tv Pentagon 2020 Budget Request Briefing CSPAN March 18, 2019 4:36pm-5:17pm EDT
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>> president trump's 2020 budget request includes a 5% increase in military spending to nearly $720 billion. next pentagon officials brief reporters on the proposal starting with defense department comptroller david norquist. >> good afternoon. thank you for being here today to discuss the fiscal year 2020 defense budget. we have senior leaders from the comptroller and joint staff, ms. mccusker. wars of the future are going to be radically different from the short conventional wars and protracted counterterrorism operations we fought since the collapse of the soviet union.
conventional opponents have typically lacked a navy or meaningful air force, never mind sieb r or space capabilities. as a result they were limit today a single domain, land, where they were quickly overmatched. so, the conflicts were short and lopsided. the war phase of desert storm and operation iraqi freedom took less than 45 days. to assume conventional wars would be like these wars would be a tragic mistake. the national defense strategy has made it clear that to preserve peace me must be e pr paired for the fight against competitors. future wars will be waged not just on the air, on the land, or at sea, but also in space and cyberspace dramatically increasing the complexity of warfare. this budget reflects that challenge, pulling together all the pieces of the national defense strategy that have been built over the past two years. from our readiness gains and
nuclear posture review, joint artificial intelligence center, elevation of u.s. cyber command, and development of the space force, all these pieces come together in this budget. the 2020 budget executes the national defense strategy by reprioritizing resources and increasing our investments in the following four areas. first, it invests in the emerging space and cyber war fighting domains. second, it invests in modernizing capabilities in the air, maritime, and land domains. third, it accelerates innovation in technology such as artificial intelligence, hypersonics, autonomy, and directed energy. and finally, it sustains our force and builds on our readiness gains. it is the largest research development test and evaluation request in 70 years. it is the largest shipbuilding
request in 20 years. it includes a 3.1% military pay raise, the largest in a decade. all this with defense spending remaining near a record low as a percentage of our economy. the stakes are clear. if we want peace, adversaries need to know there's no path to victory through fighting us. with that, i will turn it over to my colleagues to get into the details. transacti thank you very much and thank you for being here today. >> good afternoon. i'm elaine mccusker, deputy comptroller. i'm joined by deputy ierardi. to understand our budget, it is important to remember where we have been, how we got here, and
our strategy for the future. deterring or defeating great power aggression is a fundamentally different challenge than the regional conflicts against rogue states that were the basis for our planning the last 25 years. we took a hard look at the nature of competition, global commitments, and resources, people, capabilities, and funding. we also looked at competitors. china and russia will not fight us the way we had gotten used to fighting. to be successful, we have to change the way we joint force. this emphasizing the joint strategy. it sets the department on a path to prepare for long term competition. it introduces operational surprise and unemployment. it moves past the desert storm model to multiple domains. this slide provides a brief
recap of our budget focus the last few years. in '17 and '18 we were about readiness and recovery to include training and rebuilding munitions inventory. in fy '19 we focused on lethality. the decisions we made and the funding needed, we are executing the budget now and with the help of congress jump starting domains and capabilities. the fy 2020 budget is the next big step. the nds drove our decisions and this is a major milestone in its implementation. to support the nds we need a budget that stays the course. this is the budget top line snapshot. at 1,718 billion for dod it shows broegt of the of just over 5%. the fy '20 budget requests caps
with a $545 billion base budget request. it includes 165 billion for overseas contingencies operations and 9 billion for emergency funding. the oko and emergency funding will be broken out and we'll discuss that later. prioritizes resources and shifting investments prepare for a future high end fight. we are requesting resources in the four focus areas that were highlighted by mr. norquist. i will turn it over to general e ierardi. >> i'm going to walk through the next few charts to amplify the comments that mr. norquist made with respect to emerging domains. in the space domain, the focus was on enhancing our organizational structure and
