Defense Budget for FY2002: An Overview of Bush Administration Plans and Key Issues for Congress

Congressional research reportMay 22, 2001

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Defense Budget for FY2002: An Overview of

Bush Administration Plans and

Key Issues For Congress

May 22, 2001

Stephen Daggett

Specialist in National Defense

Foreign Affairs, Defense, and Trade Division

Congressional Research Service ˜ The Library of Congress

Defense Budget for FY2002: An Overview of Bush

Administration Plans and Key Issues for Congress

Summary

Details of Bush Administration plans for the defense budget have been on hold

for several months as senior officials have undertaken a reassessment of defense

policy known as the “National Defense Review.” The initial Bush budget outline, A

Blueprint for New Beginnings, released on February 28, and the Administration’s

official FY2002 budget request, released on April 9, include $325 billion in new

budget authority for national defense in FY2002, but that total remains subject to

change as the defense review proceeds. Moreover, official Administration defense

budget projections beyond FY2002 simply reflect projected growth with inflation in

overall annual funding for national defense from FY2003 through FY2006 rather than

the results of any policy assessment.

Currently, the Administration plans to begin discussing the major conclusions of

its defense review late in May, and to provide additional budget details, at least on its

FY2002 defense plans, some time in June. Even then, however, Secretary of Defense

Rumsfeld has said that the reassessment process will constitute a “rolling review,” and

that further adjustments to the defense plan will be announced as they are decided.

It also remains unclear when plans for FY2003 and beyond will be determined and

what information about those plans will be provided publicly.

Though Congress has expressed some frustration with this process, it has also

accommodated the uncertainty by providing room for an unspecified increase in

defense spending in the FY2002 budget and in defense totals through FY2011. The

conference agreement on the FY2002 congressional budget resolution (H.Con.Res.

83), establishes a “strategic reserve” in the House that may include extra funds for

defense, and a specific defense “reserve fund” in the Senate. These reserve funds

permit the chairman of the budget committee in each chamber to increase allocations

of funds to the defense authorization and appropriations committees to accommodate

a higher defense request and to increased funding to the extent provided in annual

defense authorization and appropriations bills.

Meanwhile, virtually since the beginning of the year, there has been a debate in

Congress about the need for supplemental appropriations for defense for FY2001.

For its part, the White House initially set no timetable for submitting a FY2001

defense supplemental request and has provided little indication of the likely size of any

request. The conference agreement on the FY2002 congressional budget resolution

(H.Con.Res. 83) specifically sets aside $6.5 billion for FY2001 defense supplemental

appropriations, but additional funding may be provided as emergency appropriations.

Early congressional debate about the FY2002 defense budget – and future

budget trends – has focused heavily on two ongoing issues – the extent of “shortfalls”

in planned funding for major weapons programs and the meaning of a

“transformation” of U.S. defense capabilities.

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

The Status of Bush Administration Defense Plans . . . . . . . . . . . . . . . . . . . 1

Bush Administration Defense Budget

Projections and Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Defense Budget Proposals to Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Key Bush Defense Policy Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Congressional Action on Defense in the Budget Resolution . . . . . . . . . . . . 7

House Action on Defense in the Budget Resolution . . . . . . . . . . . . . . 7

Senate Action on Defense in the Budget Resolution . . . . . . . . . . . . . . 8

Conference Agreement on Defense in the Budget Resolution . . . . . . . 9

Long-Term Defense Funding: The “Defense Shortfalls” Debate . . . . . . . . . . . . 10

FY2001 Supplemental Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Defense Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

For Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Budget Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

“Shortfalls” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

CRS Publications on Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

List of Tables

Table 1: Bush Administration National Defense Budget Projections . . . . . . . . . . 4

Table 2: Clinton Administration Adjustments in Department of Defense

“Top-Line” Budget Authority (Discretionary Funding Only) . . . . . . . . . . . 5

Table 3: FY2002-FY2007 Clinton Administration Additions to

Department of Defense Top Line Budget Authority . . . . . . . . . . . . . . . . . . 5

Table 4: Congressional Budget Resolution – National Defense

Budget Function Alternatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Defense Budget Issues for FY2002: An

Overview of Bush Administration Plans and

Key Issues for Congress

Introduction

The Status of Bush Administration Defense Plans

Details of Bush Administration plans for the defense budget – for FY2002 and

particularly beyond – have been on hold for several months as senior officials have

undertaken a reassessment of defense policy known as the “National Defense Review”

or, less formally, as the “Top to Bottom Review.” The initial Bush budget outline,

A Blueprint for New Beginnings, released on February 28, and the Administration’s

official FY2002 budget request, released on April 9, include an amount for defense

in FY2002 – the April 9 budget requests $325 billion in new budget authority for the

national defense budget function. But that total remains subject to change as the

defense review proceeds.

Moreover, official Bush Administration defense budget projections beyond

FY2002 simply reflect projected growth with inflation in overall annual funding for

national defense from FY2003 through FY2006 rather than the results of any policy

assessment. So what we have to date is essentially a “placeholder” defense budget

for FY2002, and somewhat less than that for later years , to be filled in as the

Administration makes decisions and conveys more detailed program requests to

Congress.

Currently, the Administration plans to begin discussing the major conclusions of

its defense review late in May, and to provide additional details, at least on its

FY2002 defense plans, some time in June. Even then, however, Secretary of Defense

Rumsfeld has said that the reassessment process will constitute a “rolling review,” and

that further adjustments to the defense plan will be announced as they are decided.

So one prospect appears to be for the June plan to be followed by an as yet unknown

number of adjustments, presented to Congress either informally or as formal budget

amendments. It also remains unclear when plans for FY2003 and beyond will be

determined and what information will be provided publicly.

Though Congress has expressed some frustration with this process, it has also

accommodated the uncertainty by providing room for an unspecified increase in

defense spending in the FY2002 budget and in defense totals through FY2011. The

conference agreement on the FY2002 congressional budget resolution (H.Con.Res.

83), establishes a “strategic reserve” in the House that may include extra funds for

defense, and a specific defense “reserve fund” in the Senate. These reserve funds

permit the chairman of the budget committee in each chamber to increase allocations

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of funds to the defense authorization and appropriations committees to accommodate

a higher defense request and increased funding to the extent provided in annual

defense authorization and appropriations bills.

Meanwhile, virtually since the beginning of the year, there has been a debate in

Congress about the need for supplemental appropriations for defense for FY2001.

