Defense Appropriations Bill for Fiscal Year 2015; H.R. 4870

Legislative Analysis Defense Appropriations Bill for Fiscal Year 2015; H.R. 4870 As of June 20, 2014 Passed in Full Committee- June 10, 2014 Passed on House Floor- June 20, 2014 1

Overview On June 10, 2014, the House Appropriations Committee approved the Fiscal Year 2015 Defense Appropriations Act and the bill was passed by the House on June 20, 2014. The bill includes numerous provisions that continue Congressional support of the Army and Air National Guard as an operational force. The bill funds the Army and Air National Guard Personnel accounts below the requested levels and the Operations and Maintenance Accounts above the request. Army National Guard end strength is reduced by 4,000 to 350,200 and Air National Guard end strength is reduced by 300 to 105,000. There is no OCO specifically for the ARNG or ANG, however in Title VIII of the bill, $1B is to be transferred to the Operations and Maintenance accounts for the Service, the National Guard and the Reserves, to be used only for improving military readiness. The funding is to be divided proportionately amongst the Services and the National Guard, and the reserve components. None of that money can be used for recruiting, marketing or advertising. The bill includes a 1.8% pay increase for all members of the military. The bill includes $2 billion for the National Guard and Reserve Equipment Account. It also includes $169 million for the National Guard Counter-drug program. For the Army National Guard, the bill increases UH-60 Blackhawk procurement by $103 million and provides an additional $100 million for HMMWVs. For the Air National Guard, the bill increases AESA radar funding by $115 million and adds $35.8 million to the C-130 Avionics Modernization Program. The base budget for Army and Air National Guard personnel, operations and maintenance is $23,265,445 billion. To view the full FY15 Defense bill: http://appropriations.house.gov/uploadedfiles/bills- 113hr-fc-ap-fy2015-ap00-defense.pdf Report Language: http://appropriations.house.gov/uploadedfiles/hrpt-113-hr-fy2015- defense.pdf Amendments: http://appropriations.house.gov/uploadedfiles/06.20.14_fy_2015_defense_bill_- _floor_adopted_amendments.pdf 2

Army National Guard Funding Overview Army National Guard FY15 Base Funding Personnel The House Defense Appropriations bill contains $7.64 billion for ARNG Personnel. This is a DECREASE of over $38 million below the FY15 Budget. All Dollars Listed in Thousands Army National Guard Account FY14 Appropriation FY15 Budget House Delta From Personnel $7,776,498 $7,682,892 $ 7,644,632 -$38,260 Total Adjustments to the President s FY15 for this account (detailed below, in thousands): Pay Group A Training (15 days & drills 24/48): -$45,200 Inactive Duty Training- Projected Under execution Excess to Requirement Pay Group F Training (Recruits): -$19,700 Individual Clothing and Uniform Allowance Excess to Requirement Undistributed Adjustment +$26,640 Army National Guard FY15 Base Funding Operation and Maintenance (O&M) The House Appropriations bill contains $6.1 billion for ARNG O&M. This is an INCREASE of over $85 million above the FY14 Budget. All Dollars Listed in Thousands Army National Guard Account FY14 Appropriation FY15 Budget HAC-D Mark Delta From O&M $6,857,530 $6,030,773 $6,116,307 +85,534 Total Adjustments to the President s FY15 for this account (detailed below, in thousands): Land Forces Systems Readiness: -$1,174 Base Operations Support: -$17,164 3

Facilities Sustainment, Restoration and Modernization: +$49,021 Management and Operational Headquarters -$25,897 Manpower Management -$5,287 Recruiting and Advertising -$3,262 Civilian Personnel Compensation Unjustified Program Growth -$3,703 Fully Fund Two CTC Rotations +$23,000 Restore Readiness +$70,000 Equipment: Equipment funding for the Army includes funding for MQ 1, Blackhawks, Joint Light Tactical Vehicles, Armored Multi-Purpose Vehicles, and the Joint Tactical Radio System. 4

