Defense: FY2011 Authorization and Appropriations

Congressional research reportMay 17, 2011

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Defense: FY2011 Authorization and

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May 17, 2011

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R41254

Defense: FY2011 Authorization and Appropriations

Summary

The President’s FY2011 budget request, released February 1, 2010, requested authorization of

$725.9 billion in new budget authority in the FY2011 National Defense Authorization Act. In

addition to $548.9 billion for the regular (non-war) operations of the Department of Defense

(DOD), the authorization request included $159.3 billion for ongoing military operations in

Afghanistan and Iraq, bringing the total DOD request for FY2011 to $708.2 billion. The request

also included $17.7 billion for defense-related activities of the Department of Energy.

The President’s FY2011 DOD appropriations request, totaling $709.0 billion, was accompanied

by a request for a supplemental FY2010 DOD appropriation of $33.7 billion. The supplemental

request included $33.0 billion for war costs and $655 million to pay DOD’s share of the cost of

humanitarian relief operations in Haiti, struck on January 12, 2010, by a devastating earthquake.

The $548.9 billion appropriation requested for DOD’s so-called “base budget”—that is, all

activities other than war costs—was $18.2 billion higher than the amount appropriated for DOD

non-war costs in FY2010. By DOD’s estimate, this 3.4% increase would have amounted to a

“real” increase of 1.8% in purchasing power, after taking into account the cost of inflation.

On May 28, 2010, the House passed H.R. 5136, the National Defense Authorization Act for

FY2011, which would have authorized $725.9 billion for DOD and other defense-related

activities, a reduction of less than $3 million from the Administration’s request for programs

covered by that legislation. The House bill would have added to the budget $485 million to

continue development of the alternate engine for the Joint Strike Fighter (JSF), despite warnings

by Defense Secretary Robert H. Gates that he would recommend a veto of any bill that would

continue that project. An amendment adopted by the House would have repealed a 1993 law that,

in effect, bars from military service those who are openly homosexual.

On June 4, 2010, the Senate Armed Services Committee reported its version of the FY2011

National Defense Authorization Act (S. 3454; S.Rept. 111-201), which would have authorized

$725.7 billion for DOD and other defense-related activities, a reduction of $240.7 million from

the Administration’s request. The committee bill would have repealed the “don’t ask, don’t tell”

law and it would not add funds for the JSF alternate engine. Controversy over the “don’t ask,

don’t tell” repeal and other provisions blocked Senate action on S. 3454 for months.

Meanwhile, informal negotiations among senior members of the House and Senate Armed

Services Committees produced a compromise bill, the Ike Skelton National Defense

Authorization Act for Fiscal Year 2011 (H.R. 6523). This bill was cleared for the President on

December 22, 2010, and was signed by the President on January 7, 2011 (P.L. 111-383). The

enacted defense authorization bill included no provision relating to the “don’t ask, don’t tell”

policy, which was repealed by separate legislation (H.R. 2965; P.L. 111-321).

Neither the House nor the Senate passed any FY2011 appropriations bills before the fiscal year

began on October 1, 2010, so DOD—like other federal agencies—was funded through the first

six months of FY2011 by a series of continuing resolutions. The legislative battle over the

FY2011 budget wound up on April 15, 2011, when the President signed H.R. 1473 (P.L. 112-10),

funding Defense and other agencies through the balance of FY2011. For DOD, the bill provided a

total of $688.6 billion, which is $20.4 billion less than the President’s request. The bill included

no funds for the JSF alternate engine.

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Defense: FY2011 Authorization and Appropriations

Contents

Most Recent Developments ............................................................................................................. 1

FY2011 National Defense Authorization Act ............................................................................ 2

Status of Legislation ........................................................................................................................ 4

FY2011 National Defense Budget Overview (Budget Function 050) ............................................. 5

FY2011 War Costs and FY2010 Supplemental ......................................................................... 6

Real Growth and “Security Agencies” ...................................................................................... 7

FY2011 DOD Base Budget ............................................................................................................. 9

Projected Growth Rate and Proposed Efficiencies .................................................................. 10

Defense Budget as Share of Gross Domestic Product (GDP) ................................................. 14

Long-term Planning: Strategies and Budgets................................................................................. 15

FY2011 Base Budget Highlights and Potential Issues................................................................... 17

Military Personnel ................................................................................................................... 17

Military Pay Raise ............................................................................................................. 18

Don’t Ask, Don’t Tell ........................................................................................................ 19

Military Health Care Costs ...................................................................................................... 20

Procurement and R&D ............................................................................................................ 21

Army Combat Force Modernization Programs ................................................................. 22

Navy Force Structure and Shipbuilding Plans................................................................... 23

Aircraft Programs .............................................................................................................. 26

Ballistic Missile Defense................................................................................................... 28

Military Construction .............................................................................................................. 29

Aircraft Carrier Homeport ................................................................................................. 29

Marine Corps Relocation to Guam.................................................................................... 30

US CYBERCOM..................................................................................................................... 30

State Department Role in Security Assistance......................................................................... 31

Bill-by-Bill Synopsis of Congressional Action to Date ................................................................. 34

FY2011 National Defense Authorization Act (H.R. 5136, S. 3454, H.R. 6523) ..................... 34

Military Personnel Issues (Authorization) ........................................................................ 36

Sexual Assault ................................................................................................................... 37

Medical Care (Authorization) ........................................................................................... 38

Fort Hood Shooting Incident ............................................................................................. 38

Ballistic Missile Defense, Strategic Weapons, and the New START Treaty

(Authorization) ............................................................................................................... 39

Shipbuilding (Authorization) ............................................................................................ 41

Aircraft (Authorization) .................................................................................................... 42

Ground Combat Vehicle and Brigade Combat Team Modernization

(Authorization) ............................................................................................................... 44

Military Construction: Carrier Homeport and Guam (Authorization) .............................. 45

Guantanamo Bay Detainee Issues ..................................................................................... 46

Security Assistance and the State Department (Authorization) ........................................ 46

Cybersecurity (Authorization)........................................................................................... 47

FY2011 Congressional Budget Ceilings (“302b Allocations”) ............................................... 48

FY2011 Defense Appropriations Bill ...................................................................................... 49

Military Personnel and Medical Care Issues (Appropriations) ......................................... 52

Missile Defense and Strategic Strike (Appropriations) ..................................................... 52

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Defense: FY2011 Authorization and Appropriations

Shipbuilding (Appropriations) .......................................................................................... 53

Aircraft (Appropriations) .................................................................................................. 53

Ground Combat Vehicles (Appropriations) ....................................................................... 53

Figures

Figure 1. Total DOD Appropriations, FY2001-FY2011 .................................................................. 9

Figure 2. DOD Budget (Excluding Post-9/11 War Costs), FY1948-FY2014 ................................ 10

Figure 3. Proposed Spending Categories Relevant to a Budget ‘Freeze’ ...................................... 13

Figure 4. DOD Appropriations as Share of GDP, FY1976-2015 ................................................... 14

Figure 5. Authorized Active Duty End Strength, FY1987-FY2011 ............................................... 18

Tables

Table 1. Summary: DOD Funding in the FY2011 National Defense Authorization (H.R.

5136, S. 3454, H.R. 6523) ............................................................................................................ 3

Table 2. National Defense Authorization Act, FY2011 (H.R. 5136; S. 3454; H.R. 6523) .............. 4

Table 3. FY2011 DOD Appropriations Bill (S. 3800; H.R. 1473)................................................... 4

Table 4. FY2011 National Defense Budget Request (Function 050)............................................... 5

Table 5. FY2009-FY2011 DOD Discretionary Appropriations (Including Military

Construction and DOD Family Housing) ..................................................................................... 6

Table 6. DOD War Funding, FY2001-FY2011 Request .................................................................. 7

Table 7. Security Agency and Non-security Agency Discretionary Budget Authority

Enacted and Requested, FY2009-FY2011 .................................................................................... 8

Table 8. Projected and Alternative DOD Base Budgets, FY2011-FY2015 ................................... 11

Table 9. Defense Outlays as Share of GDP, FY2008-FY2011 ...................................................... 14

Table 10. DOD Base Budget Discretionary Funding Request by Title. FY2010-FY2011 ............ 17

Table 11. FY2011 National Defense Authorization Act (H.R. 5136, S. 3454, H.R. 6523) ............ 35

Table 12. FY2011 Appropriations Subcommittee Discretionary Spending Ceilings

(“302(b) Allocations”) ................................................................................................................ 48

Table 13. FY2011 Department of Defense Appropriations (unnumbered House Defense

Appropriations Subcommittee draft bill; S. 3800; H.R. 1473) ................................................... 51

Table A-1. FY2011 National Defense Authorization Act (by account) ......................................... 55

Table A-2. Congressional Action on Selected FY2011 Missile Defense Funding:

Authorization .............................................................................................................................. 64

Table A-3. Congressional Action on Selected FY2011 Missile Defense Funding:

Appropriations ............................................................................................................................ 68

Table A-4. Congressional Action on Selected FY2011 Army and Marine Corps Programs:

Authorization .............................................................................................................................. 72

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Table A-5. Congressional Action on Selected FY2011 Army and Marine Corps Programs:

Appropriation.............................................................................................................................. 75

Table A-6. Congressional Action on Selected FY2010 Shipbuilding Programs:

Authorization .............................................................................................................................. 77

Table A-7. Congressional Action on Selected FY2010 Navy, Marine Corps and Air Force

Aircraft Programs: Authorization ............................................................................................... 81

Table A-8. Unmanned Aerial Vehicles (UAVs).............................................................................. 83

Table A-9. Congressional Action on Selected FY2011 Navy, Marine, and Air Force

Aircraft Programs: Appropriation ............................................................................................... 85

Appendixes

Appendix. Selected Program Summary Tables.............................................................................. 54

Contacts

Author Contact Information........................................................................................................... 89

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Most Recent Developments

Until FY2011 was more than half over, the Department of Defense (DOD)—like all other federal

agencies that depend on appropriated funds—was funded by a series of continuing resolutions

which, in general, allowed the agencies to keep spending money at what had been their rate of

expenditure during FY2010. These temporary funding measures also included some restrictions

on agencies’ activities, including a prohibition on the start of any new programs unless

specifically allowed for.

On April 15, 2011, the President signed an omnibus funding bill for the balance of FY2011 (H.R.

1473; P.L. 112-10), which incorporated a fully detailed FY2011 DOD appropriations bill

providing a total of $659.9 billion for all DOD activities except military construction.1 This

amounted to a reduction of $18.2 billion from the total the President had requested for the

FY2011 DOD appropriations bill.

For DOD’s military construction budget, which is funded in a separate appropriations bill that

also pays for the Department of Veterans Affairs and certain other agencies, H.R. 1473 provided

$17.8 billion, a reduction of $2.2 billion from the President’s request.

Military Construction Appropriations Report

This report deals with military construction issues raised by the annual defense authorization act. However, for an

analysis of military construction appropriations issues, see CRS Report R41345, Military Construction, Veterans Affairs,

and Related Agencies: FY2011 Appropriations, by (name redacted), (name redacted), and (name redacted).

As enacted, the section of H.R. 1473 that corresponded to a regular, annual DOD appropriations

bill incorporated $4.4 billion worth of reductions to the President’s request that were applied to

broad categories of spending rather than to specific programs, including:

•

$2.0 billion rescinded from DOD funds appropriated for prior fiscal years;2

•

A total of $1.5 billion cut proportionately from every project and program funded

by the bill’s accounts for Operations and Maintenance, Procurement, and

Research and Development;

•

$723 million from the total appropriated for civilian pay; and

•

$125 million from the total appropriated for federally funded research and

development corporations (FFRDCs) such as RAND.

The bill also made significant reductions to the amounts requested for some major weapons

programs, including:

1

In addition to the amounts appropriated for DOD in this bill the total amount appropriated for DOD in FY2011

included $10.9 billion for the accrual payments that fund the so-called “Tricare for Life” program which extends

coverage under the military health care program to Medicare-eligible military retirees and their dependents. The annual

Tricare for Life accrual payment, based on actuarial calculations, is made on the basis of a permanent appropriation,

rather than as an element of the annual appropriations bill. For FY2011, the total appropriated for DOD—including the

Tricare for Life accrual payment and military construction funds, was $688.6 billion.

2

Funds appropriated in prior years that are rescinded are used to partly offset the cost of newly appropriated programs;

Thus, they reduce the amount of the new budget authority required by the bill.

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Defense: FY2011 Authorization and Appropriations

•

$1.7 billion cut from the $10.2 billion requested for continued development and

production of the F-35 Joint Strike Fighter;

•

$473 million from the $934 million requested for a new ground combat vehicle

for the Army; and

•

$325 million cut from the $864 billion requested to develop a new mid-air

refueling tanker for the Air Force.

The hundreds of cuts to the President’s DOD budget made by H.R. 1473 were partly offset by

some 226 instances in which the bill added funds to the request.3 Among the amounts the bill

added to the budget request are:

•

$495.0 million for nine F/A-18E/F Navy strike fighters,

•

$1.38 billion for equipment for the National Guard and reserve components;

•

$661.7 million for various medical research programs;

•

$523.2 million to foster innovative research;

•

$293.2 million for Israeli missile defense systems; and

•

$165.0 million to increase funding for the Military Career Advancement Account

(MyCAA) program, which provides tuition assistance to the spouses of service

members;

The bill did not add funds to continue development of an alternate engine for the F-35 Joint Strike

Fighter.

FY2011 National Defense Authorization Act

The version of the FY2011 National Defense Authorization Act passed May 28 by the House

(H.R. 5136; H.Rept. 111-491) would have authorized $725.9 billion for DOD and other defenserelated activities, which was $2.7 million less than the Administration requested. The version of

the bill reported by the Senate Armed Services Committee on June 4, 2010, (S. 3454; S.Rept.

111-201), would have authorized $725.7 billion, a reduction of $240.7 million from the

Administration’s request.

The Senate did not act on this version of bill, partly because of opposition to a provision that

would have repealed a 1993 law (10 U.S.C. 654) that, in effect, had barred from military service

those who are openly homosexual, establishing a policy colloquially referred to as “don’t ask,

don’t tell.” S. 3454 was set aside after the Senate, on December 9, 2010, rejected a motion to

invoke cloture on motion to begin consideration of the bill. The vote was 57-40 in favor of

invoking cloture, which would have required 60 “yea” votes.

3

This is about one-eighth the number of additions Congress has made to DOD budget requests for the past few years.

According to a database of congressional earmarks in appropriations bills, which is maintained by the Office of

Management and Budget, there were 2,085 earmarks in the defense appropriations bill for FY2008, 2,084 in the bill for

FY2009, and 1,758 in the FY2010 bill. See OMB, “FY2010 Earmarks by Appropriations Subcommittee” accessed at

http://earmarks.omb.gov/earmarks-public/2010-appropriations-by-spendcom/summary.html.

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Members of the House and Senate Armed Services Committees negotiated a compromise version

of the authorization bill (H.R. 6523), which dropped the provision relating to the “don’t ask; don’t

tell” policy and which was cleared for the President on December 22, 2010. The President signed

the bill on January 7, 2011 (P.L. 111-383).

Table 1. Summary: DOD Funding in the FY2011 National Defense Authorization

(H.R. 5136, S. 3454, H.R. 6523)

(amounts in billions of dollars of discretionary budget authority)

Administration

request for

Authorization

House-passed

H.R. 5136

5/28/1

Senate

committeereported

S. 3454

6/4/10

Base Budget

548.871

548.869

550.314

548.055

War Costs (“Overseas

Contingency Operations”)

159.336

159.335

157.648

158.750

Total

708.207

708.204

707.962

706.805

H.R. 6523

Enacted

(P.L. 111-383)

1/7/2011

Sources: House Armed Services Committee, Report to Accompany H.R. 5136, the National Defense

Authorization Act for Fiscal Year 2011, H.Rept. 111-491; Senate Armed Services Committee, Report to

Accompany S. 3454, the National Defense Authorization Act for Fiscal Year 2011, S.Rept. 111-201. House

Armed Services Committee Print, HASC No. 6, Ike Skelton National Defense Authorization Act for Fiscal Year

2011, Legislative Text and Joint Explanatory Statement, to accompany H.R. 6523, P.L. 111-383.

Notes: These amounts include funding for military construction and DOD family housing, but exclude funds

authorized by the bill for defense-related nuclear energy programs conducted by the Department of Energy and

certain other defense-related federal activities outside of DOD that the federal budget includes in budget

function 050 (“national defense”). A summary table including all authorizations in the bill is printed as Table A1.