improving our capabilities including satellite communications capabilities, space-base warning, and space launch capacity. we come in at about $14.1 billion of investment. and that's approximately a 15% increase over last year. in the cyber domain, we see about a $9.6 billion investment, a 10% increase over last year for offensive and defensive cyberspace capabilities and operations enhancements, resilient networks to protect our operating networks and systems, and a modern multicloud -- create a modern multicloud environment. next chart. as was mentioned, we also continue to modernize our capabilities and capacity in the air, maritime, and land domains, namely enhancing fourth and fifth generation aircraft capabilities to be able to fulfill the priorities of the
national defense strategy against our primary competitors as well as in the maritime domain with significant increases in naval capacity with strike options including unmanned capabilities and growing the battle force fleet on its way to 355 ships down the road. land domain, we see increased capabilities in the ground tactical and ground combat vehicle categories including future vertical lift, a key capability we require. and also attention and resources in the items, equipment, and capabilities required by small units, our squads, infan industry squads in the army and marine corps. in nuclear and missile defense in special operation forces we see increases to look to the competitive advantages of the united states, protecting the
homeland, and also preserving our ability to project power. next chart, please. looking forward in terms of advanced technologies and fielding innovative technologies, the four categories shown on this chart are highlights including unmanned and autonomous systems in all domains, artificial intelligence and machine learning, hypersonics in the air, sea, and maritime, and ground domains, and finally ground energy and enhancing the ability to be able to use directed energy appropriately in the future. and this would be mostly in the research and development phase for the directed energy. next chart. in terms of readiness gains, first it's important to call out that the services are supporting readiness to the max executable level in this budget. we've seen readiness improvements across the force over the past few years.
i'll highlight air and ground training, naval training, maintenance, enhancements, logistics enhancements, munitions in terms of what we've done to increase munitions stock levels as appropriate to people the requirements of combatant commanders and taken greater emphasis on training for cyber operations as well. i'll turn back over to ms. mccusker. >> our force is the most valued asset and we continue to provide competitive compensation package including 3.1% military pay raise, the largest in ten years. we're working to modernize and transform the military health system and continue to take care of our families with support programs, child care, and schools. we also continue to emphasize our facilities investments and have put just over $36 billion toward combined mill con and
sustainment modernization. this includes nearly 3 billion for hurricane recovery and reconstruction. >> with respect to instrength and number of service members, the total military in-strength will continue from fiscal year '19 in projected levels to fiscal year '20 in this budget by approximately 7,700 and across the five-year plan 39.5. these projections go to ensuring that the force is properly desourced with people who are trained and equipped to accomplish their missions. and so it's a moderate growth pattern but an important growth pattern to enhance the red does it make sense of the force and to allow us to accomplish the tasks as spelled out in the national defense strategy. >> the next three slides are some of our major investments in the categories of aircraft,
shipbuilding, space, ground, munitions, nuclear, and missile defense. we won't go through every line but i would like to highlight a few. for aircraft of the total 522 aircraft we have in our '20 budget request we have 78 f-35s plus significant resources for f-35 modernization. we also have 12 kc 46 and eight f 15x. on the next slide, for space we have four launch services budgeted under the national security space launch. our ground system investments include over 4,000 jltv which is in low rate initial production and expected to go to full rate production decision later this year. we have also supported maximum production rates for key munitions such as the joint direct attack mission, guided multiple launch system, and the hell fire missile.
switching to nuclear deterrents we continue strong investments at all three legs of the triad in the total of 14 billion including 3 billion for the b-21 and 2.2 billion for the a total of 13.6 for missile defense and defeat including 9.4 billion for the missile defense agency. it is important to note that we search or investment and we are now sustaining that surge to shift the cost curve and expand new facets of defeat and defend. i would like to take just a couple of minutes to discuss our oko and emergency request which are critical to the budget as a whole that we need to support the nds. we have bent our request into four categories. three categories for oko and one for emergency. our first oko category is direct war requirements. these are costs associated with combat or combat support that we expect would not continue once combat operations cease.