In the past few weeks, in particular, several leading defense advocates in Congress

have argued that a fairly substantial supplemental amount is needed urgently. For its

part, the White House initially set no timetable for submitting a FY2001 defense

supplemental request and has provided little indication of the likely size of any

request. The conference agreement on the FY2002 congressional budget resolution

(HconRes 83) specifically sets aside $6.5 billion for FY2001 defense supplemental

appropriations, but also may accommodate additional funding.

Most recently, the top-to-bottom review process itself has come under some

scrutiny in Congress. While Congress initially gave the Bush Administration

considerable leeway to undertake its review of defense strategy and programs, within

about the past month or so, key members of the congressional defense committees

have begun to raise some fairly far-reaching questions about the review process. Both

the House and the Senate Armed Services Committees have held hearings on issues

being considered in the review. And more and more critical questions have been

raised – including who is carrying out key aspects of the review; whether the military

services and Joint Staff are being adequately involved in the process; who will make

final decisions; what the timetable will be; what substantive proposals are emerging;

and, certainly not least, what Congress’s role will be in reviewing key decisions as

they are made.

Finally, as time for congressional action on annual defense funding bills

approaches, a number of particular issues are emerging with more urgency. Military

pay raises and personnel benefits have become matters of extensive discussion.

Decisions on some of these matters may have very large long-term budget

implications, so uncertainty about long-term defense budget trends has some

legislators concerned. More and more discussion is emerging, as well, about major

defense policy issues, including missile defense, defense space policy, shipbuilding, the

status of major acquisition programs in general, and policy toward China.

This report is organized into four sections.

! The first discusses what has been decided to date about Bush Administration

defense budget plans for FY2002 and beyond. For comparison, it includes

some discussion of the final Clinton Administration defense plan. It also

provides basic information on congressional action on defense spending to

date.

! The second discusses the ongoing debate about long-term defense budget

needs – which generally has been framed as a discussion of long-term defense

budget “shortfalls.” It briefly cites what the Joint Chiefs and other key defense

leaders have said over time about defense shortfalls. It also very briefly cites

key studies by the Center for Strategic and International Studies and the

Congressional Budget Office.

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! The third discusses supplemental appropriations for FY2001.

! The final section briefly reviews the status of debate about defense

transformation, which appears to be the key theme shaping Bush

Administration defense policy. This section reviews what then-Governor Bush

said about transformation in key defense policy speeches during the

presidential campaign – particularly in a major speech at the Citadel in October

1999. The Citadel speech appears pretty close to the blueprint that the

Administration has followed in addressing defense policy issues now that it is

in office. How to define transformation, and how to implement it, remains

uncertain, however.

Bush Administration Defense Budget

Projections and Trends

Defense Budget Proposals to Date

The White House FY2002 budget request, released on April 9, includes $325.1

billion in new budget authority for the national defense budget function. The

Administration has also projected totals for the Department of Defense and for the

National Defense Budget Function through FY2006, but the figures beyond FY2002

simply reflect amounts if national defense budget authority were to grow at the rate

of inflation from FY2002 on. Table 1 shows the Administration figures broken down

in two ways – first by major titles in annual defense appropriations and authorization

bills, and, second, particularly for purposes of comparison with other data, with

“discretionary” and “mandatory” DOD accounts broken out.

A few key points may be of interest in assessing these budget projections.

! First, the FY2002 request shows an increase of about a $14 billion in new

budget authority compared to the projected FY2001 level (either for the

Department or Defense alone or for the overall national defense budget

function). By recent standards, this in itself constitutes a significant increase

in defense spending from one year to the next, although a substantial

supplemental appropriation for FY2001 would obviously raise the base and

reduce the apparent increase.

! That being said, almost all of the apparent increase in the FY2002 “top line”

defense budget was already decided upon by the outgoing Clinton

Administration. Indeed, outgoing Secretary of Defense William Cohen

released information on the Clinton Administration’s revised long-term defense

budget plans in mid-January, in a section of the Department of Defense Annual

Report to Congress. One table in the Annual Report provides an estimate of

the amounts the Defense Department calculated the Clinton Administration had

agreed to add to the defense budget in the period between the time the

FY1999 budget request was initially submitted to Congress and the end of the

new Pentagon planning period in FY2007. By Secretary Cohen’s calculation,

the Clinton Administration had agreed to add $227 billion in “top-line” changes

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to ongoing defense budget plans – an increase of almost 9% – over a nine-year

period. Table 2, shows Secretary Cohen’s figures. Please note that the

amounts are for Department of Defense “discretionary” funding only – the

comparable Bush Administration figures are shown in an addendum in Table

1. Secretary Cohen’s argument was at least in part a response to the defense

policy debate in the presidential election campaign. Though the Bush

campaign alleged severe shortcomings in military readiness, it also promised

what appeared to be only fairly modest increases in defense spending. In

effect, Cohen was arguing that the Clinton Administration had long since been

doing more to increase defense capabilities than it was getting credit for. The

argument over that issue appears unlikely to abate in the future.

Table 1: Bush Administration National Defense Budget

Projections

(budget authority in billions of current year dollars)

Military Personnel

Operation & Maintenance

Procurement

RDT&E

Military Construction

Family Housing

Revolving & Management Funds

Total, Department of Defense

Atomic Energy Defense Activities

Other Defense-Related Activities

Total, National Defense

Addendum:

Dept. of Defense Discretionary

Dept. of Defense Mandatory

Est.

2000

73.8

108.8

55.0

38.7

5.1

3.5

5.6

290.5

12.4

1.2

304.1

Est.

2001

75.4

108.2

62.1

40.8

5.3

3.6

-0.4

295.1

14.1

1.5

310.6

Req.

2002

80.3

115.7

59.5

44.4

5.5

4.1

-0.1

309.4

14.2

1.5

325.1

Proj.

2003

NA

NA

NA

NA

NA

NA

NA

318.0

14.4

1.5

333.9

Proj.

2004

NA

NA

NA

NA

NA

NA

NA

326.9

14.4

1.5

342.8

Proj.

2005

NA

NA

NA

NA

NA

NA

NA

336.0

14.7

1.5

352.2

Proj.

2006

NA

NA

NA

NA

NA

NA

NA

345.5

14.9

1.5

361.9

287.3

3.2

296.3

-1.3

310.5

-1.1

319.0

-1.0

327.9

-1.1

337.1

-1.1

346.6

-1.1

Sources: Office of Management and Budget, Historical Tables, Budget of the United States

Government for Fiscal Year 2002, April 9, 2001; Office of Management and Budget, Budget of the

United States Government for Fiscal Year 2002, April 9, 2001.