Air National Guard Funding Overview Air National Guard FY15 Base Funding Personnel The House Appropriations bill contains $3.11 billion for ANG Personnel. This is a DECREASE of over $45 million from the FY15 Budget. All Dollars Listed in Thousands Air National Guard Account FY14 Appropriation FY15 Budget HAC-D Mark Delta From Personnel $3,114,421 $3,156,457 $3,110,587 -$45,870 Total Adjustments to the President s FY15 for this account (detailed below, in thousands): Pay Group F Training (Recruits): -$6,500 Projected Underexecution Administration and Support: -$21,400 Undistributed Adjustment: -$17,970 Air National Guard FY15 Base Funding Operation and Maintenance (O&M) The House Defense Appropriations bill contains $6.6 billion for ANG O&M. This is an INCREASE of $1 million above the FY14 Budget. Air National Guard Account FY14 Appropriation All Dollars Listed in Thousands FY15 Budget HAC-D Mark Delta From O&M $6,392,304 $6,392,859 $6,393,919 +$10,600 Total Adjustments to the President s FY15 for this account (detailed below, in thousands): Aircraft Operations: -$1,500 Mission Support Operations -$11,200 Facilities Sustainment, Restoration and Modernization: +$13,760 Equipment: Equipment funding for the Air Force includes MQ 1, MQ 9 modifications, C-130 procurement and AMP and KC-46A procurement and development. 5

National Guard End Strength The FY15 budget request includes a decrease of 4,300 in total end strength for the National Guard as compared to the FY14 authorized levels. The House approved the President s request. Army National Guard 350, 200 (-4,000) Air National Guard 105,000 (-300) National Guard and Reserve Equipment Account The Committee recommends $2,000,000,000 for the National Guard and Reserve Equipment Account in the Overseas Contingency Operations funds, to meet urgent equipment needs. This funding will allow the Guard and reserve components to procure high priority equipment that may be used for both their combat missions and their missions in support of state governors. This funding will allow the National Guard and reserve components to procure items such as emergency management training simulation; inflight propeller balancing systems; SINCGAR ASIP radio enhancements; interoperable wideband network communications; global satellite communications on-the-move, and all necessary related hardware; C 130 propulsion system engine and propeller upgrades; electronic flight bags with tablet enabled interface; active electronically scanned array radars, wireless mobile mesh network systems; security and support mission equipment communications packages for UH 60 civil support communications; reduced size external crashworthy fuel systems; acoustic hailing devices; high mobility engineer excavators; mobile ad hoc network radios; and small arms simulation training systems. Other Provisions: Title VIII: $1B is to be transferred to the Operations and Maintenance accounts for the Service, the National Guard and the Reserves, to be used only for improving military readiness. The funding is to be divided proportionately amongst the Services and the National Guard, and the reserve components. None of that money can be used for recruiting, marketing or advertising. 6

Section 8040: Prohibition of Funds for Technician Reduction No funds in this Act may be used to reduced authorized positions for ARNG and ANG dual status technicians unless such reductions are a direct result of a reduction in military force structure. Section 8042: Intelligence Reimbursement Provides for reimbursement to the National Guard and reserve when members of the National Guard and reserve provide intelligence or counterintelligence support to the combatant commands, defense agencies and joint intelligence activities. Section 8061: National Ballistic Missile Defense Provides for the use of the National Guard serving under Title 32 Section 502(f) to perform duties in support of ground based elements of the National Ballistic Missile Defense System Section 8068: Additional Fisher Houses Adds additional funds for the construction of new Fisher Houses to meet the needs of military families with wounded members. Section 8079: Notification of Mobilization for Reserve Component Members of the Armed Requires Reserve Component members of the Armed Forces to be notified in writing of their expected period of mobilization at the time ordered to active duty. Section 8122: C-130 Avionics Modernization Program Prohibits use of funds in this Act for cancellation of the C-130 Avionics Modernization Program. Section 8136: AH-64 Apache Helicopters Prohibits the transfer of AH-64 Apache attack helicopters from the Army National Guard to the active Army. Section 8137: Transfer of Funding for Military Readiness Allows the transfer of up to $1B to the military services, including the National Guard and Reserve for the purposes of improving military readiness. General Provisions: Language is included that requires the Chiefs of the National Guard and Reserve components to submit the modernization priority assessment for their respective components to the congressional defense committees. 7

