business course. In addition, the Department, in collaboration with
    Transition Interagency Partners, provides or is developing the
    following additional support:
      --TAP Military Occupational Crosswalk (MOC) Course:
        --The purpose of the MOC is to identify skills, education,
                training, and credentials obtained before and during the
                military and align them with civilian opportunities. During
                MOC, Service members examine their military and civilian
                experience and training records, identify civilian
                occupations/careers that correlate to their career goals
                and interests, identify the skills, education, training,
                and credentials required for their identified occupation/
                career field, and document the gap between their current
                skill set and what is required for their elected civilian
                occupation/career field.
        --In January 2024, the Department added a MilGears activity to the
                MOC. MilGears combines education, training, and
                professional experience to create a personalized pathway
                toward career development. MilGears allows Service members
                to explore different career paths and learn about
                interesting roles; assess how current experience lines up
                with job demands and requirements; and connect with
                workforce and educational opportunities to advance career
                goals.
      --SkillBridge: SkillBridge is a voluntary transition program that
            provides Service members with opportunities to gain valuable
            civilian work experience through industry training,
            apprenticeships, or internships during their last 180 days of
            military service. The intent of SkillBridge is to facilitate
            the acquisition of civilian skills that enhance employability
            after military service. TAP includes multiple touchpoints that
            introduce SkillBridge to transitioning Service members. In
            2023, to increase synergy while promoting uniformity, best
            practices, and management efficiencies across transition and
            reintegration programs, the Department incorporated SkillBridge
            into the transition governance structure under the Transition
            Executive Committee reporting to the VA/DoD Joint Executive
            Committee, aligned policy under the Assistant Secretary of
            Defense for Manpower and Reserve Affairs, and aligned program
            management under the Defense Human Resources Activity's
            Military-Civilian Transition Office.
      --TAP Enterprise Individual Self-Assessment (EISA): In February 2024,
            the Department completed a 12-month EISA Pilot that is now
            undergoing reliability and validity testing along with
            development of supporting information technology capabilities.
            Upon implementation, EISA will establish a criterion-based warm
            handover protocol, leverage evidence-based practices to predict
            negative or adverse post-transition outcomes and inform risk
            mitigation through revised TAP curriculum.
      --Department of Labor Employment Navigator and Partnership Pilot
            (ENPP): The Department continues its partnership with and
            support of ENPP. ENPP leverages the employment and training
            resources and expertise available from approved government and
            non-governmental partners to provide the following services:
            apprenticeship opportunities; digital matching; employment
            mentorship; employment networking; hiring events; placement
            services; referrals to employment opportunities; training
            services; and wraparound services. Employment Navigators (ENs)
            are available to assist participants, both virtually and in-
            person, from the earliest stage of their transition during pre-
            separation through their separation from military service.
            Partners continue to assist service members after their
            separation.
        Question. How is the success of these initiatives measured?
        Answer.
      --Assessment and Evaluation Design: TAP applies a mixed-method
            assessment and evaluation design, implementing more than one
            method of data collection to evaluate the effectiveness of TAP.
            The central thesis of program effectiveness examines Service
            members' preparation to meet their post-transition goals and
            goal achievement. This approach to evaluating effectiveness
            spans 365 days before and after a Service member's military-to-
            civilian transition. The Department continues to review and
            modify transition-related measures and indicators (M&Is) to
            capture performance, tendencies, and potential challenges with
            respect to data integrity or collection processes. The M&Is
            have a wide range of focus, including TAP compliance based on
            legislation requirements, and indicators to summarize trends
            for analysis on the desired long-term end states of TAP.
      --Counseling: TAP Counselors evaluate the possible challenges a
            Service member may encounter based on the personal self-
            assessment, development of an Individual Transition Plan, and a
            one-on-one counseling session.
      --Transition Assistance Participant Assessment (TAPA): DoD uses the
            TAPA to capture inputs of Service member experiences and
            knowledge gained. Approximately 17 percent of Service members
            responded to the TAPA with over 90% of those agreeing or
            strongly agreeing that TAP helped them gain the information and
            skills they need to plan their transition.
      --Interagency Data-Sharing: To improve our understanding of post-
            transition outcomes, the Department partnered with the U.S.
            Census Bureau to merge data for longitudinal analyses of
            veteran employment and education outcomes. The partnership
            merges Department data on the individual level with Census data
            including employment, post- secondary education, and other
            state and Federal data in the Longitudinal Employer- Household
            Dynamics dataset. The combined dataset will provide the ability
            to longitudinally track the experiences of Service members and
            Veterans from their time in the military through their
            transition and reintegration into civilian life. The project is
            undergoing reliability and validity testing after which data
            will be available to both public and private researchers
            (tentatively in 2025).
      --Predictive Analytics Summit: In May 2024, the Department hosted a
            Predictive Analytics Summit to enhance synergy and
            collaboration among Transition Assistance and Reintegration
            Program partners and other Federal agencies to achieve
            consistent outcomes across the enterprise. The Summit was built
            on the foundation of data sharing across the Federal government
            to provide comprehensive descriptive data/analytics information
            and predictive analysis opportunities to reduce adverse
            outcomes among transition and reintegration Service members.
            This approach supports data triangulation and enables effective
            collaboration, which are critical elements in our shared
            mission to mitigate risk. Implementing predictive analytics
            ascertains risk mitigation and strategies among Service members
            who may experience adverse post-separation outcomes.
      --Department of Veterans Affairs' Post-Separation Transition
            Assistance Program Assessment (PSTAP) Outcome Study: PSTAP is a
            multi-year study, published each summer, which provides data to
            support the long-term outcomes and effectiveness of TAP. This
            study surveys cohorts of recently transitioned veterans to
            collect information at post-separation intervals (6 months, 1
            year, and 3 years). The PSTAP allows the agencies participating
            in TAP to assess outcomes related to transition based on
            holistic veteran wellbeing and economic stability across
            various life domains, including employment, education, health
            and relationships, finances, and overall well-being.
        Question. Has the DoD considered expanding transition programs for
    other branches of the military, such as Soldier for Life, than solely
    TAP?
        Answer. The Transition Assistance Program (TAP) is a critical
    statutory program that provides opportunities, services, and training
    for transitioning Service members in their preparation to meet post-
    military goals. While TAP remains a critical component, the Department
    recognizes the importance of broader support throughout the continuum
    of service and looks for opportunities to expand and leverage other
    transition and reintegration efforts using best practices from all
    branches of the military.
        Question. The Brandon Act was included in the NDAA FY2022 to
    improve the referral process for servicemembers seeking a mental health
    evaluation and allowing them to seek help confidentially.
        How does the DoD ensure that seeking mental healthcare does not
    affect mission readiness or a service member's career trajectory?
        Answer. Mental health is health. Period. We will stop at nothing to
    tackle this issue. In May 2023, the Department implemented a self-
    initiated referral process for mental health evaluations required by
    law. Service members can now initiate a referral process for a mental
    health evaluation through a commanding officer or supervisor in a grade
    above E-5 on any basis, at any time, in any environment. Service
    members are not required to provide a reason to request and receive a
    referral. They continue to have the option to directly contact a mental
    healthcare provider, without their unit's involvement. Additionally,
    the Department reduces stigma for seeking mental healthcare services by
    balancing patient confidentiality with a commander's need to know,
    safeguarding, except in a case in which there is an exigent
    circumstance, the confidentiality of mental healthcare services
    provided to members who voluntarily seek such services. The Department
    has invested in establishing an integrated primary prevention workforce
    and creating healthier command climates and safer communities for our
    military community. Finally, the Department updated and reissued DoD
    Instruction 6490.08, ``Command Notification Requirements to Dispel
    Stigma in Providing Mental Health Care to Service Members,'' to
    reinforce the policies of eliminating stigma in obtaining mental
    healthcare services and to further encourage help-seeking behavior by
    Service members.
                                     ______

              Questions Submitted by Senator Shelley Moore Capito
        Question. Has the Biden Administration made a policy decision to
    withhold certain weapons from delivery to the State of Israel?
        Answer. The United States' commitment to Israel's security is
    ironclad.
        To date, the Administration has paused only one shipment of weapons
    to Israel. No final determination has been made on how to proceed with
    this shipment at this time, and we continue to discuss this issue with
    the Government of Israel. No other deliveries of weapons, munitions,
    equipment, or other services are paused at this time, and other
    security assistance continues to flow to Israel.
        Since Hamas' horrific attack on October 7, 2023, the United States
    has surged billions of dollars in security assistance, passed the
    largest ever supplemental appropriation for emergency assistance, and
    led an unprecedented coalition to defend against Iranian attacks. The
    President has made clear that we will continue to provide Israel with
    the necessary capabilities to defend itself against threats and
    adversaries, including Hamas. We are also working to ensure that Israel
    receives the full amount of assistance Congress appropriated for it in
    the Israel Security Supplemental Appropriations Act, 2024.
        Question. Please provide the list of weapons this policy applies
    to.
        Answer. To date, the Administration has paused only one shipment of
    weapons to Israel consisting of 1,818 2,000-pound bombs and 1,704 500-
    pound bombs.
        The 500-pound bombs have subsequently been shipped to Israel. No
    other deliveries of weapons, munitions, equipment, or other services
    are paused at this time, and other security assistance continues to
    flow to Israel.
        Question. What is the reason for this decision?
        Answer. The Administration remains committed to an outcome in Gaza
    and across the broader Middle East that protects Israel's security. At
    the same time, the Administration is particularly focused on the end-
    use of the 2,000-pound bombs and the effect they could have.
        Question. Were Israeli officials notified in advance of this course
    of action?
        Answer. U.S. Government officials, including from the Department of
    Defense, regularly communicate with Israeli officials regarding ongoing
    security assistance actions.
        Question. Does the Department of Defense believe that Israel can
    achieve its strategic and operational objectives without entering
    Rafah?
        Answer. Israel began its operations in the Rafah region in early
    May, including along the Philadelphi Corridor. These operations in and
    around Rafah began after Israel commenced evacuation efforts, which
    ultimately led to the voluntary evacuation of approximately one million
    people from the Rafah area within two weeks.
        We continue to discuss ways for Israel to achieve its strategic
    goals. Achieving sustainable victory on the battlefield for Israel
    requires both targeting Hamas and providing for the civilian
    population. These efforts are not mutually exclusive.
        Question. If so, how?
        Answer. There are alternative ways to dismantle Hamas, besides a
    major ground combat operation in the densely-packed urban area of the
    city of Rafah. Such alternatives do not preclude Israeli military
    operations in Rafah where Hamas embedded itself with the civilian
    population. Such alternatives may focus on targeted raids, precision
    strikes, the safe and timely evacuation of civilians from the
    battlespace, the protection of civilians, and the facilitation of
    humanitarian assistance.
        Question. The Administration has stressed that it is only pausing
    deliveries of offensive weapons and has continued to deliver defensive
    systems to Israel. What is the Department's assessment of the reduction
    in Israel's ability to deter aggression from Iran, Hezbollah, and Hamas
    if the United States publicly pauses deliveries of offensive weapons?
        Answer. The Administration did not pause deliveries of offensive
    weapons. To date, the Administration paused only one shipment of
    weapons to Israel consisting of 1,818 2,000-pound bombs and 1,704 500-
    pound bombs. The 500-pound bombs have subsequently been shipped to
    Israel. We continue to discuss this issue with the Government of
    Israel. No other deliveries of weapons, munitions, equipment, or other
    services are paused at this time, and other security assistance
    continues to flow to Israel.
        President Biden, together with our allies and partners, made clear
    that this is not a moment for our adversaries to exploit the situation
    to seek advantage. We provided support for Israel's air and missile
    defense systems, including providing additional Iron Dome batteries and
    inceptors from our inventory, and our own forces played an integral
    role in thwarting Iran's unprecedented aerial attack against Israel on
    April 13 and on October 1.
        We continue to make force posture adjustments to deter attacks from
    adversaries, promote regional stability, deter attacks, and protect
    freedom of navigation in the region. We're committed to protecting our
    forces and national interests, as well as to deterring a regional war.
    Our swift response sends a clear message to anyone who might seek to
    widen this conflict. We are not going anywhere.
                                     ______

              Questions Submitted to General Charles Q. Brown, Jr.
                   Questions Submitted by Senator Jon Tester
        Question. The budget request is consistent with the caps set in the
    Fiscal Responsibility Act. However, the proposed growth is below
    current inflation levels and does not account for billions of dollars
    of additional requirements identified by the military services.
        General Brown, what is the operational impact of the budget cap?
        Answer. The President's $849.8 billion defense budget for FY 2025
    reflects our shared commitment to facing today's security challenges
    head-on, while also laying the groundwork to confront the uncertainties
    of tomorrow. This budget includes targeted program reductions to meet
    funding levels approved by Congress under the Fiscal Responsibility Act
    of 2023. It prioritizes near-term Joint Force readiness through
    investment in critical programs and capabilities, while making smart
    but modest investments to modernize our forces and support our service
    members and families. The targeted program reductions reduce programs
    that will deliver future combat capability in the 2030s, thus topline
    growth is critical in the out years to ensure we meet our modernization
    goals.
        Question. What does this mean for our military capabilities 5 years
    down the road?
        Answer. Provisions of the FRA forced tough choices related to
    further modernization. The FRA's topline limitation requires the
    Department to make targeted reductions to programs that will deliver
    key capabilities in later years to preserve the joint force's ability
    to fight and win in the near term. The budget request strategically
    invests in future joint force operations, readiness, procurement, and
    research and development for combat capabilities to retain our
    strategic edge across every domain. In the long term, possible CRs
    along with potential FY25 impacts resulting from FRA sequestration
    actions can create a misalignment of DoD funding, resulting in
    shortfalls within DoD appropriations that disrupt readiness gains and
    slow capability enhancements. Impacted military capabilities such as
    the modernization of the Nuclear Triad, Munitions MYP to address PRC
    pacing challenges, and future shipbuilding for the Virginia and
    Columbia class submarines are already strained and would be set back
    further by FRA sequestration.
        Question. I firmly believe in the strong deterrence effect created
    by our nuclear programs, including the Sentinel program. Sentinel will
    replace the Minuteman III intercontinental ballistic missile, but due
    to cost and schedule delays, the program is currently under review.
    Even before these cost increases, there was little to no margin in the
    schedule to replace the Minuteman III before the end of its service
    life in 2036.
        General Brown, some suggest that one way to reduce cost of the
    Sentinel program is to reduce the number of our nuclear-capable
    interceptors at our 3 ICBM sites. What would the operational impact of
    that reduction be, and do you agree with that assessment?
        Answer. The replacement for the ground-based leg of the nuclear
    triad, the Sentinel weapon system, remains one of the largest, most
    complex programs within the Department. Reduction in the quantity of
    Sentinel missiles at each base would undermine DoD's ability to achieve
    Presidential objectives and DoD employment guidance ascribed to the
    Land Leg of the Triad. The Department notified Congress in January 2024
    that Sentinel had experienced a critical cost overrun, and reviewed the
    program as required under the Nunn-McCurdy Act. This review considered
    a range of alternatives to the program, to include fielding a smaller
    silo-based force. The review concluded that there is no alternative to
    Sentinel itself that provides acceptable capability to meet the joint
    military requirement at less cost.
        Question. I have repeatedly called upon Secretary Mayorkas and
    President Biden to step up and secure the southwest border. The status
    quo is not working, despite the assistance of our troops. DHS continues
    to rely on DoD support at the southwest border. But once again, no
    funding is included in the budget for DoD personnel and operations.
        General Brown, the Homeland Security budget request includes $114
    million to buy and deploy technology at the border to reduce the number
    of DoD troops required there. In your assessment, will this technology
    help stop the deadly flow of fentanyl coming across the border that is
    hurting Montana communities?
        Answer. I am proud of the men and women of the Joint Force as they
    stand ready to support the whole of government approach to every
    challenge our nation faces. In regard to the southwest border, our
    joint warfighters have continued to answer the call in support of the
    Department of Homeland Security mission of border security to include
    countering the cross- border flow of fentanyl. While our warfighters
    have supported this mission with highest honors, I must defer to the
    Department of Homeland Security on the assessment of the effectiveness
    of employment and deployment of technology to assist in combatting the
    flow of fentanyl across the border.
        Question. Two months ago, in response to a growing humanitarian
    crisis, the President directed the Department of Defense to establish a
    pier on the Gaza coastline to provide critical food and water
    deliveries for Palestinian civilians. The initial estimate for 60 days
    of operations was $154 million; we understand that DoD now estimates
    the cost to be $320 million for 90 days of operations.
        General Brown, how much risk are U.S. service members under while
    supporting this operation? What measures are in place to protect U.S.
    forces?
        Answer. I am extremely proud of the joint warfighters that
    supported the Gaza aid pier and all of the leadership that supported
    the planning and execution through all of the challenges. The primary
    mitigation measures put in place were 1) General Officer (ARCENT
    Commander) leadership on the ground with daily risk assessments, 2)
    multiple defensive capabilities at sea and on land to protect U.S.
    Service Members from any form of threat (air, direct fire, and indirect
    fire), and 3) daily threat analysis that drove Commander decisionmaking
    and execution on the ground. As a result of these mitigation measures,
    risk to force was LOW and there were zero casualties, wounded or
    killed, that resulted from the threat environment in and around Gaza.
        Question. In recent years, Congress has established unprecedented
    acquisition and budget authorities to drive more innovation into DoD.
    Yet the results are mixed: many of these programs suffer from cost
    overruns and schedule delays, and we have yet to see prototypes
    successfully fielded at scale. My concern is that we are at risk of
    falling into the trap of `perennial prototyping', and not actually
    delivering capability in relevant numbers to our troops by increasing
    procurement.
        General Brown, for years, research and development funding has been
    used to mature and prototype technologies like hypersonic weapons and
    artificial intelligence. These technologies would give us decisive
    capabilities in a near-peer competition with China, so when will they
    become real programs that are fielded at scale?
        Answer. Our Nation needs us to both be ready to fight today's
    battles and prepare for tomorrow's wars. We must prepare by modernizing
    and aggressively leading with new concepts and approaches. The Joint
    Warfighting Concept (JWC) provides a framework for how the Joint Force
    will modernize and how we will fight in a future conflict. We must
    modernize our force, through innovation and by building a bridge to the
    defense industry to deliver capability in a timely manner. As we work
    to shorten the timeline between prototype and program of record, there
    is growing importance for collaboration between the Services, our
    industry partners, and Congress to deliver at scale, develop training
    programs, and provide required sustainment so our warfighters can
    operationalize the delivered capabilities.
        To accomplish this, the Department has established programs that
    are laser focused on transitioning prototype technology across the
    valley of death and at scale. For example, the Replicator initiative is
    a Department-wide effort to expedite innovation adoption within the
    Department while enhancing adaptability and resiliency in warfighting
    strategy. Also, the Rapid Defense Experimentation Reserve is a whole-
    of-Department effort focused on advanced technologies to close gaps in
    the JWC's required capabilities. Finally, the Department is championing
    the newly established Accelerate the Procurement and Fielding of
    Innovative Technologies (APFIT) program to inject small-business
    oriented programs with required funding to bridge them from development
    into production, accelerating production by one to 2 years earlier than
    previously baselined.
                                     ______

              Questions Submitted by Senator Shelley Moore Capito
        Question. Has the Biden Administration made a policy decision to
    withhold certain weapons from delivery to the State of Israel?
        Please provide the list of weapons this policy applies to.
        Answer. This policy applied only to one shipment of 2,000-pound
    bombs and 500-pound bombs. Subsequently, the 500-pound bombs have been
    delivered.
        Question. What is the reason for this decision?
        Answer. The Department, under the Administration's direction,
    paused the shipments with a focus on the end-use of the 2,000-pound
    bombs and the impact they could have on the safety of the Palestinian
    civilians.
        Question. Were Israeli officials notified in advance of this course
    of action?
        Answer. The Department maintains persistent communication with
    Israeli officials in order to communicate all security assistance
    actions, including this action.
        Question. Is it possible for Israel to achieve its strategic and
    operational objectives without entering Rafah?
        If so, how?
        Answer. Precision in operational execution is a luxury that the
    U.S. Military and only a few of our allies has at their disposal. Major
    ground combat operations is not the only strategy that can effectively
    defeat Hamas. Alternatives do not preclude Israeli military operations
    in Rafah where Hamas has embedded itself with the civilian population.
    Such alternatives may focus on targeted raids, precision strikes, the
    safe and timely evacuation of civilians from the battlespace, the
    protection of civilians, and the facilitation of humanitarian
    assistance.
        Question. The Administration has stressed that it is only pausing
    deliveries of offensive weapons and has continued to deliver defensive
    systems to Israel. What is the Department's assessment of the reduction
    in Israel's ability to deter aggression from Iran, Hezbollah, and Hamas
    if the United States publicly pauses deliveries of offensive weapons?
        Answer. We have continued to provide both offensive and defensive
    systems to Israel. The Department, under the Administration's
    direction, paused the shipment of 2,000-pound bombs, but continued the
    deliveries of other weapons, munitions, and equipment, including 500-
    pound bombs.
        Our continuous adjustments to force posture and security assistance
    have continued to promote regional stability and deter attacks from
    adversaries.

        Senator Tester. Special thank you, even though you didn't
    say one word, Mike McCord, thank you very, very much. You are a
    critical part, critical component of making all this stuff
    work, and I want to recognize your good work. Thank you very,
    very much.
        Mr. McCord. Thank you, Chairman. And I appreciate the
    opportunity to engage with this subcommittee throughout the
    year in multiple forums.

                              SUBCOMMITTEE RECESS

        Senator Tester. Absolutely. This subcommittee is going to
    reconvene on Wednesday, May 15, at 10 a.m. to hear from the
    Under Secretary of Defense for Acquisition and Service
    Acquisition Executives.
        As of right now, we stand in recess.
        [Whereupon, at 11:58 a.m., Wednesday, May 8, the
    subcommittee was recessed, to reconvene at 10 a.m., Wednesday,
    May 15.]

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2025

                                  ----------

                            WEDNESDAY, MAY 15, 2024

                                           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, Reed, Baldwin, Shaheen, Murphy,
    Coons, Murkowski, Moran, Hoeven, and Boozman.

                             DEPARTMENT OF DEFENSE

                          Defense Acquisition Programs

    STATEMENT OF HON. DR. WILLIAM A. LAPLANTE, UNDER
                SECRETARY OF DEFENSE FOR ACQUISITION AND
                SUSTAINMENT

                    OPENING STATEMENT OF SENATOR JON TESTER

        Senator Tester. We'll call this committee to order. Good
    morning. Today, we're going to hear from the Department of
    Defense's Acquisition Experts. We want to welcome Under
    Secretary of Defense for Acquisition, Dr. William A. LaPlante
    and the service acquisition executives Douglas R. Bush,
    Nickolas H. Guertin, and Andrew P. Hunter.
        Welcome gentlemen. Your leadership is vital to getting
    capability into the hands of our war fighters and to modernize
    our force. And I want to thank you all for being here. I want
    to point out that the Space Force brethren are absent today and
    it's because we will have a classified hearing to discuss space
    related matters in a few weeks.
        The fiscal year 2025 budget request for the development and
    procurement of weapons systems is $310.7 billion. While the
    Fiscal Responsibility Act required you to make some tough
    decisions on certain programs, this is not an insignificant
    number. So, we're having this hearing to better understand how
    the department leverages those resources to field the programs
    that we need, preferably on time and on budget.
        After multiple continuing resolutions, Congress finally
    enacted the fiscal year 2024 appropriations bill just last
    March. However, in many instances, the funds necessary to
    execute acquisition programs are still not in the hands of the
    program managers. Many factors affect getting acquisition
    right, but it cannot be denied that repeating continuing
    resolutions affect the ability of program managers to
    effectively get the most bang for the taxpayers' buck and feel
    the programs on cost and on schedule.
        That said, over the past 5 years, Congress has provided the
    Department of Defense several new acquisition authorities and
    funding flexibilities. Such as Rapid Prototyping Authority and
    the establishment of software pilot projects. Recent
    appropriations bills have also supported numerous DOD
    (Department of Defense) initiatives to facilitate rapid
    innovation outside of traditional budget cycle. Yet the reviews
    are mixed. A recent Navy study showed that most ship building
    programs are over budget and behind schedule;
        The Air Force's Sentinel Program incurred a Nunn McCurdy
    breach and is on review; and the Army recently terminated its
    fourth attempt in 20 years to modernize its scout helicopter.
    We'll continue to work with the Department of ways to improve
    the acquisition process but I must say we all share
    responsibility for the state of our acquisition enterprise; and
    I would tell you that it isn't good, and for a number of
    reasons.
        Number one, Congress needs to enact appropriation bills on
    time. The department needs to stabilize its program
    requirements, utilize realistic acquisition strategies, and
    request the right amount of funding and sign good contracts,
    and industry needs to flat out deliver on time. DOD acquisition
    is not an academic exercise. It's is responsible for getting
    the war fighter what it needs, when they need it so that they
    can do their job in an increasingly dangerous world.
        I look forward to hearing from each of you on how we can do
    better. Senator Murkowski will be joining us shortly. She will
    have a few statements. Susan is not here at this moment in time
    but she will put her opening. I ask unanimous consent that her
    opening statement be put into the record.
        [The statement follows:]
                 Prepared Statement of Senator Susan M. Collins
        Thank you, Chairman Tester, for holding this hearing. This is the
    first time that I can remember having the acquisition leadership of the
    Department of Defense appear before the Subcommittee together.
        This hearing reflects the growing need to improve acquisition
    outcomes through applying the lessons of past acquisition programs--
    both good and bad. We also want to ensure that cutting-edge innovation
    happening around the United States as well as with our allies can be
    fielded as rapidly as possible to address our most difficult military
    threats and to better protect the warfighter.
        On lessons learned, I have had a front row seat on how not to build
    a lead ship and how uncertainty can lead to years of damage to the
    industrial base. When the Navy abruptly reduced the number of DDG-1000
    ships from 32 to 11 and finally to just three after the Navy decided to
    buy DDG-51s again, this created extremely challenging circumstances for
    large surface combatant shipbuilders and their suppliers that
    reverberated for many years. I am pleased to see the three ships of the
    Zumwalt-class are now being outfitted to carry the Navy's first
    hypersonic weapons, but there are many lessons to be learned from that
    program.
        On a positive note, I have also seen great benefits in both cost
    savings and industrial base stability from multi-year procurement
    contracts. Five multi-year contracts have formed the foundation of the
    DDG-51 program since 1998. I supported the expanded use of these
    contracts to munitions in the FY24 appropriations bill. I would welcome
    an update from our witnesses on what other steps the Department is
    taking to ensure the industrial base is postured to manufacture the
    weapons our military requires.
        Shifting to innovation, I see three obstacles to innovation that
    need to be addressed. First, too often the career incentives for DoD
    program managers inhibit innovation. I am concerned that military
    program managers are rewarded for embracing the status quo and not
    taking prudent risks.
        Second, the civilian personnel system at DoD too often is slow and
    overly bureaucratic. I was recently briefed on a major defense
    acquisition program where the number of DoD civilians involved grew 10-
    fold. As the small army of acquisition professionals went about
    validating the technology, one of the design reviews resulted in
    literally thousands of comments, all of which must be addressed before
    the program moves forward.
        Third, we have to make it easier for a small, innovative company
    with useful technology for the warfighter to penetrate the Pentagon
    bureaucracy. The first budget that included Air Force Secretary Frank
    Kendall's highest priority capabilities for great power competition was
    the budget signed into law a month and a half ago. Yet, he has been
    Secretary for nearly 3 years and identified these needs at the
    beginning of his tenure! If that is the fastest Secretary Kendall can
    go, think about how much more difficult it is for a small business
    owner who has not been steeped in defense issues for 50 years.
        In our last defense appropriations bill, we took a number of steps
    aimed at making it easier to bring more innovation into the Department,
    including a one billion dollar investment in the Defense Innovation
    Unit and accelerating roughly $300 million for the Replicator
    initiative, even though funding for it was not originally included in
    the budget request for 2024.
        It is now up to the Department and each of you to make sure that
    these investments translate into fielded capabilities for our Soldiers,
    Airmen, Sailors, Marines, and Guardians.
        Lastly, but perhaps most important, we must acknowledge that more
    money and more flexible authorities cannot solve all these problems. At
    the end of the day, there's no substitute for sound acquisition best
    practices implemented by smart, savvy, experienced program managers at
    DoD.
        There is clearly much to discuss today. I look forward to hearing
    from our distinguished witnesses.

        Senator Tester. With that we will start with you Dr.
    LaPlante, for your opening statement. I believe--hang on for a
    second. Yes.
        Each one of you have 3 minutes. Know that your full written
    testimony will be a part of the record. Go ahead, Dr. LaPlante,
    you have the floor.

                  SUMMARY STATEMENT OF DR. WILLIAM A. LAPLANTE

        Dr. LaPlante. Yes. Thanks Chairman Tester and Ranking
    Member Collins, who I know will be here and distinguished
    members of the subcommittee. Thanks to all of you. It's a
    pleasure to be here today with our service acquisition
    executives representing department's acquisition and
    sustainment. As the Chairman just said in recent years, thanks
    to you all, you've given us more authorities, more ways to do
    acquisition, increasing flexibility in getting--to get things
    at speed and capability and we really appreciate it.
        We will give you in this hearing and to the extent that you
    have questions and talk about it. Examples of what seems to be
    working there, where still the challenges but an example of
    what you've given us and how it's being used are the middle
    tier acquisition authorities, rapid fielding, rapid prototyping
    that is being used right now by my three colleagues down the
    table, as well as the Space Force and putting together
    proliferated Leo Constellation.
        So, a lot of goodness happening there. The Army of course,
    has also done things with the Software Pathway as well as
    others, and Mr. Bush can talk to the Integrated Air and Missile
    Defense which uses Software Acquisition Pathway in a hybrid
    form. In overall there's 60 programs that are using Software
    Pathway, and that's only been with us a few years. So, it shows
    you what we've been able to do with your help. I think we need
    to do a lot more, but anyway, it's a positive sign.
        The other piece is flexible contracting. As the Chairman
    said, contracting is a key part of this. What we've relearned
    or learned or relearned in Ukraine is the department can do
    contracting extraordinarily fast when it puts its mind to it.
    We have methods like the Undefinitized Contracting Actions, or
    UCA, that can be put in place within days or weeks.
        And I would say in Ukraine we've seen that. There's no
    reason we can't extend that and continue that across other
    contracts in the Department of Defense. Another very important
    tool that you've given us and industry has paid attention is
    multi-year procurements for munitions. Thank you for giving us
    this. And it shows a degree of trust.
        Industry has been saying for years we don't see a demand
    signal. We need to understand a demand signal. A lot of us have
    been frustrated by that saying what else do you need, we've got
    all these supplementals coming. Well, I think what the multi-
    year shows is that we're committed in these cases for those
    contracts, that it won't be a one and done in 1 year. It's
    going to be in multiple years and we'll get the savings
    appropriate with it and your help in getting those multi-years
    are a big part of it.
        We've also done things with the service and service
    specific acquisitions. I would say when you're talking about
    acquisition there's really three legs of the stool. One leg is
    acquisition, which is the contract. The second is the
    requirement and this is what the Chairman was talking about
    getting what the department needs right for the war fighter.
    And the third is having the money in the right year.
        Those three legs of that stool moving across all three in
    an agile fashion is the secret of really effective acquisition.
    And so, we remind the service acquisition executive that and we
    work with folks like this committee to make sure we can move
    across that.
        Again, I think there's a lot that we can talk about.
    There's a lot of good that has happened at acquisition,
    continues to happen. We also have a lot more work to do. So,
    subject to the later questions, that's my opening statement.
        [The statement follows:]
                 Prepared Statement of Dr. William A. Laplante
                         i. introduction and background
        Chairman Tester, Ranking Member Collins, and distinguished Members
    of the Senate Appropriations Subcommittee on Defense, thank you for the
    opportunity to testify today on Department of Defense (DoD) acquisition
    programs.
        I am honored to be here alongside the Service Acquisitions
    Executives (SAEs) from the Army, Navy, and Air Force representing the
    Department's 187,000 acquisition and sustainment professionals.
    Together, they are building enduring advantages for our nation, allies,
    and partners every day by delivering capability quickly and cost
    effectively at scale.
        Acquisition is a profession and an expertise that takes an
    incredible amount of knowledge and skill built over time. Put simply,
    our warfighters are successful largely because of the acquisition
    workforce and as the Department's acquisition leadership, the SAEs and
    I are immensely proud of the work these professionals conduct to pace
    the challenges we face as a nation.
        As outlined in the 2022 National Defense Strategy (NDS), the
    Department of Defense identifies four top-level defense priorities to
    strengthen deterrence, including defending the homeland; deterring
    strategic attack against the United States, our allies, and partners;
    deterring aggression and being prepared to prevail in conflict when
    necessary; and to ensure our future military advantage. While the
    People's Republic of China (PRC) remains our pacing challenge, the
    United States and our allies are also actively and concurrently
    providing security assistance in Europe and the Middle East.
        For those of us in the acquisition world, the NDS is a call to
    action. Building enduring advantages to enable integrated deterrence
    requires the right mix of capabilities and technologies woven together
    to defend against current and future threats. Our acquisition system
    must be able to deliver secure, resilient, and preeminent capabilities
    quickly and at scale--and we remain committed to using all of the tools
    and authorities available to do so at speed and scale.
                       ii. the defense acquisition system
        In recent years, DoD redesigned and reissued its acquisition
    policies to improve responsiveness to warfighter requirements. The
    Adaptive Acquisition Framework (AAF) comprises six ``pathways,'' each
    tailored to the unique characteristics and risks of the capability
    being acquired and reflecting modern business practice.
        Section 804 of the Fiscal Year 2016 (FY16) National Defense
    Authorization Act (NDAA) authorized the operation of the Middle Tier of
    Acquisition (MTA). This authority allows the Department to rapidly
    develop fieldable prototypes to demonstrate new capabilities, or to
    rapidly field production quantities of systems with proven technology
    that require minimal development. Since receiving MTA authority from
    Congress, programs across every Service have used the pathway to
    deliver capability faster or accelerate ``traditional'' acquisition
    processes by combining MTAs with other AAF pathways.
        For example, Space Development Agency is using MTA to harness
    commercial development for increased speed and lower costs. Through a
    spiral development strategy that plans to infuse new technology every 2
    years using MTA, the agency will be able to be more responsive to
    warfighter needs in delivering a proliferated space architecture.
    Additionally, the Army's M10 Booker Combat Vehicle, formerly known as
    Mobile Protected Firepower, used MTA to prototype and refine
    requirements before transitioning to the Major Capability Acquisition
    pathway for full-rate production. There are currently 106 total
    programs using the MTA pathway representing more than $24 billion
    across the Future Years Defense Program (FYDP). Of the 236 programs
    that have utilized the MTA pathway since the policy went into effect,
    three have transitioned to full operational capability, 107 have
    transitioned to another acquisition pathway, and 15 have terminated.
        Similarly, Section 800 of the FY20 NDAA provided statutory
    flexibilities for the creation of the Software Acquisition pathway.
    This pathway helps relieve programs from procedural bottlenecks of
    major defense acquisition programs and the Joint Capability Integration
    and Development System (JCIDS) process, instead driving DoD away from
    waterfall approaches to focus on rapid, iterative software delivery
    with active user involvement. Together, these authorities have allowed
    us to focus on delivering smaller increments of software capability
    faster, incrementally generating requirements, prioritizing customer
    participation throughout capability development, and increasing the use
    of automated testing. Today, there are more than 60 programs using the
    software pathway.
        We are actively reviewing lessons learned from our initial AAF
    implementation and determining both where policy updates may be needed
    as well as where workforce development efforts can be bolstered to
    ensure comprehensive understanding and application of the AAF pathways'
    flexibilities.
        Beyond the AAF, the Department is further tailoring acquisition
    approaches through a range of complimentary contracting authorities
    such as Other Transactions (OT) and Commercial Solutions Openings
    (CSO). Over the past 7 years, DoD's use of OT agreements for prototype
    projects has increased from $620 million in FY15 to more than $15.5
    billion in FY23. Last year, we published an updated DoD OT Guide to
    address recent changes in statute and regulation, as well as
    recommendations from the DoD Inspector General and Government
    Accountability Office. The Defense Acquisition University has likewise
    increased dedicated resources to educate acquisition professionals on
    best practices for OT use, including the introduction of the OTA
    Credential, training courses, and focused webinars.
        Section 803 of the FY22 NDAA similarly provided DoD with permanent
    authority to use CSOs to competitively select proposals received in
    response to a general solicitation based on review by scientific,
    technological, or other subject-matter expert peers. The authority was
    used in the Federal COVID-19 response to procure quantities of
    therapeutics worth more than $20 billion in obligations since the
    summer of 2020. In FY23, the Department executed 163 actions with an
    aggregate value of $1.8 billion under the CSO authority.
        Under Section 1244(a) of the FY23 NDAA, the Department also
    continues using flexible procurement authorities to rapidly acquire
    munitions, equipment, and other support for Ukraine, Israel, Taiwan,
    and other allies as well as to replenish DoD stocks. Such flexibilities
    include use of other than competitive procedures, Special Emergency
    Procurement Authorities (SEPA), Undefinitized Contract Actions (UCA),
    temporary exemption from certified cost or pricing data requirements,
    and delegation of some sole source justification approvals. As a
    result, contracts that used to take months are being awarded in a
    matter of weeks and the cumulative effect is the rapid acceleration and
    sustainment of critical systems and munitions.
        These authorities have already been used by the Army and Air Force,
    and we anticipate additional use throughout the period extended through
    2026.
                        iii. major acquisition programs
        While Section 825 of the FY16 NDAA delegated milestone decision
    authority (MDA) for most major defense acquisition programs (MDAPs) to
    the SAE of the military department or component that is managing the
    respective program, I remain the MDA for 11 of the Department's largest
    and special interest programs. This includes the B-21 Raider, COLUMBIA-
    class submarine, and Sentinel programs that make up our nuclear triad,
    as well as the F-35 Joint Strike Fighter.
        As stated in the NDS, nothing the Department does is more important
    than deterring strategic attack. Our nuclear forces serve to deter
    nuclear employment of any scale directed against the U.S. homeland or
    the territory of allies and partners. For the foreseeable future,
    nuclear weapons will continue to provide unique deterrence effects that
    no other element of U.S. military power can replace. The 2022 Nuclear
    Posture Review reaffirmed the longstanding conclusion that the
    combination of all three triad legs is the best approach to maintaining
    strategic stability. For the air-based leg of the triad, the B-21
    Raider entered productionin 2023 and will replace the B-2 and
    conventional-only B-1 bombers. The B-21 will be a visible and flexible
    deterrent capability for decades to come, and provide operational
    flexibility across a wide range of military objectives.
        The B-21 Raider entered limited rate production in November 2023
    and the program is currently conducting its flight test campaigns. The
    program is on track to procure a minimum of 100 aircraft and continues
    to successfully execute within cost, schedule, and performance goals
    defined in the government's Acquisition Program Baseline (APB). B-21
    remains on track to meet its key performance parameter for Average
    Procurement Unit Cost (APUC) of $550 million in Base Year 2010 dollars
    and has negotiated fixed price production options for the first 40
    aircraft.
        The Long-Range Standoff (LRSO) weapon will likewise replace the
    nuclear-armed AGM-86B Air Launched Cruise Missile. The LRSO program is
    a joint effort involving DoD and Department of Energy National Nuclear
    Security Administration (DOE/NNSA), with the Air Force responsible for
    cruise missile development and integration and DOE/NNSA responsible for
    the W80-4 warhead. With the ability to penetrate and survive advanced
    integrated air defense systems, the LRSO program will maintain the
    viability of the B-52H fleet for the nuclear mission and ensure the
    United States continues to field a visible, flexible, and credible
    nuclear deterrent through the airborne leg of the triad. The LRSO
    program is meeting cost, schedule, and performance measures in
    successfully progressing through the Engineering and Manufacturing
    Development Phase. The program remains on track to meet its planned
    fielding date.
        For the first time since the 1980s, the Navy is building a new
    class of Ballistic Missile Submarine (SSBN). As recently announced, the
    Navy is projecting to deliver the first COLUMBIA-Class SSBN 12-to-16
    months late based on current shipbuilder performance.
        Lead ship delivery schedule remains at risk due to challenges with
    first-time construction as well as the availability of specialized
    industrial capabilities and facilities, adequate work force recruitment
    and development, and supply chain and material availability across the
    nuclear enterprise. Currently, all options to recover schedule are
    being considered for the COLUMBIA-Class. The COLUMBIA Class will
    eventually be equipped with the modernized Trident II D5 Life-Extension
    2 strategic weapon system, which will ensure the effectiveness of the
    sea-based leg of the triad through the 2080s. The COLUMBIA-Class SSBN
    remains a critical component of our triad modernization efforts, and
    DoD will continue to explore all options to drive improvement in
    schedule and mitigate associated risk.
        The modernization of the land-based leg of the triad through the
    Sentinel program is the most complex program the Air Force has
    undertaken in decades. The program is intended to replace the Minuteman
    III weapon system with new missiles, command and launch infrastructure,
    support equipment, and trainers. On January 18, 2024, the Air Force
    formally notified Congress and DoD of a critical Nunn-McCurdy breach
    for the Sentinel program. The Office of the Under Secretary of Defense
    for Acquisition and Sustainment (OUSD(A&S)) is executing its statutory
    responsibilities by conducting a robust review of the program and a
    detailed root cause analysis. OUSD(A&S) has assembled six review teams
    that are assessing all aspects of the program's schedule and cost
    growth to ensure the review is comprehensive and accounts for all
    potential sources of change. We expect to complete this in-depth
    examination of the Sentinel program in the timeframe required by
    statue. It is also important to note that even while we execute this
    review process, every day, the Air Force and DoD are actively
    mitigating program risks to ensure there are no capability gaps as we
    maintain our Nation's nuclear deterrent.
        The F-35 is the most capable multi-role fighter aircraft anywhere
    in the world, and it is integral to our concept of integrated
    deterrence. As the preferred choice of our military services, allies
    and partners, the F-35 acquisition program also represents a strategic
    instrument of foreign diplomacy and a model for co-development, co-
    production, and co-sustainment activities. In March 2024, I approved
    the F-35 acquisition program's Milestone C and Full-Rate Production
    Decision, formally authorizing entrance into the Operations and Support
    acquisition phase. With more than 990 F-35s delivered, the program has
    demonstrated production stability, agility, and mature manufacturing
    processes, and F-35 is ready to fight tonight. In addition to the
    United States, around the world, 17 countries have acquired or plan to
    acquire F-35s.
        The F-35 program continues to address challenges with modernization
    efforts. Development and fielding of Technology Refresh 3 is taking far
    too long to deliver, and the program seeks to provide a truncated,
    training version of the software later this calendar year. Block 4
    development is re-baselining the most crucial capabilities into a
    future F-35 major subprogram structure on a combat-relevant timeframe,
    which will improve reportability and increase acquisition oversight.
    Additionally, Engine Power Thermal Management Modernization efforts are
    conducting technology maturation and risk reduction to support future
    F-35 mission capabilities and sustainment. Continued F-35 modernization
    is essential to keep pace with our adversaries, we just need to deliver
    these capabilities sooner.
                                iv. integration
        As we continue to drive the cultural shift to embrace flexible
    acquisition and contracting authorities granted by Congress in recent
    years, we also recognize that the integration of emerging technologies
    into existing capability is critical.
        The complexity of today's security environment demands a joint
    force that is underpinned by integrated system-of-systems capabilities
    in order to outpace adversaries that are unbounded by specific missions
    or Service structures. This requires aligning efforts across the
    Department, holistically looking more broadly across the entire
    ``three-legged stool'' that comprises enterprise acquisition to solve
    these challenges: (1) requirements development through the Joint
    Capabilities Integration and Development System (JCIDS), (2) resourcing
    through the Planning, Programming, Budgeting, and Execution (PPBE)
    process, and (3) program management through the Defense Acquisition
    System (DAS).
        To align disconnected, Service-specific system acquisitions and
    better inform requirements and resourcing needs, my office established
    a new Acquisition Integration and Interoperability, or AI2,
    organization. This team is translating portfolio management gaps into
    joint system-of-systems technical solutions and acquisition strategies.
    AI2's efforts are aligning and delivering key joint capabilities by
    closing seams between requirements while institutionalizing lessons
    learned through Competitive Advantage Pathfinders (CAPs) and
    Department-wide processes such as Integrated Acquisition Portfolio
    Reviews (IAPRs).
        In February 2022, the Deputy Secretary of Defense established CAPs
    to identify barriers in capability fielding resulting from disconnects
    among the three ``legs,'' as well as to subsequently demonstrate
    corresponding solutions. Six pathfinders comprising the first CAPs
    Sprint demonstrated several successes in accelerating capability
    delivery and identifying scalable reforms. The second Sprint, which is
    currently ongoing, includes seven pathfinders that are illuminating
    actionable recommendations to institutionalize acquisition approaches,
    lessons-learned, and enduring policy reforms across the Department. In
    most cases, pathfinder programs are accelerating capability deliveries
    by an average of two to 4 years--and often without any additional
    funding. Instead, they are focusing on modular, open systems approaches
    to streamline development and cross-Service integration. Each CAP
    program necessitates stakeholders across the Department coming together
    to solve problems in innovative ways, driving not only process
    efficiencies but also identifying how solutions can scale to similar
    mission sets.
        For example, CAPs have proven that development cycles can be
    shortened by taking advantage of existing investments, open
    architectures, and cross-Service use of technologies. By partnering
    with the Navy, the Army didn't have to start at the design or
    development stages when they began investigating improved electronic
    warfare (EW) technologies. Modularity of Navy shipboard EW components
    enabled near-direct use on ground vehicles, allowing the Army to
    successfully enter at the demonstration stage with minimal hardware,
    software, or firmware changes. From ship to shore, the EW capability
    provides the ability to degrade and deny adversary sensors for both
    Navy and Army missions from the same set of equipment.
        Similarly, a Navy capability called Medusa provides vital ship-
    based situational awareness and electronic attack functions to degrade
    and deny adversary anti-access/area denial capabilities. Previously,
    this capability has been too large for aircraft to use in highly
    contested environments; however, through a CAP, the Navy and Air Force
    are developing a new, miniaturized capability that compacts the ship-
    based system into a size, weight, and power that is suitable for
    aviation platforms. Aptly called Pegasus, when deployed, the capability
    will significantly reduce risk to ship and aircraft during a range of
    critical missions from air anti-submarine warfare and expeditionary
    troop movement to anti-surface warfare combat search and rescue. By
    leveraging the CAPs approach, the effort has shaved nearly 3 years off
    the development cycle: the time from funding availability through
    development completion is estimated to be only 18 months. This
    pathfinder has likewise demonstrated that the broader set of DoD
    platforms with this antenna configuration are immediate candidates to
    benefit from this capability, ultimately delivering situational
    awareness and electronic attack functions at scale to benefit our
    warfighters.
        The Department has a relatively good track record of delivering on
    deliberate, long-term acquisitions to modernize major platforms and
    systems of the Joint Force--albeit with some continued challenges for
    containing cost growth--as demonstrated by the technological advantage
    we maintain over our adversaries. The Department appreciates the
    authorities granted by Congress in recent years that enabled the AAF
    reforms and a more robust contracting toolbox to accelerate the DAS
    where practical and appropriate. However, as the pace at which those
    adversaries accelerate their own technological advancement, the
    scalable reforms being identified by CAPs present additional
    opportunity to further enable speed across the ``three legs'' beyond
    the DAS.
        For example, increasing flexibility for relatively small subsets of
    the Department's total budget would allow DoD to be more responsive to
    emergent and evolving threats. In certain instances, such as counter-
    unmanned aircraft system (c-UAS) capabilities in Ukraine, we're seeing
    the threat change and adapt as frequently as every two weeks. Coupled
    with the devastating events at Tower 22, having funding aligned with
    the prosecution of capability areas as opposed to specific, by-name
    systems would better enable procurement to outpace adversarial
    advancements and mitigate the risk posed by UAS to our Service members,
    allies, and partners worldwide. Our resourcing agility must match or
    exceed the adversary's ability to field agile capabilities. I applaud
    the work of the PPBE Commission and look forward to continued
    partnership with the Committee on areas for potential implementation.
        We also recognize that cultural reform and partnership is critical
    to institutionalizing CAPs across the Department. Defense Acquisition
    University (DAU) is developing educational resources and courses to
    increase awareness and utilization of the many tools and approaches
    that CAPs have illuminated.
        To better identify and address interdependencies and critical
    risks, we continue to build, refine, and align capability portfolio
    management approaches across the Department. Integrated Acquisition
    Portfolio Reviews (IAPRs) are holistic reviews that bring together
    stakeholders across the Office of the Secretary of Defense and the SAEs
    to look at a specific mission thread--such as nuclear command, control,
    and communications (NC3) or integrated air and missile defense--to
    assess and prioritize static portfolio requirements and risks
    associated with dynamic mission-based requirements. At their core,
    IAPRs strengthen the synchronization of warfighting concepts,
    requirements, technologies, and program execution to directly align
    decisionmaking with operational needs. Through this mission engineering
    mindset and focusing on the kill chain, IAPRs ultimately deliver
    integrated suites of capabilities that are collectively stronger
    together than the sum of their parts.
        Last year, we conducted five IAPRs focused on sustainment, NC3
    situation monitoring and conferencing, air and cruise missile defense
    of the homeland, cyber hardening of priority defense systems, and
    tactical air capabilities for air-to-air and air-to-ground missions.
    Each continued to illuminate the need for greater integration and
    interoperability across systems and portfolios as threats increasingly
    require the development of more complex warfighting capabilities
    spanning multiple Services, systems, and operating domains.
        Earlier this year, the Deputy Secretary of Defense also signed DoD
    Directive 7045.20, Capability Portfolio Management, that established
    the policy for using portfolio management across the Department to
    advise senior leadership on capability investment, divestment, and
    management. The policy aligns the Joint Staff requirements and Office
    of the Under Secretary of Defense for Research and Engineering's
    science and technology efforts to support IAPRs.
                             v. production at scale
        Regardless of which AAF pathway--or combination of pathways--is
    employed, a clear acquisition strategy to production at scale is
    fundamental. Simply stated, if a technology is not in production, we
    are not providing our warfighters the capabilities they need.
        The conflicts in Ukraine and Israel have put into sharp focus
    significant challenges across both domestic manufacturing and
    international supply chains. While we are seeing new, innovative
    combinations of technologies and concepts being developed and
    implemented on the battlefield in mere months, if not weeks, the
    conflicts have illuminated the enduring need for a strong, secure, and
    resilient industrial base to deliver and sustain capabilities at scale.
        Following the end of the Cold War and the resulting decrease in
    anticipated demand, the traditional defense industrial base
    restructured itself. Consistent investments in the defense industrial
    base decreased dramatically, production capacity shrank, defense-
    oriented companies consolidated significantly, and the associated
    manufacturing and production workforce declined by nearly two-thirds.
    For example, the submarine and shipbuilding sector alone will need to
    hire thousands of skilled workers to continue the production cadence of
    all three Navy nuclear platforms, including the COLUMBIA-Class and
    VIRGINIA-Class submarines.
        As across the broader global economy, we remain challenged by the
    tyranny of lead time. Producing nearly any modern munition--such as a
    Javelin, Stinger missile, or Guided Multiple Launch Rocket System
    (GMLRS)--still takes at least two to 3 years, and their complex
    production lines cannot immediately be turned on or off overnight.
    Industry also reasonably remains reluctant to build additional capacity
    ``at risk'' until they have a clear, consistent demand signal from DoD,
    often with specific procurement quantities contracted for multiple
    years.
        To ensure we pace the challenges outlines in the NDS, we cannot
    continue the ``feast or famine'' behavior we've typically employed each
    time a contingency arises. The FY23 NDAA, as amended by the FY24 NDAA,
    authorized multiyear procurement (MYP) contract authorities for 20
    munitions programs to create the stability those suppliers need to
    accelerate procurement. This type of language enables the Department to
    enter more economical procurements from suppliers and more efficient
    production as compared to a series of annual contracts. The Army
    subsequently awarded and is executing the first five MYP contracts for
    aspects of 155mm artillery ammunition production, to include metal
    parts and containers, and load, assemble, and pack.
        The Department appreciates the Committee's approval of MYPs for
    GMLRS, Patriot PAC-3, Naval Strike Missile (NSM), Advanced Medium-Range
    Air-to-Air Missile (AMRAAM), Long-Range Anti-Ship Missile (LRASM), and
    Joint Air-to-Surface Standoff Missile--Extended Range (JASSM-ER) in the
    FY24 budget and intends to execute MYP contracts for the majority of
    these systems throughout the Fiscal Year. However, to fully realize the
    cost savings and strategic benefits afforded by MYPs, I welcome the
    opportunity to further collaborate on funding for Advanced Procurement
    of long-lead items and subcomponent materials that underpin production
    of critical systems.
        The first-ever National Defense Industrial Strategy (NDIS), which
    my office published earlier this year, is likewise intended to guide
    the Department's engagement, policy development, and investment in the
    industrial base over the next three to 5 years. As the strategy
    outlines, our industrial base is hampered by workforce challenges,
    brittle supply chains, a lack of excess industrial capacity, and
    inconsistent demand signals from the DoD. These challenges are the
    result of decades of policy decisions and will not be fixed overnight.
    Urgent action is required now, and accordingly, the NDIS focuses on
    four strategic priorities: resilient supply chains, workforce
    readiness, flexible acquisition, and economic deterrence. We recognize
    that a strategy is only as good as its accompanying implementation plan
    and continue working to finalize its development in the coming weeks.
        We are grateful for the Committee's enduring partnership on
    industrial base matters.
        Together, we must continue working to better incentivize the
    private sector to be more prepared to scale production and meet
    emergent national security needs. Production is itself a deterrent, but
    at the end of the day, you get the industrial base you pay for. Recent
    base appropriations coupled with supplemental funding for Ukraine,
    Israel, and Taiwan have been instrumental in jumpstarting our
    rebuilding of the defense industrial base. However, significant
    sustained investment is required into the future in order to realize
    the modernized defense industrial ecosystem the NDS necessitates.
                                 vi. conclusion
        A flexible, responsive acquisition system that delivers capability
    at speed and scale underpins the Department's ability to maintain
    warfighting advantage against the pacing challenge. Across the DoD
    acquisition enterprise, we remain focused on using all available tools
    and authorities to maximize value to the American taxpayer while
    effectively and efficiently meeting the needs of our warfighters,
    allies, and partners. We appreciate the Committee's steadfast support
    and look forward to continued partnership as we work to improve
    acquisition outcomes together.

        Senator Tester. Thank you, Dr. LaPlante.
        Secretary Bush.
    STATEMENT OF HON. DOUGLAS R. BUSH, ASSISTANT SECRETARY
                OF THE ARMY FOR ACQUISITION, LOGISTICS AND
                TECHNOLOGY, UNITED STATES ARMY
        Mr. Bush. Chairman Tester, distinguished members of the
    Senate Appropriations Subcommittee on Defense, thank you for
    the invitation to appear before you to share our views on
    successes and challenges we face in developing, procuring, and
    fielding major acquisition programs.
        The Army's fiscal year 2025 budget represents a sustained
    commitment to our key modernization portfolios. It also
    continues modernization and procurement of enduring platforms
    that will remain with us for some years to come.
        However, as members of the subcommittee have, I'm sure,
    noted in reviewing our fiscal year 2025 budget, the Army's base
    budget for procurement research accounts are under pressure in
    an overall flat budget environment. In that context the Army is
    committed to getting every bit of modernization we can get out
    of the funds we receive.
        The Army cannot do that without your support, and I thank
    you for your strong support of Army Programs in the fiscal year
    2024 Appropriations bills and the fiscal year 2024
    Supplemental. Passages of those bills were critical in ensuring
    we stay on track with modernization and replenish our stocks as
    rapidly as possible.
        In terms of how programs are doing, I'm overall very
    pleased with where things stand in most Army Programs right
    now. With a few exceptions, Army acquisition programs are
    delivering on time, on cost and providing a level of combat
    effectiveness that is world class something one can observe in
    Ukraine and elsewhere, where our systems are in high demand and
    performing exceedingly well in high intensity combat against a
    very capable enemy. Patriot, Javelin, HIMARS, GMLRS, Bradleys,
    Abrams Tanks, and 155 artillery, just to name a few, are
    showing what U.S. weapons can do on the battlefield.
        That combat performance is in my view the only standard
    that truly matters. In the end because whether it's our
    soldiers using this equipment or an ally, it makes the
    difference between life and death for the people on the front
    line.
        There are of course programs where everything is not going
    perfectly and I'm happy to dive into the reasons for that with
    members. But I am pleased to support that with this committee's
    support, Army acquisition officials are feeling empowered to
    take informed thoughtful risk and when appropriate--where
    appropriate to increase our overall pace of development,
    production, and fielding.
        From an acquisition policy perspective as Dr. LaPlante
    said, the Army continues to aggressively implement and employ
    the many reform initiatives provided by Congress. Middle tier
    acquisition is one. We have 35 programs using it. We've had
    many success stories. The M10 Booker Combat vehicle went from
    program start to production in 4 years.
        Our new 6.8-millimeter rifle went from an idea to
    production in just 3 years. And the other very exciting thing
    is the software pathway doctoral plant mentioned. This pathway
    is critical to allow us to go at the same speed industry goes
    when they're doing their programs.
        And finally, I should mention that the Army is pursuing
    multi-year programs. We did four in fiscal year 2023 for
    artillery, where with this committee support, we're pursuing
    two more for PAC 3 and GMLRS (Guided Multiple Launch Rocket
    System) in fiscal year 2024. And a last thing to mention is
    this committee's strong support for rapid acquisition authority
    to allow us to respond to urgent threats. We used that
    authority doing a contract in less than 30 days to meet a
    critical Counter UAS (Unmanned Aircraft Systems) need in
    central command which was under attack last fall.
        That kind of flexibility when used responsibly with correct
    oversight is absolutely essential to meeting critical war
    fighter needs quickly. In closing, I want to say thank you on
    behalf of the Army for both the funding and authorities we need
    to support our modernization efforts. With continued support
    from Congress, we are building a force capable of competing
    across the spectrum of competition and conflict to deter
    conflict and failing that prevailing conflict. Thank you for
    your time today. I look forward to your questions.
        [The statement follows:]
                     Prepared Statement of Douglas R. Bush
                                  introduction
        Chairman Tester, Ranking Member Collins, distinguished members of
    the Subcommittee, thank you for your continued support to our Soldiers,
    Civilians, and Families. On behalf of the Secretary of the Army, the
    Honorable Christine E. Wormuth, and the Army Chief of Staff, General
    Randy A. George, we thank you for the opportunity to appear before you
    today to discuss defense acquisition and the Army's modernization
    programs.
        The Army's Fiscal Year (FY) 2025 budget reflects the Army's
    comprehensive approach to modernization, so the Army can adapt to the
    challenges of an unpredictable era marked by rapid and disruptive
    technological innovation and great power competition. The budget
    request sustains momentum in our modernization initiatives, including
    the ability to invest faster in rapidly developing technology, while
    simultaneously prioritizing our role as the Joint Force linchpin in the
    Indo-Pacific, improving our Nation's industrial base and relationships
    with its innovation base, and continuing to support our Allies and
    partners. Most importantly, this request will provide our Soldiers the
    materiel solutions needed to fight and win our Nation's wars as part of
    the Joint Force.
                             modernizing the force
        The FY 2025 budget request puts the Army on a sustainable path to
    equip today's Soldiers with modern equipment while we invest in the
    technologies and systems necessary to build the Army of 2030-2040. We
    have also ensured that our requested resources are synchronized with
    the Secretary of the Army's six operational imperatives around which we
    are building the Army of 2030-2040:
      --First, to sense deeper and more persistently than our enemies at
            all echelons.
      --Second, to concentrate combat forces from dispersed locations to
            overwhelm our adversaries.
      --Third, to deliver long range precision fires as part of the Joint
            Force.
      --Fourth, to deliver air and missile defense at echelon to protect
            our forces.
      --Fifth, to reliably communicate amongst ourselves and our Joint and
            coalition partners and secure ourselves from enemy cyber and
            electronic attack.
      --Last, to sustain the fight for whatever the duration.
        Front and center in this effort is our sustained commitment to our
    key modernization portfolios--Long Range Precision Fires, Next
    Generation Combat Vehicle, Future Vertical Lift, Network, Air and
    Missile Defense, Soldier Lethality, Synthetic Training Environment, All
    Domain Sensing, and Contested Logistics--and we are grateful to
    Congress for the stable funding provided to advance these initiatives.
        Long Range Fires Programs:
      --The Army demonstrated the Precision Strike Missile's (PrSM)
            capability to achieve ranges well beyond the legacy Army
            Tactical Missile System and began production qualification
            testing in 4Q FY 2023.
      --We successfully tested the Land Based Anti-Ship Missile seeker and
            the Extended Range Propulsion ramjet, setting conditions for
            subsequent increments of the PrSM program.
      --The Army concluded the Extended Range Cannon Artillery (ERCA)
            Middle Tier of Acquisition (MTA) Rapid Prototyping effort in
            October 2023, with a determination that the current effort
            required further maturation and redesign. As part of a shift in
            strategy, the Army is planning a ``commercial off the shelf''
            performance demonstration in the summer of 2024 that will
            provide decision makers a better understanding of the artillery
            systems available and capable of meeting the Division Artillery
            Lethality capability gaps validated by Army Futures Command led
            Tactical Fires Study.
      --The Army's Rapid Capabilities and Critical Technologies Office, in
            partnership with the Navy, is on track to deliver the first
            Long-Range Hypersonic Weapon (LRHW) battery in CY 2024.
      --We delivered the Army's Mid-Range Capability (MRC) initial hardware
            in 1Q FY 2023 and are on track to equip three MRC batteries
            between FY 2024--FY 2026.
        The MRC prototype effort leverages existing Service missiles,
    launchers, software, and offers a maritime strike capability. MRC is
    projected to operate in the U.S. Indo-Pacific Command (USINDOPACOM)
    area of responsibility (AOR).
        Next Generation Combat Vehicle Programs:
      --The Army remains fully committed to the XM30 (Formerly Optionally
            Manned Fighting Vehicle) program, executing a multi-phased
            acquisition approach to maximize competition. In 3Q FY 2023,
            the Army awarded the competitive contract to two vendors for
            the Phase 3 (Detailed Design) and Phase 4 (Prototype and Test)
            portions of program. Final vendor selection targeted for 2Q FY
            2028.
      --The Robotic Combat Vehicle (RCV) program continues to make
            progress, informed by extensive experimentation with the RCV
            Full-System Prototype effort. At the end of FY 2023, the Army
            awarded four contracts for demonstrator vehicles. Final vendor
            selection is scheduled to occur in 2Q FY 2025.
      --The M10 Booker (Formerly Mobile Protected Firepower) program began
            low-rate initial production in 3Q FY 2022, with the first LRIP
            vehicles arriving in 2Q FY 2024 and fielding planned for FY
            2025.
        Future Vertical Lift Programs:
      --The Army is committed to the Future Long Range Assault Aircraft
            (FLRAA), which remains our highest aviation modernization
            priority. FLRAA will provide effective assault and MEDEVAC
            capabilities, with significantly increased speed, range, and
            endurance.
      --The Future Tactical Unmanned Aerial System (FTUAS) is leveraging a
            competitive rapid prototyping approach to deliver
            transformational reach to ground forces with an organically
            sustained, rapidly deployable, runway-independent, and on-the-
            move control platform. FTUAS provides the BCT organic airborne
            reconnaissance and security with real-time situational
            awareness and effects vital to cross-domain maneuver at the
            speed required in Multi-Domain Operations. FTUAS will use an
            open systems approach to continually upgrade the system with
            the latest technology.
      --The Army continues development of Launched Effects, a family of
            operationally consumable Uncrewed Aircraft Systems that are
            launched from both air and ground platforms to extend tactical
            and operational reach across multi-domain operations and
            enhance the overall range of lethal and non-lethal effects.
            This will include loitering munitions, additional sensors, and
            a vast array of payloads to support varying mission
            requirements.
        Network Programs:
      --The Army is transforming our command and control (C2) network to
            ensure we have the right capabilities at echelon to fight and
            win in Large Scale Combat by delivering simpler, more
            intuitive, lower signature, and more flexible capabilities.
      --The Army is adapting its electromagnetic spectrum training,
            operations, and technology for Large Scale Combat, including
            equipping commanders with the materiel they require to see,
            understand, and reduce their electronic signature to manage
            risk to mission.
      --Over the next year, deployed Army units will conduct real-world
            experiments to reduce network complexity and get the right
            capability in place at the right echelon.
      --The Army is also accelerating delivery of the Unified Network
            through unified requirements, unified governance, a realigned
            PEO, and centralized delivery of services.
      --FY 2025 continues the fielding of modernized C2 network capability
            while evolving to more agile methods of development and
            deployment.
      --In FY 2025, the Army is investing in key capabilities that increase
            network resiliency, modernize backhaul, and upgrade post/camp/
            station network infrastructure worldwide.
      --In total the Army is fielding more than 450 Army, Army Reserve and
            Army National Guard units with modernized network and/or C2
            capability in FY 2024--2025.
        Air and Missile Defense (AMD) Programs:
      --The Army fielded the Initial Operational Capability for the
            Integrated Air and Missile Defense Battle Command System (IBCS)
            in 3Q FY 2023 and recently completed the Full Rate Production
            decision for this critical Air and Missile Defense system that
            will link Army and Joint sensors to shooters.
      --The Army is improving the Maneuver-Short Range Air Defense
            capability, which was fielded to the first battalion, with the
            second battalion fielded in 1Q FY 2024.
      --The Army continues to make progress on its Directed Energy
            Maneuver--Short Range Air Defense (DE M-SHORAD) effort, a 50
            kilowatt-class laser on a Stryker. Four prototypes have been
            accepted by the Army.
      --We are advancing directed energy efforts for Indirect Fire
            Protection Capability (IFPC) by developing high-energy lasers
            (HEL) and high-power microwaves (HPM) for a layered defense of
            fixed and semi-fixed sites against an array of threats. As of
            2Q FY 2024, the Army has accepted four IFPC-HPM prototypes. Two
            prototype IFPC-HEL 300kW-class laser weapon systems will be
            delivered by the end of FY 2025.
      --Six Lower Tier Air and Missile Defense Sensor (LTAMDS) prototypes
            have been manufactured and are in developmental testing, with
            residual operating capability first demonstrated in 1Q FY 2024.
            Testing will continue to validate additional capabilities
            through an Operational Assessment with Warfighters in 1Q FY
            2025.
      --In November 2023, the United States Government leased the two Iron
            Dome Defense System Army (IDDS-A) Batteries to the Government
            of Israel for a period not to exceed 11 months.
      --The Army has accepted the first set of Indirect Fire Protection
            Capability (IFPC) launchers for test and evaluation and is on
            path to complete delivery of all 16 launchers to begin an
            operational assessment in 4Q FY 2024.
      --The Army continues to procure Counter-small Unmanned Aircraft
            Systems (C-sUAS) to address Unmanned Aircraft Systems threats.
            In 1Q 2024, the Army began procuring one Division C-sUAS set
            with 172 Coyote interceptors, complete with procurement of 59
            fixed sites that cover globally prioritized critical sites. In
            FY 2025, the Army will procure a second Division set of C-sUAS
            systems, seven Family of Counter-Unmanned Aircraft Systems to
            provide C-sUAS capabilities for USASOC, continue to field C-
            sUAS capabilities to protect Secretary of Defense approved
            covered facilities and assets, and support emergent
            requirements in support of Joint Urgent Operational Needs.
            Additionally, the Army will finish fielding C-sUAS capabilities
            to the first two Army Combat Divisions.
        Soldier Lethality Programs:
      --Based on results from Integrated Visual Augmentation System (IVAS)
            FY 2022 operational testing, the Army conducted a program re-
            plan to address areas of improvement. The Army and Microsoft
            have identified solutions to address these areas through
            refinements driven by Soldier-centered design. The Army
            initiated IVAS 1.0 fielding to Training and Doctrine Command
            (TRADOC) units in late FY 2023, and is on pace to field IVAS
            1.1 systems to the Combat Training Centers in FY 2024. The Army
            intends to field IVAS 1.2, the full rate production goggle, to
            the Close Combat Force as early as 4Q FY 2025.
      --The Army has procured approximately half of its Enhanced Night
            Vision Goggle Binocular (ENVG-B) procurement objective.
            Additional procurement funding in FY 2023, along with
            programmed funding in FY 2024, facilitated the purchase of an
            additional 10K ENVG-B systems and maintains ENVG-B production
            through 4Q FY 2026.
      --Production of the Next Generation Squad Weapon (NGSW) Rifle,
            Automatic Rifle, Fire Control, and General Purpose Ammo began
            in FY 2022, and First Unit Equipped occurred in 2Q FY 2024.
        Synthetic Training Environment (STE) Programs:
      --STE Software (STE-SW) and Reconfigurable Virtual Collective
            Trainers (RVCT) delivered initial prototype capabilities in FY
            2023 and is on track for First Unit Equipped (FUE) in 4Q FY
            2024 to Army Fort Cavazos, Fort Moore, and Fort Novosel. One
            World Terrain, a key component of STE-SW, is in the hands of
            Soldiers now providing operational battlefield visualization.
      --We continue progress on the Squad Immersive Virtual Trainer which
            remains aligned with IVAS, with development focused on hardware
            productization, cybersecurity, reliability, and other
            enhancements.
      --The Army's Live Training System (LTS) to conduct force-on-force and
            force-on- target live training will deliver initial capability
            to the Joint Readiness Training Center in FY 2024.
      --The Soldier Virtual Trainer (SVT) conducted its first Soldier
            Touchpoint in 1Q FY 2023, with a second STP scheduled for 3Q FY
            2024. The program is on track to deliver initial capability in
            1Q FY 2025.
        All Domain Sensing Programs:
      --The Army transitioned to M-Code Global Positioning System (GPS) and
            alternative Position, Navigation, and Timing (PNT) beginning in
            FY 2022, following the first fielding of Dismounted Assured PNT
            Generation I Quick Reaction Capability System, fulfilling the
            Directed Requirement.
      --The Mounted Assured PNT System Generation II Program of Record, an
            M-Code GPS capable system, will initiate fielding in FY 2024.
      --Success in the APNT/S Cross-Functional Team (CFT) allowed the Army
            to transition the team and its efforts into the All-Domain
            Sensing (ADS) CFT. The ADS CFT will address multi-sensor
            dominance, sensing architecture, advanced processing and
            dissemination, and other operational enablers to facilitate
            successful understanding and decisionmaking in multi-domain
            operations.
      --The Army continues to invest in the ground segments of space-based
            technologies that close operational gaps in deep sensing and
            targeting activities. The Army prototyped and live-fire
            demonstrated the first-ever use of Low-Earth Orbit Satellite-
            based Alternative Navigation technology to guide a Precision
            Guided Munition in a totally GPS-denied environment and
            successfully engage a target at long range.
        Contested Logistics Programs:
      --AFC instituted the Contested Logistics Cross-Functional Team (CL
            CFT) to lead a deliberate transformation effort by developing
            Army and Joint Signature Sustainment Modernization Capabilities
            aligned to pacing threats associated with contested Multi-
            Domain Operations (MDO) and Large-Scale Combat Operations
            (LSCO).
      --The CL CFT reached Full Operational Capacity (FOC) on 31 OCT 2023.
      --The CL CFT is currently addressing the challenges presented in a
            contested environment through four key portfolios: Precision
            Sustainment, Human Machine Integration (HMI) Supply &
            Distribution Systems, Advanced Power, and Demand Reduction.
      --Recently, an Army Requirements Oversight Council (AROC) approved
            Predictive Logistics with an initial focus on firing platforms,
            specifically Abrams, Paladins, and Bradleys.
      --The CL CFT pursues continuous transformation with autonomous/
            robotic solutions and HMI to increase operational reach and
            endurance for commanders.
        The Army's budget request also continues procurement and
    modernization of our key systems for our operational aviation
    platforms, Ground Combat Systems, Intelligence programs, Logistics,
    Armaments, and Ammunition. We carefully balanced the overall Research,
    Development, and Acquisition portfolio, including fine-tuning between
    Research, Development, Test and Evaluation funding, and Procurement
    funding, as we transition from enduring systems to our new modernized
    systems.
        The Aviation portfolio strikes a balance between prudent
    investments to maintain the viability of the enduring fleet, while also
    investing in future aircraft and capabilities designed to provide
    reach, standoff, and overmatch against peer competitors in Multi Domain
    Operations. Beyond investments in FLRAA, the Army is making key
    investments in Apache, Black Hawk, and Chinook helicopter
    modernization, to include CH-47F Block II for conventional units and
    MH-47G for special operations units. The Army also continues
    investments in munitions and aircraft protection by sustaining Joint
        Air-to-Ground Missile production, an improved lethality option to
    the current Hellfire missile, and through continued investment in
    Aircraft Survivability Equipment, a suite of systems that protect Army
    aircraft from threat infrared missiles, radar guided missiles, and
    lasers through detection and defeat systems.
        Armored Brigade Combat Team modernization and combat vehicle
    protection remain a priority. With this budget, the Army will procure
    30 Abrams M1A2SEPv3s Tanks, 51 Strykers, 20 Self-Propelled Howitzer
    Paladin Integrated Management (PIM) vehicle sets, and 26 Joint Assault
    Bridges.
        The Intelligence and Electronic Warfare (IEW) Portfolio enables
    Commanders to see and sense more, at greater distance, and more
    persistently at every echelon. The IEW portfolio is making key
    investments in critical Multi-Domain Intelligence capabilities to
    provide better analytics, Deep Sensing, and Indications and Warning
    (I&W) in support of Targeting. These investments include the
    Terrestrial Layer System which will provide electronic warfare and
    cyber enabled effects; the Army Intelligence Data Platform (AIDP) that
    is the Army's first cloud native web based intel program of record; The
    Multi-Domain Sensing System-High Accuracy Detection and Exploitation
    System (MDSS-HADES), which will provide collection at extended ranges;
    and the Tactical Intelligence Targeting Access Node (TITAN), which will
    provide processors to exploit and disseminate critical intelligence, at
    every echelon. These critical investments are required to meet our
    pacing threat challenges.
        The Air and Missile Defense portfolio invests in integrated command
    and control, sensors, and shooters to provide 360-degree, tiered,
    layered defensive fires against a wide range of air and missile
    threats. It continues to invest in Counter-small Unmanned Aircraft
    Systems (C-sUAS), Lower Tier AMD Sensor prototypes, Patriot radar
    upgrades, and procurement of critical AMD munitions, such as the
    Patriot Missile Segment Enhanced. The Fire Support portfolio continues
    to invest in modernization priorities to address long-range missiles
    fires and capabilities needed for today, with a focus on the INDOPACOM
    AOR. In FY 2025, we will procure 236 PrSM Increment 1 missiles, support
    PrSM Increment 2 seeker development, and begin procurement of 19
    Maritime Strike Tomahawks (MST) to support the priority theater.
        The Command and Control portfolio continues to align resources
    required for networks and command posts to be simpler, more intuitive,
    lower signature, and more flexible.
        The portfolio will increase Command Post mobility and survivability
    through investments in modular command posts, on-the-move and low earth
    orbit SATCOM, and secure wireless capabilities. The portfolio procures
    modernized radios to meet the National Security Agency cryptographic
    modernization requirements and joint and coalition interoperability;
    continues investments in Unified Network Operations, software-defined
    network capabilities, and network security to enable data centricity.
    It will also continue to procure and develop Assured Position,
    Navigation, and Timing capabilities.
        The Logistics portfolio invests in Army Watercraft, a combat
    multiplier in support of Army operational concepts and the Geographical
    Combatant Commander in large scale combat operations; invests in
    contested logistics capabilities to reduce demand and provide point of
    need production and sustainment; and realigns funding to support
    critical ammunition program lines and Army Training Strategies to
    ensure contractual requirements are met to maintain Industrial Base
    Minimum Sustainment Rate capacities; and procures of 1,353 Joint Light
    Tactical Vehicles, 16 High Mobility Multipurpose Wheeled Vehicles
    (HMMWVs) and 2,167 HMMWV antilock braking system/electronic stability
    control kits to improve our existing tactical wheeled vehicle fleet.
        Finally, the Human Machine Integration (HMI) portfolio consolidates
    Army efforts to bring autonomous and machine learning advantages to our
    tactical formations. Integrating virtual training capacities in
    emerging weapon systems and enduring systems with add on modules/
    effects ensures continuous training of Soldiers and formations to
    operate efficiently and effectively as part of the joint force.
    Observations from ongoing conflicts in Europe and the Middle East, as
    well as an understanding of the significant threats in INDOPACOM
    demonstrate a need to rapidly develop an HMI capability inside our Army
    formations at echelon. Our investments in autonomous and semi-
    autonomous ground and aerial systems are essential to extend our
    battlefield effects, maintain an advantage over the enemy, and enhance
    the lethality and survivability of our formations. The Army will employ
    robotic systems to offload risk from Soldiers onto machines and
    leverage autonomy and machine learning to reduce Soldier mental and
    physical loads. This allows our number one asymmetric advantage, the
    U.S. Army Soldier, to focus on those tasks that only humans can do--the
    ethical application of force, utilize curiosity and intuition, and
    apply the art of command. The ability to make first contact with the
    enemy using a robot instead of a Soldier is essential to continue to
    protect our most precious resource. Investment in the HMI portfolio
    allows the Army to do this.
                       modernizing our business practices
        The Army has embraced industry best practices, such as the use of
    Soldier-centered design and rigorous experimentation with prototypes,
    to enable feedback from Soldiers and commanders earlier in the
    development process. This is accomplished in phases--first by getting
    prototype equipment into the hands of Soldiers from the operational
    force early, through Soldier touchpoints, to refine requirements before
    more investments are made. In subsequent phases of experimenting with
    prototypes in increasingly complex scenarios, we assess how we would
    organize and fight using this technology. This provides the Army not
    only valuable feedback on the technology itself, but we learn how we
    need to train and integrate across Doctrine, Organization, Training,
    Materiel, Leadership and Education, Personnel, Facilities, and Policy.
        The Army continues Project Convergence, a Joint and multi-national
    experimentation campaign of continuous learning to inform capability
    design with Soldier touchpoints that culminates in a major field
    experiment. Working closely with our counterparts from the other
    Services, we identify Joint warfighting problems to solve.
    Experimentation objectives, operational scenarios, and data collection
    plans are managed by the Project Convergence Board of Directors, which
    includes representatives from all the Services, the Joint Staff, and
    coalition partners. Events range from field experimentation with the
    signature modernization capabilities from the Army's Cross-Functional
    Teams to embedding experimentation objectives in annual operational
    exercises, such as Northern Edge, Valient Shield, Balikatan, and
    Avenger Triad. These events include focused learning on integration
    with multi-national partners, including FVEY, NATO, and many Pacific
    partners (Japan, Republic of Korea, Philippines, Singapore, etc.). The
    PC series also features a Capstone event that establishes an Army-
    hosted Joint experimental venue. The Capstone event is designed to
    inform the Joint Warfighting Concept, the OSD vision for CJADC2, and
    CCMD priority areas (such as the Joint Fires Network from INDOPACOM).
        The Army continues to implement and employ the reform initiatives
    granted by Congress that were designed to streamline and gain
    efficiencies in the acquisition process. In recent years, Congress has
    authorized more flexible approaches to acquisition, which have resulted
    in the establishment of DoD's Adaptive Acquisition Framework (AAF). The
    AAF provides the Army with six acquisition pathways that enable the
    acquisition workforce to tailor strategies to deliver better solutions
    faster. For example, the Army is judiciously using Middle Tier
    Acquisition (MTA) rapid prototyping authority to experiment with
    innovative, mature technologies to quickly demonstrate new
    capabilities. The Army is using MTA rapid fielding authority to quickly
    field production quantities of new or upgraded systems with minimal
    development, potentially resulting in faster capability delivery and
    lower costs. In all, the MTA pathway enables a ``try before we buy''
    framework that reduces risk, reduces cost, and accelerates capability
    development and deployment. The Army currently has 32 programs
    executing MTA rapid prototyping or rapid fielding efforts and is using
    these authorities to accelerate select Army modernization priorities
    including FLRAA, XM30, MRC, and IFPC.
        The Army also benefits from the establishment of the Software
    Acquisition Pathway (SWP). The SWP is a new acquisition pathway used to
    facilitate rapid and iterative delivery of custom software capabilities
    to users, recognizing that technology development cycles are more rapid
    in software systems. Programs using the SWP will demonstrate the
    viability and effectiveness of the capability within 1 year. The Army
    currently has 17 programs executing on the SWP, and we continue to seek
    more opportunities to use this tailored pathway. In addition to the
    SWP, the Secretary of the Army issued a new policy in March 2024 to
    drive adoption of agile software development practices. The directive
    institutionalizes modern software development approaches across the
    Army, in line with industry best practices. These approaches--which
    include agile and lean practices--focus on iterative development and
    delivery of software in close coordination with users. This type of
    development allows software to be rapidly developed and refined over
    time, accelerating the Army's ability to deliver needed capabilities to
    Soldiers. To enable broad adoption of these modern approaches, the
    directive reforms many of the institutional processes that underpin the
    software development lifecycle, from requirements through sustainment,
    which have historically been cumbersome and time intensive. This
    represents one of the first significant efforts across the Department
    to comprehensively adjust legacy software development processes in line
    with private sector best practices.
        Rapid Acquisition Authority (RAA) continues to enable the
    Department to quickly acquire and deploy capabilities in response to
    urgent operational needs. This authority applies to capabilities that
    can be fielded within 2 years and are based on already proven or
    available technologies, or to capabilities that can be developed or
    procured under MTA authority. RAA significantly streamlines acquisition
    requirements to enable a rapid response to existing threats. The Army
    most recently used this authority to award a production contract for
    600 Coyote Interceptors to help protect U.S. forces from Unmanned
    Aerial System attacks. Congress further enhanced RAA in the FY 2024
    National Defense Authorization Act (NDAA) to better enable the
    Department to respond to emergent technological advancements or
    threats, or to U.S. allies and partners who have been subject to an
    armed attack by a ``country of concern,'' respectively.
        The Army also benefits from expanded use of Other Transaction
    Authority (OTA), which can include follow-on production awards. OTAs
    are contractual instruments other than standard procurement contracts
    (i.e. FAR), grants, and cooperative agreements that lend themselves to
    working with small companies and non-traditional defense contractors,
    two known sources of technological innovation. The Army effectively
    uses OTAs to streamline the acquisition of basic and advanced research
    activities, prototype projects, and follow-on production efforts. In FY
    2023, the Army awarded more than 1,767 OTA agreements valued at $6.9
    billion. The Army updated its OTA Policy in February 2024 to address
    recent statutory changes, including the expanded definition of
    prototype efforts and incorporate innovative pilot programs to use OTAs
    for construction.
        Congress also made permanent the authority for Commercial Solutions
    Opening (CSO) in the FY 2022 NDAA. Since its establishment as a pilot
    program, the Army has leveraged the CSO authority to obtain innovative
    commercial products and solutions to fulfill requirements, close
    capability gaps, and provide technological advances. The streamlined
    nature of the CSO procedures also serves to lower barriers to entry and
    incentivize small and non-traditional vendors who have not previously
    worked with the Department. The Army used CSO authority extensively as
    part of its pandemic response efforts.
        In addition, in the FY 2016 NDAA, Congress encouraged delegation of
    Milestone Decision Authority (MDA) for most acquisition programs from
    the Office of the Secretary of Defense to the Military Departments. The
    Army further delegated MDA for some of these programs to the Program
    Executive Officer level, when appropriate. This delegation allows the
    Army to appropriately align program oversight with risk, resulting in
    reduced bureaucracy and increased efficiency.
        Lastly, Congress recently provided temporary authorities to
    streamline acquisition and contracting requirements to support Ukraine,
    Taiwan, and Israel, and to replenish domestic stocks of equipment.
    Section 1244 of the FY 2023 NDAA, as amended by section 1242 of the FY
    2024 NDAA, enables the Army to reduce procurement lead times by several
    months. It also provides streamlined multiyear procurement authority
    for select munitions, which the Army is using to stabilize the
    industrial base. These flexibilities have been critical in helping the
    Army move quickly to deliver capabilities in response to Russia's war
    against Ukraine and to replenish U.S. stocks.
        All these initiatives, individually and in combination, allow for
    better and faster modernization decisions and faster requirements
    development.
                                   conclusion
        The Army is modernizing and adapting to ensure we can deliver
    leading-edge capabilities to our Soldiers at the speed of relevance and
    innovation. With continued support from Congress, we are building a
    force capable of competing across the spectrum of competition and
    conflict to deter war and, failing that, prevail in war. With stable
    funding, newly enacted authorities, forward-leaning leadership, and
    fiscally agile processes, as well as a rigorous technology
    experimentation regime, we are even further down the modernization path
    than envisioned at this point last year.
        Modernization is a central element of Army transformation,
    translating materiel modernization into capability and lethality in our
    formations. The nature of our adversaries and their ability to harness
    if not control the direction and pace of technological innovation to
    achieve overmatch across the warfighting domains demands that we adapt
    continuously in how we modernize and transform. With your support, we
    are committed to doing that.
        Thank you again for this opportunity to discuss Army Modernization
    and for your strong support of our Soldiers, civilians, and their
    families.