Note: Totals for FY2003 and beyond are projected based on the assumption that budget authority for

national defense grows from the FY2002 level at the rate of inflation. Mandatory amounts in DOD

generally reflect small amounts of offsetting receipts for sales of material from DOD revolving funds

to the public. Mandatory funds may also include, as in FY2000, a use of contract authority, which,

under standing law, may be made available to support revolving funds.

! Most of the amounts the Clinton Administration decided to add to the FY2002

total – and to budget totals in later years – reflect “fact of life” changes in costs

or “must pay” items added by Congress in the FY2001 defense funding bills.

Table 3 is an accounting of these additions. Such changes in costs are quite

typical in defense budgets from one year to the next, and may often limit the

ability Administrations have to meet long-term budget targets. The Clinton

Administration had been trying for some time, for example, to increase

weapons procurement funding to $60 billion and more. Last year, the

Administration projected that procurement in FY2002 would grow to $63.0

billion. The Bush Administration FY2002 procurement request, however,

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totals $59.5 billion, an amount that would have drawn considerable criticism

from Congress had the Clinton Administration formally requested it.

Table 2: Clinton Administration Adjustments in Department of Defense

“Top-Line” Budget Authority (Discretionary Funding Only)

(billions of dollars)

FY

1999

FY

2000

FY

2001

FY

2002

FY

2003

FY

2004

FY

2005

FY

2006

FY

2007

Total

FY1999 Clinton Projection

258

264

272

276

285

292

299

307

314

2,568

Supplemental Requests

+9

+2

–

–

–

--

--

--

--

+11

Admin. Top Line Increases

–

+4

+20

+35

+25

+25

+25

+27

+28

+188

Congressional Additions

+7

+17

+4

–

–

–

--

--

--

+28

Total FY1999-2007 Increases

+16

+23

+24

+35

+25

+25

+25

+27

+28

+227

FY2002 Clinton Request

275

287

296

310

310

317

324

333

342

2,795

Source: William S. Cohen, Secretary of Defense, Annual Report to the President and the Congress, Jan. 2001, p. 244.

Note: Amounts reflect Department of Defense discretionary funding only – these do not include small, negative “mandatory”

amounts and defense-related activities of other agencies, such as the Department of Energy.

Table 3: FY2002-FY2007 Clinton Administration Additions to

Department of Defense Top Line Budget Authority

(billions of dollars)

FY

2002

FY

2003

FY

2004

FY

2005

FY

2006

FY

2007

Total

02-07

Contingencies

2.1

–

–

–

–

–

2.1

Over 65 Health Care

3.9

0.9

0.9

1.0

1.0

1.1

8.8

Defense Health Program

0.6

–

–

–

–

–

0.6

Congressional Health Increases

0.2

0.2

0.3

0.3

0.3

0.3

1.6

Personnel Authorization Changes

0.7

0.7

0.7

0.8

0.8

0.9

4.6

Fuel

1.6

0.3

0.3

0.3

0.3

0.3

3.1

Inflation

1.1

1.2

1.4

1.7

1.9

2.1

9.4

Personnel

0.6

0.5

–

–

–

–

1.1

Intelligence & Classified

0.6

–

–

–

–

–

0.6

Science & Technology

0.1

–

–

–

–

–

0.1

Vaccines

–

–

0.4

–

–

–

0.4

Service Needs

3.1

4.0

3.6

3.1

3.3

3.1

20.2

14.5

7.9

7.7

7.1

7.6

7.8

52.7

Clinton Administration Adds

Source: Department of Defense.

Note: Totals may not add due to rounding.

! The Bush Administration adopted the increased Clinton defense number for

FY2002, i.e., about $310 in DOD discretionary budget authority, but,

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significantly, did not initially decide to add even more to it. In response to

questions about the decision not to add more money, Secretary Rumsfeld has

said simply that the task is to “engage the brain” before “opening the taxpayer

wallet.” For its part, Congress has initially been supportive of delaying budget

decisions while the strategy review proceeds. But as the budget year has

progressed, and as questions about programs of particular congressional

interest continue to be unanswered, some Members of Congress are becoming

more anxious to know the results and to know how much defense money the

Administration may request.

Key Bush Defense Policy Initiatives

Although not initially adding significant amounts of new money to the outgoing

Clinton Administration FY2002 defense plan, Bush Administration officials have

emphasized some major defense policy initiatives.

! Military pay and benefits increases: In a speech to troops at Fort Stewart

Georgia on February 12, President Bush announced that “our proposed 2002

budget will include ... $1.4 billion for military pay raises. Pay raises on top of

the increases the Congress passed the last couple of budget cycles, $400

million to improve military housing, and $3.9 billion to improve military health

benefits.” The key element of this package appears to be $1.4 billion for pay

raises, of which, officials later explained, about $400 million would be for an

across-the-board raise of 4.6% beginning in January 2002, as opposed to a 3.7

percent raise planned in the Clinton budget. An additional $1 billion is

promised in FY2002 for unspecified bonuses and special pays, presumably

targeted to enhance retention of key personnel. The other elements of the pay

and benefits package, including $400 million for military housing and $3.9

billion for health benefits, are not new initiatives. Last year the Clinton

Administration proposed and Congress approved an ongoing program to

reduce differentials between amounts provided to military personnel for onbase and off-base housing – in FY2002, the initiative will cost about $400

million. The other $3.9 billion is currently estimated as the cost within the

Department of Defense budget of implementing guaranteed health care benefits

to over-65 military retirees that Congress provided last year. After FY2002,

the cost of those benefits will shift to a separate “mandatory” account financed

through a military retiree medical benefits trust fund – but in FY2002, the

Defense Department must absorb the costs within its regular the FY2002

“discretionary” accounts.

! Plans to reshape military forces inherited from the Cold War, ranging

from forces for strategic nuclear deterrence to forces for regional defense:

In several policy statements since taking office, particularly in A Blueprint for

New Beginnings that the White House issued on February 28, in remarks to

troops at Norfolk Naval Air Station on February 13, and, most recently, in a

speech at the National Defense University on missile defense policy and the

ABM Treaty, the President echoed statements made in several major speeches

during the presidential election campaign that appear to portend sweeping

changes in the fundamentals of U.S. strategy. In the Blueprint, for example,

the President said, “The Cold War is over, but to a too great extent the

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structure and strategies appropriate to that era of bi-polar, super power standoff continue to govern our Armed Forces.... Indeed, the last revision to ....

military strategy occurred in the Gulf War period with the introduction of a

Regional Defense Strategy as a means to transition to the post-Cold War

imperatives. That interim strategy has remained transitional and largely

unaltered since is introduction a decade ago.”