Totals may not add due to rounding.

Both the versions of the authorization passed by the House and Senate generally supported the

Administration’s budget request. In particular, both versions—and the enacted H.R. 6523—

supported President Obama’s position by not adding to the budget funds to continue production of

the C-17 long-range cargo plane.

On two other high profile issues, the original House-passed bill challenged Administration

positions that were backed by the original Senate bill:

•

authorizing a 1.9% increase in basic pay for military personnel instead of the

1.4% increase requested by the President, which was authorized by the Senate

bill; and

•

authorizing $485 million not requested in the budget to continue development of

an alternate jet engine for the F-35 Joint Strike Fighter, a project the Bush and

Obama Administrations both have tried to terminate.

The enacted version of the FY2011 bill, H.R. 6523, authorized the 1.4% basic pay raise, as

requested, and $485 million for the alternate engine for the F-35.

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Status of Legislation

Table 2. National Defense Authorization Act, FY2011 (H.R. 5136; S. 3454; H.R. 6523)

House

Passage

H.R.

5136

House

Report

H.Rept.

111-491

229-186

5/28/10

5/21/10

H.R. 6523

Senate

Report

S.Rept.

111-201

Senate

Passage

S. 3454

--

Conf.

Report

--

6/4/10

House

Passage

341-48

12/17/10

Senate

Passage

u/c

12/22/10

Public

Law

P.L. 111383

1/7/11

Note: In lieu of a conference report on the enacted version of the bill (H.R. 6523), see House Armed Services

Committee Print HASC No. 5, Legislative Text and Joint Explanatory Statement to Accompany H.R. 6523, December,

2010.

Table 3. FY2011 DOD Appropriations Bill (S. 3800; H.R. 1473)

FY2011 Continuing

Resolution

(H.R. 1473)

Passage

Subcommittee

Markup

House

(draft bill)

Senate

(S. 3800)

House

Report

House

Passage

9/27/10

9/14/10

--

--

Senate

Report

(S. 3800)

S.Rept.

111-295

9/16/10

Senate

Passage

Conf.

Report

--

--

House

Senate

Public

Law

260-167

4/14/11

81-19

4/14/11

P.L. 112-10

4/15/11

Note: Division A of the FY2011 continuing resolution (H.R. 1473) is a complete DOD appropriations bill. Since

the final version of the bill was negotiated without a formal conference, there is no conference report. Nor is

there a Joint Explanatory Statement discussing the legislative intent behind provisions of the bill. The text of the

agreed on bill as well as detailed funding tables are printed in the "Department of Defense and Full-Year

Continuing Appropriations Act, 2011," Congressional Record, daily edition, vol. 157, number 55 (April 14, 2011),

pp. H2697-H2788.

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Defense: FY2011 Authorization and Appropriations

FY2011 National Defense Budget Overview

(Budget Function 050)

The President’s FY2011 budget request, released February 1, 2010, included $738.7 billion in

new budget authority for the so-called “national defense” function of the federal government

(function 050), which includes the military activities of the Department of Defense (DOD) and

defense-related activities of other agencies, the largest component of which is Energy Department

work related to nuclear weapons and nuclear powerplants for warships.4

Of that total, $733.3 billion is discretionary spending, most of which requires an annual

appropriation.5 The FY2011 budget for the 050 function also includes a net sum of $5.3 billion in

mandatory spending, the largest share of which is for military retirees who are authorized to

receive “concurrent receipt” of their full military pension and a disability pension from the

Department of Veterans Affairs (Table 4).6

Table 4. FY2011 National Defense Budget Request (Function 050)

(amounts are in billions of dollars)

Discretionary

Mandatory

Total

Department of Defense,

Base Budget

548.9

3.9

552.8

Department of Defense,

war costs

159.3

0

159.3

Other “national defense”

activities

25.2

1.4

26.6

Total

733.4

5.3

738.7

Source: Office of the Undersecretary of Defense (Comptroller), National Defense Budget Estimates for FY2011

(“The Green Book”), March 2010, Table1-9, “National Defense Budget Authority-Function 050,” pp. 14-15.

In addition to $548.9 billion requested for the regular (non-war) operations of the Department of

Defense (DOD) in FY2011, the budget request included $159.3 billion for ongoing military

operations, primarily funding the campaigns in Afghanistan and Iraq, bringing the total DOD

request for FY2011 to $708.3 billion. The Administration also requested $33 billion in

supplemental DOD appropriations for FY2010 war costs, in order to cover the cost of the

President’s decision, announced on November 30, 2009, to deploy an additional 30,000 troops to

Afghanistan. This “surge” would bring to 98,000 the total number of U.S. troops in that country

in FY2011. Added to the funds previously appropriated for war costs in the FY2010 DOD

appropriations bill enacted December 19, 2009 (H.R. 3326/P.L. 111-118), the requested

4

Civil works activities of the Army Corps of Engineers are not included in the “national defense” budget function.

Accrual payments to support medical care for military retirees under the so-called Tricare-for-Life program are

counted as discretionary spending, but are funded under a permanent appropriation.

6

Mandatory spending for concurrent receipt and other activities is partially offset by various receipts and income from

trust funds.

5

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supplemental funds would bring the total amount appropriated for FY2010 war costs to $162.6

billion (Table 5).

Table 5. FY2009-FY2011 DOD Discretionary Appropriations

(Including Military Construction and DOD Family Housing)

(amounts in billions of dollars)

FY2009

Enacted

FY2010

Enacted

FY2010

Supplemental

Request

FY2011

Requested

Base Budget

513.1

530.7

n/a

548.9

“Economic Stimulus” package

7.4

n/a

n/a

n/a

War Costs/Overseas

Contingency Operations

145.8

129.6

33.0

159.3

Haiti Relief Operations

n/a

n/a

.7

n/a

Total

666.3

660.3

33.7

708.3

Sources: CRS calculations based on National Defense Budget Estimates for FY2011 (“The Green Book”). Office of

the Undersecretary of Defense (Comptroller), March 2010, Table1-9, “National Defense Budget AuthorityFunction 050,” pp. 14-15 and CRS Report R40531, FY2009 Spring Supplemental Appropriations for Overseas

Contingency Operations, coordinated by (name redacted) and (name redacted), Table F-1, pp. 62-72. Totals may

not add due to rounding.

Note: Base budget amounts Include accrual payments to support medical care for military retirees under the socalled Tricare-for-Life program, which is discretionary spending, but is funded pursuant to a permanent

appropriation.

FY2011 War Costs and FY2010 Supplemental

The Administration’s $159.3 billion request for war costs in FY2011 was roughly $3 billion lower

than the FY2010 war budget (including the pending supplemental request that would increase the

FY2010 amount by $33 billion). For the third year in a row, the budget request reflected a shift in

emphasis from operations in Iraq to those in Afghanistan (Table 6).

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Table 6. DOD War Funding, FY2001-FY2011 Request

(in billions of dollars and shares of total)

Total:

FY2001FY2008

FY2009

FY2010

Enacted in

2009

FY2010

Supplemental

Request

FY2010

Total with

Supplemental

as Enacted

7/27/10

FY2011

Request

IRAQ

Funding

$553.5

$92.0

$59.6

$1.0

$60.6

$45.8

Share of Total

78%

62%

46%

3%

38%

29%

Funding

$159.2

$56.1

$69.1

$30.0

$98.9

$113.5

Share of Total

22%

38%

54%

97%

62%

71%

Funding

$712.7

$148.2

$128.7

$31.0

$159.5

$159.3

Share of Total

100%

100%

100%

100%

100%

100%

AFGHANISTAN

TOTAL

Source: CRS Report R41232, FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs,

coordinated by (name redacted), based on Table 8-5 in DOD,

FY2011 Budget Request Overview, Febraury 1, 2010;

http://comptroller.defense.gov/defbudget/fy2011/FY2011_Budget_Request_Overview_Book.pdf.

Notes: CRS calculations exclude non-war funding in supplementals, and include funds from DOD’s regular

budget used for war needs.

War Funding

For an analysis of some issues raised by the Administration’s funding request for military operations in Iraq and

Afghanistan and for congressional action on the FY2010 supplemental appropriations request for war costs, see CRS

Report R41232, FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs, coordinated by (nam

e redacted). For further information on war costs, see CRS Report RL33110,

The Cost of Iraq, Afghanistan, and Other Global

War on Terror Operations Since 9/11, by (name redacted).

Haiti Operations Supplemental

On March 24, 2010, the Administration amended its FY2010 DOD supplemental funding request

to include an additional $655 million to pay for humanitarian relief operations in Haiti, which was

struck on January 12, 2010, by a devastating earthquake. The DOD relief effort included the

deployment of 18 Navy ships, 830 cargo flights and nearly 21,000 military personnel.

Real Growth and “Security Agencies”

DOD is one of the federal agencies the Administration has defined as “security agencies” that are

exempt from the budget freeze on discretionary spending by non-security agencies. Compared

with the amount appropriated for the DOD base budget in FY2010, the requested FY2011 base

budget would be an increase of 3.4%, amounting to a 1.8% “real growth” in purchasing power

(that is, taking account of the cost of inflation).

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The budget request also would provide real growth in spending for other “security agencies”—a

category that it defined as including the Department of State and “other international programs,”

the Departments of Veterans Affairs and Homeland Security and the National Nuclear Security

Administration (NNSA) of the Department of Energy.7

In sum, the Administration requested $719.2 billion for discretionary programs of the security

agencies (excluding war costs), which is 5.2% more than was appropriated for those programs in

FY2010. For non-security agencies—that is, all other discretionary programs—the

Administration requested $386.4 billion, a 1.5% decrease from their FY2010 appropriations

(Table 7).

Table 7. Security Agency and Non-security Agency Discretionary Budget Authority

Enacted and Requested, FY2009-FY2011

(amounts are in billions of dollars)

FY2009

enacted

FY2010

enacted

FY2011

requested

Regular

Appropriations

American

Recovery and

Reinvestment

Act

(“Stimulus

Package”)

513.2

7.4

530.8

548.9

National Nuclear Security Administration

(Department of Energy)

9.1

--

9.9

11.2

Department of Homeland Security

42.1

2.8

39.4

43.6

Department of Veterans Affairs

47.6

1.4

53.1

57.0

State and other International Programs

38.1

0.4

50.6

58.5

Subtotal, Security Agencies

650.1

12.0

683.7

719.2

Subtotal, Nonsecurity Agencies

354.1

253.1

392.1

386.4

Security Agencies

DOD (excluding war costs)

Source: Office of Management and Budget, The Budget for Fiscal Year 2011, Table S-7, “Funding Levels for

Appropriated (“Discretionary”) Programs by Agency,” pp. 130-31.

Note: Nonsecurity Agencies are all federal agencies not listed as “Security Agencies.”

7

For the Energy Department’s Nuclear National Security Agency (NNSA), which was designated as a “security

agency” and, thus, exempt from its budget freeze, the Administration requested $11.2 billion in FY2011, 13.5% more

than was appropriated for the agency in FY2010. However, the Administration also requested $6.5 billion for other

defense-related Energy Department activities which OMB designates as part of the “National Security” function of the

budget (Function 050) and which are covered by the annual National Defense Authorization Act, but which the

Administration did not designate as “security agencies” that were exempt from the budget freeze. Office of

Management and Budget, Historical Tables, Budget of the U.S. Government, Fiscal Year 2011, Table 5.1, “Budget

Authority by Function and Subfunction, 1976-2015,” p. 94, and Department of Energy, “Summary Table: Budget by

Appropriation,” accessed at http://www.mbe.doe.gov/budget/11budget/Content/Apprsum.pdf.

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FY2011 DOD Base Budget

The $548.9 billion requested for the FY2011 DOD base budget is $18.2 billion higher than the

$531.0 billion appropriated for DOD non-war costs in FY2010. By DOD’s estimate, this 3.4%

increase would provide a 1.8% increase in real purchasing power, after taking into account the

cost of inflation. The request would continue the relatively steady upward trend in DOD base

budgets since FY1998, which was the low-water mark of the post-Cold War retrenchment in

defense funding (Figure 1).

Figure 1.Total DOD Appropriations, FY2001-FY2011

(dollars in billions)

Source: DOD; Briefing on the FY2011 Budget Request, February 2010, accessed at

http://comptroller.defense.gov/defbudget/fy2011/fy2011_BudgetBriefing.pdf

Adjusted for inflation (using DOD deflators), the requested FY2011 base budget would be DOD’s

third largest since the end of the Korean War, after the amounts appropriated for FY1985 and

FY1986 at the peak of the Reagan Administration’s defense buildup (Figure 2).

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Figure 2. DOD Budget (Excluding Post-9/11 War Costs), FY1948-FY2014

amounts in millions of dollars

Source: Office of the Undersecretary of Defense (Comptroller), National Defense Budget Estimates for FY2011

(“The Green Book”), Table 6-8, “Department of Defense BA by Title,” pp. 109-114. Data for FY2001-FY2011

from CRS analysis based on distinction between base budget and war costs for those years in DOD; Briefing on

the FY2011 Budget Request, February 2010 (see Figure 1, above).

Notes: Data for FY2010 and FY2011 based on Administration’s February 2010 budget request. Data for the

FY1976 transition quarter are omitted.

Projected Growth Rate and Proposed Efficiencies

For the four years following FY2011 (FY2012-FY2015), the Administration projects annual

increases in the DOD base budget that would exceed inflation, on average, by 0.8%. This falls

short of the 2% real growth rate that Defense Secretary Robert Gates said, in congressional

testimony on May 14, 2009, would be needed to pay for the investments the Department planned

to make through FY2015 (Table 8).8

8

Transcript, Senate Armed Services Committee hearing on the FY2010 DOD budget request, May 14, 2009. Accessed

at

http://www.cq.com/display.do?dockey=/cqonline/prod/data/docs/html/transcripts/congressional/111/congressionaltrans

cripts111-000003117540.html@committees&metapub=CQ-CONGTRANSCRIPTS&searchIndex=1&seqNum=1.

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Table 8. Projected and Alternative DOD Base Budgets, FY2011-FY2015

(total budget authority, including mandatory, in billions of dollars)

FY2011

FY2012

FY2013

FY2014

FY2015

FY2011FY2015,

total

Administration Plan (current dollars)

552.8

570.1

585.7

601.8

620.2

2,930.6

Administration Plan (constant FY2011

dollars)

552.8

558.8

562.7

566.3

571.5

2,812.1

percent real growth

1.8%

1.1%

0.7%

0.6%

0.9%

n/a

Amount that would provide 2% real

growth, compounded (current dollars)

553.9

576.4

600.0

624.6

650.7

3,005.6

Amount by which 2% real growth budget

would exceed Administration Plan

(current dollars)

1.1

6.3

14.3

22.8

30.5

75.0

Source: Office of the Undersecretary of Defense (Comptroller), National Defense Budget Estimates for FY2011

(“The Green Book”), Table 6-8, “Department of Defense BA by Title,” p. 114. Data concerning 2% real growth

rate are CRS calculations based on data in Table 6-8. Figures may not add due to rounding.

In a May 8, 2010, speech, Secretary Gates proposed bridging that gap between the cost of

sustaining the current force and the budgets he expected in the future by reducing DOD’s

overhead costs by $10 billion annually, in order to sustain its current forces with the budgets he

expected in the future, given the country’s current difficult economic circumstances. Sustaining

the current force, Secretary Gates said, would require, “real growth in the defense budget ranging

from two to 3% above inflation.... But, realistically, it is highly unlikely that we will achieve the

real growth rates necessary to sustain the current force structure.”9

The solution Secretary Gates proposed was to shift funds within the budget, providing the

necessary real growth in those accounts that directly support combat forces, but offsetting the

additional cost by an equivalent reduction in spending for administrative and support activities

such as personnel management, acquisition oversight, and DOD’s medical program. Phrased in

terms of military jargon, Secretary Gates proposed increasing the amount spent on DOD’s

fighting force—the “tooth”-- by decreasing the amount spent on administrative and support

functions—the “tail.”

The goal is to cut our overhead costs and to transfer those savings to force structure and

modernization within the programmed budget: In other words, to convert sufficient “tail” to

“tooth” to provide the equivalent of roughly two to three percent real growth.... Simply

taking a few percent off the top of everything on a one-time basis will not do. These savings

must stem from root-and-branch changes that can be sustained and added to over time.10

Citing an estimate by the Defense Business Board11 that DOD’s tail absorbs roughly 40% of the

department’s annual budget,12 Gates told reporters that a shift of about $10 billion from those

9

Secretary Gates delivered this address at the Eisenhower Library in Abilene, Kansas. Office of the Assistant Secretary

of Defense (Public Affairs), “Remarks as Delivered by Secretary of Defense Robert M. Gates, Abilene, KAS, May 8,

2010”, accessed at: http://www.defense.gov/Speeches/Speech.aspx?SpeechID=1467.