Passed Floor Amendments: Increase of $5M ARNG O and M to support ARNG Southwest Border Mission Additional $21M for National Guard Youth Challenge Additional $5M for STARBASE Prohibition of funding to divest, retire, transfer or place A-10 aircraft Prohibition of funding to plan for or carry out furlough of dual status military technicians Prohibits funding for an additional BRAC round Report Language: National Guard and Reserve Component Proportionate Funding The National Guard and reserve forces regularly receive less than a proportionate share of funding to resource their dual-use equipment needs. However, the role of the reserve components in providing fully equipped, trained, and ready forces in the Services force generation models is essential. The Committee recommends that the Secretaries of the Army and the Air Force re-examine their funding and fielding plans for all National Guard equipment procurement and rebalance those plans to provide the Army and Air National Guard with the same new equipment when their active component counterparts field new equipment. Operational Reserve, Additional Funding and CTC Rotation Funding The Committee has previously expressed concern regarding the Army s support for maintaining an operational reserve. After reviewing the FY 2015 budget request, the Committee remains concerned that the Army Reserve and the Army National Guard readiness accounts are significantly underfunded. The Committee believes that this will have an immediate and lasting impact on the Army National Guard and the Army Reserve s readiness that will be difficult to restore in future fiscal years. Significant taxpayer investment has been made to enable the Guard and reserve to become an 8

integral part of the operational force. The Committee supports the enduring vision of an operational reserve and encourages all Services to continue resourcing and utilizing the Guard and reserve components as key members of the operational force. In addition to the $1B provided for increased military readiness, another $135 M is provided directly to the Army Reserve and Army National Guard to be used specifically to further improve readiness of the operational reserve. The recommendation also includes $68 million for the Army National Guard to fully fund two Combat Training Center rotations in FY 2015 as scheduled. Army Aviation Restructure Initiative The Army s fiscal year 2015 budget request proposes a significant restructuring of Army aviation assets. Part of this proposal is to transfer all Apache helicopters from Army National Guard units to the active Army and to shift Blackhawk helicopters from the active Army to the Army National Guard. Another component of the proposal is to retire the Kiowa Warrior helicopter, including the TH 67 helicopter, currently being used as the training platform for Army aviation. The Committee understands that the Army made this proposal primarily for affordability reasons. The Committee approves the proposal, with the exception of the transfer of Apache aircraft from the Army National Guard, as discussed in title VIII of this Act. With respect to the retirement of TH 67 aircraft, the Committee is extremely concerned about the impact on the rotary wing industrial base of placing such a large amount of excess airframes on the market. Therefore, the committee directs the Secretary of Defense to submit a report to the congressional defense committees not later than 120 days after the enactment of this Act on the aircraft being retired as part of the Army proposal. This report should include the number of airframes being divested, the number of airframes being transferred to other government agencies, the number of airframes being offered for sale to other nations, the cost of divesting these aircraft, and the impact the divestiture of these airframes will have on the domestic rotary wing industrial base. Further, the Secretary of the Army is prohibited from divesting any aircraft until the report is submitted by the Secretary of Defense. Drug Interdiction and Counter-Drug Activities The Committee understands that the funding included in the DoD Central Transfer Account is divided into three major categories of funding: counter-narcotics support, the drug demand reduction program, and the National Guard counter-drug program. The Committee recommends dividing the funding into three separate sub-activity groups to provide greater transparency and oversight of the program and its budget execution. The Committee directs the Secretary of Defense to request funding for each separate sub-activity group under the CTA in FY 2016 and futures budget years. 9