! Invest more in R&D and focus on “leap ahead” weaponry: The Blueprint

also prescribes a large investment in defense R&D – $2.6 billion more for

R&D in FY2002 and $20 billion more between FY2002 and FY2006 – and a

focus on programs that will “propel America’s Armed Forces generations

ahead in military technology.” “In both R&D and acquisitions, [the President]

will emphasize programs that offer our Armed Forces information superiority,

safety through stealth, and victory achieved less through massed power than

superior striking speed, agility and mobility.” Reportedly, up to $1 billion of

the $2.6 billion for FY2002, is for missile defense programs. And there may

be some debate about the size of the R&D increases – it appears that the

baseline for measuring the increases is somewhat below the level approved by

Congress for FY2001 or the Clinton Administration plan.

! Improve defense efficiency: The Blueprint promises continued efforts to

gain efficiencies through competitive sourcing and privatization; greater

reliance on commercial products, and additional base realignment and closure.

Some commentators have seen the Administration’s decision to select business

leaders as secretaries of each of the armed services as evidence that defense

efficiency measures will receive particular emphasis in coming years.

Congressional Action on Defense in the Budget Resolution

Congress completed action on the annual congressional budget resolution

(HconRes 83) in early May – the House approved a conference agreement on the

resolution on May 9, and the Senate approved its version on May 10 – without having

full information about Administration defense spending plans. As a result, defense

was a matter of considerable debate. The key issue was how to cope with the lack

of a specific budget request – for FY2002 and beyond – but still accommodate an

increase in defense spending given a widespread willingness in Congress to support

additions. See Table 4 for a complete list of alternative proposals for national

defense in budget resolution proposals made on the floor in each House.

House Action on Defense in the Budget Resolution. In its version of

the budget resolution, approved on March 28, the House incorporated the

Administration’s “placeholder” funding levels for FY2002 though FY2006 and

projected them ahead with continued growth for inflation through FY2011. It also

approved an increase of $5.6 billion in its allocation of funds for FY2001 – i.e., the

current fiscal year, not the budget year – to the appropriations committee to

accommodate supplemental defense appropriations (technically this was implemented

by revising allocations under Section 302(a) of the Congressional Budget Act). In

addition, the House version allowed the Chairman of the Budget Committee to further

increase FY2001 allocations to provide additional emergency supplemental

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appropriations for defense, agriculture and other purposes, subject to a limitation that

the on-budget Federal surplus for FY2001 must not be reduced below $29 billion.

Finally, for FY2002 through FY2011, the House resolution established a number of

“reserve funds” to accommodate increases in spending in for particular programs,

including Medicare and agriculture. One of the reserve funds, referred to as a

“Strategic Reserve,” allows the Chairman of the Budget Committee to increase the

allocation of funds for defense programs, following an amended Administration

budget request and reflecting legislation reported before July 11, 2001 – i.e., defense

authorization and appropriations measures must be prepared before that date. The

House-passed measure also included some defense policy statements concerning

personnel issues – see below for a further discussion.

Table 4: Congressional Budget Resolution – National Defense Budget Function

Alternatives

(billions of current year dollars)

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

House Progressive Caucus

Budget Authority

–

Outlays

–

House "Blue Dog"

Budget Authority

317.5

Outlays

301.9

House Republican Study Com.

Budget Authority

310.3

Outlays

300.6

House Democratic Alternative

Budget Authority

–

Outlays

–

Senate Domenici Original

Budget Authority

310.3

Outlays

300.6

House-Passed

Budget Authority

310.3

Outlays

300.6

Senate-Passed

Budget Authority

310.3

Outlays

300.6

Conference Agreement

Budget Authority

316.9

Outlays

302.4

Total

02-06

Total

02-11

258.5

272.6

266.0

267.4

273.4

275.3

280.7

279.5

288.2

282.9

296.1

287.9

304.2

299.1

312.6

307.6

321.1

316.1

330.1 1,366.8 2,930.8

325.0 1,377.8 2,913.4

329.1

323.5

334.2

329.6

345.7

338.5

357.2

335.4

367.9

359.3

---

---

---

---

349.6

344.0

362.8

354.4

369.8

360.6

379.4

374.0

390.1

381.9

401.0

389.9

412.3

404.7

423.9

416.4

435.8

428.4

435.8 1,851.7 3,960.5

428.4 1,814.9 3,882.7

327.2

320.5

334.3

325.1

345.1

334.6

356.9

349.2

368.7

358.1

379.6

366.4

390.4

380.4

400.0

391.4

409.8

402.0

420.1 1,732.2 3,732.1

412.5 1,687.5 3,640.2

324.7

319.3

333.4

325.7

342.7

334.2

352.3

347.3

362.2

354.6

372.3

362.0

382.8

375.7

393.6

386.5

404.5

397.6

416.3 1,715.3 3,684.7

409.3 1,681.2 3,612.2

324.6

319.3

333.3

325.5

342.6

334.0

352.2

347.2

362.1

354.6

372.2

361.9

382.7

375.6

393.5

386.5

404.5

397.6

416.3 1,714.7 3,684.0

409.2 1,680.6 3,611.5

334.5

326.8

333.4

325.7

342.7

334.2

352.3

347.3

362.2

354.6

372.3

362.0

382.8

375.7

393.6

386.5

404.5

397.6

416.3 1,725.1 3,694.6

409.3 1,688.6 3,619.7

324.8

319.1

333.6

326.6

342.3

335.2

350.9

347.1

359.8

353.5

369.0

359.8

378.5

372.4

388.3

382.2

398.3

392.2

408.8 1,711.5 3,654.5

402.6 1,681.5 3,590.8

-- 1,734.1

-- 1,686.3

NA

NA

Sources: House alternatives from H.Rept. 107-30; Domenici original from Congressional Record, April 2, 2001, pp. S3281-3286; Housepassed, Senate-passed, and conference agreement from H.Rept. 107-60.