        Senator Tester. Thank you for your statement.
        Secretary Guertin, you are on the floor.
    STATEMENT OF NICKOLAS H. GUERTIN, ASSISTANT SECRETARY
                OF THE NAVY FOR RESEARCH, DEVELOPMENT AND
                ACQUISITION, UNITED STATES NAVY
        Mr. Guertin. Chairman Tester and distinguished members of
    the committee, thank you for the opportunity to appear before
    you today to address our acquisition programs and the defense
    industrial base. We'd like to thank the subcommittee for your
    leadership and support to the ship building naval aviation and
    ground programs that maintain maritime superiority in defense
    of our Nation.
        Maintaining the health of our acquisition programs while
    strengthening the industrial base is a top priority. Through
    strategic partnerships between the Department of Defense,
    Congress, our sister services, and industry, we are more
    efficiently and affordably procuring ships, aircraft
    ammunitions by leveraging the advantages of opportunities such
    as block by, and multi-year procurement authorities.
        The fiscal year 2025 budget requests fully funds the
    Department of Navy's top defense acquisition priority, the
    Columbia class nuclear ballistic missile submarine, prioritizes
    resources for the Navy shipbuilding account to fund investments
    in the submarine industrial base and includes the San Antonio
    Class Landing platform dock in support of the Department of
    Navy's requirement for 31 amphibious ships.
        We're also making targeted investments in critical
    munitions to address today's threats and posture ourselves for
    tomorrow's challenges. The Department of the Navy continues to
    invest funds in the weapon industrial base to ensure we can
    surge and ramp to production in the immediate future.
        The passage of multiple Security Supplementals enables us
    to replenish stocks of U.S. weapons and provide equipment to
    key allies and partner nations. Supplemental legislation also
    facilitated and funded our partnerships with industry to expand
    capacity, modernize existing production lines and improve
    resiliency by qualified additional suppliers and streamlining
    certification capabilities.
        These investments positively impact our primes, their
    subcontractors and critical suppliers across the U.S. while
    supporting our allies and partners. With deliberate approach,
    the Department of Navy has increased ships and aviation
    maintenance and readiness accounts to improve availability
    while modernizing existing platforms. The Department of Navy
    continues to make robust strategic investment in our four
    public shipyards and ensure they're able to execute ship
    maintenance effectively and efficiently.
        In aligning with my secretary's priorities, the Department
    of Navy continues to identify and overcome obstacles that
    threaten the success of our acquisition programs and the
    industrial base. The launch of the Merit Main Defense
    Industrial Alliance in cooperation with Federal and local
    government as well as industry demonstrates our commitment to
    developing and maintaining a well-trained, skilled, and
    motivated workforce in support of growing and fostering the
    ship building industrial base.
        The Department of Navy appreciates the continued support
    and investments from Congress. Thank you for the opportunity to
    appear before you and your subcommittee today and look forward
    to answering your questions.
        [The statement follows:]
                   Prepared Statement of Nickolas H. Guertin
        Chairman Murray, Ranking Member Collins, and distinguished members
    of the Subcommittee, thank you for the opportunity to appear before you
    today to address challenges to our industrial base. Maintaining a
    healthy industrial base is a Department of the Navy (DON) priority. We
    can only achieve our strategic goals and objectives of strengthening
    maritime dominance, building a culture of warfighting excellence and
    enhancing our strategic partnerships by building and maintaining
    resilient supply chains, engaging in flexible acquisition practices,
    employing sound economic deterrence principles as well as training and
    retaining a robust and knowledgeable workforce.
        The National Defense Industrial Strategy demonstrated that building
    industrial advantages through a resilient defense ecosystem is
    imperative. The Navy articulates its future efforts to improve its
    Defense Industrial Base across five strategic categories: resilient
    supply chain, workforce readiness, flexible acquisition, economic
    deterrence, and advanced technology to achieve industrial advantage.
        Our industrial base must build the future fleet while sustaining
    today's fleet. A strong, resilient, and effective shipbuilding,
    aviation and munitions industrial base, composed of shipyards, depots,
    original equipment manufacturers (OEMs), suppliers, ship designers, and
    associated supply chains, is essential to accomplishing and sustaining
    operational readiness.
        Growing and modernizing vital production and repair facilities is a
    national security imperative. We must invest in our industrial base,
    alongside our allies, partner nations and industry partners with a
    collective goal to accelerate the production, throughput, and
    sustainment of the ships, submarines, aircraft and munitions we
    require.
        Strengthening our industrial base is a priority and strategic
    partnership between the Department of Defense (DoD) and industry
    partners. In partnership with Congress and industry, we can more
    efficiently and affordably procure ships, aircraft and munitions by
    leveraging the advantages of initiatives, authorizations and waivers
    such as block buy and multi-year procurement (MYP) authorities where in
    the best interests of the U.S. Government. These flexible acquisition
    tools coupled with stable procurement budgets and on-time
    appropriations can provide our industry partners with solid and
    predictable demand signals that ultimately support and strengthen the
    industrial base. This enables benefits such as improved workforce
    hiring and the establishment of dedicated training centers and
    pipelines resulting in over 3,500 people trained since 2020, and
    approximately 1,000 new workforce personnel in about 120 small/medium
    industry partners.
        The FY25 budget request fully funding the Nation's top Defense
    acquisition priority, Columbia Class Nuclear Ballistic Missile
    Submarine, and the nuclear architecture that underpins it, prioritizes
    resources in the Navy shipbuilding account to fund investments in the
    Submarine Industrial Base, and includes a San Antonio Class Landing
    Platform Deck (LPD) to maintain 31 amphibious ships per our Title 10
    requirement. With a deliberate approach, the DON increased funding in
    ship maintenance/readiness accounts which designed to increase the
    fleet's ship availability in parallel while modernizing existing
    platforms to put more players on the field.
        Additionally, the DON continues to make the robust strategic
    investment in four public shipyards to maximize our players on the
    field today and the next few decades.
        We are making targeted investments in critical munitions to address
    today's threats and posture ourselves for the future. The DON continues
    to invest funds in the weapons industrial base to ensure we can surge
    and ramp up production in the immediate future.
        We appreciate Congress's support through the passage of multiple
    security supplementals enabling us to replenish stocks of U.S. weapons
    and equipment provided to key allies and partner nations through our
    security cooperation activities. Supplemental legislation has
    facilitated and funded our partnership with industry to expand
    capacity, modernize existing production lines, improve resiliency by
    qualifying additional suppliers, and streamline recertification
    capabilities. These investments positively impact our primes, their
    subs, and critical suppliers across the U.S.
        A resilient, healthy, diverse, dynamic, and secure supply chain is
    required to ensure the development, production and sustainment of
    ships, aircraft and munitions critical to our national defense on time
    and within budget. We're making progress on gaining valuable insight
    into our critical supply chains to ensure investment opportunities are
    identified and prioritized to provide the greatest impact. The DON
    continues to invest and explore ways to better assess the health of the
    supply chains and industrial base. Through relationships with our
    industry partners and strategic utilization of our Organic Industrial
    Base (OIB), the DON will achieve a more resilient, modern industrial
    base that is economically and environmentally sustainable, and does not
    rely upon adversarial foreign sources of capital, technology, raw
    materials, and critical inputs.
        Equally important is ship and aviation maintenance via the OIB.
    Critical to ship and aviation maintenance is the ability of the DON to
    acquire technical data needed to maintain and repair our systems during
    wartime scenarios. In March, 17 F/A-18E/F Block III aircraft were
    placed on contract with Boeing with the final F/A-18E/F scheduled to
    deliver in FY27. This
        contract also procures critical technical data absolutely necessary
    for the DON to organically maintain the F/A-18E/F after the production
    line shuts down.
        We are realizing significant reductions in days of maintenance
    delay across ship and aviation platforms, through targeted improvement
    efforts and the use of data analytics. We are trending in the right
    direction and will continue to do better. The investments we are making
    in the Shipyard Infrastructure Optimization Program (SIOP), Fleet
    Infrastructure Optimization Programs (FIOP) and Marine Corps Organic
    Industrial Base (MCOIB) Infrastructure Optimization Plan (MIOP) will
    help get us there.
    145 day Shipbuilding Review
        The Secretary of the Navy's Maritime Statecraft initiative
    promulgates whole of government awareness, advocacy, and action to
    rebuild the comprehensive maritime power of the nation including a
    commitment to strengthen the U.S. commercial shipbuilding and repair
    industry. Efforts today and beyond contribute to a national effort to
    build comprehensive U.S. and allied maritime power, both commercial and
    naval.
        Ensuring the timely delivery of ships that are capable and on-
    budget is critical to maintaining our national security and maritime
    dominance. However, recent challenges, including workforce shortages in
    craft trades and design engineers, supply chain disruptions, and
    technical challenges, have impacted our ability to meet our
    shipbuilding goals and prompted Secretary Del Toro to direct a
    comprehensive review of our shipbuilding enterprise. This 45 day
    Shipbuilding Review identified common issues from lingering COVID
    impacts across a national workforce and supply chain landscape, with
    industry reticent to invest. On average, schedule delays are over a
    year to contracted delivery dates for many of our ships under contract,
    with costs increasing commensurately as a result of these delays and
    continued elevated inflation. The review identified major initiatives
    to drive improvement, and I have recently tasked for implementation,
    several of these initiatives to include:
      --Establishing a shipbuilding ``Get Real Get Better'' forum for
            improved real-time performance transparency,
      --Aligning contract risk sharing approaches between Navy and
            industry,
      --Conducting a design and engineering workforce health assessment,
            and
      --Assessing the Navy's shipbuilding acquisition workforce posture.
        With the support of Congress and working with local, state and
    national organizations, the DON and its shipbuilders will continue to
    identify opportunities to generate resiliency and productivity at our
    shipyards, within the shipbuilding workforce, and in the supply chain.
    Submarine Industrial Base (SIB)
        As highlighted in the Navy's 45 day Shipbuilding Review, our
    submarine programs are challenged. The Navy is assessing that the
    Columbia lead ship delivery will be 12-16 months late due to the
    contract requirement, and the Virginia class submarines are delivering
    two to 3 years late.
        The SIB, consisting of the public shipyards and two prime
    shipbuilders, General Dynamics Electric Boat (GDEB) and Huntington
    Ingalls Industries Newport News Shipbuilding (HII-NNS), along with the
    16,000 suppliers across the country, support both new-construction
    submarines and sustainment of the in-service submarine fleet. The SIB
    faces an increase in demand across the enterprise as the Navy ramps up
    production of the Columbia Class and continues to increase production
    to two Virginia Class submarines per year beginning in FY26, while
    increasing SSN operational availability and supporting international
    commitments under the Australia, United Kingdom, United States (AUKUS)
    partnership. The unprecedented demands on the SIB requires a whole-of-
    nation effort.
        The Navy's FY25 budget request expands upon the foundational
    investments made in prior budget cycles and also addresses in-service
    sustainment health. These investments are critical to shore up the SIB
    to produce Virginia and Columbia, sustain in-service submarines and put
    us on a path to support AUKUS requirements. Investments are targeted in
    six key areas to include infrastructure, supplier development, scaling
    of new technologies, workforce development, strategic outsourcing and
    government oversight of these efforts.
        The Navy has seen significant benefit from investments made to date
    including installation of multiple additive manufactured components on
    in-service submarines; graduation and placement of nearly 500 people
    from the Accelerated Training in Defense Manufacturing programs, which
    will scale to train and place 800-1000 skilled trades annually by FY25,
    will increase hiring at our shipbuilders and the building up of
    additional infrastructure for submarine production through the
    groundbreaking of the multi-class submarine production facility at
    Newport News, VA. The Navy will continue its investments in the
    Virginia Class Material strategy to improve public shipyard
    availability execution with a North Star Goal of 80% operational
    availability for our in-service submarines.
        In FY25, $4.0 billion in funding is requested in support of the
    SIB, which exemplifies the Department of Defense's commitment to
    bolstering supply chain resiliency, workforce development, and flexible
    acquisition. The Navy appreciates congressional support to the
    submarine enterprise, including approval of the Administration's $3.3
    billion in FY24 supplemental funding request which will increase and
    accelerate investments in the SIB.
    Surface Ship Industrial Base
        The surface shipbuilding industrial base that produces aircraft
    carriers, surface combatants, amphibious ships, combat logistics and
    support vessels, is facing challenges comparable to those seen across
    the broader industrial base. The Navy's 45 day Shipbuilding Review also
    included our major surface ship programs. The review assessed that CVN
    80 delivery is 18-26 months late, Constellation Class Frigate lead ship
    is 36 months behind, and Landing Helicopter Assault (LHA), LPD, fleet
    replenishment oilers (T-AO), and the Arleigh Burke class destroyer (DDG
    51) programs are late to contract, however stable and tracking to
    program managers estimates.
        The Navy is taking proactive steps to improve the surface
    shipbuilding industrial base capability, capacity, and quality through
    investments in shipyard infrastructure, supplier development, and
    workforce initiatives; bolstered by congressionally added large and
    small Surface Combatant Industrial Base (SCIB) funding. Since FY20,
    Congress has provided over one billion dollars in SCIB funding against
    the DDG 51 and Constellation-Class Guided-Missile Frigate (FFG 62)
    program lines. Those SCIB investments provided through FY 2024
    addressed risk in schedules, increase capability to meet future force
    structure, promote job creation and economic security, and address risk
    in single source or fragile supply chains. Expanding the capabilities
    of suppliers and shipyard infrastructure in the surface ship industrial
    base promotes greater industrial base stability and improved
    efficiency.
        The Navy provides investments in the needed facilities at our U.S.
    Shipbuilders to produce this nation's most capable warfighting vessels.
    These investments not only address the infrastructure to build ships,
    but also provides for facilities that support our sailors and
    shipbuilding workforce. Recent examples include:
      --Upgraded transportation and childcare
      --On-yard commercial food service
      --Office spaces shared with Navy personnel at General Dynamics-Bath
            Iron Works
      --Construction of a sailor multi-use facility with exercise facility,
            food court, Internet cafe, laundry facility and work control
            office at HII-NNS
      --Installation of a new watertight intermediate gate lodge at HII-NNS
            Dry Dock 12 to split the dry dock into two sections that
            enables simultaneous construction of two FORD Class aircraft
            carriers in the same dry dock
      --Workforce retention bonuses at Fincantieri Marinette Marine for the
            FFG 62 program.
        The Navy has also incorporated a dedicated Workforce Incentive on
    the DDG 51 Multi-Year Procurement (MYP) contract (FY23-FY27), applying
    over $100M towards workforce development incentives at BIW and HII-
    Ingalls.
        The Navy is invested in addressing the recruiting and retention
    challenges to ensure a skilled workforce is available today, and in the
    future, to support the Navy's shipbuilding and repair needs. We will
    continue to invest in and maximize the use of the American workforce to
    build and sustain our forces. The Navy continues to prioritize
    stability in procurement profiles and design configurations to maximize
    workforce development and improve cost, schedule and performance.
        The Navy continually monitors and works with industry and
    Government partners, including sub-tier suppliers, to assess the
    general health of the industrial base and identify opportunities for
    strengthening areas in need of reinforcement. The resources provided by
    Congress have been instrumental in progressing the surface ship
    industrial base to support both shipbuilding and repair needs.
    Weapons Systems/Munitions Industrial Base
        Given the Department's strategic focus on preparing for protracted,
    high-intensity conflict against near-peer adversaries, prioritizing
    investments in munitions remains paramount within the budgetary
    landscape. Sustaining ample stockpiles of missiles and munitions stands
    as a cornerstone of operational readiness.
        Recognizing industry's current constrained capacity for rapid
    production surges during crises underscores the necessity for
    preemptive measures. Recent conflicts in Ukraine and Israel, along with
    heightened activity in the Red Sea, highlight the imperative for
    bolstered investments to support allies and partners, necessitating
    increased industrial capabilities.
        The DON is investing resources toward essential munitions like the
    Tomahawk, Standard Missile, Long Range Anti-Ship Missile (LRASM),
    Advanced Anti-Radiation Guided Missile- Extended Range (AARGM-ER),
    Advanced Precision Kill Weapon System (APKWS), AIM-9X, AIM-120, MK 48
    Heavyweight Torpedo (HWT), and Naval Strike Missile (NSM) to expedite
    production, enhance resilience, and foster interoperability.
        In the past, munitions have often borne the brunt of budgetary
    trade-offs within the DON. Redirecting investments toward industry as
    well as recertifying existing munitions sends a clear signal that
    building munitions inventories and replenishing stockpiles is a top
    priority.
        Augmenting the OIB serves as a critical support mechanism for the
    industrial sector, providing essential facilities and skilled personnel
    for surge production. Leveraging Public- Private Partnership
    authorities enables rapid expansion of the industrial base, though
    maintaining a delicate balance is crucial to prevent exceeding
    production capacity. Examples of this include a proposed $185M in the
    PB25 budget request and $675M across the FYDP for the DON Energetics
    Comprehensive Modernization Plan (ECMP) which aims to enhance the DON
    capacity to meet immediate munitions requirements, foster innovation in
    energetics technology and streamline operations to address urgent
    demands.
        The DON is aggressively improving our OIB's safety and readiness at
    Naval Surface Warfare Center Indian Head Division (NSWC IHD). In FY23
    and FY24, we invested $345M, across over 200 projects to jumpstart this
    plan and unlock a doubling of capacity by FY26.
        In addition, our Naval Industrial Reserve Ordnance (NIRO) plant,
    Allegany Ballistics Lab (ABL), operated by Northrup Grumman, is
    supporting urgent national security requirements associated with the
    restocking of DoD munition stocks and support of U.S. national
    interests in Europe and the Pacific Area of Operations. We recently
    awarded $178M to Northrop Grumman to construct new facilities ('Plant
    5') to expand production, adding 50% more capacity by FY27.
        Further PB25 initiatives target the backlog in missile
    recertification, aiming to streamline processes and allocate additional
    resources. This includes efforts to return missiles to the Fleet,
    enhancing the capacity of the recertification rotatable pool to
    expedite parts repair and replacement.
    Tactical Aviation
        The safeguarding of our national interests remains dependent on the
    most superior naval force in the world, one that is deliberately
    postured to meet the constantly evolving geopolitical challenges and
    threats. The DON is investing in lethality, capacity, capability, and
    readiness across the Naval Aviation Enterprise to provide our
    warfighters the necessary spectrum of abilities to deter or defeat
    enemy aggression.
        The very center of our tactical air investment and the continued
    strengthening of our industrial base is our request for the procurement
    of twenty-six F-35 Lightning II Joint Strike Fighters--thirteen
    carrier-based F-35s for the Navy and Marine Corps and thirteen short-
    takeoff vertical-landing F-35s for the Marine Corps. Additionally,
    seventeen F/A-18E/F Block III aircraft were placed on contract with
    Boeing with the final F/A-18E/F scheduled to deliver in FY27.
        The DON continues to invest in broadening the Electromagnetic
    Warfare industrial base with Next Generation Jammer and numerous self-
    protection systems. Our Navy and Marine Corps team must continue to
    invest in the defense industrial base to maintain warfighting capacity,
    supremacy of rapid innovation, capability modernization and an
    efficient and effective acquisition process to provide for our Joint
    Force as well as our Partners and Allies.
    Rotary Wing Aviation
        The health of the Rotary Wing aircraft industrial base continues to
    be one of our top priorities as a critical enabler to meeting
    capability, readiness and affordability objectives. Industry-wide
    inflation, workforce instability, and supply chain challenges present
    significant concerns, but the Department is making every effort to
    ensure that these issues do not deter our delivery of mission capable
    rotary platforms. While key platforms, such as the H-60, H-1, MV/CMV-
    22, and VH-92A will end production in the next few years, ongoing full
    rate production of the CH-53K, aircraft modifications of the H-1, MV/
    CMV-22, and VH-92A platforms, and H-60 service life extension efforts
    will sustain key suppliers while the Department explores options for
    Future Vertical Lift capability. Other service procurement plans will
    also keep the major prime contractors and key component and technology
    suppliers working beyond the FYDP.
        We are making every effort to preserve stability and affordability
    through Foreign Military Sales and procurement opportunities that
    encourage longer-term industry investments in facilities and workforce.
    The DON is requesting FY25 Congressional authorization for a two-year
    block buy contract for CH-53K airframes and a five-year multi-year
    contract for CH-53K engines which will leverage volume quantities to
    realize significant cost savings, provide a constant demand signal to
    industry and encourage improved production efficiencies. The Rotary
    Wing industrial base, although fragile, has production capacity to meet
    current and future requirements if we continue to strengthen these
    partnerships and send a consistent development and procurement demand
    signal.
    Unmanned Aviation
        MQ-25 remains a top DON priority as the pathfinder to the Air Wing
    of the Future and foundation for Manned-Unmanned Teaming and autonomous
    aircraft carrier operations.
        Through the team's implementation of the Navy's ``Get Real, Get
    Better'' management principle, the program has emerged from the past 2
    years' production delays and subsequent re-baselining, and has been
    tracking positive trends in build productivity with schedules expected
    to hold steady through CY24. The Static Test Article (STA) aircraft
    recently completed final assembly and there are now five developmental
    aircraft in production flow, including the first System Development
    Test Article (SDTA)--the first of three aircraft to deliver to the
    Fleet for the first deployment. Production is currently being conducted
    at the Boeing facilities in St.
        Louis, sub-optimally as it spread amongst other manufacturing
    lines. Boeing has invested in a new, dedicated MQ-25 facility, nearing
    completion, at nearby Mid-America Airport in Illinois with a projected
    capacity of 15 air vehicles per year. The first low-late initial
    production (LRIP) contract award for three aircraft is planned for late
    FY25. The timing of this award is critical to avoid a break in the
    production line and the loss of learning and talent.
        The Navy is collaborating with the Air Force and Marine Corps in
    the development of the Combat Collaborative Aircraft (CCA). A Tri-
    Service Agreement details the unified approach that features a modular
    and open systems architecture, shared autonomy and air vehicle
    software, and a common control station. The Air Force recently
    announced a down select to two vendors to continue with system design
    and development while the Navy conducts technology maturation and
    demonstrations to inform requirements development. The platform
    agnostic strategy ensures that the Services will avoid vendor lock, as
    has been typical with traditional programs, and will encourage
    competition, innovation and affordability amongst a widening industrial
    base.
        The Marine Corps has partnered with the Office of the
    Undersecretary of Defense for Research and Engineering (OUSD(R&E)) and
    the Naval Air Systems Command in the research, development, test and
    evaluation of Kratos' XQ-58A Valkyrie as part of its Penetrating
    Affordable Autonomous Collaborative Killer--Portfolio (PAACK-P)
    program. These efforts will inform requirements definition for
    autonomous and affordable tactical UAS, and mature manned-unmanned
    teaming (MUM-T) capabilities.
    Supply Chain and Supplier Management
        Supply Chain Improvement Program (SCIP) sustainment performance
    data integration continues to improve weapon readiness and reduce
    costs. Additionally, SCIP is developing Supply Chain Illumination and
    Platform Risk (SCIPR) tool to understand, highlight, track, and
    mitigate Supplier Risk and allow real-time analysis of supplier health.
    SCIP continues to expand its sustainment performance measurements
    across the DON. This includes the development of data architecture
    program, SCIPR. SCIP also reduces inventory lead time and maintenance
    repairs, increases reliability to SYSCOM programs, evaluates cross-
    cutting supply chain assessments for programs with multiple SYSCOM
    impacts, and targets high risk supply chain architecture OEM/market
    spaces.
        Our adversaries increasingly employ economic statecraft to enhance
    their military advantage, degrade our access to emerging and critical
    technologies, undermine our supply chains, and threaten the broader
    industrial base. The DON is proactively addressing this threat through
    the concentrated efforts of SECNAV's Maritime Economic Deterrence
    Executive Council (MEDEC). This group consolidates expertise and
    authorities to establish a centralized approach for economic deterrence
    practices across foreign investment, innovation protection and
    policies, critical technology, technology program protection,
    intelligence, and supply chain risk management.
        The Foreign Investment Review (FIR) coordinates a holistic economic
    deterrence strategy for the DON and leads regulatory due diligence for
    the Committees on Foreign Investment in the United States (CFIUS) and
    the Assessment of Foreign Participation in the United States
    Telecommunications Services Sector (Team Telecom). Priorities include
    protecting technology and growing monitoring and compliance to ensure
    mitigation efficacy and alignment with risk management best practices.
    FIR recognizes increasing attention for broader economic security,
    growing interest from Congress and SECNAV, and greater focus on
    reduction and mitigating risk. It participated in the creation of a new
    Defense Acquisition University (DAU) course on foreign investment
    risks, as well as provided guidance during the development of the Small
    Business Innovation Research (SBIR)/Small Business Technology Transfer
    (STTR) due diligence process.
        The DoN Damage Assessment Management Office (DAMO) encourages
    program offices to deliver routine cyber training to be understood by
    all governmental personnel. Additionally, DoN DAMO continues to
    encourage program offices to reduce cyber incident through proactive
    cybersecurity, Systems Engineering, and System Security Engineering
    measures. It is funded within the Secretariat Review Board (SRB) budget
    under ASN(RDA).
        The Wartime Acquisition Sustainment and Support Program (WASSP)
    efforts help the DON's acquisition enterprise to be ready to support
    the warfighter in time of conflict. Through tabletop exercises with
    industry focused on munitions, warfighting platforms, and contested
    logistics; WASSP is improving how we acquire and sustain in peacetime
    so that there is a better foundation from which to pivot in support of
    warfighter. WASSP will continue integrating headquarters staff and
    Fleet activities in cooperation with industry.
        The Acquisition Enterprise must push authority to the lowest
    possible level, empowering personnel with the requisite responsibility
    and authority to act effectively and rapidly in wartime conditions.
    WASSP will continue to train and drive the practice of expedited
    contracting methods to better prepare for wartime response. This is
    accomplished by familiarizing the acquisition communities with
    expedited contracting methods, waivers, and authorities.
        In the industrial base, WASSP seeks to identify ways to build the
    surge capacity necessary for contested logistics; in DON terms, these
    are the 5 Rs (rearm, refuel, resupply, repair, revive). WASSP also
    seeks to improve how we acquire and sustain in peacetime so that there
    is a better foundation from which to pivot in support of warfighters
    Organic Industrial Base (OIB)
        The DON's OIB depots are critical to maintaining our warfighting
    posture. This contrasts with the current state of the infrastructure
    portfolio. Individual facilities and utilities are antiquated, beyond
    service life, in poor condition, inefficient, and not resilient.
        The OIB is executed as the Shipyard Infrastructure Optimization
    Program (SIOP), Fleet Readiness Center Infrastructure Optimization
    Program (FIOP) and the Marine Corps Organic Industrial Base (MCOIB)
    Infrastructure Optimization Plan (MIOP).
        SIOP is executed by the Program Executive Office for Installations
    and Infrastructure. The public shipyards are located in Pearl Harbor,
    Hawaii (PHNS), Puget Sound, Washington (PSNS), Portsmouth, New
    Hampshire (PNSY), and Norfolk, Virginia (NNSY). FIOP is executed
        by the Commander, Fleet Readiness Center (FRC). The FRCs are
    located in Cherry Point, South Carolina, Jacksonville, Florida, and
    North Island, California. MIOP is executed by the Marine Corps
    Logistics Command. The Marine Corps depots are located at Albany,
    Georgia and Barstow, California.
        SIOP, FIOP and MIOP are executed using a mixture of appropriations.
    Military construction (MILCON), Operations and Maintenance (OMN), and
    Procurement (OPN) are delivering dry docks, infrastructure/facilities,
    and industrial plant equipment/advanced manufacturing equipment.
                SIOP
        The SIOP will deliver dry docks to support current and planned
    classes of nuclear- powered warships, optimize workflow through
    significant changes to the shipyards' physical layout, and replace
    obsolete capital equipment with modern technology that increases
    productivity and safety. Recapitalizing century-old infrastructure
    improves the working conditions for our 30,000+ shipyard employees. Due
    to the cost of the proposed Multi-Mission Dry Dock (M2D2) at PSNS, a
    change in the USS KENNEDY's maintenance schedule and the sensitivity of
    the surrounding environment, CNO requested further review of the
    alternatives to the current proposal. The Resourcing Requirements
    Review Board (R3B) decision expected September 2024.
                FIOP
        The FIOP is a strategic investment plan for the Naval Air Systems
    Command depot facilities, equipment, and infrastructure related to the
    aviation OIB. It transforms WWII-era organic aviation depots into
    modernized Maintenance, Repair, and Overhaul (MRO) repair centers by
    streamlining production workflows, upgrading aged equipment and
    facilities, building new optimized facilities, and implementing digital
    technologies to increase readiness at a reduced cost.
                MIOP
        Industrial Systems Transformation is the central objective of MIOP.
    Defined simply as people, process, technology and property
    transformation, this strategy balances workforce development,
    technology insertion and process improvement with infrastructure
    optimization. Investments in people/workforce is an underlying key
    tenant of good performance. MCOIB is executing according to plan.
                                   conclusion
        One of our top National Defense priorities is stabilizing,
    strengthening and growing our industrial base to increase our ability
    and capacity to provide goods and services at speed and scale to meet
    current and future Defense requirements. This takes a partnership and a
    collective, teaming strategy inclusive of Congress, the DON, our allies
    and industry partners.
        The DON will continue to identify and overcome obstacles to success
    as Industrial Base Strategy implementation continues across the
    Department. The Department will address manufacturing capacity,
    economic risks to supply chains, and labor training and adequacy in
    addition to improving information integration.
        The DON appreciates the continued support and investments from
    Congress to strengthen our industrial base in an effort to achieve an
    enduring maritime and naval aviation advantage that ensures current and
    future operational readiness.
        Thank you for the opportunity to testify before you today regarding
    the challenges that face the industrial base.

        Senator Tester. Thank you for your statement.
        Secretary Hunter, you have the floor.
    STATEMENT OF ANDREW P. HUNTER, ASSISTANT SECRETARY OF
                THE AIR FORCE FOR ACQUISITION, TECHNOLOGY
                AND LOGISTICS, UNITED STATES AIR FORCE
        Mr. Hunter. Thank you, Chairman Tester, and thank you to
    the other members for having me here today to provide testimony
    in the U.S. Air Force Acquisition programs and also for the
    support you provide to us in terms of resources and flexible
    authorities. They are critical to our success in the
    acquisition enterprise.
        We need that flexibility and those resources because the
    way in which we have to do acquisition and the current security
    environment is changing and must change, be less platform
    centric and more focused on the integration and the tight
    integration between systems in order to be effective in the
    future fight.
        It requires tight partnerships also between the operational
    and acquisition communities in the Department of the Air Force
    and developing the necessary capabilities to deter when future
    conflicts. And the Secretary of the Air Force has also made
    clear to the Congress and also to us within the Department of
    the Air Force that we're out of time.
        And so, we have to reoptimize our organization to move
    faster and also to prepare for a very challenging future fight.
    And therefore, we're shifting a focus from platforms operating
    individually to mission threads and capabilities that are
    required to close those threads reliably and consistently over
    time in a resilient fashion. This requires us to work across
    our stove pipes and integrate in ways that are often stymied
    when our existing organizational structure and that require
    flexibility within our acquisition approaches in order to
    execute successfully.
        So, we're adapting our acquisition approaches and our
    capability development organizational structure to meet the
    challenges of great power competition. Recognizing the
    challenges laid out in the defense strategy and our operational
    imperatives in our reorganization--reoptimization initiative,
    we've gone to implement a next generation acquisition approach
    that builds upon a foundation of government expertise,
    technical architectures that enable open systems approaches and
    the constant injection of new technologies.
        It ensures there's continuous competition throughout the
    lifecycle of a program to allow the Air Force to take advantage
    of new advances in technology through incremental development
    while lowering the barriers to entry for companies including
    non-traditional companies. I want to particularly highlight the
    Collaborative Combat Aircraft Program as the exemplar of our
    efforts to develop and field new capabilities rapidly,
    affordability, and at scale.
        In fiscal year 2025, we'll begin the concept refinement for
    the next CCA (Collaborative Combat Aircraft) increment as we
    continue to explore international partnership participation and
    expand our approach to continuous competition. Since time is of
    the essence and capability of development, we're very thankful
    to the Congress for providing quick start authority and the
    NDAA (National Defense Authorization Act). And I know this
    committee was very helpful in getting to a successful
    resolution of that issue.
        I also want to highlight that we just put through that
    authority and through that process a program to provide C3
    battle management for moving target indication at scale, which
    I think is a very effective use of that authority. We look
    forward to working with Congress as we organize into a more
    agile and integrated acquisition system that delivers
    capabilities quickly and at scale.
        We welcome the opportunity to provide you more details on
    our key Department of the Air Force efforts, where we can use
    help including the establishment of our new software
    directorate, our implementation of the defense acquisition
    workforce development account, to build that government
    expertise that I referred to and our approach to digital
    material management.
        Thank you again for the opportunity to testify.
        [The statement follows:]
                     Prepared Statement of Andrew P. Hunter
                                  introduction
        Chairman Tester, Ranking Member Collins, and distinguished members
    of the subcommittee, thank you for having us here today to provide
    testimony on The United States Air Force acquisition programs.
        The Department of the Air Force (DAF) is critical to our national
    defense. Our capabilities underwrite the capabilities of the entire of
    the joint force, and we are uniquely suited to provide this cornerstone
    of the Nation's defense. We have made significant progress in
    identifying the capabilities the DAF will need to develop and field to
    prevail against our adversaries. However, the DAF is facing a
    significant, dangerous shift in the strategic security environment. The
    DAF has historically adapted to key inflection points to best compete
    in emerging security landscapes.
        Although we are still the strongest Air Force in the world,
    deterrence and operational success are at risk and as Secretary Kendall
    has repeatedly emphasized, we are out of time. The People's Republic of
    China (PRC) remains our most formidable strategic competitor and while
    conflict with the PRC is neither desirable, inevitable, or imminent the
    DAF is moving expeditiously to ensure we're ready to deter, and, if
    required, prevail in conflict.
                         current acquisition landscape
        Over the last 2 years, the DAF focused on establishing the
    modernization programs needed to maintain conventional superiority. In
    Fiscal Year (FY) 2024 our seven Operational Imperatives and three
    Cross-Cutting Enablers will produce new investments and programs. The
    DAF's FY25 President's Budget (PB) reflects our commitment to
    developing a threat-informed, concept-driven future Air Force but our
    resources have been limited by the 2023 Fiscal Responsibility Act
    (FRA). The FRA spending caps force difficult tradeoffs as the DAF
    strives to produce next-generational capabilities, sustain existing
    platforms, and ensure that our workforce is prepared to meet the pacing
    challenge posed by the PRC.
        The COVID-19 Pandemic put a spotlight on shortfalls within the Air
    Force acquisition ecosystem that showed a lack of resiliency in our
    supply chains and dependence on diminishing manufacturing sources and
    materiel shortages. The recently released National Defense Industrial
    Strategy reflects our understanding of the state of the Defense
    Industrial Base (DIB) and provides a coordinated approach to our
    priorities. Led by the Office of the Under Secretary of
        Defense for Acquisition and Sustainment, DAF programs continue
    working with their Industry partners in making tremendous strides to
    recover and improve DIB capacity in the years since.
        The DAF continues to face an increasingly competitive labor market.
    Our DAF acquisition workforce is essential to our mission and we are
    working to recruit, develop, and retain the critical skills and
    experience needed across the enterprise. For 25 years, the DoD Civilian
    Acquisition Workforce Personnel Demonstration Project (AcqDemo) has
    provided an inherently flexible pay and personnel management system
    enhancing the quality, management, and professionalism of the
    acquisition workforce.
        The DAF also appreciates Congressional support in enactment of the
    ``Quick Start'' authority in Section 229 of the FY24 NDAA. The
    authority has already been a vital tool in helping the DAF accelerate
    its efforts in Moving Target Indication (MTI) at Scale and Resilient
    GPS. In particular, MTI was an outgrowth of our Operational Imperatives
    analysis and Quick Start allows us to perform activities that are
    necessary to our overall approach towards battle management. We look
    forward to updating the Congress about our progress on both MTI and
    Resilient GPS.
        Finally, the DAF is working closely with DoD to evaluate the
    recommendations of the Planning, Programming, Budgeting, and Execution
    (PPBE) Reform Commission. The ability to implement change at the scale
    and speed the DoD requires is key to overcoming our pacing threat.
    Transitioning from the 1960's PPBE process to the defense resourcing
    system process is an enormous opportunity to revisit the need for
    flexibility on new starts and programs transitioning between milestones
    in order to foster innovation and adaptability and oversight. We look
    forward to collaborating with Congress, DoD, the Office of Management
    and Budget, and other stakeholders to undertake the single most
    important defense resourcing reform for our generation: a return to
    predictable and routine resourcing to ensure the Federal government can
    meet the nation's national security needs.
            approaches and organizations for great power competition
        The Secretary of the Air Force has made clear we are out of time
    and must reoptimize now. To achieve a more competitive posture, the DAF
    is implementing changes centered on how we develop people, generate
    readiness, project power, and develop integrated capabilities. The
    Operational Imperatives work highlighted the challenges of integration
    and the importance of tight partnerships between the operational and
    acquisition communities. Reoptimizing the DAF for GPC increases mission
    readiness by eliminating stovepipes to deliver cross-functional and
    lethal combat capabilities with the speed and agility required to meet
    challenges now and for the foreseeable future. We are shifting focus
    from platforms operating individually to mission threads and what
    capabilities are required to close those threads reliably,
    consistently, over time, in a resilient fashion. This requires us to
    work across our stovepipes and integrate in ways that are often stymied
    within our existing organizational structure. We are adapting
    acquisition approaches and our capability development organizational
    structure to meet the challenges of Great Power Competition including
    accelerating fielding of technology through better integration and
    adaptation of internal and external S&T.
    Cross-Portfolio Integration (Horizontal Integration)
        Driving cross-portfolio mission systems integration and capability
    development reprioritizes ``platform-centric'' kill chains to
    integrated, mission-focused ``system-of-systems'' kill webs. This
    underscores the importance of adopting common open architectures and
    cross- platform integration from the outset, enabling greater
    flexibility, agility, and rapid system upgrades at the speed of
    software coding.
        We must work across stovepipes to horizontally integrate
    capabilities from the air fleet with our space capabilities and onto
    ground capabilities in operationally meaningful ways. The establishment
    of the Program Executive Officer for Command, Control, Communications
    and Battle Management (PEO/C3BM) was a pathfinder for horizontal
    integration. PEO/C3BM's work on DAF BATTLE NETWORK spans many programs
    within the DAF and delivers a critical capability for kill chain in
    future conflicts and combines interoperability at the Joint Level with
    the flexibility for service needs.
    Capability Development Pipelines (Vertical Integration)
        The Skyborg effort is a prime example of how to build development
    pipelines that result in warfighting capability in the least time
    possible, through accelerated vertical integration. Skyborg, which was
    a major Air Force Research Laboratory (AFRL) science and technology
    Vanguard, was not originally connected to a specific program of record.
    When development showed promise, it was essentially turned into a
    program of record as the foundation for a collaborative combat aircraft
    (CCA), which we are now accelerating rapidly into production.
    Next Generation Acquisition Approach
        The DAF has already recognized many of the challenges laid out in
    the NDIS, Operational Imperatives, and GPC. These challenges stem from
    the need for the DAF and the joint forces to be positioned to respond
    to the pacing challenge both in the near- and long-term. While
    Reoptimizing for Great Power Competition provides us with the
    organizational structure to rapidly deliver capabilities to the
    warfighter over time, taking a next-gen approach to acquisition ensures
    that we have a framework to build a responsive and resilient industrial
    base capable of providing us the best capabilities. Traditional
    acquisition practices organize capability delivery around platforms and
    have often led to a ``winner-take-all'' approach with a single prime
    contractor who essentially controls the development and sustainment of
    a platform for decades. Subsequently, this has resulted in worse
    acquisition outcomes, such as: less flexibility in contract
    negotiations; challenges with data rights, integration of emerging
    capabilities, and sustainment; and a diminished industrial base.
        In contrast, a next-gen approach builds upon a foundation of
    government expertise, technical architectures that enable open systems,
    and constant injection of new technologies. It ensures that there is
    continuous competition throughout the lifecycle of a program, to allow
    the DAF to take advantage of new advances in technology through
    incremental development while lowering the barriers to entry for
    companies, including nontraditional companies. For example,
    Collaborative Combat Aircraft (CCA) was a Pathfinder for Our Next-Gen
    Acq Approach that will allow the DAF to ensure both affordable mass and
    delivery of capabilities quickly, and at scale. It leveraged the
    existence of two government reference architectures (GRA), AMS GRA and
    A-GRA, the Air Force's Agile Development office, and preexisting
    prototypes. In Increment 1, the DAF established vendor pools that
    allowed the DAF to work with multiple vendors in the design process
    before deciding to proceed with two vendors. Vendors not awarded an
    option for CCA Inc 1 design, build and test of production
    representative test articles remain eligible to compete for CCA Inc 1
    production and future CCA increments. The DAF plans to make a
    competitive CCA Inc 1 production decision in FY26. All current (more
    than 20), and potential future, industry partners in the CCA vendor
    pool will compete for the CCA Inc 2 concept refinement activities. The
    DAF is also exploring opportunities for international participation in
    future increments. Using the next-gen approach allows the DAF the
    agility to respond to near-term operational needs while building a
    long-term, affordable force structure.
        A successful next-gen approach requires the DAF to continue to
    implement digital acquisition approaches and enterprise digital tools
    through digital materiel management, GRA, and a workforce ready to
    rethink how we acquire programs and engage industry. From efforts like
    the Digital Acquisition Task Force to the development of GRAs, we will
    continue to engage in constant and consistent communication with
    industry so that we all benefit from the strengths that the government
    and industry each bring to the table. Traditional acquisition
    approaches will always have a place in our acquisition system, but just
    as the threat has evolved, it is also time for us to revisit what has
    worked and where there is opportunity for improvement.
    GPC Organizational Changes
        The capability development-related GPC organizational changes we
    are making at the Secretariat and Air Force Materiel Command (AFMC)
    institutionalize the lessons learned through the Operational
    Imperatives by establishing offices and Program Executive Offices (PEO)
    that will drive integration across the Service.
    Integrated Development Office (IDO)
        AFMC's IDO will support early integrated capability development
    planning and ensure requirements development is informed by
    technological opportunity and risk. As requirements are defined, the
    IDO will work with the Systems Centers, Air Force Research Laboratory
    (AFRL), and AFWERX, to ensure continuous pipelines of competitive
    technology development, and with the Program Executive Officers, or
    PEOs, to structure execution-ready Programs-of-Record for transition
    to, and management by, the PEOs and Program Offices within the AFMC
    Systems Centers. The IDO will work in close cooperation with operators
    to define and implement early systems acquisition prototyping,
    experimentation, and mission engineering; execute enterprise-focused
    and integrated early systems engineering and systems acquisition; and
    apply the technical architectures developed and managed by the three
    Systems Centers.
    Air Force Information Dominance Systems Center (AFIDSC)
        This new Center will consolidate and increase focus on information
    dominance capabilities: Command, Control, Communications, and Battle
    Management; Cyber; Electronic Warfare; Business and Enterprise Systems;
    and Enterprise Digital Infrastructure. Establishment of the Center will
    follow traditional Air Force processes. There will be minimal impact to
    the Program Offices designated to become part of this Center, as
    personnel are expected to re-align in place.
    Air Force Air Dominance Systems Center (AFADSC)
        Air Force Life Cycle Management Center will be re-designated as the
    Air Force Air Dominance Systems Center, reflecting the portfolio focus
    on aircraft, conventional weapons, and associated systems, with an
    elevated emphasis on readiness through enterprise product support. The
    Center's headquarters will remain where it is and there will be minimal
    impact to personnel.
    Air Force Nuclear Systems Center (AFNSC)
        The Air Force Nuclear Weapons Center will become the Air Force
    Nuclear Systems Center, focused on the foundational strategic deterrent
    role of the nuclear mission and importance of nuclear modernization and
    integration. The biggest change is the creation of the new PEO ICBM to
    manage the modernization and transition of the land leg of the nuclear
    triad. In addition, we will strengthen the nuclear material management
    role of the Center to enable true integration and more effective
    sustainment of the nuclear enterprise. The Center's headquarters will
    remain where it is, with minimal impact to personnel.
        The other four AFMC Centers--Air Force Research Laboratory, Air
    Force Test Center, Air Force Sustainment Center, and Air Force
    Installation and Mission Support Center--remain largely unchanged in
    structure and mission but will adjust as needed to meet stakeholder
    needs as other organizations in AFMC and the DAF reorganize and refocus
    around GPC requirements.
        As we implement GPC, we will work closely with our operators and
    the communities in which we reside in order to achieve the level of
    integration and collaboration necessary for the counter the pacing
    challenge.
                                   conclusion
        Thank you again for the opportunity to testify. We look forward to
    working with this subcommittee to ensure the Department of the Air
    Force maintains the necessary military advantage to secure our vital
    national interests and support our allies and partners in Fiscal Year
    2025 and beyond.

        Senator Tester. Yes, I want to thank all four of you for
    your testimony. We'll get into the questions right now. We have
    heard a lot in recent years about the challenge that the
    defense industry has to attract and retain a manufacturing
    workforce to build weapon systems on time. This is concerning
    and we will be discussing that more today. But my primary
    question is about the Department of Defense's own workforce.
        This is for all of you. What is the DOD's acquisition
    workforce? Our acquisition budgets have grown significantly but
    do we have enough qualified and experienced contracting
    officers? Do we have enough auditors? Do we have enough cost
    estimators to manage this workload? We'll start with you, Dr.
    LaPlante.
        Dr. LaPlante. Yes, thank you. And with the authorities that
    this committee and others have given us they're of course only
    as good as the workforce to implement them. I would say
    broadly, like a lot of our economy and our society, there's
    been a generational change in our workforce. I would say that
    we have put in place many of the tools that you have given us
    including the one that just was mentioned by Honorable Hunter
    on the acquisition demonstration and the funds to train next
    generation.
        I would say the area that I'm most focused on really
    beefing up is contracting officers. A couple of comments on
    that. Number one, I'm biased but I actually think that the
    contracting officers in Department of Defense are some of the
    best in the United States government. As a result, they're also
    highly desirable both in other parts of the U.S. government
    which is not a bad thing necessarily but out in the private
    sector.
        We also--and this is something perhaps that's not fully
    appreciated. During the years in Iraq and Afghanistan many
    contracting officers did service downrange in country four or
    five times in some cases. Many of those got burned out. So,
    we're rebuilding many parts of the contracting workforce. I
    would say in pockets we still have work to do. Net overall, I'm
    pretty pleased with where we are but I would also defer to my
    other colleagues here.
        Senator Tester. And we'll go to Secretary Bush next. From
    an Army perspective, where are we on those three?
        Mr. Bush. Senator, I agree with Dr. LaPlante. If I worry
    about one workforce, it's the contracting workforce. There's
    only about 9,000 people, they've doubled their workload
    frankly. They did Covid, then they rolled straight into
    Ukraine.
        Senator Tester. So, 9,000 optimal, or do you need more?
        Mr. Bush. Sir, I--some more would be helpful. However, we
    are in the meantime focused on giving them better technology
    and tools to be more efficient. So, I think a little help in
    both realms, efficiency, investment, and perhaps some more
    people would be wanted.
        Senator Tester. If you could get back to us. You don't have
    to do it now, because I want to go to Secretary Guertin, but
    get back to us with how many more people you would need.
    Secretary Guertin.
        Mr. Guertin. Thank you, Senator. Echo of my colleagues at
    contract officers. A key component of our future, one of the
    things IVAC (Interagency Veterans Advisory Council) advocated
    for years is a better application of modularity and open
    architectures in order to invoke competition more broadly. And
    all of those require contracts.
        So, we need contract officers to grow. And honestly, the
    Navy grows great contract officers because people keep hiring
    them. So that's something we continually have to refresh. Also,
    a particular note is waterfront workforce. We need more people
    out on the deck plates, building and maintaining ships. It's a
    big problem for us. Hope to talk more about that later.
        Lastly, I'd like to note that we also need to up our game
    in understanding how to build ships. Naval architects and
    marine engineers is something that we have a deficit of. It
    happened over the course of many years, something I'm
    particularly focused on so we do a better job of understanding
    our business of building ships.
        Senator Tester. Okay. And from an auditor's and cost
    estimator standpoint we're okay?
        Mr. Guertin. Well, in one of the key areas of auditing
    includes keeping an eye on waterfront----
        Senator Tester. I got you.
        Mr. Guertin [continuing]. Ship production----
        Senator Tester. That's fine.
        Mr. Guertin. But in the area of supervisor of ship
    building, that's an area we particularly need more help with.
        Senator Tester. Okay. Secretary Hunter.
        Mr. Hunter. Yes. Thank you, Senator. We really value the
    resources that we received in 2024 for the data account, that
    workforce development account, $42 million. Areas of need for
    us include, I would say software expertise. So, while we still
    rely on industry produce the vast majority of our software, we
    need enough government expertise to really be a good customer
    for that.
        And we are also increasingly doing organic development of
    software in our sustainment center. Not just for systems that
    are in sustainment but also for new development programs like
    B-21 in partnership with our prime. So that is a--that software
    workforce expertise is a key area of need.
        And I did want to also mention our acquisition workforce
    demonstration pilot which has been a pilot since the late-
    1990s. I personally believe it should be permanent but in a--at
    a minimum we need to extend it because that is a key way of--we
    keep our talent.
        Senator Tester. Last follow up really quick and you got to
    answer this very quickly. I got 20 seconds left. Do you guys
    have a plan to fix the shortages that you perceive within the
    contracting. Yes, or no?
        Mr. Hunter. Yes. We are executing that----
        Senator Tester. Secretary Guertin.
        Mr. Guertin. Yes, but we could definitely need some help.
        Senator Tester. Secretary Bush.
        Mr. Bush. Not with the funding I have right now Senator.
        Senator Tester. Okay. Thank you very much.
        Senator Murkowski. Thank you, Mr. Chairman. Thank you all
    for being here and your focus on what we need to be doing
    better when it comes to accelerating in the acquisition space.
    I think we recognize that sluggish is one of those words that
    perhaps best describes what happens in a bureaucracy like we
    are faced.
        I appreciate your response to the Chairman about workforce
    because that is key to most everything. But I want to start,
    Dr. LaPlante, if you were to give the department a letter grade
    here on its current efforts to reform and to improve the
    acquisition process and I noted Mr. Hunter that you said that
    you've got an acquisition pilot that has been in place for--
    since the '90s.
        Maybe sluggish is even too kind of a word but if you have
    to really critically assess where we are in and how we're
    improving the acquisition process, utilizing the new
    authorities that can help you move faster. What is that? And
    really what we need to know is what more can Congress do to
    help move you through to some better reforms here?
        Dr. LaPlante. Yes. I would give it a grade of a B and the
    reason I give it a grade of a B on the positive side is the
    American equipment is the best in the world. The demand for
    foreign military sales from U.S. equipment is at record highs.
    Everybody wants the equipment. Everybody sees it work in
    Ukraine and other places. They know it can also be trained for
    and sustained.
        The demand for our stuff is through the roof. We are seeing
    that every day. Why is it not higher than a B? Because number
    one, we still are too slow in certain areas particularly when
    involves with adapting modern software. Number two, we still do
    not have enough parts and pieces that are interchangeable that
    we can use and they're not proprietary to one company. The
    third area, which is still frustrating sometimes is we still
    over--don't get the requirements and the acquisition right and
    aligned up.
        So, we have a lot more work to do to get faster and to
    align those. But I would say there's still--when you look at
    cost schedule performances, my colleague in the Army, said
    largely net costs increases are coming down, performance is
    good and schedule is the one area we still need to make
    improvement on.
        Senator Murkowski. Let me ask you, Secretary Guertin, you
    mentioned that within the Navy you need to focus also on how
    you're building ships, I think is how you framed it. It's my
    understanding that some of what we're dealing with when we're
    looking at where the Navy is and the ship building demands is,
    is whether it's approving construction when design is not yet
    complete or perhaps altering existing requirements during the
    build itself.
        In other words, you don't have a flow here that is
    consistent. Can you expand on some of the internal lessons
    learned that the Navy is working to rectify as it faces some of
    these concerns with ship building.
        I think many of us in this committee, in this Congress are
    very concerned about where we are with our naval fleet.
        Mr. Guertin. Senator, I share your concern. I was given a
    charge by the Secretary of the Navy to, you know, look at ship
    building when I was fairly new into the position. And one of
    the things that came out of it was to understand our risk
    balance. And one of the things we haven't always done well is
    have a robust, stable design prior to launching into ship
    construction.
        One of the things that I intend on doing going forward is
    to make sure we're taking better advantage of modern
    development tools that we have for doing upfront modeling and
    naval architecture prior to going forward with construction.
    That's a fairly robust set of practices in the commercial
    industry but we need to take better advantage of them in how we
    build our naval ships.
        We need the right kind of people and the right kind of
    tools in order to be able to do that.
        Senator Murkowski. Let me ask, back to you, Dr. LaPlante.
    And this relates to our ground-based missile interceptors. As
    you know in Alaska, we have a pretty important project up
    there.
        Can you give me an update on the next generation
    interceptor program? Are we on track? Is it delayed? Is it
    possible that it could even be ahead of time? Where are we?
        Dr. LaPlante. Yes. The program is on track, the next
    generation interceptor, as you know, the--we were keeping and
    missile detector is keeping two contractor teams much later in
    the process than we typically do almost up to CDR (Critical
    Design Review). They're going through a down select as we know
    in the last couple of months. And I expect that to be on track
    and on time. Thank you.
        Senator Murkowski. Thank you.
        Thank you, Mr. Chairman.
        Senator Tester. Senator Shaheen.
        Senator Shaheen. Thank you all for being here. I'm going to
    begin a little parochially. Assistant Secretary Hunter, we're
    very proud that in New Hampshire, the 157th Air Guard flies the
    KC-46. They were the first unit in the country to get those KC-
    46s. So, I have watched very closely the delays in the rollout
    of the new remote vision system. I understand it's delayed yet
    again. So, what do we need to do to address that and how do we
    make sure that doesn't happen again?
        Mr. Hunter. Yes. It's a combination of factors, I would say
    the key thing right now is making sure we heal our supply
    chains. That has been related to access to the right
    microelectronics for that system and also getting FAA
    certification that's not particularly the case it's the
    engineering work required to get FAA certification. So, it's
    having that, that correct engineering expertise within the
    industrial base to achieve that necessary standard. So those
    are the two main things that are, that we need there. I think
    we're on path today to getting there. And I think we'll hit our
    current timelines for completing the RVS work. We've gone
    through the hardest part of the design stages, and we are very
    close to achieving that FAA certification.
        Senator Shaheen. So, what's the current timeline?
        Mr. Hunter. It is about 26----
        Senator Shaheen. Thank you. I will hold you to that.
    Secretary LaPlante, actually this is all of you, mentioned the
    importance of the flexibility reforms, the acquisition reforms
    that have been done in the last couple of years. And one of the
    concerns that I think we all have is how do those procurement
    authorities address the situation in Ukraine and allow us to
    prepare for future conflicts? So, Secretary LaPlante, do you
    want to start with that?
        Dr. LaPlante. Yes, well, the authorities that have been
    provided and we talked already about the software authorities
    and mid-tier acquisition have really allowed us to get started
    very, very fast and to move basically in an agile fashion if
    you want to use the agile term and go through sprints.
        So those were already up and being used across the services
    when Ukraine happened. What we've added to that with Ukraine
    was what we learned from Covid and how to do rapid contracting.
    A lot of the PPE (Personal Protective Equipment) and a lot of
    the stuff that was done with the vaccines during Covid was done
    by the Department of Defense. That same rapid contracting was
    put for Ukraine. So, we learned that.
        I think the other piece that we've learned from Ukraine
    with these authorities is even if you have these rapid
    capabilities you have to do, what sometimes one of my
    colleagues here calls the adult stuff, you have to worry about
    it being sustained. You have to worry about being trained to
    it. And so, you can go fast but you have to go fast with
    putting these other pieces in line. And that's what we're
    learning with Ukraine. But I'll turn over to my other
    colleagues.
        Mr. Bush. Senator, I would echo Dr. LaPlante's comments. I
    think the reforms are much appreciated. They do let us start
    programs faster which is a good thing. However, the basics
    still apply. You need good cost estimates, you need realistic
    requirements and you need at some point to do the whole package
    which is something we do better than any other country which is
    the logistics, the military construction that goes with a
    device like a new range for a new rifle.
        So, ma'am, I think as long as--you know getting started
    fast is good but it's not the whole story. However, it is a big
    deal and lets us respond more quickly to new technology and new
    threats.
        Senator Shaheen. Before I'm going to follow up on that. So,
    I don't need to have the other responses. I was just in the
    Indo-Pacific, one of our stops was in Japan, whereas you know,
    they have doubled their defense operations.
        And one of the things we heard there was concern about how
    fast their industrial base could respond to that directive. I
    have also heard that from our European friends about
    responding. How are we working with our allies to help them
    respond and why has Russia been able to rebuild its systems in
    a way that has allowed them to put out what appears to be so
    many more munitions than we've been able to get to Ukraine?
        Dr. LaPlante. I'll try to get to this very quickly and turn
    over my colleagues on.
        First, the Russia, we're all monitoring both an open source
    and other places. What is Russia doing in its industrial base.
    We saw that Putin just replaced his Minister of Defense with an
    economist with an emphasis, and I think a lot of us have taken
    away that this is not--they're not in it for the short term,
    they're in the long term.
        The second is the estimates that they're at 7 percent of
    their GDP (Gross Domestic Product) for military, and they're
    staying there, and they're on a wartime footing. Whatever you
    want to say about the United States, we are not. And I'm not
    suggesting we should or shouldn't, it's just we're not.
        Senator Shaheen. Right.
        Dr. LaPlante. The second thing on your point about allies
    and partners. Across the board, allies and partners are
    recognizing both in Europe and in Indo-Pacific, that they need
    an industrial base. Basically restart.
        For all of the criticism we give ourselves, rightfully so,
    they're envious of what the United States has been able to do.
    What we're talking to each of these countries, and I'll talk
    about Japan and then I'll turn it over as a specific example,
    is doing co-development, co-production with them to help their
    industrial base and ours at the same time.
        The next generation of missile defense interceptor is going
    to be called Glide Phase Intercept. It's beyond NGI (Next
    Generation Interceptor). That's a collaboration with the
    Japanese and Japanese companies and American companies. So,
    that's where this is all headed. You're going to see much more
    co-production, co-development co-sustains with allies and
    partners.
        Senator Shaheen. Thank you.
        Senator Tester. Senator Moran.
        Senator Moran. Chairman, thank you. One of the things
    that's taking place that I think has a consequence to the
    industrial base, the Defense Industrial Base, Spirit
    AeroSystems is a company that employs 12,000, 13,000 people in
    Kansas.
        Does a lot of sub work for nearly every prime defense
    contractor in the country. The indications are that it may be
    purchased by Boeing. Boeing, I assume is interested in its--and
    Spirit does significant work for Boeing today on the commercial
    side but there's a significant component of Spirit AeroSystems
    that is defense related.
        And I'm interested whether any of you are paying attention
    to this issue in part to understand what it might mean to our
    defense industrial base and to supplies, should this merger
    occur. I'd be interested in knowing how this may expand or
    contract our defense base?
        Dr. LaPlante. I'll say a few words, and then I'll ask my--
    --Senator Moran: I should have asked Mr. Hunter--
        Oh, maybe Andrew----
        Senator Moran. No, happy to hear from you----
        Dr. LaPlante. Yes, Doug. So, I'll give the standard caveat
    right at the beginning. I don't comment on any pending M&A
    obviously because it's a process that go through. I would also
    say a couple things. Number one is each one has to be----
        Senator Moran. Do you have input in----
        Dr. LaPlante. We do, on any of these M&A's (Mergers and
    Acquisitions) what happens--whether it's done by the FTC
    (Federal Trade Commission) or Department of Justice. The
    Department of Defense provides input on the--any collateral
    good or collateral bad that would come out of this. And we take
    each on a case-by-case basis. I would just say that, but
    obviously, the health of the U.S. industrial base particularly
    companies that do commercial as well as defense in their
    portfolio is something of keen interest to us. I'll turn it
    over to----
        Senator Moran. I only indicated, Mr. Hunter, because he
    just recently returned from visiting.
        Mr. Hunter. Yes, Senator, it was a great opportunity to
    visit Spirit and developed a deep appreciation for all the ways
    in which Spirit is contributing to a variety of U.S. Air Force
    programs and as you noted across a number of our key suppliers,
    our key prime vendors and in particular the manufacturing
    expertise that is resident there and the ability to leverage
    new production techniques that are very significant and
    important to our more cutting edge newer weapon systems
    leveraged out of the commercial development particularly 787.
        That is, I think, a key asset for the Nation. And so, we'll
    work closely with Dr. LaPlante in terms of the department's
    feedback to ensure that those capabilities are still able to be
    utilized in the best way possible.
        Senator Moran. Any, either. Under Secretary.
        Mr. Guertin. So, in just camping a little bit on what Dr.
    LaPlante said about how the Defense Department looks at this,
    but we also look through the lens of is it helping or hurting
    competition? We want competition in as many places as we can
    that helps us get a better deal from industry. So that's one of
    the lenses that we'll look at that through.
        Senator Moran. Let me highlight that Spirit AeroSystems,
    this tier one supplier, supports programs like the B-21, the V-
    280, the CH-53K. Its wide array across all of the department.
    And in my view the Defense Department ought to be at least
    encouraging me and others if not the--in addition to the
    administration to make sure that if there is a merger that the
    defense capabilities of Spirit are not somehow lost in the
    process.
        My assumption is that Boeing is almost exclusively
    interested in this for commercial manufacturing and yet if the
    absence of Spirit AeroSystems, we lose a lot of defense
    capabilities. I have visited with nearly--well four or five of
    the CEOs (Chief Executive Officer) whose companies do work in
    defense for--with Spirit. And it--there's a general feeling is
    I don't know where else we would go in the absence of Spirit
    doing what it does today.
        Honorable La Plante: And rest assured as the process as
    with others, we will weigh in on the defense implications both
    good and necessarily not good on that case. We will absolutely
    weigh in.
        Senator Moran. Thank you.
        Senator Tester. Senator Reed.
        Senator Reed. Thank you very much, gentlemen, and thank
    you, Mr. Chairman.
        And I want to reemphasize two points the Chairman made.
    First of all the responsibility for this predicament and it is
    a very serious one is shared by both Congress and the
    Executives. So, we have to work together. Also, the attrition
    of our government workforce is a key factor, and I don't think
    we're doing enough to remedy that.
        My impression on the decks if you will, there's a 27-year-
    old foreman talking to a 27-year-old representative of SUPSHIPS
    where before the pandemic there were 50-year old's talking to
    each other which makes a bit of a difference.
        But I want to go right to the Submarine Industrial Base. As
    you know, Congress initiated funding directly to rehabilitate
    and strengthen the Submarine Industrial Base. Four years later
    the Navy took up the course. But right now, the Columbia is
    behind and it's slipping further. We cannot produce two attacks
    submarines a year. We're at about 1.2 and I think everyone can
    see this platform is probably the most critical and decisive--
    both of them--in our inventory.
        So, Secretary LaPlante, you sent up a budget this year--the
    President did, which is only buying one Virginia Class boat but
    also putting a significant amount of money into the Submarine
    Industrial Base for parts for additional boats. Can you give us
    the rationale and logic?
        Dr. LaPlante. Yes, thank you, Senator. And as you well know
    and appreciate the help of this committee on the Submarine
    Industrial Base, the department had the difficult choice of
    either adding to the backlog that was there or take the money
    and invest it in increased capacity knowing that that's going
    to be delayed before we see the increased--and it's the
    increased capacity was what the department chose to do.
        Senator Reed. And do you have metrics to measure whether
    you're doing this efficiently or effectively?
        Dr. LaPlante. Yes. The closest metrics that we look at
    when--I know my Navy counterparts, I know probably you do as
    well and others, is we look at the work, take Columbia for
    example. We look at the plan of where they are in the work
    progress compared to the plan. Are they maintaining the plan?
    Are they falling behind? Are they ahead? And we're tracking it.
    I mean, I know the Navy is tracking it almost every week.
        We watch it at my level every month. And for example, in
    Columbia we lost some ground in the fall. It looks like we're
    gaining some of it back right now. The question is can we gain
    enough back to get the 1 year which is the nominal behind on
    Columbia to get that shortened. We're watching it very, very
    carefully.
        A lot of it has to do as you know with the technical data
    packages, the work instructions, getting to the workforce in a
    way that they can implement and with proper learning and
    efficiency. And we're also tracking how Columbia compares,
    which is 826 to the 827, which is the next submarine and where
    that is. And we're seeing the learning and the growth there,
    but we track it all the time. And I'd ask Nick if you want to
    add anything.
        Senator Reed. Please.
        Mr. Guertin. So, Senator as you know we are going to be up
    to the point where we need to be able to build two and a third
    Virginia's a year plus serial production on Columbia. We need
    to position ourselves for success in that regard. And the
    investments we're getting from Congress to be able to improve
    the throughput of the Submarine Industrial Base is critical to
    be able to get to that point where--and it'll be historic even
    when we are building Ohios, we're only building two Los Angeles
    as a year in both of those types of submarines or much simpler
    than these Virginias and Columbias will be.
        So, we absolutely support that investment. So, we could get
    to the point where we can build two and a third Virginias a
    year and serial production of Columbia and get to that historic
    high level of throughput.
        Senator Reed. Do you think you have the capacity to do
    that?
        Mr. Guertin. No sir we don't, but with the investments that
    we are going to be executing over the course of the next few
    years, we will get to that point.
        Senator Reed. That would mean investments in additional
    shipyards or additional capacity in shipyards.
        Mr. Guertin. So, the capacity we're looking at right now is
    to improve the shipyards we have in the near term, that's where
    we need to put our money. I would like to for--we have actually
    are thinking about and looking at where else we might have
    shipyard capacity but right now we're driving more of the work
    out of the shipyards where they are right at the waterfront and
    trying to push more of that work into other facilities that can
    support bringing those submarines together in the couple of
    places that are unique to that capacity.
        Senator Reed. Thank you very much. And Secretary Hunter, in
    2023, in the NDAA, we created a site activation task force
    resident at Air Force Global Strike to bring operational views
    into the process of the Sentinel Program. How is that task
    force working, and how are they helping, I hope, with the Nunn-
    McCurdy breach?
        Mr. Hunter. Senator, they are helping. I work very closely
    with General Connor who leads that task force, meet with him on
    a very regular basis as we go through the Sentinel Nunn McCurdy
    process. But of course, we continue to execute that program
    while we're going through the Nunn McCurdy process. So that's a
    key partnership.
        We view B-21 as the best model for integrating our
    operators and our acquirers as I referenced in my opening
    statement. And that is the model we are looking to execute with
    Sentinel. We haven't reached quite that B-21 level of
    integration yet, but we are well on our way. We have staffed up
    in the program office with operators from Global Strike, both
    operators and maintainers. And we are starting to see benefits
    of that especially as we go through some of the design choices
    that we have to make to get to where we want to be with the
    Nunn McCurdy process.
        Senator Reed. Thank you very much.
        Senator Tester. Senator Boozman.
        Senator Boozman. Thank you, Mr. Chairman.
        Dr. LaPlante, we are faced with urgent need to prioritize
    critical munitions and replenish our stockpile commodities
    against the backdrop of budget hindered by constraints. This
    fiscal year missiles and munitions comprise of 10 percent of
    the department's investment funding at $29.8 billion. Dr.
    LaPlante, how will current budgetary restrictions coupled with
    inflation affect your long-term acquisition strategy for
    munitions?
        Dr. LaPlante. Thank you for the question. Yes. I think what
    we've all seen in the last couple of years and actually this is
    probably the fourth time it's happened since 2000, where when a
    crisis happens within a year or two, we realize that precision
    munitions, that we run low on inventory. And part of this is
    because we bought munitions historically 1 year at a time.
        As I mentioned in my opening, the fact that this committee
    helped us get multi-years, really gives that demand signal back
    to industry to say we're not just going to buy these key
    munitions 1 year at a time, we're going to buy them in multi-
    year. And you can commit your own capital, your own workforce
    to this.
        So, what we have for multi-year, thanks to this committee
    and others, we have multi-year contracts we're putting in
    place--the Army already for 155, we're going to put them in for
    LRASM--Long Range Anti-ship Missile, for JASSM, for Patriot,
    MS-3 which is the advanced Patriot and Naval Strike Missile.
        That's what we're doing to begin to build this back to show
    the commitment to industry that not just for this year, but you
    perform, you're going to have this work 3, 4 years from now. So
    that's what we're doing. But I would say overall, the budget
    obviously constrains it. As I've said, we've always dialed down
    on manufacturing and production, because you can. And so, it is
    one of the bill payers. It's historically been one of the bill
    payers.
        Senator Boozman. So again, we've given you this authority.
    Will you be able to in the next year or two, then be able to
    give us good data, working with your partners as to the
    positive effect that this is going to have?
        Dr. LaPlante. Absolutely and I would say we're already
    seeing some of the positive effect, but we'll do.
        Senator Boozman. Good. Thank you very much. Also, I want to
    highlight the domestic availability of ingredients necessary to
    manufacture smokeless gunpowder including nitrocellulose,
    nitroglycerin, and acid production. A supply chain shortage in
    these areas could not only impact the ability to manufacture
    ammunition but also increase the cost.
        Dr. LaPlante, has the department studied the domestic
    availability of these ammunition components. And is the
    department concerned with the current limited availability of
    nitrocellulose? What are the limitations for current and future
    production of nitrocellulose?
        Dr. LaPlante. Thank you. And it has been said many times,
    energetics, which some of these are in the category of
    energetics actually is the limiting factor for some of these
    munitions in terms of global actually.
        So, in the cases of almost all the items you mentioned we
    are--and I can actually ask the Army to jump in here finding
    alternative sources, domestic sources to really replace these
    very rare things that many of them were from overseas. But I'd
    ask Doug if you want to add anything.
        Mr. Bush. Senator, on the Nitrocellulose front
    specifically, we have this year coming online at a Radford Army
    ammunition plant, a $700 million previous investment made years
    ago by Congress to go to a fully modern, very high-capacity
    production capacity that's on our ammo plan.
        So, Senator, I think that one, we are going to end up ahead
    of the problem not behind which is great to see. However, we do
    have other sources. We have focused on making sure those are
    friendly countries. Of course, we want allies providing these
    things not our potential enemies.
        Senator Boozman. Right.
        Mr. Bush. We have other tasks sir, directed by Congress
    to--by 2028, not have any I would say unfriendly sources in our
    ammunition chemical supply chain I would call it.
        And we're committed to achieving that sir. And it's going
    to require some investments here but also working with members
    on working through how we can do that with allies as well.
        Senator Boozman. Good. So that's the one we're hearing the
    most about the nitrocellulose. Anything we can do to support
    your efforts you know, just let us know. The National Defense
    Industrial Strategy prioritizes the need for skilled and
    staffed workforce. Camden, Arkansas has become a leader in the
    defense industry at a time when our country needs it the most.
    We recognize there's more work to be done to recruit, retain
    and provide skilled workers with the best opportunities as we
    ramp up production and capacity.
        Dr. LaPlante, to what extent is the department working with
    industry partners to invest and renew interest in industrial
    jobs to optimize workforce readiness?
        Dr. LaPlante. Thank you, Senator. Almost every meeting that
    we have with industry that I have, or my colleagues have, most
    of the meeting is talking about workforce. And each company is
    in sort of a different place, which you'd expect but writ
    large, for example, welders across the country in any industry
    are--they're, very prized right now.
        The other piece that we're seeing is the price differential
    between what the defense industrial base will pay for, let's
    say some type of workman, HVAC (heating ventilation and air
    conditioning) or whatever. The delta between that and the
    services industry has decreased. So, we have to work with the
    companies without--you know, we're doing a cost effective and
    how we can get some of the wages higher.
        The other piece of this that we're finding is really
    important is supervisors. We had a whole generation of
    supervisors basically retire during Covid. What really matters
    to most workers is your direct supervisor. So, a lot of
    emphasis there, but this is a huge--it is the number one issue
    for our industrial basis workforce.
        Senator Boozman. Right. Very good. Thank you all so much
    for all you do. We really do appreciate you.
        Senator Tester. Senator Baldwin.
        Senator Baldwin. Thank you, Mr. Chairman.
        Secretary Guertin, during a recent Senate Armed Services
    Committee hearing Senator Peters asked you about the Frigate
    program. I take issue with your answer and I want to--you seem
    to minimize the Navy's shared responsibility for challenges
    facing that program.
        In my view, it's not merely that the Navy failed to perform
    sufficient oversight as you mentioned in your response but that
    the Navy has directly contributed to the delay by requesting
    substantial design changes as well as a slowly approving design
    deliverable. By some reports, the Frigate was intended to
    maintain 85 percent of a prior design but now in part due to
    the Navy's request for changes retains only 15 percent of that
    previous design.
        And while some changes related to enhanced survivability
    are to be expected, these drastic numbers tell me that the Navy
    is contributing to program delays. So, Mr. Secretary, yes or
    no, do you agree that the Navy shares responsibility for the
    ship design issues that have caused delays for the Frigate?
        Mr. Guertin. Senator. Yes, I do. I'm sorry that I left that
    impression. This is absolutely a government industry
    partnership and the extent that--I mean we didn't change the
    requirements for survivability after the contract was let but I
    don't think we understood the full impact of what that was
    going to be when the ship designers and naval architects got to
    work and figured out, well, what did that requirement mean in
    terms of the impact to the base designs.
        Senator Baldwin. Thank you for that response. The Navy has
    identified growing and maintaining a skilled workforce as a
    primary challenge for the Frigate Program. For the last 2
    years, I secured increases to the Navy's budget specifically to
    expand the Frigate workforce and industrial base.
        And I'm working again this year to increase workforce
    funding because the need certainly remains. Mr. Secretary, how
    will this workforce investment address factors contributing to
    the Frigate delay?
        Mr. Guertin. Thank you, Senator, for helping us with
    getting a workforce especially in the places where were
    necessary for building this Frigate. It's been especially
    helpful to make sure that we have the right people out in those
    build buildings. I had a chance to visit up there in Marinette
    a couple of times and it is a fantastic facility. We just don't
    have enough people out there building those ships and that will
    be a big help to attract people into that environment.
        But we also need to work with the secretary specifically to
    make it an attractive place to work in terms of the equities
    for working in that environment, childcare and other kinds of
    aspects of the community nearby. And we can do that in
    partnership with industry with your support.
        Senator Baldwin. Thank you. Thank you, Mr. Chairman.
        Senator Tester. Senator Hoeven.
        Senator Hoeven. Thanks Mr. Chairman.
        Secretary LaPlante, one of the most important things we're
    doing is updating the Nuclear Triad, incredibly important. And
    we're now doing a Nunn McCurdy review on the Sentinel portion.
    Are you committed to making sure that we work through that,
    that we stay on track and that we do the full Sentinel
    modernization on schedule?
        Dr. LaPlante. Thank you for the question. Just to state the
    important thing right at the very beginning as you said.
    Senator, number one, the modernization of our triad is the top
    priority of the Defense Department. The triad of course is the
    next generation bomber, B-21, the next generation SSBN Columbia
    we just spoke to and of course Sentinel that which replaces
    Minuteman III.
        In the 2022 Nuclear Posture Review, Biden's administration
    reaffirmed the need for a triad. So, Nunn-McCurdy or not, we
    have a policy of our country of having and sustaining a triad.
    In the case of the Nunn McCurdy, I'm committed to working with
    the Air Force and with the cross DOD team to go through the
    letter of the law and make sure that we--if we do recertify and
    it's not a guarantee that we were recertify a program that is
    executable and will meet replacing that leg of the triad.
        We're about a month and a half from the end of that
    process. We have a lot of work going on. And I'll just continue
    to keep this committee informed but separate from the Nunn
    McCurdy, we need a triad.
        Senator Hoeven. Okay. Thank you, Secretary. And then I know
    the Chairman of this committee shares my sentiments on this,
    but is there anything that we can do that is helpful to you in
    this process?
        Dr. LaPlante. I think already there's been a tremendous
    help particularly, of course, by the Chairman here. I think a
    lot of the focus assuming if we go forward is going to be
    really on the localities on getting for the States impacted, of
    course Montana, Wyoming, Colorado, Nebraska, North Dakota, that
    we are reaching out as soon as possible to make sure the
    communities are ready for what's coming, to make sure we're
    listening to the communities.
        And as I've spoken with the Chairman here, to make sure
    that things like the vocations needed that we're as early as
    possible get that into communities. And of course, you all know
    your communities better than anybody and so any of your help
    will be appreciated including letting us know when we're not
    making the mark.
        Senator Hoeven. Okay. Thank you, Secretary.
        Next question relates to countering drones. We're seeing,
    obviously, in Ukraine, Israel, across the world the threat that
    is posed by drones. In some cases, we're using million-dollar
    missiles to shoot down a very inexpensive drone. And then
    you've got swarms. What are we doing on countering drones to
    get ahead of the curve here?
        Dr. LaPlante. That is the problem of our time. So, we're
    doing a lot. Number one is that, I chair that started just in
    March and a senior integration group that moves counter drone
    equipment into theater ASAP.
        At the same time, the Army is the lead service on building
    out towards and integrated capabilities. We now have a between
    40 and 50 different counter drone technologies. We're finding
    out which ones work and which ones need to get fielded. To your
    point we also have to make the exchange ratio be cost
    effective. If we're shooting down a $50,000 one-way drone with
    a $3 million missile, that's not a good cost equation. We're
    working through it.
        Many of the solutions we're looking towards with industry
    and with non-traditionals are very cost effective. That is our
    high priority. But I will say the technology is changing every
    couple of weeks and the tactics are changing and it's going to
    be just a constant fight. But we're all over it.
        Senator Hoeven. At Grand Forks, we do an incredible amount
    of work with drones not only in terms of the base's mission
    there but we have a test site for UAS there, also we've got
    Customs and Border Protection co-located on the base.
        We have responsibility for 900 miles of border, actually
    all the way out to contiguous with the Chairman's State. That
    would be a very good location for you to do some of this work.
    Are you aware of what's going on there and what about looking
    at it for some of this work?
        Dr. LaPlante. The details that you just went through I'm
    not aware of, but I'd love to follow up on it. And to the
    point, the talent and the expertise in building drones
    oftentimes is exactly the same expertise in countering them.
    Because you understand actually what the technology is, what
    they're dependent upon. So yes, I'd be happy to follow up.
        Senator Hoeven. Yes. I'd like to get you out there. And
    also, Secretary Hunter, same for you. And I would like to add
    the ISR (Intelligence, Surveillance, and Reconnaissance)
    component. We need more ISR, what are we doing to make sure we
    lead the world in that ISR capability?
        Mr. Hunter. Well, thank you, Senator. We are working hard
    on that. Obviously, there's elements of that we can't talk
    about in this forum but that is a huge priority for the Air
    Force. And so, we will continue to dialogue with you on the
    investments that we're making there to advance those
    capabilities. I agree with you. They're essential particularly
    to our kill chains.
        Senator Hoeven. And I'd like to get you out to North
    Dakota, to Grand Forks area along with Secretary LaPlante. I
    think it would be helpful for both of you. Thank you. Thanks to
    all of you for being here today. Appreciate it.
        Thank you, Mr. Chair.
        Senator Tester. Senator Coons.
        Senator Coons. Thank you very much, Chairman Tester, and
    thank you to all of you.
        I agree with you that we have widespread, I think,
    bipartisan grave concern about whether our defense system
    overall is appropriately aligned with the requirements of the
    war fighter. That we are taking advantage of innovation in the
    American system as we are producing and delivering weapons and
    weapon systems and platforms that are more and more dependent
    on software, on IT, on interoperability and communications.
        I'm concerned we're not learning the lessons of the war in
    Ukraine. The MacGyvering of solutions in the midst of an
    otherwise very difficult and complex battle space. So, let me
    just briefly ask a few questions if I might as the newest
    member of the committee.
        You recognize, if I might, that there's a huge acquisition
    workforce. I think 187,000 acquisitions professionals. And that
    just having the workforce to do the acquisition is important.
        What work is being done, if I might Under Secretary
    LaPlante to make sure that the acquisition workforce is
    familiar with, comfortable with and able to use authorities
    like other transactions authority, CSO (Commercial Solutions
    Opening) to take advantage of the MTA (Middle Tier Acquisition)
    pathway. What's being done to make sure that more broadly the
    acquisitions community that may have never seen or done one of
    these transactions is able to?
        Dr. LaPlante. Yes. We have a whole education and training
    effort led out Defense Acquisition University. I was just there
    actually 2 days ago speaking to one of their graduating classes
    that it's all about having experts come in with case studies
    and say this is how you use the software acquisition pathway.
    This is what you need to know about modern software and
    teaching, teaching, teaching.
        The best thing that can be done is experts that have done
    it in one part of the DOD teaching experts in another part. And
    that's what we're doing. We're spreading the word. It's a lot
    more of it is online and a lot more of it is also--we're
    bringing in industry.
        In fact, the class that I spoke to the other day had--a
    quarter of it were from industry. So, I think all of the above
    is what we're doing. Knowing that you can be an expert in
    software acquisition today, 2 years from now you may not be an
    expert anymore. You have to keep up with it.
        Senator Coons. I was struck in your testimony and maybe I
    just misread these numbers quickly. Of 236 programs that use
    the MTA pathway, 3 have transitioned to full operational
    capability and 107 to other pathways. Help me understand that
    ratio. Did I misunderstand what the other pathways meant?
        Dr. LaPlante. Yes, let me tell you what I believe without
    having the numbers right in front of me. So, the mid-tier
    acquisition was put in place via section 804 of the fiscal year
    NDAA and there was a restriction on it that said or basically
    said with waivers, it's got to be out of it by 5 years.
        So, by definition 5 years later, you're not going to be an
    MTA anymore for most of these that were started then. So, the
    question is when you're nearing the end of that MTA, which is
    rapid fielding or rapid prototyping, what do you do? Do you
    transition it into major capability which means, for example,
    now go into higher rates of production or do you do some other
    version of it? And I think that's what you're seeing. We do
    have examples of where they've reached the war fighter.
        Senator Coons. Last question, if I might. A big piece of
    the NDIS (National Defense Industrial Strategy) partnering and
    our allies. AUKUS Pillar 2 is particularly intriguing to me.
    What do you see as priorities for co-development with close
    allies? And this may also be particularly relevant to the Navy,
    of capabilities that may be both in terms of workforce and in
    platforms we can't do on our own?
        Dr. LaPlante. So, Senator, you mentioned earlier the
    lessons of Ukraine. One of the lessons of Ukraine is co-
    production of munitions. So right now, we're working a lot
    across Europe around co-production of 155, co-production of
    Patriot in Australia, separate from AUKUS. We're going to be
    doing co-production--the Army is of GMLRS (Guided Multiple
    Launch Rocket System) and eventually PrSM (Precision Strike
    Missile) and I mentioned earlier about Japan with the Glide. I
    think you're going to see much more co-production and co-
    sustainment with our allies and partners.
        Senator Coons. Thank you for your testimony. I look forward
    to staying in touch and I will echo what you heard from several
    other Senators about the urgency of deploying the counter UAS
    platforms at speed that are effective and affordable.
        Senator Tester. Thank you, Senator Coons. We're going to do
    another round. And I've got a short question that I'm going to
    ask. It goes to the previous question that I started out with,
    and it goes actually to your answer.
        Secretary Bush, you said you didn't have the money at this
    time so I want to kind of flesh that out a little bit. Congress
    established a distinct appropriations account to ensure
    sufficient funding to recruit and retain acquisition personnel.
    Have you used that account? Do you have access to that account?
    Is it effective?
        Mr. Bush. So, Senator, the DODF account, yes, we of course
    use it to train folks and if it was bigger that would actually
    be very helpful and it wouldn't have to be dramatically bigger,
    a little bit could go a long way across the services.
        Senator Tester. Okay. As far as the Navy and the Air Force
    goes, do you guys use that account and do you feel same way as
    Secretary Bush feels?
        Mr. Guertin. Yes, Senator, we do. And it's been very
    effective, much like what the Army's experience has been.
        Senator Tester. Is it adequate?
        Mr. Guertin. I'll have to get back to you on that. I don't
    have a number in front of me right now but I'd say we could
    probably use more.
        Senator Tester. Okay. Keep going, Secretary Hunter.
        Mr. Hunter. Senator, we do use it as I mentioned $42
    million in the 2024 budget. Our request for 2025 is $52 million
    within that account. So, it is an increase and it reflects the
    fact that we are ramping up both development and production
    across a number of acquisition programs. So, we do need more
    resources and have requested them.
        Senator Tester. Did you have any questions? Senator
    Murkowski.
        Senator Murkowski. Thank you, Mr. Chairman.
        Mr. Hunter, in the fiscal year 2025 budget, Air Force is
    acquiring less fighters than originally projected six less F-
    35s, six less F-15EXs than originally planned. We all get that
    it's right to get the right technology but at some point, it
    doesn't really matter how capable the fighter is, you have to
    have sufficient numbers.
        In Alaska right now, the 18th Fighter Intercept Squadron,
    we think is accepting some increased risks because of the low
    inventory of the F-16s in the unit. So, question to you is as
    our threats and missions increase our aircraft inventory
    continues to decrease, does Air Force have a plan to increase
    the size of its fight or fleet in the out years?
        Mr. Hunter. So, we are continuing with purchase of our 5th
    Gen fighter aircraft F-35 and F-15EX in the 2025 request. We
    also intend to in effect multiply, force multiply that fighter
    force with the collaborative combat aircraft. And that's trying
    to, again, change that cost equation that Dr. LaPlante
    referenced that in terms of munitions, it's also very true in
    the tactical aircraft space that at some point we need a mix of
    affordable aircraft along with our higher end fighter aircraft.
        And so, we see the collaborative combat aircraft as being
    that affordable element that allows us to force multiply our
    fighter fleet, which the crewed fighter fleet, which remains
    essential but is always something where it's going to be
    challenging to get up to, you know, the hundreds of aircraft
    production numbers that would be necessary to stay completely
    even on the size of our fighter force.
        Senator Murkowski. So, let me ask a question about the
    expansion of research and the modernization funding in OSD
    (Office of Secretary of Defense) rather than in the military
    services, in this fiscal year that includes $1 billion in DIU
    (Defense Innovation Unit) and more than $500 million for the
    replicator initiatives to field thousands of autonomous
    attributable systems in the next 18 months.
        One of the things that has been underscored in this
    committee is that OSD-led efforts have a clear path to be
    fielded at scale which is really the responsibility of the
    military services, drones or other innovative capabilities just
    can't be bought. They need to be incorporated into the tactics
    and the procedures for how the military services prepare and
    fight war as well as being maintained and modernized.
        So, for each of you here there is--do we have sufficient
    rigor to ensure these sorts of efforts at the OSD level? That
    there's robust clear transition plans that include how the
    services are going to employ field and maintain these systems
    at scale.
        Dr. LaPlante. I'll start by saying first, by asking the
    question Senator, you're actually making a really, really
    important point. The services lead on fielding at scale and
    organized training equip, not OSD----
        Senator Murkowski. Right.
        Dr. LaPlante. Not OSD. And so, what's really, really
    important is much beyond the technology and the widget is what
    we call DOTmLPF, the doctrine, the training, the operations.
    So, if otherwise, it just doesn't really matter and we're
    seeing that with Ukraine. So, what's really important of these
    prototypes and efforts, whether they're done by OSD, DARPA
    (Defense Advanced Research Projects Agency), or done by in--you
    know, IRAD, is that if it's successful, a credible way to get
    this at scale and that the services can use it, can train to
    it, and can sustain it. So, it's a key point for us to watch
    rather than just get excited about the prototype by itself.
        Senator Murkowski. So, you think it's a good idea, but
    we're not quite there yet in terms of making sure that we are
    implementing to scale?
        Dr. LaPlante. I would say it's a good idea but the--if it's
    like saying if you're three innings into a baseball game and
    the pitching's going really well don't celebrate because you
    have to finish the job and finish the job as the stuff has to
    get to the services.
        Senator Murkowski. Secretary Bush.
        Mr. Bush. Senator, I would suggest members think of it in
    two ways. One is OSE does have a times useful independent role
    in experimentation and prototyping with technologies that we
    haven't been able to focus on. And there needs to be a space
    for that. There needs to be funding for that because sometimes
    they do discover things that we won't on our own.
        However, when it comes to scale ma'am, the most productive
    efforts are ones that are paired with the services meaning they
    are collaborative and cooperative with a clear path to us from
    their work. We have had some successes.
        The Army's new mid-range capability, which is our land-
    based anti-ship batteries started with the Scope Project and we
    took it, created, and made it an Army Program. We took their
    work, built on it and are now--we have fielded that. So, there
    can be successes, ma'am. We're doing that with replicator with
    the Army's effort that's been announced.
        I think that tight coupling is where when the dollars get
    big there needs to be a service partner identified in advance
    before the money gets too big--would be my way to think about
    oversight.
        Senator Murkowski. Appreciate that. Secretary Guertin,
    anything final to add?
        Mr. Guertin. So, the Navy has been very supportive of
    replicator. We actually brought two Navy and one Marine Corps
    projects to the first tranche of replicator in partnership with
    OSD. And I echo Mr. Bush's comments that that partnership is
    critical to fielding at scale.
        One other aspect to that is when we're looking at these
    kinds of initiatives, we want to make sure we carry forward the
    sustainability and support work to make sure there are
    soldiers, sailors, airmen, marines, guardians can actually use
    this stuff in a reliable way when they need to in a fight.
        Senator Tester. Senator Murphy.
        Senator Murphy. Thank you very much, Mr. Chairman. Good to
    see you all. Thank you all for your service.
        I wanted to turn to a very expensive program with a set of
    serious safety concerns attached to it. That's the Tilt Rotor
    V-22 Osprey Program.
        At the end of November, 2023, we saw yet another fatal
    Osprey crash that claimed the lives of eight airmen due to a
    parts failure. From March, 2022 to November, 2023, we had 20
    service members die in four fatal crashes. In February of 2023,
    DOD indicated that it had solved the hard-clutch engagement
    problem, thought to be behind these accidents with 99 percent
    certainty.
        The department made that assurance only for two more
    Ospreys to go down in Australia in August and then in Japan in
    November of 2023, the accident I referenced. It's an important
    program. It's an expensive program but it's a program that
    seems to be plagued by significant and deadly safety concern.
        So, Assistant Secretary Hunter, and Assistant Secretary
    Guertin, let me ask you this, I know you take these losses
    tremendously seriously. Can you update the committee on how
    your services are working to address these unanswered and
    ongoing safety problems with the V-22 Osprey?
        Mr. Guertin. Senator, you're right. This is a particularly
    grave concern. The Navy and Air Force took it very seriously.
    We did a grounding of those aircraft after the November crash
    and we rigorously investigated. We looked at what the--we
    actually brought that craft back up out of the water. We
    investigated what was going on to detailed analysis and we
    better understand what happened in that particular failure
    mode. We have established a crawl-walk-run approach to get back
    to the point where we can get back to the flight----
        So, getting back to the crawl-walk-run, we're now in a
    limited envelope but we're characterizing and collecting data
    so that we can better understand where we are and be able to
    safely get back to the full flight envelope of that aircraft.
    The Marines have been flying that thing for years. They have a
    lot of them, they love that aircraft but we have to make sure
    that it's safe for them to fly.
        Mr. Hunter. And Senator, I appreciate the question. We
    obviously very deeply regret the loss of life. It was a
    terrible tragedy. We have been working very closely with the
    Navy on the sharing our engineering expertise. The Navy is the
    lead--has the lead engineering role and function for this
    platform but it's an important platform for the Air Force as
    well. And as secretary Guertin indicated with the crawl-walk-
    run approach, we have definitely taken great care.
        And I know AFSOC (Air Force Special Operations Command) has
    taken great care to ensure that as we get on the path to return
    to flight operations every step of an echelon of the operating
    units and the support functions that support them are ready to
    go to the next stage to resume flight operations.
        Senator Murphy. 20 service members lost in the last 2
    years. 60 service members lost overall to the Osprey. Look
    forward to continuing this dialogue.
        To Secretary LaPlante, and Secretary Bush. I'll note that
    the Army decided in 2022 to move forward with a Tilt Rotor
    Aircraft for the future long-range assault aircraft despite
    these safety concerns. And despite the Tilt Rotor bid being
    close to twice the cost of the competing bid. And so, this
    committee is left with a contract award for a major program for
    the Army that has potential major cost implications and has
    serious safety concerns.
        So, let me ask you can you talk about the steps that are
    being taken by the department and the Army with respect to the
    Flora contract that is underway to ensure that this new Tilt
    Rotor, the Valor, does not expose soldiers to the same risks
    that are apparent with the Tilt Rotor Osprey?
        Dr. LaPlante. I'll just say a few words and then turn it
    over to my colleague Doug. Obviously, the safety considerations
    and the hard facts of what you've been saying about these
    terrible losses in the last year and a half weigh heavily on
    us. And I know the Army is--it's all part of how they're
    considering going forward, these programs. I'll let Doug
    continue.
        Mr. Bush. Senator, thank you for the question. I believe
    the Army--we believe we will benefit from the 20 years of
    engineering experience and knowledge that the Osprey has, will
    provide to our design which we believe will be fundamentally
    different in certain respects to make it as reliable and safe
    an aircraft as possible.
        Senator, military aircraft do tragically crash sometimes.
    Military service is inherently dangerous, but we are committed
    to, of course, the safest aircraft we can possibly get. And we
    were happy to--we will work with members on that as we move
    forward.
        Senator Murphy. Well, I appreciate your answers, but I
    think anybody who has followed the history of military aviation
    would submit there have been particularly difficult problems
    with the Tilt Rotor, in part, because of the complexity of its
    design. And I certainly worry that we have not to any degree of
    satisfaction to these families settled the safety concerns on
    the Osprey.
        And to your point Secretary Bush, we are developing a new
    version of the Tilt Rotor and so some of the lessons learned
    will be applicable but there's also just as good a chance that
    there are going to be a whole new set of safety concerns with
    the Valor that are going to add to the expense of this program
    that are ultimately going to be significant safety liabilities
    for our servicemen and cost liabilities for this committee.
    Thank you, Mr. Chairman.
        Senator Tester. Senator Moran.
        Senator Moran. Mr. Chairman, thank you.
        Just a couple of questions in what time I have. Talk a bit
    about ammunition. Secretary Bush, you and I had a conversation
    I think in a classified setting about ammunition. We have an
    old army ammunition plant in Kansas that the Army has invested
    significant dollars to bring it back into production. And I
    think as a result of the passage of the Supplemental, that
    plant is now prepared to manufacture 12,000 155-millimeter
    ammunition as requested. So, thank you for that investment.
        My question is, are we going to avoid the ups and downs and
    based upon the demand of the moment for ammunition, is there
    any demand signal to this plant or any other in the country?
    What happens when Ukraine is behind us? Is there a plan that
    precludes going through what we just went through with this
    significant investment that doesn't require that again in the
    future?
        Mr. Bush. Senator, yes. If I could first say thank you for
    the support and for the great folks in Kansas who are helping
    us build that load assemble pack facility. It comes online this
    summer as part of our overall ramp up to our desired level.
        To your main question, we are thinking very carefully about
    that. What we don't want to happen is a cliff, where we have a
    rapid loss of workforce and an unwise ramp down that puts at
    risk these investments we're making in brand new facilities.
        So, Senator, my ideal situation would be, oh, you know,
    over time when we are required to ramp down to lower production
    levels, we do two things, one, we maintain these facilities
    either--ideally with work--foreign military sales for example.
        If we can keep that going, that lets us keep the high
    production rates going even longer and--but even if that winds
    down that we work share among the different facilities to
    maintain them in at least a warm status with enough people to
    be able to ramp up quickly.
        One thing I will admit was not in place before was a really
    a kind of a war plan to ramp up production. Just like we have
    war plans for going in fighting wars. I believe we need one for
    mobilization and one that we should rehearse and think about
    and try out every now and then, even if it's simulated.
        So that, Senator, needs to be a key lesson learned from
    this whole thing for the department, not just the Army, so that
    our potential enemies know that we can ramp up quickly and that
    should deter them from taking us on. But we have to do it,
    Senator, not just talk about it.
        Dr. LaPlante. Yes, just add to what Doug said. What we're
    putting in place with the methodology that Honorable Chris
    Lowman who works for me is doing with the services is not just
    have the requirement for the level of the munition, but to say
    what is the requirement after the conflict is over to replenish
    or reconstitute the munition, how fast, and to what extent, and
    put that in the requirements. And then we all have to budget to
    it.
        So, we have to stick with it. I think because both the
    multi-year that we mentioned that you gave us and this concept
    that Doug's describing, we have to do it because we always get
    surprised.
        Senator Moran. Thank you both for your answers.
        My final question, Mr. Chairman. Technology coordination
    between defense and commercial sectors seems important to me
    and a bit for what I talked about earlier in my questioning. To
    facilitate the speed and development of JADC2 (Joint All-Domain
    Command and Control) in this case capabilities. Dr. LaPlante,
    would you speak to the need for clarity and assigned
    responsibilities for JADC2 within the DOD?
        Dr. LaPlante. Yes, thank you. The DOD is building out
    what's the JADC2, which in layman's terms is a way of doing the
    kill chain, if you will command and control of the kill chain
    across multiple weapons, multiple sensors, and multiple
    platforms. Doing that together with kinetic and non-kinetic is
    what JADC2 is all about. And it's what the department is
    building out. The services are working diligently on their
    piece. What OSD is doing is making sure that the standards are
    correct between the difference.
        So, we have interoperability that we don't have vendor
    lock. And then to your point about commercial, that we take
    advantage of the best of commercial technology and make sure
    it's in there. Whether it's rapid networking reconstitution,
    whether it's artificial intelligence, that is what's being
    built with JADC2, the services are doing their piece. OSD is
    making sure that they can talk to each other as we build it
    together.
        Senator Moran. Would non-DOD experts in the development of
    this capacity be beneficial?
        Dr. LaPlante. Absolutely, because if you think about what a
    5G has had to do, which is build a terrestrial network that has
    high data rate, low latency, that is essentially what we need
    in JADC2 with the caveat that we're fighting these things in
    very contested areas.
        Senator Moran. Thank you.
        Senator Tester. I want to thank you for your testimony. I
    want to thank each and every one of you for the work that you
    do. We've got challenges out there in this acquisition sphere
    whether it's competition, whether it's workforce, whether it's
    timelines, whether it's meeting costs, whether it's the
    continuing CR baloney, and I'm being generous when I say
    baloney, that comes out of Congress, whether it's government
    shutdowns, whether it's budget adequacy. We've got to work
    together. We've got to be honest with one another. This is
    important stuff, especially at this moment in time.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senators may submit additional written questions. We would
    ask that you would respond to those questions, if they come in,
    at a reasonable amount of time. This defense subcommittee will
    reconvene on Tuesday, May 21, at 10 a.m. for a hearing with the
    Department of Army.
        [The following questions were not asked at the hearing, but
    were submitted to the Department for response subsequent to the
    hearing:]
                 Questions Submitted to Dr. William A. LaPlante
                   Questions Submitted by Senator Jon Tester
        Question. I strongly believe that competition drives better
    acquisition outcomes: it fosters innovation and keeps prices low. I
    assume you all agree with me on that? That said, often times the
    military services will reduce competition with the intent of achieving
    near-term budget savings--only to have to deal with vendor lock and
    lack of competitive alternatives later.
        Secretary LaPlante, after laying out acquisition and funding
    strategies that ensured competition throughout development, the Missile
    Defense Agency in this budget is eliminating the competitions for the
    Ground-Based Interceptor (which defend the U.S. homeland against
    intercontinental ballistic missiles), and the Glide Phase Interceptor
    (which defend against hypersonic threats). I understand the budget
    pressures, but is this really a prudent approach? How do you ensure we
    don't pay for this decision later?
        Answer. We acknowledge that earlier down select introduces
    additional risk into both the Next Generation Interceptor and Glide
    Phase Interceptor development; however, this risk is mitigated based on
    the technical maturity of the solutions, objective contractor-provided
    performance data, and technical rigor and testing built into the
    upfront design and development process. For the Next Generation
    Interceptor, the Department applied lessons learned from the Redesigned
    Kill Vehicle effort and mitigated risk throughout the acquisition and
    development process. The Glide Phase Interceptor program follows a
    similar approach leveraging learning and experience developing glide
    phase intercept weapon concepts through the Defense Against Hypersonics
    Analysis of Alternatives (AoA) and Regional Glide Phase Weapon System
    development efforts. GPI is also leveraging early high fidelity
    modeling and detailed technology maturation plans for its two vendors
    to drive demonstration of technical knowledge and resolve key
    engineering uncertainties, advancing the state-of-the-art, and
    mitigating associated critical program technical risks early in the
    developmental process.
        In the current funding environment, maintaining competition for GPI
    teams would require slowing the pace of development and would delay
    flight tests and production decisions, jeopardizing our ability to meet
    Warfighter need dates. Down-selecting now allows the Department to
    focus its resources on the best single solution in the future,
    providing potential opportunities to realize cost savings while
    maintaining a schedule from only continuing one development effort on
    each program. Following down select to a single solution for both NGI
    and GPI, the Department will further control risk by continuing to
    measure progress through KPs, which continually assess technology
    maturation and critical technology element engineering. In addition for
    NGI, the Department is negotiating upfront, priced options to cover
    system integration, flight test support, manufacturing of flight test
    articles, and production of operational all-up rounds to establish a
    basis to influence contractor behavior.
        Congress and the Department have significantly changed how DoD does
    acquisition since 2016. We are now more than 5 years into using an
    adaptive acquisition framework that allows for tailored and flexible
    acquisition strategies, yet the results are mixed.
        Question. Dr. LaPlante, what have we learned over the last 5 years
    in terms of how these new processes have helped, and what still needs
    to change to get from demonstrating individual prototypes to fielding
    capabilities in relevant quantities?
        Answer. The unique Adaptive Acquisition Framework (AAF) pathways,
    their flexibility, and the ability to combine and use multiple pathways
    enables acquisition at speed and scale better than ever before. For
    example, the Middle Tier of Acquisition Pathway (MTA) and the Urgent
    Capability Pathway (UCA) facilitate delivery of critical capabilities
    to the warfighter more rapidly when mature technology exists and is
    readily available. The Software Acquisition Pathway (SWP) enables
    better planning, execution and management of software intensive efforts
    while delivering initial capability more rapidly and facilitating
    iterative capability enhancements over time. SWP procedure can also be
    applied to Major Capability Acquisition Pathway (MCA) programs to
    ensure the most modern and efficient business practice is being
    employed. The ability to use two pathways in a complementary fashion
    facilitates a more rapid response with reduced (but still effective)
    administrative oversight.
        The implementation of the AAF has also reminded us that we are only
    one of the three key systems (together with the Joint Capability
    Information and Development System (JCIDS) and the Planning,
    Programming and Budgeting and Execution (PPBE) process that guide DoD
    business operations and are often referred to as the ``three-legged
    stool.'' To put it simply, all three legs must be aligned to ensure the
    objectives of the AAF are achieved. To that end, the Deputy Secretary
    of Defense established a Competitive Advantage Pathfinder (CAPs)
    program to identify systemic barriers to capability fielding resulting
    from disconnects among the ``legs.'' As I mentioned in my testimony, we
    have conducted 6 CAPS that have identified process disconnects and
    demonstrated corresponding solutions that will help us achieve the goal
    of accelerating capability delivery and identifying scalable reforms.
    To ensure our AAF-supported investments are targeted on the right
    capabilities, we have initiated Integrated Portfolio Reviews (IAPRs) to
    identify program interdependencies and critical risks. The IAPRs bring
    together stakeholders from throughout the Department to ensure our
    acquisition investments are mission focused and, using the flexibility
    of the AAF, focused on delivering suites of capabilities that are
    collectively stronger than the sum of their parts.
        Question. The Navy's MQ-25 program is multiple years behind
    schedule, and unit costs are at least five times greater than the
    initial award. The KC-46A program has over $6 billion in overruns and a
    19-month-schedule delay past the original March 2024 fielding date.
    These are both Fixed Price Contracts, which means that the contractor
    has to pay for overruns, so you could argue that the cost overruns are
    not the Government's problem. There are also several other programs
    that fit this bill, such as the Frigate program, the B-21 Bomber, and
    others.
        My first question is whether you are concerned that these cost
    overruns will eventually be handed over to the Government and
    therefore, the taxpayer?
        Answer. The Department of Defense utilizes a variety of contracting
    mechanisms, to include fixed-price contracts, when acquiring products.
    Contracting officers consider a variety of factors when determining a
    contract type. Where appropriate, the Department of Defense can use
    fixed-price contracts to acquire major weapon systems. Fixed-price-
    incentive contracts can provide contractors with incentives to keep
    costs in check and stay on schedule. This contracting mechanism
    requires the contractor, not the Government, to pay for cost overruns
    and schedule delays.
        Question. And second, are you concerned that industry will no
    longer bid on certain types of contracts, and what does that mean for
    future competitions?
        Answer. The Department determines contract type based on
    acquisition planning and market research, along with the needs of the
    specific requirement and the risk the Department is willing to take. At
    the same time, industry must conduct their own risk analysis, including
    contract type risk, when making a bid-no bid decision.
        The Department is committed to promoting maximum practicable
    competition. To that end we seek to select, or negotiate, a contract
    type that results in reasonable risk to both the Government and the
    contractor. Additionally, in most circumstances industry has an
    opportunity to voice any contract type concerns by participating in
    industry days or providing feedback on draft solicitations.
        Question. Congress has provided substantial authorities and funding
    for multi-year procurement contracts of weapons that are critical to
    the Navy, Air Force, and Army. These contracts will to provide
    stability and funding predictability for the industrial base--even
    under the tight budget caps. We have been very clear that the Committee
    wants to see: Substantial unit cost savings; industry investing to
    expand and upgrade their facilities; and weapons being delivered on
    cost and schedule.
        Can you give us an update on where you are in awarding these
    contracts? Are they generating savings, and are we getting weapons
    faster?
        Answer. Since the inception of the MYP authorities, we have
    diligently executed approximately $801 million through five MYP
    contracts within our 155mm Artillery portfolio. This substantial
    investment, realized in August and September of 2023, has yielded an
    estimated cost savings of approximately $62 million, demonstrating the
    efficacy and fiscal prudence of this approach.
        We plan to initiate four FY 2024 MYP contracts for the PAC-3 MSE,
    Naval Strike Missile, and JASSM programs, along with a JASSM/LRASM
    Economic Order Quantity (EOQ) award. These contracts represent a total
    value of approximately $9.4 billion, with a projected cost savings of
    approximately $939 million.
        At this juncture, it is premature to conclusively determine the
    extent of the cost savings, as certain factors have influenced the
    anticipated outcomes. The late approval of the 2024 budget has had a
    significant impact on pricing, further complicating the assessment of
    cost savings. Additionally, the 2024 congressional marks have impacted
    the projection of cost savings. Given these circumstances, it is
    evident that more time and analysis are needed before a definitive
    conclusion can be reached regarding the efficacy of the MYP authorities
    in generating cost savings.
        It is important to note that production deliveries are contingent
    upon specific production lead times following contract award. In
    instances where there are shortages or constraints in the industrial
    base, it can result in delays in the delivery schedule. We are actively
    managing these factors to minimize any potential delays and ensure that
    weapon deliveries are carried out in a timely manner. Our priority
    remains meeting the needs of our armed forces while maintaining the
    highest standards of quality and reliability.
                                     ______