National Guard Counter-Drug State Plans The Committee is disappointed that, for the third year in a row, the budget request underfunds the National Guard counter-drug program. The Committee recognizes the importance of the mission of the National Guard counter-drug program as a support organization to combatant commands and federal, state, and local law enforcement agencies. To help address the lack of funding of this important program, the Committee recommends an additional $80,000,000 for fiscal year 2015. Reprogramming Guidance for the Defense Health Program The bill rejects the President s proposal to increase Tricare fees, adds an additional $125 M in unrequested funds for Traumatic Brain Injury and psychological health research and development, and an additional $39M above the President s request for suicide prevention outreach programs, including Yellow Ribbon. Youth Challenge The bill funds $170 for the program, $50M more than the President s Budget request. (Includes floor amendment funding) Military Mental Health Pilot Program The Committee is pleased that the Secretary of Defense created a pilot program to improve efforts to treat servicemembers suffering from mental health disorders in the National Guard and reserve components through community partnerships. The Committee encourages the Secretary of Defense to expand this program to include additional communality partners through a competitive and merit-based award process. M1 Abrams Tank Production The Committee is aware of the uncertainty facing the M1Abrams tank program. Production of M1A2 SEP tanks for the Army is scheduled to be completed by December 2014. Beyond that date, the Army and the contractor will rely to a great degree on foreign military sales to help sustain operation of the tank assembly facility until such time as work on Engineering Change Proposal One begins. The Committee also understands that the results of the Army force structure review will be released in the summer of the Army force structure review will be released in the summer of 2013 and may well have fewer requirements for heavy Army battalions and heavy brigade combat teams. A significant number of M1A2 SEP tanks may be reassigned to Army National Guard Units that are currently equipped with M1A1s. The request includes no funds for 10

the production of M1A2 tanks; however the Committee will continue to monitor Army force structure changes and the resulting impact on the required number of M1A2 tanks. National Guard HMMWVs The committee recognizes that the Army National Guard has consistently included new model HMMWVs among its top funding priorities. This funding will enable new model HMMWVs to be introduced quickly and efficiently into the fleet. The HMMWV will remain the backbone of the Army National Guard's tactical wheeled vehicle fleet. Recent natural disasters such as Hurricane Sandy highlight the need for reliable and capable utility vehicles to enable the Guard to mobilize rapidly to respond immediately to state and national needs. MQ 1/9 Remote Split Operations As a result of Air Force force structure actions, six Air National Guard locations will transition to MQ 1/9 remote split operations by fiscal year 2020. To ensure that these locations are properly equipped for a timely and orderly transition to this new mission, the Committee recommendation includes an additional $50,000,000 for the procurement of equipment associated with this mission. The Committee directs the Secretary of the Air Force to submit an execution plan for these additional funds not later than 90 days after the enactment of this Act. High Mobility Engineer Excavator The Committee recognizes the versatility and broad application that the High Mobility Engineer Excavator (HMEE) provides. It is a versatile engineer vehicle for expeditionary forces and for homeland support missions. The Committee urges the Service Secretaries to thoroughly review requirements for this vehicle for tactical operations as well as for National Guard dual use applications. High Mobility Multipurpose Wheeled Vehicle Modernization The Committee recognizes that the National Guard has consistently included modernized High Mobility Multipurpose Wheeled Vehicles (HMMWV) among its top funding priorities. The Committee includes $100,000,000 above the request to modernize the aging National Guard HMMWV fleet to satisfy this requirement. In conducting fleet modernization, the Committee urges the Secretary of Defense to integrate advanced safety systems, including the application of emerging commercial technologies such as electronic control units and airbag technology, to improve the safety of these vehicles with respect to underbody blast, crash, or rollover events. 11

Combat Rescue Helicopter The Committee fully supports the Air Force s decision to proceed with an acquisition program for a new Combat Rescue Helicopter (CRH) despite budget constraints. The CRH will replace the Air Force s rapidly aging fleet of HH 60 helicopters for the combat search and rescue mission. While the fiscal year 2015 request includes no additional funds for CRH, the Air Force has indicated to the Committee that the $333,558,000 provided in the Consolidated Appropriations Act for fiscal year 2014 is sufficient to fund the program through fiscal year 2015 given the adjustments the Air Force has made to extend the program schedule. The Committee is aware that the Air Force will need to rectify a $436,000,000 shortfall in the current future years defense plan to fully fund CRH development, but believes that this cost must be weighed against the considerable costs that likely would be incurred to extend the life of the HH 60 fleet should CRH be terminated. The Committee s recommendation includes $100,000,000 for CRH to partially address this shortfall and designates these funds as a congressional special interest item. The Committee directs the Secretary of the Air Force to keep the Committee informed of the progress of the CRH program, including rates of obligation and expenditure. Next Generation JSTARS The Committee fully funds the Air Force request for $73,088,000 to develop a next generation platform for the moving target indicator and battle management command and control (BMC2) missions currently performed by the E 8C JSTARS fleet. The Committee notes that while the program justification submitted with the fiscal year 2015 request appears to assume that the BMC2 system, sensor systems, communications systems, and air vehicle will be separately competed with the government as the lead system integrator, the Air Force presently is considering alternative acquisition strategies for the new system. Due to the reduction in capability that will result from the retirement of five operational JSTARS aircraft in fiscal year 2015, the Committee encourages the Secretary of the Air Force to adopt an acquisition strategy for a business jet-based integrated solution with mature technologies that is consistent with the completed analysis of alternatives, will minimize development cost and schedule, field new aircraft ahead of first planned delivery date in fiscal year 2019, and provide an open system architecture to allow for competitively procured future upgrades. The Committee directs the Secretary of the Air Force to brief the congressional defense committees on its selected approach not later than 30 days following the approval of the acquisition strategy for the Next Generation JSTARS. JSTARS Test Aircraft The Committee is concerned by the Air Force s proposal in the budget request to place the Joint Surveillance Target Attack Radar System (JSTARS) T 3 test aircraft in preservation storage. The Committee is concerned by the impact that this proposal will 12