Senate Action on Defense in the Budget Resolution. On April 6, the

Senate approved its version of the annual budget resolution, after several days of

debate. On April 3, the Senate debated two amendments to add to the national

defense budget function – one by Senators Landrieu and Carnahan to add a total of

$100 billion over the FY2002-2011 period for national defense, to be offset by an

equivalent reduction in tax cuts, and a substitute by Senator Warner to add $8.5

billion to the FY2002 total for specified defense purposes, including defense health

shortfalls, Department of Energy defense programs, and defense readiness. The

underlying issue concerned how to balance defense increases with tax cuts, deficit

CRS-9

reduction, and goals for spending on other programs over the long term. Democrats

generally objected to the budget resolution’s lack of specific targets for spending,

saying that unrealistic constraints – on defense and other programs – inevitably will

be imposed by tax cuts and other measures. In the end, the Senate rejected the

Landrieu/Carnahan amendment by a vote of 47-53, and approved the Warner

substitute by a vote of 84-16. Later, on April 5, the Senate approved an amendment

by Senator Domenici to add $1 billion to the FY2002 defense function for

Department of Energy defense-related environmental programs. The Senate

resolution also established two reserve funds for defense personnel related programs

– one, offered as an amendment by Senator Reid, to permit concurrent payment of

disability benefits and retired pay to disabled military retirees (i.e, to allow recipients

of disability pay also to receive retired pay), adding $2.9 billion in mandatory spending

in FY2002 and $40 billion through FY2011, and a second, offered by Senator Collins,

to increase GI bill monthly benefits, costing $743 billion in FY2002 and $9.9 billion

through FY2011 in mandatory spending.

Conference Agreement on Defense in the Budget Resolution. For

FY2001 (i.e., this year’s budget, not the FY2002 budget on which Congress is mainly

acting), the conference agreement provides a $6.5 billion increase in the national

defense budget function, which presumably would be available to increase the 302(a)

allocation to the appropriations committees for supplemental appropriations. This

would not rule out additional defense funds provided as emergency appropriations,

as well, so total defense supplemental funding for FY2001 could well be substantially

higher.

For FY2002, the agreement provides $324.8 billion in new budget authority for

national defense – the requested level as reestimated by the Congressional Budget

Office, and not including the Senate additions. To allow for further increases in

defense, the resolution uses the mechanism of reserve funds, separately administered

in the House and the Senate, to accommodate increased spending in FY2002 and over

the whole FY2002-2011 period. Section 217 of the conference agreement establishes

a reserve fund in the Senate, which allows the Chairman of the Senate Budget

Committee to increase 302(a) allocations to the appropriations committee and to the

Armed Services Committee provided, (1) the President submits a budget amendment

requesting additional funding for FY2002 in response to the “National Defense

Review” and (2) the appropriations committee reports a measure which provides

funding for such an amendment. The only limitation directly imposed on the amount

of any defense increase is that a point of order will apply against a measure if its cost,

taken together with all previously enacted legislation, would reduce the surplus below

the surplus in the Medicare Hospital Insurance Trust Fund. This became boilerplate

language in provisions regarding each of the reserve funds, though all of the other

reserve funds also include specified limits on the amount of additional funding that

may be provided.

Section 218 of the conference agreement establishes a more general “Strategic

Reserve Fund” in the House, specifying that additional funds may be provided (1) for

defense “following the President’s National Defense Review,” (2) for a prescription

drug benefit, or (3) “for other appropriate legislation.” The Chairman of the Budget

Committee may adjust committee allocations to accommodate specific legislation that

exceeds allocations otherwise provided to the committees. In effect, this is an

CRS-10

agreement to increase defense by an unspecified amount when the Rumsfeld review

is completed.

Notably, the budget resolution does not include the Senate reserve funds on

concurrent receipt of disability and retired pay or increased GI bill benefits (discussed

above under Senate action), though it does include a House-approved measure that

would require the Secretary of Defense to report within 180 days on the concurrent

payments issue and for GAO and CBO to review the costs.

Long-Term Defense Funding: The “Defense

Shortfalls” Debate

In recent years, much of the debate about the defense budget has been over the

extent of presumed “shortfalls” in long-term funding, particularly for procurement of

major weapons. To put the issue in context, in 1990 following the end of the Cold

War, the first Bush Administration agreed to long-term reductions in the size of the

force, from about 2.1 million active duty troops to about 1.6 million over five years,

selective reductions in major weapons purchases, and an attendant reduction of about

25 percent, after adjusting for inflation, in defense spending over the next five years.

The budget cuts were reflected in projections for defense spending that were agreed

to in the 1990 budget agreement, which covered the years FY1991 through FY1995.

When the Clinton Administration came into office, it adopted a revised defense

strategy, articulated in the 1993 Bottom-Up Review, that called for further cuts in the

force, to about 1.4 million active duty personnel, some additional weapons cuts (the

largest in missile defense), and a reduction in defense spending that initially was

projected to total about $120 billion over the four years from FY1994-97 compared

to Bush Administration plans. In fact, over time, virtually all of these initial budget

cuts were restored – the Administration first added money back for military pay and

benefits increases, then, as inflation projections declined, permitted the Defense

Department to preserve the added purchasing power, and repeatedly added more

funds for military readiness.1 Later, the 104th Congress added some money for

defense early in its term, and, after surpluses began to appear in the later years of the

decade, both the Administration and the Congress agreed to quite substantial

increases in defense, despite caps on discretionary spending agreed to in the revised

1997 budget agreement.

Even so, debate about defense shortfalls grew more and more intense over time.

The following is a very brief survey of key statements about defense shortfalls in

recent years:

! As early as February 1995, in congressional testimony on the FY1996 budget,

then Secretary of Defense William Perry justified projected defense funding

1

Though, notably, during the Clinton years, substantially more was allocated to operation and

maintenance and related readiness accounts and less to weapons procurement than the

outgoing Bush Administration had projected.

CRS-11

levels as sufficient to preserve adequate levels of military readiness, but he

warned that short-term readiness was being protected at the expense of a

decline in long-term investments in new weapons. For the present, he said, this

was acceptable, (1) because new weapons ordered in the 1980s were still

entering the force in large numbers, and (2) because as the size of the force

declined, older weapons were retired earlier, so the average age of equipment

in the field was declining even without new acquisition. But Perry described

the situation as a “procurement holiday” which would have to end soon,

though he put no numbers or time frame on the needed level of funding for

new weapons.

! Later, in the autumn of 1995, as part of a formal review of long-term DOD

budget plans, Chairman of the Joint Chiefs John Shalikashvili also emphasized

the need to increase procurement funding. Shalikashvili did provide a number,

saying that funding should grow from about $45 billion for procurement at the

time to $60 billion per year for procurement by about FY1998.