10

Ibid.

11

The Defense Business Board, is a federal advisory committee that provides management advice to the Secretary of

(continued...)

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support functions to the part of the budget that directly supports combat units would provide a

total real increase of about 3% in the “tooth”-related part of the FY2012 DOD budget request.13

On August 9, 2010, Secretary Gates announced several initiatives he said would reduce the cost

of DOD’s headquarters and support bureaucracies. Among these were:

•

a 10% reduction in funding for service support contractors in each of the next

three years;

•

a reduction in the number of generals and admirals by 50 and a reduction in the

number of senior DOD civilians by 150 over the next two years; and

•

elimination of the Joint Forces Command, the Business Transformation Agency

and the Office of the Assistant Secretary of Defense for Networks and

Information Integration.14

On September 14, 2010, Secretary Gates announced 23 additional initiatives, all of which were

intended to increase the efficiency with which DOD contracts for goods and services—activities

which, he said, account for about $400 billion of the roughly $700 billion the department spends

annually. Among these contracting and acquisition initiatives were:

•

a requirement that weapons program managers treat an “affordability target” as a

key requirement of each new system, on a par with the usual performance

requirements such as speed or data transmission rate;

•

various contracting revisions intended to reward contractors for managing their

programs more efficiently; and

•

several changes in contracting rules intended to reduce the cost of contracts for

services, which account for more than half DOD’s annual contracting budget.15

Some Members of Congress contend that the Administration’s projected real budget increases,

even if realized, would be inadequate, given the steadily rising cost of personnel and operations.

For example, Representative Howard P. “Buck” McKeon, then the ranking minority Member of

the House Armed Services Committee, commented in a February 4, 2010, Heritage Foundation

lecture that the planned budgets would force DOD to scale back some planned acquisition

programs:

One percent real growth in the defense budget over the next five years is a net cut for

investment and procurement accounts.16

(...continued)

Defense.

12

Defense Business Board, Report to the Secretary of Defense: Task Group Report on Tooth-to-Tail Analysis, April

2008, accessed at http://dbb.defense.gov/pdf/Tooth_to_Tail_Final_Report.pdf.

13

Office of the Assistant Secretary of Defense (Public Affairs), “Media Availability with Secretary Gates en route to

Kansas City, MO, May 7, 2010, accessed at http://www.defense.gov/transcripts/transcript.aspx?transcriptid=4621.

14

Secretary of Defense Robert M. Gates, “Statement on Department Efficiencies Initiative,” August 9, 2010, Office of

the Assistant Secretary of Defense (Public Affairs), accessed at

http://www.defense.gov/Speeches/Speech.aspx?SpeechID=1496

15

See Office of the Assistant Secretary of Defense (Public Affairs), News Transcript, “DOD News Briefing with Under

Secretary Carter with Opening Remarks by Secretary Gates from the Pentagon,” September 14, 2010, accessed at

http://www.defense.gov/transcripts/transcript.aspx?transcriptid=4684, on September 16, 2010.

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On the other hand, some Members object to exempting DOD (and other “security agencies”)

from the Administration-imposed budget freeze on discretionary spending (Figure 3). For

example, Representative Barney Frank has called for reductions in the DOD budget based on the

termination of unnecessary weapons programs and a retrenchment from some of overseas military

deployments.

[President Obama’s] announcement that he is going to begin deficit reduction, while

exempting the ever-increasing military budget from the same scrutiny that goes to other

federal expenditures means either that deficit reduction in both the near and long term is

doomed to failure, or that devastating cuts will occur in virtually every federal program that

aims at improving the quality of our lives.17

Figure 3. Proposed Spending Categories Relevant to a Budget ‘Freeze’

amounts in billions of current dollars

Source: Office of Management and Budget, The Budget for Fiscal Year 2011. Data for Security Agencies

(excluding war costs) and Non-Security Agencies drawn from Table S-11, “Funding Levels for Appropriated

(“Discretionary”) Programs by Agency,” p. 174. Data for Mandatory Spending and Net Interest drawn from

Table S-4, “Proposed Budget by Category,” p. 151.

Notes: Besides DOD, the Obama Administration defines as “security agencies” the following: the Department

of Homeland Security, the Department of Veterans Affairs, the Department of State “and other international

(...continued)

16

Hon. Howard P. “Buck” McKeon, “Building a Robust National Defense,” accessed at

http://www.heritage.org/Research/Lecture/Building-a-Robust-National-Defense.

17

Rep. Barney Frank, "You Can't Succeed at Deficit Reduction Without Really Trying," Congressional Record, daily

edition, February 4, 2010, p. E157.http://www.house.gov/frank/speeches/2010/02-02-10-deficit-reduction-militaryspeech.pdf.

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programs,” and the National Nuclear Security Administration within the Department of Energy. Ibid.,Table S-11,

“Funding Levels for Appropriated (“Discretionary”) Programs by Agency,” p. 174.

Defense Budget as Share of Gross Domestic Product (GDP)

The FY2011 DOD base budget request amounts to 3.6% of the GDP, by the Administration’s

calculations—the same percentage as the FY2010 base budget (Table 9).

Table 9. Defense Outlays as Share of GDP, FY2008-FY2011

2008

2009

2010

2011

DOD Base Budget

(without war costs)

3.3%

3.5%

3.6%

3.6%

DOD Total Budget

4.1%

4.5%

4.7%

4.7%

Source: Office of the Undersecretary of Defense (Comptroller), National Defense Budget Estimates for FY2011

(“The Green Book”), Table 7-7, “Defense Shares of Economic and Budgetary Aggregates,” pp. 223-24, and Office

of the Undersecretary of Defense (Comptroller), Fiscal Year 2011 Budget Request, briefing slides accessed at

http://comptroller.defense.gov/defbudget/fy2011/fy2011_BudgetBriefing.pdf.

Viewed over the long haul, the FY2011 request would mark the leveling off of a relatively steady

upward trend in the DOD share of GDP since the attacks of September 11, 2001 (Figure 4).

Figure 4. DOD Appropriations as Share of GDP, FY1976-2015

Source: CRS calculations based on Office of the Undersecretary of Defense (Comptroller), National Defense

Budget Estimates for FY2011 (“The Green Book”), Table 7-7, “Defense Shares of Economic and Budgetary

Aggregates,” pp. 223-24.

Notes: Discussions of the DOD share of the GDP typically use data based on DOD outlays for each fiscal year,

as in Table 5, above, This chart is based on annual levels of DOD budget authority, because available outlay data

do not separate war costs from base budget expenditures. Year to year changes in outlays lag corresponding

movements in budget authority, but over a long period, trends in the ratio of DOD budget authority to GDP

should closely track trends in the ratio of DOD outlays to GDP.

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Long-term Planning: Strategies and Budgets

The Administration did not propose in its FY2011 DOD budget request as many significant

changes to major weapons programs as had been incorporated into its FY2010 request.

Nevertheless, the FY2011 budget sustains the initiatives launched in the previous budget.

Moreover, the budget request reflects the strategy and force planning assumptions that are

embodied in DOD’s Quadrennial Defense Review (QDR), a legislatively mandated assessment of

defense strategy and priorities, the most recent of which was released on February 1, 2010, to

accompany the FY2011 budget request.

2010 Quadrennial Defense Review

For a more comprehensive review of the 2010 QDR, see CRS Report R41250, Quadrennial Defense Review 2010:

Overview and Implications for National Security Planning, by (name redacted).

The four QDRs produced in 1997, 2001, 2005, and 2010 document an ongoing evolution of DOD

strategic thinking that has seen a shift away from emphasizing the readiness of U.S. forces to

wage smaller versions of Cold War-era conventional wars, such as the 1991 Persian Gulf War.

Increasingly, U.S. planners have focused on the need for U.S. forces to be ready for a diverse

array of missions.18 Two key assumptions running through the 2010 QDR are particularly relevant

to the Administration’s budgetary priorities.

The first of these key assumptions is that DOD’s top priority is fighting and winning the ongoing

campaigns in Iraq and Afghanistan. Accordingly, the report says, the department must rebalance

its priorities to put more emphasis on support for forces engaged in current operations, and

institutionalize capabilities for counterinsurgency, stability, and counter-terrorism operations,

such as those currently being conducted by U.S. forces in Iraq and Afghanistan.

Among the near-term initiatives recommended by the QDR toward this end are increased funding

to acquire helicopters, UAVs, improved intelligence and analysis capabilities, counter IED

technologies, and AC-130 gunship aircraft.19 The report also recommends some longer-term

initiatives, including the conversion of one heavy Army brigade combat team (BCT) into a

Stryker brigade—such brigades use wheeled Stryker armored vehicles for mobility. The report

says that “several more BCTs” may be converted “as resources become available and future

global demands become clearer.”20

A second basic assumption asserted throughout the 2010 QDR is that no adversary in prospect

over the next 10-20 years is likely to directly confront U.S. conventional, military capabilities as

embodied in armored brigades, aircraft carrier task forces, and squadrons of advanced jet fighters.

Instead, the argument goes, any foe—whether a violent, radical non-state terrorist group or a

technologically advanced near-peer competitor—will try to challenge U.S. forces

“asymmetrically,” that is, by using unconventional tactics and technologies to exploit U.S.

18

Department of Defense, Quadrennial Defense Review Report, 2010, at

http://www.defense.gov/qdr/images/QDR_as_of_12Feb10_1000.pdf.

19

“UAVs” refers to unmanned or unpiloted aerial vehicles, particularly used for intelligence, surveillance, and

reconnaissance (ISR) missions. IEDs are improvised explosive devices, including roadside, car, and truck bombs.

20

Department of Defense, Quadrennial Defense Review Report, 2010, p. 24 at

http://www.defense.gov/qdr/images/QDR_as_of_12Feb10_1000.pdf.

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limitations. The report challenges the widely held notion that there is a spectrum of conflict,

ranging from unsophisticated insurgents or terrorists at the low end to sophisticated national

armies at the high end. Instead, the QDR says, “low-end” terrorist groups may use advanced

technologies such as precision-guided missiles and near-peer competitors may use guerrilla-like

“indirect means” of attack, such as a cyber-war campaign to degrade the computer networks on

which U.S. forces rely heavily.

The 2010 QDR emphasizes the importance of the military’s ability to operate effectively in

cyberspace, which it characterizes as one more domain of operations along with air, sea and

space. The report also asserts that DOD must strengthen its capabilities to actively defend its

cyber-networks. Towards this end, the report calls for several specific steps, including:

developing a more comprehensive approach to DOD operations in cyberspace; developing a

greater cyber expertise and awareness within DOD; centralizing command of cyber operations;

and collaborating more closely with other agencies and levels of government to enhance cyber

security.

The 2010 QDR does not abandon the long-standing policy that U.S. forces should be able to win

two major regional wars that occur nearly simultaneously in widely separated theaters of action.

However, the report assigns equal importance to ensuring that U.S. forces can respond flexibly

and effectively when required to conduct concurrently, at various points around the globe, several

missions of different types. For example, one scenario the QDR said U.S. forces should be able to

handle combined a major operation to stabilize another country, sustaining deterrence of a

potential aggressor in another region, conducting a medium-sized counter-insurgency mission in

yet another country, and providing support to U.S. civil authorities in the wake of some major

disaster or terrorist attack.

The 2010 QDR emphasizes the importance of preparing U.S. forces to deal with one particular

type of asymmetric threat that has potentially significant implications for conventional U.S.

forces: a so-called “anti-access, area-denial” capability that China and other potential adversaries

appear to be developing. The argument is that China or Iran could use a variety of both simple

and sophisticated technologies to target U.S. forward bases in nearby nations and naval forces

operating relatively close to shore, which are the basis of the U.S. ability to project power in

regions far from the U.S. homeland. Such power projection capabilities are the bedrock of U.S.

alliances in Europe and Asia and the key to U.S. efforts to bolster stability in other important

regions as well. Such capabilities are also expensive. The cost of power projection capabilities is

one reason why U.S. defense spending dramatically exceeds that of any other nation.

Those sinews of U.S. power projections may be increasingly vulnerable to attack. Overseas

ground bases may be increasingly vulnerable to ballistic missile, cruise missile, and bomber

attacks. Naval forces, particularly aircraft carriers and other service combatants, may be

increasingly vulnerable to anti-ship cruise missiles; modern, quiet diesel electric submarines;

smart mines that can be activated on command and maneuvered into place; small, fast boats laden

with explosives; or, at the high end of the technological spectrum, ballistic missiles with

maneuverable warheads that can be redirected in flight to strike moving ships.

The QDR makes a number of recommendations for countering anti-access strategies, including

increased reliance on long-range strike weapons and submarines that would be less vulnerable to

such methods. For instance, long-range strike forces might include a new manned or unmanned

bomber, perhaps armed with long-range cruise missiles for stand-off attacks. Measures to defeat

enemy sensors and engagement systems include development of offensive “electronic attack”

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capabilities, which remain highly classified. Missile defense may be a major and expensive part

of measures to protect forward deployed forces.

FY2011 Base Budget Highlights and Potential Issues

The FY2011 base budget request reflected some major initiatives of long standing, and others—

particularly in acquisition—that were launched by the Obama Administration in its FY2010

budget (Table 10). Following are some highlights:

Table 10. DOD Base Budget Discretionary Funding Request by Title. FY2010-FY2011

(current dollar amounts in billions)

FY2010

FY2011

Change, FY210FY211

Military Personnel

$135.0

$138.5

+2.6%

Operations and Maintenance

184.5

200.2

+8.5%

Procurement

104.8

112.9

+7.7%

Research and Development

80.1

76.1

-5.0%

Military Construction and

Family Housing

23.3

18.7

-19.6%

Revolving and Management

Funds

3,1

2.4

-23.7%

$530.7

$548.9

+3.4%

Total

Source: DOD; Briefing on the FY2011 Budget Request, February 2010, accessed at:

http://comptroller.defense.gov/defbudget/fy2011/fy2011_BudgetBriefing.pdf

Military Personnel21

The FY2011 budget request would fund 1.43 million active duty personnel in the regular

components.22 This amounts to a 4.7% increase over the end-strength of 1.38 million in FY2000,

which was the low point in a reduction in active-duty manpower that began in FY1987 and

accelerated during the 1990s, after the collapse of the Soviet Union.

Additional Detail on Selected FY2011 Military Personnel Issues

For a more comprehensive review of military personnel issues in the FY2011 budget, see CRS Report R41316,

FY2011 National Defense Authorization Act: Selected Military Personnel Policy Issues, coordinated by (name redacted).

21

Prepared in collaboration with (name redacted), Specialist in Military Manpower Policy.

This total includes 26,000 personnel who comprise what DOD regards as a temporary expansion to fill billets

associated with ongoing operations in Iraq and Afghanistan. It does not include 79,000 members of the reserve

components (including the National Guard) who are serving full-time, nor does it include the much larger number of

reserve component personnel who have been temporarily called to active duty in connection with ongoing combat

operations in Iraq and Afghanistan.

22

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From an active-duty end-strength of 2.18 million in FY1987, the high-water mark of the Reagan

defense buildup, active duty end-strength was reduced by about one-third across each of the

services during the drawdown of the early 1990s. Since the start of combat operations in

Afghanistan and Iraq, the end strength of the Army and Marine Corps rebounded to 562,400 and

202,100, respectively. Both goals have been met, three years earlier than had been planned

(Figure 5). In 2010, Congress authorized an additional, temporary increase in the Army’s active

duty strength, which is reflected in the FY2011 request for an Army end-strength of 569,400.

Figure 5. Authorized Active Duty End Strength, FY1987-FY2011

(end-strength levels in thousands)

2500

end-strength in thousands

2000

1500

1000

500

0

FY87

FY90

FY93

FY96

FY99

FY02

FY05

FY08

FY11

Air Force

607

567

450

388

371

359

360

330

332

Marine Corps

200

197

182

174

172

173

178

189

202

Navy

587

592

536

428

373

376

366

329

328

Army

781

764

599

495

480

480

502

525

569

Source: Office of the Undersecretary of Defense (Comptroller), National Defense Budget Estimates for FY2011

(“The Green Book”), Table 7-5, “Department of Defense Manpower,” pp. 217-18.

