[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: [email protected].

    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.
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    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

                                   [all]