! Following the 1997 budget agreement, the 1997 Quadrennial Defense Review

assumed that overall defense funding would be frozen for the foreseeable

future. The QDR nonetheless argued that more money should be allocated to

procurement, largely by reallocating savings from force reductions and from

improvements in efficiency. The QDR reaffirmed the $60 billion procurement

target, saying it should be reached in the FY2000 budget.

! In September 1998, after some months of growing debate about military

readiness, the Joint Chiefs of Staff collectively identified substantial shortfalls

in funding in testimony before the Senate Armed Services Committee. The

Chiefs expressed particular concern about declines in recruitment and retention

of skilled personnel, and all endorsed higher pay raises and the repeal of

military retirement rules in effect for personnel who joined the force after 1986.

Each of the services also estimated long-term funding shortfalls, mainly for

weapons procurement, ranging from about $1 billion per year over the next

several years in the Marine Corps to $4-6 billion per year in each of the other

services.

! In February 1999, the Pentagon released a revised FY2000-2005 defense plan

that included, officials said, an increase of $112 billion over six years in total

defense purchasing power (including an $84 billion increase in the defense toline, and the remainder in retained inflation savings). The Chairman of the

Joint Chiefs affirmed that this met the most critical unfunded priorities that the

services had identified in the preceding months, which were estimated at about

$150 billion. Later, the military services submitted “unfunded priorities lists”

to the congressional defense committees that totaled about $43 billion over six

years. In action on the FY2000 defense bills, Congress agreed to a substantial

package of increased pay and personnel benefits.

! Most recently, just before leaving office, the Clinton Administration announced

that it had again agreed to a long-term increase in defense spending compared

to earlier plans. Officials said that increases amounted to about $53 billion

between FY2002 and FY2007 – Table 3, above, provides details.

CRS-12

Although Congress has focused very intensely on military pay and benefits in

recent years – and has provided some substantial increases – most of the debate

about defense shortfalls concerns the pace of weapons procurement. Among defense

advocates the debate has focused, not on whether $60 billion a year for procurement

is adequate, but on how much more than $60 billion a year is needed, and in what

years, to “recapitalize” and “modernize” the force. At one extreme is a study released

in December 1999 by the Center for Strategic and International Studies (CSIS),

entitled Averting the Defense Train Wreck in the Next Millennium,2 which calculated

that procurement budgets would have to average from $111 to $164 billion per year

(in FY2000 prices) over the next decade to replace the weapons in the current

inventory with more advanced versions as systems reach the ends of their planned

service lives.

At the other end of the debate, Clinton Administration officials acknowledged

that procurement budgets should grow further over time, but, they said, not to nearly

the level CSIS postulated. Secretary Cohen and other senior DOD officials argued

that their long-term budget plans would raise procurement spending gradually – $75

billion was planned by FY2005 – and that continued modest increases would suffice

in the future. In their view, the key issue was how to deal with a “bow wave” of

procurement costs in the later years of the decade – i.e, a significant surge in total

procurement costs as a number of weapons now in R&D begin to enter production

along with systems already being produced. This “bow wave” will come once new

weapons programs, such as the F-22 and Joint Strike Fighter aircraft, the Comanche

helicopter, and the DD-21 destroyer, come into full rate production at the same time.

Cohen’s judgment was that this could be accommodated by reallocating funds to

procurement without large increases in overall defense spending.

Later last year, the Congressional Budget Office released a study that reflects

something of a middle ground.3 Much like the CSIS study, CBO’s analysis is based

on what it calls a “steady-state” analysis of the defense budget – i.e., the amount

needed over the long term to maintain a force of the current size and composition.

For procurement, a “steady state” level of funding would be roughly sufficient to

replace the existing stock of weapons as they reach the ends of their normal service

lives. CBO estimated that a “steady state” budget over the next 15 years would have

to average about $340 billion a year, in FY2000 prices (i.e., about $50 billion above

the FY2000 level then anticipated), of which, about $90 billion a year would be for

procurement. This is considerably less than CSIS estimates.

The large gap between CSIS and CBO point out how dramatically minor

differences in assumptions can lead to vastly different estimates when projected over

a long term. Both studies are based on a similar analysis of procurement requirements

2

Daniel Goure and Jeffrey M. Ranney, Averting the Defense Train Wreck in the New

Millennium (Washington: CSIS, 1999). The CSIS study was the subject of a hearing before

the House Armed Services Committee on February 8, 2000, and prepared remarks are

available at the Committee website: [http://www.house.gov/hasc/schedules/2000.html].

3

Congressional Budget Office, Budgeting for Defense: Maintaining Today’s Forces,

September 2000. Available electronically at

[http://www.cbo.gov/showdoc.cfm?index=2398&sequence=0&from=7].

CRS-13

– each assumes that current generation weapons will be replaced on a one-for-one

basis as they reach a certain age. This, in turn, implies an average annual rate of

production of new weapons to maintain the given size of the force. For Navy ships,

for example, if one assumes an average service life of 35 years, to maintain a fleet of

300 ships would require 8.7 new ships a year. CBO did not assume that nuclear

weapons and some other systems would all be replaced, however, was somewhat

more sanguine about weapons cost growth than CSIS, and relaxed its assumptions

somewhat to acknowledge that weapons are now commonly being kept in service

longer than initially planned. For its part, CSIS acknowledged that $111 billion per

year for procurement would suffice, according to its calculations, rather than $164

billion per year, if strategic nuclear weapons programs were taken out of the equation.

Now the Bush Administration has inherited this unresolved debate. For their

part, many Members of Congress who serve on the defense committees hope to see

enough of an increase in defense spending to accommodate production of weapons

programs pretty much as the services have planned.4 This would imply substantial and

sustained increases in the defense budget over the next several years. For its part,

however, the Bush Administration continues to study the issue, with several Pentagon

panels reviewing major weapons issues, but with no significant public discussion of

conclusions.

FY2001 Supplemental Appropriations

In recent years, supplemental appropriations for defense programs have

commonly been used not only to meet unplanned requirements, such as the costs of

military operations in Yugoslavia in FY1999 and 2000, but also as a means of adding

money to the defense budget, particularly for military readiness, without technically

violating caps on spending established by the 1997 budget agreement. The FY1999

supplemental appropriations bill for Kosovo, for example, (P.L. 106-31, H.R. 1141),

provided over $5.8 billion of unrequested funds (out of $12 billion for defense in all),

including $1.8 billion for military pay and benefits increases beginning in FY2000.