the second bin is enduring requirements that have not yet move to the base budget. these are cause for our posture and presence in the middle east, africa and the philippines, along with the european deterrence initiative. taken together, these two bins are consistent with the fy '19 enacted oko level of the third bin is our oko for base which supports things like munition, base operation support, weapons systems sustainments and other readiness efforts that have been funded in port in oko in the past. finally, our emergency funding for millcon that would support hurricane recovery and continue commitment to the southwest border. we have new money for the border in our budget to support the president's priority and to avoid the need for further potential use of 2808. before we conclude, i'd like to spend just a minute on business reform. the department captured $4.7 billion in savings in fy '17 and '18 and is on track to save 6 billion in fy '19.
we have projected reform savings of 17.9 billion for fy '20. we have just completed our first full financial statement audit. this was not a box check for us. this was not just about financial management. this was about cybersecurity, inventory, property management and readiness. it was also about better data to support management and decision making. we're aggressively working to correct the find that's we found and we have already kicked off our 2019 audit. and finally, can't do a budget briefing without a pie or bar. so this is the split of appropriations on the left side by appropriation and on the right side by military department. we have increased military personnel operation and maintenance and rtd and e and we have decreased procurement to reflect our focus on modernization. on the next slide we've got information on where you can find all of these budget materials and we're ready to take questions.
>> if i can, i'll go with -- >> tony, i wanted to talk about the $9 billion emergency fund. can you provide us more detailed breakdown of what's hurricane, what is wall, what is new money for the wall and you mentioned that maybe the new money for the wall means you don't have to do 2808. can you walk us through that fund please? >> we have $9.2 billion in the emergency fund and the way it's broken out is $2 billion for hurricane relief and recovery and that is at both of our locations mostly for the marine corps. and we have 3.6 billion up to $3.6 billion to backfill any millcon projects that we end up having to fund in '20 instead of '19 and we have $3.6 billion for potential new construction for the border. the reason we've done this is to reflect the fact that we have presidential priority that has a macro funding level and we want to get -- help get to that funding level.
i think as we get into execution is we work with congress through the rest of the budget review cycle. we'll see how that 7.2 billion breaks out, how much we can execute in fy '19 versus how much we'll be doing in '20. that's the basic breakout of how we built that part of the budget. >> do you have anything to add, general? >> no. >> separately on the f 35, buying fewer f 35s seems like the sustainment cause of the f-35 probably played a role in this, what is the sustainment cost you used to make the determination that the f. 15 was a more intelligent buy, a better buy? and does this mean the department's going to alter its posture with the f. 25 35 on how much it wants to spend. >> it's a mix between the f. 15 and f-18 and the f-35. tack care was one of the key issues that the leadership reviewed as part of its budget review. looking at, you know, what threat we're facing and what our
cost calculus is and what we need to address different parts of our threat. that's how we came up with the balance between the fourth and fifth generation aircraft decision. it was made by secretary mattis before he left and i think, you know, the general can add more about what the capabilities are that we're going for. i think we've really invested a lot of money into the f-35 modernization, so we have 78 aircraft and then we've also got significant resources for modernizing that aircraft. >> the f-35 remains a critical program for the joint forces as we look to the future and the kinds of capabilities we require. the f. 15 x provides additional capacity and readiness, especially in the near years to midyears as we look at the threats and the kinds of combat potential that we needed to bring to bear. as the f 35 program and the stockage of aircraft, aircraft in the fleets continue to grow, the fourth generation fighters in that mix we felt was appropriate to have as we looked
at the threat and the kinds of flexibility we required as we go forward. >> thank you. can you talk about why the defense department is ordering fewer jltvs especially for the army in fiscal '20? >> i think i want to defer to the army to talk specifically about their procurement program, but my understanding is their on their path to meet their requirement and their order this year reflects that requirement. >> okay, and recently the air force chief of staff said there would be 135 billion for penetrating capabilities. can you talk about where that's reflected here? >> we don't have our budget here. we have our fy '20 budget here. in the increases in the air force budget and all the service budgets for is a reflection of that kind of priority. >> did you have a question? >> yeah. i had a question on oko funding. as we know this year, the fight
against isis is rolling up and the u.s. forces are pulling out of syria but we see that still the budget allocates $300 million for training program and $250 million for border security of that -- in that country. can you explain how this 300 million will be used and who the u.s. is going to train as u.s. is pulling out in the fight against isis is coming to an end? >> i'll start. what we're seeing in our budget is a reflection of, you know, an updated part of the strategy on where we stand in defeating isis but also continued emphasis on our second line of effort which is our partnerships and our allies and they're critical role in, you know, maintaining the gains that we've achieved in that area. >> i think we'll adjust as appropriate as we move forward as we built this budget, it was
based on the information at the time. it still is an important part of the overall request and we'll adjust as necessary. >> this budget's going to be attacked because it's seen as a slush, busing the oko as a slush fund. this is a phrase that then representative mull vanney used in 2016 to describe oko funding, slush funding. can you give us a sense of what your defense is going to be or your rational for using it when you go up to the hill? >> two things really the first is that the oko budget request receives at least as much scrutiny and oversight from omb and congress as our base budget request does and the second piece is, we provided our oko request in those three distinct bins and with, you know, a significant amount of transparency so that congress will have everything that it needs to do its analysis and understand what we've done and why with our oko budget.