                 Questions Submitted by Senator Lindsey Graham
        Question. The Department of Defense has long relied on global
    management consulting firms to advice various aspects of DoD operations
    including cost analysis of the F-35 fighter jet, integration of Space
    Force, Army, Navy, and Washington Center Office. Similar to other
    Federal agencies, the Pentagon operates under contractional provisions
    under Defense Federal Acquisition Regulation Supplement (DFARS). As
    publicly reported, many of these contractual agreements require vendors
    to immediately inform the Contracting office of any organization
    conflicts of interest. Some of these global management consulting firms
    hired by DoD have done sensitive work for U.S. advisories including
    SOE's in China and Russia.
        For Department of Defense management consultant agreements, can you
    confirm all management consultant vendors have complied with conflict
    of interest disclosures?
        Answer. The Department's contracting officers analyze all planned
    acquisitions, including those with management consulting firms, to
    identify and evaluate potential organizational conflicts of interest as
    early in the acquisition process as possible. Contracting officers are
    required to avoid, neutralize, or mitigate conflicts of interest prior
    to contract award.
        The Department's contracting officers employ various methods to
    address potential conflicts, to include using tailored solicitation
    provisions and contract clauses that typically require, as a condition
    of contract award, limiting the contractor's eligibility for certain
    future prime contract or subcontract awards. In general, these
    solicitation provisions require the prospective contractor to provide
    additional information/disclosures concerning the actual or potential
    conflict. Failure to comply with such a provision or failure to adhere
    to conflict of interest disclosure requirements would make a
    prospective contractor ineligible for contract award.
        Question. What specifically has the Department of Defense done to
    prevent organizational conflict of interest specifically for those
    consulting organizations that work on naval shipyards and the F-35
    fighter jet program?
        Answer. It is DoD policy that agencies obtain advice on major
    defense acquisition programs and pre-major defense acquisition programs
    from sources that are objective and unbiased.
        The Department levies specific conflict of interest requirements on
    contracts for systems engineering and technical assistance for major
    defense acquisition programs. These requirements stem from the Weapon
    Systems Acquisition Reform Act of 2009 (Public Law 111-23) and prohibit
    the Contractor or any affiliate of the Contractor from participating as
    a prime contractor or major subcontractor in the development or
    production of a weapon system under the major defense acquisition
    program or pre-major defense acquisition program.
        Question. Are an organization's internal ``controls'' sufficient
    for Department of Defense vendors who also have clients that include
    the China Construction Bank and China Resources (Holdings) Co., Ltd?
        Answer. The current organizational conflict of interest rules do
    little to address a contractor's commercial business dealings with
    questionable foreign clients. Typically, the Government does not
    require contractors to disclose commercial business relationships, or
    if they have appropriate internal controls to mitigate any risks
    associated with questionable foreign clients.
        Some additional support tools may become available when the
    ``Preventing Organizational Conflicts of Interest in Federal
    Acquisition Act'' is fully implemented in the FAR. In the interim, the
    DoD will need to continue to evaluate each specific case based on the
    known facts.
                                     ______

                   Questions Submitted by Senator Jerry Moran
        Question. The National Defense Industrial Strategy called to
    ``embrace COTS solutions to drive positive impact on innovation, cost-
    effectiveness, and expansion of the supplier base.'' The SOCOM Armed
    Overwatch Program is a recent example of integrating COTS solutions as
    the NDIS intended.
        What other DoD programs can dual-use COTS avionics be practically
    integrated into?
        Answer. Many large, fixed-wing aircraft leverage COTS avionics such
    as cockpit displays and equipment for navigation, and operation of the
    aircraft in the national airspace.
        The DoD's Future Vertical Lift (FVL) efforts, including the Navy's
    FVL Maritime Strike and the Army's Future Long Range Assault Aircraft
    (FLRAA), were developed from inception using a Modular Open Systems
    Architecture (MOSA) approach to leverage COTS avionics. Legacy
    programs, such as the Army Black Hawk, continue to incrementally
    upgrade obsolete systems into MOSA to incorporate adaptable, affordable
    systems to address a rapidly evolving threat.
        Industry primes assess the pros and cons for systems and subsystems
    to assess whether COTS components meet the requirements of the contract
    and are sufficiently available, reliable, and secure for use on a
    military system. COTS avionics can, in some cases, have an advantage of
    lower cost and have a significant amount of performance data available,
    but may not be effective for use in all environments.
        Question. What steps has DoD changed in the acquisition process
    since the release of the NDIS to ensure COTS is being maximized across
    all of its programs?
        Answer. DoD has always encouraged the use of COTS, so no changes to
    the acquisition process have been required based on the NDIS. The
    Adaptive Acquisition Framework (AAF), and its associate acquisition
    pathways, emphasize the use of COTS where it meets the requirements of
    the Department. However, the use of COTS must always be examined for
    appropriateness, sufficiency, security, and sustainability. Such
    considerations must be evaluated to determine the ``best value'' system
    design and procurement.
        Question. What risk is the Department taking by accepting COTS
    solutions specific to avionics?
        Answer. Potential risks from COTS solutions could arise from
    adversary manipulation of data, functions, and integrity of the
    products or services. Since DoD does not have visibility into the COTS
    solution providers' supply chain, it is challenging to ascertain
    foreign ownership, control, or influence of companies that make up the
    entirety of that supply chain. It is also challenging for DoD to
    determine if a product or service has been compromised, especially down
    to the hardware/software component and sub-component levels, without
    rigorous testing, which can negatively impact cost and schedule. There
    are several ongoing efforts within DoD that aim to address the risk,
    such as the new efforts for Supply Chain Illuminations and extensible
    Bill of Materials, and the enduring efforts of the Federal Acquisition
    Security Council, the Section 3252 Exclusion Order Scoping and
    Mitigation effort, the Committee on Foreign Investments in the United
    States (CFIUS), and various hardware and software assurance effort
    across the Department.
        In addition, COTS vendors generally provide the Government with
    limited technical data and computer software deliverables and
    associated license rights, which can lead to challenges. Such
    challenges include an inability to (1) perform organic supply support,
    maintenance, and sustainment internal to DoD or by DoD allies or
    partners; and/or (2) competitively procure spares, repair parts, and
    services. This may also result in a lack of control over changes to
    interfaces and form, fit, and function of follow-on versions of the
    COTS component, and could result in the retrofit of replacement
    components being costly and complex.
        Question. What other major DoD programs of record have encouraged
    the use of COTS products and seen increased participation from new
    suppliers?
        Answer. The Department encourages the use of COTS in acquisition.
    For example, DoD's Future Vertical Lift (FVL) efforts are structured to
    leverage COTS as much as feasible. Additionally, the DoD's FVL efforts
    were developed using a Modular Open Systems Architecture (MOSA)
    approach to encourage the use of COTS software and hardware. Some
    legacy programs, such as the Army Black Hawk, continue to incrementally
    upgrade obsolete systems into MOSA to incorporate adaptable, affordable
    systems to address a rapidly evolving threat.
                                     ______

                     Questions Submitted to Douglas R. Bush
                   Questions Submitted by Senator Jon Tester
        Question. Congress and the Department have significantly changed
    how DoD does acquisition since 2016. We are now more than 5 years into
    using an adaptive acquisition framework that allows for tailored and
    flexible acquisition strategies, yet the results are mixed.
        To Secretaries Bush, Hunter and Guertin, you all have examples of
    successful rapid acquisition programs, but also programs that have not
    delivered as promised. For instance, the Navy's Extra Large Unmanned
    Undersea Vehicle, the Army's Extended Range Cannon, and the Air Force's
    F-22 Sensor Enhancement Program all come to mind as rapid acquisition
    programs that have failed to deliver. Could you each please highlight
    your lessons learned for future approaches?
        Answer. The use of rapid acquisition authorities such as the Middle
    Tier of Acquisition allows the Army to engage with industry more
    quickly to test novel approaches to address capability requirements.
    This earlier experimentation and testing often results in identifying
    both promising innovations and technical challenges earlier in the
    acquisition cycle. The Army learns from these efforts by incorporating
    successful elements while off-ramping elements lacking technical
    maturity without acquiring significant quantities of a particular
    system. This allows the Army to better evaluate and learn from various
    potential solutions from industry without the financial burden that
    would be required under the traditional acquisition system.
        In the case of the Extended Range Cannon Artillery (ERCA) program,
    the Army made significant progress in increasing the range of tactical
    fires. While the effort ran into engineering challenges, the Army was
    able to identify the problem early on during prototyping, before
    committing resources to production. The knowledge gained from the ERCA
    effort allows us to quickly re-engage with industry and pivot to other
    potential technical solutions that may already exist.
        Question. Congress has provided substantial authorities and funding
    for multi-year procurement contracts of weapons that are critical to
    the Navy, Air Force, and Army. These contracts will to provide
    stability and funding predictability for the industrial base--even
    under the tight budget caps. We have been very clear that the Committee
    wants to see: Substantial unit cost savings; industry investing to
    expand and upgrade their facilities; and weapons being delivered on
    cost and schedule.
        Can you give us an update on where you are in awarding these
    contracts? Are they generating savings, and are we getting weapons
    faster?
        Answer. Congress has been instrumental in providing the Army with
    the authority to enter into new multiyear contracts for Patriot
    Advanced Capability 3 (PAC-3), Guided Multiple Launch System (GMLRS)
    and 155mm artillery rounds, which will provide us stability and
    predictability of the supply chain and demand for those munitions.
        The current target for award of the PAC-3 multi-year procurement
    (MYP) is by the end of June 2024. The Army anticipates savings of up to
    3 percent and improved stability in the PAC-3 supply chain resulting
    from the MYP approach.
        The GMLRS MYP contract will be for fiscal year 2024 (FY24)-FY27,
    with an already awarded FY24 delivery order being modified to become
    the base for the multi-year contract. Proposals are still outstanding
    and the Army is anticipates saving of 2.5%. MYP does not shorten the
    production timeline, however, GMLRS has Advanced Procurement funding,
    which will reduce production lead time from 34 months to 22 months.
        With respect to 155mm artillery ammunition, the Army is executing
    several MYP contracts. Initial MYP contracts for Artillery Munitions
    and components were awarded in FY23. Additionally, delivery orders were
    awarded off the MYPs in FY24 for the Modular Artillery Charge System
    (MACS) containers, MCAS Load Assemble Pack (LAP), and M1128 Metal
    Parts. Delivery orders for the MYP for M1128 LAP are estimated to be
    awarded in 4QFY24 and deliveries are anticipated to begin in March
    2025. The Army estimates savings ranging from 3% to 11% per awarded
    contract.
        Question. The Navy's MQ-25 program is multiple years behind
    schedule, and unit costs are at least five times greater than the
    initial award. The KC-46A program has over $6 billion in overruns and a
    19-month-schedule delay past the original March 2024 fielding date.
    These are both Fixed Price Contracts, which means that the contractor
    has to pay for overruns, so you could argue that the cost overruns are
    not the Government's problem. There are also several other programs
    that fit this bill, such as the Frigate program, the B-21 Bomber, and
    others.
        My first question is whether you are concerned that these cost
    overruns will eventually be handed over to the Government and
    therefore, the taxpayer? And second, are you concerned that industry
    will no longer bid on certain types of contracts, and what does that
    mean for future competitions?
        Answer. The Army respectfully defers to the Navy and Air Force on
    the execution of the programs listed.
                                     ______

                 Questions Submitted by Senator Lindsey Graham
        Question. For several fiscal years, Congress has increased funding
    for the M240 Medium Machine Gun (7.62mm) in its annual appropriations
    bills. However, while Congress increases funding for the M240, the Army
    continues to request fewer and fewer resources for the program, to
    include just $3,000 in the FY25 request.
        What is the Army's strategy for the M240 line and does the Army
    have an account of how many guns are in the inventory to include a
    breakdown by model?
        Answer. The Army's strategy for the M240 family of machine guns is
    to continue investigating and implementing various product improvements
    to increase reliability, extend service life, and reduce weight for
    enhanced mobility while the Army determines the path forward for a
    Future Medium Machine Gun. The Army has achieved the Army Acquisition
    Objective (AAO) for all M240 variants. Production is expected to
    continue to support Foreign Military Sales (FMS), replacements for
    Presidential Drawdowns, and other Service requirements. The Army will
    continue to replace weapons that reach the end of their service life
    with inventory stored at Anniston Army Depot (ANAD). The current
    inventory, broken out by model, is listed in the table below:
        The Army will be happy to provide the requested inventory data to
    Senator Graham's office directly.
        Question. How much, if any, of the 2024 National Security
    Supplemental funding has gone to sustaining the M240 line for use by
    the Army?
        Answer. To date, the Army has received $7 million in supplemental
    funding to replace M240s sent overseas as part of Presidential
    Drawdowns.
                                     ______

                  Questions Submitted by Senator John Boozman
        Question. Regarding the $700 million investment at Radford Army
    Ammunition Plant, when will we see that reflected in production levels?
        Answer. The $700M investment at Radford Army Ammunition Plant
    includes the design and construction of the new Nitrocellulose facility
    and critical facilities that support the facility, such as the new
    Nitric Acid Concentrator/Sulfuric Acid Concentrator Process, acid tank
    farm, and ancillary improvements to acid area infrastructure. The
    project is scheduled to be completed by 1QFY25 and will support the
    production of 20M--28M pounds of Nitrocellulose per year.
        Question. Is the plant already operating at full capacity or is it
    still being modernized?
        Answer. The new Nitrocellulose facility is currently in
    commissioning and the plan is to complete commissioning and transition
    to support production in 1QFY25.
        Question. Are there any obstacles in the way that Congress can help
    address if the Army is still working toward full capacity levels?
        Answer. The government owned, contractor operated Army Ammunition
    Plants serve a vital role in protecting the nation's security. The Army
    is appreciative of Congress' support to its Ukraine Supplemental
    requests, and, specifically, efforts to accelerate the Army's Army
    Ammunition Plant Modernization program, which supports both the high
    demand of 155mm munitions and acquires state-of-art manufacturing
    equipment/technologies.
        Question. Regarding other investments, what is the price tag to
    stand up additional facilities to manufacture nitrocellulose to avoid
    reliance on other countries? Is this already being considered, and if
    so, have other potential locations already been identified?
        Answer. The Army does not have plans to invest or construct
    additional Nitrocellulose facilities. A second source for
    Nitrocellulose is being constructed within the National Technology and
    Industrial Base (NTIB), in Canada, to reduce risks of a single point of
    failure. The costs to build an additional facility would depend on the
    current infrastructure and supporting facilities at the selected site.
                                     ______

                   Questions Submitted to Nickolas H. Guertin
                   Questions Submitted by Senator Jon Tester
        Question. Congress and the Department have significantly changed
    how DoD does acquisition since 2016. We are now more than 5 years into
    using an adaptive acquisition framework that allows for tailored and
    flexible acquisition strategies, yet the results are mixed.
        To Secretaries Bush, Hunter and Guertin, you all have examples of
    successful rapid acquisition programs, but also programs that have not
    delivered as promised. For instance, the Navy's Extra Large Unmanned
    Undersea Vehicle, the Army's Extended Range Cannon, and the Air Force's
    F-22 Sensor Enhancement Program all come to mind as rapid acquisition
    programs that have failed to deliver. Could you each please highlight
    your lessons learned for future approaches?
        Answer. The Department of the Navy (DON) appreciates the changes
    made to acquisition policy, which resulted in the Adaptive Acquisition
    Framework (AAF). I am confident that, through the AAF, we have been
    provided the needed policy tools to respond to requirements. However,
    from a cultural standpoint, we have work to do to show our Program
    Managers and program offices that we support them, encourage them to
    utilize the most appropriate acquisition pathways for their programs,
    and in fact expect them to tailor their acquisition approaches. We are
    also adjusting our thinking, encouraging programs to embrace the
    flexibility of the adaptive acquisition framework through the use of
    multiple pathways to deliver capability.
        In terms of lessons learned for rapid acquisition, we have found
    that successful programs have:
      --Ensured that funding and contracting vehicles were fully ready
            prior to formally starting the program.
      --Obtained support from the resources & requirements communities.
      --Used iterative design approaches.
      --Prioritized schedule by off-ramping capabilities when necessary.
        In our Middle Tier of Acquisition (MTA) portfolio, we have had 10
    programs exit the pathway: 50% completed successfully, 30% transitioned
    to another pathway (which is often pre-planned), while 20% were
    terminated as a result of changing needs. Through the use of MTA,
    programs have been able to get started faster and in some cases fail
    faster, allowing us to quickly adjust resources to more promising
    outcomes.
        While I concur that results have been mixed, for the reasons stated
    above I believe they are broadly positive. The AAF's pathways are still
    in their early stages, and I respectfully request your support and the
    support of this committee in maintaining the flexibility afforded by
    the AAF.
        Question. Congress has provided substantial authorities and funding
    for multi-year procurement contracts of weapons that are critical to
    the Navy, Air Force, and Army. These contracts will to provide
    stability and funding predictability for the industrial base--even
    under the tight budget caps. We have been very clear that the Committee
    wants to see: Substantial unit cost savings; industry investing to
    expand and upgrade their facilities; and weapons being delivered on
    cost and schedule.
        Can you give us an update on where you are in awarding these
    contracts? Are they generating savings, and are we getting weapons
    faster?
        Answer. The use of smart acquisition strategies like Multi-Year
    Procurements (MYP) provide stability to the defense industrial base and
    save the department billions of dollars when compared to buying on an
    annual basis. Savings are achieved through efficient material
    purchasing, optimal production planning, and overhead rate efficiencies
    associated with stable, firm workload. Additionally, multi-year and
    block buy procurement authorities support faster fielding of systems
    through optimal build sequencing, continuous production lines, and
    predictability for the broader supply base.
        Naval Strike Missile (NSM): The NDAA for FY23 authorized the Navy
    to enter into a MYP contract for up to 1250 NSM All Up Rounds (AURs).
    The Navy is on schedule to award the NSM MYP, which will address FY24-
    FY28 requirements, to Kongsberg Defense and Aerospace (KDA) by August
    2024. The Navy estimates savings attributable to this MYP strategy at
    $153.6M or 13.6% cost savings through the FYDP. KDA invested company
    funds to increase production capacity to 450 AURs per year to meet
    worldwide demand and expedite deliveries throughout the FY2024-FY2028
    MYP.
        Standard Missile (SM): The FY23 and FY24 NDAAs authorized a MYP
    contract for SM-6 Block IA/IAU (up to 1500 rounds). This authority and
    the provisions of annual appropriations acts, however, further require
    specific authority for this MYP contract to be provided in the
    appropriations act. The FY24 Consolidated Appropriations Act did not
    authorize a MYP contract for SM-6. The Navy received $117M in Advance
    Procurement funding to procure long lead material for a quantity of 222
    All Up Rounds (AURs) and is pursuing a single year procurement in FY24
    (quantity 97) with an FY25 option (quantity 125). Estimated contract
    award is Q4FY24. The Navy is currently evaluating opportunities for a
    MYP for SM-6 in FY26.
        JASSM/LRASM: The Navy and Air Force are nearing the end of the fact
    finding/technical evaluation phase. We have been supporting supplier
    negotiations and plan to enter into contract negotiations in June 2024,
    with contract award of JASSM/LRASM Multi-Year Procurement to include
    Economic Order Quantity (EOQ) funding tracking to Aug 2024.
        A unit price has not yet been negotiated, but CAPE is estimating a
    10% cost savings and facilitization funding is expected to increase
    production capacity to 240 missiles per year. EOQ funding would yield
    an additional 83 missiles under MYP, assuming a typical ``buy to
    budget'' purchasing approach, with 160 missiles delivering 4 months
    earlier than with a single year procurement.
        Question. The Navy's MQ-25 program is multiple years behind
    schedule, and unit costs are at least five times greater than the
    initial award. The KC-46A program has over $6 billion in overruns and a
    19-month- schedule delay past the original March 2024 fielding date.
    These are both Fixed Price Contracts, which means that the contractor
    has to pay for overruns, so you could argue that the cost overruns are
    not the Government's problem. There are also several other programs
    that fit this bill, such as the Frigate program, the B-21 Bomber, and
    others.
        My first question is whether you are concerned that these cost
    overruns will eventually be handed over to the Government and
    therefore, the taxpayer? And second, are you concerned that industry
    will no longer bid on certain types of contracts, and what does that
    mean for future competitions?
        Answer. The treatment of cost overruns and any associated
    Government share depends on the type of fixed price contract utilized.
    For awareness, the Frigate program utilizes a fixed-price incentive
    (firm target) (FPIF) contract type and contains an Economic Price
    Adjustment (EPA) clause and the MQ-25 development effort utilizes a
    FPIF contract type. Under FPIF contracts, the contractor's actual
    (allowable and allocable) costs are recognized up to the contract
    ceiling. To the extent the actual cost differs from the anticipated
    cost to perform the effort (Target cost), the target profit will be
    adjusted by the application of a share ratio to the costs which are
    over or under the target cost. Under fixed-price contracts with EPA,
    the EPA clause establishes a mechanism to mitigate specifically covered
    cost risks to both parties as a result of industry-wide contingencies
    beyond any individual contractor's control. In these instances, the
    Government will bear the cost risk up to the limit specified in the
    clause (if any). Based on the programs in question and the specific
    associated contract types, the DON is not concerned that the cost
    overruns experienced on these existing contracts will be handed over to
    the Government beyond the ceiling prices identified in each contract
    and any costs covered by an EPA clause. However, there is a reason for
    concern on future contracts due to increased actual costs, impacts to
    indirect rates, and other financial considerations made by the
    contractor in follow-on proposals.
        In order to mitigate industry's future willingness to bid on
    certain types of contracts based on their risk tolerance, the
    Department will perform greater pre-solicitation engineering and risk
    reduction activities as well as work with our industry partners to
    address these concerns to balance risk and promote a healthy industrial
    base. Recently, the CEO of a major defense contractor announced in a
    shareholder meeting that they will no longer accept what they deem as
    ``unacceptable risk'' in certain programs with the DoD. If this
    position holds and is shared by other industry partners, it is possible
    industry will not bid on certain acquisition arrangements. For future
    procurements, it will be increasingly important for the Department to
    solicit industry's risk concerns and develop strategies that mitigate
    reasonable claims of risk. In addition, the Department will continue
    judicious use of contract type selection in accordance with FAR 16.103
    and 16.104 to achieve the objective of negotiating contract types and
    prices (or estimated cost and fee) that will result in reasonable
    contractor risk and provide the contractor with the greatest incentive
    for efficient and economical performance. Many factors are considered
    in contract type selection such as price competition, price analysis,
    cost analysis, and the type and complexity of the requirement.
                                     ______

                  Questions Submitted by Senator John Boozman
        Question. Next generation naval capabilities will be an important
    part of our defense strategy in the coming decades as the U.S. and its
    allies combat emerging naval threats from China and other adversaries.
    The Navy's Hybrid Energy Drive program, also known as the DDG(X)
    program, has been working towards modernizing our capabilities,
    including through the next generation of DDG 51 Class Guided Missile
    Destroyers, which will improve tactical capabilities and reduce
    operating costs. What is DoD doing to accelerate the development of
    this modern class of destroyers?
        Answer. The Navy built the acquisition strategy for DDG(X), the
    Navy's next enduring large surface combatant, based on the Integrated
    Product and Process Design strategy successfully used by the COLUMBIA
    program through early collaboration with Industry partners,
    incorporating lessons learned from previous shipbuilding programs,
    utilizing a common design tool, de-risking critical systems, and
    ensuring a smooth transition of the industrial base from DDG-51 Class
    production to DDG(X) production.
        The Navy has awarded three contracts: one for each of the Destroyer
    shipbuilders, Huntington Ingalls Industries (HII) and Bath Iron Works
    (BIW); and one to Gibbs and Cox, for design and engineering services.
    These contracts are in place to leverage early industry collaboration
    and utilize their expertise of large surface combatant designs. This
    early collaboration with industry in the Navy-led Team will promote a
    higher level of producibility and affordability in the design prior to
    the detailed design and construction phase of the program.
        The Navy is coordinating a single Computer Aided Design Product
    Lifecycle Management Tool (CAD PLM) to be used by both shipyards and
    the Navy design team to facilitate cross organizational technical
    exchange throughout the design process. In addition to concept design,
    the Navy is focusing on early de-risking of DDG(X) through the Land
    Based Test and Engineering Site at Naval Surface Warfare Center (NSWC)
    Philadelphia. The plan is to de- risk the power and propulsion system
    and provide a final form, fit, function to further reduce design risk
    and optimize integration prior to ship activation.
        The Navy Acquisition Strategy, across the large surface combatant
    portfolio, is focused on a smooth transition for the shipbuilder's
    design and production workforce. The Navy will be deliberate in the
    workload transition from DDG 51 Flight III Class of ships to DDG(X)
    across the industrial base.
                                     ______

                    Questions Submitted to Andrew P. Hunter
                   Questions Submitted by Senator Jon Tester
        Question. Congress and the Department have significantly changed
    how DoD does acquisition since 2016. We are now more than 5 years into
    using an adaptive acquisition framework that allows for tailored and
    flexible acquisition strategies, yet the results are mixed. To
    Secretaries Bush, Hunter and Guertin, you all have examples of
    successful rapid acquisition programs, but also programs that have not
    delivered as promised. For instance, the Navy's Extra Large Unmanned
    Undersea Vehicle, the Army's Extended Range Cannon, and the Air Force's
    F-22 Sensor Enhancement Program all come to mind as rapid acquisition
    programs that have failed to deliver. Could you each please highlight
    your lessons learned for future approaches?
        Answer. Middle Tier of Acquisitions (MTAs) provide a critical tool
    to leverage prototyping and rapid fielding of mature capability when
    used properly to identify and scope technology and producibility risk
    and adapt mature technology to Air Force requirements. When used in
    conjunction with well-developed transitions from prototyping to
    production under programs of record, MTAs facilitate delivering
    meaningful operational capability to the warfighter in a relevant
    timeframe. The Air Force has been leveraging lessons learned from past
    and current programs to apply to future approaches. These lessons
    learned include:
      --Five years is too short a timeline for highly complex systems such
            as aircraft.
      --Clarify and address key technical and producibility risks as early
            in prototyping as possible and build-in technology off ramps
            wherever possible.
      --Incorporate transition planning as early as possible.
      --Make clear the criteria for success of both the MTA and subsequent
            production.
        Question. Congress has provided substantial authorities and funding
    for multi-year procurement contracts of weapons that are critical to
    the Navy, Air Force, and Army. These contracts will to provide
    stability and funding predictability for the industrial base--even
    under the tight budget caps. We have been very clear that the Committee
    wants to see: Substantial unit cost savings; industry investing to
    expand and upgrade their facilities; and weapons being delivered on
    cost and schedule. Can you give us an update on where you are in
    awarding these contracts? Are they generating savings, and are we
    getting weapons faster?
        Answer. The Air Force plans to award the JASSM/LRASM Multi-Year
    Procurement (MYP) contract in 4QFY24 to Lockheed Martin. Lockheed
    Martin projects a cost savings of 3.5% versus a single-year procurement
    contracting approach based on economic order quantity discounts and
    anticipates expedited delivery schedules of 4-8 months over the course
    the MYP effort.
        Question. The Navy's MQ-25 program is multiple years behind
    schedule, and unit costs are at least five times greater than the
    initial award. The KC-46A program has over $6 billion in overruns and a
    19-month-schedule delay past the original March 2024 fielding date.
    These are both Fixed Price Contracts, which means that the contractor
    has to pay for overruns, so you could argue that the cost overruns are
    not the Government's problem.
        There are also several other programs that fit this bill, such as
    the Frigate program, the B-21 Bomber, and others. My first question is
    whether you are concerned that these cost overruns will eventually be
    handed over to the Government and therefore, the taxpayer? And second,
    are you concerned that industry will no longer bid on certain types of
    contracts, and what does that mean for future competitions?
        Answer. Under a Firm Fixed Price contract the contractor is
    responsible for all costs above the contract value in completion of
    delivery and performance agreed to in the contract. In terms of
    concerns with cost overruns eventually being handed over to the
    Government, requirements are supported by an Independent Government
    Cost Estimate. Where competition is not the basis used to determine a
    fair and reasonable cost/price, analysis is conducted on the cost/price
    proposal. Contracting officers will secure the necessary data (i.e.,
    certified or other than cost and pricing data) and request an audit
    from Defense Contract Audit Agency (DCAA), where required, to determine
    a fair and reasonable cost/price.
        The Air Force is aware of industry's concerns regarding fixed price
    contracts but recognizes that a healthy industrial base is paramount
    for successful delivery of capabilities at speed and scale to the
    warfighter.
        Every acquisition is unique and situationally dependent on many
    factors that must be considered to determine the best contract type to
    use for that specific requirement. This includes: market conditions;
    availability of resources; competition; commerciality; technology
    maturation; complexity and phase of the program that drive cost,
    schedule, and performance risk to both parties. All data, coupled with
    industry engagement and feedback, informs the contract type decision.
        In this process, the Air Force considers the full range of contract
    types available to structure business arrangements that achieve a
    reasonable balance of risk between the Government and the contractor,
    while providing the contractor with the greatest incentive for
    efficient and economical performance. The Air Force will continue to
    use Fixed Price contracts when it makes sense to do so, but also
    continues to strive for crosstalk and engagement with industry to
    ensure concerns are heard and addressed when possible.
                                     ______

                Questions Submitted by Senator Richard J. Durbin
        Question. The FY24 Defense Appropriations explanatory statement
    included report language that seeks to address efforts by OEMs to
    discourage fair and open competition between themselves and independent
    providers for bearing repair and refurbishment in fixed wing and
    rotorcraft aircraft. Similar language had been included in the FY23
    National Defense Authorization Act directing the Department to report
    on the matter. Congress supports fair and open competition between OEMs
    and independent bearing repair service providers. This is necessary for
    the development of a robust domestic industrial base that avoids
    increased costs and delay for military weapon systems.
        What actions are being taken by the Air Force to conduct
    solicitations in a manner which encourages the submission of bids by
    independent bearing service providers?
        Answer. The Air Force uses several avenues to encourage bids
    through open competition to the maximum extent practicable and to
    ensure industry awareness of upcoming requirements. These include
    hosting Industry Days, using Federal Acquisition Regulation (FAR) Part
    16 type contracts to award multi-vendor contracts like Indefinite
    Delivery/Indefinite Quantity contract vehicles; posting both Requests
    for Information and Draft Requirements Documents that include
    appropriate/salient clauses (e.g., 252.225-7016, Restriction on
    Acquisition of Ball and Roller Bearings) to SAM.gov, which is the
    official entry point for Federal acquisitions; and encouraging Defense
    Industrial Base (DIB) participation to maximize competition.
        Question. What incentives are being, or could be, provided to fixed
    wing/rotorcraft aircraft Engine OEMs, and Bearing OEMs, that could
    support approval of these independent domestic bearing service
    suppliers?
        Answer. The Air Force has incorporated award fees and incentive fee
    contract structures to incentivize contractor performance in numerous
    environments for engine prototyping and production. Furthermore, the
    Air Force Propulsion Directorate has partnered with the Defense
    Logistics Agency (DLA) in ``Captain of Industry'' contracts that
    provide more stable demand for bearings. Additionally, small business
    participation goals are included in the Air Force Propulsion
    Directorate contracts and assessments that require Subcontracting Plans
    to ensure that Prime Contractors provide and allow for small business
    opportunities.
        Question. What reforms are being developed that will safeguard the
    general solicitation process to preclude independent vendors from being
    allowed to submit a bid for consideration.
        Answer. The inclusion of Defense Federal Acquisition Regulation
    Supplement (DFARS) clauses (e.g., 252.225-7016, Restriction on
    Acquisition of Ball and Roller Bearings) and the conduct of a
    compliance assessment when posting Draft Solicitations and Requests for
    Information to SAM.gov are some of the methods used to safeguard the
    process. Additionally, any Source Approved-Vendor may bid on bearing
    contracts. Independent vendors also have the option of gaining approval
    through submission of Source Approval Requirement (SAR) Packages. SARs
    require the vendor to submit company quality plans, access to required
    drawings, and manufacturing capability. Following an approved SAR, if
    the interested vendor is then awarded a contract, a First Article Test
    is subsequently required. If the independent vendor is not licensed to
    use the OEM drawings, then they must reverse engineer and substantiate
    the design. This substantiation would include an operational test run
    funded by the vendor, but the SAR package provides an entry for new
    suppliers.
        Question. s the Air Force incentivizing Engine OEMs to work with
    independent bearing vendors, to qualify them as approved sources, for
    future solicitations?
        Answer. The Air Force is supporting maximum competition and
    incentivizing Engine OEMs to maintain and increase the DIB.
        Question. Would the Secretary consider using an expedited process
    to approve these sources if the Engine OEM refuses to support a process
    under which independent suppliers can be qualified?
        Answer. The Air Force is not opposed to expediting approval of
    sources should the need arise. Furthermore, the Air Force Propulsion
    Directorate's current SAR Package submittal process is effective and
    timely when companies choose the SAR Package option. The substantiation
    of the design and operational test run funded by the vendor are still
    requirements.
        Question. Multiple USTRANSCOM Commanders have testified over the
    last few decades to Congress that aerial refueling is ``it's most
    stressed capability,'' with one commander (responding to congress),
    ``If I had a thousand more tankers it might be enough.'' In 2020, the
    Air Force made congress aware that 30 thousand hours of aerial
    refueling missions were not being supported annually.
        Does the Air Force (AFWERX) have a Commercial Air Refueling
    Augmentation (COMAUG-AR) Small Business Innovation Research (SBIR)
    effort underway?
        Answer. Air Refueling Tanker Transport (ART2) LLC completed a Phase
    I SBIR contract on April 19, 2024 (FA8649-24-P-0223). The contract was
    for delivery of a study of a COMAUG-AR framework required for a U.S.
    owned and operated civil air refueling air carrier to operate DoD and
    Air Force air refueling requirements via a requirements matrix. ART2
    proposed a solution that yields a Civil Reserve Air Fleet aerial
    refueling partner technically capable of delivering COMAUG-AR during
    defense mobilizations, national emergencies, or wartime surges. The
    company is eligible to submit a proposal for a follow-on Phase 2 SBIR
    contract for development of a prototype system.
        Question. In addition to the continued fielding and enhancement of
    the KC-46A and existing KC-135 fleet to meet current and future air
    refueling requirements, to what extent has the Air Force assessed
    leveraging commercial air refueling capabilities?
        Answer. Currently, the USAF fleet of 466 tanker aircraft is sized
    to meet the fully mobilized wartime tanker requirement. The DAF has
    assessed commercial air refueling solutions and has found that while
    commercial air refueling will increase capacity, it may come at the
    expense of USAF tanker crew training and readiness requirements. In
    other words, one-time divestment cost for KC-135s and KC-10s will
    likely increase commercial costs to the USAF, which may exceed savings.
        Question. To what extent is the Air Force considering National
    Defense Authorization Act provisions suggesting KC-10s be transferred
    to the OEM as Excess Defense Articles (EDA) for the purpose of
    establishing COMAUG-AR?
        Answer. There is no current plan to transfer KC-10s at this time.
    Existing laws and regulations require the Original Equipment
    Manufacturer (OEM) to agree to allow KC-10 AR Boom system's engineering
    and technical orders to be shared with a commercial company prior to
    selling or loaning the equipment as Government Furnished Equipment
    (GFE). At this time, the Air Force has not received any formal
    demilitarization waiver requests. The Air Force will examine the
    possibility and details of transferring aircraft as GFE if a
    demilitarization waiver were to be approved by OSD.
        Question. What is the total KC-10A divestment program cost, to
    include storage of support equipment, engines, flight simulators and
    training material? Relatedly, what potential cost saving or cost
    avoidance is associated with transferring such KC-10s to the OEM as EDA
    instead?
        Answer. In FY24, there was a total of $30M programmed in KC-10 PEs
    (active duty and reserve) and $0 in FY25-beyond. This funding includes
    one-time induction costs for the remaining fleet into Type storage
    (2000--$147k; 4000--$125k) but does not include recurring costs at the
    Aerospace Maintenance and Regeneration Group (AMARG). All aircrew and
    maintenance personnel costs have been transferred to KC-46 operations
    therefore there are no specific cost savings or cost avoidance.

                              SUBCOMMITTEE RECESS

        Senator Tester. We stand in recess.
        [Whereupon, at 11:21 a.m., Wednesday, May 15, the
    subcommittee was recessed, to reconvene at 10 a.m., Tuesday,
    May 21.]

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2025

                                  ----------

                             TUESDAY, MAY 21, 2024

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10:01 a.m., in room SD-192, Dirksen
    Senate Office Building, Hon. Brian Schatz presiding.
        Present: Senators Murray, Schatz, Baldwin, Murphy, Coons,
    Collins, Murkowski, Moran, Hoeven, Boozman, and Capito.

                             DEPARTMENT OF DEFENSE

                             Department of the Army

                            Office of the Secretary

    STATEMENT OF HON. CHRISTINE WORMUTH, SECRETARY

                   OPENING STATEMENT OF SENATOR BRIAN SCHATZ

        Senator Schatz. Good morning. The committee will come to
    order.
        Welcome back, Secretary Wormuth. We appreciate your
    leadership of our Nation's Army and we look forward to
    discussing with you the Army's budget priorities for fiscal
    year 2025.
        And welcome, General George, to your first hearing before
    this subcommittee. I am interested to hear your perspectives,
    and we look forward to hearing from you.
        The fiscal year 2025 budget request for the Department of
    the Army is $180.3 billion, excluding funds for MILCON
    (Military Construction), which is the same level as the enacted
    number for fiscal year 2024. Fiscal 2024, once again, and
    unfortunately unsurprisingly, began under a continuing
    resolution, which ended up lasting for a full 6 months. Our
    entire military is affected by CRs (Continuing Resolutions),
    but coupled with months'-long delay in enacting the National
    Security Supplemental the Army was doubly affected, because you
    were unable to replace weapons systems you donated to Ukraine
    with modern capabilities.
        I am glad that Congress finally got its act together and
    passed the National Security Supplemental, but just like the
    regular appropriations bill, it was needlessly delayed by many
    months.
        Worldwide challenges and threats are constantly evolving,
    and as we discussed last year, the Army's response to the
    increasingly complex battlefield of the future is to transform
    into the Army of 2030. This transformation includes investments
    in people, the reorganization of forces, the development of new
    equipment, and the adoption of new concepts to defeat
    adversaries.
        We can best help the Army on its path to modernization
    through the timely enactment of a Defense Appropriations bill
    for fiscal year 2025, one-time appropriations provide the
    resource predictability--on time--excuse me, on-time
    appropriations provide the resource predictability that enable
    the Army to execute training and operational plans effectively
    for the entire fiscal year.
        I look forward to working with Senators Murray and Collins
    and, of course, the real Chairman, Senator Tester, to position
    us for success to getting a budget passed on time.
        Once again, I want to thank each of you for your service to
    our country.
        Before you make your opening statements, I will turn it
    over to the Vice Chair, Senator Collins, for her remarks.

                     STATEMENT OF SENATOR SUSAN M. COLLINS

        Senator Collins. Thank you very much, Chairman Schatz, and
    welcome to your new role on this subcommittee.
        Secretary Wormuth, it is great to see you again. General
    George, as this is your first time testifying before our
    subcommittee, I want to welcome you. Thank you both for your
    service and your leadership.
        One of my chief concerns for the Army this year remains the
    same as it was last year, and that is recruiting. Madam
    Secretary, I commend you and the Chief for your steadfast
    refusal to compromise on recruiting standards, and I understand
    from your written testimony that the results of the Future
    Soldier Prep Course continue to be promising. Nevertheless, the
    Army either missed its recruiting objectives or lowered them in
    3 of the last 5 years.
        The proposed active duty end strength represents the
    smallest Active Duty Army since the start of the Volunteer
    Force in 1973. It is substantially less than the Army's goal of
    470,000 soldiers by the year 2029. I look forward to hearing
    how the Army is updating its recruiting approach and what
    resources are included in your budget requests to recruit
    enough qualified men and women.
        While the National Security Strategy's primary focus is
    competition with China, Army soldiers, along with our sailors
    and marines, are in harm's way today in the Middle East. It is
    also the Army, more than any other Service that is providing
    the lion's share of equipment and training to help Ukraine's
    own army defeat and defend against Russia's brutal invasion.
        I would ask our witnesses to clearly articulate how the
    Army's proposed modernization efforts and Force structure
    changes will improve the Army's posture to address these
    growing threats.
        In particular, I am interested in hearing more about how
    you plan to integrate robotic and unmanned systems into your
    future formations, using platforms like the Robotic Combat
    Vehicle. A very innovative company in Maine, I am pleased to
    say, Howe & Howe how is contributing to this critical
    technology.
        General George, counter-drone technology is also at the top
    of your unfunded priorities list. I hope you will share with us
    in greater detail your prioritization of those capabilities
    since I share your view on their importance.
        The recently passed supplemental bill included more than
    $380 million for Army counter-drone systems, none of which, I
    would note, was included in the original supplemental requests.
    So I am glad that, working with Chairman Murray and Chairman
    Tester, that we have been able to address that critical need.
    It is important as we deal with the attacks against Israel and
    against our forces that are in harm's way, from the threats
    posed by Iran and its proxies.
        Let me give you one illustration of why these investments
    are so important. The son of one of the most experienced
    workers at an armament plant in Saco, Maine, was deployed with
    the Army in the Middle East after October 7. His Army unit was
    protected from these inbound drones by the very weapon systems
    built in Saco.
        So we must never forget that there are real lives at stake,
    and that is why it is so critical that we continue to modernize
    and invest in the Defense Industrial Base, since we have seen
    firsthand that warfare has changed dramatically.
        Finally, I would ask both of our witnesses to provide an
    update on how this budget request builds upon the progress from
    the fiscal year 2024 Supplemental to expand munition production
    and strengthen our industrial base. We have made a lot of good
    progress, but there is still much work to be done.
        I look forward to hearing your testimony. Thank you for
    being here.
        Senator Schatz. Thank you, Vice Chair Collins.
        Secretary Wormuth, please proceed with your testimony.