Early this year, some defense supporters in Congress clearly expected that the

incoming Bush Administration would propose supplemental appropriations for

FY2001 as an immediate means of bolstering defense. Expectations rose further

when each of the military services began to report significant shortfalls in the FY2001

budget, ranging from growing unfunded medical costs in all the services, to spare

parts shortages in the Army and Air Force, to unexpected growth in shipbuilding

costs in the Navy. In January, the services provided briefings and extensive backup

material to Congress supporting supplemental appropriations of almost $8 billion, not

including military personnel and health care costs. Bush Administration officials,

however, pointedly decided not to request an early supplemental appropriations bill,

saying that funding requirements for FY2001, along with later budgets needs, would

be addressed following the planned review of military strategy.

4

This view was reflected, for example, in a hearing on “Defense Transformation” held by the

Subcommittee on Military Procurement of the House Armed Services Committee on March

28, 2001.

CRS-14

The Administration’s reluctance to support an early supplemental prompted

considerable debate in Congress. In February, Senate Armed Services Committee

Chairman Warner, wrote a letter to the White House supporting the decision to

pursue a strategy review before asking for a large increase in defense spending, but

he also urged an immediate supplemental request, amounting to about $3.9 billion, for

specific, short-term needs. Subsequently, several leading pro-defense Democrats,

including Rep. Dicks and Rep. Skelton, strongly urged immediate action on a larger

supplemental and submitted a measure providing $6.7 billion, including funds for a

pay raise in FY2001. Finally, during debate on the congressional budget resolution,

Sen. Warner and others again urged action on a defense supplemental. The

conference agreement on the budget resolution specifically sets aside about $6.5

billion in available FY2001 funds for defense supplemental appropriations, though

more may be provided if it is approved as emergency appropriations.

Within Congress, this year’s debate about whether and when to bring up a

defense supplemental appropriations bill is, to a degree at least, embroiled in a much

broader debate about controls over spending. In this case, the White House appears

to be taking the side of Members of Congress who want to enforce strict limits on

spending, including limits of some kind on emergency appropriations bills even for

defense. On the other side are legislators, particularly many appropriators, and more

particularly many pro-defense appropriators, who do not think restrictions on

emergency appropriations in general, and on defense emergency appropriations in

particular, are advisable. This is not a new issue. On the contrary, the use of

emergency supplemental appropriations was repeatedly an issue in the 104th and 105th

Congresses. Many legislators argued that emergency appropriations should be limited

because they added to the deficit or, more recently, “spent” part of the surplus

generated by Social Security. Annual debates about supplemental appropriations bills

raise a number of Issues – whether to find sufficient rescissions to offset supplemental

funding for all supplemental funding or only for some, whether non-defense

rescissions should be used to offset supplemental defense funding, and whether

defense should be exempt from offsets while other emergency spending should not.5

In the end, as Federal budget surpluses grew, pressures to limit supplemental funding

eased. Now, with a Republican Congress and a Republican President, these questions

appear to be back on the agenda.

Defense Transformation

Defense policy was a major issue in last year’s presidential election, and, in

retrospect, the Bush campaign laid out how a Bush Administration would approach

defense issues in some detail very early in the campaign. It was, nonetheless,

something of a surprise to many observers when the Administration announced plans

for a sweeping review of military strategy before making any significant decisions on

the defense budget. Moreover, as the scope of the review became apparent, analysts

5

For a full review of the debate over supplemental appropriations for defense from FY1995

through FY1999, see Stephen Daggett, “Emergency Appropriations for the Department of

Defense: Congressional General Distribution Memo”, August 18 1998, 28 p. Available to

congressional offices by request from the author.

CRS-15

began to look much more closely at precisely what Governor Bush had said about

defense policy during the campaign. As it turns out, Bush Administration procedures

and policy proposals have so far followed very closely the outlines of a major speech

on defense policy made at the Citadel on September 23, 1999 – and it remains a

matter of intense interest to see how closely future policy decisions made in the

review will adhere to some fairly dramatic statements in that and other campaign

speeches.

Some excerpts from the Citadel speech illustrate why the defense review has

roiled the waters. Key passages from the speech include –

Recently, after years of neglect, a significant pay raise was finally passed. My first

budget will go further – adding a billion dollars in salary increases. We also will

provide targeted bonuses for those with special skills. Two-thirds of military

family housing units are now substandard, and they must be renovated. And we

must improve the quality of training at our bases and national training centers.

At the earliest possible date, my administration will deploy anti-ballistic missile

systems, both theater and national, to guard against attack and blackmail. To make

this possible, we will offer Russia the necessary amendments to the anti-ballistic

missile treaty – an artifact of Cold War confrontation.... If Russia refuses the

changes we propose, we will give prompt notice, under the provisions of the treaty,

that we can no longer be a party to it.

As president, I will begin an immediate, comprehensive review of our military...

We will modernize some existing weapons and equipment, necessary for current

tasks. But our relative peace allows us to do this selectively. The real goal is to

move beyond marginal improvements – to replace existing programs with new

technologies and strategies. To use this window of opportunity to skip a generation

of technology. This will require spending more – and spending more wisely.

When our comprehensive review is complete, I will expect the military's budget

priorities to match our strategic vision – not the particular visions of the services,

but a joint vision for change. I will earmark at least 20 percent of the procurement

budget for acquisition programs that propel America generations ahead in military

technology. And I will direct the Secretary of Defense to allocate these funds to the

services that prove most effective in developing new programs that do so. I intend

to force new thinking and hard choices.

The transformation of our military will require a new and greater emphasis on

research and development. So I will also commit an additional $20 billion to

defense R&D between the time I take office and 2006.

To date, the Administration has (1) undertaken the strategic review promised in

the Citadel speech, (2) formally announced a larger pay raise as mentioned in the

speech, (3) announced its decision to proceed with a national missile defense system

and to restructure or renounce the ABM Treaty, and (4) emphasized in its budget

presentations that additional funding is, as promised, being allocated to R&D.

Some obvious questions follow:

CRS-16

! How selective will the Defense Department be in choosing which weapons to

modernize?

! Which, if any, weapons programs now being planned represent only “marginal

improvements” in existing systems and which represent “programs that propel

America generations ahead”?

! What does it mean to “skip a generation of technology”?

! How are current visions of any of the military services at odds with a joint

vision for change?

! When will 20 percent of the procurement budget be allocated to leap ahead

technology?

! Will the budget shares of the military services change substantially in years

ahead, and if so, who will gain and who will lose?