>> did the pentagon come up with this funding mechanism or was it an omb idea? >> we built our budget based on what we needed to support the nds and then we receive direction on how that budget would be financed from omb. >> general, cyberincrease of over 10 or 15% from last year. did that reflect some of the new authorities you've got from congress in this year's nda to be more aggressive on defense cyber and to push the envelope? >> the totality of it all is an emphasis on the department in developing capabilities in cyber. so yes, there's certainly a recognition that we need to continue to develop capabilities to stay ahead of our adversaries and that's why this budget reflects. >> previously the u.s. public debt was described as a national emergency or potentially national emergency. in your interaction with omb,
was there any idea of planning possibly for the directionry budget getting squeezed out, any planning on the dod side? >> we've always maintained our watch of both security and solvency when we look at what our requirements are and what budget we require to carry out the strategy and so that's really been, you know, our way of viewing this and conversations with omb on the domestic side is really based on those domestic requirements. >> thank you. my question, how this budget will affect the fight against terrorism in afghanistan and also in pakistan? and what's the future -- this budget concern india and u.s.? >> i can only say that the india/u.s. relationship is an important one. this budget continues to resource the necessary
activities to counter violent extremism that the united states will carry out when required. >> going back to tony's point about the oko. how do you counter the idea that -- pushing this 97 billion into oko isn't just a shell game and goes against the spirit of the bca? >> from our perspective, we built a budget that is required to carry out the national defense strategy. the decision on how to best finance that budget was made by omb and something that we followed their direction on. >> but still, it is law that, you know, you have these budget caps and yet you are making a conscious decision here to shift money into an account that doesn't -- really, i'm looking here for the definition of what you're calling base and i don't really find it good definition there that would count towards
what traditionally has counted under oko? >> we're submitting our base budget at the budget control act level so compliance with the law is what we're actually doing and the accounts that we have in oko are accounts that have been funded in full or in part by oko in the past. >> hi. one quick question. can you tell us how much funding goes into jedi for 2020? >> for jedi we have 61.9 million. >> and you foresee going ahead with the program? >> i think the contracting strategy is something that our cio and acquisition team is running. we've got the funding in the budget for that program. >> the second one very quickly, follow-up from the previous questions, are you not concerned at all that you're running a risk of only just getting 545 billion for defense or like a significantly smaller defense budget because of the gambit with the oko?