                  SUMMARY STATEMENT OF HON. CHRISTINE WORMUTH

        Secretary Wormuth. Good morning, Senator Schatz, Vice Chair
    Collins, distinguished members of the committee, thank you for
    your continued support of our soldiers, Army civilians, and
    their families.
        General George and I appear before you today at a moment of
    profound transformation for the United States Army. We are
    transforming our capabilities, our Force structure, and our
    recruiting enterprise to ensure the Army is ready and able to
    defeat evolving threats, keep pace with technology, and attract
    the very best talent.
        As we pursue this transformation, we are also taking care
    of our people, ensuring that our soldiers and families have the
    quality of life that they deserve to sustain our readiness now
    and in the future.
        This is my fourth year in front of this committee, and like
    last year, the Army's 2025 budget continues to support the most
    ambitious modernization effort the Army has undertaken in more
    than 40 years. We are making significant progress I am pleased
    to report, in transforming our capabilities by staying
    consistent in our goals and meeting key milestones for
    development and fielding.
        The Next-Generation Squad Weapon, Integrated Battle Command
    System, Mid-Range Capability, and Precision Strike Missile are
    just some examples of the critical new systems that we have
    recently delivered.
        As we bring these new systems into our inventory, we are
    also transforming our force structure to meet the priorities of
    the National Defense Strategy. We are building out new
    formations, such as our five Multi-Domain Task Forces that are
    equipped with the capabilities we need to conduct large-scale
    combat operations against technologically advanced military
    powers.
        And we are shrinking excess force structure so that the
    units we have are manned and ready. While these force structure
    decisions bring down authorized troop levels by about 24,000
    spaces, our goal is to increase our authorized end strength to
    470,000 by the year--fiscal year 2029.
        To meet that goal, General George, and I, and the whole
    Army team are working around the clock to overcome our
    recruiting challenges, and we are making solid progress.
    Building on successful initiatives like the Future Soldier Prep
    Course, we are fundamentally transforming our recruiting
    enterprise to better compete in the 21st-century job market.
        Most significantly, we are redesigning our recruiting
    workforce by creating new permanent specialized recruiters for
    both enlisted soldiers and warrant officers, actually, the
    assessment and selection of the first class of warrant officers
    focused on recruiting is finished, and they will be going out
    into the field later this summer.
        But while we transform, we can't lose sight of taking care
    of our soldiers and families. A key part of this responsibility
    is providing safe, high-quality housing and barracks. Over the
    next 5 years, the Army will invest, on average, $2.1 billion
    every year in the construction, sustainment, restoration, and
    modernization of barracks for unaccompanied soldiers.
        This investment will fund barrack sustainment at 100
    percent for the first time in years, and we are leveraging the
    expertise of the Army Corps of Engineers to stabilize project
    costs. And we are hiring civilian barracks managers so that our
    soldiers can focus on warfighting responsibilities.
        Physically and emotionally healthy soldiers are more
    resilient, higher performing, and less likely to engage in
    harmful behaviors. To build resilient soldiers, we are
    expanding our Holistic Health and Fitness Program to 71 active
    component brigades. We are investing in financial counseling
    services to ensure that our soldiers know how to manage their
    money, and we are encouraging programs in our divisions that
    focus on soldier well-being. Our goal has been and remains
    building cohesive teams that can fight and win.
        Throughout this transformation, which is required given the
    very dangerous world in which we live, we are continuing to
    provide combatant commands with trained and ready formations.
    This year's budget seeks $1.5 billion for activities tied to
    the Pacific Deterrence Initiative, and we have asked for $460
    million for Operation Pacific Pathways, our series of exercises
    focused on strengthening deterrence and interoperability with
    partners in the Indo-Pacific.
        In Europe, our troops are demonstrating our commitment to
    deterring Russian aggression. As you said, Vice Chair Collins,
    the Army is leading the effort to support Ukraine, from
    training over 17,000 Ukrainian troops to providing hundreds of
    vehicles, weapon systems, and millions of munitions. And in the
    Middle East, our soldiers are mission-focused and have been
    hard at work building the floating pier to deliver more
    humanitarian aid in Gaza.
        The Chief and I appreciate the recently passed Supplemental
    Appropriations Bill that will maintain our critical support to
    Ukraine, support partners in Asia and the Middle East, and
    invest in our own readiness. And we strongly urge, going
    forward, the passing of on-time annual appropriation bills that
    will maintain our readiness in this volatile time.
        With your support, we will continue to take care of our
    people and sustain the Army's transformation that will keep us
    the best Army in the world.
        I am proud of all that our soldiers and Army civilians are
    doing. And look forward to your questions this morning.
        Senator Schatz. Thank you very much Secretary Wormuth.
        General George, please proceed.
    STATEMENT OF GENERAL RANDY A. GEORGE, CHIEF OF STAFF OF
                THE ARMY
        General George. Thank you, Senator Schatz, Vice Chair
    Collins, distinguished members of the committee, thank you for
    the opportunity to talk with you today about our Army.
        The world is more volatile today than I have seen it in my
    36-year career, and there is clearer cooperation between
    adversaries than we have seen in a while. A spark in any region
    could have global impacts.
        Meanwhile, the character of war is changing rapidly, which
    we see from what is happening on the battlefields in Ukraine
    and the Middle East. Our Army is as important to the Joint
    Force as it has ever been. We must deter war everywhere and be
    ready to respond anywhere. So we are focused on providing the
    best Army with the budget we are given. Our Soldiers deserve
    it, our Joint teammates deserve it, and our Nation deserves it.
    And that means making some tough decisions and finding ways to
    get better every day.
        As the Secretary already highlighted, our planned
    investments reflected in our fiscal year 2025 budget will help
    our Army win the future fight and ensure that our soldiers and
    their families remain ready and resilient. Across the Army, we
    are learning from global events and continuously transforming
    how we operate, how we train, and how we equip, and I would
    like to highlight a handful of things.
        We are learning that designs for things like unmanned
    systems must be modular, adaptable, and software-defined. We
    are working to get relevant technology into the hands of
    soldiers immediately. We are learning that counter-unmanned
    systems must evolve as the threat does to protect our
    formations and critical infrastructure. We are also moving out
    on that while being mindful of the cost curve, we need cheaper
    solutions.
        We are learning that, in some cases, the right tech already
    exists to support transformation. For instance, tech exists to
    make our command and control nodes more mobile, lower
    signature, and more effective. We are fixing our network. And
    we are building our magazine depth and modernizing our organic
    industrial base because we know that wars never end as quickly
    as we hope, they take a lot of ammo.
        We are also transforming how we recruit, ensuring that we
    have the right talent and the right tech, and that we are
    getting the word out about how our Army is a great place to
    serve because of our mission and our people.
        Finally, we are also looking at where we need to reimagine
    our processes, and where we can afford to stop doing things
    that don't support our warfighting mission or building cohesive
    teams. I am proud of what our soldiers are doing around the
    world to help defend our country.
        Thank you all for your support. And we look forward to your
    questions.
        [The statement follows:]
     Prepared Statement of Christine E. Wormuth and General Randy A. George
                     the need for continuous transformation
        Today's security environment is both complex and volatile. The
    contemporary battlefield is increasingly transparent. The inescapable
    prevalence of Internet-enabled sensors, from cell phones to satellites,
    makes it possible for our adversaries to see and target U.S. interests
    anywhere in the world. Advances in commercial technology have outpaced
    military technology in many areas, and the innovative use of simple and
    inexpensive commercially available systems provides a tactical
    advantage to forces that can procure and adapt faster than their
    opponents.
        Conflict is migrating into cities and dense population centers and
    is extending into new domains, with space and cyberspace enabling
    global effects. Developments in Ukraine, the Middle East, and elsewhere
    around the world have highlighted the volatility of this landscape, and
    regional conflicts carry the potential to ignite a firestorm with
    global impacts.
        To meet these challenges successfully, the Army must transform
    quickly. We will ensure continued progress on long-term efforts that
    improve our warfighting on current and future battlefields in support
    of the National Defense Strategy, but our readiness cannot wait for
    arbitrary time horizons. The Army must continuously transform to adapt
    to the rapid pace of change occurring now. This need drives our $185.9
    billion budget request for Fiscal Year (FY) 2025.
        Army transformation is well underway, but we must accelerate and
    intensify our efforts. We must transform our capabilities, force
    structure, and recruiting enterprise. We must deliver ready combat
    formations and take care of our people, ensuring the quality of life
    for our Soldiers, Army Civilians, and families.
                         transforming our capabilities
        As we adapt to the changing environment, we are steadfast in
    developing advanced, long- term modernization programs to ensure that
    the Army maintains the overmatch required for future battlefields. The
    Army has made significant progress in our most ambitious modernization
    effort in more than 40 years by maintaining continuity across budgets
    and meeting major milestones for development and fielding. The success
    of this effort has been marked by the recent delivery and fielding of
    the Armored Multi-Purpose Vehicle (AMPV), Integrated Air and Missile
    Defense Battle Command System (IBCS), Mid-Range Capability (MRC), Next
    Generation Squad Weapon, and Precision Strike Missile (PrSM).
        The Army continues to develop counter-unmanned aircraft system
    (UAS) capabilities as the Department of Defense's lead agency for
    countering small-UAS (C-sUAS). From the testing and fielding of systems
    such as Mobile Low, Slow, Small-Unmanned Aircraft Integrated Defeat
    System (M-LIDS), Fixed Site Low, Slow, Small-Unmanned Aircraft
    Integrated Defeat System (FS-LIDS), or Coyote, to the operational
    deployment of Directed Energy Maneuver Short Range Air Defense System
    (DE-MSHORAD), the Army and the Joint Counter-UAS Office (JCO) are
    exploring novel concepts and accelerating system development to meet
    the challenges of the advancing threat.
        Building on the requirements for long-range precision fires, the
    Army fielded the first prototypes of the MRC to its 1st Multi-Domain
    Task Force (MDTF) in 2023 and is in the process of completing flight
    testing of the Long-Range Hypersonic Weapon, which is intended for
    delivery by the end of 2024. The Army awarded the contract for the
    development of the Tactical Intelligence Targeting Access Node (TITAN)
    in 2Q FY 2024 to produce the targeting data needed for these advanced
    capabilities and provide battlefield commanders with advanced
    decisionmaking tools in a rapidly evolving battlespace.
        The Army is transforming the network to enable these capabilities
    and ensure our forces are lean, mobile, and low signature. We will
    begin a pilot for satellite-as-a-service in early FY 2025 while making
    continued progress on a zero-trust architecture. These efforts will
    form the security backbone of the Unified Network and enable the Army's
    integration into Combined Joint All-Domain Command and Control
    (CJADC2).
        The Army is re-balancing aviation investments, shifting away from
    capabilities that are not survivable on the modern battlefield while
    investing in effective new technology. We are ending the development of
    the Future Attack and Reconnaissance Aircraft (FARA) and the production
    of the UH-60V version of the Blackhawk helicopter while also phasing
    out the operations and sustainment of the Shadow and Raven unmanned
    systems. We are delaying entering into production of the Improved
    Turbine Engine but remain committed to developing that program for
    integration into the UH-60 Black Hawk and AH-64 Apache helicopters. We
    will deliver needed capabilities by relying on a mix of enduring,
    unmanned, and space-based assets that are survivable and effective for
    current and future fights.
        We are investing in our aviation capabilities by beginning
    production of the CH-47F Block II Chinook helicopter and continuing
    development of the Future Long Range Assault Aircraft (FLRAA). We are
    also continuing to develop advanced unmanned systems, such as the
    Launched Effects family of systems and the Future Tactical Uncrewed
    Aircraft System, while leveraging opportunities to use commercial
    technology in innovative ways.
        As we transform our capabilities, we will explore new ways to
    validate our systems as we introduce them into our formations. One way
    we will do this is by transforming in contact, using ongoing
    deployments and troop rotations as opportunities to explore new
    techniques and equipment. Transforming in contact ensures we validate
    systems and processes in their intended environments with the Soldiers
    who will employ them. Infusing commercial technology that is ready for
    employment will improve our lethality and readiness to face the
    challenges ahead.
        These developments require the continued support of industry,
    underpinned by the ingenuity and drive of the American people.
    Investments in the modernization and workload of our organic industrial
    base are essential to meeting the requirements and scale of the modern
    battlefield. Current commercial production is insufficient to meet
    global demand. Multi-year procurement authority will significantly
    improve the production rates of critical munitions such as 155mm
    artillery rounds and Patriot missiles. However, further investment is
    necessary to ensure that the nation can scale the production of these
    and other munitions and systems to meet current and future
    requirements.
                        transforming our force structure
        The Army is transforming our force structure to incorporate new
    capabilities and refocus on large-scale combat operations. The legacy
    structure from the past two decades focused on counterinsurgency and
    counterterrorism operations and maintained authorizations to
    accommodate 494,000 Active-Duty Soldiers. Our transformation will
    reduce the unfilled and excess positions and create space for new
    capabilities supporting large-scale combat operations in a multi-domain
    environment. The success of this restructuring will rely on the Army's
    ability to gradually increase end strength from the current 445,000
    Soldiers to 470,000 by FY 2029 to meet the requirements of the future
    force.
        This transformation includes a reduction of some 32,000
    authorizations across the Active-Duty force structure and an addition
    of 7,500 new authorizations, leading to a net decrease of about 24,000
    authorizations. The overall reduction in authorizations will more
    closely align the structure to the authorized end strength to improve
    the readiness of formations while increasing their capabilities for the
    future fight. Our restructuring efforts focused on creating lethal,
    flexible formations that can adapt to large-scale combat operations and
    decreasing the number of authorizations that were designed for a
    counterinsurgency mission, not frequently deployed or unfilled. New
    additions to the Active Component force structure include the
    completion of five MDTFs, four additional Indirect Fire Protection
    Capability (IFPC) battalions, nine C-sUAS batteries, and four
    additional M-SHORAD battalions. All these formations bring advanced
    capabilities to meet current requirements and ensure that we maintain
    overmatch against adversaries in the future.
                     transforming our recruiting enterprise
        Transformation will only take place through the hard work of
    talented and dedicated Soldiers, Army Civilians, and the support of
    their families. The Army is a great place to serve: we are retaining
    talented Soldiers, finishing FY 2023 at 102% of our retention mission.
    Even so, the challenges to Army recruiting pose an existential threat
    to the all-volunteer force, and addressing these challenges has been
    one of our most comprehensive efforts over the last year.
        The Army is making fundamental changes to its recruiting approach.
    This starts with redesigning our recruiting workforce, moving away from
    a model that places Soldiers outside of their primary military
    occupational specialty (MOS) into temporary recruiter positions for
    only a few years at a time. To do this, we are creating new talent
    acquisition specialties for both enlisted Soldiers and warrant
    officers, allowing our recruiters to develop skills to succeed in a
    competitive hiring environment. These new recruiters will expand their
    focus on the prospect market beyond those with a high school degree and
    will aim to recruit a third of new trainees from the ``college or some
    college'' population by 2028. This shift requires our recruiters to
    become more active on the campuses of junior colleges and technical
    institutes and increase Army recruiting presence in online forums.
        We are also creating a significant innovation capability within
    U.S. Army Recruiting Command (USAREC) to quickly identify and scale
    promising new approaches and discard recruiting practices that are no
    longer successful in a competitive and rapidly changing labor market.
        Finally, we are seeking to elevate USAREC to become a three-star
    command that oversees enlisted recruiting, Army Cadet Command, and the
    Army's Enterprise Marketing Office and reports to the Secretary of the
    Army and the Chief of Staff of the Army in light of its critically
    important mission. The leadership of USAREC will serve for an extended
    tenure, building stability and expertise and decreasing the impact of
    frequent leadership changeover.
        Although FY 2023 was a challenging year, it showed a marked
    increase of 5,200 recruits over FY 2022, in large part due to the
    outstanding work of our 8,000 recruiters and the successful
    implementation of initiatives across the Army. As this transformation
    begins, our goal for FY 2024 is 55,000 Regular Army recruits and 5,000
    commitments to the Delayed Entry Program. We will also continue
    successful initiatives like the Future Soldier Prep Course, which has
    brought more than 18,000 new Soldiers into the Army since its inception
    in the summer of 2022.
                       delivering ready combat formations
        Despite recruiting challenges, the Army is meeting our global
    requirements. Over 140,000 Soldiers from all components are deployed or
    stationed in 143 countries worldwide to defend the nation's interests
    and maintain security with our allies and partners.
        The Army provides the operational endurance, reach, and
    survivability necessary for joint force success in the Indo-Pacific.
    For FY 2025, we are requesting $1.5B for Pacific Deterrence Initiative
    activities to exercise and campaign with our allies and partners,
    building and demonstrating shared readiness to deter Chinese aggression
    and ensure regional stability. This readiness begins in Hawaii and
    Alaska, where U.S. Army Pacific has established the Joint Pacific
    Multinational Readiness Center (JPMRC). JPMRC allows the Army and our
    partners to train in a variety of environments, from tropical jungles
    to the high arctic.
        Funding for Operation Pathways will support partnered, all-
    component, multinational exercises such as TALISMAN SABRE. Last year's
    exercise included over 30,000 participants from 15 nations and provided
    the Army with the opportunity to construct and operate Joint Logistics
    Over the Shore (JLOTS), the largest such operation in over two decades.
    We continue to train, exercise, and collaborate with our long-standing
    allies, the Republic of Korea (ROK) and Japan. Last summer, the Army
    deployed a combined arms battalion on short notice from CONUS to the
    Korean Peninsula to demonstrate rapid crisis response and our resolve
    to deter DPRK aggression. In Japan, the Army supported Japan's Ground
    Self Defense Forces through the annual YAMA SAKURA exercise series.
        The Army will continue to prioritize the Indo-Pacific as we
    transform our force structure and introduce new capabilities for
    strategic competition, including the 1st, 3rd, and 4th MDTFs, the 5th
    Security Forces Assistance Brigade (SFAB), and the 11th Airborne
    Division, the Army's newest division focused on cold weather and high-
    altitude operations in the Arctic.
        In Europe, the Army is requesting $2.1B to support European
    Deterrence Initiative activities to maintain rotational deployments,
    train with our NATO allies, build readiness, and demonstrate our
    ability to rapidly project combat forces into the theater. This was
    recently on display during Exercise ARCTIC SHOCK when U.S. Army
    paratroopers and their Norwegian counterparts flew over the North Pole
    from Alaska and conducted a combined airborne operation into Norway. In
    the coming months, over 16,000 of our Soldiers will train with more
    than a dozen other countries in Exercise DEFENDER 24.
        We continue our full support of Ukraine and its fight to repel
    Russia's invasion of its sovereign territory. Our troops have trained
    over 17,000 Ukrainian soldiers in Germany. We have sent major combat
    systems and munitions to Ukraine, including 21 High Mobility Artillery
    Rocket Systems (HIMARS), 1 Patriot air defense battery, 131 Strykers,
    31 Abrams tanks, 162 Bradley fighting vehicles, and over 1.5 million
    artillery munitions. This support is an investment in our own national
    security: it deters potential aggression elsewhere in the world and
    strengthens our defense industrial base. Supporting Ukraine is also
    critical to our military readiness. The lessons we have learned from
    Ukraine have allowed us to develop new methods, techniques, and
    capabilities for future conflicts. We have also seen how U.S. equipment
    is both effective and survivable, even in degraded or contested
    environments.
        Now more than ever, the Army is leading efforts to support Ukraine
    in its fight to regain its sovereign borders. The legislation passed
    last month allowed us to reinvigorate this critical support. We urge
    Congress to pass on-time appropriations bills and supplemental
    appropriations bills when required as we demonstrate our unwavering
    support for our allies and partners around the world.
        In the Middle East, Iranian-aligned militia groups have
    increasingly threatened and attacked U.S. forces and interests,
    invigorated by Hamas's attacks against Israel in October 2023. U.S.
    Army Central (USARCENT) has assessed the force protection requirements
    of facilities and units, and we have deployed advanced counter-UAS
    capabilities, including DE M-SHORAD, to the region to defeat the
    ongoing use of sUAS and expand the network of defense for U.S. troops
    and bases. We are also supporting U.S. Central Command with JLOTS,
    which will provide the Joint Force with the capability to increase the
    viability of large-scale maritime shipments of humanitarian aid into
    Gaza.
        Soldiers from all components of the Army are serving the nation
    around the globe, including 2,500 Soldiers supporting the Department of
    Homeland Security at our southwest border. Regionally aligned Special
    Operations Forces and SFABs provide access and presence in each
    geographic combatant command, including 2nd SFAB's support over the
    last year to partner forces in Kenya, Tunisia, Gambia, and other
    partners in Africa. Army National Guard units support 30 nations in
    Central and South America as part of the State Partnership Program,
    training and building enduring relationships that improve mutual
    readiness.
        readiness of soldiers and families: quality of life investments
        Our readiness depends not just on recruiting, equipping, and
    training the force but also on the individual health and fitness of
    every Soldier. This readiness begins in the barracks, and the Army is
    dedicated to providing safe, high-quality housing and barracks for our
    Soldiers. The Army will invest an average of $2.1B annually in the
    construction, sustainment, restoration, and modernization of barracks
    for unaccompanied Soldiers across Future Years Defense Program 25-29.
        For FY 2025, the Army is budgeting $935M for nine unaccompanied
    housing construction projects across Active Duty and Army Reserve at
    multiple installations, a 325% increase in construction from FY 2024.
    Barracks sustainment has been funded at 100% of the requirement, an
    investment of $680M in FY 2025. We are also leveraging the expertise
    found within the U.S. Army Corps of Engineers to stabilize project cost
    growth through early involvement in the planning and design processes.
    Additionally, the Army is allocating $35M to hire civilian barracks
    managers at multiple installations, which will decrease the
    requirements for Soldiers to serve as barracks managers and allow them
    to focus on their primary warfighting duties.
        For accompanied Soldiers, the Army is investing $403.7M into
    government-owned Army family housing in FY 2025. This investment will
    address facility sustainment, construction of 173 new homes, and
    renovation of 252 homes. Across all installations, the Army is
    committed to increasing oversight of privatized housing and combating
    environmental hazards within both government-owned Army family housing
    and privatized housing through consistently applied maintenance and
    inspection programs.
        The Army remains committed to reducing instances of sexual assault
    and sexual harassment, ensuring impartial justice, and encouraging
    healthy behaviors that strengthen the trust between the Army and the
    American people. During early FY 2024, the Army established the Office
    of the Special Trial Counsel (OSTC), which is staffed by specially
    trained, independent military attorneys (``special trial counsel'') who
    make prosecution decisions for sexual assault, domestic violence, and
    other covered offenses. Beginning in December 2023, the OSTC gained the
    authority to make case dispositions. This increases transparency and
    ensures that impartiality is inherent within the military justice
    process.
        The Army is implementing a comprehensive, integrated prevention
    plan (CIPP) at all commands across the Army, which details actions to
    improve command climate. In particular, at the United States Military
    Academy, CIPP incorporates character development with proactive
    approaches to prevent sexual assault and other harmful behaviors.
    Additionally, we have instituted dedicated instruction during initial
    entry training that reinforces the shared trust required to form
    cohesive teams and provides education on prevention and response
    resources. These proactive approaches and many others will inform the
    creation of the Army's Sexual Harassment and Response Program (SHARP)
    regulation, which will be published this fiscal year.
        The Army continues to combat the risk of Soldier suicide through
    multiple approaches, acknowledging that every suicide impacts families,
    teammates, and the readiness of the force. The Army published its
    Suicide Prevention Regulation in September 2023, and we are ensuring
    that Soldiers are aware of and have clear access to mental and
    emotional health resources. The Army is investing in programs that help
    Soldiers maintain financial stability, mental health, strong
    relationships, and physical well-being, including expanding the
    Holistic Health and Fitness (H2F) program to 71 brigades in FY 2025 and
    budgeting $24.4M for financial counseling services.
        This holistic approach to Soldier wellness is taking form at every
    installation in the Army, with many garrisons consolidating the
    resources needed to combat suicide and increase Soldier fitness at a
    single accessible location. Tailored programs like 1st Infantry
    Division's ``Operation Victory Wellness,'' 10th Mountain Division's
    ``Mountain Care,'' and 11th Airborne Division's ``Mission 100'' are
    prioritizing engaged leadership and providing a wide range of location
    and community-specific resources to Soldiers and their families.
        Ensuring that Army families have the resources they need to thrive
    is vital to our force's readiness and a driving factor behind Soldier
    retention. The Army's FY 2025 budget requests funding to construct
    three new child development centers (CDCs) at Fort Liberty, North
    Carolina, Fort Meade, Maryland, and Wiesbaden, Germany. We are testing
    and implementing incentives to maintain high staffing levels at
    existing CDCs by providing recruitment and retention bonuses, tuition
    assistance, and access to on-post resources such as commissaries at 16
    installations.
        Building on the Veterans Auto and Education Improvement Act of
    2022, the Army continues to work with the Defense State Liaison Office
    to ensure military spouses can achieve portability of their
    occupational license as they undergo a permanent change of station.
    Army spouses may also take advantage of new opportunities provided by
    updates to the Military Spouse Employment Act, which grants Federal
    agencies the authority to hire military spouses for remote work and
    allows military spouses to retain their positions should they relocate
    to another location. We are also continuing to coordinate with the
    Office of the Secretary of Defense to implement new policies that
    further expand employment opportunities for our Army spouses as
    directed by the Executive Order on Advancing Economic Security for
    Military and Veteran Spouses, Military Caregivers, and Survivors.
        The Army spends over $1.3 billion annually to provide Soldier and
    family support programs at installations around the world, but we
    recognize that each installation, unit, and community is unique and has
    discrete needs. We are empowering senior installation commanders with
    the authority to scale successful programs and close programs that do
    not meet the needs of each individual community. We are piloting this
    tailored, localized approach to Soldier programs at Fort Cavazos, TX,
    and will expand to other installations pending the results of the
    pilot.
                         maintaining the strategic path
        Today's security environment is volatile and evolving quickly. The
    battlefield is increasingly transparent, commercial technology is
    advancing rapidly, and new capabilities allow adversaries to reach
    around the world. The Army is transforming to meet the needs of this
    rapidly changing environment. With Congressional support, we will keep
    the Army on a sustainable strategic path as we transform for the
    future. We will deliver ready combat formations with advanced
    capabilities to defend our nation and its interests. We will transform
    our recruiting enterprise to guarantee the longevity of the All-
    Volunteer Force. We will invest in the quality of life of our Soldiers,
    Civilians, and their families. We will build cohesive teams and foster
    climates of trust grounded in our shared Army values. And we will serve
    with the discipline and professionalism that the nation demands of its
    Army, just as we have done for the past 249 years. This We'll Defend.

        Senator Schatz. Thank you very much, General George.
        Secretary Wormuth, last year you visited Schofield Barracks
    on Oahu, and after touring where soldiers live, you said to the
    press, and I quote, ``I wasn't happy with what I saw, frankly,
    those are the kinds of things that I want us to get after.''
    Tell me what you saw and tell me what you are doing about it?
        Secretary Wormuth. Thank you, Senator Schatz. I have seen a
    lot of barracks over the last three-plus years, so I am not
    sure if I will remember exactly what I saw at Schofield, but
    what I have seen and what I probably saw there was struggles
    with, you know, water on the floor, humidity. I remember
    meeting one soldier in his barracks room, and it looked like he
    had just stepped out of the shower in his bathroom, but in
    fact, the water was, you know, seeping through the floor
    because of issues with the foundation. As you know well, some
    of the barracks at Schofield are pretty old.
        And so what we are doing is investing $2.1 billion a year
    in barracks, whether it is construction for new barracks,
    whether it is renovating barracks we already have, or
    sustaining barracks at 100 percent, which is something we have
    not done in a long time. And I think all of that, together,
    will help us significantly decrease the amount in our inventory
    of barracks that are kind of at an unacceptable condition.
        I will be honest with you, you know, we have a huge
    inventory of barracks, and we are going to, you know, even with
    all of that money, that we are investing, we really need to
    invest more in barracks, but everything, you know, we have got
    to figure out where that incremental dollar goes. But I think
    this will do a lot.
        Senator Schatz. So the $2 billion a year at 100 percent,
    right. So let me try to understand this. This is FSRM
    (Facilities Sustainment, Restoration and Modernization) money?
        Secretary Wormuth. Yes.
        Senator Schatz. Okay. Not MILCON?
        Secretary Wormuth. Well, the $2.1 billion is the total.
    There is MILCON, there is FSRM that is the total.
        Senator Schatz. I got it. Okay.
        Secretary Wormuth. But within that, we are sustaining at
    100 percent as opposed to 85 percent, which is what we have
    typically maintain.
        Senator Schatz. And how does that work on your--I am sure
    you have a sort of wedge analysis to get to where you want to
    go. How many years of that level of investment would get us to
    something that you would consider acceptable?
        Secretary Wormuth. I think it is going to take us several
    years, Senator, because, as you know, property just depreciates
    continuously over time. So the 100 percent sustainment will
    help slow that, you know, steady decrease in quality. But we
    are going to have to make these kinds of investments for
    multiple years.
        Senator Schatz. Sorry to interrupt. Could you get us some
    fidelity on, you know, you have an inflation number that you
    now have to work with, and then you have the normal
    depreciation. Then you know, so I am--your answer is several
    years, but I would like to know if it is four-and-a-half, or
    six-and-a-half, or two-and-a-half, because I think the
    committee needs to know in case there is a desire to spend more
    on this kind of thing, you know, what would get us to a better
    baseline?
        Secretary Wormuth. We can get that for you.
        Senator Schatz. Thank you very much.
        General George, I have been a fan of Pacific Pathways for a
    very, very long time. I want to give you a couple of examples
    of how cost-effective it is. Of course, you know this, but this
    is really for staff. $18 million in 2023, the Army built
    partner capacity in the Philippines through Exercise Balikatan.
    In 2019, the Army spent $823,000 in Palau conducting joint
    homeland defense drills, community health outreach, and
    repairing infrastructure.
        Can you just, you know, tell the public, tell the committee
    about the cost-effectiveness of Pacific Pathways? I have never
    seen, especially in this committee, something so inexpensive
    and high impact. Your mic is not on.
        General George. Pathways is incredibly effective for us out
    in the Pacific. I mean, right now, what USARPAC (United States
    Army Pacific) is doing in the Philippines is they basically are
    taking an exportable training package that is out there and
    helping to train those formations. We have the same thing in
    reverse when we have all of our partners and allies that are
    coming to Hawaii to train, which is very effective for our
    relationships that are out there in the Pacific.
        But all of those exercises, I would say, are building our
    interoperability, they are building trust with our partners and
    allies that are out there, and they are building real
    capability. We are also using them, just to your cost-
    effectiveness, to help us transform. I mean, some of the things
    that we are doing out there right now with 25th ID that has
    been out there, they are using unmanned systems to deliver and
    ammunition, so using it on the logistics side. And we could go
    on a long time about what the impact we think that that is
    having out there.
        Senator Schatz. Two thoughts: first of all, the soldiers
    also love it, they love it. And that is not a trivial aspect of
    this program. The other thing is if you can get us some data on
    how much more you could do with more resources; that would be
    very helpful.
        Vice Chair Collins.
        Senator Collins. Thank you, Mr. Chairman.
        Secretary Wormuth, we discussed just recently in my office
    the horrific mass shooting that occurred last October 25th in
    the State of Maine, the worst mass shooting in our State's
    history, in which 18 individuals died, and another 13 were
    injured. The killer, Robert Card, was a Sergeant First Class in
    the U.S. Army Reserve.
        The Governor of Maine has established an independent
    commission that has already issued an interim report, and that
    report includes several very troubling findings about missed
    opportunities to prevent this tragedy. So I want to ensure that
    we are taking every action necessary to try to lessen or
    prevent the chances of such a tragedy ever happening again.
        Secretary Austin has committed to working with me in
    drafting legislation that would require our Military Services
    to report to the appropriate authorities when a service member
    poses a threat to him or herself, or to others, while
    protecting the Second Amendment Rights of our service members.
        But to draft the most effective legislation, I very much
    need the results of the review that the Army Reserve has
    undertaken, as well as the investigation that I requested from
    the Inspector General. Originally, the Army Reserve's
    Administrative Review was supposed to be completed by mid-
    January, and we expected to have the IG's (Inspector General)
    Report by the end of February. Could you please update me on
    when we can expect those two critical reports?
        Secretary Wormuth. Certainly. And Senator, first of all, I
    would say, you know, my heart goes out to all of the families
    in Maine that, that lost people, and that were affected by the
    terrible shooting. It was truly tragic.
        You will be able to expect, I think, the Army Reserve
    investigation in a couple more weeks. It has been, as we talked
    about, very comprehensive. There are over, I think, 3,000 pages
    of interviews with witnesses and documents that they have
    collected, which is partly why it has taken so long, but it
    should be done in a couple more weeks. And then I think the
    separate review being done by our Army Inspector General will
    follow shortly after that.
        Senator Collins. Thank you. I look forward to working with
    you on the legislation, and would love to have your commitment
    for that as well.
        Secretary Wormuth. We look forward to working with you on
    your legislation.
        Senator Collins. Thank you. General George, there are those
    who are against assistance to Ukraine, in particular, that
    contend that our Defense Industrial Base cannot build enough
    Air Defense Patriots, for example, or artillery grounds to
    support Ukraine and Israel while also meeting the Army's own
    requirements for these systems, even after the substantial
    investment from the supplemental.
        And I am a very strong supporter of assisting both Ukraine
    and Israel. The implication of this line of argument is that we
    should end our security assistance to Ukraine because we can't
    take care of our own Army's needs as well.
        So let me ask, ask you directly, can the Army and our
    allies effectively manage the risk to the Army's munitions
    stockpiles, particularly for air defense and artillery, while
    also providing assistance to Ukraine and Israel?
        General George. Senator, I think we can. And I do want to
    say thanks on the supplemental. I think obviously the most
    important thing for us is on-time funding so we can get things,
    and you know, we struggled a little bit with that over this
    last year. And what we need to do is, is what we are on the
    path to do, is also continuing to invest in our organic
    industrial base.
        And we can get examples for like 155, where we are
    producing a little over 30,000 rounds a month, and by the
    beginning of 2026 we will be producing over 100,000 rounds a
    month. So that is what we need to do. We need to continue to
    invest in that in addition to what we are supplying for our--
    you know, to those efforts.
        Senator Collins. Thank you.
        Senator Schatz. Senator Moran.
        Senator Moran. Chairman, thank you. Thank you, Ranking
    Member Vice Chairman.
        Secretary, General George, welcome, welcome to your debut
    hearing in the appropriations process.
        Last October, the Under Secretary announced a digital
    engineering strategy to optimize sustainment across the
    Services. I understand the Army just this morning signed a
    policy to help accelerate the adoption of digital engineering.
    My view is that these tools are incredibly important for
    designing and building new platforms and sustaining existing
    systems.
        Secretary, can you tell the committee a little bit more
    about the forthcoming policy, and how the Army's previous
    digital engineering work informs the adoption of this
    capability?
        Secretary Wormuth. Thank you, Senator Moran. It is good to
    see you. And we are excited about our new digital engineering
    policy. Basically, what we are trying to do is make it easier
    for the Army to adopt digital engineering approaches more
    broadly at scale across the Army. You know, this is the kind of
    work that allows us to do modeling, and simulation, and explore
    engineering challenges using computer simulations, which is
    more efficient and less costly.
        So for example, our program to replace the Bradley Fighting
    Vehicle, the XM30 Program, is incorporating digital engineering
    in its development work. And the policy has a number of
    different components, but its broad goal is to help us use that
    important approach more broadly so that we can be more
    effective in our modernization programs.
        Senator Moran. Thank you for that answer.
        General George, I would guess that the Senator from
    Connecticut, Senator Murphy, will ask you about the Future
    Long-Range Assault Aircraft and its safety. I want to inform
    you that I support the decision to award Bell Textron the
    contract for FLRAA (Future Long Range Assault Aircraft). This
    is an aircraft that maneuvers like a helicopter in vertical
    flight, flies twice as far and twice as fast as current
    helicopters. All of this needs to be done with a safe piece of
    equipment.
        The aircraft competitively selected by the Army was the
    only one that fully met those requirements, and it was, that
    was validated by the GAO (Government Accountability Office).
    Would you highlight for the committee, the importance of speed
    and maneuverability this aircraft provides, as well as how the
    Army plans to leverage its open system architecture?
        General George. Yes, Senator, I mean, it can't come fast
    enough for me. So I think this is going to be game-changing,
    you know, for this aircraft, just for what you talked about.
    The range it is going to have, the speed it is going to have,
    and then with open architecture, what we can do with manned-
    unmanned teaming, launch, defects, and all the other things
    that are going to come with this. So I think it is going to
    increase our capabilities.
        Senator Moran. Thank you. Secretary, TAA (Training and
    Technical Assistance) highlighted several capabilities
    requiring significant investments at a time in which the Army
    budget probably for this fiscal year represent about fiscal
    year 2022 levels. I hear that there is a potential of
    establishment of new structures or a new structure, like a
    drone branch or a permanent ABCT (Armored Brigade Combat Team)
    in Poland. Would the simultaneous establishment of additional
    units not planned for in previous ARSTRUCs (Army Structure) be
    disruptive to the Army's current plans to modernize?
        Secretary Wormuth. Thank you, Senator. I think it would be
    challenging to generate, for example, a whole new armored
    brigade combat team, you know, given the recruiting challenges
    that we are working through. And like I said, I want to
    emphasize that we are, I think, going to make our recruiting
    goal this year. But you know, we have not built into our
    current TAA plans an intention to build a new Armored Brigade
    Combat Team. Instead, we are looking at things like the
    counter-UAS (Unmanned Aircraft Systems) battery that would
    eventually come to Fort Riley, to the Maneuver SHORAD (Short-
    Range Air Defense) battalions, and the multi-domain task
    forces.
        So at this time, we are not looking at building a new
    Armored Brigade Combat Team, and I think we want to focus on
    the integrated air and missile defense formations that are
    going to be so important for large-scale conflict against an
    advanced competitor.
        Senator Moran. You have established your priorities, and
    you believe in those priorities; is that what you are telling
    me?
        Secretary Wormuth. I do. And I mean, we do--we review our
    force structure every year, so we certainly want to adjust to
    conditions and adjust, you know, as the strategy may require
    us. But right now, I think we believe that we are--what we have
    built in, in terms of new formations are what is right for the
    Army right now.
        Senator Moran. Thank you very much.
        General George. Can I make a comment just on the one topic
    that didn't come up?
        Senator Moran. Please, General.
        General George. I know we are a little over. But on the--we
    appreciate the interest, for example, on drones. And you have
    mentioned, you know, drone branch. You know, for us, this is a
    capability that is going to be, I think, resident in every
    formation at every echelon. So we don't--we see this as
    integrated in--into our formation, not some separate piece. And
    I think we need that kind of flexibility.
        We are actually doing that right now with our formations.
    We have--we selected three units to kind of work this out and
    start to transform in contact in doing this. But I don't think
    it would be helpful to have a separate drone branch.
        Senator Moran. Understood. Thank you.
        Senator Schatz. Senator Baldwin.
        Senator Baldwin. Thank you, Mr. Chairman.
        Secretary Wormuth, as you know, the tactical wheeled
    vehicle industrial base is an important part of the Wisconsin
    economy, as well as a vital contributor to the Army's
    warfighting requirements. I remain troubled by the Army's lack
    of careful management of the industrial base, as I see it. The
    Army has now awarded the Joint Light Tactical Vehicle contract
    to an organization with no experience making JLTVs. That
    company must now stand up a brand new production line, risking
    a gap in fielding this critical platform.
        So Secretary Wormuth, what is the status of this new JLTV
    line and supply chain? And will the new vendor meet the
    required schedule for production and fielding? Has the Army
    identified any technical, schedule, or financial risks? And
    under what circumstances will the Army negotiate a bridge
    contract with the incumbent manufacturer, Oshkosh Defense, to
    avoid any gaps in production? And I can repeat those because I
    gave you quite a few.
        Secretary Wormuth. Thank you, Senator Baldwin. At this
    time, we are not anticipating any problems in the shift from
    Oshkosh to AM General. As you rightly pointed out, AM General
    has not made JLTV previously, but one of the things that I
    think will provide a bridge, if you will, and allow AM General
    to be fully prepared is the fact that we are going to keep the
    production line open with Oshkosh using replenishment funds, so
    that, I think, will allow us to make a smooth transition.
        We are also, you know, in addition to heavy tactical
    vehicles, medium tactical vehicles are very important to us,
    and so we have extended the period of performance for the
    contract with Oshkosh on those vehicles.
        Senator Baldwin. But can you update us on the status of the
    new line and the supply chain, and whether you believe the new
    vendor will meet the required schedule for production and
    fielding?
        Secretary Wormuth. Senator, I am confident the new vendor
    will meet the schedule, but I am happy to have Mr. Bush, our
    Assistant Secretary for Acquisition, and his team, come and
    brief you in detail on what we are seeing right now with that
    company.
        Senator Baldwin. Okay. The Army routinely submits a budget
    with a request for tactical wheeled vehicles at numbers
    substantially below industry's minimum sustaining rate,
    expecting this committee to make up the difference. For many
    years, I have pressed the Army to adequately fund these
    platforms, and we are here today looking at another inadequate
    budget request.
        Ahead of this year's budget I sent you a letter asking that
    the fiscal year 2025 budget reflect more realistic procurement
    numbers, and again this year, the budget request is
    insufficient. Last week, I asked Secretary Austin to engage the
    Office of the Assistant Secretary of Defense for Industrial-
    Based Policy in analyzing the Army's management of these
    programs.
        Secretary Wormuth, will you work with the Assistant
    Secretary on a plan for future Army budget requests that better
    sustain the industrial base, and can I expect to receive the
    forthcoming Tactical Wheeled Vehicle strategy that is due this
    coming summer?
        Secretary Wormuth. We would be happy to work with the
    Assistant Secretary for Industrial Programs to get you that
    information, Senator. We work closely with that part of the
    Office of the Secretary of Defense on a regular basis, and we
    will work with them to get you the report.
        I would say, you know, one of the challenges that General
    George and I have with the flat Army budget is trying to
    balance, if you will, investment in enduring systems like our
    vehicles and pursuing the ambitious modernization program that
    we have. It is always a challenge to determine how to allocate
    that incremental dollar, and I think to continue to support our
    modernization program, you see us stretching out, if you will,
    some of the investments in the ground vehicles.
        Senator Baldwin. Thank you, Mr. Chairman.
        Senator Schatz. Senator Boozman.
        Senator Boozman. Thank you, Mr. Chair, and Vice Chair, and
    thank you all for being here. We appreciate your leadership
    and, I know, unwavering commitment, not only to our soldiers,
    but also, and as importantly, their families.
        I understand the Coyote unmanned aircraft system was
    developed as a joint urgent operational need, which allowed for
    rapid acquisition. This resulted in some steps of the standard
    process being abbreviated. For example, the total Army
    Munitions requirement for the Coyote Missile is still being
    determined. Without this, it is hard for the Army or industry
    to forecast accordingly and know what to expect in future
    budgets and contracts.
        Secretary Wormuth, what is the Army doing to finalize this
    documentation so that the Army and industry can use it as the
    basis for Coyote's long-term planning and investment?
        Secretary Wormuth. Thank you, Senator. We have been
    relooking our total minimum requirements for munitions and for
    things like the Coyote Interceptor, and I think there is a
    general recognition that, given what we are seeing in Ukraine,
    we need to increase our stockpiles of munitions and counter-UAS
    capabilities. So we are working on that right now. I think
    General George and I both believe that we need to invest more
    in counter-UAS capabilities, which is why you see some of that
    on his unfunded priority list.
        But given that the Chief sets requirements, why don't I let
    him speak to that in particular.
        Senator Boozman. Thank you.
        General George. Yes, the Coyote is a perfect example of
    where we need to head. It has been, you know--we have sent
    users, developers, testers forward, we have made it--as the
    battlefield has changed we have made adjustments. One of our--
    we were going to--we were looking to actually acquire more
    Coyotes. Some of the problem was we couldn't increase
    production because of the continuing resolution and some of
    those changes.
        This is one area, Senator, where I think flexible funding
    in--and I know sometimes that can be a bad word--but within the
    counter-UAS, UAS, and EW (Electronic Warfare) portfolios would
    really help us. The battlefield is changing very, very rapidly.
    And I am talking in days and weeks, sometimes you are lucky to,
    you know, get things changing in a month. But as it changes, we
    need to be able to, you know, go back to, we have the best
    industry in the world, to go back and say, hey, we need to
    change this, we need to up the quantity. Coyote was one of
    those examples.
        And that would also help us, you know, if there is a
    continuing resolutions, if we had that built in, we could make
    those adjustments. And that is what we were faced with last
    fall, and it was tough to make those adjustments in stride.
        Senator Boozman. Very good. The Defense Industrial Base in
    Camden, Arkansas, remains at the forefront of critical
    munitions production for our National defense. We anticipate
    multi-year procurement authority will improve production rates
    in the long term, and send a much-needed demand signal to our
    industry partners.
        Your joint statement also highlights the need for further
    investments in order to ensure that the Nation can scale the
    production of critical munitions and systems to meet current
    and future operations.
        Secretary Wormuth, General George, can you speak to what
    these investments should entail? And again, does the budget
    that is being proposed, does it meet the Army's demand for
    munitions?
        Secretary Wormuth. Thank you, Senator. This budget has over
    $3 billion in it for munitions, because, again, I think there
    is a recognition that we have to build up our stockpiles. So
    that includes money for GMLRS, PAC-3, which we have got the
    multi-year authority for, Javelins, 155 millimeter, you name
    it. And in addition to the $3 billion for the munitions
    themselves, the budget also includes a billion dollars for
    investing in the Army's own organic industrial base, so that
    the various depots, arsenals, and ammo plants can be more
    capable of producing faster and in larger capacities. So I
    think we are really trying to get after it in this budget in
    that area.
        Senator Boozman. Thank you. Madam Chair.
        Senator Murray [presiding.] Thank you. Senator Murphy.
        Senator Murphy. Thank you very much, Madam Chair. Thank you
    both for being here and for your service.
        It sounds like Senator Moran predicted my opening line of
    questioning here. Listen, I think we have made a really bad bet
    on doubling down on Tiltrotor technology that has proved to be
    deadly, and has proved to be wildly expensive, from March 2022
    to November 2023, we had 20 service members die in four
    separate fatal Osprey crashes. This was after the Department of
    Defense said, in February of 2023, that they had fixed the
    problem, the hard clutch engagement problem that was thought to
    be behind earlier crashes.
        They were 99 percent certain that the problem had been
    fixed, and then there were four crashes where 20 more service
    members died. This is in addition to the program being wildly
    expensive. Costs per flying hour have spiked by 22 percent just
    between 2019 and 2020.
        And so the decision to double down on the Tiltrotor
    Program, with a Tiltrotor selection as part of the Future
    Vertical Lift Program, sounds disastrous and wildly costly for
    this committee.
        Reports are that the Tiltrotor bid was twice that of the
    competing bid, and then you have all of this evidence that you
    haven't fixed the safety problems.
        So Secretary Wormuth, can you explain, how the Army can
    justify moving forward with the new Tiltrotor aircraft when we
    can't even figure out how to address the safety issues with the
    existing Osprey? And how we are going to account for a
    Tiltrotor program that is known for its tendency for cost
    escalation? How can you guarantee that this isn't going to
    become just a giant cost suck on this committee as the costs
    escalate in the new Tiltrotor program as they have in the
    Osprey Program?
        Secretary Wormuth. Thank you, Senator. A couple of things
    on that: So on safety, you know, certainly we are concerned
    always anytime we see a helicopter crash or an airplane crash,
    whether it is the Osprey or, you know, we have had some crashes
    of our Apaches. But one of the things I think that the FLRAA
    program will benefit from is over 20 years of safety experience
    with the Osprey and lessons from the Osprey.
        So we will be factoring all of that and learning from all
    of that. And again, no helicopter is perfect. There are
    inherently--you know, there can be challenges, but I think we
    will benefit greatly from the long track record and be able to
    learn lessons in terms of safety from the Osprey.
        More broadly, to your point about costs, again, we looked
    at not just costs when we considered the bids that came in but
    also performance. And so I think we have to weigh that. And as
    you know, ultimately, the GAO found that our decision to go
    with Bell Textron was sound. So we will continue to look very
    closely at cost and we will monitor cost growth, but we also
    need to be looking at performance, and we felt that the Bell
    Textron proposal would give us the performance that we need.
        Senator Murphy. A couple of years ago, the Army's number
    one modernization priority was the Future Attack Reconnaissance
    Aircraft Program. The Army reversed itself, cancelled that
    program, which is going to put us in a position to have to rely
    on the Black Hawk in the short term to do a lot more work. And
    yet this budget request includes only $25 million in Army
    research and development funding for Black Hawk modernization,
    which just doesn't sound right given the fact that now that you
    aren't building a new Future Attack Reconnaissance Aircraft,
    you are going to need to very quickly scale up and modernize
    the Black Hawk.
        So how do we make sure that we invest in the Black Hawk
    Program, in part as a means to balance out what we have lost
    with the cancellation of the FARA (Future Attack Reconnaissance
    Aircraft) Program?
        Secretary Wormuth. Thank you, Senator. One thing the Army
    is doing to--as part of our rebalance of the aviation
    portfolio--is to pursue the reconnaissance requirements in a
    different way, really relying much more on space-based
    sensing--the combination of space-based sensing, existing
    platforms, and things like future tactical unmanned aerial
    systems, and what we were previously calling air-launched
    effects, but really we are now just calling launched effects.
        So inherent in our decisions in the rebalancing is the fact
    that we believe we can meet that requirement in a different
    way. As you point out, we do need to continue to invest in
    Black Hawk, and I think there are things that we could do if
    Congress decided, for example, to give us more money for
    research and development in 2025 for Black Hawk. We could work
    on the fly-by-wire capabilities. We could work on more--doing
    more with the improved turbine engine, which is going to be
    critical not just for Black Hawk but also for Apache. So there
    are projects I think we could pursue. But I would leave it
    there.
        Senator Murphy. Great. Thank you, Madam Chair.
        Senator Murray. Senator Murkowski.
        Senator Murkowski. Thank you, Madam Chairman.
        And welcome. Good to see you, Madam Secretary. General,
    thank you for being here, and your leadership.
        We talk a lot about the various aircraft, the equipment,
    but I think we know that as good as that may be if we fail to
    invest adequately in our soldiers, that is where we fail, that
    is where we have the vulnerabilities. So we have had these
    conversations before about how we really take a whole-of-person
    approach in addressing the physical, the mental, the emotional,
    even the spiritual needs of our soldiers.
        We have had the discussion about conditions in Alaska and
    some of the challenges that present themselves that often
    contribute to mental health struggles. One of the things that
    we have found that is amazing in its effort or its ability to
    uplift morale is this program that we authorized in the fiscal
    year 2023 NDAA (National Defense Authorization Act), and this
    is the Fly Back Home, when particularly a junior service member
    who is maybe in Alaska and calls New York or Maine home, the
    cost of an airplane ticket is prohibitively expensive.
        And so when we put this in place, what we saw was not only
    good, strong usage of it, but excitement about what it did. It
    basically gave people something to look forward to, and in
    terms of a mental health boost, it was really quite
    considerable.
        So General George, I would ask if you would speak to the
    value of such a program for our soldiers; and Secretary, if you
    can then comment as to whether the Army intends to restart the
    Fly Back Program. General.
        General George. Thank you, Senator. And I agree with you
    and your comment up front that our edge is our soldiers, and
    making sure that we are investing in them. We are really proud.
    I think, of a lot of things that we have done, and we have seen
    General Eifler and the 11th Airborne Division up there, has
    informed things across the Army. So they are doing great. And
    first and foremost is they are doing great training up there.
        And you know, we are continuing to invest in that because I
    think that that is critically important, and I know you have
    had an opportunity to see that. What we like to say is that
    every location is unique, and we need to be able to do unique
    things like the Fly Back Home Program, that is very unique, you
    know, given where they are at, and it is helpful for us.
        And I think that we have to look at every installation like
    that a little bit different. I will tell you that Alaska is
    near the top. You know, we offer stations of choice, there is a
    lot of people that want to go up and serve in Alaska, that has
    helped, you know, with us for our recruiting, and I think it
    is, one, it is they want to come up to Alaska and experience
    that, but it is also because they do a really good job of
    taking care of their soldiers and their families, and I think
    it starts there.
        Senator Murkowski. We are trying and we are making some
    headway, but again, it is these little things.
        Secretary, can you comment on whether or not there is any
    intention to restart the program?
        Secretary Wormuth. Certainly, Senator Murkowski. I think
    what I would like to do is, as you know, we have the Fly Home
    Program, we also have the remote condition and austere
    incentive pay for Wainwright and JBER, and have spent, I think,
    over $25 million on that. And then our Vice Chief right now is
    really stepping back, and reviewing our MTOE for the entire
    11th Airborne Division to see if we are investing it the way
    that we need.
        What I would like to do is commit to you to look at the
    cost benefits of restarting the Fly Back Program. We are under
    a flat top line, so every dollar we are constantly in a Peter
    and Paul situation. But I know it was a popular program, and I
    would commit to you that we will look at that, but I would like
    to look at it in the context of some of the other programs that
    we are doing as well.
        Senator Murkowski. And since you raised the MTOE, it really
    does speak to the gaps that we are seeing there with the 11th,
    including the lack of the MTOE, the equipment, to define what
    equipment is appropriate for the Arctic, the lack of the
    division artillery, the lack of the sustainment brigade, the
    lack of an aviation headquarters.
        So I am glad to know that you are reviewing that. I am
    hopeful that we are going to see some progress on this soon
    that this is not something that we are going to be studying for
    a long while. I think we recognize what has been put in place
    with the 11th, the focus on the Arctic strategy, the need to
    emphasize the dominance there.
        But we have to have it all lined up. We just can't have it
    in name only or in title only. I think you both recognize that.
    So I don't know if you can inform me as to timing on what we
    might expect for progress on this.
        General, do you know?
        General George. Yes. We are getting together and having
    these discussions. I just would tell you, Senator, the things
    that I think we need to grow first and foremost with structure,
    is counter-UAS capabilities, counter-UAS batteries. I think we
    need to grow additional integrated air and missile defense, and
    we need to grow some long-range fire.
        So we are obviously looking at it, this total Army analysis
    is something that we are need to do, We did up-gun the aviation
    oversight up there, and added some slots to do that to make
    sure that we are kind of have the right oversight up there with
    that. But I am just putting it in context that if we are going
    to grow capabilities, it would be my recommendation that we
    would grow some of these other things first. I am not saying
    that those aren't all--you know, that aren't important, but we
    would need to grow those other capabilities first.
        Senator Murkowski. We will look forward to working with you
    and getting the updates on this.
        Thank you, Madam Chairman.
        Senator Murray. Thank you very much.
        Thank you, to both of you, for being here today; it is
    great to be here today to talk about what resources the Army
    needs in the coming year and to make sure we are supporting the
    men and women in uniform who keep all of us safe. I want to be
    sure that we deliver the investments your service needs.
        And it is critical we also provide adequate funding for
    agencies across government, because, as we talked about with
    Secretary Austin, the Department of Defense does not operate in
    a vacuum. If we fail to properly fund State and other
    departments, then our Nation is less secure and will end up
    having to spend more money on the Pentagon, not to mention we
    leave families more vulnerable to threats like wildfires,
    pandemics, and Fentanyl, and other crises.
        So with that in mind, I am glad to have you here today, and
    I just want to discuss a few things. And one of them is child
    care. One of the main challenges I hear from Joint Base Lewis-
    McCord in my home State of Washington is that maintaining
    adequate staff for its child development centers is a problem.
    If you don't have staff, they can't provide child care. And
    without safe quality child care, it is really difficult for our
    service members to accomplish their mission requirements.
        Women service members, in particular, report that lack of
    childcare jeopardizes their career opportunities. In fiscal
    year 2024, Senator Tester and I secured $167 million to fully
    fund the Department of Defense's Child Care Initiatives. And I
    am glad you were able to reopen a CDC (Child Development
    Centers) at JBLM (Joint Base Lewis-McCord) in January. However,
    staffing constraints are still preventing it from operating at
    full capacity.
        Secretary Wormuth, have the benefits DOD (Department of
    Defense) offers for childcare workers shown to be an effective
    tool for recruitment and retention?
        Secretary Wormuth. I think the incentives are helping us,
    absolutely, Chair Murray. You know, we offer a recruiting
    bonus. We also have retention incentives. We have been offering
    a 50 percent discount on a worker's first child attending the
    CDC as well. We have also had a pilot opening up commissary
    benefits to our CDC workers. Those are helping us, but----
        Senator Murray. Is there something else we should be doing?
        Secretary Wormuth. I think one of the things that is a big
    challenge for us, is the time it takes to hire civilian
    workers. So figuring out, frankly, to be blunt, how we can make
    USA Jobs more effective, to shorten the time it takes to hire
    civilian workers, that would be----
        Senator Murray. How long does it take?
        Secretary Wormuth. It takes in some cases more than 180
    days.
        Senator Murray. So they take something else?
        Secretary Wormuth. So they take another job. That is right.
    And at places like JBLM, we are at about 70 percent staffing.
    And that is something that is controlled by OPM (Office of
    Personnel Management), it is outside of the Army, but I--and we
    are looking ourselves at what we can do inside the Army to
    speed up civilian hiring, but ultimately USA Jobs is a big
    piece of it.
        Senator Murray. Thank you. General, did you want to add.
        General George. Just because I just was up at JBLM, Senator
    Murray, and obviously been stationed there, so I think every
    location is a little bit different. JBLM is one of the areas
    that we are short probably more than other locations. In a lot
    of areas there, you know, we are well above 90 percent in the
    hiring. So we are dealing with this in different areas, and I
    know that I have read something recently there is more than
    40,000 shortage nationwide, you know, for child care. So I
    think we are competing.
        One of the things that we are looking at again, every
    location is unique and different is how do we also, in addition
    to what the Secretary mentioned as far as commissary, we have
    done that is worked as a privilege up there, giving the money
    off if they have kids, and we are actually offering them
    access, because sometimes it spouses to housing a little
    quicker. Housing is a very--another challenge that is up there.
        Senator Murray. Yes.
        General George. And then I think we also have to look at
    the pay that we are doing. And I don't think we need any help
    with that, but you know, do we--what grade is it that we could
    maybe go up a little bit? But I did want to foot stomp on the
    USA Jobs, and the challenge just with that kind of hiring. It
    is an old system, and I think that that could be updated.
        Senator Murray. Well, you mentioned housing, and that is
    the other thing I hear about all the time. We are still seeing
    issues with mold, with rodents, with the availability of
    suitable and affordable housing, especially at JBLM. I have
    heard as many as 650 service members and their families are
    spending anywhere from 3 to 12 months in a hotel or other
    accommodation while they wait for a home on base or become
    available. These service members and their families need to
    have a safe, reliable, affordable place to live, period.
        So talk to me, Secretary Wormuth about what you are doing
    to ensure housing needs are met at both on and off base.
        Secretary Wormuth. Thank you. We are doing a few things. In
    this year's budget, for example, we have investment for 138 new
    homes, 250 renovations of homes, and $400 million for
    sustainment of existing army-owned family housing, in addition
    to all of the money, the $2.1 billion that we are putting into
    barracks for unaccompanied soldiers.
        We also continue to work extremely closely with our five
    privatized housing partners to make sure that they are
    providing quality housing, to make sure that they have enough
    maintenance workers, you know, to make sure that they are
    taking care of the privatized home. So we absolutely still have
    challenges, Chair, but I think we are trying very hard to
    reduce the problems with mold and long waits for maintenance.
        Senator Murray. General, anything you wanted to add?
        General George. I just would add, Senator. Up there, what
    one of the things that we do that is unique to JBLM is we have
    an office there that does rental agreements to help, because
    again it is a specific problem up there, and you know what the
    housing market over the last several years has gone up there,
    where soldiers don't have to pay you know to get several credit
    checks it is one thing they don't have to put and big deposits,
    so we are doing other things as well, and we are doing that----
        Senator Murray. With the community?
        General George [continuing]. With the community, which
    again, I think that that is what we are going to have to do, is
    tailor you know some of those solutions locally, because the
    truth is that about 30 percent of our, you know, Force lives on
    base, you know, in family housing. So we are going to have to
    work with the local communities really across the country to
    solve this.
        Senator Murray. Thank you. Senator Capito.
        Senator Capito. Thank you. And thank you both, not just for
    your service, but for being here with us today. It is good to
    see both of you again,
        My questions are, first of all, I wanted to ask about
    cyber. Obviously, we are we are facing more cyber threats at
    every level, and in every aspect of our critical
    infrastructure, and from what I understand the Guard is already
    playing a critical role in domestic response to cyber-attacks,
    including through our critical infrastructure Battalion at the
    Army Interagency Training and Education Center in my State of
    West Virginia. This unit supports a number of DOD and DHS
    (Department of Homeland Security) programs.
        Is there a more direct role for the National Guard to play
    in cyber specifically using them as a liaison force between the
    Federal Government, the States, and the local and State
    critical infrastructure? Do you all have--what would your
    response to that be? Yes.
        Secretary Wormuth. Senator, I think what I would say is,
    you know, we try to leverage all of the cyber expertise across
    all three of our components, Active, Guard, and Reserve, and
    certainly there is a lot of great cyber expertise in the Guard.
    I think trying to have a one-size-fits-all program with the
    Guard is challenging, because frankly the level of expertise
    varies from State to State and also, frankly, so you know 85
    percent of our critical infrastructure is in the private
    sector, and so there is a tremendous amount of diversity.
        But I can tell you that I know General Barrett, who is the
    Army Cyber Commander, works very closely with the Guard, to try
    to make sure that we are making the best use of them, and that
    we are also retaining, frankly, that capability which is very
    in demand right now.
        Senator Capito. Yes. General George, do you have a
    response?
        General George. Yes, I just would--and having deployed with
    some of these experts in the Guard, I think what makes them
    very unique when they come into your formations is a lot of
    them work this in their daily jobs.
        Senator Capito. Right.
        General George. And really keep up a skill level which is
    really helpful for us. So we are constantly looking, and we are
    in discussions right now with the Guard on, you know, what
    adjustments that we need to make. I do think that as part of
    our continuous transformation, looking at how we--our cyber
    formations again, I think that is one of the things that has
    made the world much smaller with space and cyber.
        Senator Capito. Right.
        General George. So we are constantly evaluating how we can
    get better in that space.
        Senator Capito. Good. Good. Well, on Friday we had a great
    announcement in Huntington, West Virginia, at Marshall
    University, in Marshall University-West Virginia University
    collaboration. They are friends now, unless they are on the
    football field, is what the bottom line is there. But it was
    the DOD National Center for Excellence for cybersecurity and
    critical infrastructure. They are trying to develop the
    workforce, but it is a really great collaborative effort
    between private sector, academia, the DOD, and the Guard, and
    USCYBERCOM.
        So I think we are moving in a great direction in West
    Virginia, very excited about the potential for that project in
    our home State.
        My other question, my next question is on Army soldier-led
    innovation programs, providing, obviously, weapons to Ukraine,
    illuminated some of our shortfalls, and some of--where we are
    doing really well. And I have been a big supporter of soldier-
    led innovations through the Army DEVCOM's Pathfinder Program,
    and the Accelerating Force Program.
        These programs help to transition our weapons and our tech
    by actually putting it in the hands of our Military and before
    they are--it is actually, as an experimentation type of thing.
    So you can get on-the-ground reactions from folks that are
    going to be using these weapons, what lessons can be learned.
    What is the Army's plan to increase funding for these types of
    soldier-driven innovation programs? And can we get new
    technology solutions into soldiers' hands for experimentation?
    Because I think it will bring great successes to us.
        So General, I don't know if you want to start with that?
        General George. Sure. I am wishing there was more time on
    the clock to talk about this one. So we are doing what we are
    ``calling transformation and contact''. I would love to have
    our team come up here and kind of lay that out what we are
    doing.
        Senator Capito. That would be great.
        General George. What we are doing is exactly what--you
    know, if you infuse a formation with technology and then see
    how they actually use it, and we have the developers that are
    down there that make software adjustments. We have the drones
    that are there and we make adjustments to them. That is what we
    are doing. So we have a brigade that is going to go over to
    Europe. We have a brigade now in the 101st. We have a brigade
    that is out in the Pacific. And they are getting--we are fixing
    their network, we are adding electronic warfare, UAS, counter-
    UAS, all of those capabilities.
        And what this means is we are not going to buy stuff, you
    know, that say, hey, this going to be here with us for 20
    years.
        Senator Capito. Right. Right.
        General George. We are going to innovate exactly what you
    are talking about. I just was down at Stewart, and I know we
    have partnerships with universities in West Virginia, and they
    are anticipating----
        Senator Capito. Right. And we have a facility, yes, in Clay
    County.
        General George [continuing]. They are making their own; as
    an example, they turn what had been a vehicle that was, you
    know, manned they basically turned it into a breaching vehicle
    was completely automated. So I mean these are soldiers that are
    doing these things, they are able to come up with how we can 3D
    print parts that cost $20, and you know, took us 6 months to
    get to actually 3D printing, 16 of them within an hour, and
    they cost 12 cents each.
        So these are soldiers that are doing these things. I think
    that technology has changed that much we are going to have to
    adjust with the times.
        Senator Capito. Well, thank you. And also seems to me--and
    my time is up--but not only is it a cost saving on the
    production, but you are not wasting money on things that may
    not, in theater, actually perform is exactly as intended, or as
    thought could be.
        Thank you all, both, for being here. It is good to see you.
    Thank you.
        Senator Murray. Thank you. Senator Coons.
        Senator Coons. Thank you, Chair Murray. And thank you for
    the opportunity to be with you both today, for your service,
    and for your leadership, Secretary Wormuth and General George.
        I look forward to following up with you, if I can, briefly,
    on three things. One that I may have missed the full
    conversation on, because I have three committee hearings at the
    same time, really grave concerns about Force protection and the
    countering the drone threat. Second, the State Partnership
    Program which I think has shown real benefits in Ukraine and in
    a dozen other countries I have been to in Africa, and Southeast
    Asia, in Central America.
        But first, the Global Fragility Act, 5 years ago President
    Trump signed into law a bill that Senator Graham and I worked
    on for years, to try and come up with a common approach, this
    is modeled on Plan Colombia, and how we took a combination of
    DOD, State Department, USAID over a decade to come up with a
    common approach to dealing with a fragile State that was not
    yet a failed State.
        Colombia, 25/30 years ago was a disaster, it was a mess,
    but it was still salvageable. And so a joint strategy effort
    between DOD, State, and USAID successfully moved it back into
    the column of countries we can work with. We really have
    struggled to get DOD engagement and implementation, and there
    was several years ago a decision made by the lead agency State,
    to prioritize a few countries, Papua New Guinea, Mozambique,
    Coastal West Africa.
        I just met with the Four-Star responsible for AFRICOM
    pressed on the, frankly, deteriorating security situation in
    the Sahel and Coastal West Africa, and would urge you to engage
    in providing even modest resources to Coastal West Africa,
    recognizing that withdrawal or removal of equipment and forces
    from these areas is a sensitive and difficult subject to
    discuss in full here.
        I would welcome your active engagement. I recognize this
    often falls to the bottom of the list, but as we saw in
    Southwest Asia, there are countries that are sort of off our
    list of priority countries until suddenly they are, at great
    expense and at great loss of life.
        So I would be interested in any brief response, Madam
    Secretary, or a chance for a follow-up conversation.
        Secretary Wormuth. Certainly, Senator. Happy to do a
    follow-up as well; briefly I would say I think where the Army
    can be most helpful in that regard is through our Security
    Force Assistance Brigade, you know, which we have one aligned
    to each combatant command. So General Langley works with our
    Security Force Assistance Brigade to try to build
    interoperability, build up the security forces in those
    countries. That is, I think, where we could make the best
    contribution.
        Senator Coons. I am intimately familiar. President Ruto of
    Kenya is here this week for a state visit, he has been a
    tremendous security partner, Kenya generally, in the counter
    al-Shabaab work that is very difficult and dangerous in
    Somalia, but we do not have a comparable platform or plan for
    Coastal West Africa, post-Sahel, and I am very eager to work on
    that.
        I am also concerned about Force protection for our Forces
    who are in FOBs, in Eastern Syria or in Somalia, and just hope
    that you recognize the urgency of this. I was interested in
    hearing Senator Capito's questions about Soldier Led-
    Innovation. We don't have 3 years or 2 years to deploy.
        I saw the Coyote System in a recent visit to Iraq and to
    Jordan, I have seen some of the other options, I just don't
    think we are moving fast enough. What is your sense of what we
    might be able to do to support faster Force protection
    solutions, for very low-tech, easy to deliver drones?
        General George. So I agree with you. And I was having this
    conversation with Senator Collins. I do think we need to move
    faster, and we are doing that. We are basically taking
    everything that we have available and putting it in the Middle
    East, and again it is kind of the--it is the user, what Senator
    Capito was talking about where you actually have soldiers that
    are on the systems, the developers, and the testers that are
    all right there.
        And we have our directed energy that is over, we just
    directed the high-power microwave system that we are doing, is
    going to go over there immediately, because I think we have to
    spin this, a whole bunch faster. We did--you know a lot has
    changed in that work, and that was why it was on the unfunded
    priority list to ask to get, because of what has changed in the
    Middle East since last October.
        And then this is another area, and I know I have mentioned
    this, where I think we have to be more flexible in our funding
    approach, so that when we have something that research is
    working well, and we know we need to procure more of those
    systems, and I can give you examples of certain systems that we
    are doing better, that we wouldn't have to wait, that we could
    do that.
        You know, we could come over and notify the committee, and
    then you know do a certain wait period, and then go ahead, and
    do that. And we would love to work with you on that. But I
    think we have to turn the wheel a lot faster on counter-UAS.
        Senator Coons. Given the Houthis, given the proximity,
    given al-Shabaab, and given where our Forces are, and how they
    are deployed, I am as concerned about Forces in Somalia and
    Northeastern Kenya, as I am about Forces in Iraq and Syria. And
    I hope that that elevates.
        Last, in a sentence, the State Partnership Program, 30
    years' old, I think we have got every one of our State National
    Guards, I think Maine has Montenegro, I think you have got
    Malaysia, or Thailand, and I think you have Gabon, if I am not
    mistaken. We have got Trinidad and Tobago. I have visited SPP
    (State Partnership Program) Partnerships in a dozen countries,
    particularly in the Baltic States, and in Ukraine, where they
    have made an amazing difference. Please continue to support it
    robustly. And I will continue to advocate for that. Thank you
    very much.
        Senator Murray. Thank you. Senator Hoeven.
        Senator Hoeven. Thank you, Madam Chair. Secretary, General,
    thanks for being here, thanks for your service, appreciate you
    both very much.
        Secretary, given the magnitude of challenges we face it is
    critical that the Army National Guard maintain the capabilities
    to integrate seamlessly into the fight. And I know you support
    that. We funded 12 MQ-1C Gray Eagle Aircraft in fiscal 2023,
    which supports one Army Guard Division. I am concerned that
    that is not enough. Will you commit to ensuring parity across
    the Force for the MQ-1C Gray Eagle?
        Secretary Wormuth. Senator Hoeven, our plan with the Gray
    Eagles is we have planned to have 12 companies associated with
    divisions, I think we have about half of those on contract
    right now, and we will--our plan is to have the addition
    completed by the end of this fiscal year.
        We still have to work through what are the criteria for
    stationing those Gray Eagles with our National Guard, and
    General Hokanson and General Jensen will be putting together
    those criteria, and making sure that they are shared with the
    Adjutant's General so that States, you know, have visibility
    into the process as we think through stationing. But that is
    our plan right now for Gray Eagle.
        Senator Hoeven. Okay. Also one of the things that go with
    that, is standing up a schoolhouse in regard to training for
    the Gray Eagle as well. And I have talked to both members of
    the Army and the Guard in regard to doing that because we think
    we have a very good proposal for you in North Dakota that would
    be a very cost-effective way to do it. And so we would look
    forward to discussing that with you, as you stand up this
    mission in the Guard. Okay?
        Secretary Wormuth. Certainly look for to discussing that.
        Senator Hoeven. Thank you, Secretary, I appreciate it.
        General, so we are seeing drones transform the battlefield,
    and certainly Ukraine, other places as well, the Army recently
    canceled plans for several new aviation platforms and seems to
    be rethinking its requirements on the battlefield. What role do
    you envision unmanned aircraft both large and small playing for
    Army in the future, based on what we are seeing in the current
    conflicts?
        General George. Senator, I was going to tag on to your
    previous one and----
        Senator Hoeven. Well, please, do. Go ahead.
        General George. What we were--because it is related, I
    think, to what you were talking about. We are going to need
    unmanned systems in all of our formations. We have been meeting
    with a large group of Tags, and the division commanders had a
    lot of discussions with them about how all of our formations
    are going to have to transform. And we are going to need this
    kind of technology at every echelon, in doing that, and making
    those adjustment, so I think it--not just Gray Eagle, what we
    are going to need is short range, medium range, it is going to
    have to be inside of our formation.
        We did cancel--and I don't know if you are referring to
    like Shadow and Raven; those were 25-year-old systems they were
    great 15 years ago, but what we can't do is keep something in
    the formation that we know is not going to be effective on the
    battlefield. And Amazon, Home Depot, I mean all these--there is
    a lot of great small companies out there that are really moving
    quickly with unmanned systems, and what we are trying to do is
    build a modular open system architecture where we can put
    different systems and sensors on them, and I think that we will
    be able to adapt to that rate of change if take that model.
        Senator Hoeven. Right on. I mean we have got to look at--
    and I know you always do, and I know you are; we have got to
    look at what is going on in the battlefield right now, and the
    whole U.S. drones, large and smaller, are changing the dynamics
    for all of the Services, not just Air Force, or you know, Navy,
    but for you, for the Marine Corps, everybody.
        We do a ton of work in unmanned aviation, in Grand Forks
    North Dakota, a lot of counter-UAS, we have 900 miles of border
    responsibility, we have customs, and border protection co-
    located, with the Air Base there, we have a technology park
    there, we have all the major players in this area, but it is
    not only what we do offensively with these drones it is what we
    do to counter them too.
        And so I would like to invite you to come and see what we
    are doing, but also because we can't be shooting million-dollar
    missiles to take down a $500 drone, and Swarms. We have got to
    get on top of this. We are working very hard on that, and we
    want to work with you to advance that. So I am inviting you as
    well, to come see what we are doing, but to work
    collaboratively on this, not just for the Guard, but for all
    the Services, DOD-wide.
        General George. I am going to try to get up there before it
    is January and February, since I am from the Midwest, so.
        Senator Hoeven. Here is the good news, if you come during
    the nice weather you get nice weather; if you come during the
    cold weather, we have got the best hockey, you have ever seen.
    We will take you the hockey game.
        But again, thanks to both of you for your service.
        Senator Murray. Vice Chair Collins, last questions.
        Senator Collins. Thank you, Madam Chair.
        General, first let me say I was delighted to hear you talk
    about 3D printing and the possibilities that it can contribute
    enormously to our National Defense. The University of Maine has
    one of the largest, if not the largest, 3D printer and has
    printed everything from a boat, to a home, it is just amazing
    what they have been able to do. They are also doing a lot of
    work on ballistic protections for our troops using composites,
    so it is very exciting the work that is going on. And I am glad
    to know that you see the promise as well.
        I want to talk about what I think is--or ask you about what
    I think is one of the unappreciated consequences of the
    supplemental, and that is that the Replenishment funding helps
    to modernize the Army. I think that has been lost in this
    debate, that it gives you better capabilities.
        So General, could you please describe how the replenishment
    funding is helping the Army replace its Legacy weapons with
    more modern capabilities?
        General George. A real quick example, Senator, is 113s are
    very capable vehicles, but we are now moving on, and everyone
    that we have provided, we are now buying MVs. And so we are
    up--you know, we have a better system. The same thing with the
    Bradleys that we have done, and what we are doing to buy, you
    know, a more advanced model. And then the other thing is to--
    for a lot of that, for the supplemental, 80 percent or more of
    it was coming back into our own industrial base, and what we
    are doing right here. So yes, we are not buying any old stuff,
    we are buying new equipment, is what we are getting.
        Senator Collins. And that is a real advantage, manage and
    your point is well taken that the vast majority of the funding
    in the supplemental actually goes to American industrial
    companies, and creates good jobs, so it is important as far as
    sustaining our industrial base and strengthening it as well.
        Secretary, I understand that last month the Department of
    Homeland Security, once again requested emergency support from
    the Military for Southwest Border Operations, and the Pentagon
    is estimating that the cost will be at least $490 million, and
    most of it is going to have to be borne by the Army.
        First question, has DHS, the Department of Homeland
    Security, ever reimbursed the Department of Defense for these
    additional costs that you are bearing, to assist DHS on the
    border?
        Secretary Wormuth. I believe, Senator, that out of, I think
    20 years of supporting DHS we have never been reimbursed. I
    could be wrong on that, but generally they have not reimbursed
    us for the support we have offered, which I think goes to Chair
    Murray's point about the importance of adequately resourcing,
    not just DOD, but other important agencies like DHS.
        Senator Collins. I think it does as well, but it concerns
    me because $500 million is not an inconsequential cost, and it
    means you are going to have to rob some other underfunded
    program in order to meet what is a very legitimate need. It
    seems to me that this is a perfect example of something that
    should have been in the budget request. It is not. Because as
    you point out: this has been going on for many years. Would you
    support an emergency supplemental to cover those costs?
        Secretary Wormuth. Certainly, I think they could be
    considered as part of a supplemental. You know, I do want to
    emphasize that the Army has always answered the call, you know,
    we have been in support of our friends in the Custom and Border
    Patrol, but as you said it is a significant outlay for us, I
    think we have already spent $270 million this year, so a
    supplemental would certainly be helpful for something like
    this.
        Senator Collins. Thank you. And finally, let me just
    reinforce what Senator Coons said about the State partnerships
    with the National Guard. The one with Maine, with Montenegro
    and Maine is applying for another partnership right now, was
    tremendously successful in getting Montenegro prepared for its
    NATO (North Atlantic Treaty Organization) responsibilities. And
    it was just a terrific experience on both sides. So that is a
    program that I hope we will continue to support. Thank you.
        Senator Murray. Thank you. Senator Moran, do you have any
    additional questions?
        Senator Moran. I do. Thank you very much. A couple of
    questions in the realm of those who are departing the Service,
    in my veteran's capacity, the value veterans bring to the
    workforce, there is need for transitioning of service members
    to be appropriately credentialed, and translate their skills
    that they learned in the Military into their next career.
        Secretary, do you think a soldier will be more or less
    hirable after their transition if they have certifications that
    translate a breadth of experience to potential employers?
        Secretary Wormuth. I certainly think helping position our
    soldiers to have credentials and certificates that help them be
    as marketable as possible when they transition, is valuable.
        Senator Moran. And is that happening?
        Secretary Wormuth. Yes. We have, as I am sure you know, a
    credentialing assistance program that we have been piloting, it
    has been wildly successful. I think part of the challenge the
    Chief and I have is putting up some guard rails around that to
    make sure that we can afford it again inside of our flat
    topline, but we are supporting our soldiers in getting
    certifications and credentials.
        Senator Moran. That answer gives me a suggestion that I
    will pursue.
        General George, case on delays, outline the Army's path
    forward on what conditions you need to meet to resume
    operations of horse-drawn caissons at Arlington National
    Cemetery?
        General George. I am going to mention a couple things and I
    am going to turn it over to my ranger buddy here on the right
    because I know she spent a lot of time on this, more than I
    have. But I think we are looking at, Senator, is conditions
    based. I mean we want to do this, well, obviously, the support
    we provide at Arlington National Cemetery is sacred to us, and
    to all of our veterans, and we are trying to stand up this
    capability.
        I think we have the right experts that are on board doing
    that, as well as General Bredenkamp kind of overseeing that
    hiring the right people, making sure--and this, you know, the
    problem we had didn't--you know, wasn't created, it took time.
    And so I think what--the approach that we are taking I think is
    a very good one, very sound, we can come over and talk to you
    about it in detail. But I will turn it over to my----
        Secretary Wormuth. Sure. This is something, Senator Moran,
    we have been working really hard on and it is surprisingly
    complex and challenging. But I--as the Chief said, it is going
    to be several more months before we can offer caisson funerals
    again. And that is because, among other things, we have to buy
    30 more horses, to have enough horses to provide this very
    specialized capability. We have to find the pasture land to
    support those horses.
        We have now, I think, gotten on top of making sure that we
    have the expert veterinary personnel that we need to help us
    care properly for these horses, and the stables, at Joint Base
    Henderson Hall-Myers are going to have to be reconstructed. So
    we have quite a bit of work to do before we can operate that
    particular service, which is so important, safely and
    efficiently; but happy to come talk to you in more detail.
        Senator Moran. Thank you. It does demonstrate that nothing
    is simple. And I appreciate your attention. I think it is a
    really important and meaningful experience for veterans, their
    families, for Military Service and their families. Thank you.
        Final, question total Army analysis provided details of new
    counter-UAS batteries to be employed as division assets; is
    this capability on schedule to be delivered to the initial
    units in fiscal year 2024 and through 2029; and where is the
    Army accepting risk in the development of this capability?
        Secretary Wormuth. Thank you, Senator. And the Chief may
    want to add on this. We are on schedule, you know, as we have
    said throughout this hearing, building up our counter-UAS
    capability, both the systems and the formations to be able to
    perform that function is critical. And so we are on schedule
    right now. I believe that the counter-UAS battery coming to
    Fort Riley is supposed to arrive in fiscal year 2029, and we
    are making it a priority to make sure that we have both the
    equipment that will be needed for that, and also the soldiers
    who can man that.
        Senator Moran. General, this has been a theme for you
    today.
        General George. Sure. I am happy to add something on
    counter-UAS. I think we didn't get an opportunity to talk about
    recruiting and I think that that is the most important thing
    you know, kind of said that in my up upfront statement about
    getting people to come in to and--thankfully, we are we are
    looking a little bit better we are ahead, slightly ahead of
    projections, and we are going to continue to focus on that.
    That is what I think we really need to do, is get the people in
    and to continue to grow, because this is a capability that we
    need for First Infantry Division, and really everywhere. And
    then it is also I will tell you on counter us is something that
    we are going to have to continue to look at capabilities at
    echelon, and what we need to do, and we are going to have to
    continuously transform in that area as well.
        Chairwoman, I won't ask a question, but I will conclude we
    did not talk about recruitment. It is one of the most important
    things on capability of the Army to meet our country's needs. I
    would offer, if there is--if you point me in the right
    direction, one of my goals to help in recruitment, is to
    further expand the availability of Junior ROTC (Reserve
    Officers' Training Corps) in Kansas.
        And if you want to point somebody in my direction to kind
    of help me through that process I would be delighted to help
    find a school or schools that might be interested, and we have
    great Junior ROTC programs at Junction City, and at
    Leavenworth, I would like to see that elsewhere
        Senator Murray. Thank you. Thank you very much.
        Thank you to our witnesses today.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senators may submit additional written questions. We ask
    that you respond to them within a reasonable 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 Hon. Christine Wormuth
                   Questions Submitted by Senator Jon Tester
        Question. Congress provided authority and funding for multi-year
    procurement contracts of several Army munitions including the PAC-3,
    GMLRS, and 155-millimeter artillery rounds. These contracts will to
    provide stability and funding predictability for the industrial base--
    even under tight budget caps. We have been very clear that we expect to
    see: Substantial unit cost savings; industry investments to expand and
    upgrade their facilities; and weapons being delivered on cost and
    schedule.
        Secretary Wormuth, can you give us an update on where you are in
    awarding these contracts? Are they generating savings, and are we
    getting weapons faster?
        Answer. Congress has been instrumental in providing the Army with
    the authority to enter into new multiyear contracts for Patriot
    Advanced Capability 3 (PAC-3), Guided Multiple Launch System (GMLRS)
    and 155mm artillery rounds, which will provide us stability and
    predictability of the supply chain and demand for those munitions.
        The award of the PAC-3 multi-year procurement (MYP) occurred at the
    end of June 2024. The Army anticipates savings of up to 3 percent and
    improved stability in the PAC-3 supply chain resulting from the
    multiyear procurement (MYP) approach.
        The GMLRS MYP contract will be for FY 2024-2027, with an already
    awarded FY 2024 delivery order being modified to become the base for
    the multi-year contract. Proposals are still outstanding and the Army
    anticipates a savings of 2.5%. MYP does not shorten the production
    timeline, however, GMLRS has Advanced Procurement funding, which will
    reduce production lead time from 34 months to 22 months.
        With respect to 155mm artillery ammunition, the Army is executing
    several MYP contracts. Initial MYP contracts for Artillery Munitions
    and components were awarded in FY 2023. Additionally, delivery orders
    were awarded off the MYPs in FY 2024 for the Modular Artillery Charge
    System (MACS) containers, MCAS Load Assemble Pack (LAP), and M1128
    Metal Parts. Delivery orders for the MYP for M1128 LAP are estimated to
    be awarded in 4Q FY 2024 and deliveries are anticipated to begin in
    March 2025. The Army estimates savings ranging from 3% to 11% per
    awarded contract.
        Question. There are no U.S. troops on the ground in Ukraine; but
    the Army supports Ukraine in its fight to repel Russia's invasion by
    training Ukrainian soldiers and supplying major combat systems and
    munitions. The delayed passage of the National Security Supplemental
    forced you to cover a lot of these costs out of hide.
        Secretary Wormuth: How has this impacted funding for other Army
    programs? And how quickly can you ``get right'' now that the National
    Security Supplemental has passed?
        Answer. The Army supported base and contingency requirements like
    Ukraine by prioritizing expenditures. Though operational tempo did not
    reduce, funding executed at a slower rate while awaiting passage of the
    National Security Supplemental. Approximately $557 million of Army's FY
    2024 base funding was directly used in support of Ukraine requirements
    prior to passage of supplemental funding. Over $167 million (of the
    $557 million) impacted major programs resulting in delayed, deferred,
    or descoped facilities repair efforts, supplies, parts, and exercises.
    Examples include:
      --$37.5 million in delayed exercise funding for Saber Strike ($1.5
            million), Combined Resolve ($1 million), and Swift Response
            ($35 million).
      --$106 million in deferred or cancelled supply requisitions.
      --$3.4 million in deferred parts requisitions to maintain Army
            maintenance standards.
      --$20 million in deferred improvements for Jasionka, Poland
            facilities for the expansion of the remote maintenance and
            distribution cell.
        The Army is diligently working to align supplemental funding to
    restore base funding before 30 September 2024. This requires a
    significant amount of labor re-work and coordination, particularly with
    contracts, due to the volume and complexity needed to update the
    contracting and financial records prior to the end of the FY.
        Question. The Army continues to invest in six modernization
    portfolios to build the Army of 2030, and design the Army of 2040. The
    Army completed the Total Army Analysis this year to better align the
    current force structure with these new capabilities. However, some of
    these new battalions are being built around modernization programs that
    are delayed.
        Secretary Wormuth, if there are delays to these modernization
    programs, why is this the right time to cut and adjust force structure?
        Answer. The Army must begin transformation now to ensure we have
    the right capabilities available at the right time for any future
    fight. The Army is refocusing on conducting large scale combat
    operations against technologically advanced military powers. To meet
    these requirements, the Army must generate new capabilities and re-
    balance its force structure. The Army must make adjustments now to set
    conditions to receive equipment as well as MILCON, doctrine, training,
    and force structure. This model worked for MDTF 2 as the Mid-Range
    Capability battery is prepared to receive its equipment and is postured
    to then deploy quickly to the Indo-Pacific.
        This transformation will enable the Army to bring in more than 30
    new capabilities or upgraded systems across six critical modernization
    portfolios to meet requirements under the National Defense Strategy. It
    will also allow the Army to narrow the gap between force structure,
    which was designed to reduce excess, largely unmanned, ``hollow'' force
    structure to build new formations equipped with new capabilities needed
    for large scale combat operations. By bringing force structure and end
    strength into closer alignment, the Army will ensure its formations are
    filled at the appropriate level to maintain a high state of readiness.
        Question. Last year, the Army ordered a safety stand-down after two
    helicopter crashes took the lives of twelve soldiers. We talked about
    this at last year's hearing. Tragically, fiscal year 2024 has proven
    almost as dangerous, with 13 Class A accidents, including three fatal
    ones that killed 9 soldiers and 1 border patrol agent. In response, the
    Army directed an Aviation ``Stand Up'' for additional safety training.
        Secretary Wormuth, Class A aviation mishaps have almost tripled so
    far in fiscal year 2024. Do you have the resources in the fiscal year
    2025 request turn this around?
        Answer. Yes, the President's budget request for FY 2025 fully funds
    Army aviation training to safely build proficiency for individual
    aviators while meeting the requirements of the Joint Force and building
    readiness for large scale combat operations.
        Question. For several years, this Subcommittee has criticized the
    Department for not having a robust plan to defend Guam against high-end
    air defense threats. Now, the Army has finally signed the Memorandum of
    Agreement and recently stood up the Guam Defense System Joint Program
    Office.
        Secretary Wormuth: The Army now has a formal role in the defense of
    Guam. What are the biggest obstacles to achieving success and what can
    Congress do to help?
        Answer. The Army is prepared to support the Joint Team in Defense
    of Guam. The Army, as the materiel developer for the Guam Defense
    System (GDS) and lead for the Joint Program Office (JPO), appreciates
    the help Congress has provided for the defense of Guam. In particular,
    the extension of the H-2B temporary need exemption has had a positive
    impact on the construction capacity on the island.
        The most significant challenge to the delivery of integrated air
    and missile defense capability in Guam is the lack of well-defined
    requirements, which complicates the planning for construction, support
    services, and National Environmental Policy Act (NEPA) requirements.
    These delays have contributed to the Department's decision to
    ``tranche'' the delivery of capability, sequencing materiel deliveries
    to the readiness of tactical sites and operational support facilities.
    Additionally, there is limited availability of existing facilities to
    execute interim requirements. Currently programmed MILCON funding
    covers one of three tranche requirements (399 personnel and 5 of 10
    tactical sites) to achieve an initial operating capability.
        Future cuts or deferred funding to Missile Defense Agency (MDA) GDS
    efforts will limit the full range of capability and capacity to deter
    and defend against aggression and advanced threats from the People's
    Republic of China (PRC).
        The FY2023 NDAA directed that the Integrated Air and Missile
    Defense of Guam effort be managed using the Major Capability
    Acquisition pathway (DoDI 5000.85). The JPO's approach is that the
    components of the GDS will continue to be managed under the acquisition
    pathways in which they were initiated. The JPO will develop an
    Integrated Battle Management layer that ties the Joint component
    systems together. This development effort would be better managed under
    a different acquisition pathway. Congress can help by modifying its
    direction in the FY 2025 NDAA to provide the Department of Defense and
    the Army with maximum flexibility to tailor an acquisition strategy
    that addresses the needs of U.S. Indo-Pacific Command as quickly as
    possible.
                                     ______