Notes: Data do not include temporary end strength authority of 30,000 for the Army and 9,000 for the Marine

Corps, in effect during the period FY2005-FY2009 nor additional temporary end strength authority of 22,000 for

the Army and 13,000 for the Marine Corps in effect during FY2009-FY2010.

Data for FY2011 are the Administration’s request.

Military Pay Raise

The budget included nearly $1 billion to give military personnel a 1.4 % raise in basic pay

effective January 1, 2011. This increase would equal the average increase in private-sector pay

and benefits as measured by the Labor Department’s Employment Cost Index (ECI), as required

by law.23 In addition, the Basic Allowance for Housing, a non-taxable cash payment to service

23

Title 37, United States Code, Section 1009.

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members who do not live in government-provided housing (which can add about 20% to a service

member’s basic pay), was scheduled to increase by 4.2% in FY2011.

In each year but one since FY2004, Congress has approved raises in military basic pay that were

0.5% higher than the ECI increase, on the grounds that military pay increases had lagged behind

civilian pay hikes during the 1980s.24

DOD officials contend that service members currently are better paid than 70% of private sector

workers with comparable experience and responsibility and that the $340 million it would cost to

provide the higher 1.9% raise across-the-board would provide more benefit to the department if it

were spent, instead, on reenlistment bonuses and special pays for military personnel in critical

specialties. Military advocacy groups insist, however, that service members need the higher

increase to close a “pay gap” between military personnel and their civilian peers.25

Don’t Ask, Don’t Tell

The FY2011 DOD funding bills provided a vehicle for legislative initiatives by supporters and

opponents of President Obama’s decision to revise a 1993 law26 and DOD regulations that, in

effect, bar from military service those who are openly homosexual. Under a compromise policy

reached in 1993, colloquially referred to as

Analysis of Issues Related to the ‘Don’t

“don’t ask, don’t tell,” service members are

Ask, Don’t Tell’ Policy

not to be asked about nor allowed to discuss

For

more

comprehensive

analyses of issues related to

their same-sex orientation.

legislation and DOD policy concerning service of openly

homosexual persons in the armed forces, see CRS

Reports CRS Report R40782, “Don’t Ask, Don’t Tell”:

Military Policy and the Law on Same-Sex Behavior, by (name

redacted), and CRS Report R40795, “Don’t Ask, Don’t

Tell”: A Legal Analysis, by (name redacted).

Some Members of Congress contend that the

presence in combat units of openly

homosexual personnel would undermine the

units’ cohesion and combat effectiveness.

Some critics oppose changing the current

policy while the tempo of deployments in Iraq and Afghanistan is imposing stress on the services.

Other legislators have called for immediate repeal of the 1993 law or, at least, a moratorium in the

discharge of service members for violating the don’t ask, don’t tell policy. Two bills introduced in

the 111th Congress would have repealed the law and replace it with a policy of nondiscrimination

on the basis of sexual orientation—H.R. 1283 and S. 3065.27

In his January 27, 2010, State of the Union Address, President Obama called for repealing the

1993 legislation and adopting a policy of nondiscrimination against persons with a same-sex

orientation. DOD launched a study, slated for completion by December 1, 2010, on how such a

change in law and policy would be implemented. Secretary Gates has opposed repeal of the 1993

law pending completion of that study. On March 25, 2010, he announced changes in the

department’s procedures for enforcement of the current law, providing that only a general or flag

officer would have the authority to initiate an investigation and separate someone who had

24

Congress did not increase the proposed pay raise in FY2007.

See CRS Report R41316, FY2011 National Defense Authorization Act: Selected Military Personnel Policy Issues,

coordinated by (name redacted).

26

Title 10, United States Code, Section 654.

27

CRS Report R40782, “Don’t Ask, Don’t Tell”: Military Policy and the Law on Same-Sex Behavior, by (name red

acted) and CRS Report R40795, “Don’t Ask, Don’t Tell”: A Legal Analysis, by (name redacted).

25

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engaged in homosexual conduct, and that third party information alleging homosexual conduct by

a service member must be given under oath.

In a May 24, 2010, letter to President Obama, Senators Carl Levin and Joseph I. Lieberman and

Representative Patrick J. Murphy proposed an amendment to the FY2011 Defense Authorization

Act that would repeal the 1993 legislation barring openly homosexual persons from military

service after (1) the current DOD review has been completed: and (2) the President, the Secretary

of Defense and the Chairman of the Joint Chiefs of Staff have certified to Congress that policies

and regulations have been prepared that would allow the repeal of the ban to be implemented in a

way that is, “consistent with the standards of military readiness, military effectiveness, unit

cohesion, and recruiting and retention of the armed forces.”28

In a letter responding to the three Members, then Office of Management and Budget Director

Peter R. Orzag said that, while the Administration would have preferred that congressional action

on the issue await completion of the current DOD study, the Administration “understands that

Congress has chosen to move forward with legislation now,” and that the Administration supports

the draft amendment.29

In a statement to reporters on May 25, 2010, DOD press spokesman Geoff Morrell reportedly

said:

Secretary Gates continues to believe that ideally, the [Defense Department] review should be

completed before there is any legislation to repeal the ‘don’t ask, don’t tell,’ law. With

Congress having indicated that is not possible, the secretary can accept the language in the

proposed amendment.30

On September 9, 2010, Federal Judge Virginia A. Phillips ruled that the 1993 law was

unconstitutional. One month later (on October 12, 2010), Judge Phillips enjoined DOD “from

enforcing or applying the ‘Don’t Ask, Don’t Tell’ Act.” On October 19, 2010, the Ninth Circuit

temporarily stayed Judge Phillips’ injunction while the court considers the stay for the rest of the

appeals process.

Two days later, on October 21, 2010, Under Secretary of Defense for Personnel Clifford Stanley

issued a memorandum stating that only five senior DOD officials would have the authority to

discharge service members for homosexual behavior as defined in the law.

Military Health Care Costs31

The FY2011 budget request included $50.7 billion for the DOD health care system that employs

85,000 military personnel and 53,000 civilian DOD employees. The system serves 9.5 million

28

Draft legislative amendment accessed on the White House Press Office website at

http://www.whitehouse.gov/sites/default/files/Lieberman_NDAA_DADT_Amendment.pdf.

29

Peter R. Orzag, letter to Senator Joseph I. Lieberman, accessed on the White House Press Office website at

http://www.whitehouse.gov/sites/default/files/Sen_Lieberman.pdf.

30

Donna Miles, “Gates Can Accept ‘Don’t Ask, Don’t Tell’ Amendment,” Armed Forces Press Service, May 25, 2010.

accessed at http://www.defense.gov/news/newsarticle.aspx?id=59321.

31

Prepared in collaboration with (name redacted), Analyst in Military Health Care Policy.

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eligible beneficiaries through 56 hospitals, 363 out-patient medical facilities, and 275 dental

clinics.

The system’s cost, which was $19 billion in FY2001, has more than doubled in the 10 years since

then. The cost of the medical program is projected by DOD to increase annually at a rate of 5-7%

through FY2015, when it is projected to account for 10% of the planned DOD budget.

In addition to the cost of general inflation and new developments in medical technology, DOD

officials attribute the steady increase in military health care costs to several factors, including:

•

an increase in the number of retirees using DOD’s TRICARE medical insurance

rather than other, less generous insurance plans for which they are eligible;

•

an increase in the frequency with which eligible beneficiaries use DOD medical

services;

•

legislatively mandated increases in benefits, such as expanded access to

TRICARE for reservists; and

•

no increase in fees and copayments for TRICARE beneficiaries since 1995, when

the program was created.

The Bush Administration’s DOD budget requests for FY2007, FY2008, and FY2009 proposed to

increase enrollment fees and copayment requirements for those TRICARE beneficiaries who

were not eligible for Medicare. Each year fee increases were proposed, Congress passed

legislation to prohibit them.32

Although the Obama Administration’s 2011 budget did not include any legislative proposals to

increase TRICARE annual fees or copayments, Secretary Gates stated in a February 1, 2010,

press conference, “We certainly would like to work with the Congress in figuring out a way to try

and bring some modest control to this program .... We absolutely want to take care of our men

and women in uniform and our retirees, but at some point, there has to be some reasonable

tradeoff between reasonable cost increases or premium increases or co-pays or something and the

cost of the program.”33

Procurement and R&D

The FY2011 request would have increased the total amount provided for development and

procurement of weapons and equipment from $184.9 billion in FY2010 to $189.0 billion in

FY2011. The proportion of the total DOD budget dedicated to procurement would have slightly

increased from 56% to 60%, while the proportion going to R&D would decline from 44% to

40%.

In part, that shift reflected the transition into production of some major programs that have had

relatively large R&D budgets in recent years, the largest of which is the F-35 Joint Strike Fighter.

32

CRS Report RS22402, Increases in Tricare Costs: Background and Options for Congress, by (name redacted); and

CRS Report R40711, FY2010 National Defense Authorization Act: Selected Military Personnel Policy Issues,

coordinated by (name redacted).

33

Department of Defense, “DoD News Briefing with Secretary Gates and Adm. Mullen from the Pentagon,” press

release, February 1, 2010, http://www.defense.gov/transcripts/transcript.aspx?transcriptid=4549.

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For that program, a total of $11.2 billion was appropriated in FY2010: $4.0 billion for R&D and

$7.2 billion for procurement. For FY2011, the total budget request was only slightly higher—

$11.2 billion—however that total includes $2.3 billion for R&D and $9.0 billion for

procurement.34

The Administration proposed few new cuts in major weapons programs beyond those it proposed

in its FY2010 DOD budget.35 But it reiterated two of the proposed cuts that Congress rejected in

2009.The FY2011 budget request included no funds either for production of additional C-17

wide-body cargo jets or for development of an alternate jet engine for the F-35. In 2009, when the

Obama Administration also requested no funding for either of those programs, Congress added

$2.5 billion to the FY2010 DOD funding bills for 10 C-17s and $465 million to continue work on

the alternate engine.

Army Combat Force Modernization Programs

Some Members of Congress have raised questions about the Army’s Brigade Combat Team

(BCT) Modernization program, intended to develop a new generation of ground combat

equipment, for which the Administration requested $3.2 billion in FY2011. One controversial

element of the program is the design of a proposed new Ground Combat Vehicle (GCV).

The BCT Modernization program replaced the Future Combat System (FCS) program, which had

been intended to develop a new generation of combat equipment to replace current systems, such

as the M-1 Abrams tank and the M-2 Bradley infantry fighting vehicle. By 2009, FCS involved

efforts to develop 14 manned and unmanned systems tied together by an extensive

communications and information network. On April 6, 2009, however, Secretary of Defense

Gates recommended cancelling the manned ground vehicle (MGV) component of FCS, which

was intended to field eight separate tracked combat vehicle variants built on a common chassis.

Secretary Gates said he acted because there were significant unanswered questions in the FCS

vehicle design strategy and because, despite some adjustments to the MGVs, the emerging

vehicles did not adequately reflect the lessons of counterinsurgency and close-quarters combat in

Iraq and Afghanistan.

In place of MGV, the Army launched the GCV program intended to field by 2015-2017 a family

of fighting vehicles based on mature technologies and designed to readily incorporate future

network capabilities. Another potential oversight question for Congress is whether the Army is

rushing the development of the GCV, thereby inviting undue risk that would set the stage for

another unsuccessful acquisition program.36

On August 25, 2010—after the two Armed Services committees had drafted their respective

versions of the FY2011 national defense authorization bill—the Army cancelled the existing

34

Figures do not add due to rounding.

Opposition to additional procurement of F-22 fighters was not an initiative of the Obama Administration. The

preceding Bush Administration had decided cap the number of F-22s at the 183 planes already funded. There was an

effort to add funding for additional F-22s to the FY2010 DOD appropriations bill, but the effort was dropped after

President Obama threatened to veto any bill funding additional F-22s. See CRS Report RL31673, Air Force F-22

Fighter Program: Background and Issues for Congress, by (name redacted).

36

CRS Report RL32888, Army Future Combat System (FCS) “Spin-Outs” and Ground Combat Vehicle (GCV):

Background and Issues for Congress, by (name redacted) and Nathan Jacob Lucas.

35

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competition for the GCV development contract and announced it was revising the performance

specifications the new vehicle would have to meet. The Army restarted the GCV competition on

November 30, 2010.

While the MGV component of FCS was terminated, other elements of the FCS program including

sensors, unmanned aerial and ground vehicles, and a modified FCS command and control

network were incorporated into the Army’s (BCT) Modernization program under which the

service plans to “spin out” the components, as they become available, to all 73 Army BCTs by

2025. According to the Government Accountability Office (GAO), the FCS components that the

Army plans to deploy under the “spin out” approach have not demonstrated their effectiveness in

field exercises.37

Navy Force Structure and Shipbuilding Plans38

The Navy’s proposed FY2011 budget requested funding for the procurement of nine new battle

force ships (i.e., ships that count against the 313-ship goal). The nine ships included two attack

submarines, two destroyers, two Littoral Combat Ships (LCSs), one amphibious assault ship, one

Mobile Landing Platform (MLP) ship (i.e., a maritime prepositioning ship), and one Joint High

Speed Vessel (JHSV). The Navy’s five-year (FY2011-FY2015) shipbuilding plan includes a total

of 50 new battle force ships, or an average of 10 per year. Of the 50 ships in the plan, half are

relatively inexpensive LCSs or JHSVs.

The Navy’s FY2011 30-year (FY2011-FY2040) shipbuilding plan includes 276 ships. The plan

does not include enough ships to fully support all elements of the 313-ship plan over the long run.

The Navy projects that implementing the 30-year plan would result in a fleet that grows from 284

ships in FY2011 to 315 ships in FY2020, reaches a peak of 320 ships in FY2024, drops below

313 ships in FY2027, declines to 288 ships in FY2032-FY2033, and then increases to 301 ships

in FY2039-FY2040. The Navy projects that the attack submarine and cruiser-destroyer forces

will drop substantially below required levels in the latter years of the 30-year plan.

The Navy estimates that executing the 30-year shipbuilding plan would require an average of

$15.9 billion per year in constant FY2010 dollars. A May 2010 Congressional Budget Office

(CBO) report estimates that the plan would require an average of $19.0 billion per year in

constant FY2010 dollars, or about 18% more than the Navy estimates. The CBO report states: “If

the Navy receives the same amount of funding for ship construction in the next 30 years as it has

over the past three decades—an average of about $15 billion a year in 2010 dollars—it will not be

able to afford all of the purchases in the 2011 plan.”39

Specific shipbuilding issues that were discussed at hearings on the Navy’s proposed FY2011

budget include the following:

37

U.S. Government Accountability Office, Defense Acquisitions: Opportunities Exist to Position Army's Ground Force

Modernization Effort for Success, GAO-10-406, March 2010.

38

Prepared in collaboration with Ronald O’Rourke, Specialist in Naval Affairs.

39

Congressional Budget Office, “An Analysis of the Navy’s Fiscal Year 2011 Shipbuilding Plan,” May 2010, p. vii.

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Next Generation Ballistic Missile Submarine SSBN(X)

The Navy is currently conducting development and design work on a planned class of 12 nextgeneration ballistic missile submarines, or SSBN(X)s,1 which the service wants to procure as

replacements for its current force of 14 Ohio-class ballistic missile submarines. The SSBN(X)

program, also known as the Ohio-class replacement program, received $497.4 million in research

and development funding in the Navy's FY2010 budget, and the Navy's FY2011 budget requested

an additional $672.3 million in research and development funding for the program. Navy plans to

call for procuring the first SSBN(X) in FY2019, with advance procurement funding for the boat

beginning in FY2015.

The Navy preliminarily estimates the procurement cost of each SSBN(X) at $6 billion to $7

billion in FY2010 dollars—a figure equivalent to roughly one-half of the Navy's budget each year

for procuring new ships. Some observers are concerned that the SSBN(X) program will

significantly compound the challenge the Navy faces in ensuring the affordability of its long-term

shipbuilding program. These observers are concerned that procuring 12 SSBN(X)s during the 15year period FY2019-FY2033, as called for in Navy plans, could lead to reductions in procurement

rates for other types of Navy ships during those years. The Navy's report on its 30-year (FY2011FY2040) shipbuilding plan states: "While the SSBN(X) is being procured, the Navy will be

limited in its ability to procure other ship classes." (See CRS Report R41129, Navy SSBN(X)

Ballistic Missile Submarine Program: Background and Issues for Congress, by (name r

edacted).)