>> we're being pretty clear on what level of funding is required to carry out the national it was strategy and it'll be our job to work through the rest of the cycle to make sure that our requirements are understood. >> i wanted to ask about the european turns initiative which got about a 10% cut, 600 million down from where it was enacted. what's the thinking behind giving that cut? some of the threat from russia has subsided? >> absolutely not. we continue to be committed to our nato partnership because you see from the strategy, you know, we're very much preparing for great power competition and what you saw last year was pretty significant investment in edi and part of that was to posture ourself and our equipment in that theater and we are now moving into sort of our exercises and the other things we do in that account that with that other -- the millcon and the positioning done and we're also looking at increased burden
sharing. >> just as a follow-up, the u.s.'s star production on a system that previously would have been banned under the inf is announced earlier this week, what's the funding stream look like for that in fy '20? >> our budget is inf compliant. we have modernization choices that we'll need to make. >> there's a system under way? >> take your time. >> i wanted to ask about to the oko, was there any strategic thinking about what you put in that oko account? is it lesser priority stuff or what type of stuff is in that oko account? >> it's definitely not lesser priority. what we did is try to be as transparent as possible and put things in oko that had been funded in full or in part in oko in the past. what you see in that money is omm and a lot of our base op
support weapon systems sustainment. >> do we plan to get fit-up numbers at any point? if we don't, what does that say about how the public should look at what the pentagon is planning toward the future? >> those numbers are classified. we submit those two congress and we'll be doing so as we always do. >> you talk about the 9.6 billion for cyber alongside, if you break that down everything else is purely procurement, acquisition programs, cyber includes operations so that's not an apples to apples comparison. if you look at cyber acquisition in another book it says only 2.8, not 9.6. what's the delta there? >> so if you're looking in the weapons book, that is really focused on investment accounts. what we've shown here is our full budget for our cyber activities and, you know, the pillars that are involved in cyber, we've got security, operations and r & d all
included in the 9.6 billion that we gave you. >> it's not comparable to the air maritime, purely acquisition accounts? >> they are. we've given in our brief we have shown that the total requirement for those areas as well, so if you look in the weapons book you'll see a much lower number for ground systems because they're just doing vehicle procurement and investment whereas what we're showing you is overall in the portfolio what's that ground portfolio look like. millcon. >> hi. to follow-up on marcus's point, the fit-up numbers are classified. i don't believe that was the case previous to now. is this a new policy? i'd like you to elaborate on that. >> it's not a new policy. my fit-up numbers are classified. there's no change in policy. >> that is not the way it's been for quite a while. i guess i'll take that for the
record. just to follow-up, another question is moving forward in the unmanned systems, especially in the navy, there are a couple of big swings in here including ten new unmanned large surface combatants. can you talk about what are the validated requirements for these? where do these come from in terms of a need for the navy? we don't have a new force structure for the how the service is planning to reorganize, how does this count against the ship building total? >> i'll just maybe address some of your question there with respect to the unmanned surface vessels, it's part of a look to the future in the way that we could operate and certainly experimentation and force design activities will follow. there are requirements for the department to operate in a more autonomous manner. the navy will begin to fulfill those requirements as we look at different ways of operating, so this is about looking at the
future differently than we've looked at the past. that doesn't mean that what we have today is less important, but it is an acknowledgement that we need to start considering other ways of operating to enhance our lethality as our adversaries adapt and change their way of operating. >> on the hypersonic and $2.6 billion, we know of four programs of record that have been in the budget, hacksaw, aero, cps and this new titled land launch capability. are there any other programs of record in the budget for hypersonic and is there any money allocated for hypersonic defense? >> on the other programs i think i'm going to ask you to talk about the services of that. i don't have those details in front of me right now. >> anything on defense? >> i believe it's included in the missile defense portfolio. i don't have the specifics. i'll have to get back to you on
that. >> thank you. the missile defense review called for beefing up existing capabilities and investing in new capabilities, but in this budget it seems that the procurement and rdt & e would actually see an increase in missile defense. can you address that discrepancy? >> so i think two things are probably making it appear that way. the first is that we surged our missile defense and defeat capability in '18 and '19 with reprogramming budget amendment. we're basically maintaining that tale and we're not going to continue to maintain what we surged in those years. that brings that program profile down. we also see that we've invested $1.3 billion in specifically mdr related technologies that are not inside the missile defense agency budget but that are part of our missile defense program. >> can you explain what some of those technologies are? >> i think i'd rather do that in
a different forum. >> going back to the question about the european deterrence initiative, the specific language about the money allocated to provide assistance and support to ukraine calls for the replacement of any weapons. does that mean there's no consideration for any new kinds of weaponry, lethal weaponry going to their military? >> i think for ukraine, you know, obviously will comply with what the law says and i think what we've got is a piece of our edi sort of allocated for those types of initiatives and they get developed as we move forward in partnership with the state department and others. >> 200 million plus in that account. >> the budget request $7.7 billion in savings through reforms, you say where that money is coming from and then
where are you redirecting it to? >> the money is will be redirected to our higher priority items. the money is mainly coming from a couple of different areas and we've got some die vesment programs that are no longer consistent with the national defense strategy and so you'll see some of that when you talk to the services. we've got some initiatives in the areas of i.t. which is about cybersecurity. we've got initiatives in health care, which is really about delivering the same quality of health care but doing it a little bit smarter and more efficient and then we also have a category called category management which the department being an overall smarter customer in how we buy goods and services in the enterprise. >> the high priority areas -- >> what we've discussed already within the budget. >> just crease lethality of the force.