                Questions Submitted by Senator Richard J. Durbin
        Question. Rock Island Arsenal plays a critical role in our organic
    industrial base. In recent years alone, the Arsenal has played a role
    in responding to the COVID-19 pandemic, managing the logistics of
    ammunition deliveries to Ukraine, and now housing the world's largest
    3D printer as a hub of innovation. Yet, too often, the Army turns to
    the private sector for its needs rather than leveraging the
    capabilities the service has in house at places like Rock Island.
        How does the Army plan to leverage the capabilities at Rock Island
    Arsenal to shore up the service's needs while increasing workload for
    the Arsenal?
        Answer. The Army is investing in the modernization and expansion of
    Rock Island Arsenal's forging and castings capabilities and capacity.
    The Army is also committed to growing new capabilities at RIA
    especially in the production of components for new systems that are
    coming online using advanced manufacturing. As an example, the Army has
    integrated RIA in the production of the main armament of the M10
    Booker, which recently achieved low-rate initial production. RIA
    produces the cradle and parts for the breach for that cannon. We have
    expanded Rock Island into the testing and ballistic certification of
    aluminum armor received from vendors to help speed the acceptance
    process for our systems. Additionally, we have purchased and are
    installing a thick plate milling capability for aluminum armor that
    will improve the ability to partner with original equipment
    manufacturers to speed the production of components. We are working
    with Defense Logistics Agency to identify candidate components that
    Rock Island may be able to produce that the commercial sector is not
    supporting.
        Question. Rock Island has also helped deliver more than 3,000
    Humvee ambulances through a successful public-private-partnership with
    the Original Equipment Manufacturer.
        Please provide a plan on whether the service plans to procure--
    similar to Humvees--an ambulance variant of the JLTV A2, including
    whether it plans to include such procurement as part of its annual
    budget request and if there will be consideration of Rock Island
    Arsenal to support production of these vehicles similar to the Humvee
    ambulance effort.
        Answer. The Army was unable to incorporate an ambulance variant of
    the JLTV due to payload requirements of the patient compartment
    exceeding rear axle capabilities. Army Futures Command is currently
    developing an Abbreviated Capabilities Development Document for a
    Protected Wheeled Ambulance instead.
        Question. Please provide data that can help illustrate the Army's
    current recruitment and retention needs.
        What are currently the top 15 MOSs that are undermanned or
    difficult to fill?
        Answer. The Army identified 16 MOSs to focus on for recruiting
    priorities for FY 2024 as 11X, 12C, 13B, 13F, 13M, 13R, 14E, 14G, 14P,
    17E, 18X, 19K, 25H, 35W, 68W, and 89D.
        Question. Which of these require security clearances?
        Answer. The following of the Priority MOSs require a security
    clearance: 13B, 13F, 13M, 13R, 14E, 14G, 14P, 17E, 18X, 25H, 35W, and
    89D.
        Question. What are the top 5 MOSs that are most difficult to fill
    that do not require security clearances?
        Answer. The top four Priority MOSs that are most difficult to fill
    that do not require security clearances is 11X, 12C, 19K, and 68W.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
        Question. In its 2021 Arctic Strategy ``Regaining Arctic
    Dominance'', the Army asserts that a Multi-Domain Task Force in Alaska
    is the first step in setting the conditions for success in the Arctic.
    However, in recent years the Army has placed less emphasis on a
    permanent MDTF in Alaska, after directly stating it wanted to do so in
    its strategy.
        Can you please elaborate on the Army's intentions with an MDTF in
    Alaska?
        Answer. The Army is investing in five MDTFs. MDTFs 1, 3, and 4 are
    aligned to the Pacific; MDTF 2 is aligned to Europe; and MDTF 5 is
    service retained for global deployment/employment stationed with XVIII
    Airborne Corps at Fort Liberty, NC. MDTF stationing was driven by
    operational requirements. Operational necessity drives all Army
    stationing decisions. The first step in a stationing decision is to
    consider the operational requirements of the unit. The Army also looks
    at how the unit might benefit from proximity to other force structure.
    For example, NORAD in Colorado has a robust community of experts for
    non-kinetic effects, which MDTF's Multi-Domain Effects Battalion could
    leverage. The MDTF at Fort Liberty is located within the XVIII Airborne
    Corps' and 82nd Airborne Division's footprint, providing robust
    training opportunities to test concepts and develop tactics, techniques
    and procedures.
        The Army must consider the availability of facilities that can
    accommodate the unit and its personnel, meet equipment storage and
    maintenance requirements, meet training requirements, and house cyber
    defense structure. Given the critical need to field MDTF capabilities
    as soon as possible, these facilities must be ready when it is
    projected to activate.
        Geographic proximity of the installations to the theater of
    employment is another important factor, as it facilitates planning
    efforts, staff coordination, and travel. For example, Fort Drum's
    geographic location is advantageous for alignment to the European
    theater.
        Finally, rapid, all-season access to force projection platforms
    including land, air, and rail to deploy MDTF capabilities to theater is
    critical to the utility of the MDTFs to Combatant Commands.
        All of these factors contributed to the decision to station MDTFs
    at Fort Carson and Fort Drum. Regarding Fort Wainwright and JBER, Army
    analysis concluded that these installations did not meet operational
    requirements. MDTF equipment and weapons systems are not Arctic-proven
    and long-term storage in extreme temperatures may damage or degrade
    their useful life, thereby depleting MDTF deployability and readiness.
    Fort Wainwright and JBER also lack adequate facilities to house MDTF
    units, soldiers and equipment; building the facilities would incur up
    to approximately $1B of unprogrammed installation costs for the Army.
    Even if the approximately $1B investment was approved, these new MILCON
    facilities would not be built in time for use when MDTF force structure
    activates. This capability is essential to Army 2030 and must be
    activated as soon as possible.
        The Army needs to judiciously consider investments in housing and
    barracks within a resource constrained environment so that it can
    deliver needed improvements to its large inventory. The Army believes
    it is prudent to preserve the limited excess facilities available in
    Alaska to dedicate to potential future growth for 11th Airborne
    Division.
        Question. Does the Army plan to establish an MDTF aligned to the
    Arctic region or has the Army decided not to field an Arctic-focused
    MDTF?
        Answer. At this time, the capabilities resident in the MDTFs will
    be stationed at: JBLM, Hawaii, Fort Drum, Fort Liberty, and Fort
    Carson. Army does not plan on stationing an MDTF in Alaska. Further,
    because MDTFs strengthen deterrence, the Army will be exploring
    opportunities for MDTF elements to be stationed episodically, or
    perhaps permanently, in key theaters in future years.
        Question. Army units at both Joint Base Elmendorf-Richardson and
    Fort Wainwright are in desperate need of larger amounts of funding to
    sustain, repair, and modernize facilities. In some of the worst cases,
    there is actually water leaking into company ops facilities that has
    forced Soldiers to set tarps up over their workspaces to protect their
    equipment. In Alaska, the need for Facilities Sustainment, and
    Restoration and Modernization (FSRM) funding is exacerbated because
    construction costs a lot more and facilities deteriorate more quickly.
    I know that the budget request fully fills FSRM for barracks projects.
    However, the budget request overall is a decrease in funding for FSRM.
        Is a reduction in FSRM funding appropriate given the Army's backlog
    of projects?
        Answer. In a resource constrained environment, the Army had to make
    difficult funding choices in the facilities investment portfolio. While
    the Army proposed a small decrease in FSRM funding in the FY 2025
    request compared to the amount of funding appropriated in FY 2024, the
    FY 2025 request nonetheless reflects an increase over Army's FSRM FY
    2024 request. In the FY 2025 request, the Army increased sustainment
    across the board, and increased Barracks Restoration and Modernization
    and Military Construction resulting in an overall increase in facility
    investments of roughly $1B over the FY 2024 request. The requested
    funding can help address deferred maintenance and repair. For FSRM, the
    Army prioritized barracks, resulting in less FSRM funding for
    operational facilities. However, the Army continues to maintain
    relatively high levels of facility Sustainment funding for all facility
    types, with discretion given to local installations to respond to
    priority maintenance and repair needs to address situations such as
    those found at Army installations in Alaska.
        Question. The President's budget request includes $1.1 billion for
    marketing and advertising, a 10% increase from the previous year, in
    order to more effectively reach its recruiting goals for which it fell
    short by 15,000 recruits in 2022 and short by 10,000 in 2023.
        Can you please describe what the additional 10% increase will be
    used for?
        Answer. The Army requested a marketing budget increase for FY 2025
    to purchase additional media. Additional media increases impressions
    and awareness, leading to an increase in engagement with prospects and
    leads. Recent RAND studies on marketing investments and activities for
    the Army indicate it will raise awareness and potentially increase
    contracts.
        Question. Can you provide an update on the current outlook for Army
    recruiting in 2024?
        Answer. As of July 1st, the Army is on track to meet the FY 2024
    recruiting goal of 55K accessions contracts and 5K of applicants into
    the delayed entry pool.
                                     ______

              Questions Submitted by Senator Shelley Moore Capito
        Question. Given that each COMPO 1 division has an unmanned MQ-1C
    Gray Eagle unit, what is the Army's plan to ensure fielding of UAS
    capabilities to each Army National Guard division so they are not at a
    disadvantage while training and deploying alongside active duty
    counterparts?
        Answer. The Army plans to field a variety of UAS capabilities
    across all COMPOs to meet growing requirements. The Army will field the
    MQ-1C Gray Eagle Unmanned Aircraft Systems (UAS) to the Army National
    Guard (ARNG) as directed by Congress with initial fielding in FY27. The
    Army does not have a validated requirement to field MQ-1C Gray Eagles
    throughout ARNG Divisions and current Army MQ-1C force structure
    provides the depth necessary to support divisional requirements across
    all COMPOs.
        Question. With respect to the ongoing discussions about
    establishing an Electronic Warfare Center of Excellence for the Army,
    have any decisions been made to determine the location for this Center
    of Excellence.
        Answer. The Army has not made a decision on creation of an
    Electronic Warfare Center of Excellence and has not begun analysis for
    a location should the determination be made to create an EW CoE. Any
    stationing decisions will be driven by operational requirements and
    executed IAW statutory requirements.
        Question. If so, what is the proposed location?
        Answer. The Army has not made a decision on creation of an
    Electronic Warfare Center of Excellence and has not begun analysis for
    a location should the determination be made to create an EW CoE.
        Question. If not, please share any locations under consideration.
        Answer. The Army has not made a decision on creation of an
    Electronic Warfare Center of Excellence and has not begun analysis for
    a location should the determination be made to create an EW CoE.
        Question. Would the Army consider housing this Center of Excellence
    at a facility that is not part of any U.S. Army installation?
        Answer. The Army has not made a decision on creation of an
    Electronic Warfare Center of Excellence and has not begun analysis for
    a location should the determination be made to create an EW CoE. Any
    stationing decisions will be driven by operational requirements and
    executed in accordance with statutory requirements.
        Question. What are the defined roles that United States Army Cyber
    Command has designated for Army National Guard cooperation in the
    protection of critical infrastructure or other cyber missions?
        Answer. The National Guard is a critical enabler of cyber
    operations for the Department of Defense. For the Army, the National
    Guard generates forces for the National Guard's 91st Cyber Brigade and
    11 Cyber Protection Teams arrayed across more than 30 states. They
    bring unique skills and backgrounds to mitigating cyber threats and are
    a strategic asset to Army Cyber Command and U.S. Cyber Command. State-
    organized fusion centers offer opportunities for the Guard to
    coordinate between state, local, and Federal partners, as well as with
    private industry. In addition, Army Cyber Command is developing a
    Commander's Estimate to secure Army critical infrastructure in
    accordance with FY 2022 NDAA Section 1505 (Public Law 117-81) while
    looking for ways to leverage the Army National Guard's unique
    capabilities. The Army looks forward to working with U.S. Cyber Command
    on additional areas where the Army National Guard can bring further
    competitive advantages to the joint force in cyberspace.
        Question. What is the status and current strategy for the Launched
    Effects program?
        Answer. The ``Air Launched Effects'' requirement was validated in
    May 2020 to enhance the Army's capability in extending sensing and
    lethality from the Brigade to the Corps level. This program is designed
    to be launched from air, ground, and maritime platforms, providing
    versatile options for Commanders.
        Currently, Program Executive Office (PEO) Aviation is focused on
    developing Short Range, Medium Range, and Long Range Launched Effects
    tailored for both ground and air maneuver formations. These
    developments are crucial in ensuring Commanders have the necessary
    tools to maintain strategic advantages across all levels of operation.
        Our Science and Technology efforts are simultaneously maturing key
    enabling technologies to boost the effectiveness and survivability of
    these systems. We are particularly concentrating on advancements in
    payloads and launch platforms to ensure the highest level of
    operational efficiency and reliability.
        Key experimentation events, such as Project Convergence and the
    Future Vertical Lift Cross Functional Team's Experimentation
    Demonstration Gate Event (EDGE), play a critical role in this process.
    These events emphasize autonomy, platform behavior, launchers, and
    extended network requirements, ensuring that our Launched Effects
    program is robust and capable of meeting its strategic objectives.
        Question. Will increased resources for this program result in the
    cancellation of any current developmental programs, including turbojet-
    powered loitering munitions?
        Answer. The increased resources for the Launched Effects program
    resulted from the Aviation Investment Rebalance, which included the
    cancellation of the Future Attack Reconnaissance Aircraft program. It
    will not result in the cancellation of any current developmental
    programs.
                                     ______

                 Questions Submitted to General Randy A. George
                   Questions Submitted by Senator Jon Tester
        Question. Last year, the Army ordered a safety stand-down after two
    helicopter crashes took the lives of twelve soldiers. We talked about
    this at last year's hearing. Tragically, fiscal year 2024 has proven
    almost as dangerous, with 13 Class A accidents, including three fatal
    ones that killed 9 soldiers and 1 border patrol agent. In response, the
    Army directed an Aviation ``Stand Up'' for additional safety training.
        General George, what will this additional training provide to Army
    pilots, and how will it help?
        Answer. The additional mandatory training will have an impact to
    curtail aviation incidents by enhancing aviation units' focus on safety
    in general and on specific aviation maintenance and aviator training to
    address emerging issues we suspect are contributing factors in recent
    incidents. After completion of the Aviation Safety Stand-Up, reducing
    the rate of aviation accidents in the future requires a continuous
    effort to improve the understanding of operational risk within Army
    aviation formations, increase the safety margins of Army aircraft where
    possible through materiel solutions, and address a known decrease in
    the experience levels of the aviation force due to shortages of mid-
    career aviation warrant officers. Rebuilding experience in the aviation
    force will take time, the shortage did not develop overnight, and we
    cannot expect to fix it overnight. To mitigate the impact the Army
    continues to offer the Aviation Bonus to retain our most experienced
    and skilled pilots with 3- to 5-year contracts ranging from $30,000 to
    $35,000 per year. Additionally, the Army will continue to drive down
    risk in aviation operations and training through ongoing modernization
    of Army aircraft, reviewing and revising the aviation training
    strategy, and sharing lessons learned across the Army aviation force
    and with our sister services.
        Question. For several years, this Subcommittee has criticized the
    Department for not having a robust plan to defend Guam against high-end
    air defense threats. Now, the Army has finally signed the Memorandum of
    Agreement and recently stood up the Guam Defense System Joint Program
    Office.
        General George: The Guam Defense System includes platforms from
    other Services and Missile Defense Agency. How is the Army working
    across the joint force to consolidate and prioritize future investments
    when they don't own the systems?
        Answer. While the Army supports the Joint Team, the Joint Program
    Office (JPO) not owning the Service and Missile Defense Agency Guam
    Defense System (GDS) elements is a Department of Defense (DoD) level
    synchronization challenge. The Guam Defense System architecture is made
    up of multiple systems from across the DoD. Each of these systems
    brings existing air and missile defense capability to the warfighter
    optimized for their specific mission set. The JPO will work with these
    platforms to ensure clear interface definitions exists, evaluate where
    capability shortfalls may reside between systems, define and prioritize
    investment recommendations across the Services and with the DoD based
    on these shortfalls, and advocate with the Office of the Secretary of
    Defense for resources as appropriate.
        To enable these technical and programmatic discussions, the JPO
    will be staffed with senior technical and programmatic representatives
    from each Service that has a role in the GDS to both represent Service
    equity and advocate for the JPO's initiatives within their Service.
        For military construction and interfacing with the Territory of
    Guam, the Deputy Secretary of Defense established the Guam
    Synchronization and Oversight Committee (GSOC). The GSOC is a Service-
    coordinating governance body, chaired by the Under Secretary of Defense
    for Acquisition and Sustainment and the Under Secretary of the Navy
    that synchronizes logistics, environmental and infrastructure planning,
    and community support programs to develop and deliver new capabilities
    on Guam. In terms of investment, the GSOC ensures appropriate resources
    are programmed and deconflicted by the DoD Components to meet the
    operational requirements. The JPO is integrated into the body and will
    leverage their efforts to synchronize materiel deliveries with site
    readiness.
        The JPO will also eventually take on the task of synchronizing
    joint doctrine, organization, training, leadership and development,
    personnel, facilities, and policy (in addition to its materiel focus).
    This will align the joint force intent on how it will operate, sustain,
    and secure the GDS with our synchronized development and delivery
    strategy.
        Question. The Army continues to invest in six modernization
    portfolios to build the Army of 2030, and design the Army of 2040. The
    Army completed the Total Army Analysis this year to better align the
    current force structure with these new capabilities. However, some of
    these new battalions are being built around modernization programs that
    are delayed.
        General George, how are you adapting the new TAA force structure
    elements when several of the modernization portfolios are behind
    schedule, and what are the budget implications?
        Answer. The TAA process is an annual process and is designed to
    continually assess and synchronize force structure changes with
    modernization delivery schedules. We have the flexibility to adjust
    activation dates to account for delays or accelerations in productions
    and our continual assessment of risks.
        The Army faces a range of fiscal challenges today and in the
    future, including its efforts to transform while maintaining current
    readiness. The current budget request seeks to set the Army on a
    sustainable strategic path to achieve the required capacity,
    capabilities, and readiness to win our Nation's wars--both now and in
    an unpredictable future. The Army requests the support of Congress for
    on-time and full year Defense and Military Construction appropriations.
    We need predictable, adequate, sustained, and timely funding.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
        Question. The Army's 2021 Arctic Strategy emphasizes the need to
    dominate in the Arctic. I applaud the Army's effort to lean into this
    region. However, the Eleventh Airborne Division--the Army's premier
    Arctic-capable force--continues to operate in and around the Arctic
    despite several major administrative challenges. The major outstanding
    gaps include the lack of modified tables of organization and equipment
    that define what equipment is appropriate for Arctic, the lack of
    Division artillery, the lack of a sustainment brigade, and the lack of
    an aviation headquarters.
        Can you clarify the Army's plans for the Eleventh Airborne
    Division? Will this unit continue to be Arctic focused or will its role
    be expanded?
        Answer. The 11th Airborne Division is essential in the Arctic and
    remains Arctic-focused at this time. The Army is developing doctrine,
    training, and equipment to meet the unique requirements of cold
    weather, mountainous, and high-altitude environments. As we develop
    Army capabilities, this key terrain remains an important part of our
    focus on the Pacific theater and around the world.
        Question. What is the anticipated timeline on progress to assign or
    stand up division artillery?
        Answer. The Army's process for considering future force structure
    changes is called Total Army Analysis (TAA). During every Total Army
    Analysis cycle the Army determines the optimal force mix to meet
    strategic requirements within resource constraints. All Army
    capabilities at all echelons are modeled and evaluated during each TAA
    cycle to ensure that resources are distributed to support prioritized
    strategic requirements. The 11th ABN has a unique mission-set and is
    different from other divisions as evident by its equipment
    requirements. In the most recent TAA, TAA 25-29, the Army decided to
    not establish a sustainment BDE but is focused on growing other
    capabilities critical to the 11th ABN mission. The Army continues to
    conduct further analysis on mission, structure, and resources required
    to support combatant commanders' demand.
        Question. What is the anticipated timeline on progress to assign or
    stand up a sustainment brigade?
        Answer. The Army's process for considering future force structure
    changes is called Total Army Analysis (TAA). During every Total Army
    Analysis cycle the Army determines the optimal force mix to meet
    strategic requirements within resource constraints. All Army
    capabilities at all echelons are modeled and evaluated during each TAA
    cycle to ensure that resources are distributed to support prioritized
    strategic requirements. The 11th ABN has a unique mission-set and is
    different from other divisions as evident by its equipment
    requirements. In the most recent TAA, TAA 25-29, the Army decided to
    not establish a sustainment BDE but is focused on growing other
    capabilities critical to the 11th ABN mission.
        The Army continues to conduct further analysis on mission,
    structure, and resources required to support combatant commanders'
    demand.
        Question. What is the anticipated timeline on progress to assign or
    stand up an aviation headquarters?
        Answer. The Arctic Aviation Command activates on 01 July 2024. This
    is a tailored capability to ensure Aviation operational risk mitigation
    and training oversight of two active component Aviation battalions in
    Alaska.
        Question. What is the anticipated timeline to update the Eleventh
    Airborne Division's MTOE?
        Answer. The Army recognizes the unique equipment demand associated
    with serving and operating across the Arctic. The Vice Chief of Staff
    of the Army is leading an Army Requirement Oversight Council (AROC) to
    validate the personal (uniforms, skis, snowshoes) and organizational
    equipment (CATVs, snow machines, tents, heaters) required to ensure our
    Soldiers have what they need to accomplish the mission in an Arctic
    environment. Upon completion of the Army Requirements Oversight Council
    process, the Army will develop and produce Military Table of
    Organization and Equipment (MTOE) and field new equipment as resources
    allow.
                                     ______

              Questions Submitted by Senator Shelley Moore Capito
        Question. What are the defined roles that United States Army Cyber
    Command has designated for Army National Guard cooperation in the
    protection of critical infrastructure or other cyber missions?
        Answer. The National Guard is a critical enabler of cyber
    operations for the Department of Defense. For the Army, the National
    Guard generates forces for the National Guard's 91st Cyber Brigade and
    11 Cyber Protection Teams arrayed across more than 30 states. They
    bring unique skills and backgrounds to mitigating cyber threats and are
    a strategic asset to Army Cyber Command and U.S. Cyber Command. State-
    organized fusion centers offer opportunities for the Guard to
    coordinate between state, local, and Federal partners, as well as with
    private industry. In addition, Army Cyber Command is developing a
    Commander's Estimate to secure Army critical infrastructure in
    accordance with FY 2022 NDAA Section 1505 (Public Law 117-81) while
    looking for ways to leverage the Army National Guard's unique
    capabilities. The Army looks forward to working with U.S. Cyber Command
    on additional areas where the Army National Guard can bring further
    competitive advantages to the joint force in cyberspace.
        Question. Given that each COMPO 1 division has an unmanned MQ-1C
    Gray Eagle unit, what is the Army's plan to ensure fielding of UAS
    capabilities to each Army National Guard division so they are not at a
    disadvantage while training and deploying alongside active duty
    counterparts?
        Answer. The Army plans to field a variety of UAS capabilities
    across all COMPOs to meet growing requirements. The Army will field the
    MQ-1C Gray Eagle Unmanned Aircraft Systems (UAS) to the Army National
    Guard (ARNG) as directed by Congress with initial fielding in FY27. The
    Army does not have a validated requirement to field MQ-1C Gray Eagles
    throughout ARNG Divisions and current Army MQ-1C force structure
    provides the depth necessary to support divisional requirements across
    all COMPOs.
        Question. Has the war in Ukraine changed the Army's concept for
    unmanned aircraft systems (UAS) at the division level--and if so, in
    what ways?
        Answer. The Army is closely monitoring the ongoing conflict in
    Ukraine and continually reassessing its requirements to ensure that
    American Soldiers remain the best led, trained, and equipped in the
    world. The observations from the conflict have reinforced several key
    principles in our approach to unmanned aircraft systems (UAS) at the
    division level.
        Firstly, Commanders need the capability to engage the enemy on
    their own terms and avoid being caught off guard. Uncrewed assets are
    critical in achieving this goal by making initial contact with the
    enemy, thereby offloading risk from human soldiers to machines.
        Despite the advancements in technology, we will never rely solely
    on it for our missions. The human element remains essential,
    particularly in the Human-Machine Interface, or ``manned- unmanned
    teaming.'' This concept leverages the unique strengths of humans--such
    as intelligence, intuition, audacity, courage, decisionmaking,
    perception, and natural language recognition--alongside the
    capabilities of machine AI, including speed, data analysis, and
    objectivity.
        Additionally, we must always operate with the understanding that we
    are under constant observation by enemy systems. This requires
    effective cover and concealment to avoid visible detection, reducing
    our electromagnetic footprint to mitigate electronic warfare threats,
    and employing dispersion tactics to enhance survivability.
        To address these challenges, divisions need organic capabilities
    that provide persistent reconnaissance and security, especially in
    environments where communications may be degraded.
        The lessons learned from the war in Ukraine have underscored the
    importance of these principles and highlighted the need for adaptable
    and resilient UAS strategies at the division level.
        Question. If UAS were fielded to Army National Guard divisions,
    which platform would be the most likely choice?
        Answer. The Army will field the MQ-1C Gray Eagle Unmanned Aircraft
    Systems (UAS) to the Army National Guard (ARNG) as directed by Congress
    with initial fielding in FY 2027. The Army plans to field a variety of
    UAS capabilities across all COMPOs to meet growing requirements to
    include Short-Range Reconnaissance (SRR), Medium-Range Reconnaissance
    (MRR), Long-Range Reconnaissance (LRR), Aerial Extended Range Sensing,
    Aerial Tactical Network Extension, and Medium and Long Range Launched
    Effects.

                              SUBCOMMITTEE RECESS

        Senator Murray. The Defense subcommittee will next
    reconvene, on Tuesday June 4 at 10 a.m., for a classified
    hearing on space-related matters.
        With that, the subcommittee stands and recess.
        [Whereupon, at 11:30 a.m., Tuesday, May 21, the
    subcommittee was recessed, to reconvene at 10 a.m., Tuesday,
    June 4.]

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2025

                                  ----------

                             TUESDAY, JUNE 18, 2024

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10:03 a.m., in room SD-192, Dirksen
    Senate Office Building, Hon. Jon Tester (chairman) presiding.
        Present: Senators Tester, Baldwin, Shaheen, Murphy, Coons,
    Collins, Murkowski, Moran, Boozman, and Capito.

                             DEPARTMENT OF DEFENSE

                          National Guard and Reserves

    STATEMENT OF GENERAL DANIEL R. HOKANSON, CHIEF OF THE
                NATIONAL GUARD BUREAU

                    OPENING STATEMENT OF SENATOR JON TESTER

        Senator Tester. I call this hearing to order. Good morning.
        And let me begin by welcoming our witnesses. Thank you all
    for joining us to discuss the fiscal year 2025 budget
    priorities.
        General Anderson, welcome. Congratulations on your new
    command. And I think the entire committee knows that all the
    tough questions go to you. Okay, just because.
        Look, being a member of the Guard or Reserves is a serious
    commitment. These service members have careers in the civilian
    world, and they frequently put those careers on hold, often at
    a moment's notice, to be able to serve this country.
        Whether at the Montana International Guard Base in Great
    Falls, which was just selected for delivery of the new C-130Js,
    or any of our other critical Bases around this country, Guard
    and Reserve units fill critical missions including logistics,
    the State Partnership Program, and responding to wildfires, and
    other disasters at home, just to name a few.
        Providing our guardsmen and reservists the best possible
    training and equipment, just like their active-duty
    counterparts, is a national security imperative. Our Guard and
    Reserve units must seamlessly integrate with the rest of the
    Joint Force if the Military is going to accomplish its mission.
    You are doing this while dealing with ongoing recruiting
    challenges, as well as the yearly and inexcusable disruption
    caused by needless threats of a Government shutdown or
    continuing resolution.
        I want to hear what you are doing, and what you recommend
    for us to do to take care of the families and make sure that
    our Guardsmen and Reserves have the support and the protections
    that they need.
        Once again, I want to thank the witnesses for their
    testimony today. Especially want to thank General Hokanson, and
    General Daniels, and Admiral Mustin, for their distinguished
    service to this country. We appreciate it very, very much.
    Congratulations on your upcoming and well-deserved retirements.
        Susan will be coming shortly, but since she is not here, I
    will just tell you, you are all welcome to retire in Montana if
    you so choose. Okay.
        With that, I think we will start the opening statements.
    When Vice Chair Collins gets here, we will suspend and go to
    hers, if she so chooses.
        So, we will start with General Hokanson.

                SUMMARY STATEMENT OF GENERAL DANIEL R. HOKANSON

        General Hokanson. Chairman Tester, and esteemed Members of
    the Subcommittee, this is my final testimony as the 29th Chief
    of the National Guard Bureau. It has been the honor of my life
    for Kelly and I, and our Senior Enlisted Adviser, Tony
    Whitehead, and all of Team 29, to represent the Soldiers,
    Airmen, and families of the National Guard. I am proud of their
    service and sacrifices, and I am grateful for this
    subcommittee's efforts and support.
        I would also like to thank the subcommittee for robust and
    reliable NGREA (National Guard and Reserve Equipment Account)
    funding that supports our overall readiness. Our Nation's
    investment in the National Guard comes at a pivotal moment. Our
    strategic competitors are seeking advantages in every domain.
    If we are to compete and, if necessary, prevail in combat, we
    must invest in our people. Specifically, our people include our
    pilots, maintainers, and support personnel working in our
    fighter squadrons.
        As a recent RAND Study concluded, many have nearly doubled
    the experience of their active counterparts, and we operate our
    aircraft at significantly less cost, providing capability and
    capacity we must retain at a time when the global demand for
    fighters grows ever louder.
        Pilots and maintainers cannot be rapidly replaced or
    regenerated. Maintaining all 25 existing Air Guard Fighter
    Squadrons is essential to keep pace with global demands.
    Additionally, the cap on active Guard and Reserve positions and
    a Federal Technician Program that is no longer competitive in
    today's economic environment, must be addressed to ensure we
    have the full-time personnel required to ensure our formations
    are predominantly part-time Soldiers and Airmen, remain
    deployable, sustainable, interoperable, and ready.
        Meanwhile, every member of our Force must be medically
    ready to fight and win our Nation's wars, or respond to our
    communities in the time of need. However, not all Guardsmen
    have consistent access to healthcare. All National Guard and
    Reserve component service members, regardless of status, need
    medical and dental health care benefits. This is a matter of
    addressing affordable access, a matter of recruiting and
    retention, and a matter of duty to the Guardsmen who serve and
    sacrifice for our Nation. When we ask them to step on the
    field, we have to make sure they are medically ready to play
    their position.
        The National Guard is a dynamic operational Force that is
    integral to the success of the National Defense Strategy, and I
    will continue working with the subcommittee to build the
    combat-capable National Guard our country needs.
        With your continued help, we will keep our promise to
    America; a promise to be always ready, always there.
        Thank you for your time, your friendship, and your support.
    I look forward to your questions.
        [The statement follows:]
                Prepared Statement of General Daniel R. Hokanson
        Chair Tester, Ranking Member Collins, and esteemed members of the
    Subcommittee, thank you for the opportunity to testify on behalf of the
    Soldiers, Airmen, civilian teammates, and families of the National
    Guard.
        As this is my final testimony before this Subcommittee as the 29th
    Chief of the National Guard Bureau, I want to thank you for your
    enduring support of our National Guard. Your investment in the National
    Guard has built a capable and professional operational force that is
    vital to the Joint Force and our American communities in times of
    crisis. Every day we advance the Department of Defense's (DoD)
    priorities and support the National Defense Strategy with ready,
    trained, and interoperable units. I would also like to acknowledge the
    support of our National Guard families and our National Guard
    employers; they are a critical component of our success.
        During my tenure as Chief, National Guardsmen have been
    continuously engaged around the world. Their missions included COVID;
    multiple disasters; civil unrest; election integrity; the southwest
    border; combat operations in Iraq, Afghanistan, and Syria; support to
    our Combatant Commanders around the globe; and security cooperation
    support to more than 100 partner nations, including Ukraine. Support
    from this Subcommittee and your Congressional colleagues has helped
    make this possible. Thanks to your efforts, the National Guard has seen
    marked improvements in the quality of life of our Soldiers, Airmen, and
    families, greater visibility of our role in the Joint Force, and a
    stronger position to face the challenges ahead.
        The 2025 Department of Defense budget request makes responsible
    choices to prioritize operational readiness and take care of people,
    continuing to build a Joint Force that is lethal, resilient,
    survivable, agile, and responsive. However, we still face hurdles that
    require your leadership. Unpredictable and inconsistent funding--
    particularly continuing resolutions-- reduce our buying power and
    negatively impact our strategic readiness and modernization. If we fail
    to modernize our equipment and force design adequately, we increase the
    risk of sending America's sons and daughters into large-scale combat
    operations with equipment and formations that may not be fully
    interoperable with the active duty forces we serve alongside.
        These are not insurmountable challenges, but they represent risks
    and vulnerabilities at a time when our strategic competitors are
    looking to exploit any vulnerability. I look forward to working with
    this Subcommittee to address these challenges and create a better
    environment for our National Guardsmen and, as a result, a stronger
    Joint Force.
        My final objective in my term as Chief is to leave the next
    leadership team with an empowered, professionalized force that is
    manned, trained, and equipped to keep our promise to America--a promise
    to be ``Always Ready, Always There.'' With this Subcommittee's
    continued support, we will keep that promise.
                             a promise of readiness
        The primary purpose of the National Guard is fighting and winning
    our Nation's wars. As the combat reserve of the Army and the Air Force,
    and a community-based force that also supports our Nation's communities
    in times of need, we are tasked with a great responsibility.
        In 2023 alone, the National Guard served the equivalent of nearly
    16 million days. This included more than nine million days overseas
    supporting Combatant Commanders, conducting peacekeeping missions, and
    deterring strategic competitors and adversaries. Meanwhile, our
    Guardsmen, in both Federal and state duty statuses, conducted homeland
    defense operations, held training exercises, and responded to disaster
    events in the 50 states, three territories, and the District of
    Columbia. National Guardsmen saved 476 lives, distributed hundreds of
    thousands of meals and bottles of water, and cleared more than 1,500
    miles of roadway in response to disasters. Whether it's at the request
    of the Combatant Commanders or our Nation's governors, we have never
    missed a mission.
        I would like to thank the Subcommittee for recognizing the National
    Guard's vital role in our national security, as evidenced by the
    elevation of the Vice Chief of the National Guard Bureau to a four-star
    position in the 2024 National Defense Authorization Act (NDAA). This is
    not only a symbol of the National Guard's integral role in the Joint
    Force, but an act of empowerment and advocacy for the National Guard at
    the highest levels of the defense enterprise.
        We must continue to build on that Joint Force integration for our
    strategic readiness. Considering the reemergence of strategic
    competition and increasing frequency of severe weather across our
    Nation, we must ensure the National Guard's combat and response
    capabilities reflect the challenges of the future. We cannot be fully
    operationally ready for the fight of tomorrow with equipment, training,
    and formations that are not deployable, sustainable, interoperable, and
    ready. Manpower is a critical enabler of operational readiness and our
    ability to deliver capability against our strategic competitors. In the
    current strategic environment, it is imperative to fully fund National
    Guard personnel, training, exercises, equipment, and recruiting to be
    strategically ready for potential large-scale combat operations.
    Congress's support of the FY 2025 President's Budget is necessary.
        Mission readiness takes on many forms. For example, the Air
    National Guard has a 28-year history of delivering important space
    capabilities overseas and here at home through seventeen unit-equipped
    space squadrons--including many critical, no-fail missions for the U.S.
    Space Force. As both my predecessor and I have advocated, I believe
    keeping these formations in the National Guard will have the least
    impact to strategic and operational readiness, lowest risk to mission,
    and is the most cost-effective solution.
        Our National Guard must be fully modernized, integrated, and
    resourced to fulfill our role as the combat reserve of the Army and the
    Air Force. That includes maintaining all twenty-five existing Air Guard
    fighter squadrons. Every one of our squadrons is essential to keep pace
    with global demands, deter our adversaries, and--if necessary--prevail
    in conflict. A 2024 RAND study, Active and Reserve Component Force Mix
    Considerations for the Air Force, found that aircraft in the reserve
    component cost significantly less to operate and support than in the
    active component, and shifting F-35 aircraft to the reserve component
    earlier would be a way to avoid losing large numbers of experienced
    active component pilots from the total force while saving hundreds of
    millions of dollars in training costs. The study also acknowledged
    reserve component personnel provide the force with nearly double the
    experience and qualifications of their active component counterparts,
    and that a force mix of 60 percent active component and 40 percent
    reserve component would minimize training costs while maximizing
    institutional knowledge and experience.
        Divesting Air Guard fighter squadrons without a recapitalization
    plan exacerbates a national shortage of fighter squadrons, trained and
    experienced pilots and maintainers, and adds risk to the National
    Defense Strategy. We must seek to balance existing fleets and plan new
    aircraft purchases to ensure that the Guard can continue to contribute
    to the Total Force in support of the NDS.
        Modernization is not exclusively an issue of equipment; it also
    pertains to our formations and our facilities. In terms of our
    formations, we must be deployable, sustainable, interoperable, and
    operationally ready. Like our counterparts in the active duty Army, the
    Army National Guard also intends to restructure our forces to better
    support divisions as the primary combat formation, and provide greater
    agility, endurance and depth. Force structure design in National Guard
    divisions should reflect their Active Duty counterparts as closely as
    possible. This enhances our operational readiness to respond wherever
    and whenever the National Guard may be needed.
        In terms of our facilities, modernized installations support better
    training scenarios and emergency response missions, while concurrently
    serving as a primary tool to increase recruiting, retention, and
    quality of life for our service members. However, many National Guard
    facilities are aging and some lack the space necessary to conduct
    modern training exercises. To support the National Guard's facilities,
    the budget supports preventative maintenance and timely response to
    work orders. Modernizing National Guard facilities is essential to our
    overall operational readiness and a critical quality of life
    consideration for our Soldiers and Airmen.
                           a promise to our partners
        The National Guard is a local force with a global reach, and this
    is most evident in our State Partnership Program (SPP). This program
    pairs a state's National Guard with a partner nation, allowing members
    of each military's organization to train together and build enduring
    relationships. The overall cost of the program--less than 1 percent of
    the overall security cooperation budget--pales in comparison to the
    relationships garnered through training exercises, subject matter
    expert exchanges, and other military-to-military engagements. Today,
    there are 89 partnerships with 106 nations; every Combatant Command is
    represented. Last year, we celebrated the SPP's thirtieth anniversary,
    and we have plans to continue growing the program in the years ahead.
        With the assistance of Congress, the SPP has proven to be a
    valuable security cooperation program and continues to grow in support
    of the National Security Strategy, the National Defense Strategy, and
    Combatant Commanders' theater security objectives. Thanks to this
    program, Soldiers and Airmen experience the global operating
    environment, develop military-to- military relationships, improve
    strategic and operational readiness, enhance access and influence, and
    ensure our Nation has trusted, capable, interoperable Allies and
    partners at our side. Fully funding the SPP through the services will
    ensure continued access to timely, consistent, and adequate resources
    to maximize the program's potential and historically robust return on
    investment. In addition, fully funding the President's budget request
    for the SPP would increase opportunities for mutual cooperation with
    the states' partner nations.
                            a promise to our people
        The National Guard's highest priority is our people. It is our
    people who volunteer, train, deploy, and serve, and they are the most
    critical element of our success.
        That is why we continue to assess and take measures to improve our
    aviation safety standards in both the Army and Air National Guards. The
    tragic aviation accidents in recent years highlight the need for the
    highest levels of training and maintenance; a continued commitment to
    fully fund flying hour requirements, full-time aircrew requirements,
    and maintenance manpower requirements; and the importance of modernized
    equipment. Safety is not only essential to our continued operational
    readiness, it is essential to our Soldiers, Airmen, and National Guard
    families. As we prepare for the challenges of the future, we always
    prioritize the safety of our team.
        We remain grateful for Congress' support of the Soldiers, Airmen,
    and families of the National Guard. NDAA provisions, including dual
    basic allowance for housing for training, and pay and benefits parity,
    such as the creation and expansion of maternity, parental, and
    bereavement leave to the reserve component, demonstrates both
    investment and recognition of the importance and value of our National
    Guardsmen. In addition, Congress' pay increase for military personnel
    helps our military families keep pace with inflation. The FY 2022 NDAA,
    as amended by the FY 2024 NDAA, provides the Department with
    flexibility to address paying Reserve Component members the same
    monthly amount of special and incentive pay as paid to regular
    Component members. Each of these actions recognizes the contributions
    of our Guardsmen and Reservists, demonstrates the value of their
    service, and are important tools for recruiting and retention.
        The National Guard faces the same recruiting and retention
    headwinds we have seen throughout the Armed Forces. While the Army
    National Guard was able to meet its end-strength goals last year, the
    Air National Guard fell short. This can be attributed to a fiercely
    competitive recruiting environment, a strong national economy, and
    generational shifts in the propensity to serve, among other factors.
        To remain a competitive option for those looking to serve, we need
    to invest in our recruiters and our recruiting efforts and continue to
    find ways to reach the diverse populations that represent the
    communities where we live and serve.
        I believe the National Guard is a unique and powerful opportunity.
    It provides the chance to serve one's Nation, have a civilian career,
    live where one chooses, and earn benefits associated with military
    service. It is also a tremendous value to the American taxpayer. As
    personnel costs continue to increase across the DoD, capacity exists
    within the unique National Guard model to grow future capability as a
    strategically ready, responsive, and operational force at a fraction of
    the cost of active duty forces.
        Medical readiness is critical to the activation of our Soldiers and
    Airmen; disasters and world events are dynamic and unpredictable, and
    we must be ready to respond. But historically, many Guardsmen are not
    medically ready for activation due to challenges like insurance
    coverage and long wait times for healthcare access when not in a duty
    status. If they are unable to seek treatment for a physical ailment or
    a dental issue or obtain follow-on care due to a lack of insurance,
    they fail to meet medical readiness requirements.
        Our service members must be ready at a moment's notice--and
    addressing the unique medical challenges we see with the National Guard
    is critical to force readiness.
        There are other areas to improve healthcare delivery for our
    service members. We must continue to focus on building capacity in DoD
    hospitals and clinics--capacity to ensure timely and quality access to
    care for the 9.6 million Military Health System beneficiaries depending
    on us to get this right. Our focus must remain on improving civilian
    healthcare staff hiring in select locations, recognizing the increasing
    risks of nationwide healthcare provider shortages. Our focus must also
    include enhancing easy, convenient access to care through new digital
    health technologies, such as the Defense Health Agency's new Digital
    Health Strategy. Implementing new digital health tools will enable
    real-time and flexible virtual care, and upgraded direct patient care
    experiences so our healthcare system can better meet the needs of our
    beneficiaries, and expand capacity in the long-term. These efforts and
    more will ensure we can meet the demands of today and tomorrow.
                            a promise for the future
        It has been the honor of my life to serve our Nation and the
    Soldiers and Airmen of the National Guard, and it is my highest
    objective to posture this organization for the demands of the future. I
    am thankful for the Subcommittee's personal friendships, and continued
    support and commitment to helping the National Guard keep our promise
    to America and remain ``Always Ready, Always There.''

        Senator Tester. Thank you, General Hokanson.
        General Daniels.
    STATEMENT OF LIEUTENANT GENERAL JODY J. DANIELS, CHIEF
                OF ARMY RESERVE
        General Daniels. Chairman Tester, Ranking Member Collins,
    and distinguished members of the subcommittee, thank you for
    this opportunity to testify today.
        On behalf of the 190,000 Soldiers and civilians of
    America's Army Reserve, we stand ready to protect American
    interests and posture ourselves to meet challenges at home and
    around the world.
        On any given day, nearly 9,000 Army Reserve Soldiers are
    mobilized or deployed worldwide in support of combatant
    commands. Tens of thousands more are engaged in training events
    and annual combined and joint exercises, reinforcing alliances
    and partnerships around the globe. The Army Reserve is also a
    key partner in the homeland, facilitating both large-scale
    mobilization operations and defense support to civil operations
    and authorities.
        As the Joint Force prepares to operate in a contested
    logistics environment, the Army Reserve will play a key role in
    delivering the critical enabling capabilities needed for large-
    scale combat operations. A ready and modernized Army Reserve is
    a crucial part of the Joint Force that can deploy, fight, and
    win our Nation's wars.
        From the start of my tenure, I challenged our leaders to
    prioritize tough, realistic training, done safely, over dealing
    with administrative metrics. I trust that message will continue
    to resonate beyond my tenure, which is coming to an end in just
    a few weeks. The Army is undergoing a once-in-a-generation
    transformation. The Army Reserve requires robust investment to
    modernize our aging equipment to enable interoperability with
    the Joint Force.
        NGREA represents roughly 35- to 40 percent of the Army
    Reserve's equipment procurement budget. That said, the Army
    Reserve's unfunded equipment requirements list continues to
    increase while NGREA funding does not. With inflation and
    material costs rising, our buying power is decreasing. The
    success of the Army Reserve's modernization efforts hinges on
    NGREA funding, and we absolutely greatly appreciate the
    committee's continued support.
        Additionally, it is important to ensure that our Soldiers
    and their families remain a top priority. Caring for our
    Soldiers and families and ensuring they receive benefits they
    are entitled to is vital. Last October, the Army Reserve
    developed a first-of-a-kind intergovernmental Service support
    agreement pilot to deliver child care services to Soldiers
    during weekend training. We look forward to building on this
    pilot and collaborating with the other Reserve components in
    future efforts.
        I want to take a moment to thank all my fellow officers on
    this panel. I want to especially thank Vice Admiral Mustin for
    his collaboration on a variety of efforts, especially our Go
    Army, Beat Navy videos.
        Our new Command Sergeant Major of the Army Reserve, Command
    Sergeant Major Betty, and I, are incredibly proud, along with
    my husband, to lead the men and women of your Army Reserve; and
    are ready for your questions. Thank you.
        [The statement follows:]
            Prepared Statement of Lieutenant General Jody J. Daniels
                         the united states army reserve
                       ready now! shaping tomorrow . . .
        Chairman Tester, Ranking Member Collins, distinguished members of
    the Subcommittee, thank you for your continued support to our Soldiers,
    Civilians, and Families. We thank you for the opportunity to appear
    before you today to discuss America's Army Reserve.
        In an increasingly complex global environment, America's Army
    Reserve remains indispensable, delivering strategic capabilities that
    enable the Army and Joint Force to defend the homeland and fight and
    win our Nation's Wars. As the Army focuses on ensuring our adversaries
    cannot outrange or outpace us on traditional battlefields, space, and
    cyberspace, a ready and engaged Army Reserve is equally vital in
    protecting American interests--at home and abroad.
        Since its establishment in 1908, the Army Reserve has mobilized
    more than 1.3 million Citizen Soldiers, bringing flexibility,
    adaptability, lethality, and cutting-edge capabilities to every
    training exercise and conflict. The Army Reserve blends high-quality
    military capabilities with diverse civilian skills, education,
    training, and experiences, providing a unique strength to the Total
    Force.
        Today's Army Reserve comprises over 175,424 Soldiers and 12,200
    Civilians--with units in all 50 states, five U.S. territories, in
    Germany, Korea and Japan. Fiscally efficient, the Army Reserve supports
    the needs of the Total Force, with just 16% of the component serving as
    full-time support.
        Making up nearly 20% of the Total Army's personnel, the Army
    Reserve provides critical units, skillsets, and capabilities--nearly
    half of its maneuver support and a quarter of its force mobilization
    capacity--at a cost of just 6% of the total Army budget.
        As the Army continuously transforms, integrating new technology to
    increase mobility and lethality, the Army Reserve provides an essential
    link to private sector expertise. This strategic position enhances the
    Army's asymmetric advantage against potential adversaries, a capability
    critical in Large-Scale Combat Operations and safeguarding the
    homeland. Simply put, the Joint Force cannot deploy, fight, and win
    without the Army Reserve.
                                  warfighting
        As a truly operational Reserve, on any given day upwards of 9,000
    Army Reserve Soldiers are mobilized or deployed worldwide to support
    the Army and Combatant Commands. Tens of thousands more participate
    annually in joint exercises and overseas deployment training that
    expand the capability base, strengthen alliances and partnerships, and
    promote interoperability. The Army Reserve supports the First Army by
    mobilizing and deploying more than 12,000 Soldiers and Civilians
    annually from all components at multiple mobilization force generation
    installations.
        With only 39 available training days per year, Army Reserve leaders
    make every battle assembly count. To assist the Army in deterring
    adversaries and maintaining stability, the Army Reserve integrates
    tough, realistic training--done safely--in multi-component and joint
    training exercises--alongside allies and partners across the globe and
    in every theater of operation. The Army Reserve also stands ready to
    respond to year-round domestic disasters and national emergencies,
    tapping into our Force's unique civic expertise and dual-use equipment
    capability.
        Combatant Commands rely on the Army Reserve's ability to mobilize
    and deploy to meet operational plan requirements rapidly. The Army
    Reserve provides more than 56% of the Army's quartermaster, medical,
    and transportation capabilities. Support to the Joint and allied forces
    will be critical in a contested logistics environment where operations,
    facilities, and activities are targeted in the homeland, in transit,
    and in the theater. With eight of the Army's 14 Expeditionary
    Sustainment Commands and 95% of the Total Army's bulk fuel line-haul
    capacity, the Army Reserve is essential to set the theater for the
    Joint Force, enabling combat formations to seize and maintain
    initiative and extend operational reach.
        Notably, the 475th Quartermaster Group took part in Talisman Sabre
    23, a large-scale Joint defense exercise with Australia, validating
    ship-to-shore logistics capability. Working alongside the Navy and
    Army's 555th and 130th Engineer Brigades, the units connected three-
    mile-long fuel and water pipelines onshore to 175,000-gallon tanks
    aboard Australian commercial landing craft about 1,000 meters offshore.
    The Army Reserve's participation in Talisman Sabre and other overseas
    exercises helps prepare our Soldiers for the challenges expected in a
    contested logistics environment, strengthen partnerships, improve
    interoperability, and enhance collective readiness. Additionally, over
    95 units and 4,000 Army Reserve Soldiers actively contribute to Combat
    Training Center (CTC) and Warfighter Exercise (WFX) events yearly.
    These exercises play a pivotal role in enhancing the collective
    readiness and operational effectiveness of the Joint Force.
        The Army Reserve is essential in supporting critical capabilities
    and enablers for key training events centers such as CTC rotations.
    Supporting approximately 24 rotations annually, the Army Reserve
    directly influences the preparation of the Total Force for operational
    challenges. This commitment to excellence highlights the Army Reserve's
    integral role in enhancing the nation's defense capabilities and
    ensuring military readiness across diverse operations.
    Defense Support of Civil Authorities
        The Army Reserve, in coordination with our partners in the National
    Guard, is a Federal Response Partner, maintaining a constant state of
    readiness for Defense Support of Civil Authorities (DSCA) operations as
    a valuable resource and capability provider. In DSCA responses, the
    Army Reserve has provided rapid activation of units when and where
    needed.
        This readiness was evident in the Army Reserve's swift and
    effective crisis support response to Hurricane Ian and wildfires in
    Hawai'i. Army Reserve Emergency Preparedness Liaison Officers and
    recovery personnel played a crucial role in preparing for and rapidly
    responding to these and other natural disasters throughout the United
    States this past year. The Army Reserve's dedication to national
    defense and disaster response underscores its vital role in
    safeguarding local communities.
    Innovative Readiness Training (IRT)
        Last year, more than 1,500 Army Reserve Soldiers participated in 16
    Department of Defense (DoD) Innovative Readiness Training (IRT)
    missions across 12 States and three U.S. territories. IRT leverages
    expertise in specialties spanning healthcare, construction, and civil
    affairs, to provide real world critical services with lasting benefits
    to communities across America.
        The Army Reserve led three of DoD's four IRT missions outside the
    continental United States. Soldiers conducted training and support in
    Puerto Rico and the Mariana Islands, including Guam Wellness, where
    Soldiers performed nearly 15,000 medical procedures on more than 5,000
    patients. During Operation Health in the Commonwealth of the Northern
    Mariana Islands, nearly 24,000 procedures were provided to Saipan,
    Tinian, and Rota residents. In recognition of the impact, 126 Army
    Reserve Soldiers received the DoD's Civil-Military Partnership of the
    Year Award.
                     deliver and sustain combat ready power
        Preserving our All-Volunteer Force--and retaining the multiplying
    effects of the unique skillsets our Citizen Soldiers bring--is
    paramount to safeguarding our national security interests. To
    strengthen and deliver this combat-ready power, the Army Reserve
    encourages ``Dual Pursuits,'' fostering an environment that promotes
    collaboration and growth in uniform and outside of duty status.
        By prioritizing ``tough, realistic training, done safely,'' we have
    made significant strides toward achieving our retention objectives.
    When our Soldiers have compelling and meaningful experiences to share
    after battle assemblies or training events, we know we are moving in
    the right direction. Our goal is to consistently inspire our Soldiers'
    development and enthusiasm for their mission.
        The Army Reserve offers exceptional opportunities that can set a
    Soldier up for a lifetime of success, creating the ultimate Warrior
    Citizen who shares their skills and talents with the Army while
    pursuing a fulfilling civilian career.
    Quality of Life
        The Army Reserve prioritizes Soldiers by promoting quality-of-life
    programs that improve the Army Reserve experience while making
    integrating family, work, and military life easier. Readiness relies
    upon the Families who support and sustain our Soldiers serving the Army
    and the Nation. A critical part of realizing our vision for the future
    is ensuring our Soldiers and their Families are well cared for and
    supported where they live and work.
        To enhance quality of life, the Army Reserve is committed to
    improving barracks conditions and collective training facilities,
    promoting the health and well-being of our Soldiers, increasing
    recruiting and retention, and improving our readiness.
        The average age of the Army Reserve barracks inventory is 72 years
    old. To maintain and upgrade Soldiers' living quarters and improve
    overall quality of life, the Army Reserve prioritizes Facilities
    Restoration and Military Barracks Construction. A continued focus on
    the program--which serves the 409 Collective Training Barracks, seven
    Institutional Training Barracks, and three Permanent Party Barracks
    across the Army Reserve footprint--is essential to the well-being and
    readiness of our Soldiers and their Families.
        The Army Reserve has requested significant increases in MILCON
    funding for Advanced Skills Training Barracks in the President's FY
    2025 budget, demonstrating a strong commitment to inventory
    improvements. The Army Reserve is planning and programming the
    modernization of Collective Training barracks when economically viable
    and planning and programming projects for Military Construction
    (MILCON) to replace and divest barracks that are not economical to
    repair.
        The Army Reserve is geographically dispersed--maintaining five key
    installations, along with an extensive network of 753 facilities. The
    Army Reserve's dispersed footprint is a national strategic asset,
    allowing the U.S. to project combat power and enhance overall
    resiliency. Through sustained improvements in our Soldiers' living
    conditions and collective training facilities, the Army Reserve is
    investing in the long-term health and well-being of the force, enabling
    our Soldiers and families to thrive, and positively impacting
    readiness, recruiting and retention, and overall quality of life.
    Childcare
        Another issue affecting Citizen Soldiers and their Families has
    been a nationwide shortage of weekend childcare services. This has had
    an adverse impact to both retention and quality of life. The Army
    Reserve has around 15,000 single parents and 7,000 dual-military
    couples who often face challenges finding suitable childcare during
    Battle Assembly weekends and Annual Training. Operating on the weekends
    comes at a cost, as many childcare providers do not provide services
    throughout the weekend.
        In 2020, the Department of Defense recognized this shortfall and
    extended childcare benefits to the Reserve Components. The Army Reserve
    Family Program office implemented multiple programs to combat this
    critically needed asset for Soldiers and their families. In the 4th
    quarter of FY 2023, the Army Reserve established a pilot program
    through an Intergovernmental Support Agreement in the Kansas City metro
    area, offering no-cost childcare options during weekend and annual
    training. The program has shown promising results since its
    implementation from September 01, 2023, to March 12, 2024. During this
    period, 1,039 families and 1,849 children registered with the program,
    with 83 families and 303 children actively utilizing childcare
    services. While the Army Reserve continues to assess data from pilot
    programs launched recently, we continue to explore alternative
    childcare solutions to enhance long-term readiness and retention across
    the Army Reserve.
    Public Private Partnership (P3O)
        The Private Public Partnership Office (P3O) continues to build on a
    nationwide network of corporate, profit/nonprofit and employee
    partnerships. The employment outreach program pairs thousands of
    qualified Soldiers, Family members and Veterans with hundreds of
    private and public organizations--across more than 20 industry
    sectors--to develop career pathways through training, internships, or
    apprenticeships with respected companies. Recognizing the multiple
    responsibilities that Soldiers carry, including family and career
    commitments, P3O demonstrates the importance of a strong relationship
    between the civilian sector and the Army Reserve. This connection not
    only acknowledges shared talent but also significantly contributes to
    reducing stressors in Soldiers' lives, allowing them to focus on
    training while balancing family and career obligations.
        P3O supports transitioning active-duty service members through its
    innovative Active Component to Reserve Component program. P3O actively
    links transitioning service members with civilian career pathways to
    find meaningful employment, thereby facilitating the seamless
    transition of those service members into the Army Reserve. In 2023, P3O
    assisted 837 Soldiers, 90 Veterans, and 85 dependents in finding
    employment. The partnership has extended to over 240 businesses,
    ensuring Soldiers and their families can access diverse employment
    opportunities.
    Army Reserve Ambassadors
        Army Reserve Ambassadors (ARAs) continue to play a crucial role in
    fostering positive relationships and generating support for the Army
    Reserve among a diverse array of stakeholders. These dedicated
    individuals leverage their extensive connections with legislative,
    business, and community leaders across the United States to make a
    significant difference for Soldiers and their families. Through their
    strategic outreach and advocacy, ARAs have demonstrated their
    commitment to the future force by actively engaging in initiatives to
    attract new talent and retain junior leaders. Notably, their combined
    efforts--along with Major Subordinate Commands--have contributed to the
    growth of the force through the awarding of more than 200 Minuteman
    College Scholarships valued at more than $23 million, thereby enhancing
    educational benefits for deserving individuals.
    E5 in 5
        This past year, we implemented the E5 in 5 Initiative. It aims to
    empower Soldiers to attain the rank of sergeant within 5 years of
    joining the Army Reserve. Recognizing the abundance of talent within
    our ranks, the Army Reserve is committed to promoting individuals who
    exemplify leadership qualities and set a positive example.
        As part of the initiative, leaders take the proactive steps of
    enrolling Soldiers in the Distributed Leader Course (DLC),
    expeditiously scheduling the Basic Leader Course (BLC), conducting
    flexible promotion boards, and utilizing temporary promotions when
    feasible. This initiative underscores the importance of cultivating
    leadership skills among our dedicated enlisted corps.
        As a result, by the end of 2023, the Army Reserve had exceeded 103%
    of required strength for Sergeants for the first time in 4 years by
    promoting over 5,000 Specialists who all demonstrated the potential to
    serve as noncommissioned officers.
    Reducing Harmful Behaviors
        The Army Reserve is addressing harmful behaviors that break the
    trust between our Army Reserve and our Soldiers. Foundational Readiness
    sessions give leaders time to conduct counseling, build esprit de
    corps, and underscore the Army Values while bolstering programs such as
    Project Inclusion and Equal Opportunity.
        Every Soldier deserves a workplace free of sexual assault, sexual
    harassment, retaliation, and other behaviors that adversely impact the
    work environment. The results of a thorough internal analysis of the
    Army Reserve's Sexual Harassment/Assault Response and Prevention
    Program have enabled programmatic changes driven by the Secretary of
    Defense and the NDAA, including improved victim care, staffing,
    organization, reporting, and oversight.
        The Army Reserve SHARP Team coordinates with Headquarters,
    Department of the Army SHARP team and Assistant Secretary of the Army
    (Manpower and Reserve Affairs) to develop an Army Reserve-centric
    staffing model consistent with the recommendations of the Independent
    Review Commission on Sexual Assault in the Military (IRC-SAM), as
    approved by the Secretary of Defense. The Army Reserve SHARP program
    inspects and provides staff assistance to every major subordinate
    command's program. The 99th Readiness Division's recently completed
    virtual Fusion Directorate pilot program offered valuable insights
    validating the need to sustain a 24/7 hotline and implement division-
    level consolidated Sexual Assault Review Board and Training. The Army
    Reserve legal community supports the Office of Special Trial Counsel
    (OSTC). Army Reserve support to OSTC will significantly strengthen the
    prosecution of sexual assault and other serious criminal offenses by
    specially trained attorneys independent of the chain of command.
    Suicide Prevention
        Suicides are devastating to Families, units, and readiness, and the
    Army Reserve is committed to identifying and providing services and
    support to vulnerable individuals to let them know that every life is a
    life worth living. Suicide remains one of the Army's most complex
    challenges, and prevention requires a comprehensive approach. However,
    in most recorded suicidal ideation cases, Soldiers actively sought
    help, or leaders intervened upon recognizing changes in behavior.
        The Army Reserve also empowers Soldiers down to the squad-leader
    level to escort any Soldier in crisis to immediate lifesaving care. The
    Army Reserve is conducting training sessions to help identify and
    address high-risk behavior. Further, the Army Reserve authorizes a paid
    duty status for the Soldiers who perform these critical lifesaving
    missions and for those who need help.
                           continuous transformation
        The Army is adapting to meet threats posed by the rapidly changing
    face of warfare--transforming to ensure we outpace adversaries by
    harnessing the latest technologies for warfighting advantage. For the
    Army Reserve, continuous transformation means evolving our structure to
    support the Army of 2040, reviewing capabilities, and investing in
    high-demand civilian skills.
        The Engineer 2030 Force (E30F) is leaning forward for the Army of
    the future, aligning Army Reserve Engineer Battalions with Active
    Component Divisions to provide full spectrum engineering services in
    the supported theater--including counter-mobility, mobility and
    survivability.
        Finally, the Army Reserve requires modernization funding for our
    aging High Mobility Multipurpose Wheeled Vehicle (HMMWV) fleet, which
    will remain mission critical at home and overseas for the foreseeable
    future. About half of our nearly 18,000 HMMWVs are beyond their useful
    life, reducing our ability to respond to crises and risking Soldiers'
    safety without upgraded anti-lock brake systems and electronic
    stability control kits.
    Cyber Capabilities
        The Army Reserve's approach to cyber capabilities extends beyond
    traditional military training, recognizing the importance of leveraging
    external resources and partnering with academic institutions to stay at
    the forefront of cybersecurity. It continues to evolve and adapt to the
    rapidly growing threats in the digital domain. Our Soldiers play a
    crucial role in the overall cyber capabilities of the Total Force.
        The Army Reserve actively engages with the civilian sector to tap
    into cutting-edge talent, acknowledging the importance of staying
    connected with advancements in the private industry. Recognizing the
    significance of early career education, the Army Reserve seeks to
    engage with the next generation of Cyber Warriors, Data Scientists, and
    individuals involved in STEM (Science, Technology, Engineering, and
    Math) programs. Establishing partnerships with educational
    institutions, including K-12 schools and universities, is crucial for
    developing a pool of skilled individuals who can contribute to the
    evolving landscape of cyber warfare.
        Presently, the Army Reserve channels talent into 10 Cyber
    Protection Teams, representing 25% of the Army's Cyber Protection Team
    capability. These teams consist of experienced Defensive Cyber
    Operation (DCO) warriors with unique and specialized civilian skill
    sets. These skills include Industrial Control Systems, supervisory
    control and data acquisition (SCADA) systems, cloud computing, data
    science, digital forensics, computer programming languages, application
    engineering, and more. These Soldiers contribute not only to military
    operations but also bring insights from their commercial experiences,
    adding value to the overall cyber defense strategy.
        To better meet the needs of the Army and the Nation, the Army
    Reserve Cyber Protection Brigade (ARCPB) is expanding by more than 600
    positions, creating four deployable command and control battalions;
    four Cyber Security Companies to support persistent Defensive Cyber
    Operations; and four additional CPTs, posturing the Army Reserve to
    meet U.S. Cyber Command and U.S. Army Cyber Command mission
    requirements.
        The Army Reserve is also focusing on innovation and initiatives by
    restructuring the 75th Army Reserve Innovation Command into a two-star
    command with two innovation brigades and 25 innovation detachments--a
    holistic structural overhaul executed over 3 years.
    Energy
        Across the nation, we are investing to strengthen energy and water
    resilience to ensure access for critical missions under all conditions.
    We are securing funding for projects ranging from installation-wide
    energy and water distribution plans to ongoing improvements of our
    energy use and water accessibility across our footprint. These projects
    include electric microgrids, renewable energy technology, centralized
    building controls and metering, and facility-related control systems
    that are protected from cyberattacks.
        The Army Reserve recently installed seven dual-port electric
    vehicle chargers at Parks Reserve Forces Training Area, CA, and three
    more at the 63rd Readiness Division Headquarters in Mountain View, CA.
    The evaluation of these chargers will inform our plans for the entire
    Army Reserve fleet.
                         strengthen the army profession
        The range of Army Reserve capabilities encompasses medical
    expertise, logistics, transportation, water purification, railroad
    operations, engineer, chaplain services, intelligence, military police,
    instructional capacities, and civil affairs. As the primary provider of
    combat service and combat service support expertise, the Army Reserve
    provides tailored responses to meet the demands of current or emerging
    requirements. The specialized capabilities within the Army Reserve
    ensure that we are both ready and adaptive, aligning with the evolving
    needs of the Army and the nation.
        Our Soldiers' high-demand career skillsets, such as medical, cyber,
    legal, engineering, and port operations--which are costly and
    challenging to maintain on active duty--are invaluable in positioning
    the Army Reserve as a critical asset for the Army and the Joint Force.
    Civilian Acquired Skills Program
        In alignment with Total Army objectives, the Army Reserve has
    significantly strengthened its Army Civilian Acquired Skills Program
    (ACASP) to strengthen our ranks with adept and experienced individuals.
    The primary aim of this program is to recognize and incentivize
    recruits possessing up-to-date, pertinent civilian skills, particularly
    in emerging technologies. The ACASP program enables Soldiers with
    civilian skills to undergo shorter entry-level training and contribute
    more swiftly in their new roles to the unit and the mission. This
    reduces the time away from civilian employers.
        Recently expanded from seven to 44 certifiable career fields, ACASP
    facilitates a streamlined training process for Soldiers who have
    already certified their skills through trade schools, professional
    certifications, academic degrees, or work experience. This expansion
    has ushered in nearly 200 new Soldiers in 2023, ensuring a continued
    influx of dynamic and proficient capabilities for future challenges.
    For example, a civilian electrician, enlisting as an Interior
    Electrician (12R) under ACASP, was able to reduce his training path by
    six weeks. Similarly, medical professionals enlisting in fields like
    combat medic can accelerate their training timeline, reducing a 16-week
    training program to nine weeks with existing and relevant
    certifications.
                                   conclusion
        The Army Reserve provides trained, equipped, and ready Soldiers to
    fulfill the Nation's domestic and international requirements. Whether
    engaged in combat missions or contingency operations or safeguarding
    lives and property within America's communities, Army Reserve
    formations remain a source of versatile and effective capabilities.
        The Army Reserve requires consistent, adequate, and predictable
    funding to maintain critical operational capabilities. Such funding is
    vital to ensuring the Army Reserve can adequately meet the demands of
    the Army and the Joint Force. We are grateful for the Congressional
    support with defense spending that positively impacts people, enhances
    readiness, and supports modernization efforts. It is critical to the
    Army Reserve's investment strategy and an invaluable resource for
    modernizing essential mission equipment.
        The Army Reserve stands ready to contribute significantly to the
    success of the Army, the Total Force, and the Nation as a whole.
    Acknowledging the challenges ahead, the Army Reserve remains committed
    to providing unwavering support and crucial capabilities for the
    Nation's security.
        Thank you again for this opportunity to discuss the Army Reserve
    and for your strong support of our Soldiers, Civilians, and their
    families. I look forward to your questions.

        Senator Tester. Thank you, General. Admiral Mustin.
    STATEMENT OF VICE ADMIRAL JOHN B. MUSTIN, CHIEF OF NAVY
                RESERVE
        Admiral Mustin. Good morning, Chair Tester, and Vice Chair
    Collins, and distinguished Members of the Subcommittee. It is a
    privilege to address you today, alongside with my colleagues,
    with an update on the state and the vision of America's Navy
    Reserve.
        I would like to begin by recognizing my wife, Kim, whose
    steadfast support for 31 years exemplifies the unsung
    sacrifices typical of our military spouses. I would also like
    to thank Master Chief Tracy Hunt for his tireless efforts in
    support of our unlisted Reserve Sailors.
        And given this will be my last hearing before this
    committee, I want to thank General Hokanson and my peer Reserve
    Chiefs for their support and friendship during my tenure as
    Chief of Navy Reserve.
        On any given day the Navy Reserve provides 60,000 Sailors,
    nearly 150 aircraft, two SEAL Teams, three expeditionary
    medical facilities, and nearly half of the Navy's expeditionary
    combat command and intelligence capability, 24 hours a day, 7
    days a week, 365 days a year your Navy Reserve is standing at
    the ready with nearly 15,000 Sailors, or 25 percent of our
    Force serving, on active-duty orders.
        Our current operations extend from Europe's security crisis
    to the Red Sea, and from the Indo-Pacific region to recent
    support operations in Baltimore, showcasing the flexibility,
    readiness, and value our citizens, Sailors generate and
    contribute to national security.
        In response to Modern threats the Navy Reserve has
    aggressively executed a multi-year transformation,
    unambiguously focused on warfighting readiness, to prepare the
    Force for high-end, multi-domain, warfare. This effort
    necessitated modernizing equipment, training systems, and
    mobilization processes to ensure our Sailors are both trained
    and combat ready from day one.
        We have 927 days until 2027, and the accelerating pace of
    that countdown clock drives our actions and our sense of
    urgency daily. The procurement of modern KC-130 Juliet Aircraft
    to replace aging airframes is critical to enhancing the
    logistics capabilities of the Joint Force. We share a strong
    alignment on this priority as demonstrated by last year's
    incorporation of the KC-130 Juliet in the Defense
    Appropriations bill, and this year's Congressional add.
        This airframe modernization is essential and my number one
    equipment priority. It ensures the Navy Reserve can effectively
    and efficiently meet contested logistics requirements and
    conduct the operations that our combatant commanders and fleet
    commanders demand, particularly in the Indo-Pacific area of
    responsibility where this Reserve-only capability factors
    heavily into our operational plans.
        Beyond equipment, we have embraced and invested in
    technological advancements to improve work and training
    environments, propelling the Navy Reserve into a new era of
    both operational and digital Readiness. Commitment to our
    Sailors is central to our efforts, focusing on personal and
    professional development, promoting a culture of excellence and
    fostering a diverse and inclusive environment.
        The Navy Reserve has leveraged innovative approaches,
    including establishing the Navy Recruiting Reserve Command and
    employing advanced digital analytics tools and AD placements to
    improve our recruiting efforts.
        The retention of our prior Service enlisted sailors is at a
    7-year high, ensuring a robust and ready Force. These
    commitments enhance our warfighting readiness, and take full
    advantage of the unique professional skills inherent in our
    Reserve Force.
        I extend my gratitude for the committee's support which is
    critical for maintaining the operational predictability
    essential for our Sailors, their families, and our global
    combatant readiness.
        Chair Tester, Ranking Member Collins, and all the Members
    of this Committee, the dedication of our citizen, Sailors,
    civilians, and their supportive families is a gratifying source
    of daily inspiration, commanding representing, and advocating
    for the Navy Reserve has been the honor of a lifetime.
        Thank you for your continued support, and for the
    opportunity to address you today. I look forward to your
    questions.
        [The statement follows:]
               Prepared Statement of Vice Admiral John B. Mustin
                                  introduction
        Chair Tester, Vice Chair Collins, distinguished members of the
    Committee, thank you for the opportunity to testify and illuminate the
    pivotal role played by the Navy Reserve in safeguarding our nation. On
    behalf of Navy Reserve Sailors, civilians, and their families, thank
    you for your continued leadership and support as we continue to
    optimize the warfighting readiness of your Navy Reserve Force for
    strategic competition.
        In 2020, the Navy Reserve began a multi-year transformation to
    improve and modernize the way we organize, man, train, equip, and
    mobilize to generate the combat power and critical strategic depth the
    Navy requires to prevail in conflict. We embraced the imperative to
    redesign the Reserve Force--structurally, procedurally, and
    operationally--to align with strategic priorities calibrated for a
    competitive security environment. With a singular focus on generating
    warfighting readiness, this generational transformation provides the
    most capable force to our Navy's Fleet Commanders and delivers
    integrated all-domain naval power to the Joint Force.
        Throughout its rich 109-year history, the Navy Reserve has
    demonstrated its role as an elite fighting force--a deep well of
    strategic depth enabling our great nation to prevail in competition,
    crisis, and conflict. The talent our Navy Reserve Sailors bring to bear
    provides an unequivocal asymmetric advantage. As we transformed the
    organization, training, and mobilization processes of the Force, we
    also remained focused on our collective responsibility to recruit and
    retain our nation's precious talent.
        On any given day, the Navy Reserve has about 60,000 Sailors, nearly
    150 aircraft, two SEAL teams, three expeditionary medical facilities,
    and almost half of the Navy's expeditionary combat command and
    intelligence capability standing at the ready . . . 24 hours a day,
    seven days a week, 365 days a year . . . with nearly 15,000 serving on
    active duty orders. I remain in awe of the dedication and
    professionalism of Navy Reserve Sailors, civilians and the families
    that support them. They provide the foundation that underwrites more
    than a century of successful contribution to the Navy and our Joint
    Force, and the reason I gaze optimistically to the future.
        Timely, predictable, and relevant funding from Congress enables the
    Navy Reserve to deliver this strategic depth and meet operational
    mission requirements, so we are grateful for your continued support and
    enduring interest. Continuing Resolutions result in the cancellation or
    deferment of limited and sometimes irreplaceable training
    opportunities, negatively impacting the warfighting readiness of the
    Navy Total Force. Maintaining the Reserve Personnel Navy account funded
    at President's Budget levels enables the Reserve force to deliver
    trained Sailors ready to fight and win in the early stages of conflict
    and to sustain combat operations. Continued Congressional support will
    ensure the Navy Reserve provides relevant, modern capability, capacity,
    a resilient surge force, and cumulative warfighting readiness through
    training orders, facilities, and equipment today and into the future.
                   warfighting: deliver decisive combat power
        For more than two decades following the unprovoked attacks of 9/11,
    and during our global fight against violent extremism, the Navy Reserve
    provided operational support in land-based combat environments. The
    strategic shift to address peer adversaries in the maritime domain has
    forced an evolution to the ready force the Navy Reserve is designed to
    deliver. With the resurgence of a global pacing challenge, generating
    warfighting readiness required a force design process focused on
    modernization and the accelerated delivery of relevant, current
    capabilities.
    Multi-Domain Warfighting Capability and Capacity
        Multi-domain warfighting capability and capacity relevance is a
    mandate for the modernized Reserve Force. As such, we are investing
    heavily in capabilities that directly align with winning future wars,
    including Maritime Operations Centers, contested logistics, surge
    maintenance, integrated fires, Naval Special Warfare, and Maritime
    Expeditionary Security Squadrons. Additionally, new technologies and
    capabilities in space, cyber, imagery analysis, battle damage
    assessment and repair, autonomous and un-crewed platforms, artificial
    intelligence, machine learning, data analytics, and additive
    manufacturing represent growth areas that capitalize on the unique
    skills and experiences of Reserve Sailors and the civilians that enable
    the Reserve Force.
        The Navy Reserve delivers these modern capabilities through three
    employment models: readiness units that augment active Navy units with
    trained, warfighting-ready Reserve Sailors; individual Sailors with
    unique skills that enhance the Total Force; and stand-alone operational
    units that supplement active component capabilities. The Navy Reserve's
    operational units require investments in modern equipment to ensure
    relevancy and strategic depth in logistics, aviation, security, medical
    capacity, special warfare and other critical capabilities.
    Navy Unique Fleet Essential Airlift
        The Navy Reserve continues to prioritize intra-theater lift to
    enable rapid deployment, movement, and logistical support to the Fleet
    Commanders and Joint Force, particularly through the recapitalization
    of the KC-130 Juliet. The C/KC-130T aircraft are the Navy's only long-
    range aerial logistics platform capable of transporting bulk cargo,
    such as boats, diver recompression chambers, submarine masts, and F-35
    engines. Operated solely by the Navy Reserve, the category known as
    Navy Unique Fleet Essential Airlift (NUFEA) consists of 27 C/KC-130T
    and 17 C-40A aircraft that comprise the totality of the Navy's organic
    intra-theater air logistics capability. In Navigation Plan 2022, Chief
    of Naval Operations Admiral Mike Gilday emphasized resilient logistics
    in contested environments as a critical force design imperative and
    directed recapitalization of the C-130 fleet, a reserve-only
    capability, by 2030. Compared to the legacy ``T'' variant, the more
    efficient and reliable ``J'' model improves operational performance
    while realizing a cost savings of approximately $1,000 per flight
    hour--while increasing mission capable rates nearly threefold.
        Last year, Navy Reserve air logistics aircraft transported 90,846
    passengers and 17.9 million pounds of cargo for the Navy and the
    Department of Defense. This capability saved the Department $1.24
    billion in expenditures relative to alternative means of
    transportation. Despite their demonstrated necessity and value, the C-
    130T's age, lack of available parts due to obsolescence, and increasing
    cost per flight hour, drive a growing gap between the Fleet's demand
    for this mission and the Navy's capability to fulfill it. For these
    reasons, the recapitalization of the KC-130J fleet is the Navy
    Reserve's number one equipment priority.
    Aviation Adversary
        The aviation adversary mission ensures the readiness of the Navy's
    carrier-based tactical aircraft and develops Navy pilots' air-to-air
    combat skill. The Navy Reserve's Tactical Support Wing (TSW) maintains
    12 F-16Cs and 12 block 1 F/A-18E/Fs aircraft that replicate high level
    threats, and 28 F-5N/F and 2 F-5N+/F+ aircraft that replicate low-to-
    mid level threats. The Navy Reserve is modernizing the F-5N/F avionics
    suite to improve safety of flight and resolve obsolescence limitations
    given an average age of over 40 years per airframe. The current fleet
    of F-5s will reach the end of their service life by the early 2030s;
    however, eleven upgraded F-5s purchased in FY20 will come into service
    over the next 3 years to ensure adversary capacity does not lapse prior
    to fielding a replacement aircraft. While the F-5 lacks the speed,
    sensors, and signature to accurately represent the high-end pacing
    threat, it adequately provides a live adversary platform required for
    basic airwing air-to-air training, and serves as a bridge until the
    replacement aircraft is fielded.
        In April 2022, the Navy Reserve received twelve F-16C aircraft from
    the Air National Guard that provide dissimilar aircraft training and
    high-end adversary support to the fleet. These aircraft have sufficient
    airframe hours remaining to sustain adversary missions through 2035.
    Ongoing efforts to upgrade these F-16s, together with investments in
    Live-Virtual-Constructive technology, increase the fidelity of modern
    threat replication and ensure Reserve adversary training remains
    relevant to the fleet until follow-on platforms become available.
    Maritime Patrol and Reconnaissance (P-8A and MH-60Rs)
        The Navy Reserve completed its transition from the P-3C to the P-8A
    in 2024. The P-8A aircraft is the nation's only full-spectrum, broad-
    area Anti-Submarine Warfare platform. Additionally, it provides armed
    Anti-Surface Warfare and networked intelligence, surveillance, and
    reconnaissance capability. The Navy Reserve's Maritime Patrol and
    Reconnaissance Aircraft (MPRA) squadrons mirror the active component
    units in design and mission, and integrate seamlessly into the Global
    Force Management (GFM) deployment cycle. In addition to receiving three
    P-8As in FY23, VP-62 received one aircraft last month, and is scheduled
    for two more deliveries in FY24 for a total of six aircraft. VP-69
    began the transition process to the P-8A in April 2023, with the first
    aircraft delivered on August 2023. The active component has transferred
    five P-8s, and the remaining six are scheduled for delivery between
    FY24 and FY25. VP-62 conducted its first forward P-8A operations to
    Keflavik, Iceland in November of 2023. They detached within 72 hours of
    notice of threat submarine operations, successfully flying over 60
    hours of Anti-Submarine Warfare missions with exquisite on top tracking
    of real-world adversary forces. VP-69, supporting Commander Third Fleet
    (C3F), will surge P-8A detachments during FY24 SUMMER-EX for Homeland
    Defense (HLD) missions and participate in the Rim of the Pacific
    Exercise (RIMPAC) 2024 supporting joint, partner, and allied
    interoperability. Transitioning reserve VP squadrons to the P-8A
    sustains the joint forces' military advantage over our pacing threat by
    providing worldwide, continuous deployed presence to deter adversaries
    and provide robust airborne support of maritime operations.
        Helicopter Maritime Strike Squadron 60 (HSM-60), delivers strategic
    depth and surge force capabilities, providing ready assets to support
    operational tasking on short notice. Last year they supported high-
    profile anti-narcotic operations in the Eastern Pacific Ocean,
    cooperating with USS Farragut and the U.S. Coast Guard. This
    interdiction not only disrupted significant illegal narcotic
    trafficking, valued over $69 million, but also highlights Navy Reserve
    rotary wing capabilities to help project dynamic maritime power and
    maintain regional stability.
                     warfighters: strengthen the navy team
        Sailors are our most precious resource--they are the backbone and
    the heart and soul of the Navy Reserve. Our focus remains on creating
    formidable warfighting teams, attracting and retaining skilled
    individuals from America's diverse tapestry, and offering them top-tier
    training and education. We are dedicated to enhancing our Sailors'
    service quality, encompassing both their quality of life and work, and
    ensuring Sailors and their families are supported, valued, and prepared
    for the future.
    Administration and Management of the Individual Ready Reserve
        The Navy Reserve is comprised of 57,200 drilling Selective Reserve
    (SELRES) and TAR Sailor billets, and 37,292 Individual Ready Reserve
    (IRR) members, totaling 94,492 Ready Reserve Sailors. The IRR is a
    critical component of the Navy Reserve, enabling additional surge
    capacity for the Navy Reserve Force at a significantly reduced cost.
    The IRR service requirement is a component of a Sailor's Military
    Service Obligation (MSO), requiring them to maintain basic readiness
    standards while affording them opportunities to voluntarily perform
    training and/or active duty to provide strategic depth to the Navy. IRR
    Sailors also maintain many of the primary benefits associated with
    military service such as access to military exchange, commissary and
    Morale Welfare and Recreation facilities, Space-Available travel,
    Psychological Health and Outreach Program (PHOP) and Sexual Assault
    Prevention and Response (SAPR) services.
        The Navy Reserve's multi-year transformation includes reimagining
    the management of the IRR to better align with the requirements of
    Adaptive Mobilization and strategic competition. Accordingly, we have
    defined critical skills for the IRR, shifting the focus from the Global
    War on Terror and Individual Augmentee (IA)-specific skills to those
    focused on maritime skills, while optimizing IRR muster processes.
    Additional enhancements include a web-based application in 2023 that
    improves the screening of IRR members and provides real-time readiness
    data of the IRR force. Since its implementation, screening has
    increased nearly two-fold over the past year, improving mobilization
    availability, recruiting, and warfighting readiness. In line with
    efforts to improve overall Navy Reserve retention, we have also
    invested in Sailors' education regarding the requirements and benefits
    associated with service in the IRR.
    Recruiting and Retention
        We are competing for talent within a discriminating labor force
    under rapidly evolving economic conditions. The labor market in the
    United States is the tightest in recent memory, with more job openings
    than people to fill them. However, the turmoil and uncertainty of the
    last few years have shown that many Americans are biased to pursue work
    for organizations that provide purpose to their lives and align with
    intrinsic values. We believe the Navy Reserve is the employer of choice
    for those seeking challenge, purpose, and personal growth within a
    cohesive community of diverse and motivated individuals. To reach our
    goals, we are at General Quarters to spread this message to talented
    Americans who are eager to serve.
        The Navy Reserve is projected to miss New Accession Training goals
    by 973 Sailors and to finish approximately 1,200 Sailors short of the
    authorized FY24 End Strength of 57,200. To address end strength
    shortfalls, reserve component recruiters have implemented parallel
    efforts to access new Sailors as well as those with prior service. To
    ensure we can fill critical gaps, the Navy Reserve must maintain a deep
    reservoir of talent, which requires active duty Sailors with prior
    service to affiliate with the Navy Reserve after leaving active Navy
    service. In 2023 the Navy established the Navy Recruiting Reserve
    Command (NRRC) and subordinate Navy Reserve Talent Acquisition Groups,
    charged with retaining Sailors transitioning from active duty for
    continued service in the Reserve Component. To better support these new
    commands the Navy also established the TAR Permanent Professional
    Recruiter community and designator. These professional recruiters
    deploy to fleet concentration areas to establish market penetration,
    facilitating the recruitment and retention of Navy Reserve Sailors.
    Additionally, NRRC established Prior Service Detachments in the five
    continental fleet concentration areas and at two locations outside the
    continental United States. These detachments are staffed with Reserve
    Benefits Advisors whose purpose is to educate Sailors on the transition
    process, as well as the benefits and opportunities associated with
    service in the Navy Reserve.
        The Reserve Force is proactively engaging in accession and
    retention strategies, including promoting transitions from Active
    Component to Selected Reserve (AC2SELRES) in Transition Assistance
    Program sessions and mandatory career development meetings. In 2023 we
    launched programs to promote enlisted SELRES members volunteering for
    critical mobilization positions to the next higher pay grade. Other
    efforts include increased bonus programs for affiliation and retention,
    broadening High Year Tenure policies for greater flexibility, and in
    the continuation of SELRES Sailors within the fiscal year. Tuition
    Assistance has been extended to SELRES members and exit surveys have
    been implemented to pinpoint further improvements for recruitment and
    retention. Additionally, the Navy also revised the Military Service
    Obligation contract to mandate 2 years of SELRES service following the
    initial 4-year active-duty enlistment for Sailors meeting specific
    Reserve Force needs, thereby retaining essential skills for strategic
    depth.
    Culture of Excellence
        In transforming the Reserve Force for strategic competition,
    Sailors form the foundation of our readiness and remain our most
    important stakeholders. The Navy Reserve Force forges a culture based
    on trust and respect, where connectedness and inclusion are key
    ingredients in every command dynamic. The Navy's Culture of Excellence
    (COE) campaign was updated with the launch of ``Forged by the Sea, COE
    2.0.'' Forged by the Sea is an approach to building great sailors,
    great teams, and great culture in every Navy command. It emphasizes
    cultivating exceptional individuals, outstanding leaders, and cohesive
    teams, recognizing this is the best way to prepare for victory in
    combat, innovate and solve hard problems, and prevent harmful
    behaviors. In 2023, the Navy Reserve implemented the Integrated Primary
    Prevention Workforce (IPPW) capability with other components of the
    DoD. This dedicated workforce addresses multiple primary prevention
    functions including suicide, substance misuse, harassment, and sexual
    assault. By the close of FY24, the Navy Reserve will have assigned nine
    Integrated Prevention Coordinators qualified as public health and
    behavior health SMEs spanning each region to focus on risk and
    prevention factors.
        The Navy Reserve is an exponentially more effective warfighting-
    ready force when it capitalizes on the diverse backgrounds,
    experiences, perspectives, and talents of those who serve. With this as
    our guiding principle, the Navy Reserve is committed to fielding a
    force as diverse as the country and harnessing the asymmetric advantage
    of our Sailors to accelerate our warfighting advantage. In aggregate,
    the diversity of the Reserve Force has increased across all categories
    over the previous five-year period. The Reserve Force will continue to
    foster inclusion and equity to harness the diverse and unique
    capabilities of our Sailors.
    Quality of Service
        The Navy's Quality of Service (QoS) initiative embodies a steadfast
    commitment to bolstering Sailors' well-being, both on and off duty,
    through robust leadership support, the institution of rigorous,
    enforceable standards coupled with transparency, and the vigilant
    maintenance of every Sailor's mental and physical health. At the heart
    of QoS are the dual pillars of Quality of Life--encompassing the lived
    experiences of Sailors and their families beyond the workplace--and
    Quality of Work, which pertains to the professional working
    environments. This fusion is critical for fostering a Culture of
    Excellence, ensuring our reserve warfighters and teams are
    unequivocally prepared to excel in their missions.
        The Navy Reserve has significantly improved the support and
    educational development for Reserve Sailors through the launch of the
    Weekend Drill Childcare (WDCC) and Tuition Assistance programs for
    SELRES Sailors. These initiatives directly tackle the well-being and
    operational preparedness of our force. The WDCC program provides
    critical childcare support during drill weekends, effectively removing
    a major barrier to our Sailors' participation and focus. Launched in
    2023, the WDCC opened the pilot to fleet-concentration areas in San
    Diego, CA; Kitsap/Bremerton, WA; Jacksonville, FL, and later expanded
    to Baltimore, MD; Fort Worth, TX; New Orleans, LA; and Ventura County,
    CA. The expansion of the Navy's Tuition Assistance program to our
    SELRES Sailors is an investment in future Navy Reserve leaders by
    supporting the higher education goals and professional development of
    all SELRES Sailors in good standing. These initiatives are not solely
    retention benefits; they represent strategic investments in our Force's
    professionalism, resilience and skills.
    Suicide Prevention
        Fostering and maintaining the well-being of Reserve Sailors,
    civilians, and their families is an imperative for a healthy, whole
    force. While the Navy Reserve has realized a consistent year-over-year
    decrease in suicide related behaviors since 2019, we continue efforts
    to offer and destigmatize mental health treatments and ensure they are
    available to all service members and their families. The Psychological
    Health Outreach Program (PHOP) provides counselors, coordinators and
    resources 24/7/365. Electronic behavioral health screenings are
    available to every Sailor and family member for immediate access to
    PHOP services while Resiliency Check-ins provide screening and
    referrals as necessary. In FY23, PHOP completed a total of 656 Reserve
    Center on-site visits and 35 virtual visits, a 21% increase from FY22,
    and 3,337 Navy Reserve Referrals. Reserve Sailors, civilians and their
    families are critical to our warfighting readiness and remain our most
    important asset--the importance of their health, wellness and safety
    remains central to our planning, investment, and assessments.
               foundation: build trust, align resources, be ready
        The Navy Reserve has undergone profound enhancements, moving from
    routine monthly drills to implementation of scenario-based exercises
    that mirror the complexities of current and projected future conflicts.
    Focusing on Warfighting Readiness ensures that Reserve Sailors are
    prepared and proficient in their designated billet, and ready to
    contribute effectively from day one of any mobilization. The Navy
    Reserve Force has modernized legacy models of mobilization, personnel
    and pay systems, and Navy Reserve Center's functions and locations to
    better support the fleet by increasing responsiveness and performance.
    The Navy Reserve Force is committed to ensuring its Sailors are
    relevant and ready to deliver maritime dominance in today's
    unpredictable security environment.
    Adaptive Mobilization
        The legacy approach to mobilization, in which individual reserve
    Sailors processed through a single centralized facility to receive
    specialized training over the course of several months, no longer meets
    the demands of a complex and rapidly changing security environment. To
    rapidly mobilize the Reserve Force at scale, Adaptive Mobilization (AM)
    processes were designed, developed and tailored to each billet, and
    distributed mobilization pathways were instituted to bring
    mobilization-ready Sailors into their active duty warfighting role
    efficiently. Employing the AM model, six regional Readiness and
    Mobilization Commands (REDCOMs) and their subordinate Navy Reserve
    Centers (NRCs) support distribution of current and future-activations
    by mobilizing the entire Selected Reserve population--roughly 47,200
    Sailors--within 30 days. This model capitalizes on the strategic
    placement of TAR staffs, located at the REDCOMS, NRCs and within the
    Fleet, and leverages the nationally distributed Reserve Center
    infrastructure unique to Reserve Forces to decentralize mass
    mobilization requirements across globally distributed regions. The Navy
    Reserve is aggressively exercising these processes through force-wide
    mobilization exercises that stress-test our capabilities and
    throughput, and drive future improvements. In 2024 the Navy Reserve
    Force conducted four mobilization exercises to validate the
    mobilization readiness of 100% of our Sailors, and to specifically
    identify and address barriers within the AM process.
    Navy Reserve Center Optimization
        The 111 Navy Reserve Centers (NRC) spread across the United States,
    Puerto Rico and Guam make up a critical support network for Reserve
    Sailors across the world. In Fiscal Year 2020, the Navy Reserve began
    an effort to optimize this network by strategically realigning TAR
    personnel to better support reserve Sailors at under-staffed NRCs and
    REDCOMs, and strategically closing a small number of NRCs. The effort
    supported and aligns with the Secretary of the Navy's 10-year
    infrastructure reset strategy, which directed the divestment of the
    Navy's facility footprint, in this case reducing the Navy Reserve
    infrastructure footprint by 10.3%. Additionally, the NRC optimization
    effort reduces the number of stand-alone, off-installation NRCs,
    decreasing risk to the force and eliminating the expense and Sailor
    dwell impact of additive Armed Watch Stander programs.
                                   conclusion
        My unambiguous focus remains warfighting readiness. We have
    transformed the Navy Reserve and delivered ready units of action and
    augmentation manpower to support Navy warfighting throughout the
    spectrum of conflict. To remain ahead of our pacing threats in the
    coming decades, we must continue to transform our force with urgency,
    to face the challenges of today while preparing for the war of
    tomorrow. Strategic and tactical guidance supports this singular goal,
    with the enduring foundation of professional, empowered, proficient
    Sailors at the core. As it has for well over a century, America's Navy
    Reserve remains ``Ready Now.'' We have made great strides in
    modernizing how we man, train, equip and mobilize the force. But we
    still have much to do.
        Today, we face a new era with new challenges. On behalf of the men
    and women of the United States Navy Reserve, thank you for your
    steadfast support of Navy Reserve Sailors, civilians, families, and
    employers. With your continued support, we will lead the transformation
    of our Navy Reserve to address the current and future global
    environment with speed and agility.

