2017

RebuildingNationalSecurity-ThePriceofFreedom"ITISMORALLYWRONGTOTASKSOMEONEWITHAMISSIONFORWHICHTHEYARENOTFULLYPREPAREDANDFULLYSUPPORTEDWITHTHEBESTWEAPONSANDEQUIPMENTTHISNATIONCANPROVIDE."

- CHAIRMANMACTHORNBERRY

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TableofContentsHowDidWeGetHere?-StateoftheWorld.........................................................................................3

HowDidWeGetHere?-BudgetarySituation.......................................................................................4

DefenseSpendingDecline....................................................................................................................5

Result:MilitaryReadinessCrisis...........................................................................................................6

SeniorMilitaryLeadership:BudgetCutsAreDoingRealDamage..........................................................7

What'sNeeded:Reform.......................................................................................................................9

What'sNeeded:Investment...............................................................................................................10

ItIsOurJob........................................................................................................................................12

WhyDoesItMatter............................................................................................................................13

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HowDidWeGetHere?–StateoftheWorld“TheUnitedStateshasnotfacedamorediverseandcomplexarrayofcrisessincetheendoftheSecondWorldWar.”

-Dr.HenryKissinger “Americansshouldnottakethecurrentinternationalorderforgranted.Itdidnotwillitselfintoexistence.Wecreatedit.Likewise,itisnotnaturallyself-sustaining.Wehavesustainedit.Ifwestopdoingso,itwillfrayand,eventually,collapse.”

-General(RET)DavidPetraeusTerrorism:ThreatsfromISISandalQaedaThepaceofterroristattacksbyIslamicterroristgroupsintheUnitedStatesandEuropeisacceleratingtoincludeOrlando,Istanbul,Nice,andBerlin.TheDirectoroftheDefenseIntelligenceAgencytestifiedlastyearthatISIShas“becomethemostsignificantterroristthreattotheU.S.andourallies”whileAlQaeda“alsoremainsaseriousthreattoU.Sinterestsworldwide”.Overthelast7years,deathsfromglobalterrorismhaverisensharply.

NorthKorea:“AnImminentThreat”TheerraticregimeinNorthKoreapossessesandregularlytestsnuclearweaponsandispursuingnew,longer-rangeballisticmissilesthatdirectlythreatentheUnitedStates.Since2012,KimJong-unhasfocusedhiseffortsonmissiledevelopment,andtestedeighttimesasmanymissilesin2016thanweretestedin2012.InMarch2017,SecretaryofStateTillersoncalledNorthKorea"animminentthreat".

Russia:“NothingShortofAlarming”Moscowcontinuesitslong-termmilitarymodernizationeffortsandhasrecentlydeployedanewcruisemissilethatviolatestheIntermediate-rangeNuclearForces(INF)Treaty.TheChairmanoftheJointChiefsofStaffhastestifiedthatRussiaposesthegreatestsecuritythreattotheUnitedStates,statingthat,“Ifyoulookattheirbehavior,it’snothingshortofalarming”.

China:DesignedtoChallengeandIntimidate“…China’smilitarymodernization—fueledbyagrowingdefensebudget—continuestoemphasizecapabilitiesthataredesignedtochallengetheUnitedStatesandintimidateChina’sneighbors…Moreover,China’sexpandingintelligencecollectioncapabilities,includinginthecyberrealm,haveenabledmanyinfiltrationsofU.S.nationalsecurityentities...”–2016ReporttoCongressoftheU.S.-ChinaEconomicandSecurityReviewCommissionIran:PursuingPower

Iranremainstheforemoststatesponsorofterrorism,whilecontinuingtodeveloplonger-rangemissiles,harassU.S.navalvessels,threatenourallies,andpursuenuclearambitions.“IthinkthatIran'sobjectivehereistobetherightregionalhegemon.Theywanttobethepredominantpowerintheregion,there'snodoubtaboutthatandIthinkthat'swhattheyarepursuing.”

- GeneralJosephVotel,USA,Commander,U.S.CentralCommand

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How Did We Get Here? – Budgetary Situation

'SinceWorldWarII,nomatterwhichpartyhascontrolledtheWhiteHouseorCongress,America’sglobalmilitarycapabilityandcommitmenthasbeenthestrategicfoundationundergirdingourgloballeadership.'-2014NationalDefensePanelReport

- TheBudgetControlActof2011andsequestrationhavenotsignificantlycontrolledthedebtnormadeussafer.Infact,astheworldbecomesmoredangerous,defensespendingisatahistoriclow.