>> hi. i wanted to follow-up on aaron's question actually. we got a statement from you guys yesterday saying as part of the u.s. response to russia's violation to the inf treaty, the dod commence treaty compliance of ground launch missile concepts in late 2017. can you tell us more about what that is exactly and where that appears in the budget and what that funding stream looks like? >> i think i'll have to take the specifics of that and get back to you. >> you said that you're not right now funding noninf compliant -- >> right. our budget is inf compliant but we have modernization choice that's we'll have to make based on what's taking place. >> but that statement made it says that this fabrication started in late 2017. >> we didn't do non-inf compliant work in 2017. >> okay. right. but it supports what might be a
non-inf compliant in the future? >> there's advanced research that if taken in one direction, you know, could do one thing and if taken in another direction could do another and those are some of the decisions we have to make on how we'll have to do our modernization. >> you mentioned health care reforms, does that include eliminating health care billets and could you say how many? >> we're doing a conversion of military to civilian to put those military billets back into lethality and that is part of our proposal this year. >> could you explain what that means and could you talk about the number that you're talking about? >> i think the number is about 15,000 that we're looking at taking from military billets and converting to civilian billets. i'd like to get back to you on the specifics of that. >> what is the 3.6 billion in
the emergency funds that is being back filled? what is that going to backfill? and how can congress -- if they don't know the programs, the millcon programs that money is being taken from and then back filled, how can they -- i mean you're essentially requesting money from them for something they don't even know what it's for? >> what we've done is we've requested the emergency money as part of the army millcon budget and oong with that we're requesting a transfer fund so that once we have definition on those projects that we would need to fund in '20 instead of '19, we would be able to put that money in the right place. that fidelity will be available as we move through this deliberative process. >> do you know when? >> i don't have an estimate on when at this point. >> ryan brown, cnn. the other 3.6 billion that you say is for additional wall construction, there's not a lot of information on that. is that for the counterdrug authority account? what authority would that money
be spent with? i'm just confused about the nature of that block of money. >> that block of money would be regular millcon as part of what the department normally requests in millcon. we requested it as part of emergency fund inside the army with a transfer request so that once we have definition on what millcon projects we need to do, we would get that money moved to the right place. >> so the border would be a military construction, border barriers, if it was authorized to be a military construction project which hasn't happened yet -- >> right. just like millcon it would have to be authorized and appropriated for that purpose. >> we have time for one more question. >> hi. going back to the european deterrence initiative, you mentioned that you're looking at increased burden sharing. what specific options are on the table regarding that? >> we're always looking for new ways to partner with our
partners out there. i think when you look at the edi in general it has five lines of effort and only one of those effort is really decreasing in the fy '20 budget and that's the infrastructure because we've really done a lot of that work to this point. >> that's the military construction side of it that ms. mccuss kerr is referring to. >> and the prepositioning i mentioned earlier. >> thank you very much. that concludes our time tonight. ladies and gentlemen, the big clock in the back sayss