        Senator Tester. Thank you, Admiral.
        General Anderson.
    STATEMENT OF LIEUTENANT GENERAL LEONARD F. ANDERSON,
                IV, COMMANDER OF MARINE CORPS RESERVE
        General Anderson. Chairman Tester, Vice Chair Collins, and
    distinguished Members of the Subcommittee. Thank you for the
    opportunity to appear before you today to testify on behalf of
    the Commandant of the Marine Corps, about our Marine Force's
    Reserve.
        I am honored to appear with fellow Reserve Component
    Service Chiefs, and with my senior enlisted leaders, Four Star
    Major Edwin Mota; and Command Master Chief, Michael Mussett.
        The Marine Corps Reserve has always been a critical
    component of the Marine Corps' Total Force. The emergent
    picture of the intricate and multi-domain warfighting
    environments of the future increasingly reveals the risk of
    relying on the Active component alone. The problem set
    demonstrates why the Marine Corps strategically leverages its
    Reserve component in two important ways.
        First, the Marine Corps Reserve provides support to global
    Force management, and employed as a vital contributor to meet
    combatant command requirements. The Reserve component, in close
    partnership with Marine Force's Command, and the 2nd Marine
    Expeditionary Force, continues to mature the utilization of
    service-retained Forces in support of global crisis response
    operations. We provide Reserve Forces for global deployments
    that span the spectrum of conflict, and we participate in
    combat-related training exercises in every geographic combatant
    command and CYBERCOM (Cyber Command).
        Second, the Marine Corps Reserve is amplifying its talent
    management efforts. This subcommittee has been briefed
    extensively in recent years on the Marine Corps' Force Design
    Initiative. Talent management is a major focus of the Marine
    Corps and the Marine Corps Reserve. We are identifying select
    individuals with high-demand, low-density skill sets that are
    inherently challenging to acquire, and providing those Marines
    pathways to continued Military Service that are complementary
    to their civilian careers.
        Each year, this subcommittee provides National Guard
    Reserve equipment appropriation funding for the Marine Corps
    Reserve. And I am grateful for your continued support through
    NGREA. The Marine Corps Reserve is designed to be equipped at
    near parity with the Active component, and NGREA funds allow
    the Marine Corps Reserve to resource that requirement set forth
    by Congress and the combatant commanders.
        The Marine Corps Reserve would realize an even greater
    advantage by receiving NGREA funding that restores us to our
    historical share. I ask that you consider this in your future
    funding decisions.
        The Commandant of the Marine Corps recently called the
    Marine Corps Reserve ``our backbone'' and emphasized to our
    senior leaders the need to maximize the potential of our Marine
    Corps Reserve Forces by resourcing and equipping them to ensure
    they are prepared to meet the threats that face this Nation.
    Reserve Marines serve honorably while balancing their civilian
    careers and families; they bring a depth and breadth of
    knowledge to the Marine Corps that gives the Total Force an
    asymmetric advantage.
        Chairman, I am glad to be here. And thank you. And I look
    forward to your questions.
        [The statement follows:]
        Prepared Statement of Lieutenant General Leonard F. Anderson, IV
                                  introduction
        Chairman Tester, Ranking Member Collins, and distinguished members
    of the Subcommittee, it is my privilege to testify on behalf of the
    Commandant of the Marine Corps. This testimony will provide an overview
    of the current state of the Marine Corps Reserve and the
    responsibilities that your Reserve Marines and Sailors have in our
    national security and will highlight the significant progress we have
    made in recent years.
        The Marine Corps Reserve is a critical component of the Marine
    Corps Total Force, providing essential capabilities and capacity to
    compete with our adversaries and respond to global crises. We exist to
    fight and win our Nation's battles. The Marine Corps Reserve is not
    simply a surge force; our capacity is essential to meet the demands of
    the 21st century and further enhance the pillars of Force Design. With
    the rise of new threats and the evolving nature of future conflict, the
    Marine Corps Reserve is ready and able to adapt and compete in this
    ever-changing environment.
        Our commitment to readiness is unwavering. We continue to exercise
    and adapt our activation and mobilization processes, and we are
    constantly working to improve the training and skills of our Marines
    and Sailors. We are also focused on identifying, developing, and
    retaining the best talent. Our Marines and Sailors are our most
    valuable asset, and we are committed to providing them with the tools
    and resources they need to succeed.
        I am confident that the Marine Corps Reserve is ready to meet the
    challenges of the future. We are a relevant, ready, and responsive
    force, and we are committed to serving our Nation with honor.
                               talent management
        In the dynamic and evolving landscape of modern warfare, the Marine
    Corps Reserve recognizes the imperative of effective talent management
    as a cornerstone for success. To emerge victorious in the intricate and
    multi-domain warfighting environments of the future, our Marines must
    attain and sustain advanced technical, intellectual, and physical
    capabilities. Moreover, they must operate adeptly in distributed and
    ambiguous scenarios.
        The Marine Corps strategically leverages the Reserve Component to
    address its need for a broader spectrum of high-demand/low-density
    skillsets that are inherently challenging to acquire and retain. We
    acknowledge the limitations of relying on the Active Component alone
    and are committed to attracting and retaining diverse individuals with
    unique talents and skills across the total force. Simultaneously, we
    strive to provide pathways to military service harmonious with the
    pursuit of civilian careers for our Reserve Marines.
        Aligned with overarching service goals, the Marine Corps actively
    embraces new initiatives to enhance career flexibility and cultivate
    talent within the Reserve Component. Our commitment to the Commandant's
    Talent Management 2030 initiative is a significant stride in this
    direction. New initiatives to maximize permeability across the total
    force include a streamlined process for Reserve Component officers to
    request transition to the Active Component and a reinvigorated emphasis
    on the Direct Affiliation Program (DAP), which creates new
    opportunities for departing Active Component Marines, equipped with
    valuable skills, to seamlessly transition into the Reserve Component.
    During FY23, active component units received goals for direct
    affiliation from active to reserve, and this program resulted in 1,094
    Marines approved. The FY24 direct affiliation goal is 2,000 and is on
    track for success. Direct affiliation demonstrates one of many
    permeability efforts that seeks to retain talent within the service.
    The Marine Corps Reserve will continue to develop innovative policies,
    pathways, and tools designed to capture, catalog, and maintain
    visibility of our diverse pool of talent, ensuring these Marines have a
    path for future service.
                                 modernization
        The Marine Corps Reserve, operating as both a strategic and
    operational Reserve, is a critical part of the Total Force Marine
    Corps. As the Marine Corps remains the naval expeditionary force-in
    readiness in support of Naval Campaigning, Strategic competition, and
    crisis response the Reserve Component (RC) continues to be an integral
    element of the planning effort. The Marine Corps' force design process
    is strategy-driven, threat-informed, and concept-based. Force
    development is subsequently pursued through deliberate experimentation,
    wargaming, integrated planning, and studies and analysis that inform an
    ongoing and iterative campaign of learning to identify what is
    effective and required. The Marine Corps Reserve participates in and
    provides support to this force design and development effort while
    remaining a vital global contributor in meeting combatant command
    requirements.
        AC forces have been rapidly modernizing under the direction of
    multiple administrations' National Security Strategies (NSS) and
    National Defense Strategies (NDS). The RC modernization leverages the
    iterative experimentation, learning, and refinement being accomplished
    by AC forces and complements AC formations as they transition to new
    capabilities. The RC remains nested with all Service-related
    initiatives supporting modernization. As part of a phased modernization
    with the Active Forces, RC forces will continue to modernize while
    assessing risk and balancing the Services' ability to remain ready,
    relevant, and responsive as a vital contributor in support of Combatant
    Command requirements. Additionally, the Reserve Component, in close
    partnership with Marine Forces Command and II Marine Expeditionary
    Force, continues to mature the concept of Service Retained Forces (SRF)
    in support of global crisis and contingency response operations. The
    SRF concept demands will uncover needed adjustments to RC capabilities
    and platforms and illuminate the vital role the RC plays in supporting
    campaigning in competition and fighting and winning in conflict.
                         innovation and experimentation
        The establishment of Littoral Craft Companies (LCC) is a
    comprehensive initiative producing strong linkages across several
    Marine Corps Reserve lines of effort (LOEs). The initiative supports
    numerous key objectives including Site Optimization, Talent Management,
    New Platforms and Technologies Integration, Experimentation and
    Wargaming Support, as well as Service component integration in a way
    that effectively aligns broad aspects of the Marine Corps Reserve's
    strategic vision.
        Transitioning C and D Companies, 4th Amphibious Assault Battalion
    (Galveston, TX and Tampa, FL respectively) into LCCs presented an ideal
    Talent Management and Site Optimization opportunity with the bonus of
    integrating new Platforms and Technology in the form of littoral craft.
    In partnership with the Defense Innovation Unit, the Marine Corps is
    pursuing a rapid procurement of these dual-use, commercially available
    vessels through an area of interest solicitation to the Defense
    Industrial Base. This highly flexible process offers direct access to
    vendors capable of producing state-of-the-art littoral craft for the
    Marine Corps Reserve on an aggressive delivery timeline.
        Capability development is already underway in key focus areas to
    include ``Training and Training Sustainment'' and ``Littoral Maneuver
    Craft Characteristics.'' As directed by the Service following LCC
    initiative approval, the Marine Corps Reserve has held numerous
    planning sessions to define the mission, training and readiness
    standards; individual and unit mission essential tasks; military
    occupational specialty requirements; and other fundamental
    characteristics necessary for relevant operational employment.
    Incorporating strategic linkages and supported external entities, this
    planning accelerates and informs institutional solutions to known
    littoral maneuver capability gaps.
                               fiscal stewardship
        As we invest in new platforms, barracks, and training, it is our
    responsibility as good stewards of taxpayer funds to continue to prove
    that when the Corps is provided a taxpayer dollar, we can show exactly
    where and how it has been invested--a responsibility we take very
    seriously. Following a rigorous two-year audit, the Marine Corps
    achieved an unmodified audit opinion, the best possible outcome--and
    the first time in the Department of Defense's history that any service
    has received an unmodified audit opinion. These results demonstrate how
    seriously the Marine Corps takes its stewardship of taxpayer funds and
    our ability to account for and put to best use every dollar trusted to
    the service. This audit supports what we have believed for a long
    time--when Congress provides the Marine Corps a dollar, we invest it
    wisely, and we can tell you exactly where and how it was spent to
    further our Nation's national security objectives. The Marine Corps
    worked with Independent Public Accountants to validate budgetary
    balances and records and to audit physical assets at installations and
    bases across the globe. These actions included counting military
    equipment, buildings, structures, supplies, and ammunition held by the
    Marine Corps and our DoD Partners. The audit's favorable opinion was
    only possible through the support and hard work of numerous dedicated
    Marines, civilian Marines, and many other partners across DoD.
    Nonetheless, we will not rest on our laurels; the audit report pointed
    out some areas for improvement, and we will use these recommendations
    to make our fiscal practices even better.
                                 a total force
        Throughout the past year, the Marine Corps Reserve supported
    Combatant Commander requirements by providing reserve forces for global
    deployments that span the spectrum of conflict. In FY23, 621 Reserve
    Marines joined their Active Component counterparts in deployments that
    supported 20 operational requirements across five geographic Combatant
    Commands. Thus far in FY24, the Marine Corps Reserve has activated 241
    Marines in support of five Combatant Commands and is forecasting the
    activation of more than 600 Reserve Marines to support 19 separate
    formations throughout the remainder of FY24. These operations
    significantly increase the Reserve Component's readiness and
    interoperability with the Active Component, Joint Forces, allies, and
    coalition partners. Planning is currently underway for increased
    activations and deployments, possibly double or triple those of FY24,
    that integrate Reserve forces with the Active Component commencing in
    FY25 with continued employment through 2030 in support of high-priority
    Combatant Command requirements.
        In addition to participating in operations, the Marine Corps
    Reserve conducts a wide array of combat-related training exercises
    around the world. The purpose of these exercises is to improve the
    Marine Corps Reserve's combat readiness, retain talent, and foster
    improved international relations and interoperability between allied
    nations and partners. In FY23, the Marine Corps Reserve led or
    participated in 46 military exercises across every warfighting domain
    in 16 countries, contributing 8,498 Reserve Marines. To date in FY24,
    the Marine Corps Reserve is forecasted to participate in 52 exercises
    globally, with a total force of 6,396 Reserve Marines.
        The Marine Corps Reserve focuses on operational readiness within
    the Marine Air Ground Task Force and the Joint operational environment.
    Joint aviation assets from the Marine Corps, Navy, Air Force, Air
    National Guard, and the Marine Corps Reserve (who planned and led the
    event) conducted Tactical Air Control Party training to sustain Joint
    Terminal Air Controller (JTAC) qualifications at Camp Shelby,
    Mississippi, and San Clemente Island, California. This training
    benefitted all participating Services by enabling fixed, rotary wing,
    and unmanned aviation platforms to achieve mission-essential training
    in close air support while certifying Reserve Marine JTACs.
        The Marine Corps Reserve participates in the Department of Defense
    (DoD) Innovative Readiness Training (IRT) Program, which provides
    joint/military training in the United States and its territories to
    increase deployments and unit readiness. In 2023, the Marine Corps
    Reserve participated in thirteen exercises under the IRT Program, two
    of which involved both Active and Reserve forces. Our participating
    units were able to train to mission essential tasks involving both
    horizontal and vertical construction, logistical support,
    communications, and medical care while making tangible, meaningful
    impacts in communities located in South Dakota, Hawaii, California, New
    Mexico, Tennessee, Maryland, Louisiana, Texas, Missouri, and Indiana.
    With Congress's continued support of these efforts, the Marine Corps
    Reserve looks to expand its footprint in this program to include
    airlift, construction, medical, and cybersecurity efforts.
        The Marine Corps Reserve also supports the Total Force by executing
    the sensitive and crucial mission of providing casualty assistance to
    the families of our fallen Marines. There is no responsibility we treat
    with higher regard than this solemn mission. Inspector-Instructor (I-I)
    and Reserve Site Support staffs are geographically positioned to
    accomplish the vast majority of Marine Corps casualty assistance calls
    and are trained to provide compassionate and thorough assistance to
    families. Most Marine Corps casualty notifications and follow-on
    assistance calls to the next of kin are made by our Reserve Marines.
    During FY23, I-I and Reserve Site Support staffs supported over 75% of
    the 468 active casualty calls performed by the Marine Corps, and Marine
    Corps Reserve units performed 94% of the 20,475 total funeral services
    provided by the Marine Corps for former Marines.
                                   equipment
        The Marine Corps Reserve is designed to be equipped at near parity
    with its active component counterpart due to the Total Force approach
    to equipment fielding. To maximize the potential of our reserves, we
    must ensure adequate investment in Reserve equipment to ensure the
    modernization and readiness of our Reserves. Equipment modernization
    and improved readiness are key factors that allow the Marine Corps to
    keep pace with future threats and preserve operational agility.
    However, the high demand for Reserve units and the resulting high
    operational tempo stress the Marine Corps Reserve's ability to maintain
    equipment and replenish deficiencies. Delays in appropriations have
    affected the Marine Corps' modernization efforts, as well as its
    ability to divest legacy equipment. The Marine Corps Reserve's cost to
    maintain its legacy equipment continues to increase, adversely
    affecting unit training and overall readiness. Inadequate or delayed
    fielding, coupled with delays in the appropriation of funds, disrupts
    our ability to program long-term equipping activities and challenges
    our efforts to improve current and future readiness.
        The Marine Corps Reserve mitigates risk and ensures material
    readiness through Training Allowances (TA). Reserve units maintain
    equipment based on the unit's TA, which is the portion of the unit's
    full Table of Equipment (T/E) necessary for maintaining training
    readiness at Reserve Training Centers. This method ensures the
    necessary amount of equipment to train, maintain, and store remains on
    hand within personnel and facility constraints. All equipment above the
    TA (the difference between the TA and the T/E) is stored at Marine
    Corps Logistics Bases and other ``in stores'' locations. Several
    factors affect maintenance efforts and priorities across the RC. These
    factors include reliance on personnel to identify and perform
    preventative and corrective maintenance, operation and exercise of the
    equipment sets, and targeted fiscal resourcing decisions. Leveraging
    Operations and Maintenance, Marine Corps Reserve (O&M MCR) funding to
    employ Marine Logistics Command mobile maintenance support teams helps
    augment our limited organic maintenance capacity. We also utilize a
    Service-managed third-party logistics provider to repair secondary
    components that cannot be repaired organically due to limited
    intermediate maintenance capacity. Congressional support for Reserve
    funding as specified in the FY 2025 President's Budget Request is
    paramount to our continued success in sustaining equipment and
    maintenance readiness.
                                   facilities
        The Marine Corps Reserve occupies 158 Reserve Training Centers in
    47 states, the District of Columbia, and the Commonwealth of Puerto
    Rico. Among these, 28 sites are owned and maintained by the Marine
    Corps Reserve, while the remaining 130 Reserve Training Centers are
    categorized as ``tenant'' status and owned by other Services. Through
    support agreements, the Marine Corps Reserve assumes maintenance
    responsibility for facilities at 113 of these tenant sites. Over the
    past 2 years, the Marine Corps Reserve has dedicated significant
    efforts to rectifying and ensuring the accuracy of our real property
    records, aligning them with our complete sustainment funding
    requirement. Among the total 158 sites, some Reserve Training Centers
    are situated within major DoD installations, while the majority are
    dispersed across civilian communities, encompassing residential
    neighborhoods to industrial and commercial districts.
        Traditionally, the Marine Corps Reserve has committed 100% of the
    facilities budget to support the sustainment, maintenance, and
    modernization of existing infrastructure and day-to-day operating
    costs. Because of this investment and commitment, we have improved the
    overall readiness of our facilities. Moreover, through the
    comprehensive utilization of the Facilities Sustainment, Restoration,
    and Modernization (FSRM) program, we have also retained and improved
    facilities that were deemed vital to support the Marine Corps Reserve's
    mission.
        Presently, our focus is on identifying significant FSRM projects
    for future funding. Simultaneously, we are actively engaged in efforts
    to maximize efficiency. This includes a strategic approach to cost
    reduction and funding savings through the realignment of facilities and
    the demolition of excess footprint. As part of this initiative, the
    Marine Corps Reserve is currently in the process of reprioritizing five
    sites, realizing savings ranging from approximately $200k to $300k per
    site.
        As we capitalize on utilizing the Military Construction, Navy
    Reserve (MCNR) program, our focus is on providing construction for new
    and enduring capabilities and recapitalizing our aging facilities. The
    construction projects enabled by the annual authorization and
    appropriation of MCNR funding are a significant factor in advancing our
    facilities support mission, especially as we optimize our force laydown
    throughout the Nation. Continued support for our MCNR program funding
    requests is essential for planning and execution to modernize our
    capabilities and, when needed, to divest from infrastructure or
    facilities that no longer meet the mission.
        The combined effects of our targeted site consolidations, FSRM, and
    MCNR Programs have steadily reduced the number of inadequate or
    substandard Reserve Training Centers and enabled improved support to
    Reserve units and personnel. However, as our infrastructure ages, the
    operating costs have steadily increased due to the requirements for
    more secure communications and classified spaces within these
    facilities and these requirements will continue to rise as the Marine
    Corps modernizes to meet the requirements of the National Defense
    Strategy.
        The safety of our Marines, Sailors, and their families is of utmost
    importance; therefore, we are actively engaged in ongoing efforts to
    improve the overall force protection at all our sites. We take pride in
    working with our Service partners and the National Guard to improve
    security at our sites where joint occupation is optimal. Throughout the
    last 10 years, numerous force protection assessments have been
    conducted at our facilities, and security-engineering reports have been
    generated to assist in developing designs that mitigate protection
    concerns, specifically within the realm of physical security. These
    assessments identify requirements and serve to prioritize enhancements,
    ultimately improving the overall facility security for our Marines,
    Sailors, and their families.
                     sexual assault prevention and response
        For the Marine Corps Reserve, improving the health and safety of
    our service members by fostering a culture of dignity and respect are
    top priorities, as they are vital to reducing and ultimately
    eliminating sexual assault within our ranks. The Marine Corps Reserve
    has a unique and adaptable Sexual Assault Prevention and Response
    (SAPR) Program that provides training, advocacy, guidance, and
    supportive services across our geographically dispersed force.
        The Marine Corps Reserve SAPR Program is undergoing many vital
    staffing and structure changes in response to the Independent Review
    Commission (IRC) on Sexual Assault in the Military in accordance with
    the recommendations approved by the Secretary of Defense. These changes
    begin by adding more full-time civilian SAPR personnel to strengthen
    the effectiveness of both prevention and response efforts, and there is
    an accelerated effort to fill all of the required positions at all
    levels simultaneously.
        The Marine Corps Reserve operates a dedicated Sexual Assault
    Support Line that is staffed 24/7 by their professional SAPR team. It
    also actively publicizes the DoD Safe Helpline, a resource that offers
    crisis support services for members of the DoD community.
                                quality of life
        The Marine Corps Reserve is dedicated to ensuring quality of life
    programs are designed to effectively assist all Reserve Marines,
    Sailors, and their families, whether deployed or on the home front.
    Marine Corps Community Service (MCCS) programs are flexible and are
    continually adjusting to meet the needs of our geographically dispersed
    Reserve Marines and their families. The training programs provided to
    our commanders, Family Readiness Command Teams, and Marines and Sailors
    and their families contribute to a ready and resilient force equipped
    to succeed. The Marine Corps Family Team Building (MCFTB) Program
    enhances readiness through non-clinical preventive education,
    professional training, and community-building support throughout the
    wide array of mission, life, and career events. During FY23, the Marine
    Corps Reserve conducted 267 training events in which 10,427 Marines,
    Sailors, and family members received essential information to assist
    them throughout the deployment cycle. These events helped them prepare
    for and flourish during deployments and achieve a positive post-
    deployment reintegration experience.
        The Marine Corps emphasizes the importance of readiness for Marines
    and family members in many areas of life. The Marine Corps Personal and
    Professional Development Programs provide training and educational
    resources to increase awareness and build individual and family
    development skills. These programs enhance the quality of life for our
    military community by promoting self-reliance and self-sufficiency, as
    well as continuing the tradition of ``taking care of our own.'' The
    Marine Corps Personal and Professional Development Programs include
    transition readiness, personal financial management, voluntary
    education, and information and referral.
        The Marine Corps Transition Readiness Program (TRP) is a
    comprehensive program that helps Marines and their families develop and
    attain effective post-transition employment, educational, and
    entrepreneurship goals. The Marine for Life Network helps to link our
    Marines to employment, education, and community resources in their
    hometown areas to support their future goals. A virtual course is
    available for Marines who are not located near a military installation.
    In FY23, the Marine Corps Reserve transition staff assisted 761 Marines
    with pre-separation counseling and 618 Marines with capstone
    completion.
                                   conclusion
        As the operational environment changes, your Marine Corps Reserve
    will continue to innovate and evolve in order to meet future challenges
    and deter the pacing threats as prescribed in the National Defense
    Strategy. The key to our success has been and will continue to be
    individual Marines, Sailors, and their families. Your Reserve Marines
    will continue to answer their Nation's call to serve, and with your
    continued support, we will remain ready. Semper Fidelis.

        Senator Tester. Thank you, General.
        General Healy.
    STATEMENT OF LIEUTENANT GENERAL JOHN P. HEALY, CHIEF OF
                AIR FORCE RESERVE
        General Healy. Chairman Tester, Vice Chair Collins,
    distinguished Members of the Subcommittee, on behalf of the
    69,600 men and women of the Air Force Reserve, it is an honor
    to be here today with my Senior Enlisted Advisor, Chief Master
    Sergeant Israel Nun?ez. We are both continually amazed at the
    accomplishments of our Reserve Airmen as they meet every
    challenge given on behalf of this Nation.
        The Air Force Reserve provides an operational capability,
    strategic depth, and surge capacity across every Air Force core
    mission set. We provide a ready now, accessible Force that is
    both mission-effective, and cost-efficient.
        Since last October, Air Force Reserve personnel and
    aircraft have mobilized, within 72 hours, to fill critical
    airlift and air refueling missions in support of CENTCOM
    (Central Command) and TRANSCOM (Transportation Command). To
    date, in fiscal year 2024 Reserve Airmen have accomplished over
    68,000 man-days in support of Levant operations.
        As effective and efficient as we are, the Air Force Reserve
    must transform for the future. This requires proportional
    modernization and concurrent fielding with the regular
    component. Maintaining equipment parity ensures our ability to
    match pacing threats. Legacy aircraft investment without
    recapitalization, and delayed modernization, add substantial
    risk to our surge capacity.
        It is imperative that our funding reflects proportional
    distribution as well. While our 2025 budget request is
    relatively flat compared to fiscal year 2024, it is designed to
    preserve readiness. However, the recent SAC-D (Senate
    Appropriations Committee--Defense) markup recommends a $111
    million reduction to our operations and maintenance budget.
    This 2.7 percent overall reduction is proportionally 90 times
    greater than the Active Component's 0.3 percent reduction in
    O&M (Operation and Maintenance). This puts substantial risk to
    our Flying Hour Program.
        I respectfully request SAC-D address this imbalance during
    markup, ensuring equitable funding that maintains our readiness
    as well.
        We are grateful to Congress for NGREA funding. NGREA
    enables us to modernize or replace equipment when
    recapitalization by the Active Component is infeasible. For
    fiscal year 2025, SAC-D has proposed an NGREA allocation of
    $124 million for the Air Force Reserve, a $31 million reduction
    from fiscal year 2024, and we would appreciate your support to
    increase this allocation, enabling us to field a more lethal
    and survivable Force.
        While equipment is critical, our most important weapon
    system is and always will be our Airmen. Two of our most
    significant lines of effort focus on providing accessible and
    affordable child care and access to healthcare for family
    members with special needs through the Exceptional Family
    Member Care Program.
        Over the past seven decades plus, the Air Force Reserve has
    provided combat-proven readiness. I am certain the Air Force
    Reserve will always be ready to defend our great Nation now and
    in the future.
        Thank you for the opportunity to appear before you today,
    for your continued support of the Air Force Reserve, our
    citizen, Airmen, and their families. And I look forward to your
    questions.
        [The statement follows:]
             Prepared Statement of Lieutenant General John P. Healy
                        united states air force reserve
        The Air Force Reserve is a combat-ready force, with a Fiscal Year
    2024 (FY 2024) authorized end strength of 69,600 Reserve Airmen,
    stationed throughout the United States. As a cost-efficient and
    mission- effective force, the Air Force Reserve provides the Nation
    with operational capability, strategic depth and surge capacity, both
    overseas and at home. The Air Force Reserve's wide-ranging operational
    capabilities serve the diverse needs of every Combatant Commander,
    whose requirements are as varied as the geographic and functional areas
    they support.
        With 74 percent of our Reserve Airmen serving part-time, their
    combat-tested experience is retained in a cost-efficient force,
    available whenever our Nation calls. The Nation benefits from the
    intrinsic value gained by a Reserve member's civilian experience in a
    variety of careers, from pilots and nurses to teachers and cyberspace
    professionals, enhancing our mission with a broad spectrum of
    professional insights and capabilities.
        The Air Force Reserve directly supports the United States and
    neighboring countries with special capabilities, including weather
    reconnaissance, better known as the ``Hurricane Hunters,'' aerial
    firefighting and aerial spray. The Air Force Reserve's relationship
    with other Federal agencies, including the National Weather Service and
    U.S. Forest Service, demonstrates how Federal, military and civilian
    organizations work together to support the entire Nation.
        The Air Force Reserve is a proven part of the Total Force and vital
    to the Department of the Air Force's (DAF) effort to address the four
    National Defense Strategy (NDS) priorities: defending the homeland,
    deterring strategic attacks, deterring aggression and building a
    resilient joint force. We execute the full spectrum of DAF missions,
    providing strategic depth and maintaining operational readiness to
    deter our adversaries, defend the United States, our Allies and
    partners, and respond to any contingency--at a fraction of the cost of
    the full-time members of the U.S. Space Force and the Regular Component
    of the U.S. Air Force.
        As the DAF confronts the challenges presented by Great Power
    Competition (GPC), the Air Force Reserve stands ready to ensure its
    success. Air Force Reserve Command (AFRC) is the most diverse Major
    Command (MAJCOM) in the DAF and with nearly three-quarters of our force
    serving in a part-time status, we are optimized for Great Power
    Competition by providing surge capacity and strategic depth. Emerging
    threats demand a resilient, experienced, and accessible force that is
    responsive, agile, and lethal--all of which are attributes of the Air
    Force Reserve. Our cost-effective framework amplifies resource
    utilization while upholding fiscal responsibility. Focused on talent
    retention, we draw from a deep pool of institutional knowledge with
    robust support for Reserve Airmen. This approach not only bolsters our
    strategic depth but also keeps us resilient and adaptable, essential
    for maintaining a competitive edge.
              air force reserve fiscal year 2025 posture statement
        Total Force operations require Total Force investments. The Joint
    Force faces a complex battlespace across multiple domains. As two parts
    of the DAF, the U.S. Space Force and the Regular Component of the U.S.
    Air Force are working to fulfill the NDS priority of building a
    resilient joint force and defense ecosystem. As part of the Total
    Force, the Air Force Reserve ensures the DAF can achieve these efforts.
    Our mission capabilities rest on one foundation--our people. Our
    Reserve Airmen must be able to work side by side with the U.S. Space
    Force and our Regular Component partners in the U.S. Air Force. To do
    that, the Air Force Reserve must train and equip our Reserve Airmen in
    a manner that is proportional and concurrent with the Regular
    Component. This will ensure we remain a credible operational and
    strategic reserve that can provide a surge capacity in crisis or
    contingency.
        Our FY 2025 budget request invests in foundational accounts,
    focused on preventing year over year degradation, to maintain the
    capabilities and readiness required to defend the homeland. The Fiscal
    Responsibility Act dramatically increases the importance of the timely
    approval of the FY 2025 budget request. Continuing Resolutions delay
    budgets and prevent the Air Force Reserve from receiving the funding it
    needs to maintain operational readiness.
        With Congress' support, we continue to improve our strategic
    readiness. I issued a Task Order upon taking Command of Air Force
    Reserve Command in 2022 that emphasized two priorities: Ready Now and
    Transforming for the Future. The order empowers Reserve Airmen to own
    their individual readiness and established accountability across the
    entire Command to be the Reserve the Nation needs. We issued a revision
    to the Task Order in 2023 and developed metrics that allowed us to
    track our progress to maintain operational readiness and transform for
    the future. By employing data analytics coupled with new tools and
    processes, we are making timely and informed programmatic decisions. We
    developed and refined data visualization tools, like the Status of
    Funds and Flying Hour Tools, that allow us to make timely and informed
    programmatic decisions. We are implementing policy reform that
    facilitates modernization and reduces administrative requirements. The
    result is an agile and judicious execution of financial resources. The
    timely approval of our FY 2025 budget request will enable the Air Force
    Reserve to continue improving operational readiness while also
    transforming into a data dominant Command. We hold ourselves
    accountable from planning to execution of a comprehensive and effective
    strategy to build a ready force and transform the organization.
        The Air Force Reserve will support the DAF as it makes hard choices
    in Air and Space power modernization to keep pace with our strategic
    competitors. Airpower and Spacepower modernization are necessary to
    address the four NDS priorities, which depend upon effective Command
    and Control capabilities that are survivable in the threat environment
    of today and tomorrow. In this joint endeavor, the Air Force Reserve
    plays a pivotal role, ensuring seamless integration with the Regular
    Component. For the Air Force Reserve to remain a viable contributor to
    joint operations, the Total Force must maintain equipment parity and
    interoperability. These modernization investments require a balance
    between current and future risk. Some current capabilities must be
    divested to ensure we have the Reserve Force necessary to prevail in
    potential future conflicts. As our strategic environment changes, the
    risk is increasing over time, requiring hard choices to keep pace with
    evolving threats. We appreciate Congressional support as the Air Force
    Reserve prioritizes concurrent modernization and proportional fielding.
    This modernization and proportionality are coupled with a DAF-wide
    effort to re-optimize every aspect of the Department around GPC. The FY
    2025 budget continues to integrate Air Force Reserve capabilities with
    the DAF to ensure that we can serve as a Total Force contributing to
    the Joint Force.
        Reserve Airmen and their families are the foundation of our
    operational readiness, capabilities and organizational success. Our
    Airmen's diverse talent and depth of experience are force multipliers.
    Their dedication to our mission is second to none and we owe our Airmen
    stability and predictability. The Air Force Force Generation (AFFORGEN)
    model will increase predictability and lessen Reserve Airmen's time
    away from family and the financial burdens they may incur being away
    from their civilian occupations.
        The Air Force Reserve value proposition is simple: we are a cost-
    effective strategic force that is experienced, accessible and ready. We
    will use budgeted funds to ensure the Air Force Reserve has the
    capabilities and training required to generate combat power for the
    future security environment. We also ensure that the Total Force is
    ready to answer our Nation's call. Congress's support of our FY 2025
    budget request will ensure the Air Force Reserve has the continued
    ability to organize, train and equip our Reserve Airmen and remain a
    ready force to defend our Nation and its interests.
                air force reserve's role in defending the nation
        The Air Force Reserve is codified in law to provide trained and
    qualified personnel available to the Joint Force and Regular Component
    in time of war, national emergency, or in response to a crisis or
    contingency. Recognizing that Joint Warfighters need Air and Space
    Power, the DAF plays a critical role in defending the homeland,
    deterring strategic attacks, deterring aggression and building a
    resilient joint force. Because operational demands fluctuate, the
    Regular Component cannot be manned to meet peak demands and is
    therefore right-sized for steady-state operations. The Air Force
    Reserve provides the strategic depth and operational support the DAF
    needs to meet these demands. This requires Reserve Airmen to be
    organized, trained and equipped in line with the Regular Component to
    be a ready, resilient and combat-credible force in reserve.
        Secretary of the Air Force Frank Kendall is posturing the DAF to
    meet the challenges of Great Power Competition. At the Air and Space
    Force Association Warfare Symposium in February 2024, he unveiled 24
    decisions which are designed to optimize how the U.S. Air Force and the
    U.S. Space Force organizes, trains and equips their forces. During this
    period of optimization, the Air Force Reserve is ready to ensure the
    DAF's success. The DAF has identified key areas for review, investment
    and re-optimization. The Air Force Reserve will be an important part of
    this transformation and needs to be considered in all the DAF's
    efforts.
    Core Functions
        Our ability to meet current taskings and to maintain a strategic
    reserve capacity are predicated on equipment parity and our readiness.
    The Air Force Reserve provides daily operational support to the Joint
    Force, while maintaining a ready and accessible strategic force during
    major conflict or surge operations in an unforeseen event, such as
    national disasters and contingencies. We also contribute to the DAF's
    five core functions.
                Air and Space Superiority
        Preserving the advantage in air and space during GPC requires
    generating combat power in contested environments. Maintaining
    equipment parity with the Regular Component ensures our ability to
    match pacing threats and secure air and space superiority. Legacy
    divestiture without recapitalization and delayed modernization programs
    adds substantial risk.
        The Air Force Reserve provides vital experience to the DAF's 5th
    Generation fighter capabilities. The Air Force Reserve's first unit-
    equipped F-35 wing at Naval Air Station (NAS) Joint Reserve Base (JRB)
    Ft Worth, Texas is on track for first aircraft arrival in FY 2024 as
    the unit converts from F-16s to F-35s. We currently execute F-35 Combat
    Operations through our Classic Association, with the Regular Component
    as the lead organization, at Hill Air Force Base (AFB), Utah. We
    conduct F-35 Formal Training at Luke AFB, Arizona and Eglin AFB,
    Florida through Classic Associations. We also perform Operational Test
    and Weapons Instructor Courses at Nellis AFB, Nevada through a Classic
    Association. The experience of our Reserve pilots and maintainers in
    all aspects of 5th Generation fighter operations reduces costs and
    improves both the Reserve and Regular Components. The Classic
    Association at Joint Base Elmendorf Richardson, Alaska demonstrates
    this with the Reserve Airmen of the 477th Fighter Group being the most
    experienced F-22 pilots and maintainers in the world. They lower
    training costs for the Regular Component and will be one of the first
    units to engage an adversary in the event of a conflict in the Pacific.
    The Air Force Reserve ensures the preservation of experience across the
    fighter community. An Active Association, with the Reserve component as
    the lead organization, at Nellis AFB, Nevada is responsible for the
    Aggressor mission flying pre-block F-16s in support of many Joint and
    Coalition exercises. These Reserve Airmen ensure wartime readiness
    across all mission sets within the Total Force.
        The establishment of the U.S. Space Force underscored the
    criticality of space operations to our National Security. Recent space
    weapons tests by our strategic competitors amplifies this point. With
    just under 1,400 space professionals conducting 26 percent of daily
    missions, the Air Force Reserve is a major contributor to United States
    Space Command (USSPACECOM) taskings. The Air Force Reserve also
    provides 50 percent of the Total Force's Space Aggressor capability.
    Many of our Reserve Airmen bring civilian experience from the aerospace
    industry and provide the U.S. Space Force an experienced workforce who
    are a force multiplier that ensures Space Superiority. In 2023, over
    200 Reserve space operators mobilized domestically and abroad to
    conduct space operations in support of Combatant Commander
    requirements. The Air Force Reserve will continue to provide focused
    support to the U.S. Space Force and USSPACEOM.
                Intelligence, Surveillance and Reconnaissance (ISR)
        Our ISR enterprise is optimized to provide strategic depth and
    operational surge capacity in traditional and emerging mission sets.
    Currently the ISR enterprise supports distinct intelligence functions
    such as Targeting, Signals Intelligence, Human Intelligence, Geospatial
    Intelligence, Measurement and Signatures Intelligence and Acquisition
    Intelligence. The enterprise drives operations by providing ISR to
    Special Operations, Combat Air Force, Mobility Air Force, Cyber, Space
    and Combat Operations Squadrons (COS). We continue to develop
    capabilities that support the Joint Force while ensuring current
    mission sets provide decision advantage against pacing threats.
        There are 3,300 ISR Reserve Airmen supporting every Air Force
    MAJCOM and all the Functional and Geographic Combatant Command
    Intelligence Directorates. As the DAF realigns for GPC, ISR will play a
    critical role ensuring the Air Force Reserve has access to Sensitive
    Compartmented Information Facilities (SCIF) to be part of Next
    Generation Air Dominance (NGAD) systems. The Air Force Reserve
    continues to invest in the training and development of Chinese and
    Russian linguists. Air Force Reserve ISR units are available to the
    Global Force Mission Allocation Plan (GFMAP) enabling the Regular
    Component and Combatant Commands access to dependable critical
    capabilities and personnel.
                Rapid Global Mobility
        Global power projection through Rapid Global Mobility hinges on a
    robust Airlift enterprise and the extended range provided by a modern
    aerial refueling fleet. The Air Force Reserve enables combat delivery
    through our Strategic and Tactical Airlift fleets. The C-5M provides 21
    percent of the Air Force's Strategic Airlift capacity and the Air Force
    Reserve provides 65 percent of the total aircrews and 100 percent of
    student aircrew training capabilities for the C-5 community. The C-17
    provides 79 percent of the Air Force's Strategic Airlift capacity and
    the Air Force Reserve provides 31 percent of aircrews for the C-17. The
    Air Force Reserve's C-5 and C-130H fleets continue to face sustainment
    challenges due to aging aircraft, diminishing vendors and increased
    parts costs. Each of our mobility platforms require continued
    investment in modernization to ensure survivability in contested
    environments. In FY 2024, the Air Force Reserve is forecasted to
    perform 50 percent of C-17 and 31 percent of KC-135 long term orders
    for U.S. Transportation Command. In addition to the mobility platforms,
    the Air Force Reserve provides the majority of the Aeromedical
    Evacuation (AE) global capability through 18 Aeromedical Evacuation
    units with over 1900 assigned airmen. AE units deploy every 6 months in
    every deployment cycle, supporting over 60 percent of the aeromedical
    mission. Finally, Airmen assigned to Aerial Ports Squadrons (APS) make
    a significant contribution, accounting for a remarkable 45 percent of
    the Air Force's overall air transportation capability and leading the
    way in 42 percent of rotational deployments to several combatant
    commands, thereby underscoring their contribution to global power
    projection and military readiness.
                Global Strike
        Global Strike allows the United States to project military power
    rapidly around the world. The U.S. Air Force and U.S. Space Force
    provide deterrence through nuclear and conventional weapons systems and
    the Air Force Reserve is committed to ensuring both are credible.
    Nuclear capability is foundational to our national security and Nuclear
    Deterrence Operations assets include Nuclear Strike, Air Refueling, and
    Nuclear Command, Control and Communications capabilities (NC3). To
    modernize the Air Force Reserve's capabilities and maintain Total Force
    interoperability we are equipping all seven of our NC3 capable command
    posts with the new primary strategic communication system, the Global
    Aircrew Strategic Network Terminal. Fielding to units has begun in FY
    2024. The Air Force Reserve is also standing up the MH-139 Field
    Training Unit at Maxwell AFB, Alabama as part of the 908th Airlift Wing
    mission conversion. It is postured to begin training in FY 2026. The
    MH-139 will enable increased Intercontinental Ballistic Missile (ICBM)
    security and represents a Total Force Partnership between the Air Force
    Reserve, Air Force Global Strike Command and Air Education and Training
    Command. The Air Force Reserve continues to be an integral part of the
    bomber portfolio. The B-52 is tasked with conventional and nuclear
    missions and is AFRC's linchpin bombing platform. The Air Force Reserve
    is responsible for the B-52 Formal Training Unit (FTU) mission at the
    93d Bomb Squadron, an active associate unit. Of the three bomber FTUs
    in the DAF, the 93d is the largest producer of bomber pilots. The
    Reserve also contributes to combat operations through the Classic
    Association of the 343rd Bomb Squadron. With the B-1, an Air Force
    Reserve Classic Association is tasked with supporting Conventional
    Combat Operations and the Formal Training Unit. The Air Force Reserve
    is committed to maintaining its Classic Association in the B-1 until it
    sunsets and will then transition to the B-21 as the Raider program
    comes online according to the bomber roadmap.
                            command and control (c2)
        Joint All-Domain Command and Control (JADC2) is the Department of
    Defense's top modernization priority. The Advanced Battle Management
    System (ABMS) is the DAF's primary contribution to JADC2 as it provides
    the situational awareness and decision support tools to close hundreds
    of kill chains on relevant timelines in all domains--air, land,
    maritime, space and cyber--while operating in a highly contested
    environment. As the Regular Component continues to evolve Air
    Operations Centers (AOCs) to meet emerging operational Battle
    Management/Command and Control (BMC2) requirements, the Air Force
    Reserve's Combat Operations Squadrons will provide experienced C2
    operators at all AOC Divisions. This evolution of C2 capabilities also
    extends to the E-3 AWACS as the Regular component divests from the
    aircraft and transitions to the E-7 Wedgetail. The Air Force Reserve
    remains the sole surge capability, via the 513th Air Control Group, for
    the E-3. The Air Force Reserve will also support the E-7 Wedgetail as
    it enters service.
        As the DAF fields new capabilities, the Air Force Reserve must
    maintain equipment parity to achieve enterprise mission optimization
    and assure strategic depth. This includes ensuring legacy platforms are
    equipped with ABMS capabilities to guarantee interoperability and
    lethality. The Air Force Reserve also provides non-material support for
    ABMS initiatives with C2 manpower. Investment in digital infrastructure
    and applications, along with modern air and space communication
    platforms, provides the foundation of C2 with the speed, adaptability
    and resilience needed to achieve these objectives. If the C2 enterprise
    is prevented from adapting at speed and scale, on parity with
    warfighting requirements to dominate the pacing threat, the Joint Force
    could be assuming unmanageable risk in other mission areas.
        Integrating cyber capabilities enhances our ability to generate
    combat power but exposes us to new threats, as digital technology is
    both pervasive and inexpensive. The Air Force Reserve is exploring
    continued growth in cyber mission sets to counter persistent threat
    actors. There are currently 3,622 Reserve Cyber professionals assigned
    to the 960th Cyber Wing or serving as Individual Mobilization
    Augmentees (IMAs), who are postured to better align with United States
    Cyber Command and Air Force Cyber and Air Combat Command requirements.
    Force Structure
        With 74 percent of Air Force Reserve members serving part-time, the
    majority of Reservists serve alongside our Regular Component
    counterparts in association constructs. Approximately two-thirds of the
    Regular Air Force's associations are with the Air Force Reserve.
    Integrating through associations delivers significant taxpayer value,
    both in cost savings and improved mission effectiveness, by sharing
    aircraft, equipment and facilities with the Regular Component. In
    addition to reservists' military training and experience, our part-time
    force brings a wealth of knowledge and expertise from their civilian
    careers to their military service. This strengthens our capabilities,
    enables the integration of commercial best practices and facilitates
    beneficial partnerships with industry and other institutions. The Air
    Force Reserve's Bullpen initiative is one such example fusing military
    experience and civilian best practices. Bullpens leverage IMAs who have
    high demand low density (HD/LD) skills that are lacking in the Regular
    Component. These Bullpens directly support the Secretary of the Air
    Force's Operational Imperatives (OIs) in preparing the DAF for GPC. Two
    great examples are the Bullpens that study Hypersonics and China. The
    Hypersonic Bullpen has 13 Reserve Airmen who are experts from industry
    and academia. The China Bullpen is stood up in March 2024, with
    Reservists who have expertise spanning several disciplines including
    language, internal politics and strategy. This initiative is ongoing
    with future concentrations planned and is an example of how the Air
    Force Reserve leverages Reserve Airmen's civilian experience to meet
    shortfalls within the DAF.
                Associations
        There are 79 Associations between the Reserve and the Regular
    Component which span nearly every major mission set. Most of these are
    Classic Associations, in which the Regular Component is the lead
    organization. Active associations, in which the Reserve is the lead
    unit, comprise a little more than twelve percent of current
    associations. The Air Force Reserve also has units that are equipped
    where the Air Force Reserve unit is solely responsible for maintaining
    and operating their weapon system.
                Full-Time Staffing
        Adequate full-time staffing is essential to readiness. Our full-
    time force is a mix of Air Reserve Technicians (ART), DAF Civilians and
    Active Guard Reserve (AGR) members. Currently the Air Force Reserve has
    a ratio of 26 percent full-time and 74 percent part-time members. The
    FY 2024 National Defense Authorization Act maintained our AGR end
    strength at 6,003. For FY 2025, we have requested an AGR end strength
    of 6,311. Our ART end strength authorized for FY 2024 is 6,882. In FY
    2025, we requested an ART end strength of 6,697. Proper full-time
    manning is necessary for the Air Force Reserve because our AGRs and
    ARTs are responsible for training our Traditional Reservists (TR).
    Finding the right balance between ARTs and AGRs is critical and it is
    essential we are funded to be able to hire the best talent possible.
    The increase in FY 2025 AGR end strength will support civil
    engineering, flightline security, cyber operations, and the operational
    readiness for transitions involving key aircraft and systems such as
    the F-16 to F-35, KC-135 to KC-46A, HH-60G to HH-60W, and the standup
    of the MH-139.
    Equipment and Infrastructure
        Credible strategic depth requires concurrent fielding of systems
    for the Regular and Reserve Components. Effective support to the Joint
    Force demands continuous upgrades to legacy platforms to assure
    interoperability. Rapid technological advancement and the wide
    proliferation of digital technology have increased the tempo of
    strategic competition. These forces drive the need for equipment
    modernization and parity with the Active Component.
        In addition to concurrent fielding and proportional modernization,
    the Air Force Reserve must be able to divest its legacy platforms.
    Deliberate divestment avoids gaps in capabilities by freeing up
    resources for investment in capabilities to match pacing threats.
    Asynchronous airframe divestment can cause significant per platform
    sustainment cost growth due to diminishing vendors for spare parts.
    Further, it can also drive increased training costs as we are unable to
    hire qualified Regular Component members for obsolete legacy platforms.
                Weapon System Sustainment (WSS) and Modernization
        Fully funding the Air Force Reserve FY 2025 WSS request will help
    to bridge the fielding gap between the Regular Component and the Air
    Force Reserve. Aircraft modernization and system upgrades will provide
    capabilities needed for strategic competition by ensuring survivability
    in contested environments. A balanced portfolio of new and legacy
    platforms will achieve adequate wartime readiness. The FY 2025 WSS
    budget request of $1.2 billion is an increase of $176 million from the
    FY 2024 Presidential Budget request and will ensure upgrades, repairs
    and component replacements are provided to Air Force Reserve aircraft.
                Infrastructure and Facilities
        Maintaining and modernizing our infrastructure is absolutely
    necessary for readiness, force protection and ensuring a safe work
    environment. Military Construction (MILCON) appropriations fund new
    facilities and major infrastructure projects. The Facility Sustainment,
    Repair and Modernization (FSRM) funds included in our Operations and
    Maintenance (O&M) appropriation are used to repair and modernize
    existing facilities and to extend the service life of existing
    infrastructure. While we work diligently to maximize use of existing
    facilities at our nine host installations and fifty-seven partner
    locations, we still have $1.24 billion in MILCON projects and $1.69
    billion in validated FSRM projects in backlog.
               air force reserve's role in taking care of people
        Taking care of our Reserve Airmen and their families is a top
    priority. It begins the moment a member joins the Air Force Reserve and
    continues throughout their career. The Air Force Reserve does
    everything possible to support our Airmen as they balance their
    military career, civilian obligations and family responsibilities. This
    assures the Air Force Reserve retains talented Airmen who can leverage
    diverse experience from their military service and civilian lives. This
    support includes improving suicide prevention through investments in
    resilience, social support through the Yellow Ribbon Reintegration
    Program, implementing recommendations from the Independent Review
    Commission on Sexual Assault in the Military as approved by the
    Secretary of Defense, and efforts to expand childcare availability.
    Members
                Recruiting and Retention
        In FY 2023, the Air Force Reserve did not meet its end strength and
    we are projected to fall short of our FY 2024 authorized end strength
    of 69,600 by approximately 2,900 personnel. The recruiting environment
    continues to present significant challenges based on multiple factors
    including a reduced propensity to serve, competitive civilian
    compensation and difficulty in medically clearing recruits. Along with
    the Chief of Staff of the Air Force and collective Total Force team, we
    have identified accession policies that limit our ability to recruit
    young adults to serve in the military. The DAF has already made changes
    to include revising the tattoo policy to allow for limited hand and
    neck tattoos and adjusting body fat standards to align with the other
    Services (increasing to 26 percent for males and 36 percent for females
    for accessions). In FY 2024, we have also granted members a waiver to
    re-test following a positive drug test for THC during their accession
    process into the military. We have also continued to streamline the
    naturalization process in partnership with the U.S. Citizenship and
    Immigration Services for inbound recruits. This FY 2025 recruiting goal
    is not based on completely closing the personnel end strength
    shortfalls but on what the Air Force Reserve believes we can
    realistically achieve in the current market with the tools available.
    These initiatives will bolster recruiting, but it will take time for
    them to mature and close the end strength gap.
        The Air Force Reserve Human Capital Strategy calls for a 70 percent
    prior service (PS) and 30 percent non- prior service (NPS) recruiting
    mix. In FY 2023 we were at 63.4 percent PS accession. In FY 2024 we are
    project to end the year at 65.7 percent. The accession model is built
    on the expectation that there will be sufficient PS members leaving the
    Regular Component who will affiliate with the Air Force Reserve. The
    Air Force Reserve strives to affiliate ready and trained Airmen.
    However, current trends indicate increased reliance on NPS recruits
    which increases training costs and dilutes unit experience. The Air
    Force Reserve is also executing a plan of action to mitigate recruiting
    challenges with Reserve Component Affiliation Incentive Bonuses and a
    deliberate on-boarding process to increase recruiting production.
        Increasing retention provides a cost savings by decreasing training
    requirements. Air Force Reserve retention is at 88.3 percent which is a
    strong position and in line with the historic ten-year retention
    average of 88.2 percent. We implemented a tiered retention bonus in FY
    2024 to retain enlisted Airmen with 5-10 years of service (our lowest
    retention segment at 80 percent). We have also stood up a division
    dedicated to retention in our Manpower, Personnel and Services
    Directorate at AFRC. Thanks to the funding from Congress, we have been
    able to offer retention bonuses between $5,000 to $7,500 dollars. We
    have also been expanded the travel reimbursement program to all Air
    Force Specialty Codes (AFSCs) for Airmen, E1 to E7. This removes an
    undue burden on our Reserve Airmen, who previously had to pay for their
    own travel to attend drill weekends with their units. Travel costs were
    identified as a contributing factor for members separating from the
    Reserve and allows units to expand the geographic areas for
    recruitment.
        The Air Force Reserve provides a mechanism to retain talent by
    providing a continuum of service for members who would otherwise leave
    military service. The DAF understands the importance of retaining
    experienced talent from both a cost-effectiveness and capacity
    perspective. A Total Force Service Commitment is one way to retain
    these highly trained members. Data shows that members who affiliate
    with the Air Force Reserve are likely to remain in the DAF for up to 28
    years. The Air Force Reserve offers flexible service options designed
    to retain low-density, high-demand talent, capitalize on investment and
    leverage experience. This ensures that a member's talent is retained
    beyond the initial service commitment and the investment in their
    training continues to be available to the DAF and Joint Force.
        The narrative needs to change as a member who joins the Reserve is
    not ``quitting Active Duty,'' they are continuing to serve their
    country--they are an Airman for life!
                Pilot Manning
        In FY 2023, the Air Force Reserve achieved a pilot staffing level
    of 94%, matching the high from FY 2021 and marking a significant
    improvement over the previous year. Despite challenges posed by
    aggressive recruitment from civilian airlines, full-time pilot manning
    remained steady at 78%. To bolster our ranks and retain talent, we
    increased aviation bonuses with $50,000 to AGR pilots, $30,000 to ART
    pilots and $10,000 to $15,000 for TR pilots. For ART pilots, we also
    offer Recruitment, Relocation and Retention (3R) incentives, which can
    equal up to 25 percent of annual base pay and Special Salary Rates
    (SSRs) which provide for base pay supplements of up to around 24
    percent above otherwise applicable 2024 locality pay levels. Thanks to
    congressional support, funding for the Aviation Bonus Program was
    significantly increased from $3 million in FY 2017 to $34 million in FY
    2024. This strategic investment is crucial, as it not only sustains our
    current workforce but also avoids the estimated $10 billion cost of
    replacing over 3,600 pilots.
                Maintenance Manning
        In FY 2023, the Air Force Reserve achieved an overall maintainer
    staffing level of 84%, mirroring the challenges we face with pilot
    retention due to competitive recruitment from the commercial sector.
    Notably, our part-time maintainer force reached 90% staffing, while
    full-time maintainer staffing remained more challenging at 75%. With
    44% of our enlisted maintainers holding the highest level of technical
    proficiency and an average of 14 years of experience, they are highly
    sought after in the commercial industry. Similar to our pilot
    initiatives, we have implemented several strategies to address these
    challenges, including the use of SSRs, paid Permanent Change of Station
    (PCS) and 3R incentives. Thanks to the support and funding provided by
    Congress, we have been able to offer these incentives, which are
    essential for maintaining our readiness and ensuring the Air Force
    Reserve remains a competitive and rewarding career path for maintenance
    professionals.
                Training
        To make a meaningful contribution to the DAF core functions, the
    Air Force Reserve maintains a focus on being Ready Now which requires
    us to have the capability to train Reserve Airmen. The FY 2025 budget
    requests training funds and flight hours that allows the Air Force
    Reserve to work closely with Combatant Commands and gain joint
    experience in training events.
        A fully funded Flying Hour Program is essential to maintaining
    proficient combat-ready aircrews. In FY 2025, the Air Force Reserve
    will continue to use the Flying Hour Program management tool to assist
    in effective oversight of the program. This tool uses automation to
    allow for near real-time flying hour and financial updates to
    facilitate better utilization of the Air Force Reserve's flying hour
    funding, maximizing the time aircrews can be in-flight improving their
    proficiency.
        Accelerated Mission Readiness Training (AMRT) is crucial to
    developing technically proficient Airmen to provide a qualified force
    to Combatant Commanders. In FY 2023, nearly 59 percent of the enlisted
    personnel and 35 percent of the officers in the Air Force Reserve were
    NPS. This places a significant strain on readiness thresholds. Emerging
    GPC threats and evolving requirements of building Multi-Capable Airmen
    requires a technically proficient force that cannot be achieved through
    Unit Training Assemblies and Annual Tour days alone. Without AMRT
    funds, the average NPS Reservist would need 2-3 years to become
    minimally proficient on mission requirements. With decreasing numbers
    of fully qualified members transferring from the Regular Component to
    the Reserve, there is an increased training burden upon Air Force
    Reserve Command. Without continued funding, the Air Force Reserve can
    expect to see a 20 percent decrease in qualified, deployable Airmen,
    and an increase in excessive training times across all career fields.
        The Air Force Reserve is implementing training to develop Multi-
    Capable Airmen proficient in sustaining operations, hardening air bases
    and recovering air bases following attack. The FY 2025 budget requests
    funds for training, ensuring our Reserve Airmen are Ready Now to
    support the Regular Component as well as the Joint Force. At several
    Air Reserve Bases (ARB), we have developed organic training centers
    that allow Reserve Airmen the chance to meet Agile Combat Support (ACS)
    and Agile Combat Employment (ACE) training requirements and hone their
    expeditionary skillsets. These centers also support the Regular
    Component, the Joint Force, and Federal and local agencies. At Westover
    ARB, Massachusetts, the Dogpatch Expeditionary Training Area offers an
    expeditionary airfield, as well as a drop zone and tactical vehicle
    training route. At Youngstown Air Reserve Station (ARS), Ohio, we
    identified a training need for Security Forces to build proficiency
    through a 180-hour program of realistic training that simulates combat
    situations and prepares Security Forces members to deal with stress
    under fire. The training also prepares participants for ACE and ACS
    missions. The site has been so successful that we are partnering with
    U.S. Army Reserve and U.S. Marine Corps Reserve to use the area for
    joint force training events. Civilian and Federal law enforcement have
    also used the Youngstown site for training. Finally, at Grissom ARB,
    Indiana, we developed bivouac sites to better rehearse ACS and ACE
    events and conduct deployment exercises. Thanks to the funding from
    Congress, we can provide our Reserve Airmen the facilities to conduct
    realistic training.
        In addition to establishing training sites, the Air Force Reserve
    provided our Reserve Airmen realistic training through the Rally series
    of exercises. These exercises began in 2020 and with Congressional
    funding, we have conducted them annually to conduct ACE operations and
    provided real-world experience in an austere environment. The most
    recent, Rally in the Pacific, saw over 400 Reserve Airmen, from a cross
    section of career fields including Security Forces, Force Support,
    Logistics, Supply, Medical, Flight Operations and Transportation,
    simulate deploying with over 185 short tons of cargo from multiple
    stateside bases to a downrange location in the Pacific. They operated
    across a 9,000-mile training area setting up a forward operating base
    in Guam and temporary contingency locations in Palau and the
    Philippines. The Rally series shows how the Air Force Reserve has been
    able to maximize its budget to execute targeted training that members
    need. The total cost of Rally in the Pacific was $2.9 million. To
    continue providing our members relevant training, we need timely
    budgets which enable our planners to develop future exercises that
    prepare our members for GPC. Affording our members the opportunity to
    perform their primary duties has been one of the Top 5 influences for
    members to stay in the Air Force Reserve over the last 3 years.
                Stability for Members
        Our Reserve Airmen and their families and employers need stability
    and predictability. Exit surveys suggest the high operations tempo and
    demands of maintaining a work/life balance are the top reasons for
    leaving the Air Force Reserve. Without deliberately planned deployments
    and training, Reservists are unable to adequately prepare their
    families and notify their civilian employers. AMRT funding allows
    Reserve Units to offer predictable future training timelines.
        The Air Force Reserve is also working to normalize the use of pre-
    planned forces through AFFORGEN. This predictability enables Combatant
    Commanders and the DAF to plan and budget for the utilization of Air
    Force Reserve forces that is consistent with Congressional intent and
    Title 10 USC Section 12304b. It also enables Reserve Airmen, their
    families and their employers to prepare for deployments and
    mobilization as they meet the demands of defending our Nation. As a
    Reserve Element, we strive to ensure the Regular Component sees access
    to the Reserve as assured and never assumed. This ensures that
    accessing the Reserve is deliberately programmed and budgeted,
    providing an experienced and cost-effective force.
                The Space Force Personnel Management Act
        In 2023, the Space Force Personnel Management Act was passed by
    Congress. This significant legislation enables the U.S. Space Force to
    enhance its personnel system, facilitating the development and
    retention of a highly skilled military workforce. The act allows more
    flexibility between full-time and part-time service, helping Guardians
    to effectively balance their career and personal goals with the
    operational needs of the U.S. Space Force. Over a 5-year period, our
    Air Force Reserve space professionals will transition over to the U.S.
    Space Force. During that period, we will continue to provide support to
    the U.S. Space Force and U.S. Space Command. We are working with the
    U.S. Space Force to develop transfer policies that will ensure
    continuity of operations within current Air Force Reserve space units
    until the transition is complete. As our Reserve space professionals
    decide whether to become Guardians, they will be supported throughout
    the transition to the U.S. Space Force. Not all Reserve space
    professionals will make the decision to transfer. Reserve space
    professionals who decide to remain in the Air Force Reserve will be
    offered the opportunity to retrain, retire or separate. An accurate
    count of transfers and retraining costs is currently unknown. The
    enactment of the Space Force Personnel Management Act allows us to work
    within the DAF and prepare for how the transition of reservists to the
    U.S. Space Force will occur.
    Family
                Air Force Reserve Access to Childcare
        Recognizing the unique challenges faced by our Airmen, especially
    those who are single parents or part of dual military couples, the Air
    Force Reserve is dedicated to addressing childcare availability during
    weekend training periods. The Home Community Care (HCC) is a no cost
    program that addresses gaps in coverage at host locations without Child
    Development Centers and at Regular Component host facilities without
    weekend childcare options. Currently, the HCC is available, or is in
    progress, at 41 Air Force Reserve locations and we are working to
    recruit more providers by zip code. The Air Force Services Center Child
    and Youth Program experts work with wing HCC representatives to recruit
    new providers and to determine feasibility of creative solutions to
    increase childcare available to Airmen during drill weekends. Ensuring
    maximum childcare options is vital to retention, as 50 percent of
    Reservists cite family and work/life balance issues as their reason for
    separating.
                Air Reserve Component (ARC) Athena
        ARC Athena is a proactive effort by the Air Force Reserve and Air
    National Guard to increase readiness of female Airmen and their
    families. ARC Athena focuses on addressing administrative barriers,
    outdated policies and lack of consolidated resources which inhibit
    access to specialized equipment, treatment and information for female
    ARC members. The program is supported by 162 volunteers who serve on
    nine different lines of effort. These lines of effort include Childcare
    Programs and Policy, Pregnancy Discrimination and Maternal Bias,
    Aircraft Sanitization, Female Fitment, Countering Sexual Assault and
    Harassment, Lactation and In-vitro fertilization, Maternal Fitness,
    Female Specialized Healthcare and the Exceptional Family Member
    Program.
        At the national level, there is a core group of personnel who
    volunteer as the Air Force Reserve Command and Air National Guard co-
    leads. These leads facilitate cross talk between the nine ARC Athena
    efforts and coordinate with the DAF Women's Initiative Team (WIT),
    Women's Peace and Security and other MAJCOM Athena programs. In April
    2023, the first annual ARC Athena conference was hosted by AFRC's 911th
    Airlift Wing, Pittsburgh ARS, PA.
        ARC Athena helps uncover previously unidentified barriers to
    service which directly impacts readiness and retention. As the Air
    Force Reserve focuses on how best to posture for GPC, we must mitigate
    barriers to service to promote professional development and longevity
    in service.
                The Yellow Ribbon Program
        The Yellow Ribbon Reintegration Program provides pre- and post-
    deployment education to Reservists and their families on resource,
    benefit and entitlement eligibility. Historically, the feedback for
    these events has been overwhelmingly positive. In FY 2023, Yellow
    Ribbon approved registration for 1,175 deployers and 1,932 family
    members to attend seven events in Orlando, Florida and one in Dallas,
    Texas supported by 405 Resource Providers. With the funding provided by
    Congress, the Air Force Reserve can achieve a target of at least 50
    percent of AFRC first-time deployers attending future events, to
    increase preparedness and resiliency through Yellow Ribbon.
    Health and Wellbeing
        The health and wellbeing of our members is important since they
    cannot be ready if they are not healthy in mind, body, and soul. To
    that end, the Air Force Reserve is committed to supporting programs
    that ensure their physical, mental, and spiritual fitness.
                Mental Health
        Timely, high-quality access to Mental Healthcare is a challenge
    facing our Nation. The Air Force Reserve promotes mental health through
    early intervention, identifying and supporting members at elevated risk
    and managing crisis response. While TRs are not eligible for active-
    duty benefits, there are Reserve specific resources available. This
    includes 37 mental health providers in the Director of Psychological
    Health (DPH) Program, who are embedded throughout the Reserve Wings to
    advise leadership. DPHs provide non- clinical services to Reservists
    and their families to include training and education, consultations and
    referrals, needs assessments, suicide prevention, resiliency building,
    crisis intervention and command advisement on psychological and mental
    health issues. Reserve Airmen can also access the Military Family Life
    Consultants, who are licensed contract counselors that work outside of
    Military Treatment Facilities to provide anonymous and confidential
    assistance to all military members in problem solving issues resulting
    from deployment, reunions, reintegration, and/or other times of change.
                Spiritual Health
        Total force fitness includes spiritual health. The Air Force
    Reserve is seeing a substantial increase in pre- and post-accession
    religious accommodation requests as members express their sincerely
    held beliefs. Our Chaplain Corps provides support and spiritual care
    through Yellow Ribbon and Strong Bonds courses. The Chaplain Corps also
    hosts spiritual training courses and religious services on drill
    weekends to maintain the spiritual health of our Reserve Airmen.
    Additionally, Chaplains offer the privileged and confidential
    counseling to Airmen in distress and guide them to agencies for
    additional support such as mental health or financial and family
    readiness. This includes 10 AGR Religious Support Team members at our
    host bases, who also coordinate Chaplain Corps lines of effort across
    our NAFs and tenant wings. Through our AGR program our Reserve Airmen
    can access an on-duty chaplain 24 hours a day.
                Sexual Assault Prevention and Response
        Aligning with the Independent Review Commission on Sexual Assault
    in the Military as approved by the Secretary of Defense, the Air Force
    Reserve is expanding our Integrated Primary Prevention Workforce (IPPW)
    by adding 75 new positions at host wings and headquarters to boost the
    effectiveness of our prevention programs. Additionally, we are on track
    to hire 23 Sexual Assault/Sexual Harassment Victim Advocates by the end
    of FY 2025. Our experts are focused on developing proactive and
    informed action plans that address sexual assault and harassment,
    ensuring a safer environment for all personnel.
                Suicide Prevention
        During calendar year 2023, the nine confirmed deaths by suicide in
    the Air Force Reserve is a decrease from 2022. However, a decrease is
    not enough--we are taking proactive measures to eliminate suicide
    across our workforce. As part of our ongoing efforts to support the
    health and wellbeing of our Airmen, the expanded IPPW incorporates
    suicide prevention as a core component of its mission. We allocated
    $860 thousand in O&M funding to ensure new IPPW positions had
    workspace, and continued congressional support will ensure we are able
    to foster an environment that addresses the safety of our members and
    further strengthen our fight against suicides in the Air Force Reserve.
                air force's role in succeeding through teamwork
        Teamwork begins within the DAF, where the Air Force Reserve is an
    indispensable part of the Total Force. We provide an experienced and
    accessible Title 10 surge capacity to the Regular Component of the U.S.
    Air Force and the U.S. Space Force. We work to maintain a Ready Now
    posture that can support every core function. Maintaining this
    readiness and teamwork with the Regular Component and the Joint Force
    requires consistent training. We also play a critical role as the DAF
    builds ties with partners and allies. Reserve special missions are a
    unique capability that integrates the DAF with Federal agencies and
    civilian organizations within the United States and abroad. As the DAF
    prepares for GPC and determines how forces will be presented to Joint
    Force Commanders, the Air Force Reserve stands ready to ensure that the
    DAF can meet its requirements.
    Building Ties and Support to Allies and Partners
        The 2022 NDS calls for the defense enterprise to incorporate Allies
    and partners at every stage of defense planning. Close collaboration
    with Allies and partners is foundational for U.S. national security
    interests and as part of its efforts to support the Joint Force the DAF
    strives to improve those ties. The Air Force Reserve also plays in
    developing ties with U.S Allies and partners and supporting them.
                Support to Allies and Partners
        In FY 2023 the Air Force Reserve supported taskings to U.S.
    European Command and U.S. Central Command. This support came in the
    form of voluntary and involuntary activations. In FY 2023, 270
    Reservists volunteered to support the U.S. European Command. The
    support included 10 Russian and Ukrainian language linguists as well as
    Reserve ISR Airmen who provided 18,954 man-days in direct support of
    Ukraine. Air Force Reserve aircrews also airlifted 2,134 tons of cargo
    and 570 passengers. Support to U.S. European Command's Ukraine efforts
    have been strictly voluntary. However, the Air Force Reserve volunteers
    exceeded the Secretary of Defense Orders Book (SDOB) requirements.
        Recent Levant operations prove that the Air Force Reserve is
    accessible as aircrew and aircraft activated within 72 hours to fill
    critical airlift and aerial refueling missions. Since October 7, 2023,
    the Air Force Reserve activated C-5 and C-17 Force Elements under Title
    10 U.S. Code Sec. 12302--to support U.S. Transportation Command
    (USTRANSCOM) requirements. The activation start date was November 28,
    2023, for 90 days and members activated within seven and eleven days of
    SDOB signature, an approval that is typically an 18-to-24-month cycle.
    These crews executed the Air Force Reserve's first involuntary
    activations in over 20 years. Air Force Reserve C-17s from the 445th
    Airlift Wing at Wright-Patterson AFB, Ohio supported Levant operations
    within 72 hours to meet U.S. Central Command requirements and
    seamlessly assumed mission responsibilities from Regular Air Force
    mission partners. Additionally, unit-equipped C-5s from the 337th
    Airlift Squadron, Westover ARB, Massachusetts in support of USTRANSCOM
    missions joined with the 709th Airlift Squadron, a Classic Association
    C-5 unit from Dover AFB, Delaware to support Levant requirements. Total
    support has included 779 Reserve volunteers and 557 who were activated
    for over 68,000 man-days. Having Air Force Reserve aircrews share
    taskings over the winter holidays allowed the Regular Component
    aircrews to prepare for a potential surge in 2024.
                Training with Allies and Partners
        Building ties to Allies and partners also occurs during training
    events. One recent example occurred during RESOLUTE SENTINEL '23--a
    Combined, Joint and Total Force (CJTF) exercise in South America. Over
    750 U.S. service members took part working closely with partners from
    the Americas. The Air Force Reserve represented half of all U.S.
    participants and led the Air Component portion, PATRIOT FURY. Twenty-
    five Air Force Reservists served in key roles in the CJTF including the
    Vice Commander and several key staff positions. Working closely with
    members of the Air National Guard and Air Force Special Operations
    Command, Reservists enabled ACE operations in planned and unplanned
    scenarios from multiple locations. They worked around late cargo flow,
    delayed Peruvian approvals and retrograde airlift to execute missions
    on time without delaying the exercise.
        In addition to offering Reserve Airmen realistic training, Rally in
    the Pacific offered a chance to work closely with the Philippine Air
    Force. At the request of our Philippine partners, U.S. Air Force
    Reservists demonstrated a Joint Precision Airdrop System airdrop to
    their Air Force. This was a priority task for the Pacific Air Forces
    Commander and the Commander of the Philippine Air Force.
                Reserve Special Missions
        In addition to supporting the Space Force and the Regular Component
    of the Air Force, the Air Force Reserve expands the DAF teamwork
    efforts by partnering with and supporting multiple Federal and civil
    organizations. We routinely participate in humanitarian aid, disaster
    relief and scientific research efforts. The Air Force Reserve provides
    direct support to civil authorities through the execution of Modular
    Aerial Spray System (MASS), Modular Airborne Firefighting System
    (MAFFS) and Weather Reconnaissance missions which use specially
    modified C-130 aircraft.
                Modular Aerial Spray System
        The 910th Airlift Wing's (AW) 757th Airlift Squadron (AS) from
    Youngstown ARS, Ohio, operates the Department of Defense's only aerial
    spray capability. In FY 2023, the 757 AS conducted 8 MASS missions for
    a combined total of 89 operational, positioning and support sorties,
    treating 138,397 acres and applying 33,766 gallons of product. These
    missions control insect populations, eliminate undesired and invasive
    vegetation, and disperse oil spills in large bodies of water. The 910
    AW was selected for conversion to the C-130J from FY 2024 to FY 2026.
    The first aircraft is expected to arrive in July 2024.
        In FY 2022, acceptance testing of the first Electronic Modular
    Aerial Spray System (EMASS) was completed. It represents a decade long
    acquisition project to insure the sustainability of the Aerial Spray
    program. EMASS provides additional capacity and more accurate
    calibration for precise application of products when compared to our
    aging legacy MASS. Military Type Certification (MTC) for the EMASS on
    the C-130H was completed in January of 2024, ensuring final
    certification for EMASS to be used on the C-130H. A full spray season
    is planned for the C-130Hs using both the MASS and EMASS systems. EMASS
    has not been approved for the C-130J. Military Flight Release (MFR) for
    EMASS on the C-130J was completed in February 2024 and testing is
    scheduled between 18 and 29 March 2024. The approval process for
    testing EMASS on the C-130J remains ongoing and we expect completion in
    FY 2027. Pending a successful test of the EMASS on the C-130J, we would
    have the ability to fly spray missions under the MFR until the MTC is
    complete. Reserve Aircrew flew EMASS on the C-130H under MFR for almost
    2 years before the MTC was complete. If testing is successful,
    procurement of 4 additional EMASS units will take place in the next 18
    to 24 months. In 2025, we project a full spray season, with both MASS
    and EMASS on C-130H and EMASS only on the C-130J. In 2026, a limited
    spray season will occur with EMASS on C-130Js only. In 2027, we project
    a truncated spray schedule as additional EMASS units arrive and a full
    and normal spray schedule in 2028.
                Modular Airborne Firefighting System
        The MAFFS is another specialty mission the Air Force Reserve
    supports, conducted by the 302d Airlift Wing from Peterson Space Force
    Base, Colorado. As the only Title 10 Aerial Firefighting asset
    available for direct tasking, the 302 AW's MAFFS mission supports U.S.
    Northern Command's Defense Support to Civil Authorities and represents
    25 percent of MAFFS assets in the Department of Defense. The Air Force
    Reserve's MAFFS capability mobilized between 3 August and 6 September
    2023 and represented 90.3 employment hours and over 185.2 thousand
    gallons of retardant delivered during Pacific Northwest, Northern
    California, Northern Rockies and the Northern Great Basin wildfires. FY
    2023 was the second year of limited MAFFS use in the Continental United
    States causing proficiency and currency to decline within the MAFFS
    community. The 302 AW has explored options to operate overseas in
    support of Allies and partners experiencing wildfires, which would help
    crews maintain proficiency and currency while also building ties. EMASS
    has been procured with National Guard and Reserve Equipment
    Appropriation (NGREA) funds.
                Weather Reconnaissance
        The United States military has been flying into hurricanes since
    the Second World War. Today, the Air Force Reserve maintains the only
    operational military weather reconnaissance unit in the United States.
    The 53d Weather Reconnaissance Squadron (WRS) is the only Department of
    Defense unit that conducts aircraft reconnaissance missions into severe
    tropical weather during hurricane season and flies winter storm
    missions off both coasts of the United States. Stationed in Keesler
    AFB, Mississippi, their WC-130Js fly out of bases throughout the U.S.
    Gulf coast, California, Hawaii and the Caribbean to conduct operations
    which improve forecast accuracy up to 30 percent, enabling commanders
    and civil authorities to make informed, fiscally responsible decisions
    to protect personnel and assets during extreme weather events year-
    round. This is a low-density, high demand capability.
        In FY 2023, the 53 WRS flew 135 missions with 1,577 flight hours,
    the highest in the past 9 fiscal years. This included 469.2 hours in
    support of 35 West Coast Atmospheric Rivers and East and Gulf Coast
    requirements. The 53 WRS also flew 1107.9 hours of hurricane
    reconnaissance across 18 storms in the Atlantic, Caribbean, Gulf of
    Mexico and East Pacific Ocean, supporting 151 Lead Federal Agency
    requirements and safeguarding of forces throughout the Western
    hemisphere.
        Mission modernization and resourcing is essential to the expanding
    weather reconnaissance mission sets that support our military and
    civilian population across the United States. The Air Force Reserve
    using a combination of Weapons System Sustainment and NGREA funds to
    sustain and provide for hardware and software upgrades, some of which
    are still in progress. With requested funding from Congress in the FY
    2025 budget, the Air Force Reserve can continue supporting weather
    reconnaissance as well as aerial spray and aerial firefighting
    missions, ensuring that the Air Force Reserve can defend and protect
    the Nation through teamwork with the Total Force, as well as Federal,
    state and local agencies.
                                    summary
        Our FY 2025 budget request is carefully crafted to ensure
    interoperability with the Regular Component and the Joint Force. This
    request will continue weapon system modernization, positioning our
    force to be more capable, survivable and lethal, while also enhancing
    support to our Reserve Airmen and their families. In an era of GPC and
    increased resource constraints, we will continue to provide strategic
    depth and operational surge capacity to meet pacing threats in the most
    cost-effective manner. Reserve Airmen will continue to leverage our
    unique blend of military and civilian experience to bring outsized
    impact to the DAF's Operational Imperatives. For this to occur, we need
    to take care of our Airmen--the FY 2025 Presidential Budget request
    allows the Air Force Reserve to do just that. With your continued
    support, we are confident the Air Force Reserve will remain prepared to
    deliver effects anytime, anywhere to fly, fight and win in air, space
    and cyberspace.