have on current integration and test efforts, especially those required by the National Guard. The Committee therefore recommends an additional $10,000,000 to continue normal operations of the JSTARS test aircraft. Embedded Mental Health Care Providers The Committee understands the tremendous toll exacted on all servicemembers and their families, including those in the special operations and National Guard and reserve communities, after more than a decade of war. The Committee has always made the care of forces and their families its highest priority. The Committee appreciates the focus that the Commander, Special Operations Command, has put on the psychological health and well-being of special operations forces and their families and recognizes the importance of providing support to this vulnerable population. Further, the Committee recognizes the success of the embedded behavioral health program and fully supports its expansion to the special operations community. However, the Committee believes that the mental health needs of all servicemembers, including special operators, are most appropriately addressed within the Defense Health Program by the Service Surgeons General to ensure the highest quality continuity of care for the servicemember. Therefore, the Committee recommendation transfers $21,300,000 requested within the Special Operations Command operation and maintenance budget to the Defense Health Program to address the needs of the special operations community. The Committee directs the Service Surgeons General to work with the Commander, Special Operations Command to implement an embedded behavioral health program for special operations units during fiscal year 2014. The Committee also recognizes that National Guard and reserve personnel in states at high risk for suicide and dangerous behavioral health conditions need convenient access to mental health professionals for proper screening and care. Onsite access to embedded mental health specialists during training assemblies has proven successful in overcoming geographical, stigma, and time barriers that might otherwise bar a member from similar services in an underserved community. The Committee encourages the Secretary of Defense to work with the Chief, National Guard Bureau and Service Surgeons General to implement an embedded behavioral health program for National Guard and reserve component servicemembers in order to provide reserve component personnel with ready access to screening and treatment during unit training assemblies and urges the Secretary of Defense to robustly fund these programs. 13

Cooperation between Military Medical Facilities, Civilian Healthcare Facilities and Universities The Committee recognizes the importance of cooperation between military medical facilities, universities, and other civilian partners to provide valuable medical trauma training to sustain the education of military medical providers. This training and real-life experience contributes to maintaining the capabilities of the National Guard Chemical, Biological, Radiological, and Nuclear Explosives Enhanced Response Force Packages, the National Guard Homeland Response Forces, and the Army Reserve Consequence Management Response Forces. The Committee encourages the Chiefs of the National Guard Bureau and the Army Reserve to continue to pursue trauma training with civilian partners in order to maintain unit medical readiness at optimum levels as military healthcare providers maintain their individual skills to respond effectively to emergency incidents. Additionally, in order to minimize civilian-military operational gaps and maximize interoperability in the event of a catastrophic incident, the Committee encourages the development of enhanced preparedness medical training programs focusing on mass casualty triage, disaster life support, hazardous material life support, and psychological health by maximizing civilian-based advanced trauma expertise gained through day-to-day experiences and medical research programs. Sexual Assault Prevention and Response The recommendation also includes a provision requested by the President to make funds available for the Services, including the National Guard and reserve components, to support high priority Sexual Assault Prevention and Response Program requirements and activities, including the training and funding of personnel. In addition, the Committee fully funds the budget request for Sexual Assault Prevention and Response programs and encourages the Secretary of Defense and the Service Chiefs to do more to stop this destructive epidemic in the military. 14