Whether the defense review will answer all these difficult questions definitively

remains to be seen – but even posing the questions has understandably left many

interested parties in Congress and in defense industry nervous about the outcome.

In practice, it may be some time before major weapons issues – which have been

the focus of the most intense speculation – are decided. In the meantime, the

Administration is now beginning the process of reporting on the results of the defense

review. On May 25, President Bush is scheduled to deliver the commencement

address at the U.S. Naval Academy. This address is billed as a major statement of

Administration policy, in which the President will describe, in at least broad terms, the

outcome of the review of defense strategy that Secretary Rumsfeld has been

overseeing since January.

What, exactly, the President will say about defense strategy has been a matter of

extensive speculation. Over the past few weeks, it has been widely reported

! that the review will call for a shift in the focus of U.S. strategy toward the

Pacific;

! that the review is looking closely at “forward presence” requirements,

particularly for the Navy, and might reduce estimates of the number of aircraft

carriers and perhaps other ships needed for presence missions;

! that large deck aircraft carriers in particular are likely to be reduced because

of concerns about their vulnerability in the future;

! that the Navy’s argument about the survivability and value of large deck

aircraft carriers now appears to have carried the day, and the number of

carriers will not be reduced;

! most recently, that the defense review will formally abandon the two major

theater war (2MTW) requirement that has been a key factor in determining the

size and composition of the force since the early 1990s; and

! that the shift toward Asia and the demise of the 2MTW requirement may lead

to reductions in the size of the Army.

The Administration has held very tight reins over the strategy review, however, and

no senior officials have openly hinted at the decisions being made on these and other

far-reaching issues.

CRS-17

For Additional Reading

Budget Documents

The White House, Executive Office of the President, “A Blueprint for New

Beginnings: A Responsible Budget for America’s Priorities, Feb. 28, 2001.

Available electronically at:

[http://www.whitehouse.gov/news/usbudget/blueprint/budtoc.html]

Office of Management and Budget, Historical Tables, Budget of the United States

Government for Fiscal Year 2002, April 9, 2001. Available electronically at:

[http://www.whitehouse.gov/omb/budget/fy2002/budget.html]

Office of Management and Budget, Budget of the United States Government for

Fiscal Year 2002, April 9, 2001. Available electronically at:

[http://www.whitehouse.gov/omb/budget/fy2002/hist.pdf]

Congressional Budget Office, The Budget and Economic Outlook: Fiscal Years

2002-2010, Jan. 2001. Available electronically at:

[http://www.cbo.gov/showdoc.cfm?index=2727&sequence=0&from=7]

Congressional Budget Office, An Analysis of the President’s Budget Proposals for

FY2002, May. 2000. Available electronically at:

[http://www.cbo.gov/showdoc.cfm?index=2819&sequence=0&from=7]

“Shortfalls”

Daniel Goure and Jeffrey M. Ranney, Averting the Defense Train Wreck in the New

Millennium (Washington: CSIS, 1999). The CSIS study was the subject of a

hearing before the House Armed Services Committee on February 8, 2000, and

prepared remarks are available at the Committee website:

[http://www.house.gov/hasc/schedules/2000.html]

Congressional Budget Office, Budgeting for Defense: Maintaining Today’s Forces,

by Lane Pierrot, September 2000. Available electronically at:

[http://www.cbo.gov/showdoc.cfm?index=2398&sequence=0&from=7]

Steven M. Kosiak, “Cost of Defense Plan Could Exceed Available Funding by $26

Billion A Year Over Long Run,” Center for Strategic and Budgetary Assessments,

April 2, 1998. Available electronically at:

[http://www.csbaonline.org/4Publications/Archive/U.19980402.Cost_Of_Def

ense__P/U.19980402.Cost_Of_Defense__P.htm]

Transformation

Bush, Governor George W. “A Period Of Consequences,” speech presented at The

Citadel, South Carolina, Thursday, September 23, 1999. Available electronically

at:

[http://www.georgewbush.com/News/speeches/092399_consequences.html]

CRS-18

Bush/Cheney Campaign, Background information on defense policy, following

Citadel Speech, September 23, 1999.

Available electronically at:

[http://www.georgewbush.com/Media/PDFs/defense.pdf], and at

[http://www.fas.org/news/usa/1999/09/990923-bush-dod.htm]

“Defense Transformation” a hearing before by the Subcommittee on Military

Procurement of the House Armed Services Committee, March 28, 2001.

Prepared statements available electronically at:

[http://www.house.gov/hasc/schedules/2001.html]

Donnally, Thomas, et al., Project for the New American Century, Rebuilding

America’s Defenses: Strategy, Forces and Resources for a New Century,”

September 2000. Available electronically at:

[http://www.geocities.com/newamericancentury/defensereport.html]

Flournoy, Michele A., Project Director, Report of the National Defense University

Quadrennial Defense Review 2001 Working Group, Washington: National Defense

University, November 2000. Available electronically at:

[http://www.ndu.edu/inss/spa/QDRRprt.pdf]

Kosiak, Stephen; Andrew Krepinevich; and Michael Vickers, A Strategy for a Long

Peace, Center for Strategic and Budgetary Assessments, Jan. 30, 2001. An

Executive Summary is available electronically at:

[http://www.csbaonline.org/4Publications/Archive/R.20010130.A_Strategy_f

or_a_L/R.20010130.A_Strategy_for_a_L.htm#ch1]

O’Hanlon, Michael, Technological Change and the Future of Warfare (Washington:

Brookings Institution, 2000), 208 p. A fax quality version is available

electronically at:

[http://brookings.nap.edu/books/0815764391/html/1.html#pagetop]

U.S. Commission on National Security, 21st Century, “Phase III Report: Roadmap

for National Security: Imperative for Change,” Feb. 15, 2001, 139 p. Available

electronically at:

[http://www.nssg.gov/PhaseIIIFR.pdf]

CRS Publications on Transformation

CRS Report RS20771, Quadrennial Defense Review (QDR): Background, Process,

and Issues, by Jeffrey D. Brake, January 8, 2001, 6 p.

CRS Report RS20859, Air Force Transformation: Background and Issues for

Congress, by Christopher Bolkcom, March 27, 2001, 6 p.

CRS Report RS20787, Army Transformation and Modernization: Overview and

Issues for Congress, by Edward F Bruner, April 4, 2001, 6 p.

CRS Report RS20851, Naval Transformation: Background and Issues for Congress,

by Ronald O’Rourke, March 21, 2001, 6 p.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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