        Senator Tester. Thank you, General. And I want to thank you
    all for following within the 3-minute guideline. I appreciate
    that very much. Please know that your entire written statement
    will be a part of the record.
        I will now turn to Vice Chair Collins.

                     STATEMENT OF SENATOR SUSAN M. COLLINS

        Senator Collins. Thank you very much, Chairman Tester, for
    holding this hearing, and thank you all for your candid
    assessment of the President's budgets and the needs that you
    have.
        I know that for three of our witnesses, General Hokanson,
    General Daniels, and General Mustin, that this is, likely, your
    last opportunity to testify before our committee, and I want to
    personally to thank you for your many years of Military
    Service, and for serving your country.
        One of our priorities for fiscal year 2025 Defense
    Appropriations is to ensure that it reflects the fact that many
    of you have commented on, that the Guard and Reserve have
    served as operational Forces for the past two decades and not
    just as a strategic Reserve. Even today, the National Guard and
    Reserve provide valuable contributions to our national defense,
    from the southwest border where Guardsmen are supporting border
    security operations, all the way up to the far corner of the
    Northeast where Guardsmen in the 101st Air Refueling Wing,
    based out of Bangor, are refueling Military aircraft.
        In short, the need to properly resource, ready, well-
    equipped, and integrated Guard and Reserve components could not
    be more clear yet, that is why it is so disappointing that the
    President's budget request for fiscal year 2025 cuts the Guard
    and Reserve budget by nearly $2 billion compared to fiscal year
    2024.
        As just one example, the Guard and Reserve's budget request
    for procurement constitutes just 2 percent of the Department's
    total procurement request for next year, despite the fact that
    the Guard and Reserve account for 37 percent of the overall
    Total Force.
        Such funding levels, in my judgment, make it virtually
    impossible to field the new aircraft and weapon systems in
    Guard and Reserve units on a concurrent and proportional basis,
    which was and remains the recommendation of the National
    Commission on the Structure of the Air Force, 10 years ago, and
    is a principle that many of us support today as well.
        As your written statements point out, and your oral
    testimony as well, the Guard and Reserve provide mission-
    effective Forces in a cost-efficient way. The National Guard
    State Partnership Program is a great example of that, this
    program is a security cooperation program that partners a Guard
    unit from one U.S. State with another country that is an ally
    or partner. Today, Guard units have formed 89 partnerships with
    106 countries around the world.
        I can report firsthand that the Maine National Guard's
    partnership with Montenegro was essential to paving the way for
    that country's successful ascension to NATO (North Atlantic
    Treaty Organization) in 2017.
        And General, as you described in your written testimony,
    these strategic accomplishments occur on a budget that is less
    than 1 percent of the Department of Defense's annual budget for
    security cooperation with other countries. What a return on a
    very small investment.
        This is an opportunity for you to candidly share your
    priorities as well as the operational challenges and readiness
    concerns that you are experiencing as a result of the
    constrained budget.
        I am very proud of the contributions of our men and women
    in the Guard and Reserve, and was delighted to welcome the
    Secretary of the Air Force to the 101st Air Refueling Wing just
    a couple of weeks ago, and I think he was impressed with what
    he saw.
        Thank you, Mr. Chairman.
        Senator Tester. Thank you, Vice Chair Collins.
        Now, we will go to questions, and I will start.
        This is a question for all of you. Each year, Congress adds
    hundreds of millions of dollars to the National Guard and
    Reserve equipment account. It is important to us to make sure
    you have modern equipment so you are ready when you are called
    upon. This money it is in addition to the Department's budget
    request for recognition, and the Active Forces usually have
    first pick.
        That said, it is concerning to me that despite the funding
    gaps each of you have, these kinds of funds are spent very,
    very slowly. A couple of things I would love to have you
    explain that, and then I would also love to have you explain
    how this budget process can become more effective and more
    efficient. What could you do better? What can we do better?
        I will start with you, General Hokanson. We will go in the
    same order as you spoke.
        General Hokanson. Yes, Chairman. As in my written
    statement, my opening statement as well, NGREA is absolutely
    fundamental to the readiness of the National Guard. It allows
    us not only to find commercial off-the-shelf solutions--80
    percent of the solution at 20 percent of the cost--but it also
    allows us to purchase equipment that the Services don't have
    the resources to do, which directly impacts our readiness.
        In terms of the budgeting process, Chairman, anytime we
    have a continuing resolution for any period of time, it has a
    significant impact on our organization, not only readiness, but
    equipment, MILCON (Military Construction), and everything,
    particularly state partnership funding, as we are not allowed
    to access it until the CR (Continuing Resolution) ends. So, any
    help that we can get to eliminate the CRs would be greatly
    appreciated. Thank you.
        Senator Tester. Anybody else who would like to respond to
    that? Go ahead.
        General Daniels. So, one of the reasons that we don't spend
    immediately, is because we make a very hard look at what we can
    purchase, what are our current year needs. We also look at what
    is the rate of production of an existing line that is building
    something, and sometimes it cannot add any additional equipment
    in, even though we need it and would like to purchase it that
    particular year at that point in time. So, we may have to delay
    until that line can be expanded or until active component
    resourcing efforts have expired.
        Senator Tester. Okay.
        General Daniels. That slows us down a little bit.
        Senator Tester. Okay. Anybody else? Admiral.
        Admiral Mustin. Just to add, there is a tactical and a
    strategic implication of where we are relative to NGREA for
    this year. So, the House has proposed a 20 percent mark, which
    leaves the Navy share at a low since 2007. But I would like to
    comment just at a strategic level also, that in the last two
    decades, post\1/1\1, we have seen the preponderance of funds
    appropriately skewed to the Guard and Air National Guard, with
    the Service Chiefs allocating about a third between us. If we
    agree that the Indo-Pacific is a theater of concern, I would
    offer that the combined total between the Navy and the Marine
    Corps, which has hovered at about 7 percent of total, could be
    worthy of revisiting.
        And frankly, the kinds of things that we are spending the
    money on are high-impact dollars, as you heard from General
    Healy. And I would just ask that we revisit before we close the
    books on the fiscal year 2025 budget.
        Senator Tester. Okay. General Anderson.
        General Anderson. I would like to second the predictable
    budget. I think, just across both the Reserve and the Guard,
    what is predictable, repeatable, that helps our workforce, that
    is both on the civilian side and the Military side, so that it
    reflects and compounds like, as this year is an example, as we
    approach the last quarter, the NGREA money has not been funded
    yet, and we are playing catch up when we find ourselves in this
    CR situation. Thank you, sir.
        Senator Tester. General Healy.
        General Healy. Yes, sir. Currently, the Air Force Reserve
    shortage is roughly $1.3 billion in terms of major equipment
    that we can use NGREA dollars on. As my other colleagues have
    stated, it is a challenge to get out of the blocks with delays,
    but once we do, we typically see first-year expenditure at
    roughly about 10 percent, second-year expenditure, we are
    usually at about 50 percent of execution for that year, with 3
    years executing at 100 percent consistently as far back as my
    records go.
        So, with regard to a 5-year FY DP (Future Years Defense
    Program), we are still coming in under that, and we are still
    getting there much quicker than the Active Duty is able to
    access major equipment in order to make our weapon systems more
    viable.
        Senator Tester. Okay. Thank you. This question is for you,
    General Hokanson. The National Guard is now in the seventh year
    of serving on a Southern Border in support of U.S. Customs and
    Border Protection. During that time, things have gotten worse
    under the administration's failed border policies.
        So General Hokanson, I am going to ask you the same
    question I asked Secretary Austin when he was in front of this
    committee last month. How many Guards' personnel are currently
    serving on the Southern Border, and what does this mean for
    Guardsmen's operational readiness for other duties?
        General Hokanson. Chairman, when we look at the--we have
    about just under 2,500 Guardsmen on the southwest border under
    Title 10, serving under U.S. NORTHCOM (U.S. Northern Command).
    As I have expressed within the building as well, there is no
    Military training value for what we do. This is a law
    enforcement mission under the Department of Homeland Security.
    I know that we are providing additional support along there,
    but for our Guardsmen there, they might as well be deployed to
    Kuwait, or somewhere overseas, because they are away from their
    families, they are there doing mission sets that are not
    directly applicable to their military skill set, and so it
    increases their personal operational tempo, and that time I
    think would be better utilized building readiness to deter our
    adversaries.
        Senator Tester. Okay. Thank you. Chair Collins.
        Senator Collins. Thank you very much, Mr. Chairman.
        General Daniels, as I know you are aware, last October,
    Maine experienced the worst mass shooting in our history. 18
    Mainers were killed; another 13 were injured in a horrific mass
    shooting that was carried out by a sergeant in the U.S. Army
    Reserve. I have worked with the Army because I am drafting
    legislation where I want the Army and all the Services to be
    able to trigger state crisis intervention laws, yellow flag
    laws, such as we have in Maine, as an example, that would
    result in a judge reviewing the evidence of whether or not a
    service member poses a threat to him, or herself, or others.
        And I have waited to introduce that because the Army
    Reserve has done an extensive investigation, and I asked the
    Army IG (Inspector General) to review that. Well, that was
    supposed to be finished in January. We are a long way from
    January now. I was told by the Secretary that she expected the
    Army Reserve's Administrative Review to be completed in a
    couple more weeks. That, too, has passed by. What is the cause
    of the delay, and when can we expect to get this?
        I really don't want to introduce a bill without the benefit
    of the findings and recommendations in this report, which is
    going to document how many red flags were missed.
        General Daniels. First, may I say, very sorry for your
    loss. The report from my side has been signed in late May, we
    are working on redacting it and making that available in the
    next couple of weeks, and I look forward to coming and briefing
    you and your team on what we have found as a part of that
    report.
        Senator Collins. Thank you. I am going to hold you to that
    next couple of weeks.
        General Daniels. Absolutely.
        Senator Collins. Because I have heard that phrase a number
    of times.
        General Daniels. Yes, ma'am.
        Senator Collins. And it really is important. Thank you.
        General Hokanson, you have stated that one of your top
    priorities is the need to recapitalize an Air National Guard's
    Fighter Fleet because a disproportionate number of new fighter
    aircraft procured by the Air Force are delivered to Active Duty
    units rather than to Guard or Reserve units that comprise the
    Total Air Force. This disproportionate fielding of aircraft
    also affects other kind of aircraft as well.
        For example, I understand that the current KC-46A basing
    plan would place 71 percent of the new KC-46s, with the active
    units, 14 percent with Reserve units, and 15 percent with Guard
    units.
        Now, that is the plan, even though the Guard flies about 38
    percent of all Air Force tanker aircraft. So, could you explain
    why this allocation is done this way? And also give me your
    opinion on whether the fielding of new aircraft in a manner
    that would be concurrent and more proportional would help
    improve the operational readiness of the Guard and the Total
    Force?
        General Hokanson. Vice Chair Collins, it is a great
    question. So, if you look at where we are today, as you
    mentioned the Guards, about 37 percent of the aerial refueling,
    so we are being fielded concurrently, we are just not being
    fielded proportionally. So, under the current plan, from the
    183 KC-46s, 32 will go to the Guards. So, we will go from 37
    percent down to about 16- to 17 percent of the new aircraft.
        The reason why this is concerning to me is a current recent
    RAND Study looked at the operational rates of Guard and Active
    Duty units, and we still meet the same readiness requirements,
    but we operate at about 34 percent less of the cost of the KC-
    135, and we think it would be similar on the KC-46. So, the end
    result is I think that by not putting more in the Guard and
    Reserve, it is going to be more expensive, and a lot of our
    experience and capability reside there in the Guard.
        Senator Collins. I think that is a really important point,
    that it is going to be more expensive, and plus, that is where
    the capability is. Thank you.
        Senator Tester. Senator Shaheen.
        Senator Shaheen. Well, thank you all very, very much for
    your service to the country, and General Hokanson, General
    Daniels, and Admiral Mustin, we will miss you.
        General Hokanson, I very much appreciated working with you
    as the co-chair of the National Guard Caucus, so I will
    especially miss you.
        The Senate Armed Services Committee enacted historic
    reforms several years ago to address sexual assault and
    harassment in the Military, including taking those offenses out
    of a service member's chain of command. That was the result of
    years of work on that issue.
        Unfortunately, as we have discussed, these reforms don't
    necessarily apply to the National Guard, given the State and
    local jurisdiction of National Guard units, and some States
    have adopted similar reforms on the State level, but some
    haven't, and instances of sexual harassment in the Guard
    continue to be an issue, including in my home State of New
    Hampshire.
        The SASC's (Senate Armed Services Committee) passed NDAA
    (National Defense Authorization Act) includes legislation that
    I was pleased to introduce to require the Defense Advisory
    Committee to study this issue and to report to Congress, and we
    appreciated the help we got from your office in drafting that
    legislation, and also to strengthen the Office of Complex
    Investigations, and their ability to look at command climate as
    part of the investigations.
        So, the Guard Bureau can play a really important role in
    looking at this issue. Can you talk about how you and whoever
    succeeds you will be able to use your position as Chief of the
    National Guard Bureau to incentivize States to take active
    measures to address this issue?
        General Hokanson. Senator Shaheen, this is one of the
    priority things that I will share with my successor when that
    person is named. But at the end of the day, sexual assault is
    actually not anything ever condoned within any aspect of the
    U.S. Military, and we have to use every tool we have available
    to us to ensure that we rid that from our formations.
        Now, you can look at the statistics, they have gone down
    this year, but until they get to zero, we will always have work
    to do. So, we will utilize our prevention workforce that we are
    hiring now, also our Office of Complex Investigations to help
    States bridge that gap between State law and Federal law,
    depending on the duty status they are in. Our General Counsel
    is very involved in that.
        As we have seen with New Hampshire, we will send staff
    assistance teams to go out there, take a look at their program,
    and make recommendations. And we follow up with those as well
    because at the end of the day we have to eliminate this from
    our formations.
        And so, I think everybody here at this table understands
    just how important that is, and I don't think there is anything
    that we are not doing to help promote that.
        Senator Shaheen. Are there other measures that you think
    the Congress should take to better encourage States to take
    action and to better support efforts that the Guard can
    undertake?
        General Hokanson. Senator, fully funding our prevention
    workforce is one thing to make sure so that we have got those
    folks in every brigade, every wing, so that any Soldier or
    Airman knows exactly who to go to, to get the help they need.
    But, also to help identify inappropriate behaviors so we can
    basically end it well beforehand, and identify those potential
    perpetrators.
        Senator Shaheen. Well, thank you. I think it is an -- as
    you know it is an ongoing issue that we have got to continue to
    work hard to address. I don't know if anybody else on the panel
    would like to address that at all. Are you happy to have
    General Hokanson response? General Daniels.
        General Daniels. I will chime in, that while we are seeing
    an increased number of reports, I had the team go back and take
    a look at whether or not those were current year reports or
    prior year reports. So, it appears that our current year
    harassment and assault cases are in decline, but we are seeing
    a significant number of prior year reports, which gives me
    confidence that we are gaining trust, that people are more
    willing to come forward to say what has happened to them
    previously, and they trust us to act on that. So that gives me
    a little bit of hope.
        Senator Shaheen. Thank you. General Hokanson, as you know,
    the Guard Bureau's decision to relevel New Hampshire's 157th
    Air Refueling Wing has been a concern, particularly given
    Senator Collins' comments about the KC-46 and the disparities
    that exist and the need to continue those operations.
        I appreciate your providing an extension to New Hampshire
    and to the other units who have requested one, but can you also
    commit to reporting back to Congress prior to reimplementing
    the leveling initiative, including on the operational impacts,
    and also ensure that your successor also understands the
    importance of doing that?
        General Hokanson. Yes, Senator. Actually, we are working on
    that now. And the result of this was, we found as we looked
    across all of our formations, we had a disparity in the full-
    time manning, and so we wanted to make sure that like units had
    the same, and what we have identified is the increase in demand
    on the Reserve component has actually driven a greater need for
    more full-time manning because of the readiness levels we have
    to maintain.
        And so, we look forward to working with this committee, and
    others, to make sure that the number of full-time manning
    adequately reflects what the units are being asked to do, so
    that we don't put a disadvantage to our part-time Soldiers
    where we ask them to continue to work more and more to make up
    the difference in our full-time manning.
        Senator Shaheen. Well, thank you. I look forward to seeing
    the report.
        General Hokanson. Yes, ma'am.
        Senator Tester. Senator Moran.
        Senator Moran. Chairman, thank you. Thank you all for your
    service to our Nation.
        General Hokanson, let me follow up again with Senator
    Collins' questions of you. I would add some additional thoughts
    on the KC-46A basing. A recent RAND Study shows that the
    Reserve component pilots are more experienced and cost-
    effective than their Active Duty counterparts. The study
    recommends that the Air Force reevaluate its bed-down plans for
    the KC-46A to maintain an efficient balance between Active and
    Reserve components.
        In your best Military advice, does the Air Force current
    KC-46A basing plan adequately equip the Air Guard Fleet to
    maximize the benefits highlighted in the RAND assessment?
        General Hokanson. Senator Moran, thank you for the
    question. And sir, when we look at concurrent proportional, I
    don't think it does. We are currently 37 percent of the Aerial
    Refueling Fleet, but the KC-46 plan has us going to about 16-
    to 17 percent.
        When you look at the fact we operate our KC-135s at 34
    percent less cost than the Active component, I would argue by
    putting more in the Active Duty you are incurring greater cost,
    whereas the same readiness levels are met within our Air Guard
    units, and the amount of air refueling that we do is very
    significant. So, I would argue that more fielding within the
    Reserve component reduces the cost yet retains the same
    capability that our Nation needs.
        Senator Moran. On a similar subject, Congress appropriated
    $350 million to procure one company of Gray Eagles in the
    National Guard Division. This is a fine start, but all Guard
    Divisions should mirror the active component's operational
    capabilities. I particularly think this is true, I mean, that
    the war in Ukraine has highlighted for me the value, the
    necessity, in fact, of UAVs (Unmanned Aerial Vehicles), and it
    seems to me a terrible mistake that our Guard and Reserve would
    not have the capabilities that are necessary.
        In your best Military advice, do you agree, not with my
    assessment, but with the assessment of the need for more Active
    component parity?
        General Hokanson. Senator, I would argue one of the
    greatest missions of the Military is to prevent war by
    deterring others to do things that they might want to do, and
    by ensuring that our Reserve and Guard units are man trained
    and equipped, just like their Active Duty component, then I
    think it increases the greater deterrent value.
        If you look at the fact we have eight divisions within the
    National Guard, ensuring that they have the same capability and
    capacity so when called forward, if that need arises, they
    bring the same capabilities to the battlefield and that our
    adversaries understand that it doesn't matter if it is Guard or
    Reserve, they bring the same capability.
        And the Gray Eagles, as you mentioned, the drone
    capability, the reduction of putting manpower forward, but the
    capability is something we need, absolutely, in every one of
    our eight divisions.
        Senator Moran. Thank you. General Healy, your opening
    statement highlighted the risk associated with Legacy Aircraft
    divestment without recapitalization and delayed modernization,
    what strategies must be employed to mitigate the potential
    impacts on air superiority and surge capacity?
        General Healy. I appreciate the question, Senator Moran.
    And in follow up to the previous question regarding KC-46
    Beddown, I would point out as well that we currently have one
    KC-46 unit, at Seymour Johnson one that is potentially on the
    books out of March Air Reserve Base. But our six remaining KC-
    135 units have no program of record. So, we are not being
    concurrently filled with KC-46 units.
        The constant advocacy on my behalf, I think, is the best
    answer right now, whether that is to the Department of the Air
    Force leadership or within this body and the House
    Appropriation Committee as well.
        With regard to proportional and concurrent, two issues come
    about from that. Our ability to act in a fifth-gen fight is
    severely limited if we have got fourth-gen equipment.
        Referencing the RAND Study that General Hokanson brought
    up, we have a more experienced Force than the Active component,
    and that is just by virtue of people wanting to continue to do
    the mission well beyond their 10-year active-duty service
    commitment.
        That being said, if they don't have the opportunity or the
    venue to go to something that they can continue to provide
    service in, I think, an F-35 or a KC-46, then we potentially
    are losing some of the outstanding experience that is on the
    table with regards to fighting our next conflict, if called
    upon.
        Senator Moran. General Healy, I would point out your answer
    to me, one of the things I think is important is all branches
    of the service to different degrees experience recruitment and
    retention challenges, and we ought to be utilizing, you just
    mentioned the capability of retaining personnel in this
    capacity, and we ought to be taking advantage of that
    circumstance that doesn't exist in all circumstances, true?
        General Healy. Absolutely, sir. We call it ``closing all
    the windows''. We have got to stop letting these people get
    out. So, we do a fantastic job of retention in the Air Force
    Reserve. We are currently at about 88.3 percent, 89 percent was
    our goal for this year, but we are consistently at an 88.2
    percent retention on a 10-year average for our Pilot Force,
    which is the most exquisite and costly Force that we have.
        Senator Moran. Speaking of closing all the windows, you
    should close all the windows on three of the folks who are
    sitting at the table this morning. I will miss their presence.
        And finally, I would say just as a comment, I am working
    with the Kansas National Guard in regard to expanding their
    state partnership, and I would like your help, General
    Hokanson, and others, to accomplish my goal. Thank you.
        Senator Tester. Senator Baldwin.
        Senator Baldwin. Thank you, Mr. Chairman. Before I get to
    questions, I want to add my words of congratulations to General
    Hokanson, Lieutenant General Daniels, and Vice Admiral Mustin
    on your upcoming retirements. I want to thank you for your
    service to our Nation.
        General Hokanson, I have appreciated working with you over
    the past few years on expanding healthcare to service members,
    and I appreciate your mentioning that in your opening remarks.
    Like you, I believe that increasing access to healthcare and
    dental care, especially for our Guard and Reserve members,
    would pay dividends in readiness, especially for short-notice
    deployments.
        Last Congress, I introduced the Bipartisan Healthcare for
    Our Troops Act, a bill that would provide all National Guard
    and Reserve Service Members with premium-free healthcare
    coverage. I understand that the Defense Health Agency is
    working to study this issue, and I look forward to seeing those
    results.
        So General, can you please describe the progress that your
    team has made towards this goal during your tenure, and what
    you see as the feasible next steps?
        General Hokanson. Senator, thank you. And I greatly
    appreciate your support for this, really my number one
    priority, and it has been my number one priority since my time
    as the Chief of the National Guard Bureau.
        When you look at the healthcare progress, we continue to
    have the conversation, the Act that you mentioned, and more and
    more the conversation is taking place. So, we knew this would
    take time. We look forward to helping with the study in any way
    we can to really clarify the costing. Unfortunately, we have to
    assume that every single member would take the premium-free
    healthcare, which drives the cost up significantly, when we
    know that would not be the case. Many of them do have
    healthcare through their civilian employer.
        But there is a lot of other things related to this. We
    think it would have a significant impact, not only in
    recruiting, but also retention, so that the family would know,
    as long as their service member is serving in the Guard or
    Reserve, that they have healthcare. And so, if they are injured
    on deployment, or responding to a disaster in their community,
    that they are going to have the healthcare to get better, and
    come back, not only to be the breadwinner for their family, or
    part of that, but also to continue to serve their country.
        And so, anything we can do to help promote that, answer
    those questions, I think is going to be really important. When
    you look at the economic environment today, most businesses do
    offer that healthcare. And so, for us to be competitive in the
    recruiting environment, it is also a requirement for us as
    well.
        Senator Baldwin. Thank you. And tactical-wheeled vehicles
    are essential to supplying combat vehicles with fuel,
    ammunition, and spare parts to seize and control ground. In
    other words, tactical-wheeled vehicles are a critical backbone
    of the logistics needed to sustain and win a fight. I am proud
    that many of these vehicles are made wholly, or in part, in the
    State of Wisconsin.
        As this committee has discussed many times, clear
    communication with industry and consistently funded demand
    signals are critical for allowing our industrial partners to
    plan for and meet future demand.
        General Hokanson, can you provide the committee detailed
    National Guard vehicle requirements and plan purchases for both
    the family of heavy tactical vehicles and the family of medium
    tactical vehicles across variants and across the Future Years
    Defense Program?
        General Hokanson. So, Senator Baldwin, I will have our
    staff get the exact numbers. But as you mentioned, the heavy-
    and light- and medium-tactical vehicles are absolutely critical
    to our ability to move across the battlefield, but also to
    logistically support our Forces.
        And so, as I mentioned earlier, it is important that all of
    our Guard formations are man-trained and equipped, like their
    Active Duty counterparts, to reduce the variance of systems.
    But then also, we can operate more efficiently. So, we would
    love to do that, and we will continue to advocate as we field
    new systems that all of those come into the Guard and Reserve.
        Senator Baldwin. Thank you. And General Daniels, can you
    also provide this information to our committee?
        General Daniels. Yes, ma'am, absolutely.
        Senator Baldwin. Thank you.
        General Healy. Senator Baldwin, if I may? Can I give just a
    brief follow up to your initial question regarding access to
    healthcare and specifically to dental care?
        Senator Baldwin. Please.
        General Healy. One of the issues that has become more and
    more prevalent to us is the fact that the dental pay
    requirement is capped at $1,500 for our service members, so
    once any of their annual dental requirements exceed that, it is
    out of pocket. As a result of that historically low number of
    $1,500, we end up having over 700 of our service members not
    able to be ready to go and deploy, because we don't have the
    ability to enforce an out-of-pocket expense to our Airmen.
        Senator Baldwin. Thank you for that.
        Senator Tester. Senator Boozman.
        Senator Boozman. Thank you, Mr. Chairman. And thank all of
    you, all, we appreciate your service. We are going to miss
    those of you that are rotating out. But we do appreciate you so
    much and appreciate--and I think we always have to remember,
    this is a family affair, and not only you but your families
    that for many, many years have been so faithful.
        General Daniels, I understand the Funded Reimbursable
    Authority allows the Reserve component to answer combatant
    command and intelligence agencies' demand signals for increased
    support to meet intelligence activity mission requirements.
    General Daniels, can you describe what Funded Reimbursable
    Authority is, and how the active component would benefit if
    this was expanded to other high-demand specialties?
        General Daniels. Thank you very much, Senator Boozman. The
    Funded Reimbursable Authority allows the combatant commands to
    assess whether or not they have increased intelligence
    requirements. And if they do, they can take their operational
    maintenance dollars and convert them to Reserve component pay
    and allowances, which then allows our Reserve component members
    to support those intelligence activities and help with the
    readiness and help with the current threat assessments that the
    combatant commands are desiring.
        Senator Boozman. Very good. And will expanding the
    authority incur any additional cost?
        General Daniels. No additional cost would be required,
    because it is combatant command is looking at what resources
    they need, we are looking to expand to include not just
    intelligence but space, information operations, and cyber
    capabilities as a funded reimbursable capability that they
    could request from the Reserve components.
        Senator Boozman. So, it is a win-win; very good.
        General Hokanson, I have heard you mention the need to keep
    25 of the 25 Fighter Squadrons in the Air National Guard to
    meet demands of the National Defense Strategy and keep pace
    with our peer adversaries. Is the Air National Guard on track
    to keep 25 fighter squadrons? If not, what is the impact of
    losing fighter capability?
        General Hokanson. Senator Boozman, thank you. When you at
    the current 25 Fighter Squadrons that we have, we are currently
    in jeopardy of losing two of those, Martin State in Maryland
    and then Selfridge in Michigan. Both of those are A-10 units.
    In fact, the unit from Maryland is now redeploying from a
    tour--a deployment in the Middle East.
        When you look at the fact the Air Force is short of about
    1,000 pilots and 4,000 maintainers, I don't think we can afford
    to lose a single formation. And we actually looked at a plan
    by, we call it a temporary cross-component aircraft transfers,
    where we could cascade older fighter aircraft into these
    formations to retain them until production can catch up with
    replacing those aircraft.
        When you look at, there is 48 Fighter Squadrons in the Air
    Force right now, and I believe the requirement is 60, we are
    already critically short and the demand for those aircraft
    globally only goes up. Not only for capabilities but also the
    deterrent value that they provide, and so we are willing to do
    just about anything we can to retain those formations because
    once we lose them, then we literally lose them forever.
        Senator Boozman. Very good. Thank you.
        General Healy, I appreciate our discussion centered on the
    Air Force's efforts to reoptimize for great power competition.
    Can you share your perspective on how the Reserve component
    will be impacted by this reoptimization, and how your current
    posture can be leveraged to support future units of action for
    the Total Force?
        General Healy. Appreciate the question, sir. In short, the
    Reserves are ideally suited right now for the great power
    competition moves that the Air Forces, writ large, are making.
    Through our normal structure of being a relatively lean Force
    with regard to our own bases, operating 28 days a month on just
    25 percent of the staff, we are ideally suited to be able to
    show the cost savings while also showing the ability to
    effectively segregate the wing, create deployable combat wings.
        Meaning, the fighting Force is able to pick up and go
    forward while remaining behind is a base component that manages
    the base. We are perfectly suited for that, and we are only
    having to make minor changes in our manning structure in order
    to be ready for the first opportunity to employ this in 2027.
        With regards to the overall reorganization and
    reoptimization, what we discovered and what we were able to
    show the Active component in the entire Department of the Air
    Force is through the current construct of our organization. The
    Reserve component, or the Air Force Reserve specifically,
    underpins every MAJCOM (Major Command) and every aspect of the
    current construct.
        As the new construct develops, we also will underpin, and
    be integral, and integrated into each of these new portions. So
    again, ideally suited to enhance and move forward the Air
    Force's ability to utilize this new construct.
        I think, at the end, from an operator's perspective, great
    power competition is all about ensuring that we have the
    ability to fight and win if called upon. And I think the Air
    Force Reserve is going to provide deployable combat wings,
    combat generation wings, and in-place combat wings that will
    absolutely fill out the need that would be presented by the
    United States Air Force.
        Senator Boozman. Very good. Thank you, sir.
        Senator Tester. Senator Coons.
        Senator Coons. Thank you, Mr. Chairman, and Ranking Member.
    And thank you to all of our witnesses today for your service
    and your dedication to your Nation.
        And to General Hokanson, and Vice Admiral Mustin,
    Lieutenant General Daniels, thank you and congratulations on
    your upcoming retirement. I wish none of you were leaving.
        We look to you for advice and insight as we try to finalize
    our appropriations decisions. I am from Delaware, the Delaware
    Air National Guard is one of four States that are still working
    to secure C-130Js. I co-led a letter with Senator Barrasso to
    continue, frankly, to complete what has been, I think, an
    important acquisition process that helps support national
    security and ensure interoperability.
        I would be interested, General Hokanson, in how you see the
    Guard Bureau's role in completing the procurement of C-130Js
    and how that outfitting, in your view, might support national
    security, and how congressional support might be relevant.
        General Hokanson. Thank you, Senator. And when you look at
    the C-130 Fleet, obviously with any system, if we can procure
    fleet to the same model, it reduces maintenance, training, all
    sorts of costs, and we gain many efficiencies; and so, the
    intent for us to continue to advocate for the fielding of the
    C-130J in all of our squadrons so that we can capitalize on
    those cost savings. And so, we will continue to do that. I know
    we have four squadrons left to go. And our intent is to
    hopefully complete that within the next couple of FY DPs.
        Senator Coons. That is a high priority for me and for my
    home State. We also have in Delaware an Air National Guard unit
    that has, I think, both Guardsmen and Reservists, that is a
    strong cyber unit. It has both offensive and defensive
    capabilities, and it is, in my view, a great example of
    leveraging the private sector. We have very large data centers;
    many of you are probably carrying credit cards issued from the
    State of Delaware.
        And so state-of-the-art, very high-performing, very capable
    cyber professionals in the private sector have the opportunity
    to join and serve in both Guard and Reserve roles. I would be
    interested in hearing from you, General Hokanson, and also
    Lieutenant General Healy, how Air Guard units successfully
    leverage private sector resources to support national security
    at a lower cost? And what else you think we could be doing to
    support the outfitting and deployment of cutting-edge cyber
    units?
        General Hokanson. Senator, when I look at, we have got 66
    units in the National Guard, both Army and Air, in 42 States,
    and the capability they provide is pretty amazing. In fact, up
    to the highest levels within CYBERCOM, and this is because of
    our ability to leverage not only their military training, but
    their civilian training.
        In fact, a lot of the young kids say they can do things in
    their civilian job they can't do in the Military, and they have
    got things they can do in the Military they can't do in their
    civilian job. But by learning from both sides, they develop
    incredible capability. And not only on their Military side, but
    also under a State Active Duty to help mitigate cyber-attacks,
    or issues with networks within their community, where the
    Governor has the authority under State Active Duty to leverage
    them.
        John.
        General Healy. Yes, sir. I would add, so we are a little
    bit more modest within the Air Force Reserve, about 3,500 folks
    doing cyber mission, but very proud of it. Again, we have a
    retention rate right now of roughly 86 percent, which is
    fantastic. And what we are also doing in terms of how do we
    entice and how do we bring more online is we have currently got
    a direct commissioning program where in 2023 we direct
    commissioned three individuals. We have got three going in 2024
    with seven pending right now.
        So, it gives exactly what you are talking about, the
    opportunity for an individual on the civilian workforce to take
    their skills and their training that they get credit for, and
    then we are going to commission them straight into the Air
    Force Reserve.
        Senator Coons. Thank you for that example. Last question,
    if I could. The State Partnership Program is something I have
    strongly supported. I have had a chance to visit state units in
    the field, from the Baltics, to West Africa, to Southeast Asia.
    It is 30 years old, there is 92 partnerships touching 106
    countries. I think Montana's partner is Kyrgyzstan, if I am not
    mistaken. And I think Maine is Montenegro; Delaware, Mongolia.
    A country squeezed between China and Russia and eager for
    American help.
        What I have seen about the State Partnership Program is
    that it allows long relationships. No disrespect, but you know
    Active Duty folks tend to cycle in and out of a country, and I
    think the National Guard is the best example we have of
    civilian control of the Military, integration into civilian
    missions, disaster response, infrastructure or otherwise.
        What do you see, General, as the challenges to sustaining
    the State Partnership Program? What are the opportunities? What
    more could they be doing? I think some of the work we did with
    Ukraine between 2014 and 2022 made a transformational
    difference, and so I am a huge fan of the State Partnership
    Program.
        General Hokanson. Senator, we greatly appreciate your
    support of that program. And just as an example, if you look
    back to 2023, we did 1,750 global engagements, and as mentioned
    earlier, that is on 1 percent of our budget related to
    international interactions. When we look, the challenges we
    face going forward is as we add partners, we have actually
    added seven this year, is the startup costs are initially a
    little bit high, about $800,000 per partnership, but then the
    sustainment numbers continue to go down over time.
        And so stable, consistent funding, not having continuing
    resolution so we can have access to that fund early in the
    year, greatly appreciates it. When we get the funding late in
    the year, sometimes our state partners can't adjust their
    schedules quick enough, and so the earlier the better.
        But as you mentioned, Senator, the great thing is in many
    cases our State Military or the State National Guard is about
    the size of the country's Military. And because we are there,
    like they are, throughout their career, those relationships are
    critically important. Not only to develop capability and
    capacity, and their ability to protect their citizens, but also
    to have additional U.S. presence to counter the messaging they
    may see from some of our adversaries.
        Senator Coons. Absolutely. Thank you.
        Thank you, Mr. Chairman.
        Senator Tester. Impressive recall, but I noticed you didn't
    get to West Virginia.
        Senator Murkowski.
        Senator Murkowski. Thank you, Mr. Chairman. And to all of
    you, thank you for your leadership, your commitment, and all
    you have given for your country. We are appreciative and
    grateful. We recognize, so many of us recognize just the role
    of our Reserve Forces and all that they bring in terms of
    talent and experience to the fight. So, thank you.
        In Alaska, we certainly see that every day. Not only at the
    tip of the spear when it comes to Homeland defense, but all
    that goes on from the 24/7 radar operation, what they are able
    to do in search and rescue capability. We can't live without
    you. I think there is a song about that.
        Let me ask you, General Hokanson, because we have talked a
    lot about the Air National Guard transition of the 575 AGR
    (Active Guard Reserve) positions, to technician, billets,
    Alaska takes the greatest cut in the AGR Airman, that Senator
    Shaheen mentioned it from New Hampshire's perspective here.
        In the House NDAA, there was an increase to the Air
    National Guard's AGR ceiling. It added 403 positions. Does this
    provide enough stability to the Guard to pause the current
    full-time leveling? As we have discussed, Alaska is on a year
    pause. That is helpful, but is this the answer here? And as you
    are answering that, if you can share with me whether you have
    had conversations with either NORTHCOM (Northern Command), or
    the PACAF (Pacific Air Forces) that the General--excuse me,
    Secretary Kendall or General Saltzman on the impact that the
    full-time leveling would have on their ability to perform their
    missions?
        General Hokanson. Yes, Senator. So, when you look at the
    addition of about 400, that just moves the conversation 1 or 2
    years down the road. And what I asked our team as I said, Look,
    we have to stop iterating. Tell me what the actual solution is
    that we need. And so, when they did that full analysis and
    Alaska is a great example.
        What we are doing is we continue to ask more and more of
    our National Guardsmen, but we don't provide the full-time
    manning to sustain that, particularly when you have 24/7
    operations. And this week alone, we had an Air Force or a
    rescue unit saved six people in an airplane crash in Alaska.
    That capability is made possible by the full-time manning
    within those units.
        And so, when I told them, stop looking at the iterative,
    and tell me what the actual answer is. And so, they came up
    with 29,100. And we can actually show you exactly where that
    manning would be, to prevent making a decision where somebody
    has to go from an AGR to a technician position.
        As I mentioned earlier, we do have a legislative proposal
    in to fix the Technician Act, because it is just not
    competitive at all in today's environment. You can't live on
    that in Alaska. Those are very expensive environments, but we
    ask a lot of them.
        And so, as a result, you know, my best advice is to get
    29,100 AGRs within the Air National Guard, and then also to fix
    the Technician Program. I know we are working with your State
    to mitigate the impacts of that. We pushed it back a year,
    while we get this, hopefully, support, and all the data so that
    we can get the right answer, so we can continue to provide the
    capabilities that our communities and, frankly, our Nation need
    every single day.
        Senator Murkowski. Well, I appreciate your response to
    that. But I also recognize that as I talk to these AGR folks
    back home, they have got decisions to make. They have family
    commitments that they are looking to, and all they see right
    now is instability. And thank you for the 1 year reprieve, but
    this is not the only thing that they are looking at with
    concern.
        We have also talked and off a lot about the Space Force
    considerations, the fact that Air Force wants to force our Air
    Guardsmen into the Active Duty Space Force. There has been a
    lot of back and forth as--from National Guard Bureau is saying:
    It is not going to cost that much. Air Force says it is going
    to cost a lot.
        But what is really going to cost us is when these people
    vote with their feet, when they leave, and then we lose that
    experience that we have invested in them. And so, I know that
    this is, again, one of those issues that is generating a lot of
    debate out there. But I look at that, and I listen to what is
    being discussed up at Clear Air Force Station, as they are
    manning that operation.
        I look at what is going on with this leveling, and the
    greatest benefit that you have with your Reserves has been the
    stability that comes with these positions. And I note that,
    Lieutenant General Healy, you have shared that the recruiting
    efforts are great within Active Duty and Reserve Forces, but
    they are lagging within the Air National Guard. And it just
    causes me to wonder whether or not this self-inflicted
    instability is having a very detrimental impact on our ability
    to execute the mission, and really do right by our AGR folks.
        General Hokanson. Yes, Senator. And as you know, it is all
    about our people. The equipment is nothing without them. And we
    look at every one of our families. They want to take care of
    their families, and so they need that stability. And we all
    need that. And so, we are trying to do everything we can to
    provide that stability.
        And I have been very clear in my conversations about the
    Space Force from day one. You know, we actually have a Space
    National Guard. We are just not willing to admit it.
        Senator Murkowski. Right.
        General Hokanson. We have Space Forces that have been doing
    this----
        Senator Murkowski. They should come up and see, right?
        General Hokanson. Yes. For 27 years, we have been doing.
    So, it actually does exist. We just don't name it that. And
    when you look at the full-time manning requirements, 74 percent
    in our latest survey said that they want to stay in the Air
    National Guard. And frankly, we have been doing this for the
    past over 4 years since the creation of Space Force. And we can
    continue to do that. But if we don't take care of our people,
    if we don't give them predictability, those decades of
    experience that they have, that will take decades to replace,
    they are going to vote with their feet, and they are going to
    do something else. And at this point, the critical point in the
    history right now of global environments, now is not the time
    to lose those people.
        Senator Murkowski. Exactly. Thank you. Thank you, Mr.
    Chairman.
        Senator Tester. Senator Capito.
        Senator Capito. Thank you, Mr. Chairman. Thank you all for
    being here and to those who are rotating out, best wishes and a
    voice of gratitude.
        In terms of the State Partnership Program, since Senator
    Coons didn't include West Virginia, we have two partners, Peru
    and Qatar. So, I was going to ask a question about that. I
    might get back to that later.
        But General Hokanson--he is not even listening, but that is
    okay--the West Virginia National Guard has done the Ridge
    Runner Irregular Warfare Training every year, which is a
    partnership with the Irregular Warfare Center and the Ridge
    Healer Exercise, which focuses on austere medicine.
        So, I am proud of these programs, and have supported them
    through the appropriations process. And there are 11 partner
    countries now from the European and Indo-Pacific theaters that
    are training in irregular warfare and prolonged field care. Not
    to mention this provides the training and the validation for
    the Air National Guard Special Forces.
        So, I am not sure how familiar you are with Ridge Runner,
    but do you view this as a value-add for the Guard Bureau and
    for the DOD (Department of Defense)? And I would be interested
    in your perceptions, if you are familiar with this program.
        General Hokanson. So, Senator Capito, I am familiar with
    the exercise, and it is done there for a reason. And 11 nations
    come there for a reason.
        Senator Capito. Right.
        General Hokanson. Because of the capability and what they
    can learn in that environment. The team there does a great job,
    and the reason why it continues to grow is people see the value
    from that. It also helps us validate our Special Operations
    Forces before they deploy. And so, when you look at that field
    in Special Operations, they go where it works. And that works
    extremely well.
        Senator Capito. We are very proud of it. And I know it is
    growing, and certainly I will continue to support it through
    the Appropriations process.
        So, I am going to go over here to General Anderson. He has
    been so quiet over there. I have a general question for
    everybody, but I think it is an important one. The issue of
    modern equipment to the Reserve component that meets the
    requirements of an Indo-Pacific contingency should it come
    about, including extended range and tactical data link
    capabilities for our Air Mobility Fleets.
        So, I know we all saw how much our Reserve components were
    called upon in Iraq and Afghanistan. So, I would be interested
    to know from you--and we will just go down the line, as far as
    we can go with the time that I have--what specific
    modernization priorities could help your component meet today's
    requirements and be ready for a future conflict?
        General Anderson. Senator, thanks for the question. It has
    been a long silence over here at this end of the table.
        Senator Capito. Hoping to get by with that, but I wasn't
    going to let you.
        General Anderson. Being the new guy in the seat, I figured
    it was just a test. To your point on modernization, the
    responsibility of the Marine Corps Reserve, you know, to the
    parents that have allowed their young men and women to join, it
    is my responsibility to train and equip them for the current
    threat. And we do that with parity in the Marine Corps, and
    Active component, and the equipment that we have.
        One example is that we have a battalion that is going
    forward. They will be on UDP (Unit Deployment Program) in our
    priority theater this fall. So, these are all Reservists from
    the West Coast who will be trained and equipped for the current
    threat as we rotate and relieve some of those Active component
    Forces.
        The Marine Corps Reserve, to the point of some of the
    initial comments made at the start of this, is an operational
    Reserve. That is why Marine Reserves stay. They want to deploy,
    they want to have the new gear, and they want to be forward and
    facing the threat. So, it is certainly a priority of mine to do
    that, so they can answer the Nation's call. And more
    importantly, return home.
        Senator Capito. Um-hum. General Daniels.
        General Daniels. In terms of our priorities for equipment,
    we are looking--the Army has what is called Liquid Logistics,
    and so those are various different assets for water, petroleum,
    and so forth. And so, we need modernization of that kind of
    equipment, because you know, it is enough to have lethality,
    but then you need that support to keep the lethality to be able
    to sustain itself, so a lot of Reserve sustainment capabilities
    need modernization that are not of lethality, as well as
    communications and vehicles.
        Senator Capito. Thank you. General Hokanson.
        General Hokanson. Senator, so the great advantage we have
    in a Reserve component is not only capability but capacity. And
    what we see is fights aren't over in 2 weeks.
        Senator Capito. Right.
        General Hokanson. And so, it is great to have capability,
    but if you don't have capacity like we have in the Reserve
    component, then you jeopardize, really, a lot of your strategy.
    So, when I look across the Air Guard specifically, as I
    mentioned before, it is our Fighter aircraft. Those are the
    ones most urgent, followed closely by Tankers, and then C-
    130Js.
        On the Army side, we have to make sure that our divisions
    are fully capable, to deter somebody from doing something. And
    so, we need to grow to make sure we have attack helicopters,
    and Gray Eagles in all of our divisions.
        And then also, as the Army develops these multi-domain task
    forces to operate in the INDOPACOM and AOR, to make sure that
    we also field those in the Reserve component so we have the
    capacity so that our adversaries realize, not only capable but
    we have got depth, so we can last.
        Senator Capito. Um-hum. Vice Admiral.
        Admiral Mustin. For the United States Navy, both the
    capacity and the capability for intra-theater lift is a
    Reserve-only mission. And that is why my number one equipment
    priority is the recapitalization of our VR Squadrons, our C-130
    Squadrons, to the KC-130 Juliet. Right now, I am flying 33-
    year-old airframes, and struggling to keep them mission
    capable. And that is both a parts obsolescence issue, but also
    just a training and availability issue.
        So that is number one. And then number two is, we talked a
    little bit about the NGREA funding. That is another one where I
    am almost at a 20-year low, given the proposed AGD mark. So, I
    would certainly love to revisit how we can modernize our
    avionics on our existing aviation fleet, which is what we use
    NGREA for, as well as recapitalizing our ability to do
    expeditionary vertical launch reload, like we are doing in the
    Red Sea.
        Senator Capito. Um-hum. Yes, General.
        General Healy. You know, what I have been talking about,
    either in visits and to my superiors, is we provide an Air
    Force Reserve access and affordable mass, which is rails for
    the fight at cost. So, what we are doing with our NGREA dollars
    is ensuring that if we do have Legacy Aircraft, they are well
    tricked-out Legacy Aircraft.
        Senator Capito. Um-hum.
        General Healy. So that includes tactical data link, as you
    mentioned, for not only our F-16s, but all of our heavy fleet,
    large aircraft, infrared countermeasures so we have got the
    ability for C5s, C17s to defend themselves. We are talking also
    about survivable radar and missile warning systems for the 135s
    out there, so they actually know if something is coming at
    them. And one of our most impressive is the AESA Radar, which
    is the Active Electronically Scanned Array Radar, one of the
    most advanced radars in the world that we are putting into our
    Block 30 F-16s, which make them more than formidable.
        Senator Capito. Good. Well, that is a good list. And thank
    you for providing that. In terms of the state partnerships,
    just quickly, I will say, I just returned from a trip with
    Senator Moran, and some others, and we were all over the place:
    Finland, Sweden, Egypt, Greece, these state partnerships are
    not just meaningful to us and our States, but they all
    mentioned it as we went around, how the benefits that they
    reap, how they are stronger than ever, and how they really, not
    just like them, but feel like it is such a necessity, as we see
    the globe sort of shrinking right before us.
        So, thank you all very much. And thanks for the
    opportunity.
        Senator Tester. General Hokanson, I will go a little
    parochial with you, then. The Guard announced, spring of 2026
    to the fall of 2026, the C-130Js will be delivered to Montana.
    Do those dates still stand?
        General Hokanson. Yes, Senator, those dates still stand. I
    think April 2026 to October 2026, and then initial operating
    capability; and fully operational capability shortly
    thereafter.
        Senator Tester. Okay. And will they be--will the Js--will
    the Hs, the museum pieces, called the C-130-H will be swapped
    out for the Js on a one-to-one basis?
        General Hokanson. Senator, right now, I believe it is a
    two-for-two.
        Senator Tester. Okay.
        General Hokanson. That we will send two at a time, and make
    sure that our air crews and maintainers are well trained in
    advance.
        Senator Tester. Okay. My last question is for you and
    General Daniels; General Hokanson and General Daniels. This
    subcommittee has been made aware of two Anti-Deficiency Act
    Investigations involving the Army National Guard and Army
    Reserve, and both involve budgeting errors that happened during
    COVID. I would just like to have you both explain what
    happened, the status of the investigation, and what corrective
    actions have been implemented.
        Go ahead, General Hokanson.
        General Hokanson. Mr. Chairman, I can follow up with you on
    that, because that investigation has not been concluded yet. We
    are waiting for the conclusion and any recommendations or
    disciplinary----
        Senator Tester. When do you anticipate that conclusion?
        General Hokanson. Chairman, I have been following it
    weekly. I am hoping that it is done by the end of this month,
    or mid-July at the latest.
        Senator Tester. And when do you retire out?
        General Hokanson. September 1, Chairman.
        Senator Tester. Okay. So, we have got a little time. Okay.
    Go ahead.
        General Hokanson. Yes. Before I leave, Chairman.
        Senator Tester. Okay. Good. General Daniels.
        General Daniels. I am going to mirror his response if that
    is okay.
        Senator Tester. Okay. No problem. We look forward to
    finding out what happened, why it happened, and what corrective
    actions will be taken. Hopefully, you will be able to do that
    in writing, you know, moving forward.
        Senator Collins.
        Senator Collins. Thank you, Mr. Chairman.
        General Daniels, I understand from your testimony that the
    Army Reserve maintains approximately 18,000 Humvees and that
    almost half of them are beyond their useful life and need to be
    replaced. What is even more concerning to me is that the Army's
    budget request, unless I am misinterpreting it, only supports
    buying 16 Humvees, which just doesn't make sense to me, since
    it is so far below the 1,631 vehicles needed to maintain the
    minimum rate of production.
        I am pleased to see that the Army Reserve does plan to
    spend $29.5 million with its fiscal year 2024 NGREA funding to
    buy new production Humvees, if we do appropriate funding for
    NGREA in this coming fiscal year, do you expect to use portions
    of that funding to buy Humvees?
        General Daniels. Yes, ma'am, we do. We are looking,
    explicitly, because of the safety concerns of the older fleet
    and being able to have the new safety features of the anti-lock
    brakes and the electronic stability control kits, those are
    things we would like to see in the newer models for our safety
    purposes. So yes, we do look to expend our NGREA funds on
    Humvees.
        Senator Collins. Because that really is an extraordinary
    disparity between what you need and what the budget request is.
        General Hokanson, I want to follow up on a question that
    Chairman Tester started going down the road on, and that has to
    do with the obligation of funds. From 2015 to 2024, only 4.4
    percent of the DOD procurement budgets were allocated to Guard
    and Reserves, and this year's request, as I mentioned earlier,
    is barely 2 percent. I think that is totally inconsistent with
    the tremendous contributions that each of the components make
    to our national security.
        So what Congress did in response is to fund the National
    Guard and Reserve Equipment Account, NGREA, as it is called.
    And it provides procurement funding separate to address
    critical Guard and Reserve modernization needs.
        Now, I am very much aware that in the last 2 years,
    Congress has funded this separate account at a billion dollars
    per year. However, to follow up on the Chairman's point, a
    substantial fraction of the amount appropriated over the last 3
    years is still unobligated.
        Now, I understand how terrible continuing resolutions are
    for your ability to get your jobs done, but we are taking 3
    years and it looks like it is more than half has remained
    unobligated. It is difficult for us to make the case, which we
    want to make, if you are not obligating the money, and this
    seems to be across the board. So, tell me why it is taking so
    long to put the funding on contract for such needed equipment?
        General Hokanson. So, Vice Chair Collins, when you look at
    our--historically, our execution rate, though, it is 99 percent
    at the end of the period. And unfortunately, when we look at
    the demand for equipment, sometimes the delay is manufacturing
    capability to meet with it. But we do execute 99 percent, or
    over 99 percent of the funding at the end of the 3-year
    timeframe. But because of COVID and manufacturing issues,
    sometimes at the one to 2-year mark, it looks completely off.
    But we are usually able to obligate all of it, or 99 percent of
    it, within the time that we are authorized to do it.
        Senator Collins. I realize that you have a period of time
    that you can use. But is it accurate that about half of the
    funding appropriated over the last 3 years is still
    unobligated?
        General Hokanson. I can follow up with that, Vice Chair
    Collins, but my understanding is it all gets executed, it is
    just a matter of when we can get the contracts signed within
    the timeframe, so that we do make sure we don't leave money on
    the table, but sometimes the contracts are delayed, and we
    can't get them as soon as we would like them.
        Senator Collins. General Daniels, did you want to add
    something?
        General Daniels. I completely agree. We expand down to the
    last nickel because each one of those dollars is vital to our
    ability to modernize. We may not have it early on in that 3-
    year period, but we absolutely prioritize, rigorously
    scrutinize that list, and buy everything that we possibly can
    with the dollars that we receive.
        Senator Collins. Thank you. Thank you, Mr. Chairman.
        Senator Tester. I want to thank you all for your testimony
    and your concise answers with the questions. We appreciate
    that. As you guys can probably tell, this Committee appreciates
    your service to this country, and very much appreciate the
    folks who are hanging up their cleats come September. And we
    thank you for your service.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senators may submit questions for the record. We would ask
    you all if you get a question to respond to it as timely as
    possible.
        [The following questions were not asked at the hearing, but
    were submitted to the Department for response subsequent to the
    hearing:]
               Questions Submitted to General Daniel R. Hokanson
                   Questions Submitted by Senator Jerry Moran
        Question. The Army National Guard (ANG) and Customs and Border
    Protection (CBP) operate helicopters to secure the southern border. CBP
    helicopters fly similar missions to the ANG UH-72 Lakota, but with
    added ballistic protection. The latest B-model Lakota helicopters have
    more power, so adding ballistic protection should be feasible.
        Is there a material difference in the risk from ground fire between
    the missions flown by the CBP and the Army National Guard?
        Answer. Yes.
        Question. Is there a reason that the Army National Guard is flying
    unarmored helicopters while performing missions where ground fire is
    possible?
        Answer. Army Northern Command considers the environment as
    permissive therefore no ballistic protection is required on the
    aircraft assigned to the mission. Furthermore, due to the permissive
    nature of the mission, aircrews do not wear ballistic protection. The
    UH-72 is not fielded for, nor intended to be deployed to, non-
    permissible, combat, or hostile environments and therefore, the UH-72
    has never been considered to be equipped with ballistic protection.
        Question. Has the Army National Guard performed a risk assessment
    of National Guard Lakota helicopters supporting law enforcement
    missions? If so, how has the risk of groundfire been mitigated?
        Answer. The ARNG has not conducted an internal risk assessment of
    the SWB mission. Army Northern Command Group Task Force (T-10)
    maintains the mission's authority and responsibility and possesses the
    detailed intelligence, data, and metrics to determine operational risk.
    When conducting home station missions such as the counterdrug mission,
    the aircrews receive formal intelligence briefs/update provided by
    local law enforcements and agency to mitigate risk.
                                     ______

                   Questions Submitted by Senator John Hoeven
        Question. It is important that the Guard has capabilities
    equivalent to its Active Duty counterparts. We have been working to
    bring the Army's Gray Eagle mission to the Army National Guard, but
    there has been some confusion about the size of a company of Gray
    Eagles. It is my understanding that there was a Force Design Update
    (FDU) based on the Future Attack Reconnaissance Aircraft (FARA) program
    that reduced the size of a Gray Eagle company from 12 to 8 aircraft.
    However, as you know, the FARA program has been cancelled.
        With the FARA program being cancelled, does the FDU from 12 to 8
    aircraft still apply?
        Answer. Headquarters, Department of the Army (HQDA) approved a
    Force Design Update adjusting the Gray Eagle Companies from 12 to 8.
    HQDA has provided no justification to reverse this requirement in
    response to the cancellation of FARA.
        Question. How many aircraft does the modified table of organization
    and equipment (MTOE) recommend?
        Answer. The Army National Guard is in the process of fielding one
    (1) company with the ``K'' Series modified table of organization &
    equipment (MTOE), which includes twelve (12) Gray Eagle systems. That
    company was approved in the Army Structure (ARSTRUC) document for 2025-
    29 Army force structure. The ARSTRUC is the authorizing document for
    force structure across the Army, including force structure for the
    ARNG. The ARNG will continue to implement future force design updates
    based on subsequent ARSTRUC documents according to requirements
    informed by the Total Army Analysis (TAA).
        Question. The 119th Wing in Fargo, North Dakota has a number of
    Block 5 MQ-9 Reaper aircraft on-loan. This is significant because the
    Air Guard is not allowed to modify aircraft that is not permanently
    assigned, and the Air Guard--particularly the 119th Wing--has played a
    vital role in identifying ways to modernize the MQ-9 Reaper fleet.
        What are the plans to modernize the Air National Guard MQ-9 Reaper
    fleet?
        Answer. NGB is currently developing a plan with Air Combat Command
    and Headquarters Air Force to receive MQ-9 Block 5 aircraft from the
    current active-duty inventory at Holloman AFB.
        Question. When do you anticipate that Block 5 MQ-9 Reapers will be
    permanently assigned to the 119th Wing?
        Answer. Based on Air Combat Command's guidance, NGB anticipates
    initial assignment of Block 5 MQ-9 Reaper(s) to the 119th Wing to begin
    in FY 2025.
        Question. The 119th Wing is home to an Air National Guard Regional
    Training Site, one of just a few locations in the country that provides
    wartime mission training as well as proficiency training to U.S. Air
    Force and Air National Guard civil engineers. In the last few years,
    the Air Force Civil Engineer Center has made significant investments in
    how Airmen recover damaged airfields. In 2022, a new training program--
    Rapid Airfield Damage Recovery (RADR)--was expanded to the North Dakota
    Regional Training Site, which now trains Airmen from around the country
    on RADR.
        What plans do you have to ensure that the Regional Training Sites
    have the facilities needed to support the RADR training program?
        Answer. The 119th Civil Engineer Squadron has the necessary
    facilities to perform all required Rapid Airfield Damage Recovery
    (RADR) training. We continuously work with all our Wings to ensure they
    have the needed facility to support their mission requirements.

                             CONCLUSION OF HEARINGS

        Senator Tester. This committee now stands in recess.
        [Whereupon, at 11:28 a.m., Tuesday, June 18, the hearings
    were concluded, and the subcommittee was recessed, to reconvene
    subject to the call of the Chair.]

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2025

                                  ----------

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.

                           NONDEPARTMENTAL WITNESSES

        [Clerk's note.--The subcommittee was unable to hold
    hearings on nondepartmental witnesses. The statements and
    letters of those submitting written testimony are as follows:]
                   Prepared Statement of Activate Global Inc.
        On behalf of Activate Global Inc. (Activate), we are pleased to
    provide this written testimony to the Senate Appropriations
    subcommittee on Defense for the official record.
        Activate respectfully requests the subcommittee to provide at least
    an additional $8 million for the Entrepreneurial Fellowship Pilot in
    the fiscal year (FY) 2025 defense appropriations bill.\1\ Activate, in
    partnership with the U.S. Army Research Lab (ARL), is committed to
    investing in forward-thinking entrepreneurial fellows to foster early-
    stage innovative technology commercialization to accelerate and enable
    new national security capabilities across the defense innovation
    ecosystem.
    ---------------------------------------------------------------------------
        \1\ Program Element 0602182A, C3I Applied Research, Department of
    Defense, Army, 2040 Research, Development, Test & Evaluation.
    ---------------------------------------------------------------------------
        Founded in 2015, Activate is a 501(c)3 nonprofit organization that
    partners with U.S.-based funders and research institutions to support
    its fellows. Activate transforms scientists and engineers into
    founders, empowering them to reinvent the world by bringing their
    research to market around key technology focus areas \2\ through a
    model that has the potential to immediately innovate our Nation's
    national security pipeline. Activate's entrepreneurial fellowship model
    originated at Cyclotron Road, a program of Lawrence Berkeley National
    Laboratory and founding Activate partner. Activate has in-residence
    communities in Berkeley, Boston, New York, and Houston. With support
    from the National Science Foundation (NSF) through authorization
    granted in the CHIPS and Science Act of 2022, Activate has been able to
    scale to support additional fellows; partner with more Federal agencies
    and stakeholders; and create a new remote offering, Activate Anywhere,
    that supports fellows across the Nation in addition to its in-residence
    communities. For FY 2025, Activate is seeking to expand its reach
    across the Department of Defense (DoD) through ARL regional sites,
    strategically located in multiple locations across the Nation.
    ---------------------------------------------------------------------------
        \2\ https://www.activate.org/verticals.
    ---------------------------------------------------------------------------
                  activate's entrepreneurial fellowship model
        Activate strongly believes a 2-year fellowship pilot program in
    partnership with ARL would empower the most promising science
    entrepreneurs to transform their national security-relevant research
    into products that can benefit the warfighter and bolster the Nation's
    defense industrial base. Nearly all Activate Fellows receive follow-on
    financing from corporate, venture, or government partners to bring
    their products to market, ensuring the Nation remains at the forefront
    of scientific innovation.
        To date, Activate's 188 fellows have formed 147 companies and
    raised over $2.3 billion in follow-on funding, with 94% of companies
    still active. Additional support from Congress will ensure that this
    program continues to meaningfully scale and reach capacity while
    expanding support to more diverse scientists located around the U.S.
    Broadening the reach of this effective program would ensure more and
    better research translation outcomes nationwide and go a long way
    toward advancing our Nation's defense industrial base around numerous
    key technology areas.
        Since 2018, Activate has been working to deliver entrepreneurial
    fellowships with support from DoD through the Defense Advanced Research
    Projects Agency (DARPA)'s INNOVATE Program. The DARPA program will end
    in October 2024, having funded 27 microelectronics innovators who
    founded 22 companies that have raised over $163 million. A pilot
    program with the Army would expand Activate's footprint to other
    mission-driven agencies supporting DoD technology needs.
               the value of the entrepreneurial fellowship pilot
        With the ever-present need to stay competitive against our Nation's
    adversaries, rapid innovation is critical to developing and deploying
    advanced defense technology. The Entrepreneurial Fellowship Pilot would
    fund 12 Activate Fellows and their companies in support of the Army to
    accelerate new national security capabilities and enable faster
    innovation cycles. Funding for Army-specific entrepreneurial
    fellowships would foster early-stage innovation across Army Research
    Lab (ARL) regional sites, decreasing risk for Army-relevant technology
    research and eventually increasing speed of innovation by tapping into
    venture capital.
        Activate Fellows would support technology commercialization across
    ARL's core competency areas, including but not limited to: Biological +
    Biotechnology Sciences; Photonics, Electronics, and Quantum Sciences;
    Electromagnetic Spectrum Sciences; Mechanical Sciences; Sciences of
    Extreme Materials; Energy Sciences; and Network, Cyber, and
    Computational Sciences. This request would also expand and diversify
    the Army STEM workforce and further leverage defense laboratory
    resources, lab space, and lab equipment, while further enriching
    surrounding communities. Overall, Activate's 2-year fellowship pilot in
    partnership with ARL would help sustain military readiness, bolster
    technological superiority, and improve operational effectiveness.
                                   conclusion
        Given Activate's existing capabilities to support research across
    ARL's core competency areas, Activate respectfully requests the
    allocation of an additional $8 million for the Entrepreneurial
    Fellowship Pilot within the C3I Applied Research account (PE 0602182A)
    to embed fellows at Army Research Laboratory regional sites to foster
    the commercialization of national security technologies of interest to
    the Department of the Army and the broader defense industrial base.
        On behalf of Activate, we would like to thank you for the
    opportunity to provide this testimony. Please do not hesitate to
    contact us should you have any questions about Activate or the 2-year
    entrepreneurial fellowship pilot. Activate sincerely appreciates the
    subcommittee's long history of support for scientific research and
    innovation.

        [This statement was submitted by Karin Lion, Chief Growth Officer,
    Activate Global Inc.]
                                     ______

                 Prepared Statement of the American Society of
                         Tropical Medicine and Hygiene
        The American Society of Tropical Medicine and Hygiene (ASTMH)--the
    largest international scientific organization of experts dedicated to
    reducing the worldwide burden of tropical infectious diseases and
    improving global health -appreciates the opportunity to submit
    testimony to the House Appropriations Committee's subcommittee on
    Defense. ASTMH urges the subcommittee to protect funding for malaria
    research at the Department of Defense. Our request pertains to both the
    Congressionally-Directed Medical Research Program (CDMRP) and research
    funding in the Defense Health Program budget.
    protecting malaria research programs at the walter reed army institute
               of research and the naval medical research center
        Every year, the Department of Defense (DoD) ranks malaria as one of
    the leading infectious disease threats to our men and women in uniform.
    Combatant commanders support continued disease research for the benefit
    of service members forward deployed in malaria-endemic countries, and
    also partner and ally militaries, Americans traveling abroad, and for
    the good of all people living with the threat of the disease.
        Despite this history of need and impact, malaria research programs
    at the Walter Reed Army Institute of Research (WRAIR) and the Naval
    Medical Research Center (NMRC)--the world's premier malaria research
    programs--are on the verge of elimination due to U.S. Army budget cuts
    enacted without the consent of Congress or combatant commanders. In
    recent years, DoD outlined a plan to eliminate malaria drug and vaccine
    research funding over the next few years. DoD has already in recent
    years reduced funding for malaria vaccine research by shifting and
    removing lines and program elements, but today the entire malaria drug
    and vaccine portfolio is at risk. This comes at a time when we are
    experiencing locally acquired cases of malaria in the US and the
    parasites that cause malaria and the mosquitoes that carry them
    continue to evolve and are adapting to new environments, showing signs
    of resistance to current drug treatments and insecticides, and deleting
    specific genes to evade our current testing methods to detect them.
    Further, there is the spread of a new invasive malaria vector, the
    Anopheles stephensi mosquito that can thrive in both rural and urban
    areas, and persist throughout dry seasons. It has been spreading to new
    regions and is an evolving threat. For example, if it invades large
    cities, the horn of Africa could face unprecedented-sized malaria
    outbreaks. This could put an additional 126 million people in urban
    areas at risk of malaria as well as US troops that may deploy to these
    areas.
        Cutting or eliminating malaria research programs at WRAIR and NMRC
    would be detrimental to troop readiness and protection, as well as
    global health, and represent a loss of talent and capability not easily
    rebuilt once gone. The shortsightedness of such a move is astounding
    given these anticipated impacts:
          1. DoD would lose world-leading infectious disease researchers--
            many of whom can and have pivoted to apply their expertise to
            COVID-19, Zika, and other threats when needed.
          2. The US government's essential bench-to-bedside malaria
            research capabilities would be lost, and our premier malaria
            research labs in need of rebuilding and restaffing. This would
            significantly hamper our capabilities when we have new military
            confrontations in malaria-endemic regions and when parasites
            become resistant to current malaria drugs--rendering treatments
            in use today by our military ineffective, and hinder our
            ability to develop new ones.
          3. Service members from every branch of DoD are currently
            deployed to malaria-endemic countries all over the world and
            this is unlikely to change any time soon. According to WRAIR,
            malaria infections among service members are responsible for an
            estimated 5,300-21,000 lost work hours and $1.12-4.37 million
            per year in evacuation and medical care costs.\1\ Further,
            rollbacks to funding for malaria research could gravely leave
            U.S. troops deployed in endemic areas without essential new
            critical life-protecting and life-saving antimalarial medical
            countermeasures.
    ---------------------------------------------------------------------------
        \1\ Biologics Research & Development. Walter Reed Army Institute of
    Research (WRAIR). https://wrair.health.mil/Biomedical-Research/Center-
    for-Infectious-Disease-Research/Biologics-Research-Development/.
    ---------------------------------------------------------------------------
    Given these potential impacts, ASTMH urges Congress to maintain support
            for malaria research in the Fiscal Year (FY) 2025 Defense
            Appropriations bill.
      including malaria on the list of diseases eligible for cdmrp funding
        ASTMH urges the subcommittee to include malaria on the list of
    diseases eligible for funding through the Peer-Reviewed Medical
    Research Program under CDMRP for FY 2025. The Peer-Reviewed Medical
    Research Program has been essential in supporting and supplementing
    funding for the DoD research labs and for attracting researchers to
    important work that will protect service members. Malaria was
    previously included as a research topic in the Peer Reviewed Medical
    Research Program in FY 2004, from FY 2012-2018 and FY2021-2024, but was
    excluded in FY2019-2020.\2\ Such sporadic inclusion undermines long-
    term research. A review of the Congressional Directed Medical Research
    Program database shows that, when malaria is included on the list of
    eligible research topics, there is robust demand for malaria research
    funding. As noted above, military malaria researchers at NMRC and WRAIR
    are working to develop drugs and vaccines designed to protect or treat
    healthy adults with no developed resistance to malaria--U.S. military
    and travelers. The Peer-Reviewed Medical Research Program's renewed
    inclusion of malaria and the military's work in this area is critical
    to maintaining both the health of our troops and protecting U.S.
    national security interests.
    ---------------------------------------------------------------------------
        \2\ Peer Reviewed Medical. Congressional Direct Medical Research
    Programs (CDMRP). https://cdmrp.health.mil/prmrp/topicareas/topicareas.
    ---------------------------------------------------------------------------
                                   conclusion
        With an estimated 249 million infections and an estimated 608,000
    deaths reported in 2022, malaria continues to pose a threat to U.S.
    military operations and the health and well-being of deployed military
    personnel.\3\ To ensure mission success and troop readiness in all
    theaters, it is critical that Congress support sustainable investments
    in U.S malaria R&D at the Department of Defense, particularly through
    WRAIR and NMRC, to increase our knowledge, understanding, and tools to
    confront infectious diseases. ASTMH appreciates the opportunity to
    share its expertise and we hope you will provide the requested FY25
    resources to the programs identified.
    ---------------------------------------------------------------------------
        \3\ World Malaria Report (2023). https://www.who.int/teams/global-
    malaria-programme/reports/world-malaria-report-2023.

        [This statement was submitted by Linnie Golightly, MD, President,
    American
    Society of Tropical Medicine and Hygiene.]
                                     ______

           Prepared Statement of the American Type Culture Collection
        Chairman Tester, Ranking Member Collins, and Members of the
    subcommittee:
        I appreciate this opportunity to provide written testimony on
    Defense appropriations for fiscal year 2025. My name is Dr. Joseph
    Leonelli and I have the honor of serving as the Senior Vice President
    and General Manager of ATCC Federal Solutions of the American Type
    Culture Collection (ATCC).
        ATCC is a non-profit organization founded in 1925 and headquartered
    in Manassas, VA. We serve as a national resource to the life science
    research and development community. Our team of over 670 employees
    provides the research community with the world's most diverse
    biological resource center with high-quality reagents that support and
    catalyze global health initiatives within the U.S. government,
    academia, industry, and research foundations. We have supported the
    Federal Government for over 50 years, with frontline research and
    development (R&D) and with biological research starting materials. Many
    of these biological specimens are cited as standards by the U.S. Food
    and Drug Administration (FDA), U.S. Department of Agriculture (USDA),
    Association of Official Analytical Collaboration (AOAC) International,
    Clinical and Laboratory Standards Institute (CLSI), US Pharmacopeia
    (USP), World Health Organization (WHO), and other organizations and
    agencies that are involved in public health, diagnostics, food safety,
    and clinical and therapeutic product development. ATCC exemplifies
    readiness and robustness to pivot to global pandemic response rapidly
    and seamlessly in its responses to several recent outbreaks (Zika,
    H1N1, and Ebola virus outbreaks) and the COVID-19 pandemic. For
    example, through the NIAID Biological and Emerging Infections Research
    Resources Repository (BEI Resources) program, managed by ATCC, we have
    provided more than 200,000 vials of SARS-CoV-2 and related coronavirus
    strains and reagents to over 3,500 researchers at 1,860 institutions in
    more than 77 countries. Through the CDC International Reagent Resources
    (IRR) contract, ATCC has shipped 69,245 products since the start of
    2020 to support the surveillance and detection of SARS-CoV-2 globally.
    These efforts were critical in the development of vaccines,
    diagnostics, and therapeutics. Aside from COVID-19, ATCC has been a
    vital partner in the Federal response to every notable emerging
    infectious disease outbreak in the last two decades, including H1N1
    swine influenza in 2009, MERS in 2012, Ebola in 2014, Zika in 2016 and
    MPOX in 2022.
        Specific to the Department of Defense, infectious diseases are a
    persistent threat to U.S. military personnel and pose a serious risk to
    military operations and the readiness, health, and effectiveness of
    current and future forces, and thus the security of our country.
    Furthermore, Warfighters are hospitalized more often for infectious
    diseases than those who are wounded in combat. Thus, the current
    national military strategy specifies a worldwide force protection
    capability that requires surveillance, prevention, diagnosis, and
    treatment to protect U.S. Forces against potential infectious disease
    threats. However, the increased demand for public health and pandemic
    response capabilities has highlighted inadequate resourcing and exposed
    deficiencies in coordination required for a rapid response to our
    National health security needs. Preparing for, responding to, and
    recovering from complex infectious disease outbreaks requires an
    integrated approach between government Departments and stakeholders.
    The development of innovative medical countermeasures must be pursued
    to address increasing resistance to currently available treatments
    while providing a continuous pipeline of potential solutions for
    protecting and treating military personnel from infectious diseases to
    strengthen military operational readiness and effectiveness.
        There's no greater evidence for ATCC's commitment to warfighter
    health than our integral role in supporting the U.S. government's
    public health responses. Since 2003, ATCC has had a proven record for
    acquiring critical reagents and supplies, the expansion and
    characterization of high-quality materials, and storage and global
    distribution where the materials are needed. Our actions have
    contributed to the rapid development and deployment of diagnostic
    assays and therapeutics for emerging and re-emerging infections. ATCC
    currently supports the Federal Government by providing well-
    characterized microorganism isolates, biorepository management
    services, and quality-assured technical documentation to screened,
    registered, and government-approved research laboratories. Through the
    BARDA Biospecimen Storage and Investigational Products (BSIP) program,
    ATCC serves as a national biorepository for clinical samples related to
    the pandemic vaccine development efforts. In conjunction with ATCC's
    commercial operations, these contracts afford us superior global
    logistics experience handling biological materials.
        To adapt and fortify the Nation's defense and biodefense systems
    against infectious disease vulnerabilities in the future, the
    Department must look at biotechnology beyond a means to improve medical
    care and vaccines and must capitalize on the biomanufacturing
    revolution to meet its capability gaps. Manufacturing products using
    biology will contribute to supply chain resiliency, enhance logistics,
    and create materials with novel, mission-required properties, which
    fortify the U.S. military's ability to provide integrated protection,
    treatment, and deterrence from infectious diseases.
        Thank you for your leadership and service on the Senate Committee
    on Appropriations and subcommittee on Defense on behalf of our
    country's brave and dedicated military personnel. Without question, our
    military men and women go above and beyond, risking their lives, in
    service to our country. I respectfully request your support for
    programs and funding for the Department's development of medical
    countermeasures (MCMs), which are crucial for health and biodefense
    preparedness and response against biological threats.