Options for reducing the cost of the SSBN(X) program or its potential impact on other Navy

shipbuilding programs include procuring fewer than 12 SSBN(X)s; reducing the number of

submarine-launched ballistic missiles (SLBMs) to be carried by each SSBN(X); designing the

SSBN(X) to carry a smaller SLBM; stretching out the schedule for procuring SSBN(X)s and

making greater use of split funding (i.e., two-year incremental funding) in procuring them;

funding the procurement of SSBN(X)s in a part of the Department of Defense (DOD) budget

other than the Navy’s shipbuilding account; and increasing the Navy’s shipbuilding budget.

DDG-51 Destroyers and Ballistic Missile Defense

The FY2010 budget that the Navy submitted to Congress last year proposed ending procurement

of Zumwalt (DDG-1000) class destroyers at three ships and resuming procurement of Arleigh

Burke (DDG-51) class Aegis destroyers. Congress, as part of its action on the FY2010 defense

budget supported this proposal. The Navy’s FY2011 budget submission called for procuring two

DDG-51s in FY2011 and six more in FY2012-FY2015.

The Navy’s FY2011 budget also proposed terminating the Navy’s planned CG(X) cruiser

program as unaffordable. Rather than starting to procure CG(X)s around FY2017, as the Navy

had previously envisaged, the Navy is proposing to build an improved version of the DDG-51,

called the Flight III version, starting in FY2016. Navy plans thus call for procuring the current

version of the DDG-51, called the Flight IIA version, in FY2010-FY2015, followed by

procurement of Flight III DDG-51s starting in FY2016. Flight III DDG-51s are to carry a smaller

version of the new Air and Missile Defense Radar (AMDR) that was to be carried by the CG(X).

The Navy’s proposed FY2011 budget requested $228.4 million in research and development

funding for the AMDR.

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The Aegis ballistic missile defense (BMD) program, which is carried out by the Missile Defense

Agency (MDA) and the Navy, gives Navy Aegis cruisers and destroyers a capability for

conducting BMD operations. Under current MDA and Navy plans, the number of BMD-capable

Navy Aegis ships is scheduled to grow from 20 at the end of FY2010 to 38 at the end of FY2015.

Some observers are concerned—particularly following the Administration’s announcement of its

intention to use Aegis-BMD ships to defend Europe against potential ballistic missile attacks—

that demands from U.S. regional military commanders for BMD-capable Aegis ships are growing

faster than the number of BMD-capable Aegis ships. They are also concerned that demands from

U.S. regional military commanders for Aegis ships for conducting BMD operations could strain

the Navy’s ability to provide regional military commanders with Aegis ships for performing nonBMD missions.

The Aegis BMD program is funded mostly through MDA’s budget. The Navy’s budget provides

additional funding for BMD-related efforts. MDA’s proposed FY2011 budget requested a total of

$2,161.6 million for the Aegis BMD program. The Navy’s proposed FY2011 budget requested a

total of $457.0 million for BMD-related efforts. FY2011 issues for Congress included whether to

approve, reject, or modify the Navy’s proposal to develop the Flight III DDG-51 design and start

procuring it in FY2016, whether to approve, reject, or modify the FY2011 MDA and Navy

funding requests for the Aegis BMD program, and whether to provide MDA or the Navy with

additional direction concerning the program.

Littoral Combat Ship (LCS)

The FY2011 budget requested $1.59 billion to fund two of a planned force of 55 Littoral Combat

Ships (LCS), which are relatively small and inexpensive vessels (compared to other U.S.

warships) designed to operate in shallow water carrying interchangeable weapons modules that

would equip them either to fend off attacks by small boats, clear underwater minefields, or hunt

submarines. As initially planned, the Navy was to buy several copies of each of two quite

different versions of LCS designed by two industry teams—one led by Lockheed Martin, the

other by General Dynamics—before selecting one of the designs to comprise most of the LCS

fleet.

On September 16, 2009, the Navy accelerated its timetable for choosing between the two designs,

announcing it would select a single design to which all LCSs procured in FY2010 and subsequent

years would be built. Under this plan, the winning contractor would build 10 LCSs over the fiveyear period FY2010-FY2014, at a rate of two ships per year. The Navy would then hold a second

competition—open to all bidders other than the winning firm—to select a second shipyard to

build up to five additional LCSs to the same design in FY2012-FY2014 (one ship in FY2012, and

two ships per year in FY2013-FY2014). These two shipyards would then compete for contracts to

build LCSs procured in FY2015 and subsequent years.

On November 3, 2010, Navy officials announced that they were seeking approval from Congress

to pursue a different acquisition strategy, buying 10 ships from each of the competing industry

teams.40

40

http://www.navy.mil/search/display.asp?story_id=57007

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Aircraft Programs41

Fighter aircraft are a major component of U.S. military capability and account for a significant

portion of U.S. defense spending. In early 2009, the Air Force, Navy, and Marine Corps

collectively had an inventory of about 3,500 fighters. Because fighters built in large numbers

during the 1980s are nearing the end of their service lives, there is a concern that the services may

fall short of the number of planes needed because of budgetary limits on the rate at which

replacement fighters can be procured. Air Force officials in 2008 testimony projected an Air

Force fighter shortfall of up to 800 aircraft by 2024. Navy officials have projected a Navy-Marine

Corps strike fighter shortfall peaking at more than 100 aircraft, and possibly more than 200

aircraft, by about 2018.

A key issue for Congress regarding tactical aircraft is the overall affordability of DOD's plans for

modernizing the tactical aircraft force. The issue has been a concern in Congress and elsewhere

for many years, with some observers predicting that tactical aircraft modernization is heading for

an eventual budget "train wreck" as tactical aircraft acquisition plans collide with insufficient

amounts of funding available for tactical aircraft acquisition.42

F-35

The F-35 Joint Strike Fighter (JSF), being procured in different versions for the Air Force, Marine

Corps, and Navy, is the key to DOD’s tactical aircraft modernization plans, which call for

acquiring a total of 2,443 JSFs at an estimated total acquisition cost (as of December 31, 2009) of

about $238 billion in constant (i.e., inflation-adjusted) FY2002 dollars, or more than $300 billion

in current prices. The F-35 program is DOD's largest weapon procurement program in terms of

total estimated acquisition cost. Hundreds of additional F-35s are slated to be purchased by

several U.S. allies, eight of which are cost-sharing partners in the program.43

The Administration's FY2011 budget requested a total of $11.3 billion for the F-35 program,

including $2.5 billion in Air Force and Navy research and development funding and $8.8 billion

in Air Force and Navy procurement funding.44

Although the F-35 was conceived as a relatively affordable strike fighter, some observers are

concerned that in a situation of constrained DOD resources, F-35s might not be affordable in the

annual quantities planned by DOD, at least not without reducing funding for other DOD

programs. As the annual production rate of the F-35 increases, the program will require more than

$10 billion per year in acquisition funding at the same time that DOD will face other budgetary

challenges. Supporters of the F-35 might argue that, as a relatively affordable aircraft that can be

procured in similar, though not identical, versions for the Air Force, Marine Corps, and Navy, the

F-35 represents the most economical and cost-effective strategy for avoiding or mitigating such

shortfalls.

41

Prepared in collaboration with (name redacted), Specialist in Military Aviation.

CRS Report RL33543, Tactical Aircraft Modernization: Issues for Congress, by (name redacted).

43

CRS Report RL30563, F-35 Joint Strike Fighter (JSF) Program: Background and Issues for Congress, by (name red

acted).

44

Development and procurement of Marine Corps aircraft are funded through the Navy's budget.

42

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Defense: FY2011 Authorization and Appropriations

On October 18, 2010, the British government announced, as part of a far-reaching plan to reduce

its defense spending, that it would reduce the number of F-35s it planned to buy from the initially

planned 138 planes to as few as 40. Moreover, the British now plan to buy none of the verticaltakeoff version of the plane, designated the “B” model, of which Britain’s Royal Navy had been

slated to make the second-largest purchase, after the U.S. Marine Corps.45

F-35 Alternate Engine

For four successive years, Congress has rejected Administration proposals to terminate the

program to develop the General Electric/Rolls-Royce F136 engine as an alternative to the Pratt &

Whitney F135 engine that currently powers the F-35 Joint Strike Fighter (JSF). The

Administration's FY2011 budget submission again proposed to terminate the program.

Through FY2009, Congress has provided approximately $2.5 billion for the Joint Strike Fighter

alternate engine program. DOD has estimated that the program would need an additional $2.9

billion through 2017 to complete the development of the F136 engine.46 In a September 15, 2010,

letter to Senate Armed Services Committee Chairman Carl Levin, the GAO said that the DOD

estimate, “should be viewed as one point within a range of possible costs depending on the

factors and assumptions used, and not as an absolute amount.”47

Critics of the proposal to terminate the F136 alternate engine argue that termination was driven

more by immediate budget pressures on the department than the long-term pros and cons of the

F136 program. They argue that engine competition on the F-15 and F-16 programs saved money

and resulted in greater reliability. Some who applaud the proposed termination say that singlesource engine production contracts have been the norm, not the exception. Long-term engine

affordability, they claim, is best achieved by procuring engines through multiyear contracts from

a single source.

Cancelling the F136 engine poses questions on the operational risk—particularly of fleet

grounding—posed by having a single engine design and supplier. Additional issues include the

potential impact this termination might have on the U.S. defense industrial base and on U.S.

relations with key allied countries involved in the alternate engine program. Finally, eliminating

competitive market forces for DOD business worth billions of dollars may concern those who

seek efficiency from DOD’s acquisition system and raises the challenge of cost control in a

single-supplier environment.

Continuing F136 development raises issues of impact on the F-35 acquisition program, including

possible reduction of the numbers of F-35s that could be acquired if program funds are used for

the alternate engine. It also raises issues of the outyear costs and operational concerns stemming

from the requirement to support two different engines in the field.

45

Government of the United Kingdom, Securing Britain in and Age of Uncertainty: The Strategic Defense and Security

Review, October, 2010, pp. 22-23. Accessed at

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/documents/digitalasset/dg_191634.pdf.

46

CRS Report R41131, F-35 Alternate Engine Program: Background and Issues for Congress, by (name redacted).

47

U.S. Government Accountability Office, Joint Strike Fighter: Assessment of DOD's Funding Projection for the F136

Alternate Engine, GAO 10-1020R, September 15, 2010, p.2.

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KC-X

The Administration's proposed FY2011 defense budget requested $863.9 million in Air Force

research and development funding for its third attempt since 2003 to acquire a new fleet of midair refueling tankers, designated KC-X, that would replace its aging fleet of KC-135 tankers. An

initial effort, that involved leasing new tankers from Boeing, was blocked by Congress. A

subsequent competition pitted Boeing, which offered a tanker based on its 767 jetliner, against the

team of Northrop Grumman and the European Aeronautic Defense and Space Company (EADS),

which offered a tanker based on the EADS Airbus A330.

On February 24, 2010, the Department of Defense (DOD) released its Request for Proposals for a

program to build 179 new KC-X aerial refueling tankers for the Air Force, a contract valued at

roughly $35 billion.

Bidding closed on July 9, 2010, with three offerors submitting bids. The European Aeronautic

Defense and Space Company (EADS) offered a KC-X design based on the Airbus A330 airliner,

to be built in Mobile, AL. Boeing offered a KC-X design based on its 767 airliner, to be built in

Seattle, WA, and Wichita, KS. A team of the Ukranian airframe maker Antonov and U.S.

Aerospace offered a variant of the An-124 freighter, with production location uncertain; this bid

was excluded for arriving after the deadline, and the GAO subsequently denied U.S. Aerospace’s

protest of the exclusion.48

On February 24, 2011, DOD announced it would award the new tanker contract to Boeing. On

March 4, EADS announced it would not challenge that decision.

The KC-X acquisition program has been a subject of intense interest because of the dollar value

of the contract, the number of jobs it would create, the importance of tanker aircraft to U.S.

military operations, and because DOD's attempts to acquire a new tanker over the past several

years have been highly contentious. The history of those earlier attempts forms an important part

of the context for DOD's proposed new KC-X competition, particularly in terms of defining the

required capabilities for the KC-X, and designing and conducting a fair and transparent

competition.

Ballistic Missile Defense

The George W. Bush Administration had planned to deploy in Poland and the Czech Republic a

modified version of the land-based BMD system currently deployed in Alaska and California.

The Obama Administration dropped that plan in favor of the so-called Phased Adaptive Approach

(PAA), which calls for deploying BMD-capable Aegis ships (and, eventually, a relocatable, landbased version of the Aegis system and associated Standard missile) to defend Europe and,

eventually, the United States against potential ballistic missile attacks from Iran. The

Administration has said that similar BMD capabilities could be pursued in other regions such as

the Middle East and Northeast Asia.49

48

CRS Report RL34398, Air Force KC-46A Tanker Aircraft Program: Background and Issues for Congress, by

(name redacted).

49

For additional analysis, see CRS Report RL34051, Long-Range Ballistic Missile Defense in Europe, by (name reda

cted) and (name redacted).

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Defense: FY2011 Authorization and Appropriations

The Administration requested a total of $2.27 billion in FY2011 for programs associated with the

PAA, including $712 million for development efforts unique to PAA and an additional $1.56

billion to continue development and procurement of the Aegis ship-borne BMD system that

would be integral to PAA as well as other missile defense missions.

Military Construction50

The $18.7 billion requested in the FY2011 base budget for military construction and family

housing is nearly 20% lower than the corresponding appropriation for FY2010. Most of the

reduction is the result of a decline from $7.9 billion to $2.7 billion in the amount that is being

spent to build new facilities for units that are moving to new sites as a result of the 2005 Base

Realignment and Closure (BRAC) Commission. Most of that BRAC-related construction was

funded in earlier budgets, since the deadline for completing the moves is September 15, 2011.

In addition, the budget for military family housing dropped from $2.3 billion in FY2010 to $1.8

billion in the FY2011 request. According to DOD officials, this is a result of a policy, begun in

the late 1990s, of privatizing military family housing. The amounts appropriated for the Basic

Allowance for Housing paid to personnel who do not live in government furnished housing has

increased over the past decade, partly because more service members are paying rent to private

landlords and partly because of a policy decision that housing allowances (which are pegged to

regional home rental and utility costs) should cover a larger proportion of a service member’s

housing costs.

Aircraft Carrier Homeport

The FY2011 DOD bills provided a vehicle for those Members of Congress opposed to the Navy’s

plan to move to Mayport, FL, one of the five nuclear powered aircraft carriers currently

homeported in Norfolk, VA. The Department of Defense’s (DOD’s) final report on the 2010

Quadrennial Defense Review (QDR), released on February 1, 2010, endorses the Navy’s desire to

establish Mayport as a second Atlantic Fleet carrier home port. The report stated:

To mitigate the risk of a terrorist attack, accident, or natural disaster, the U.S. Navy will

homeport an East Coast carrier in Mayport, Florida.

Because all carriers currently in service are nuclear powered, such a move would require the

construction of new, specialized nuclear support facilities at the Mayport site, near Jacksonville.

In addition, such a move would shift from Norfolk to Mayport the local economic activity

associated with homeporting an aircraft carrier, which some sources estimate as being worth

hundreds of millions of dollars per year.51

Certain Members of Congress from Florida have expressed support for the proposal to homeport

an aircraft carrier at Mayport, endorsing the argument made by DOD and the Navy that the

benefits in terms of mitigating risks to the Navy’s Atlantic Fleet CVNs are worth the costs

associated with moving a CVN to Mayport, which the Navy estimates would total $589.7 million.

50

Prepared in collaboration with (name redacted), Specialist in National Defense.

CRS Report R40248, Navy Nuclear Aircraft Carrier (CVN) Homeporting at Mayport: Background and Issues for

Congress, by (name redacted).

51

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That total includes $46.3 million for dredging, which Congress approved in its action on the

FY2010 DOD budget, but with the proviso that it was not prejudging the issue of the carrier

homeport.

Certain Members of Congress from Virginia have expressed skepticism regarding, or opposition

to the proposal, arguing that the benefits in terms of mitigating risks to the Navy’s Atlantic Fleet

CVNs are questionable or uncertain, and that the funding needed to implement the proposal could

achieve greater benefits if it were spent on other Navy priorities.