        [This statement was submitted by Joseph Leonelli, Ph.D., Senior
    Vice President and General Manager, American Type Culture Collection.]
                                     ______

           Prepared Statement of the American Urological Association
        The American Urological Association (AUA), the premier organization
    for urologists worldwide with over 15,000 urologists across the United
    States, thanks Chairman Tester, Ranking Member Collins, and fellow
    members of the committee for the opportunity to provide written
    testimony on the health needs of our military and veterans, including
    bladder cancer.
        Our testimony outlines the importance of combatting bladder cancer
    to our Nation's military and veteran population, as well as the need
    for expanded investments in research and new advances in treatment and
    care. We respectfully request an $8 million line item within the Fiscal
    Year (FY) 2025 Congressionally Directed Medical Research Programs
    (CDMRP) for bladder cancer to stabilize the field and fund
    groundbreaking science that can finally bend the survival rate of
    bladder cancer in the right direction.
        Bladder cancer is the fourth most diagnosed cancer in U.S. military
    and veteran populations, and the sixth most diagnosed cancer in
    Americans.\1\ The American Cancer Society estimates that in 2024,
    approximately 83,190 Americans will be diagnosed with bladder cancer
    and roughly 16,840 will lose their lives to this dreadful disease.
    While survival rates for other cancers have increased and treatment and
    risk management paradigms advanced, the 5-year survival rate for
    bladder cancer has not improved in more than 30 years and progress has
    lagged comparatively.
    ---------------------------------------------------------------------------
        \1\ VA News: Bladder Cancer and Veterans: What You Need to Know,
    May 11, 2022: https://news.va.gov/103200/bladder-cancer-and-veterans-
    what-you-need-to-know/.
    ---------------------------------------------------------------------------
        Congress has previously provided funding for bladder cancer
    research through the Department of Defense's Peer Reviewed Cancer
    Research Program within the CDMRP. Despite the support to date for
    innovative and competitive bladder cancer research, there remains an
    urgent need to provide predictable investment that will improve the
    outcomes for this deadly cancer. A dedicated funding line will help
    attract researchers to this field by demonstrating a sustained
    commitment to this work.
        The AUA represents the interests of urologists and urologic
    professionals across the United States. We know firsthand that new
    tools, treatments, and techniques are necessary to ensure that a
    bladder cancer diagnosis has good, long-term outcomes. Investments in
    research are fundamental to that end. Highlighting bladder cancer's
    importance to our military community by including a line item will
    ensure that the research field can grow and that more research
    applications are funded moving forward. This is particularly critical
    for younger investigators who may be interested in pursuing bladder
    cancer research but are unsure of the field's financial stability and
    the feasibility of their grant applications given extremely limited
    resources.
        The relevance to U.S. veterans is clear: many who served in the
    military were exposed to high levels of ``rainbow herbicides,''
    including Agent Blue and Agent Orange that are both recognized as
    highly toxic. In the National Defense Authorization Act for FY 2021,
    Congress directed the addition of bladder cancer to the Department of
    Veterans Affairs' list of presumptive diseases linked to Agent Orange
    exposure. This addition came after the National Academy of Medicine
    included bladder cancer on its list of ``suggestive evidence of
    association'' with Agent Orange exposure.
        Additionally, there is a growing body of evidence suggesting a
    significant link between exposure to burn pits and bladder cancer,
    which must be further explored. Unfortunately, bladder cancer is a
    lagging indicator for carcinogens given it tends to impact older
    individuals. However, we can be sure that there is likely a connection
    to burn pits based on other inhaled carcinogens being known risk
    factors.
        The AUA's Research Appropriations Committee met with members of the
    U.S. House Appropriations Committee earlier this year about this issue,
    making clear that establishing an $8 million Bladder Cancer Research
    Program under CDMRP is the AUA's top research priority in the FY 2025
    appropriations cycle. They were joined by a bladder cancer patient and
    veteran named Carlos Glender, who shared his story as part of these
    meetings, summarized below.
        Carlos was born in Evanston, Illinois in June of 1954. He started
    his professional career by serving 20 years in the U.S. Navy, in the
    field of naval aviation, from 1975 to 1995. After that, he worked as a
    Materials Manager for the cargo airline, Airborne Express in
    Wilmington, Ohio for 13 years. Following that position, he worked as a
    civil service Logistics Manager for the U.S. Air Force at Wright
    Patterson AFB, where he worked for 6 years. In the fall of 2016, Carlos
    noticed blood in his urine. His wife, who is a nurse, persuaded him to
    see his urologist.
        Carlos was diagnosed with Non-Muscle Invasive Bladder Cancer
    (NMIBC) in January 2017. He had surgery to remove the tumor and went to
    the nearest National Cancer Institute for a second opinion, which was
    the James Cancer Center at Ohio State University. They confirmed the
    cancer, and after another surgery, placed him on a BCG treatment
    regimen. Carlos has since completed 18 BCGs and he has been cancer free
    for over 7 years.
        Carlos received BCG, which is general standard of care treatment
    for bladder cancer. Notably, BCG is primarily used as a vaccine against
    tuberculosis and more than one hundred years old. In the past four
    decades, it has also become the main immunotherapy used to treat early-
    stage bladder cancer.
        The fact that the front-line treatment for bladder cancer is a
    tuberculosis treatment that's more than hundred years old speaks to the
    dire need for expanded investments in research and the treatment
    development pipeline. Second-line therapies for patients who recur
    after BCG are particularly lacking. Another high-impact area of focus
    in bladder cancer research is the development of novel therapies to
    avoid major surgery.
        It is clear more must be done, and that our men and women in the
    armed forces will directly benefit from advancements against bladder
    cancer given its higher incidence rate among veterans than the general
    public. Establishing an $8 million Bladder Cancer Research Program in
    FY 2025 would go a long way toward helping to stabilize the funding
    environment and recruiting the next generation of researchers to
    bladder cancer.
        We thank you for your time and attention to this urgent health
    priority for our military and veteran population.
                                     ______

       Prepared Statement of the Coalition for National Security Research
        On behalf of the Coalition for National Security Research (CNSR), a
    100-member-plus coalition of industry, academia, scientific and
    professional associations, and non-profits, we write to thank you for
    your support for the Defense Science and Technology (S&T) program in
    the fiscal year (FY) 2024 Defense Appropriations bill. We understand
    the FY 2024 appropriations cycle has been especially challenging as
    Congress has debated overall funding levels for the Federal Government;
    we sincerely appreciate Congress' careful consideration of Defense S&T
    funding throughout the process. As you transition to considering the FY
    2025 Defense Appropriations bill, we urge you to prioritize the Defense
    S&T program once again.
        As you know, the Pentagon continues to ignore the congressional
    direction included in the Defense appropriations bills and unilaterally
    removes the generous--and essential--funding increases Congress
    provides to the 6.1, 6.2, and 6.3 program elements that comprise the
    Defense S&T program. As a result, these accounts were cut significantly
    in the FY 2025 budget compared to FY 2024 appropriated levels. Perhaps
    even more concerning, the Administration's FY 2025 budget request for
    Defense S&T is in general less than its FY 2024 request. We are deeply
    concerned by this trajectory. The looming threats of near-peer conflict
    and increasing gray zone activity mean it is imperative we adequately
    fund Defense S&T and basic research.
        To provide a clear overview, the table at the end of this document
    summarizes the recent funding history and our specific requests for the
    program elements most relevant to our coalition. While each PE has its
    own unique portfolio of work, they share two key characteristics: (1)
    The Defense basic research funded by these programs support the R&D
    that contributes to revolutionary technological capabilities. (2) These
    programs directly and indirectly strengthen our defense industrial base
    workforce.
               military capabilities to win strategic competition
        We must invest in the foundational research that underpins our
    National security and technological superiority. Prior investments in
    DoD basic research have led to advances in hypersonics testing, various
    quantum technologies, creating semiconductors fueling defense radar
    systems, improvements in solar cell efficiency, laser technologies,
    stealth capabilities, night vision, GPS, sonar, radar, precision
    munitions, biosensors, and near-real-time delivery of battlefield
    information. Current investments in DoD basic research are working
    towards next-generation sensor technologies to improve situational
    awareness (optics, materials science, electrical engineering);
    autonomous vehicles to support Service members in the field (AI,
    cognitive psychology, underwater robotics, aeronautics); new strategies
    for enhancing Service members' health and performance (bioengineering,
    material science, genetics, neuroscience); new systems to improve
    maintenance of key equipment (optics, electrical engineering, AI,
    mechanical engineering); and more.
        Unfortunately, there is growing evidence--in reports from groups
    like the House Select Committee on the Strategic Competition Between
    the United States and the Chinese Communist Party (House CCP
    Committee), DoD and the National Science Board (NSB)--

      --the United States is falling behind in the race for leadership in
            certain critical technologies; \1,2\
      --China currently is the world leader in hypersonics and aims to
            overtake the West in AI R&D by 2025; \3\ and
      --China has the largest Navy in the world, placing further importance
            on the developing military technologies to provide strategic
            advantages.\4\
    ---------------------------------------------------------------------------
        \1\ https://selectcommitteeontheccp.house.gov/media/policy-
    recommendations/reset-prevent-build-strategy-win-americas-economic-
    competition-chinese.
        \2\ https://ncses.nsf.gov/pubs/nsb20243.
        \3\ https://media.defense.gov/2023/Oct/19/2003323409/-1/-1/1/2023-
    MILITARY-AND-SECURITY-DEVELOPMENTS-INVOLVING-THE-PEOPLES-REPUBLIC-OF-
    CHINA.PDF.
        \4\ Ibid.

        University and Basic Research Initiatives: The Army, Navy and Air
    Force each have a University Research Initiative (URI) program element
    that supports critical multidisciplinary research (through MURI) as
    well as the instrumentation (through DURIP) that is needed to create
    transformational military technologies. The Office of the Secretary of
    Defense has a comparable program called Basic Research Initiatives
    (BRI). Investments in BRI and URIs have resulted in new domestic
    semiconductor manufacturing capabilities, advances in quantum computing
    and communication, military drones, nanotechnology, and sensor enabling
    navigation in GPS compromised environments among many other military
    technological capabilities.
        In FY 2025, the Pentagon includes a URI program element for the
    Space Force as well. While CNSR is pleased to see this inclusion in the
    budget request, we are concerned it comes at the expense of Air Force
    research. We continue to investigate the budget details to understand
    the impacts, and we urge Congress to ensure that Air Force and Space
    Force URIs both have the support they need.
        Minerva Research Initiative: Many of the National security
    challenges we face are social or have social elements to them. Minerva
    serves as DoD's signature social science basic research program, and
    each Service contributes some funding for Minerva to support their
    social science research priorities. Minerva research provides an
    important source of new ideas to better understand social, behavioral,
    cultural, and political aspects that are inherent to our security
    stability. is contributing to areas of strategic interest to DoD such
    as AI/machine learning, contested maritime water issues, cyber and
    ransomware, and China's rise in foreign affairs among others.
        Defense Advanced Research Projects Agency (DARPA): DARPA's ability
    to create truly revolutionary new military capabilities is well
    documented. With no intramural research laboratories, DARPA relies on
    partners, such as CNSR members, to conduct transformational scientific
    research to advance military technologies. In fact, more than 90
    percent of DARPA's R&D budget is awarded extramurally. DARPA-sponsored
    research with industry and the academic community has led to stealth
    capabilities, unmanned aerial systems, metamaterials, advances in
    microelectronics and the computer chips fueling AI technologies.
              strengthen defense industrial base and s&t workforce
        The Defense basic research programs described above are a critical
    component of ensuring the U.S. has a robust defense industrial base
    (DIB) and S&T workforce. When adequately resourced, individuals funded
    by these research programs can enjoy a long career of intellectually
    stimulating projects that have larger national and social impacts, as
    well as access to state-of-art facilities and equipment. Furthermore,
    basic research program elements support a wide range of programs
    dedicated to strengthening the industrial base workforce by attracting
    the most creative minds to solve complex military challenges and
    training students in fields of critical interest to DoD.
        This work is essential as DoD estimates that the DIB will require
    more than 4 million total jobs to maintain sustainable throughput in
    2030.\5\ The various subsectors that make up the DIB, like advanced
    manufacturing (missing 2.1 million worker) \6\ and semiconductors
    (missing 67,000 workers) \7\, are anticipating labor shortfalls in that
    same time period. Additionally, a DIU report on the space sector calls
    out workforce as a top industry concern.\8\ According to the House CCP
    Committee, this is happening at the same time China is gaining on the
    U.S. in the race for global talent. They find that the CCP has invested
    heavily in scientific and technological education, which has resulted
    in as many as five times as many STEM graduates as the United States.
    ``It is clear the United States needs more individuals working on
    research and development in critical and emerging technologies,'' they
    say.\9\
    ---------------------------------------------------------------------------
        \5\ https://www.defense.gov/News/News-Stories/Article/Article/
    3540407/dod-is-taking-steps-to-shore-up-industrial-workforce/.
        \6\ https://www2.deloitte.com/us/en/insights/industry/
    manufacturing/manufacturing-industry-diversity.html.
        \7\ https://www.semiconductors.org/chipping-away-assessing-and-
    addressing-the-labor-market-gap-facing-the-u-s-semiconductor-industry/.
        \8\ https://www.diu.mil/latest/ssib23-report-calls-for-action-to-
    build-enduring-advantages-in-space-for.
        \9\ https://selectcommitteeontheccp.house.gov/media/policy-
    recommendations/reset-prevent-build-strategy-win-americas-economic-
    competition-chinese.
    ---------------------------------------------------------------------------
        Defense S&T Scholarship and Fellowship Programs: With adequate
    resources, DoD programs--like the Science, Mathematics, and Research
    for Transformation (SMART) Scholarship-for-Service Program and the
    National Defense Science and Engineering Graduate (NSDEG) Fellowship--
    support DoD's ability to recruit and educate the future DoD civilian
    STEM workforce and DIB. These programs provide unique pathways for STEM
    students to pursue high quality educations--which include research
    internship opportunities--and begin a rewarding career with the DoD.
        Programs Ensuring Everyone is Engaged in Defense S&T: Only by
    ensuring everyone in the U.S. has the opportunity to engage in the
    Defense and S&T enterprises can we meet the challenges of today and
    tomorrow. The National Defense Education Program (NDEP) supports a
    comprehensive workforce development and training by funding activities
    such as the manufacturing engineering education program, enhanced
    civics education, after-school programs, competitions, and internships
    for students and professional development and training for educators.
    For institutions of higher education (IHE), DoD's Historically Black
    Colleges and Universities and Minority-Serving Institutions (HBCU/MI)
    program brings a diverse pool of talent to engage in critical
    discovery, while the Defense Established Program to Stimulate
    Competitive Research (DEPSCoR) ensures DoD is resourcing IHEs across
    the U.S. regardless of institution type or geographic location.

                                     ______

              Prepared Statement of Department of Defense STARBASE
        I write to respectfully and personally request the Defense
    subcommittee fund the Department of Defense (DoD) STARBASE Program at
    $60 million for Fiscal Year 2025. This level of funding, a $7 million
    increase in total enacted FY24 funding, will allow the DoD to launch
    additional programs, expand existing capacity, and upgrade classroom
    technologies.
        DoD STARBASE is an effective outreach in Science, Technology,
    Engineering, and Mathematics (STEM) educational programs for elementary
    and secondary school students. STARBASE provides 25 hours of STEM
    instruction, along with hands-on after school STEM activities. Since
    its inception in 1993, DoD STARBASE has served more than 1.7 million
    students from 38 States and territories in more than 590 schools
    districts. In addition, DoD STARBASE locations have documented 14,254
    volunteers contributing 191,288 hours to the program; valued at
    $6,013,543, the efforts of all these volunteers demonstrates strong
    community support for the DoD STARBASE program locations.
        In FY2023, DoD started three new STARBASE program sites. Although
    the program's on-going funding remains uncertain, DoD has approved
    start-up funding in FY2024 for Offutt Air Force Base, Nebraska, and
    Fort Barfoot Maneuver Training Center, in Blackstone, Virginia. The
    first Coast Guard STARBASE program site at Elizabeth City, North
    Carolina is expected to receive start-up funding in FY2024 as well. An
    additional 17 locations remain on the waiting list for a STARBASE
    program site in the future. Currently, a total of 86 DoD STARBASE
    program sites are located on military installations nationwide.
        Strong evidence-based evaluations of STARBASE program participants
    show significant improvement in the students' understanding, interest,
    and abilities in math and science, which has led to increased
    enthusiasm in pursuing STEM education. Studies conducted by Wilder
    Research and the University of New Mexico, identify long-term program
    impacts on students' high school graduation, college enrollment, and
    interest in STEM. Survey results indicate that former DoD STARBASE
    students and military personnel have incredibly positive feelings about
    DoD STARBASE, even a decade later.
        With its national reach and broad record of success, STARBASE is a
    key tool in the DoD's ongoing national efforts intended to close the
    STEM achievement gap with other nations. The STARBASE program is also a
    key tool in bolstering relationships between the DoD and local
    communities, through assured access to military installations while
    fostering awareness of military culture.
        Continued interest and knowledge in STEM are important to our
    Nation and the state of Oregon's future as we strive to build and
    sustain a highly educated and skilled workforce capable of meeting the
    advanced scientific and technological requirements of the DoD. STARBASE
    Oregon is currently serving over 5,000 underserved students annually
    and has significantly enriched the educational landscape in local urban
    and rural communities for over two decades. The potential closure of
    Oregon's four STARBASE program sites due to insufficient funding would
    severely impact these students, depriving them of the invaluable
    exposure to hands-on STEM curriculum.
        For all these reasons and more, I ask that the DOD STARBASE Program
    receive your full support for Fiscal Year 2025.
        Thank you for your consideration of this request as well as your
    past support of the STARBASE program. The point-of-contact to answer
    any additional questions you may have is: Jordan Brown, Executive
    Director, STARBASE Oregon, at: Jordan.Brown@omd.oregon.gov.

        Sincerely,

        Alan R Gronewold
        Brigadier General
        The Adjutant General
                                     ______

          Prepared Statement of the Foundation for American Innovation
        Chairman Tester, Ranking Member Collins, and members of the
    subcommittee:
        My name is Dan Lips. I am Head of Policy at the Foundation for
    American Innovation, a think tank focused on promoting innovation,
    strengthening governance, and advancing national security. I write to
    respectfully request that the Committee include report language
    requiring the Department of Defense (DoD) to include in its annual GAO-
    IG Act report ``estimated completion dates'' for all open Government
    Accountability Office (GAO) and Inspector General (IG) recommendations.
    Further, the Committee should require DoD to identify currently
    unimplemented recommendations that could achieve substantial cost
    savings for American taxpayers, strengthen national security, and
    improve the safety and wellbeing of military personnel and their
    families.
        DoD will spend more than $800 billion in FY2024.\1\ Defense
    spending accounts for nearly half of the Federal Government's
    discretionary spending.\2\ But the Federal Government is facing a
    fiscal crisis that will create increasing pressure on discretionary
    spending, including the defense budget. For example, according to the
    Congressional Budget Office, the Federal Government will spend more on
    net interest than the defense budget in 2024 and in subsequent
    years.\3\ The scenario unfolding is what once caused former Joint
    Chiefs of Staff Michael Mullen to warn in 2010 that ``the most
    significant threat to our National security is our debt,'' since the
    Nation's ability to appropriately resource the military depends on
    fiscal and economic conditions.\4\
    ---------------------------------------------------------------------------
        \1\ Office of the Under Secretary of Defense (Comptroller)/Chief
    Financial Officer March 2024, United States Department of Defense
    Fiscal Year 2025 Budget Request (2024), https://
    comptroller.defense.gov/Portals/45/Documents/defbudget/FY2025/
    FY2025_Budget_Request_Overview_Book.pdf.
        \2\ Congressional Budget Office, Discretionary Spending in Fiscal
    Year 2023: An Infographic, March 5, 2024, https://www.cbo.gov/
    publication/59729.
        \3\ Congressional Budget Office, The Budget and Economic Outlook:
    2024 to 2034 (2024), https://www.cbo.gov/system/files/2024-02/59710-
    Outlook-2024.pdf.
        \4\ CNN Wire Staff, ``Mullen: Debt Is Top National Security
    Threat,'' CNN, August 27, 2010, https://www.cnn.com/2010/US/08/27/
    debt.security.mullen/index.html.
    ---------------------------------------------------------------------------
        Congress has a responsibility to take broader actions to course
    correct the Nation's ``unsustainable long-term fiscal path.'' \5\ But
    the subcommittee and DoD also have an opportunity to achieve
    substantial cost savings and improve DoD's performance.
    ---------------------------------------------------------------------------
        \5\ Government Accountability Office, ``A Warning About Our
    Nation's Fiscal Health,'' February 16, 2024, https://www.gao.gov/blog/
    warning-about-nations-fiscal-health.
    ---------------------------------------------------------------------------
        Through the FY2023 Omnibus Appropriations Act, Congress required
    GAO to issue a report estimating the potential cost savings that could
    be achieved if Federal agencies acted upon the congressional watchdog
    agency's unimplemented recommendations.\6\ According to its report
    responding to Congress, GAO estimated that implementing all of GAO's
    open recommendations and matters for Congressional consideration
    ``could produce $92 billion to $182 billion of measurable, future
    financial benefits.'' \7\ However, the watchdog agency indicated that
    this was a conservative estimate, since the estimate did not include
    ``certain individual recommendations that may have large potential
    financial benefits, such as one for equalizing certain Medicare payment
    rates that the Congressional Budget Office estimated could result in
    $141 billion in financial benefits.'' \8\
    ---------------------------------------------------------------------------
        \6\ FY2023 Omnibus Appropriations Act, Legislative Branch Division
    I--Explanatory Statement, https://www.appropriations.senate.gov/imo/
    media/doc/Division%20I%20-%20Leg%20
    Statement%20FY23.pdf.
        \7\ Government Accountability Office, GAO-23-106598, Potential
    Financial Benefits: Estimating the Value of Implementing Open GAO
    Recommendations (2023), https://www.gao.gov/assets/gao-23-106598.pdf.
        \8\ Ibid.
    ---------------------------------------------------------------------------
        Regarding the Department of Defense, GAO explained that it had made
    more than 7,600 recommendations for DoD since 2001, and that GAO had
    identified 251 instances of financial benefits totaling $151 billion
    and 4,300 other (non-financial) benefits from these recommendations.\9\
    Further, GAO conducted a simulation that estimated that DoD could
    achieve between $28 billion and $44 billion in savings if it
    implemented open recommendations.\10\
    ---------------------------------------------------------------------------
        \9\ Ibid.
        \10\ Ibid.
    ---------------------------------------------------------------------------
        As of May 8, 2024, GAO reports that more than 780 recommendations
    (including 43 priority recommendations) for DoD remain open.\11\ More
    than 200 of these recommendations (including more than 20 priority
    recommendations) were made more than 4 years ago,\12\ which is
    important since GAO has warned that recommendations not made within 4
    years are less likely to be implemented.\13\
    ---------------------------------------------------------------------------
        \11\ ``Recommendations Database,'' GAO, May 8, 2024, https://
    www.gao.gov/reports-testimonies/recommendations-database.
        \12\ Author analysis of a downloadable spreadsheet of open
    recommendations for the DoD as of May 8, 2024.
        \13\ Government Accountability Office, GAO-24-900483, Performance
    and Accountability Report FY2023 (2023), https://www.gao.gov/assets/
    d24900483.pdf.
    ---------------------------------------------------------------------------
        With its budget submission, DoD included an appendix in response to
    the GAO-IG Act, which includes detailed information about the status of
    each open GAO and Inspector General recommendation. A review of DoD's
    recommendation database shows that the ``Estimated Completion Data for
    Full Implementation'' was listed as ``to be determined'' for 86
    recommendations (including for 47 recommendations made more than 4
    years ago).\14\ Similarly, 91 open IG recommendations had a ``to be
    determined'' completion date (including for 26 recommendations made
    more than 4 years ago).\15\
    ---------------------------------------------------------------------------
        \14\ Comptroller, Department of Defense, Good Accounting Obligation
    in Government Act (GAO-IG Act) report (2024), https://
    comptroller.defense.gov/Budget-Materials/. Author analysis of
    spreadsheet data.
        \15\ Ibid.
    ---------------------------------------------------------------------------
        To help achieve taxpayer savings and achieve other improvements,
    the Committee should require DoD to do the following:
        First, the Committee should include report language encouraging DoD
    to provide estimated completion dates for all unimplemented GAO or IG
    recommendations in its GAO-IG Act reports in FY2026 and future years.
    Providing a clear timeline for the implementation of open
    recommendations would allow Congress to hold the Department accountable
    for achieving cost savings and achieving other improvements to
    strengthen DoD's improvements in future years.
        Second, the Committee should require DoD to identify currently open
    recommendations that could achieve significant cost savings and
    expedite their implementations. The Committee could require the DoD to
    brief Congress on these recommendations and provide a plan of action to
    implement them in a timely manner. GAO and IG recommendations likely
    provide a reasonable starting point for achieving substantial cost
    savings within DoD's budget. Requiring DoD to identify and brief
    lawmakers on recommendations that would achieve substantial cost
    savings and provide a plan for swift implementation would help Congress
    use its legislative, oversight, and appropriations authorities to
    increase the efficiency of the National defense budget.
                                     * * *
        The Federal Government's serious fiscal challenges will require
    Congress and DoD to increase efficiency to maintain the Nation's
    defense. Implementing nonpartisan watchdog recommendations in a timely
    manner should be a priority for Congress and DoD.

        [This statement was submitted by Dan Lips, Head of Policy,
    Foundation for American Innovation.]
                                     ______

              Prepared Statement of the Friends of Ukraine Network
        Mr. Chairman, members of the committee, the Friends of Ukraine
    Network (FOUN) is an initiative of the U.S.-Ukraine Foundation and is a
    coalition of Ukraine experts--leading policy and international security
    professionals.
        Each year since the Russian Federation first invaded Ukraine in
    2014, FOUN has developed, published, and distributed annual Priority
    Recommendations for U.S. Assistance to Ukraine. Within those
    Recommendations the FOUN National Security Task Force has, among other
    recommendations, included specific weapons and weapon systems that
    Ukraine needs to defeat Russia.
        Again, this year specific weapons systems and capabilities are
    included in our 2024 Recommendations which are attached to this
    statement. Some of these systems are finally being provided but the
    need is that they be provided in sufficient numbers and with the
    critical support required to allow the people of Ukraine to defend
    their country and defeat the Russian invader.
        In addition to FOUN's specific recommendations we call to the
    subcommittee's attention and to the attention of the Secretary and the
    Chairman of the Joint Chiefs our ``Longer Term'' recommendation.
        Starting on Page 17 you will find: The Bottom Line: Putin will not
    stop until he is stopped. If given what it needs, Ukraine will stop
    Putin.
        In a critical message, FOUN addresses the nature of Putin's regime
    and urges our government and the West to internalize the reality that
    we will continue to face a long-term strategic confrontation with
    Russia. Like it or not, Russia has declared itself our enemy.
        Russia must understand that there can be no normalization of
    relations until it upholds--in deed as well as in word--the fundamental
    principles laid down in the Helsinki Final Act, Paris Charter, and the
    NATO Russia Founding Act, it will be equally important for the United
    States and allied to see there is no normalization until Russia's
    behavior upholds those principles.
        We must see Russia and Putin for what they are and have and
    implement a strategic plan to deal with them accordingly.
        The National Security Task Force of the Friends of Ukraine Network:

      --Chair--Ambassador John Herbst--former U.S. Ambassador to Ukraine--
            head of Eurasia Center at the Atlantic Council

      --General Philip Breedlove USAF (Ret) Former Supreme Allied Commander
            Europe

      --Ian Brzezinski--Former Deputy Assistant Secretary of Defense for
            Europe and NATO Policy

      --Debra Cagan--Former State and Defense Department official

      --General Wesley Clark USA (Ret) Former Supreme Allied Commander
            Europe

      --Luke Coffey--Senior Fellow, Hudson Institute

      --Ambassador Paula Dobriansky--Former Under Secretary of State for
            Global Affairs

      --Ambassador Eric Edelman--Former Under Secretary of Defense for
            Policy, U.S. Ambassador to Turkey, U.S. Ambassador to Finland,
            and Principal Deputy Assistant to the Vice President for
            National Security Affairs

      --Lt. General Ben Hodges USA (Ret) Former Commander U.S. Army Europe

      --Glen Howard--former President of the Jamestown Foundation

      --Dr. Don Jensen--John Hopkins University

      --Dr. Phillip Karber--President of the Potomac Foundation

      --David J. Kramer--Former Assistant Secretary of State for Democracy,
            Human Rights & Labor

      --Robert McConnell--Co-Founder, USUF, former Assistant Attorney
            General

      --Secretary Leon Panetta--Former Secretary of Defense, Former
            Director of the CIA, Former White House Chief of Staff, and
            Former Director of the Office of Management and Budget

      --Herman Pirchner--President, American Foreign Policy Council

      --Peter Rough--Senor Fellow and Director, Center for Europe, and
            Eurasia at Hudson Institute
      --Ambassador Sandy Vershbow--Former U.S. Ambassador to Russia and
            Former Deputy Secretary General NATO

      --Ambassador William Taylor--Former U.S. Ambassador to Ukraine

      --Ambassador Kurt Volker--Former U.S. Ambassador to NATO

        In addition, we include here before the attached 2024 Priority
    Recommendations For U.S. Assistance to Ukraine an article by FOUN
    member, Ambassador Kurt Volker pointing out the path to a Ukrainian
    victory.

    THE BIDEN ADMINISTRATION MUST ENSURE UKRAINE A PATH TO VICTORY. HERE'S
                        HOW.

        Posted: April 26th, 2024

        By Ambassador Kurt Volker

        OPINION--With the successful House of Representatives vote on
    Ukraine aid behind us, the Senate and the White House will move quickly
    to put the $61 billion package into law. No doubt, the U.S. military
    has already been pre-positioning ammunition and equipment so it can
    deliver key elements of aid as soon as possible.
        This is a key moment in ways that not everyone has grasped and
    reveals significant positives. Some 71% of House members voted in favor
    of the bill, reflecting resounding bipartisan U.S. support for Ukraine
    at both the political and popular levels. Several members of Congress
    favoring passage, highlighted the growing connections between Russia,
    Iran and China, a new axis of authoritarians who are actively working
    together. This is a clear-eyed assessment of the threat facing the free
    world.
        Former President Donald Trump provided political cover to House
    Speaker Mike Johnson to proceed with this legislation when the two met
    on April 12. This is a clear sign that if re-elected, Trump does not
    want to inherit a disaster. While he wants peace, he wants peace
    through strength, not peace through weakness and capitulation.
        So much for the good news. The bad news is that the delays and
    difficulty in passing the aid bill put U.S. national security at risk
    and should serve as a warning that this process cannot be allowed to
    drag on. We must no longer give Ukraine just enough to survive, but not
    enough to win. A Ukrainian victory is essential to re-establish peace
    in Europe, to deter Chinese aggression in Asia, and to reinforce
    Iranian worries about attacking Israel ever again. Several measures
    should be taken immediately.
      --The Biden Administration must clearly and unequivocally back up
            President Biden's statement on December 12 saying, ``We want to
            see Ukraine win the war.'' America's objective is a Ukrainian
            victory. This message needs clear and consistent repetition
            from the highest levels of the U.S. Government and must be
            backed up with the policy decisions necessary to make this a
            reality. There must be no equivocation with the President's
            words. We must have strategic clarity. Lower-ranking American
            officials must stop avoiding the words ``win'', ``victory'' and
            ``Russian defeat''.
      --Now that funding is assured, the U.S. military should flood Ukraine
            with massive quantities of arms and ammunition as quickly as
            possible. The Russian military is in a weak condition with poor
            equipment, training, morale and leadership but it has made
            gains in recent months due to Ukraine's lack of ammunition.
            Russian forces need to feel ``shock and awe'' to understand
            that the battlefield has now changed, and that time is not on
            their side. We need to begin deterring Russia against further
            aggression rather that assuring it that we seek to avoid
            ``escalation''. Rather than worrying about what Putin might do,
            Putin should worry about what we might do.
      --As part of this, the Biden Administration must lift all artificial
            and self-imposed limits on aid to Ukraine. The U.S. should
            provide Ukraine with its longest-range ATACMS ballistic
            missiles, which can reach Sevastopol, the Kerch Strait Bridge
            and Russian logistical concentrations well behind the front
            lines. It should stop declaring Russian territory as ``off
            limits'' for Ukrainian targeting and instead urge Ukraine only
            to hit militarily relevant targets which is consistent with
            international law. It should declare already de-commissioned
            aircraft sitting in the Arizona desert as Excess Defense
            Articles and begin providing A-10 ground attack aircraft, F-16
            combat aircraft and other airframes to Ukraine in order to
            build a properly scaled Ukrainian Air Force that can deny
            Ukrainian airspace to Russian aircraft.
      --The administration should work closely with Turkey, Romania and
            Bulgaria (our Black Sea NATO allies) to expand de-mining
            capacities and engage in freedom of navigation operations in
            the Black Sea. Under the Montreux Convention, non-belligerent
            nations can bring warships into the Black Sea for 21 days at a
            time. This should allow for a persistent presence in the region
            to deter Russian attacks on commercial shipping.
      --France, the United States, the UK and other NATO allies should form
            a 'coalition of the willing' to directly assist Ukrainian
            defense of its cities, civilians and non-military
            infrastructure from drone, missile and rocket attacks--just as
            they did recently with Israel. This can be done by establishing
            together with Ukraine, a 'cordon sanitaire' in Ukrainian
            airspace adjoining NATO. This could be done from NATO territory
            only, or also within Ukraine itself. Hitting unmanned vehicles
            that are only aimed at harming Ukrainian civilians and for
            example, their power plants, and present a risk to neighboring
            NATO territory does not require nations to engage Russian
            forces directly. It only requires engaging in the humanitarian
            protection of civilians as well as preventing any accidental
            strikes on NATO territory. Such a cordon could extend hundreds
            of miles into Ukrainian airspace and increase the protection
            afforded to Lviv, Odesa and Kyiv while relieving the country's
            overworked and under-armed missile crews.
      --The United States should begin to build consensus within NATO for
            increasing burden-sharing in support of Ukraine by turning the
            Ramstein military assistance process into a NATO clearing house
            mechanism and establishing a fund as proposed by Secretary
            General Jens Stoltenberg to provide consistent military support
            to Ukraine despite hiccups in U.S. and European processes. The
            United States should contribute to this fund but it should be
            based on the same percentages assigned to funding for other
            NATO budgets, i.e., a contribution of around 2%.
      --The United States should also begin building consensus within NATO
            for an invitation at the July Washington Summit for Ukraine to
            begin talks about its accession to NATO as soon as possible.
            Such an invitation is essential to tell Vladimir Putin that he
            will never defeat Ukraine, to help provide a Ukraine victory
            strategy and to lay the foundation for a future European peace
            settlement.
      --The U.S. Congress should move swiftly to approve a lend-lease
            facility for Ukraine up to $500 billion. U.S. assistance to
            Ukraine is necessary and appropriate but to avoid gaps in
            available funding in the future, Congress should pre-position
            authority for Ukraine to borrow from the U.S. for its defensive
            needs. This is how the United States saved Great Britain in
            World War II and it is entirely appropriate today in the case
            of Ukraine. Such a move would also signal to Putin that we can
            outlast and outspend Russia no matter what he does, so his
            adventure in Ukraine must come to an end.
        The House of Representatives vote is a watershed but it does not
    assure victory and peace in and of itself. It now must be followed by
    decisive action from the U.S. administration to bring about a Ukrainian
    victory and in doing so, to re-establish the conditions for permanent
    peace, prosperity and security across Europe and to re-establish
    deterrence on that continent, in the Middle East and Asia.
        The consequences of failing to do so must not be underestimated
    because they could be dire.
                                     ______

       Prepared Statement of The HALO Trust and Mines Advisory Group U.S.
        As the world's largest humanitarian demining organizations, The
    HALO Trust and Mines Advisory Group (MAG) U.S. protect lives and
    restore livelihoods of those threatened by explosive hazards. We remove
    and destroy landmines, improvised explosive devices (IEDs) and other
    explosive remnants of war and help secure weapons that could fall into
    the hands of terrorist groups. For 20 years, HALO and MAG have
    partnered with the U.S. Department of Defense's (DOD) Humanitarian
    Demining Research and Development (HD R&D) Program in more than 15
    countries and territories. This program, implemented by the U.S. Army,
    specializes in developing and testing innovative technologies to detect
    and clear landmines, unexploded ordnance (UXO), and IEDs. These
    technologies increase the effectiveness, efficiency, and safety of
    demining operations for military and humanitarian use--saving lives and
    taxpayer money.
        The HD R&D team designs technologies to respond to technical
    challenges in the field, drawing from new commercial technology,
    equipment currently in use by the DOD, and advanced sensor technology
    available only through other DOD R&D programs. They then trial
    prototypes in real field conditions through partnerships with the
    Department of State's (DOS) humanitarian demining programs. During
    field evaluations, operators provide feedback on the functionality and
    effectiveness of the equipment. This allows HD R&D to modify and
    improve the equipment and increase the U.S. military's technical
    capacity to respond to explosive threats.
        HD R&D produces four specific outcomes. First, the field evaluation
    process collects data that helps improve demining technologies used by
    the U.S. Armed Forces and support geographic combatant commands in
    achieving humanitarian mine action objectives. Second, successfully
    trialed equipment is used to train and equip explosive disposal units
    of the U.S. military as well as allied militaries. By equipping partner
    militaries to address their own explosive threats, U.S. soldiers are
    more likely to remain out of harm's way. Third, HD R&D equipment
    removes explosives to save civilian lives, most frequently children,
    and amplifies the impact of American assistance by increasing the
    amount of clearance performed on DOS projects without increasing costs.
    Fourth, the HD R&D program supports American jobs by utilizing American
    manufactured machines and products, when possible, in their equipment
    development process.
        The HD R&D Program has a track record of success, having performed
    nearly 250 operational field evaluations in 44 countries since 1995.
    The program is responsible for developing advanced technology for the
    Handheld Standoff Mine Detection System (HSTAMIDS), which combines
    metal detection with ground penetrating radar, the rotary mine comb,
    designed to efficiently excavate low metal content anti-vehicle mines,
    and TRAXX, built to cut through hard-to-see tripwires and lift mines
    from soil. Overall, HD R&D equipment has been used to clear more than
    26,600 acres of land, and to destroy more than 420,000 mines and UXO.
        As you know, HD R&D now receives funding from the following
    account: Research, Development, Test & Evaluation, Army/PE: 0603920A/
    Program Title: Humanitarian Demining. Due to strong bipartisan support,
    the program received $23.068 million in Fiscal Year 2024. However, the
    FY25 President's Budget proposes only $9.272 million for HD R&D, which
    would represent nearly a 60% decrease from the previous year's
    appropriation. This proposed funding reduction would substantially
    curtail the ability of the HD R&D program to develop necessary demining
    equipment that would otherwise protect members of the Armed Forces.
        HD R&D equipment has created huge cost savings for humanitarian
    demining programs managed by the State Department through increased
    efficiencies. Through the deployment of HD R&D-developed HSTAMIDS
    detectors, HALO's program in Zimbabwe estimates a cost savings of
    approximately $16 million over the last 7 years and the program was
    able to clear in 5 years what would have otherwise taken eight. These
    detectors have saved roughly $3 million every year in HALO's Cambodia
    program, and an evaluation of these detectors in Angola between January
    and March 2023 saw a 950% increase in efficiency as compared to
    traditional methods. The Rebel Crusher, a mobile soil sifter and rock
    crusher used by MAG in Lebanon and Iraq has allowed for mine clearance
    at a rate five times faster than with a traditional demining team.
    Remote-controlled Robocut machines, used to cut through tripwires in
    Ukraine, has accelerated clearance rates by an estimated 500%. The
    Wirehound, used to identify hard-to-detect IED components, has
    increased clearance by over 200% compared to traditional methods. The
    FAE Mulcher, a vegetation clearing tool being used by MAG in Cambodia,
    can clear 200% more area than a single deminer using a handheld
    strimmer. Investing in resources for HD R&D will allow humanitarian and
    military deminers to eliminate threats far more quickly.
        Innovative technology developed by HD R&D also protects deminers.
    Advanced machines including the Mini MineWolf and the Medium MineWolf,
    can operate remotely to physically destroy anti-personnel (AP) and
    anti-tank (AT) landmines with no threat to demining personnel.
        This program has a long list of unfunded projects it is waiting to
    trial, including expanding the global use of drone technology with
    various sensors to reduce the amount of time to identify explosive
    hazards and counter-IED machines in Iraq and Libya. The HD R&D Program
    also requires resources to address the heavy contamination and varied
    threat types across Ukraine, where the program is evaluating several
    technologies to address the complex operational environment, including
    advanced attachments to John Deere equipment, U.S.-manufactured remote
    demining robots, and the expansion of the Scorpion detection system.
    Further, investments in advancements in artificial intelligence
    combined with demining technology has the potential to dramatically
    increase efficiencies.
        We appreciate the support this subcommittee has provided for this
    valuable program, and urge the subcommittee to raise funding to a level
    of $25 million in FY25 for HD R&D. This additional funding will improve
    the ability of U.S. soldiers and our allies' ability to safely detect
    and clear landmines, UXO, and IEDs. This funding is especially
    important as new conflicts uncover new challenges in Ukraine and the
    Middle East.
        Thank you for your consideration of this request.

        [This statement was submitted by Chris Whatley, Executive Director,
    The HALO Trust and Jamie Franklin, Executive Director, Mines Advisory
    Group U.S.]
                                     ______

                      Prepared Statement of Humacyte, Inc.
        Chairman Tester, Ranking Member Collins, and Members of the
    subcommittee:
        Thank you for this opportunity to provide written testimony on
    Defense appropriations for fiscal year 2025. My name is Laura Niklason
    and I am the Founder, President, and Chief Executive Officer of
    Humacyte, Inc.
        Humacyte is developing a disruptive biotechnology platform to
    deliver universally implantable bioengineered human tissues, advanced
    tissue constructs, and organ systems designed to improve the lives of
    patients and transform the practice of medicine. The Company develops
    and manufactures acellular tissues with the potential to treat a wide
    range of diseases, injuries, and chronic conditions. Humacyte's initial
    opportunity, a portfolio of Human Acellular Vessels (HAVs), is
    currently in late-stage clinical trials targeting multiple vascular
    applications, including vascular trauma repair, AV access for
    hemodialysis, and peripheral arterial disease. Preclinical development
    is also underway in coronary artery bypass grafts, pediatric heart
    surgery, treatment of type 1 diabetes, and multiple novel cell and
    tissue applications. Humacyte's 6mm HAV for AV access in hemodialysis
    was the first product candidate to receive the FDA's Regenerative
    Medicine Advanced Therapy (RMAT) designation and has also received FDA
    Fast Track designation. Humacyte's 6mm HAV for urgent arterial repair
    following extremity vascular trauma also has received RMAT designation.
    The HAV received priority designation for the treatment of vascular
    trauma by the U.S. Secretary of Defense. In February 2024, the FDA
    accepted and granted Priority Review of Humacyte's Biologics License
    Application (BLA) seeking approval of the HAV in urgent arterial repair
    following extremity vascular trauma when synthetic graft is not
    indicated, and when autologous vein use is not feasible. The
    Prescription Drug User Fee Act (PDUFA) date, the FDA action date for
    their regulatory decision regarding the BLA, is August 10, 2024.
        Vascular injury sustained on the battlefield is a leading cause of
    death and disability in military settings and has increased
    significantly in recent conflicts.\1\ Alternative conduits for vascular
    repair, reconstruction and replacement are needed in life threatening
    severe vascular injuries because the current standard of care is
    limited by harvest time, availability of veins to harvest, increased
    infection risk, and poor outcomes.\2\ Regenerative medicine research
    and development, funded by the Department of Defense (DoD), has
    advanced the creation of universally implantable, bioengineered human
    tissue conduits that model themselves after and mature into vessels
    that resemble the patient's own vasculature and resist infection.\3\
    ---------------------------------------------------------------------------
        \1\ Patel JA, et al. A contemporary, 7-year analysis of vascular
    injury from the war in Afghanistan. J Vasc Surg. 2018;68(6):1872-1879.
    doi:10.1016/j.jvs.2018.04.038.
        \2\ Morrison JJ, et al. Clinical implementation of the Humacyte
    human acellular vessel: Implications for military and civilian trauma
    care. J Trauma Acute Care Surg. 2019;87(1S Suppl 1):S44-S47.
    doi:10.1097/TA.0000000000002350.
        \3\ Pottol K, et al. Hope regenerated. Army AL&T. January-March
    2018:51-55. https://www.army.mil/article/198646/hope_regenerated.
    ---------------------------------------------------------------------------
        Blast injuries are common for military personnel in theater, and
    account for the majority of vascular trauma suffered by warfighters.\4\
    Researchers have found vascular trauma is five times higher in the
    Global War on Terror as compared to previous wars.\5\ Explosions and
    gunshots are the two leading causes of injuries in contemporary combat
    operations and carry a substantial risk of wound contamination due to
    the penetrating nature of the trauma.\6\ Limb salvage strategies
    include vascular repair in these patients, with resistance to infection
    and repair durability being of particular importance, considering the
    contaminated wound settings and the young age of most service members.
    ---------------------------------------------------------------------------
        \4\ Williams, T.K., Clouse, W.D. (2018). Vascular Injuries. In:
    Galante, J., Martin, M., Rodriguez, C., Gordon, W. (eds) Managing
    Dismounted Complex Blast Injuries in Military & Civilian Settings.
    Springer, Cham. https://doi.org/10.1007/978-3-319-74672-2_11.
        \5\ Shireman PK, Rasmussen TE, Jaramillo CA, Pugh MJ. VA Vascular
    Injury Study (VAVIS): VA-DoD extremity injury outcomes collaboration.
    BMC Surg. 2015;15(1):13. Published 2015 Feb 3. doi:10.1186/1471-2482-
    15-13.
        \6\ Khorram-Manesh A, Goniewicz K, Burkle FM, Robinson Y. Review of
    Military Casualties in Modern Conflicts-The Re-emergence of Casualties
    From Armored Warfare. Mil Med. 2022;187(3-4):e313-e321. doi:10.1093/
    milmed/usab108.
    ---------------------------------------------------------------------------
        Traumatic wounds caused by blast injuries are almost always
    contaminated, and often compromise the vascular supply to limbs and
    organs. The most common permanent vascular repair procedures used today
    are associated with risks such as further damage and complications to
    limbs where repair vessels are harvested from patients (autograft) and
    infection from implanted synthetic vascular grafts. Repairing these
    contaminated injuries via current methods carries a high risk of
    complications and infection, meaning that there is a lack of suitable
    conduit available to effectively repair vascular injuries in most war-
    injured patients.
        The shift towards biologic solutions in treating civilian and
    humanitarian vascular trauma represents a significant opportunity for
    advancement in military medical care. These solutions are particularly
    beneficial in combat settings, where the risk of infection and the need
    for rapid healing are paramount. Biologic grafts, being more
    biocompatible than synthetic alternatives, reduce the body's immune
    response, leading to better integration and fewer postoperative
    complications. This advantage is crucial in combat scenarios where
    soldiers need to recover quickly and return to duty. The improved
    biocompatibility and reduced rejection rates associated with biologic
    solutions could significantly enhance the long-term health outcomes of
    injured service members.
        I appreciate this opportunity to provide written testimony and want
    to thank you for your leadership. The Department of Defense has a
    pivotal role in enhancing military medical capabilities by focusing on
    biologic solutions for vascular trauma and I respectfully request your
    support for funding and programs for the advanced development of
    innovative solutions in vascular repair therapies that offer improved
    outcomes in terms of biocompatibility and reduced rejection rates
    (immunogenicity), which is vital in battlefield scenarios and for
    saving the lives of severely injured Warfighters.
        Thank you.

        [This statement was submitted by Laura Niklason, M.D., Ph.D.,
    Founder,
    President, and Chief Executive Officer, Humacyte, Inc.]
                                     ______

         Prepared Statement of the Human Factors and Ergonomics Society
        On behalf of the Human Factors and Ergonomics Society (HFES), we
    are pleased to provide this written testimony to the Senate
    subcommittee on Defense and Related Agencies for the official record.
    HFES urges the subcommittee to provide robust funding levels for
    Research, Development, Test, and Evaluation (RDT&E) at the Department
    of Defense (DOD) in the fiscal year (FY) 2025 appropriations process.
    Specifically, we urge the subcommittee to direct DOD to identify
    opportunities across the services to transition human performance
    research to defense RDT&E activities and acquisition programs to reduce
    cost, strengthen force protection, reduce the potential for re-
    engineering, and enhance training.
        HFES and its members believe strongly that investment in scientific
    research serves as an important driver for innovation and the economy,
    and for maintaining American global competitiveness. Accordingly, we
    thank the subcommittee for its longtime recognition of the value of
    scientific and engineering research, and its contribution to innovation
    in the U.S.
               the value of human factors and ergonomics science
        HFES is a multidisciplinary, professional association with over
    3,500 individual members worldwide, including psychologists,
    scientists, engineers, and designers, all with a common interest in
    designing safe and effective systems and equipment that maximize and
    adapt to human capabilities.
        For over 50 years, the U.S. Federal Government has funded
    scientists and engineers to explore and better understand the
    relationship between humans, technology, and the environment.
    Originally stemming from urgent needs to improve the performance of
    humans using complex systems such as aircraft during World War II, the
    field of human factors and ergonomics (HF/E) works to develop safe,
    effective, and practical human use of technology. HF/E does this by
    developing scientific approaches for understanding this complex
    interface, also known as ``human-systems integration.'' Today, HF/E is
    applied to fields as diverse as transportation, architecture,
    environmental design, consumer products, electronics and computers,
    energy systems, medical devices, manufacturing, office automation,
    organizational design and management, aging, farming, health, sports
    and recreation, oil field operations, mining, forensics, and education.
        With increasing reliance by Federal agencies and the private sector
    on technology-aided decision-making, HF/E is vital to effectively
    achieving our National objectives. While a large portion of HF/E
    research exists at the intersection of science and practice-that is,
    HF/E is often viewed more at the ``applied'' end of the science
    continuum-the field also contributes to advancing ``fundamental''
    scientific understanding of the interface between human decision-
    making, engineering, design, technology, and the world around us. The
    reach of HF/E is profound, touching nearly all aspects of human life
    from the healthcare sector to the ways we travel, to the hand-held
    devices we use every day.
           human factors and ergonomics at the department of defense
        HFES strongly believes that Federal investments in DOD-funded
    research will have a direct and positive impact on national security,
    the economy, and the overall safety and well-being of Americans. For
    this, HFES supports robust funding for DOD RDT&E programs, including
    HF/E research programs across the Services to encourage further
    advancements in technology and safety, among other areas.
        With the creation of the Department of Defense Human Factors
    Engineering Technical Group (DOD HFE TAG), DOD has demonstrated the
    value it places on the inclusion of HF/E-related research and has
    acknowledged the benefit of interagency collaboration, as it relates to
    RDT&E in this field. DOD HFE TAG is comprised of technical
    representatives from DOD, the National Aeronautical and Space
    Association (NASA), the Federal Aviation Administration (FAA), the
    Department of Homeland Security (DHS), and the Department of Veterans
    Affairs (VA).
        The scope of this working group is broad, making its benefits
    diverse. The goals of DOD HFE TAG are to:
      --Provide a mechanism for the timely exchange of technical
            information in the development and application of human factors
            engineering.
      --Enhance coordination among government agencies involved in HF/E
            technology research, development, and application.
      --Assist in the preparation and coordination of tri-service
            documents, and sponsor in-depth interaction, which aids in
            identifying HF/E technical issues and technology gaps.
        In addition, the American National Standards Institute recently
    approved ANSI/HFES 400-2021, the Human Readiness Level Scale in System
    Development Process. This standard, created by HFES, defines the nine
    levels of the Human Readiness Level (HRL) scale and provides guidance
    for their application in the context of systems engineering and human
    systems integration processes. The HRL scale both complements and
    supplements the existing Technology Readiness Level scale to evaluate,
    track, and communicate the readiness of a technology or system for safe
    and effective human use. The HRL standard is currently being utilized
    by DOD program managers as a voluntary standard.
        HFES strongly believes that all DOD programs developing new
    technologies should be required to report to the Department on the HRL
    of their systems on an annual basis. The HRL should be reported for
    each major component of new military systems and should be used to
    identify deficiencies and areas where additional attention to human-
    system integration is warranted to reduce risks to program schedules,
    human safety, and effectiveness. DOD's HRL scale should correspond to
    the requirements set forth in ANSI/HFES 400-202.
        Ahead of implementing an HRL scale, the Secretary of Defense, with
    the Under Secretary of Defense for Acquisition and Sustainment and with
    the Under Secretary of Defense for Research and Engineering, should
    determine how any materials from ANSI/HFES Standard 400-2021 can be
    incorporated or referenced in DOD procedures and guidance material in
    order to enhance safety in relation to human factors. The Secretary
    should report on the current HRL level of major development and
    acquisitions programs and compare them to the current listed Technology
    Readiness Levels. By reviewing and ultimately incorporating this
    standard DOD will better understand if needed human-system integration
    activities have been conducted before deploying new national security
    systems and technologies.
        Continuing to prioritize HF/E research at DOD, along with
    incorporating the Department's use of the HRL system would undoubtedly
    produce positive impacts on the safety and well-being of American
    citizens.
                                   conclusion
        Given DOD's critical role in supporting fundamental research and
    development across defense and engineering disciplines, HFES supports
    robust funding levels for DOD RDT&E programs, especially those that
    specifically fund human factors RDT&E activities in FY 2025 as well as
    improvements to the inclusion of human systems integration in
    acquisition programs. These investments fund important research
    studies, enabling an evidence base, methodology, and measurements for
    improving organizational function, performance, and design across
    sectors and disciplines.
        On behalf of the HFES, we would like to thank you for the
    opportunity to provide this testimony. Please do not hesitate to
    contact us should you have any questions about HFES or HF/E research.
    HFES truly appreciates the subcommittee's long history of support for
    scientific research and innovation.

        [This statement was submitted by Carolyn Sommerich, President, and
    Steven C. Kemp, CAE, Executive Director, Human Factors and Ergonomics
    Society.]
                                     ______

               Prepared Statement of Manufacturing Times Digital
        On behalf of Manufacturing Times Digital (MxD), we are pleased to
    provide this written testimony to Senate Appropriations subcommittee on
    Defense for the official record.
        MxD respectfully requests the subcommittee to provide at least an
    additional $19,500,000 to accelerate and modernize the Army's organic
    industrial base (OIB) facilities and capabilities in the fiscal year
    (FY) 2025 defense appropriations bill. This funding will allow the
    Nation's digital manufacturing institute to implement enterprise-level
    digital modernization capabilities across the Army's arsenals and
    depots and harmonization efforts across the Army's Organic Industrial
    Base (OIB) facilities.
        Manufacturing Times Digital (MxD) is a DoD-sponsored public-private
    partnership that convenes the best of industry, academia, and
    government to strengthen and accelerate OIB digital modernization
    initiatives. Through our over 300 members, which includes the DoD,
    industry, academia, non-profit organizations, and other government
    stakeholders, MxD integrates multiple digital technologies and systems,
    helping manufacturers improve their operations and driving systemic
    productivity improvements. MxD is the National digital manufacturing
    institute and focuses on enhancing the global competitiveness of U.S.
    manufacturing by developing and deploying advanced digital
    manufacturing technologies, educating the present and future workforce,
    and securing the U.S. supply base. MxD, which is also the DoD-
    designated National Center for Cybersecurity in Manufacturing, was
    launched in February 2014 as the second national manufacturing
    innovation institute, a network known as Manufacturing USA. MxD is
    committed to developing the most cutting-edge technology and research
    to not only modernize the current state and condition of military
    facilities but to transform the Nation's arsenals and depots to provide
    flexible, agile, and technology-enabled infrastructure needed for
    future needs and capabilities. The proposed effort will result in a
    versatile and scalable modernization effort implementable throughout
    the State's OIB and beyond.
             mxd and the digital modernization accelerator program
        MxD proposes to scale their Digital Modernization Accelerator
    Program for Army Material Command (AMC) to help the Army fulfill the
    goals of its 15-year OIB Modernization Implementation Plan (MIP) \1\
    and overall Modernization Strategy.\2\ The Digital Modernization
    Accelerator Program, as authorized in the FY 2024 National Defense
    Authorization Act (NDAA), consists of a team of experienced and skilled
    technical fellows, engineers, and program managers to expand their
    existing OIB-focused Digital Manufacturing Modernization Accelerator
    program with the tools, techniques, and procedures (TTPs) needed for
    Army OIB modernization. The Digital Modernization Accelerator Program
    will support existing and future requests from AMC and their
    subordinate commands, to implement digital, cybersecurity, and work
    force development capabilities at all OIB installations. The first
    pilot is being conducted at Iowa Army Ammunition Plant and is expected
    to be scalable and transferable to the other OIB Arsenals, Depots, and
    Ammo plants. The project team will coordinate with local community
    colleges/trade schools, the government operated/contractor or
    government owned industry members, and virtual training sites to
    distribute the courses.
    ---------------------------------------------------------------------------
        \1\ https://www.army.mil/standto/archive/2022/03/25/.
        \2\ https://www.army.mil/e2/downloads/rv7/
    2019_army_modernization_strategy_final.pdf.
    ---------------------------------------------------------------------------
        Aligned with the Digital Modernization Accelerator Program mission,
    MxD has hosted multiple workshops to share lessons learned, scope
    relevant projects, and convene the Institute's ecosystem to assist the
    Services to implement their OIB Modernization Strategies. Since the
    program's inception, MxD has hosted the Army munitions (Iowa) and small
    arms ammunition (Lake City) stakeholders as well as the Navy's
    Shipyards, including all four shipyards (Norfolk, VA, Puget Sound, WA,
    Pearl Harbor, HI, and Portsmouth, ME) and their command from Naval Sea
    Systems Command, Shipyard Infrastructure Optimization Program (SIOP).
        This project is focused on bridging the funding gap the Army is
    experiencing due to their OIB modernization Program Objective
    Memorandum (POM) funding being unavailable until FY 2026. MxD will
    leverage this funding to ensure the consistent and continuous
    modernization progression of AMC OIB facilities.
     the value of digital modernization at the army material command (amc)
        The U.S. Organic Industrial Base (OIB) provides critical material
    and sustainment support to warfighters around the world by
    manufacturing, repairing, maintaining, and deposing of essential
    equipment and munitions, which ensures the readiness and superiority of
    U.S. military. While the Military Services have announced and embarked
    on long-term OIB modernization efforts, in recent months, there has
    been growing observation and concern that the efforts are not advancing
    quickly enough to ensure operational readiness now and in the future. A
    2022 Government Accountability Office (GAO) report \3\ found that,
    since FY 2016, the condition of depot infrastructure (including
    facilities and equipment) has not improved and ranks fair-to-poor.
    ---------------------------------------------------------------------------
        \3\ https://www.gao.gov/assets/gao-22-105009.pdf.
    ---------------------------------------------------------------------------
        While the Army's MIP recognizes the critical need for resources for
    Army facilities, further resources would help build and accelerate the
    necessary capacity to maintain readiness by sustaining the Army's
    enduring and future systems and aim to overcome the backlog and
    significantly improve current facility conditions. OIB modernization
    efforts are also typically hindered by a skilled labor shortage, a
    consequence of long-term disinvestment in US manufacturing. Leaders of
    the DOD's OIB, including the AMC OIB Modernization Task Force, have
    developed essential and bold plans to digitally modernize the OIB to
    support and sustain the future U.S. military force. The Department
    calls for collaboration with industry, academia and subject matter
    experts across needed technologies and implementations to ensure a
    successful, integrated approach to the next generation of U.S.
    capabilities.
        MxD has initiated the OIB Digital Modernization Accelerator Program
    with recent site visits and assessments at multiple OIB facilities,
    including Picatinny Arsenal in New Jersey, Watervliet Arsenal in New
    York, Iowa Army Ammunition Plant in Iowa, and the Marine Corps
    Maintenance Depot in Georgia. Rock Island Arsenal is an example of the
    impact these types of assessment and pilot projects can generate which
    resulted in the coordination and down selection of pilot projects. For
    example, the program has delivered a machine health and status
    dashboard(s) to relay real-time machine and production status. Another
    project conducted feasibility studies of paint assembly systems that
    have a massive impact on human health and safety. MxD is also planning
    to expand efforts to the Anniston Army Depot in Alabama with support
    from the Army Materiel Command.
        All the projects provide solutions through incorporating digital
    TTPs to provide the foundational requirements to incorporate advanced
    manufacturing capabilities such as additive, robotics, and artificial
    intelligence (AI). The outcomes of these projects constructed to be
    easily transferable to other sites included in AMC. Through this
    effort, MxD is also partnering with fellow DOD manufacturing
    institutes, ARM and LIFT, to create workforce development training and
    hiring guides for critical roles at Army Ammunition Plants.
                                   conclusion
        Given MxD's role in supporting OIB facilities across the country,
    MxD respectfully requests the allocation of an additional $19,500,000
    of funding to scale OIB Modernization efforts in partnership with the
    Army Material Command (AMC) OIB Modernization Task Force.
        This effort will inform the AMC's knowledge and implementation,
    reduce redundancy, and expedite modernization at the OIB facilities.
    While the results of this project will benefit AMC sites across the
    Nation, MxD will prioritize initial modernization efforts for Rock
    Island Arsenal in Illinois, and Anniston Army Depot and Redstone
    Arsenal in Alabama.
        More specifically, for FY 2025, the Digital Modernization
    Accelerator Program will target current efforts with AMC's Tank-
    automotive and Armaments Command (TACOM). This work will build upon,
    scale, and transition based on the direct engagement with enterprise-
    level Services, focusing on the most immediate or current needs such as
    the conflict in Ukraine or Israel and preparing for the long-term
    threat that could occur in the Pacific.
        On behalf of MxD, we would like to thank you for the opportunity to
    provide this testimony. Please do not hesitate to contact us should you
    have any questions. MxD truly appreciates the subcommittee's long
    history of support of the USA Manufacturing Institutes and our work in
    manufacturing innovation and modernization.

        [This statement was submitted by Berardino Baratta, CEO, and Erin
    O'Donnell, Director, Government Engagement, MxD.]
                                     ______

              Prepared Statement of the Neurofibromatosis Network
        Thank you for the opportunity to submit testimony to the
    subcommittee on the importance of continued funding for the Department
    of Defense's Peer-reviewed Neurofibromatosis (NF) Research Program
    (NFRP). NF is a terrible genetic disorder closely linked to many common
    diseases widespread among the American population. The highly
    successful Neurofibromatosis Research Program has shown tangible
    results and direct military application with broad implications for the
    general population.
        On behalf of the Neurofibromatosis (NF) Network, a national
    organization of NF advocacy groups, I speak on behalf of the 120,000
    Americans who suffer from NF as well as the millions of Americans who
    suffer from diseases and conditions linked to NF such as cancer, brain
    tumors, heart disease, memory loss, bone abnormalities, deafness,
    blindness, and psychosocial disabilities, such as autism and learning
    disabilities. Thanks in large part to this subcommittee's strong
    support, scientists have made enormous progress since the discovery of
    the NF1 gene in 1990 resulting in clinical trials now being undertaken
    by the NFRP.
        In Fiscal Year 2025, we are requesting $25 million for the Peer-
    reviewed Neurofibromatosis Research Program (NFRP) within the Defense
    Health Program, the same as the Fiscal Year 2024 enacted level. The
    NFRP is now conducting clinical trials at nation-wide clinical trials
    centers created by NFRP funding. These clinical trials involve drugs
    that have already succeeded in eliminating tumors in humans and
    rescuing learning deficits in mice. In addition, in March 2020, the
    Food and Drug Administration approved the first ever drug, co-developed
    by NIH and AstraZeneca, with seed money from the NFRP, for the
    treatment of plexiform tumors in neurofibromatosis type 1 (NF1).
    Administrators of the NFRP have stated that the number of high-quality
    scientific applications justify a much larger program. For these
    reasons, it is imperative that we continue to invest in research if we
    are to advance toward treatments and a cure for the numerous diseases
    associated with NF.
                           what is neurofibromatosis?
        NF is an unpredictable genetic disorder of the nervous system that
    affects almost every organ system in the body. Neurofibromatosis (NF)
    refers to three different genetic medical conditions, Neurofibromatosis
    type--1, Schwannomatosis, and NF 2--related Schwannomatosis, involving
    the development of tumors that may affect the brain, spinal cord, and
    the nerves. While not all NF patients suffer from the most severe
    symptoms, all NF patients and their families live with the uncertainty
    of not knowing whether they will be seriously affected because NF is a
    highly variable and progressive disease. NF causes tumors to grow along
    nerves including in the skin, just below the skin, and in the brain and
    spinal cord. It strikes worldwide, without regard to gender, race or
    ethnicity. Approximately 50 percent of new NF cases result from a
    spontaneous mutation in an individual's genes and 50 percent are
    inherited.
        NF can cause a myriad of devastating clinical problems including
    nerve and brain tumors; disfiguring skin growths; inability to heal
    after bone fracture, which may ultimately require amputation;
    psychosocial disabilities, including autism and learning disabilities;
    unmanageable chronic pain; deafness; blindness; cardiovascular defects;
    vascular disease; and paralysis. NF gene mutations are also important
    'drivers' of cancers in the lungs, liver, brain and breast.
                        nf's connection to the military
        Neurofibromatosis (NF) has become a clinical 'model' for advancing
    medical research. The genetic information learned from NF holds the key
    to understanding a number of health issues that benefit the war
    fighter, as well as the general population, including cancer, bone
    fracture and repair, vascular disease, nerve regeneration, behavior and
    psychosocial issues, and pain.
        The Neurofibromatosis Research Program (NFRP) is providing critical
    research that directly benefits the War Fighter including:
        Bone Repair.--At least a quarter of children with NF1 have abnormal
    bone growth in any part of the skeleton. In the legs, the long bones
    are weak, prone to fracture and unable to heal properly; this can
    require amputation at a young age. Adults with NF1 can have low bone
    mineral density, placing them at risk of skeletal weakness and injury.
    The NFRP is a strong supporter of NF1 bone defects research and as a
    result this field has made significant progress in the past few years.
    Bone fractures sustained by the war fighter and how to repair them is
    of interest to the military. Research studies will identify new
    information about understanding bone biology and repair and will pave
    the way to new strategies to enhancing bone health and facilitating
    repair.
        Pain.--Severe and unmanageable pain is seen in all forms of NF,
    particularly in schwannomatosis, and significantly impacts quality of
    life. NF research has shown similarities between NF pain and phantom
    limb pain. NFRP funding has been critical in supporting this. Chronic
    pain, and how to treat it effectively, is one of the most poorly
    understood areas of medicine but has very high relevance to those in
    the military recovering from service-related injuries. NF Research in
    this area could help identify new ways to target pain effectively with
    the right drugs or therapies.
        Vascular Disease.--NF1 elevates the risk of vascular disease
    including aneurysm, stroke and vessel occlusive disease. NF1
    predisposes patients to early cardiovascular disease, which is also the
    leading cause of death among United States Veterans. NF research has
    demonstrated that when treating affected NF mouse models with an
    antioxidant medication it reduced vessel disease. Discoveries related
    to cardiovascular disease in NF1 are likely to be more broadly
    informative, including for veterans and active-duty military personnel.
        Psychosocial and Cognitive Disabilities.--NFRP research has
    revealed common threads between NF1 learning disabilities, autism and
    other related disabilities. Research being done within the NF Clinical
    Trials Consortium, NFRP created clinical centers, has led to important
    findings and expanded research in this area. This research contributes
    to our broadening understanding of how brain signaling can impact on
    behavior and psychosocial difficulties. Members of the military
    returning from service can suffer from psychological trauma and it is
    not easy to understand how this can be effectively treated. As we learn
    more from the NF population about psychosocial function, we will be
    able to shed light on this area for the benefit of the military.
        Nerve Tumors and Repair.--Nerves are the most common location for
    tumor development amongpatients with NF. Tumor growth alone, or
    treatments for the same, commonly cause nerve injury and associated
    deficits. Identifying mechanisms to improve nerve repair would benefit
    patients with NF, as well as advance the science needed to better treat
    nerve injury common in warfighters.
                        dod' contribution to nf research
        While other Federal agencies support medical research, the
    Department of Defense (DOD) fills a special role by providing peer-
    reviewed funding for innovative and rewarding medical research through
    the Congressionally Directed Medical Research Program (CDMRP). CDMRP
    research grants are awarded to researchers in every State in the
    country through a competitive two-tier review process. These well-
    executed and efficient programs, including the NFRP, demonstrate the
    government's responsible stewardship of taxpayer dollars.
        Recognizing NF's importance to both the military and to the general
    population, Congress has given the NF Research Program strong
    bipartisan support. From FY1996 through FY2024 funding for the NFRP has
    amounted to over $452 million, in addition to the original $8 million
    appropriated in FY1992. In addition, between FY1996 and FY2022, 500
    awards have been granted to researchers across the country.
        The CDMRP funds innovative, groundbreaking research which would not
    otherwise have been pursued, and has produced major advances in NF
    research, including conducting clinical trials in a nation-wide
    clinical trials infrastructure created by NFRP funding, development of
    advanced animal models, and preclinical therapeutic experimentation.
    Because of the enormous advances that have been made as a result of the
    NFRP, research in NF has truly become one of the great success stories
    in the current revolution in molecular genetics. In addition, the
    program has brought new researchers into the field of NF. However,
    despite this progress, officials administering the program have
    indicated that they could easily fund more applications if funding were
    available because of the high quality of the research applications
    received.
        In order to ensure maximum efficiency, the Department of Defense
    collaborates closely with other Federal agencies that are involved in
    NF research, such as the National Institutes of Health (NIH). Senior
    program staff from the National Institute of Neurological Disorders and
    Stroke (NINDS), for example, sit on the NF Research Program Integration
    Panel which sets the long-term vision and funding strategies for the
    program. This assures the highest scientific standard for research
    funding, efficiency and coordination while avoiding duplication or
    overlapping of research efforts.
        Thanks in large part to this subcommittee's support, scientists
    have made enormous progress since the discovery of the NF1 gene. Major
    advances in just the past few years have ushered in an exciting era of
    clinical and translational research in NF with broad implications for
    the general population. These recent advances have included:
      --In March 2020 the Food and Drug Administration approved the first
            ever drug, co-developed by NIH and AstraZeneca, with seed money
            from the NFRP, for the treatment of plexiform tumors in
            neurofibromatosis type 1 (NF1).
      --Phase II and Phase III clinical trials involving new drug therapies
            for both cancer, hearing tumors, vision tumors, bone graft and
            cognitive disorders.
      --Establishment of the Neurofibromatosis Clinical Trial Consortium
            which includes an operation center and 23 clinical sites.
            Allows for partnerships with well-established NF Centers,
            pooling expertise and resources, quicker turn arounds of
            scientific reviews and regulatory approvals, leveraged work
            with pharmaceutical companies all towards the common goal of
            new treatments and a cure for Neurofibromatosis.
      --Development of advanced mouse models showing human symptoms.
      --Determination of the biochemical, molecular function of the NF
            genes and gene products.
      --Connection of NF to numerous diseases because of NF's impact on
            many body functions.
                            fiscal year 2025 request
        The highly successful Neurofibromatosis Research Program has shown
    tangible results and direct military application with broad
    implications for the general population. The program has now advanced
    to the translational and clinical research stages, which are the most
    promising, yet the most expensive direction that NF research has taken.
    Therefore, continued funding is needed to continue to build on the
    successes of this program, and to fund this promising research thereby
    continuing the enormous return on the taxpayers' investment.
        We respectfully request that you include at least $25 million in
    the Fiscal Year 2025 Department of Defense Appropriations bill for the
    Peer-reviewed Neurofibromatosis Research Program. With this
    subcommittee's continued support, we will prevail. Thank you for your
    support.

        [This statement was submitted by Kim Bischoff, Executive Director,
    Neurofibromatosis Network.]
                                     ______

                       Prepared Statement of TB Alliance
        TB Alliance is pleased to submit this testimony to the Senate
    Committee on Appropriations, subcommittee on Defense for consideration
    in fiscal year (FY) 2025 appropriations. TB Alliance is a not-for-
    profit organization dedicated to the discovery, development, and
    delivery of better, faster acting, and affordable tuberculosis (TB)
    drugs that are available to those who need them. We submit this
    testimony and urge the subcommittee to include TB in the
    Congressionally Directed Medical Research Program's Peer Reviewed
    Medical Research Program's (CDMRP PRMRP) list of eligible diseases in
    FY 2025, as it has done in FYs 2016--2019, and FY 2023.
        As you know, the men and women in our armed forces are responsible
    for protecting our Nation from threats both domestic and abroad. A
    critical element of the Department of Defense's (DoD) mission is
    supporting infectious disease research, which it conducts at various
    facilities such as the Walter Reed Army Institute of Research and the
    Naval Medical Research Center. Since the DoD cannot programmatically
    fund every disease that could cause harm to our Nation's military
    personnel, Congress fills this gap in research through the CDMRP, which
    presents a critical opportunity for Congress to directly influence
    research funding by providing a list of approved diseases eligible for
    competitive peer reviewed grant opportunities via the PRMRP.
        TB, an airborne disease, is the leading global infectious killer
    globally with about 1.3 million deaths in 2022 according to the World
    Health Organization (WHO). The global TB pandemic, including the rapid
    spread of drug-resistant TB, poses a serious global security threat.
    Although considered a low-incidence country, even here in the U.S.,
    every State continues to report TB cases each year and the disease
    remains a significant public health issue. In 2022, the Centers for
    Disease Control and Prevention (CDC) reported over 8,000 cases of TB in
    the U.S. The cost to treat and care for a patient with TB in the U.S.
    averages $20,000 for drug-susceptible TB, $182,000 for multidrug-
    resistant TB (MDR-TB), and $568,000 for extensively drug-resistant TB
    (XDR-TB) according to most recent estimates. Additionally, the CDC
    believes there are up to 13 million individuals in the U.S. with latent
    TB infections-a future reservoir of active TB cases.
        TB is of particular concern for the DoD because of its potential
    impact on our armed forces. Our global military footprint means that
    American military men and women are posted in countries and regions
    that experience high rates of both active TB disease and TB infection.
    For instance, in Europe, where over 100,000 U.S. troops and dependents
    are stationed, there were nearly 164,000 cases of TB and 73,000 cases
    of MDR-TB in 2021. In the Western Pacific region, nearly 82,000 troops
    live amidst over 1.8 million cases of TB and 70,000 cases of MDR-TB
    according to the most recent WHO estimates. Ukraine continues to be a
    high-burden MDR-TB country. With the war in Ukraine ongoing, millions
    of Ukrainians are seeking refuge in NATO ally countries, some of whom
    are on TB treatment or have undiagnosed TB, putting a significant
    strain on in-country public health resources while exposing our
    military to potential MDR-TB outbreaks. These outbreaks globally could
    cause drug shortages, severe economic consequences, and possibly
    extensive fatalities as well as global destabilization. Funding
    research and development now can make this scenario less likely in the
    future.
        Additionally, through programs like the Pacific Pathways, thousands
    of U.S. military members rotate through countries around the Pacific
    Rim like the Philippines and Thailand, where a combined 844,000 cases
    of TB occurred in 2021, including thousands of cases of MDR-TB. The
    WHO, however, estimates that global TB numbers are much higher than
    currently reported due to disruptions in diagnosis stemming from the
    COVID-19 pandemic and resource diversion. As an example, the
    Philippines has one of the highest incidents of TB in the world, with
    737,000 cases report in 2022 and accounts for 7% of all TB cases
    globally. The U.S. and the Philippines recently launched their largest
    joint exercise in years, with around 16,000 troops participating in the
    ``shoulder-to-shoulder'' trainings. As we strengthen our alliance with
    the Philippines and other Pacific countries, our soldiers will come in
    increasing contact with countries that have high burden TB rates in the
    region.
        For these reasons, more research into TB and related treatments,
    vaccines, and diagnostics is imperative if we want to avoid tragic
    scenarios of MDR--and XDR-TB outbreaks in the future. Having adequate
    treatments on hand in case our warfighters fall ill with TB is critical
    to our military's mission readiness and our National security. Today,
    we are at a unique and unprecedented point in TB research due to
    positive advancements in key areas of development. Recently, the FDA
    approved a new drug regimen to treat XDR-TB and complicated MDR-TB-
    demonstrating that better diagnostics, a fully effective vaccine, and
    shorter, less toxic treatment regimens are the only way we will
    successfully eliminate TB. The DoD CDMRP funding has been integral in
    these efforts.
        We urge you to build off the progress already made and continue to
    include TB in the list of eligible diseases for FY 2025.

        [This statement was submitted by Pietro Turilli, Senior Vice
    President, External Affairs, TB Alliance.]

           LIST OF WITNESSES, COMMUNICATIONS, AND PREPARED STATEMENTS

                                  ----------
                                                                       Page

    Activate Global Inc., Prepared Statement of......................   373
    Allvin, General David W., Chief of Staff, Department of the Air
      Force, Department of Defense...................................     7
        Prepared Statement of........................................     9
    Anderson, Lieutenant General Leonard F., IV, Commander, Marine
      Corps Reserve, Department of Defense...........................   329
        Prepared Statement of........................................   330
    American Society of Tropical Medicine and Hygiene, Prepared
      Statement of the...............................................   374
    American Type Culture Collection, Prepared Statement of the......   376
    American Urological Association, Prepared Statement of the.......   377
    Austin, Hon. Lloyd J., III, Secretary, Office of the Secretary of
      Defense, Department of Defense.................................   141
        Prepared Statement of........................................   145
        Questions Submitted to.......................................   189
        Summary Statement of.........................................   144

    Baldwin, Senator Tammy, U.S. Senator From Wisconsin, Questions
      Submitted by

    Boozman, Senator John, U.S. Senator From Arkansas, Questions
      Submitted by

    Brown, General Charles Q., Jr., Chairman of the Joint Chiefs of
      Staff, Department of Defense...................................   155
        Prepared Statement of........................................   156
        Questions Submitted to.......................................   203
    Bush, Hon. Douglas R., Assistant Secretary of the Army for
      Acquisition, Logistics and Technology, United States Army,
      Department of Defense..........................................   216
        Prepared Statement of........................................   217
        Questions Submitted to.......................................   261

    Capito, Senator Shelley Moore, U.S. Senator From West Virginia,
      Questions Submitted by

    Coalition for National Security Research, Prepared Statement of
      the............................................................   378
    Collins, Senator Susan M., U.S. Senator From Maine:
        Statements of

        Questions Submitted by

    Coons, Senator Christopher A., U.S. Senator From Delaware,
      Questions Submitted by

    Daniels, Lieutenant General Jody J., Chief, Army Reserve,
      Department of Defense..........................................   316
        Prepared Statement of........................................   317
    Del Toro, Hon. Carlos, Secretary, Department of the Navy,
      Department of Defense..........................................    51
        Prepared Statement of........................................    56
        Questions Submitted to.......................................   118
        Summary Statement of.........................................    55
    Department of Defense STARBASE, Prepared Statement of............   381
    Durbin, Senator Richard J., U.S. Senator From Illinois, Questions
      Submitted by

    Foundation for American Innovation, Prepared Statement of the....   382
    Friends of Ukraine Network, Prepared Statement of the............   384
    Franchetti, Admiral Lisa, Chief of Naval Operations, Department
      of the Navy, Department of Defense.............................    76
        Prepared Statement of........................................    77
        Questions Submitted to.......................................   129

    George, General Randy A., Chief of Staff, Department of the Army,
      Department of Defense..........................................   273
        Prepared Statement of........................................   274
        Questions Submitted to.......................................   306
    Graham, Senator Lindsey, U.S. Senator From South Carolina,
      Questions Submitted by

    Guertin, Nickolas H., Assistant Secretary of the Navy for
      Research, Development and Acquisition, United States Navy,
      Department of Defense..........................................   224
        Prepared Statement of........................................   225
        Questions Submitted to.......................................   263

    HALO Trust and Mines Advisory Group U.S., Prepared Statement of
      The............................................................   386
    Healy, Lieutenant General John P., Chief, Air Force Reserve,
      Department of Defense..........................................   336
        Prepared Statement of........................................   337
    Hoeven, Senator John, U.S. Senator From North Dakota, Questions
      Submitted by...................................................   370
    Hokanson, General Daniel R., Chief, National Guard Bureau,
      Department of Defense..........................................   311
        Prepared Statement of........................................   313
        Questions Submitted to.......................................   370
        Summary Statement of.........................................   312
    Humacyte, Inc., Prepared Statement of............................   388
    Human Factors and Ergonomics Society, Prepared Statement of the..   389
    Hunter, Andrew P., Assistant Secretary of the Air Force for
      Acquisition, Technology and Logistics, United States Air Force,
      Department of Defense..........................................   232
        Prepared Statement of........................................   233
        Questions Submitted to.......................................   265

    Kendall, Hon. Frank, Secretary, Department of the Air Force,
      Department of Defense..........................................     1
        Prepared Statement of........................................     9
        Questions Submitted to.......................................    37
        Summary Statement of.........................................     4

    LaPlante, Hon. Dr. William A., Under Secretary of Defense for
      Acquisition and Sustainment, Department of Defense.............   207
        Prepared Statement of........................................   210
        Questions Submitted to.......................................   257
        Summary Statement of.........................................   209

    Manufacturing Times Digital, Prepared Statement of...............   391
    McCord, Hon. Michael J., Under Secretary of Defense
      (Comptroller)/Chief Financial Officer, Department of Defense...   141
    Moran, Senator Jerry, U.S. Senator From Kansas, Questions
      Submitted by

    Murkowski, Senator Lisa, U.S. Senator From Alaska, Questions
      Submitted by

    Murphy, Senator Christopher, U.S. Senator From Connecticut,
      Questions Submitted by

    Murray, Senator Patty, U.S. Senator From Washington, Questions
      Submitted by

    Mustin, Vice Admiral John B., Chief, Navy Reserve, Department of
      Defense........................................................   323
        Prepared Statement of........................................   324

    Neurofibromatosis Network, Prepared Statement of the.............   393

    Saltzman, General B. Chance, Chief of Space Operations, United
      States Air Force, Department of Defense........................     6
        Prepared Statement of........................................     9
    Schatz, Senator Brian, U.S. Senator From Hawaii, Questions
      Submitted by

    Shaheen, Senator Jeanne, U.S. Senator From New Hampshire,
      Questions Submitted by

    Smith, General Eric M., Commandant, United States Marine Corps,
      Department of Defense..........................................    86
        Prepared Statement of........................................    88
        Questions Submitted to.......................................   134

    TB Alliance, Prepared Statement of...............................   395
    Tester, Senator Jon, U.S. Senator From Montana:
        Opening Statement of

        Questions Submitted by

    Wormuth, Hon. Christine, Secretary, Department of the Army,
      Department of Defense..........................................   269
        Prepared Statement of........................................   274
        Questions Submitted to.......................................   300
        Summary Statement of.........................................   271

                                 SUBJECT INDEX

                                  ----------

                             DEPARTMENT OF DEFENSE

                          Defense Acquisition Programs

                                                                       Page

    I. Introduction and Background...................................   210
    II. The Defense Acquisition System...............................   211
    III. Major Acquisition Programs..................................   212
    IV. Integration..................................................   213
    V. Production at Scale...........................................   215
    VI. Conclusion...................................................   216
    Additional Committee Questions...................................   257
    Approaches and Organizations for Great Power Competition.........   234
    Current Acquisition Landscape....................................   233
    Modernizing:
        the Force....................................................   218
        Our Business Practices.......................................   222
                                   __________

                          Department of the Air Force

                           United States Space Force

                            Office of the Secretary

    Additional Committee Questions...................................    36
    Building a Resilient Joint Force and Defense Ecosystem...........    11
    Complying with FRA...............................................    10
    Deterring Aggression and Prevailing in Conflict..................    11
    Meeting National Defense Strategy Priorities.....................    11
    Responding to Increasing Threats.................................     9

    United States Air Force..........................................    11
    Air Force's Role in:
        Defending the Nation.........................................    12
        Taking Care of People........................................    13
        Succeeding Through Teamwork..................................    14

    United States Space Force........................................    15
    Space Force's Role in:
        Defending the Nation.........................................    15
        Taking Care of People........................................    16
        Succeeding Through Teamwork..................................    17
                                   __________

                             Department of the Army

                            Office of the Secretary

    Additional Committee Questions...................................   300
    Delivering Ready Combat Formations...............................   276
    Maintaining the Strategic Path...................................   278
    Need for Continuous Transformation, The..........................   274
    Readiness of Soldiers and Families: Quality of Life Investments..   277
    Transforming our:
        Capabilities.................................................   274
        Force Structure..............................................   275
        Recruiting Enterprise........................................   276
                                   __________

                             Department of the Navy

                            Office of the Secretary

    Additional Committee Questions...................................   118
    America's Identity as a Maritime Nation..........................    77
    Fiscal Year 2025 President's Budget, The.........................    60
    Foundations: Build Trust, Align Resources, Be Ready..............    84
    Geopolitical Landscape, The......................................    77
    Navy's FY25 Strategy-Driven Budget Request.......................    78
    Progress Update on the DON's Three Enduring Priorities...........    58
    Warfighters:
        Strengthening the Navy Team..................................    82
        Delivering Decisive Combat Power.............................    79
    Where We Are Going...............................................    90
    Who We Are and How We Fight......................................    88
                                   __________

                          National Guard and Reserves

    A Promise:
        for the Future...............................................   316
        of Readiness.................................................   313
        to our Partners..............................................   315
        to our People................................................   315
    A Total Force....................................................   332
    Additional Committee Questions...................................   370
    Air Force Reserve Fiscal Year 2025 Posture Statement.............   337
    Air Force Reserve's Role in:
        Defending the Nation.........................................   338
        Taking Care of People........................................   342
    Air Force's Role in Succeeding Through Teamwork..................   347
    Command and Control (C2).........................................   340
    Continuous Transformation........................................   321
    Deliver and Sustain Combat Ready Power...........................   319
    Equipment........................................................   333
    Facilities.......................................................   334
    Fiscal Stewardship...............................................   332
    Foundation: Build Trust, Align Resources, Be Ready...............   328
    Innovation and Experimentation...................................   332
    Modernization....................................................   331
    Quality of Life..................................................   335
    Ready Now! Shaping Tomorrow . . .................................   317
    Sexual Assault Prevention and Response...........................   335
    Strengthen the Army Profession...................................   322
    Talent Management................................................   331
    United States:
        Air Force Reserve............................................   337
        Army Reserve, The............................................   317
    Warfighters:
        Strengthen the Navy Team.....................................   326
        Deliver Decisive Combat Power................................   325
    Warfighting......................................................   317
                                   __________

                       Office of the Secretary of Defense

    Additional Committee Questions...................................   189
    Defending the Nation.............................................   147
    Modernization and New Concepts...................................   159
    Strategic Environment............................................   157
    Succeeding Through Teamwork......................................   152
    Taking Care of Our People........................................   151
    Trust............................................................   162
    Warfighting......................................................   158

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