Marine Corps Relocation to Guam

The Administration’s budget included $139 million for facilities on the U.S. territory of Guam, in

the western Pacific for use by 8,000 Marines, their families, and support personnel slated to move

to that island from the Japanese island of Okinawa. The planned move is the result of extensive

negotiations between the Departments of State and Defense and the Government of Japan. DOD

also plans to move additional military personnel to Guam from their current stations in the United

States. These relocations are expected to be completed by 2014-2016.

Guam is a mountainous island with an area roughly three times that of the District of Columbia,

and a population of about 178,000. Estimates of the permanent increase in population due to the

planned influx of military personnel, their families, DOD personnel, and supporting contractors

have ranged as high as 56,000. In addition, some analysts have estimated that as many as 25,000

temporary workers would be needed to build the planned facilities, a number amounting to 14%

of the population. These analysts question whether Guam’s current transportation, electrical and

utility grid could support such a surge in the island’s population.52

US CYBERCOM

The Administration’s budget supported the creation of the U.S. Cyber Command

(USCYBERCOM) as a component of the U.S. Strategic Command that is intended to centralize

command of DOD networks and to coordinate their protection and operation. The reorganization

of cyber forces began in October 2008 when Secretary Gates directed that the Joint Task Force

for Global Network Operations (JTF GNO), which was responsible for defending DOD’s global

information grid against cyber attack, be placed under the operational control of the Joint

Functional Component Command for Network Warfare (JFCC NW), which was responsible for

“offensive” information operations, including cyber attacks on adversaries. This integration into

one organization of responsibility for both offensive and defensive cyber operations marked a

departure from the historical segregation of those two capabilities.53 In June, 2009, Secretary

Gates took the consolidation of DOD cyber operations one step further, directing the U.S.

Strategic Command to establish U.S. Cyber Command as one of its components with

responsibility for both offensive and defensive cyber operations. The director of the National

52

See CRS Report RS22570, Guam: U.S. Defense Deployments, by (name redacted), and CRS Report R40731,Military

Construction, Veterans Affairs, and Related Agencies: FY2010 Appropriations, coordinated by (name redacted).

53

For background, see CRS Report RL31787, Information Operations, Cyberwarfare, and Cybersecurity: Capabilities

and Related Policy Issues, by (name redacted).

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Security Agency (NSA) was nominated to lead the new command while retaining the NSA

directorship.54

Some observers contend that co-locating offensive and defensive cyber capabilities represents the

militarization of cyberspace and that NSA involvement will impinge upon the privacy of civilian

information systems. Others maintain that centralized command will better organize and

standardize DOD cyber practices and operations and that the new command will be responsible

only for defending DOD networks, providing support for civil authorities upon request.

The Administration’s FY2011 budget request for Air Force Operations and Maintenance

reportedly included $139 million to stand up U.S. Cyber Command, an increase of approximately

$105 million above the FY2010 Cyber Command budget that would fund the lease of temporary

facilities and infrastructure at Ft. Meade, MD, where the organization is to be located.55

State Department Role in Security Assistance

Some elements of the FY2011 DOD budget request reflected what the Obama Administration

describes as an effort to “rebalance” the roles of DOD and the State Department in providing

foreign assistance, particularly security assistance. The FY2011 NDAA legislation does not

include two programs previously funded by DOD because the Administration requested these

controversial items in the Department of State budget:

•

The so-called “Section 1207” program to provide crisis reaction funding for

reconstruction, security and stabilization activities, that are up for funding in the

State Department/USAID Complex Crisis Fund ($100 million in the State

Department budget);56 and

•

The Pakistan Counterinsurgency Capability Fund, that is, the PCCF ($1.2 billion

in the State Department Budget).

In FY2012, the State Department also will take responsibility for Iraq police training. The DOD

budget request for FY2011 includes funding for the Iraq Security Forces Fund (ISSF), used for

Iraqi police training, even though the State Department FY2011 budget request also includes

police support funding for the FY2011 transition year.57 (Funding for the Afghanistan Security

Forces Fund (ASFF) to train the Afghan National Police remains in the DOD budget.)58

54

Cyber Command was officially activated by the Secretary of Defense on May 21, 2010, after the Senate confirmed

the nomination of NSA Director Lt. Gen. Keith B.Alexander to head the new command (while retaining his NSA post)

with the rank of General.

55

Officials in the U.S. Strategic Command have cited the figures that appear in the following article by DOD’s inhouse news service, however, CRS is unable to independently verify the actual numbers from DOD budget documents

with the exception of the approximately $105 million requested covering classified aspects of U.S. Cyber Command

standup. See, “Cybersecurity Seizes More Attention, Budget Dollars,” by John J. Kruzel, Armed Forces Press Services,

February 4, 2010, accessed at http://www.defense.gov/news/newsarticle.aspx?id=57871.

56

DOD funding was authorized by Section 1207 of P.L. 109-163 as amended.

57

The Administration’s supplemental appropriations request for FY2010 included $650 million to initiate this transfer.

For further analysis of the FY2010 request, see CRS Report R41232, FY2010 Supplemental for Wars, Disaster

Assistance, Haiti Relief, and Other Programs, coordinated by (name redacted).

58

For details on ISSF and ASFF funding, see CRS Report RL33110, The Cost of Iraq, Afghanistan, and Other Global

War on Terror Operations Since 9/11, by (name redacted).

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In its FY2011 budget request, the Department of State stated that the transfer of the Section 1207,

PCCF, and Iraqi police training will “begin to rebalance the roles between DOD and State.”59

Nevertheless, within weeks of the Administration’s release of its FY2011 budget request,

statements by some Pentagon officials seemed to call for DOD to maintain, if not expand, its

current role in security assistance. The Administration is engaged in an extensive interagency

review over the appropriate division of security assistance authorities, which the Senate Armed

Services Committee (SASC) took note of in the report accompanying its version of the FY2011

NDAA (S.Rept. 111-201), stating it “welcomes this review and looks forward to any proposals

for enhancing U.S. security assistance that result from this process.”

In a February 24, 2010, speech, Secretary of Defense Robert M. Gates said that advising and

mentoring foreign security forces is becoming a key military mission. He cited changes that the

armed forces are making in their own organization to facilitate their role in advising, training and

assisting partner nations. His remarks reflect recommendations contained in the February 8, 2010,

Quadrennial Defense Review (QDR) Report that called for all four armed services “to strengthen

and institutionalize” their capability to train and advise the security forces of partner nations.

Secretary Gates’ remarks were reinforced by a March 3, 2010, speech by Chairman of the Joint

Chiefs of Staff Admiral Mike Mullen, who urged that military power should not be considered the

last resort of the state, “but as potentially the best, first option” when combined with diplomacy

and other instruments of national power. Both Secretary Gates and Adm. Mullen, as well as the

QDR report, encouraged lawmakers to substantially bolster civilian capabilities to assist foreign

governments in preventing, containing, and recovering from conflict. All three described a new

relationship between defense and diplomacy, which “are no longer discrete choices … but must in

fact, complement one another throughout the messy process of international relations,“ according

to Chairman Mullen.

Consistent with this position, the Administration’s FY2011 DOD budget request leaves under

DOD’s control other controversial security assistance programs, notably the so-called “Section

1206” program to train and equip the security forces of other countries threatened by terrorists,

for which the budget included $489.5 million.60 The DOD budget also contains a funding request

for the Combating Terrorism Fellowship Program ($33.3 million), and two new DOD security

assistance programs created in FY2010: the Defense Institution Reform Initiative to promote the

institutional development of foreign defense ministries ($5.7 million); and a related program to

provide legal instruction to foreign military members and civilian government officials ($1.6

million). The FY2011 request also would launch a new program, the Stability Operations

Fellowship Program ($5.0 million), but Congress has turned down this proposal in the past.

While affirming in his February speech that the State Department should maintain the lead,

Secretary Gates described the current national security system as outmoded, with the roles of

defense and diplomacy designed for a different set of threats than those the United States faces

today. According to some defense experts, some Members have considered introducing

59

For additional analysis of the State Department funding request for these programs, see CRS Report R41228, State,

Foreign Operations, and Related Programs: FY2011 Budget and Appropriations, op.cit.

60

DOD funding for this program was authorized by Section 1206 of P.L. 109-163, as amended. For more information

on Section 1206 funding, see CRS Report RL32862, Peacekeeping/Stabilization and Conflict Transitions: Background

and Congressional Action on the Civilian Response/Reserve Corps and other Civilian Stabilization and Reconstruction

Capabilities, by (name redacted) .

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legislation based on one Gates’ proposal, a pooled fund for security assistance to which DOD,

State, and USAID contribute, but instead are awaiting the Administration’s own proposal.

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Bill-by-Bill Synopsis of Congressional Action to

Date

FY2011 National Defense Authorization Act (H.R. 5136, S. 3454,

H.R. 6523)

The version of the FY2011 National Defense Authorization Act passed May 28 by the House

(H.R. 5136; H.Rept. 111-491) would authorize $725.9 billion for DOD and other defense-related

activities, which is $2.7 million less than the Administration requested. The version of the bill

reported by the Senate Armed Services Committee on June 4, 2010, (S. 3454; S.Rept. 111-201),

would authorize $725.7 billion, a reduction of $240.7 million from the Administration’s request.

The Senate did not act on this version of bill, partly because of opposition to a provision that

would have repealed a 1993 law (10 U.S.C. 654) that, in effect, had barred from military service

those who are openly homosexual, establishing a policy colloquially referred to as “don’t ask,

don’t tell.” S. 3454 was set aside after the Senate, on December 9, 2010, rejected a motion to

invoke cloture on motion to begin consideration of the bill. The vote was 57-40 in favor of

invoking cloture, which would have required 60 “yea” votes.

Members of the House and Senate Armed Services Committees subsequently negotiated a

compromise version of the authorization bill (H.R. 6523), which dropped the provision relating to

the “don’t ask; don’t tell” policy which was cleared for the President on December 22, 2010, and

signed by the President on January 7, 2011 (P.L. 111-383).

As is customary, H.R. 6523 authorized lump-sum totals to be appropriated for each several dozen

appropriations accounts in the DOD and Energy Department budgets (Table 11). However,

neither the text of the bill nor the accompanying Joint Explanatory Statement61 included the

customary funding tables allocating those totals among specific programs.

Lump-sum Authorizations With No Program Detail in H.R. 6523

As enacted, the Ike Skelton National Defense Authorization Act for FY2011, H.R. 6523, does not include funding

details for specific procurement and R&D programs (in most cases), either in the text of the bill, or in the

accompanying Joint Explanatory Statement (Committee Print HASC No. 5). So, with a handful of exceptions, the final

version of the authorization bill does not authorize specific amounts for any acquisition program.

In following synopsis of action on the FY2011 authorization bill, funding levels requested by the Administration for

some programs and the levels approved for those programs by the House-passed and Senate committee-reported

versions of the authorization bill are included to provide context for other program-related actions incorporated in

the final version of the bill. Authorization levels requested and approved by the House-passed and Senate committeereported versions of the bill are presented in the Appendix.

61

The Joint Explanatory Statement, equivalent to a conference report, was published by the House Armed Services

Committee as a Committee print, “Joint Explanatory Statement of the Committees on Armed Srevices of the U.S.

Senate and House of Representatives on H.R. 6523, Ike Skelton National Defense Authorization Act for Fiscal Year

2011,” December 22, 2010, accessed at http://www.gpo.gov/fdsys/pkg/CPRT-111HPRT63160/pdf/CPRT111HPRT63160.pdf.

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Table 11. FY2011 National Defense Authorization Act (H.R. 5136, S. 3454, H.R. 6523)

(amounts in millions of dollars)

Administration

request

House-passed

(H.R. 5136)

Senate Armed

Services

Committee

reported

(S. 3454)

H.R. 6523

as enacted

(P.L. 111-383)

Procurement

111,377

111,246

111,751

110,433

Research and Development

76,131

76,473

76,799

76,587

Operation and Maintenance

167,879

167,620

168,224

168,151

Military Personnel

138,541

138,541

138,541

138,541

Other Authorizations

36,197

36,243

36,265

36,153

530,124

530,124

531,579

529,864

Military Construction,

14,209

14,649

14,197

13,653

Family Housing

1,823

1,823

1,823

1,823

Base Realignment and Closure (BRAC)

2,715

2,715

2,715

2,715

0

-441

0

0

Subtotal, Military Construction,

Base Budget

18,747

18,745

18,735

18,191

Total, DOD Base Budget

548,871

548,869

550,314

548,055

Division C: Department of Energy

Nuclear National Security Agency

(NNSA) and Other Authorizations

17,716

17,716

17,721

17,716

Total, National Defense Budget

Function (050), FY2011 Base Budget

566,587

566,585

568,034

565,892

FY2011 Overseas Contingency

Operations, DOD

159,336

159,335

157,648

158,750

Grand Total, FY2011 National

Defense

725,922

725,920

725,682

724,642

Division A: DOD Base Budget

(except Military Construction)

Subtotal, DOD Base Budget

(except MilCon)

Division B: Military Construction

(Base Budget)

General Reductions

Sources: House Armed Services Committee, Report on H.R. 5136, the National Defense Authorization Act for

FY2011 H.Rept. 111-491, pp. 4-13; Senate Armed Services Committee, Report on S. 3454, the National Defense

Authorization Act for FY2011, S.Rept. 111-201, pp. 5-9; House Armed Services Committee, Committee Print

HASC No. 5, “Ike Skelton National Defense Authorization Act for Fiscal Year 2011, Legislative Text and Joint

Explanatory Statement to Accompany H.R. 6523, Public Law 111-383.”

Following are highlights of H.R. 5136 as passed by the House, S. 3454 as reported by the Senate

Armed Services Committee, and the final version of the authorization bill, H.R. 6523 as enacted

(P.L. 111-383).

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Military Personnel Issues (Authorization)62

All three versions of the defense authorization bill would authorize, as requested, a total endstrength of 1.43 million members for the active-duty components of the four armed services. This

is an increase of 7,400 over the end-strength authorized for FY2010.

Military Compensation

The Senate committee bill and the final version authorized a 1.4% increase in military basic pay,

as requested by the Administration.The House-passed bill would have authorized a 1.9% raise

which, the committee said, would have added $380 million to the FY2011 military personnel

costs (Section 601).

The final bill did not include provisions in the House bill would have authorized (1) an increase

in the monthly allowance paid to married personnel who are separated from their families by

deployment, from $250 to $285 and (2) an increase in the monthly payments to personnel whose

assignments subject them to risk of hostile fire or imminent danger, from $225 to $260.

In its report to accompany S. 3454, the Senate Armed Services Committee directed the

Government Accountability Office (GAO) to assess DOD’s use of cash incentives to recruit and

retain highly qualified individuals into hard-to-fill specialties that are essential in wartime. In

particular, it directs GAO to review the process by which DOD identifies specialties for which

such incentives are offered. The Senate committee also directed GAO to assess the efficiency and

accuracy of the process by which DOD determines the size of the housing allowance paid to

service members assigned to any given base who do not occupy government-provided housing.

“Don’t Ask, Don’t Tell”

The final version of the FY2011 defense authorization act did not include a controversial

provision, included in both the House-passed and Senate committee-reported versions of the bill,

that would have repealed the 1993 legislation barring openly homosexual persons from military

service. Such a provision was enacted as a free-standing law (H.R. 2965, P.L. 111-321).

On May 27, 2011, the House had adopted by a vote of 234-194 an amendment to H.R. 5136 by

Representative Patrick Murphy that would repeal the 1993 legislation barring openly homosexual

persons from military service after (1) the current DOD review has been completed; and (2) the

President, the Secretary of Defense and the Chairman of the Joint Chiefs of Staff have certified to

Congress that policies and regulations have been prepared that would allow the repeal of the ban

to be implemented in a way that is, “consistent with the standards of military readiness, military

effectiveness, unit cohesion, and recruiting and retention of the armed forces.” This provision,

which was incorporated in the House bill as Section 536, was substantially the language that had

been agreed to in negotiations between proponents of repeal and Administration officials.

On June 1, 2010, the Senate Armed Services Committee voted 16-12 to include in S. 3454 a

substantially identical provision (Section 591). On September 21, 2010, the Senate voted on a

62

For background, see “Military Personnel,” pp. 17, ff. For appropriations action, see “Military Personnel and Medical

Care Issues (Appropriations)”, p. 52.

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motion to invoke cloture on debate over whether to begin consideration of the bill. During the

brief debate preceding that vote, Senator John McCain, the senior Republican member of the

Armed Services Committee, contended that Senate action on the bill was premature since DOD

had not yet concluded its review of the effects of repealing the “don’t ask, don’t tell” policy. The

motion to invoke cloture, which would have required 60 votes for adoption, failed on a vote of

56-43.

Abortions in Military Medical Facilities

The final version of the bill did not include a provision of the Senate committee version that

would have repealed an existing law that prohibits the use of any military facility to perform

abortion, with certain exceptions. This action would have allowed DOD to return to the policy it

followed in 1993-1995 of allowing military facilities to provide abortions using private funds.63

Although repeal has been advocated on the grounds that such an action would protect U.S.

service members stationed overseas, the Senate committee provision would have applied to all

DOD facilities, foreign and domestic.

Alternative Career Track for Officers

The enacted version of the authorization bill did not include a House-passed provision that would

have authorized a pilot program to assess the value of allowing a certain number of officers to

pursue a more varied range of mid-career educational programs and assignments outside of their

service for the sake of broadening their experience and strategic judgment. To allow for this

richer mixture of experience, participants would have been given leeway to skip or delay some of

the established requirements and deadlines for promotion and might be required to commit to a

longer-than-usual period of service (Section 661).

Sexual Assault

The original House-passed version of the bill included 28 provisions that would have enacted

many of the recommendations of a congressionally chartered DOD commission studying the

issue of sexual assault in the military.64 The enacted version of the bill included many of these

provisions (mostly with modifications) but not others.

The final version of the bill establishes in law the position of director of DOD’s Sexual Assault

Response and Prevention office, but without the additional requirement in the House-passed bill

that the job be held by a flag or general officer or a civil servant of comparable rank. It also

requires that DOD establish improved protocols for the medical care of military personnel and

their dependents who are sexual assault victims, and it guarantees that such victims have access to

victim advocates.

H.R. 6523 does not include provisions of the original House-passed bill that would have

guaranteed the confidentiality of victims’ communications with victim advocates. Nor does it

63

For additional analysis, see CRS Report 95-387, Abortion Services and Military Medical Facilities, by (name red

acted).

64

The commission was established by Section 576 of the Ronald W. Reagan National Defense Authorization Act for

FY2005 (H.R. 4200).

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include provisions of the original House bill that would have guaranteed such victims legal

assistance and required the establishment of a hotline for reporting sexual assaults. The bill does

require the Secretary of Defense to evaluate the feasibility of authorizing sexual assault victims to

receive assistance from military legal counsel.

Medical Care (Authorization)65

H.R. 6523, like both the House-passed and Senate committee-reported versions of the

authorization bill, would authorize substantially all of the Administration’s $50.7 billion budget

request for DOD’s health care program.

TRICARE Fee Limitation

Although the budget request did not include increases in TRICARE fees and pharmacy

copayments, which the Bush and Obama Administrations had recommended in prior years and

which Congress regularly had rejected, the House-passed H.R. 5136, the Senate Armed Services

Committee’s S. 3454 and the final enacted version of the authorization bill (H.R. 6523) each

contain provisions similar to those Congress had enacted in earlier years prohibiting any increase

in TRICARE fees and pharmacy copayments.66

All three versions of the bill allow TRICARE beneficiaries to extend coverage to their dependent

children up to age 26, an option made available to beneficiaries of private health insurance

programs under the Patient Protection and Affordable Care Act (P.L. 111-148), the health care

reform bill enacted in April 2010 (Section 702).

The enacted version of the bill did not include a House provision that would have authorized the

President, through the Secretary of Defense, to establish a unified medical command (Section

903) under the Assistant Secretary of Defense for Health Affairs and a new Defense Health

Agency to administer the TRICARE program.

Fort Hood Shooting Incident

H.R. 6523, as enacted, included a modified version of a House-passed provision requiring the

Secretary of Defense to ensure that the training programs for officers in the services’ medical

corps properly document their academic and military performance. The provision was a response

to a November 2009 incident at Fort Hood, TX, in November 2009 in which an Army psychiatrist

allegedly opened fire on troops preparing for deployment to Iraq. There were allegations that the

supposed perpetrator had a record of substandard and erratic performance.

The final version of the authorization bill did not include two other provisions of the Housepassed H.R. 5136 that were intended to deal with the causes and consequences of the incident at

Fort Hood and another one at a recruiting station in Little Rock, AR, on June 1, 2009, in which

65

For background, see “Military Health Care Costs”, pp. 20 ff. For appropriations action, see “Military Personnel and

Medical Care Issues (Appropriations),” p. 52.

66

The relevant provisions are numbered Section 701 both in the House bill and in the Senate committee bill. For

background see “Military Health Care Costs,” above.

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service members and DOD civilians were killed or wounded in terrorist attacks. The House

provision not included in the final bill would have:

•

provided special compensation to persons killed or wounded in those two

incidents or in any other incident subsequent to November 6, 2009, in which

service members or DOD civilians were targeted because of their affiliation with

the U.S. military (Section 619). These individuals would be awarded the same

compensation as DOD personnel killed or wounded in a combat zone.

•

required the Secretary of Defense to earmark up to $100 million in a fund to

implement recommendations of a panel that had been set up by DOD to analyze

the Fort Hood incident.67

Ballistic Missile Defense, Strategic Weapons, and the New START Treaty

(Authorization)68

Both the bill passed by the House and the one reported by the Senate committee generally

supported the Administration’s ballistic missile defense (BMD) activities, including its plan for

defending U.S. troops and allies in Europe against ballistic missiles attacks from Iran. Both bills

would have authorized slightly more than the $10.3 billion requested for missile defense, with

H.R. 5136 adding $361.6 million and the Senate committee’s S. 3454 adding $349.1 million.

Consistent with both the House-passed and Senate committee bills, H.R. 6523 specifically

authorized $205 million to continue development of Israel’s “Iron Dome” system, which is

intended to intercept short-range bombardment rockets and artillery shells. DOD had requested

the funds after the FY2011 budget request was sent to Congress.

Except for the funding for “Iron Dome,” neither H.R. 6523 as enacted nor its accompanying

explanatory statement allocates among specific programs the lump-sums authorized for each

appropriations account. Thus, the bill does not authorize any identifiable total for the set of

programs that comprise the Administration’s missile defense plan. Funding levels that would have

been authorized for specific missile defense programs by H.R. 5136 and S. 3454 are presented in

Table A-2.

Like the House-passed and Senate committee versions of the bill, H.R. 6523 include a provision

affirming that the strategic arms reduction treaty with the Russian Federation (dubbed “New

START), which the Senate approved on December 22, 2010, would not restrict U.S. missile

defense programs. Some Russian sources have asserted that the Administration’s plan for

defending Europe against long-range ballistic missiles would undermine the treaty.69

67

An independent panel, established by the Secretary of Defense to review the incident, issued its report, “Protecting

the Force: Lessons from Fort Hood,” in January 2010. The report was accessed at

http://www.defense.gov/pubs/pdfs/DOD-ProtectingTheForce-Web_Security_HR_13Jan10.pdf on September 15, 2010.

68

For background, see “Ballistic Missile Defense”, p. 28. For appropriations action, see “Missile Defense and Strategic

Strike (Appropriations)”, p. 52.

69

For background, see CRS Report R41251, Ballistic Missile Defense and Offensive Arms Reductions: A Review of the

Historical Record, by (name redacted) and (name redacted) and CRS Report R41219, The New START Treaty:

Central Limits and Key Provisions, by (name redacted).

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Phased Adaptive Approach (Missile Defense for Europe) and Arms Control

The Administration requested a total of $2.27 billion in FY2011 for programs associated with its

so-called “Phased Adaptive Approach” (PAA) for defending Europe against long-range ballistic

missiles. The budget requested $712 million for development efforts unique to PAA and an

additional $1.56 billion to continue development and procurement of the Aegis ship-borne BMD

system that would be integral to PAA as well as other missile defense missions.

The final version of the authorization bill requires a DOD report on the PAA. It also would place

restrictions on the PAA similar to those that Congress previously had applied to the Bush plan,

namely:

•

It limits deployment in Europe of defenses against medium-range and long-range

missiles until the Secretary of Defense certifies that the proposed technology is

operationally effective, based on realistic flight tests; and

•

It limits the use of funds for BMD deployments in any country until the host

government has ratified any necessary agreements and until 45 days after

Congress has received a report on alternative BMD systems for Europe required

by the FY2010 National Defense Authorization Act (P.L. 111-84).

Unlike the House-passed bill, which included similar restrictions on the PAA, H.R. 6523 allows

the Secretary of Defense to waive the two provisions in the interest of national security.

The final version of the bill also includes a provision authorizing the establishment of a shared

ballistic missile early warning system with the Czech Republic. The Administration had requested

the authorization in May 2010, too late to be included in either H.R. 5136 or S. 3454.

In addition, the final version declared as the sense of Congress several propositions that the

House-passed and Senate committee versions also had endorsed, either as statements of national

policy or as expressions of the sense of Congress. Among these were statements that:

•

a future version of the Standard missile be able to intercept Iranian ICBMs aimed

at U.S. territory;

•

DOD should continue development of the two-stage ground-based interceptor, as

hedge against potential technical challenges with the Standard missile; and

•

PAA is not intended to diminish strategic stability with the Russian Federation.

The final version of the authorization bill does not include provisions in the House bill that would

have:

•

barred the reduction of U.S. nuclear weapons below the limits set by the New

START Treaty until 180 days after the Secretary of Defense and the

Administrator for Nuclear Security of the Nuclear National Security

Administration of the Department of Energy submit to Congress a joint report

justifying the proposed cuts in detail (Section 1058), and

•

expressed the sense of Congress that the Administration’s Nuclear Posture

Review, published April 6, 2010, weakens U.S. security by foreswearing the

option of using nuclear weapons to retaliate for a catastrophic attack on the

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United States by a non-nuclear-armed state using chemical or biological

weapons.70

Shipbuilding (Authorization)71

The final version of the authorization bill, like the House-passed and Senate committee versions,

approved the $15.7 billion requested for Navy shipbuilding. Although H.R. 6523 did not allocate

that amount among specific programs, the budget request included funding for two DDG-51

Aegis destroyers ($2.92 billion), two Virginia-class attack submarines ($3.44 billion), two Littoral

Combat Ships ($1.23 billion), a high-speed troop and cargo carrier designated an “intratheater

connector” ($180.7 million), an oceanographic research ship ($88.6 million). The request also

included the fourth and final increment of funding for the nuclear-powered aircraft carrier U.S.S.

Gerald R. Ford ($1.73 billion), the first of two increments for an LHA-class helicopter carrier to

support amphibious landings ($949.9 million), and the third increment of funding for refueling

and overhauling the nuclear-powered carrier U.S.S. Theodore Roosevelt ($1.26 billion).72

Incremental Funding of Major Warships

Although incremental funding has become the norm in recent years for very expensive ships,

including aircraft carriers and large amphibious assault ships, it is an anomaly in the

congressional appropriations process that, with a few exceptions, requires that the full cost of a

73

weapons system be budgeted in one year. Existing law allows aircraft carriers to be

incrementally funded (for up to four years) and H.R. 6523 includes a provision that would allow a

helicopter carrier (LHA-7) to be funded over two years. A provision of the House-passed bill

would have provided a general exception to the “full funding” rule for large amphibious assault

ships.

Fleet Size

H.R. 6523 included a provision requiring a report on how the Navy’s shipbuilding requirements

could be affected by the Administration’s plan to use cruisers and destroyers equipped with the

Aegis anti-missile system to provide anti-ballistic missile protection for various regions. It

directed DOD to report its plans for regional BMD deployments inasmuch as the demand for

Aegis missile-defense ships is expected to exceed the supply for some time to come.

The final version of the authorization bill did not include two other provisions from the Housepassed bill that were intended to prevent a decline in the size of the fleet. One of those House

provisions would have blocked the planned retirement of two large helicopter carriers until their

replacements are in service; The other would have barred the Navy from retiring more than two

70

See Department of Defense, Nuclear Posture Review Report, April 6, 2010, at

http://www.defense.gov/npr/docs/2010%20Nuclear%20Posture%20Review%20Report.pdf.

71

For background, see “Navy Force Structure and Shipbuilding Plans”, pp. 23 ff.

72

For several ships that would receive the bulk of their funding in the FY2011 budget, so-called “long-lead” funding

totaling as much as several hundred million dollars has been provided in earlier budgets to buy components needed in

the early stages of construction. Similarly, the $15.7 billion requested for shipbuilding in FY2011 includes more than

$3 billion in long-lead funding for ships slated to receive most of their funding in future budgets.

73

See CRS Report RL31404, Defense Procurement: Full Funding Policy—Background, Issues, and Options for

Congress, by (name redacted) and (name redacted).

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ships for every three new vessels commissioned (except for submarines), until the size of the fleet

reaches the Navy’s current goal of 313 ships.

In its report to accompany S. 3454, the Senate committee said that the Navy’s projected

shipbuilding schedule was overly optimistic but, even so, would not purchase enough ships to

sustain the array of commercial shipyards on which DOD relies for the construction of new ships.

The committee directed the Secretary of Defense and the Congressional Budget Office each to

conduct a formal assessment of how the Navy’s plans for building new ships and retiring existing

ones would affect the Marine Corps’s ability to conduct major amphibious landings. Navy and

Marine Corps leaders have agreed that, while a fleet of 38 amphibious landing ships would be the

ideal number to support two brigade-sized assault landings, the 33 ships contemplated by the

Navy’s most recent long-range shipbuilding plan would be adequate. But the Senate committee

said that cost increases and construction delays might make it impossible to reach the reduced

goal of 33 amphibious ships.

Ballistic Missile Submarines

The final version of the FY2011 defense authorization bill included no language relating to the

Navy’s plan to replace its 14 Ohio-class ballistic missile submarines with a new class of

submarines which would be large enough to carry the Trident II (D-5) missile carried by the

current class. Because of their expense, these new ships, designated SSBN(X), are expected to

absorb a large share of the Navy’s shipbuilding budgets after 2016, possibly crowding out the

74

construction of other planned ships.

The House-passed and Senate committee reported versions of the authorization bill would have

approved the $672.3 million requested for SSBN(X) development in FY2011, but the final

version of the bill approves only a lump-sum authorization for Navy R&D without allocating that

total among specific programs. The final version of the bill did not include a House-passed

provision that would have barred the Navy from obligating more than half of the money until the

Secretary of Defense submits a report including certain information about the program.

Aircraft (Authorization)75

Neither the House-passed nor the Senate committee-reported bill would have authorized funds to

continue production of the C-17 wide-body cargo jet, for which the Administration requested no

funds. Over the objections of the Bush and Obama Administrations, Congress had added funds to

the FY2009 and FY2010 budgets to continue C-17 production. The Administration has warned

that any bill funding production of additional C-17s would be vetoed.

F-35 Joint Strike Fighter and Alternate Engine

The Armed Services committees of the Senate and House each had decried cost overruns in the F35 Joint Strike Fighter program and delays in its flight test program. As enacted, the authorization

bill included a Senate committee provision requiring DOD to create a detailed plan by which

74

See CRS Report R41129, Navy SSBN(X) Ballistic Missile Submarine Program: Background and Issues for

Congress, by (name redacted).

75

For background, see “Aircraft Programs,” pp. 26 ff. For appropriations action, see “Aircraft (Appropriations)”, p. 53.

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Congress could assess the ongoing progress of the F-35 development program. The final bill did

not include a House provision that would have limited the number of F-35s procured in FY2011

until DOD certified that the program has met several cost and performance milestones.

Both the House-passed and Senate committee-approved versions of the bill would have

authorized a total of $11 billion to continue development of the F-35 aircraft and purchase 42

planes. Both bills also rejected a request for one additional F-35 ($205 million) that would have

been authorized in the part of the bill dealing with war costs. The Administration’s rationale for

this additional plane was that it was to replace a fighter that was lost during the currently ongoing

combat operations. In its report on H.R. 5136, the House Armed Services Committee noted that

the Air Force could replace the lost aircraft by continuing to operate another fighter of the same

type slated for retirement.

The House-passed bill would have added to the budget $485 million to continue development of

an alternate jet engine for the F-35. The Senate committee’s bill would not have provided

additional funds for the second engine. The enacted version of the bill takes no specific position

on the additional funding.

The final bill did not include a Senate committee provision that would have barred the

expenditure of any additional funds for the alternate engine unless the Secretary of Defense

certified that that project would reduce the life-cycle cost and improve the operational readiness

of the F-35 fleet while neither disrupting the plane’s development program nor resulting in a

reduction in the number of planes purchased.

In a May 20, 2010, Pentagon press conference, Secretary Gates reaffirmed his intention to

recommend that President Obama veto any defense bill that funded the alternate F-35 engine. He

also said that the detailed requirements the committee bill placed on the F-35 test program and

production schedule would make the program “unexecutable.”76

F/A-18E/F

The House and Senate Armed Services Committees each contend that the Navy’s planned aircraft

procurement budgets would result in an unwise drop in the number of carrier-borne fighters

because delays in the F-35 program mean that older F/A-18s will be retired before the planes

meant to replace them are in service. To bridge this, so-called “strike fighter gap,” both the

House-passed bill and the Senate committee-reported bill would have added funding for

additional F/A-18E/F model fighters. Because the enacted bill does not allocate authorization

totals among specific programs, it does not authorize any specific number of the planes.

The enacted bill also includes a modified version of a Senate committee provision requiring the

Navy to report to Congress on the cost and risks of dealing with the projected strike fighter gap

either by extending the service life of F/A-18s currently in service or by reducing the number of

planes in certain F/A-18 squadrons.

76

May 20, 2010, DOD press conference accessed at

http://www.defense.gov/transcripts/transcript.aspx?transcriptid=4625.

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KC-X

The House-passed and Senate committee-reported bills each would authorize, as requested,

$863.9 million to continue development of the KC-X mid-air refueling tanker. France-based

EADS proposed a tanker based on its Airbus A-330 to compete with a Boeing bid based on its

767 jetliner.

By a vote of 410-8, the House adopted an amendment to H.R. 5136 (Section 839) that would

require DOD to take into account, when considering bids for the KC-X tanker, “any unfair

competitive advantage that an offeror may possess,” and to submit a report on such advantages to

Congress. The provision defines an “unfair competitive advantage” as “a situation in which the

cost of development, production, or manufacturing is not fully borne by the offeror for such

contract.” Several House Members speaking in support of the amendment indicated that it was

based on a finding by the World Trade Organization that France-based EADS had received

government subsidies for its commercial airliners that might give it an unfair advantage when

bidding on KC-X. However, the amendment was supported by many avowed supporters of both

planes. The provision was not included in H.R. 6523.

On February 24, 2011, DOD announced it had selected Boeing’s tanker design, which is

designated the KC-46A. On March 4, 2011, EADS announced it would not challenge Boeing’s

selection.

Ground Combat Vehicle and Brigade Combat Team Modernization

(Authorization)77

Both H.R. 5136 as passed by the House and S. 3454 as reported by the Senate Armed Services

Committee would deny authorization for part of the $3.19 billion requested by the Army for its

Brigade Combat Team (BCT) Modernization program, which is the successor to the service’s

Future Combat Systems (FCS) program. FCS was an effort to develop an array of digitally linked

manned and unmanned vehicles which Secretary Gates terminated in 2009 on grounds that it was

too complex and too expensive.

The House-passed and Senate committee-recommended versions of the authorization bill both

would have denied $431.8 billion requested for the Non-Line of Sight (N-LOS) missile program,

which DOD cancelled after the FY2011 budget was submitted. However, the House bill went

considerably further in trimming back the Army’s plan, cutting an additional $347.4 million from

the total BCT Modernization request, whereas the Senate committee cut the request by only $29.7

million beyond the N-LOS reduction.

The enacted version of the authorization did not allocate a specific funding level to the projects

comprising the BCT program.

The House-passed and Senate committee-recommended bills each would have authorized the

$934.4 million requested as part of the BCT Modernization program to develop a new family of

Ground Combat Vehicles (GCV). In its report on H.R. 5136, the House Armed Services

Committee urged the Army to take a less technologically ambitious approach with the new

77

For background, see “Army Combat Force Modernization Programs,” p. 21. For appropriations action, see “Ground

Combat Vehicles (Appropriations)”, p. 53.

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combat vehicle program. It urged the Army to focus on developing vehicles that could meet basic

requirements and be upgraded later. The panel also said that the Army should consider whether its

current fleet of combat vehicles could be upgraded to meet the basic GCV requirements. It

included in the bill a provision that would allow the Army to spend only half of the FY2011 GCV

appropriation until the service provides the committee with a detailed analysis of its plans for

developing the new fleet of vehicles.

Subsequently, DOD reduced its FY2011 GCV funding request to $461 million. While the enacted

version of the authorization bill includes no details on funding for individual programs such as

GCV, the House Armed Services Committee’s press release on the enacted bill said H.R. 6523

“fully funds the Administration’s adjusted request of $461 million.”78

Military Construction: Carrier Homeport and Guam (Authorization)79

The enacted version of the authorization bill did not include a House provision that would have

barred the use of any funds authorized by the bill to plan and design structures at the Naval

Station in Mayport, FL, to homeport a nuclear-powered aircraft carrier. In its report

accompanying the House-passed version of the bill, the House Armed Services Committee

directed the GAO to conduct an assessment of the direct and indirect costs of homeporting a

carrier in Mayport. The House committee also directed the Navy to report on the cost and benefits

of various other options for using the Mayport naval facilities, including the stationing of nonnuclear powered ships.

H.R. 6523 authorized $176.0 billion of the $566.2 billion requested for military construction on

Guam, with most of the reduction coming from the $426.9 million directly related to the planned

redeployment to Guam of Marine Corps units currently stationed in the Japanese Prefecture of

Okinawa. Like the Senate committee-reported version, the final bill approved funds requested to

improve access roads and wharves for Guam’s harbor, but denied funding to begin construction

on the island of a Marine base and facilities for Marine aviation squadrons.

In addition, the final version of the bill did not authorize $70.0 million requested to replace

Guam’s military hospital. It did authorize, as requested, $50.3 million for Air Force projects

related to DOD's global repositioning of forces and $19.0 million for construction of a new

National Guard Readiness Center.

The final version of the bill did not include a House provision that would have authorized the

Secretary of Defense to "assist the Government of Guam in meeting the costs of providing

increased municipal services and facilities required as a result of the realignment" by transferring

up to $500 million of appropriated DOD operation and maintenance funds to any existing federal

program available to Guam.

H.R. 6523 also requires the Secretary of Defense to report to Congress on the military facilities

needed to support force redeployment, and a report by the Secretary of the Interior assessing the

78

House Armed Services Committee press release: “H.R. 6523, National Defense Authorization Act for Fiscal Year

2011.”

79

For background, see “Military Construction,” pp. 29-30. For appropriations action, see CRS Report R41345, Military

Construction, Veterans Affairs, and Related Agencies: FY2011 Appropriations, by (name redacted), (name redacted), and

(name redacted).

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civil infrastructure improvements that will be needed to serve both the permanent increase in

population because of the re-stationed combat forces and the temporary surge caused by

construction workers preparing the new facilities.

Guantanamo Bay Detainee Issues

As the House-passed version of the bill would have done, H.R. 6523 bars the use of funds

authorized by the bill to transfer to or release into U.S. territory any detainee currently held in the

U.S. facility at Guantanamo Bay, Cuba. It also would prohibit the use of DOD funds to transfer

any Guantanamo Bay detainee to the custody of any foreign government unless the Secretary of

Defense certifies to Congress that certain conditions are met that are intended to minimize the

risk that the detainee would be released.

Unlike the House-passed and Senate committee-approved versions of the bill, the final version

waives those two restrictions in cases in which a competent court or military tribunal orders a

detainee’s transfer.

H.R. 6523 also bars the use of funds authorized by the bill to build or modify at any other

location facilities to house detainees currently at Guantanamo Bay. It requires the Secretary of

Defense to report to Congress on the costs, benefits and risks of transferring Guantanamo

detainees to any alternative site.

Security Assistance and the State Department (Authorization)80

For the so-called “Global Train and Equip” program, also known as the “Section 1206 program,”

the Administration’s DOD appropriations request for FY2011 was $489.5 million.

This would have required an amendment to existing law, which limits to $350 million the annual

appropriation for the Section 1206 program.

The House-passed version of the authorization bill would have (1) authorized the requested

appropriation, (2) increased the Section 1206 funding ceiling to $500 million, and 3) extended

authorization for the program, which currently is set to expire at the end of FY2011, through

FY2012.

The House bill also would have required DOD to transfer $75 million to the Secretary of State to

build the counterterrorism forces of the Yemeni Ministry of Interior, provided the Secretary of

State can certify by July 31, 2011, that the State Department is able to effectively provide that

assistance. The bill provided that, if the Secretary of State could not issue the certification,81 the

Secretary of Defense would have discretion to provide the funds for the Yemen project subject to

the concurrence of the Secretary of State and other Section 1206 procedures. In its report on the

bill, the House Armed Services Committee signaled the importance it attached to this funding by,

80

For background, see “State Department Role in Security Assistance”, pp. 31-ff.

Because the State Department’s 10th annual Trafficking in Persons Report, released June 14, 2010, identifies Yemen

as a country that recruits and uses children in governmental armed forces, Section 1206 funding to Yemen may be cut

for FY2011 under provisions of the Child Soldiers Prevention Act of 2008 (P.L. 110-457, Title IV), absent a

presidential national interest waiver, applicable exception, or a reinstatement of assistance. U.S. Department of State,

Trafficking in Persons Report: 10th Edition, June 2010, p. 10, http://www.state.gov/documents/organization/1429.

81

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recognizing Yemen as a “strategic partner” in combating Al Qaeda in the Arabian Peninsula. This

provision would have expanded the scope of the Section 1206 program which, under existing law,

can be spent only to support national military forces, as opposed to police agencies oriented

toward domestic law enforcement.

The Senate committee-reported bill would not have increased the $350 million cap on Section

1206 funding and would have cut the Administration’s request to that level. However, the

committee bill also would have created a separate, stand-alone authority for the Secretary of

Defense, with the concurrence of the Secretary of State, to provide up to $75 million (from

FY2011 operations and maintenance funds) in assistance, including equipment, supplies, and

training, to the Yemen Ministry of the Interior counterterrorism unit “to conduct counterterrorism

operations against al Qaeda in the Arabian Peninsula and its affiliates.”

The final version of the authorization bill does not increase the $350 million ceiling on Section

1206 funding, as the Administration requested. However, it does authorize the additional $75

million for Yemeni Interior Ministry units, that was approved by the Senate committee.

The enacted version of the authorization bill also includes a provision, similar to one requested by

the Administration and included in the Senate committee bill, that authorizes the Secretary of

Defense to use up to $150 million of Army funds to enable the Task Force for Business and

Stability Operations in Afghanistan "to assist the commander of the United States Central

Command in developing a link between United States military operations in Afghanistan under

Operation Enduring Freedom and the economic elements of United States national power in order

to reduce violence, enhance stability, and restore economic normalcy in Afghanistan through

strategic business and economic activities." The specific intent of the projects would be

to "facilitate private investment, industrial development, banking and financial system

development, agricultural diversification and revitalization, and energy development in and with

respect to Afghanistan."

Cybersecurity (Authorization)82

As enacted, H.R. 6523 includes several provisions related to cybersecurity that are based on

provisions of the Senate committee-approved bill, modified in some cases. Among other things,

final version of the bill:

82

•

directs the Secretary of Defense to submit a report to Congress on the cyber

warfare policy of DoD, including legal, strategy and doctrinal issues;

•

requires DOD to develop a tailored acquisition process for cyberspace;

•

requires the Secretary of Defense to implement a policy of continuously

monitoring DOD computer networks to improve security and Federal

Information Security Management Act (FISMA) compliance and reporting; and

•

requires annual reports to Congress on the nature of damages caused by cyber

attacks, as well as net assessments of the cyberwar capabilities of the U.S. and

potential adversaries in order to determine whether the U.S. is making progress in

improving cybersecurity.

For background, see “US CYBERCOM”, pp. 30-31.

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The final version of the authorization bill did not include a House provision83 that would have

created a National Office for Cyberspace with government-wide responsibility for coordinating

agencies’ information security programs and security-related requirements for federal information

technology investments. The director of the new office, whose appointment would have required

Senate confirmation, would have been a member of the National Security Council.

FY2011 Congressional Budget Ceilings (“302b Allocations”)

The House and Senate did not agree on a FY2011 budget resolution that would have set a ceiling

on overall discretionary spending that the two Appropriations Committees could divide among

their subcommittees via so-called “302(b) allocations” to function as ceilings on each of the 12

annual appropriations bills. In the absence of a budget resolution, both committees operated under

spending caps that were adopted through other procedures.

On July 1, 2010, the House adopted a one-year cap on discretionary spending (H.Res. 1493)84

which the House Appropriations Committee used as the basis for setting 302(b) allocations for

each of its subcommittees (H.Rept. 111-565). For the Defense Subcommittee, the allocation was

$523.9 billion, which is $7 billion less than the Administration requested for DOD base budget

programs within the jurisdiction of that subcommittee.85

The Senate Budget Committee approved a FY2011 budget resolution (S.Con.Res. 60). However,

the resolution never was considered by the Senate, nor did the Senate adopt any overall ceiling on

FY2011 discretionary spending, as the House had done. On July 15, 2010, the Senate

Appropriations Committee adopted “discretionary guidance” for the amount that could be

appropriated by each of its subcommittees. For the Defense Subcommittee, the ceiling was

$522.8 billion, which is $8.1 billion less than the President’s request. (See Table 12.)

Table 12. FY2011 Appropriations Subcommittee Discretionary Spending Ceilings

(“302(b) Allocations”)

amounts in millions of dollars

President’s

Budget (CBO

reestimate)

First House

Subcommittee

Allocation

Second House

Subcommittee

Allocation

Senate

Subcommittee

Allocations

530,870

523,870

517,714

522,791

(change from budget)

n/a

-7,000

13,156

-8,079

Homeland Security

43,656

43,656

42,517

43,536

(change from budget)

n/a

0

1,139

0

Appropriations

Subcommittees

Defense

83

This provision was added to the House bill as a floor amendment, sponsored by Representatives Diane E. Watson

and Jim Langevin, which was based on provisions of H.R. 4900 and H.R. 5247. The amendment was incorporated into

one of several so-called en bloc amendments, each of which incorporated several non-controversial amendments and all

of which were agreed to by voice vote.

84

Such informal substitutes for a budget resolution are referred to as “deeming” resolutions.

85

This excludes the President’s $18.7 billion request for military construction, which is overseen by the Subcommittee

on Military Construction, Veterans Affairs, and Related Agencies. That subcommittee’s 302(b) allocation is $1 million

more than the $76.0 billion which, according to CBO, would be the cost of the President’s request for all the

discretionary programs funded by that agency. The 302(b) allocation does not identify a the DOD share of that total.

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Appropriations

Subcommittees

Military Construction/VA

(change from budget)

State Department, Foreign Ops

(change from budget)

Total, ‘Security’ Programs

(change from budget)

President’s

Budget (CBO

reestimate)

First House

Subcommittee

Allocation

Second House

Subcommittee

Allocation

Senate

Subcommittee

Allocations

75,997

75,998

74,682

75,996

n/a

+1

-1,315

-1

56,656

53,983

46,953

54,056

n/a

-2,673

-9,703

-2,600

707,159

697,487

681,866

696,479

n/a

-9,672

-25,293

-10,680

Source: Data for the CBO re-estimate of the President’s budget is from House Appropriations Committee

press release, “Appropriations Committee Approves 302(b) Allocations,” July 20, 2010. Data for the House

subcommittee allocations are from House Appropriations Committee, “Report on the Suballocation of Budget

Allocations for Fiscal Year 2011,” H.Rept. 111-565, July 26, 2010; Data for the Senate committee are Senate

Appropriations Committee press release, “FY2011 Subcommittee Spending Guidance,” July 15, 2010.

FY2011 Defense Appropriations Bill

On July 27, 2010, the House Defense Appropriations Subcommittee approved for consideration

by the full Appropriations Committee a FY2011 DOD Appropriations bill (unnumbered) that

would have provided a total of $671.0 billion. For the base budget, the bill would appropriate

$513.3 billion, a reduction of $7.0 billion from the President’s request, as required by the Defense

Subcommittee’s 302(b) allocation. For war costs, the subcommittee bill would have provided

$157.7 billion, a reduction of $253 million from the request.

The subcommittee did not make public the text of the bill, nor the lengthy explanatory report

detailing its specific recommendations. Other than a summary table listing the amount the bill

would provide for each appropriations account and a list of Member earmarks as required by

House rules, the only information about the substance of the bill was provided in a statement by

then subcommittee Chairman Representative Norm Dicks.86

On September 16, 2010, the Senate Appropriations Committee approved by a vote of 18-12 a

FY2011 DOD Appropriations bill (S. 3800)

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