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Defense Spending Decline

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RESULT: Military Readiness Crisis ThereiswidespreadagreementthatfundingcutsundertheBudgetControlActcombinedwithaseriesofContinuingResolutionsandtherelentlesspaceofrequireddeploymentshavedamagedtheU.S.military.Since2011,defensefundinghasbeenapawninthepartisanbackandforthoverotherissuesandhasevenbeenheldhostageforotherpriorities.Theresult:

v TheArmyisthesmallestithasbeensinceWWII.

o Ofthe58remainingArmyBrigadeCombatTeams,only3could“fighttonight.”

v TheU.S.NavyisthesmallestithasbeensinceWWI.

o LessthanhalftheNavy’sfighteraircraftcanflyasofFebruary2017.

o Wehavestretcheddeployments,keepingsailorsatsealonger,andcuttingthetimeformaintenancewhenshipsreturnhome.

o Bytheendofthisyear,6submarineswilllosetheirdivingcertification,unabletooperate.

o WecannolongerconsistentlymaintainanAircraftCarrierinthePersianGulf.

v TheAirForceisthesmallestandoldestithasbeeninitshistory.

o TheAirForceisshort1,550pilotsand4,000mechanics.Flighthourshavebeenreducedduetothelackofavailablepilotsandaircraft.

v Lastyear,theMarineCorpslost15Marinestoaviationmishaps.

o MarineCorpsaviationaccidentsresultinginlossoflifeorlossoftheaircrafthaveincreased50%inthelast2years.

o ForallofFiscalYear2016,theMarineCorpshad8majoraviationaccidents.InthefirstthreemonthsofFiscalYear2017,theMarineCorpshasalreadysuffered7.

o Lastyear,theMarineCorpswasonlyabletofieldabout66%oftheaircraftrequiredbytrainingandoperationalneeds.

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Senior Military Leadership: Budget Cuts Are Doing Real Damage “Wegottowherewearetodaybecauseof15yearsofoperatingatwartimepace.TheEisenhowerStrikeGroupwasdeployedfivetimesinthelastsevenyears.ContrastthatlevelofeffortwitheightyearsofcontinuingresolutionsandfiveyearsofbudgetrestrictionsimposedbytheBudgetControlActandtheBalancedBudgetActs(sic).Thisgapcreatesyearsofstressoverandabovetheinherentstressofdeployedoperations.AndtheNavyteam--infact,theJointServiceTeam--theJointForceTeam;sailors,civiliansandtheirfamilies,havebeenabsorbingthatstress.”

- Adm.JohnRichardson,CNO,U.S.Navy

“Itwilldojustthat,itwillincreaserisktothenationandultimatelyresultindeadAmericansonafuturebattlefield.Lackof2017appropriationsandnosupplementalincreaseinfundingwillsignificantlyimpactreadinessandincreasetherisktoourforce.”

- Gen.MarkA.Milley,ChiefofStaff,U.S.Army

“Whilewetalkaboutwhetherornottokeepshipsinportandaircraftontheground,ourcompetitorsaremakingsteadyprogressandgainingonus.America’srisksaregettingworse,asothernationsgrowtheirfleetandoperatetheminthePacific,Atlantic,IndianandArcticocean,[and]astheyextendtheirinfluenceovertraderoutesthatarethelifebloodoftheinternationaleconomy,includingours.”

- Adm.JohnRichardson,CNO,U.S.Navy“Ittakes10yearsand$10milliontotrainafighterpilot,and1,000[pilots]shortequatesto$1billionincapitalinvestmentthatwalkedoutthedoor...Ofallthethingsthatwecandotoretainpilotsthemostimportantistogetthemairborne.Pilotswhodon'tfly,maintainerswhodon'tmaintain,airtrafficcontrollersthatdon'tcontrol,leave.”

- Gen.DavidGoldfein,ChiefofStaff,U.S.AirForce

"Thosesailorsknowclearlytheyaresailingintoharm'sway,"Richardsonsaid."Backhereathome,there'slessevidencethatwegetit.Thereistangiblelackofurgency.We'renotdoingwhatweshouldtohelpthemwin."

- Adm.JohnRichardson,ChiefofNavalOperations

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“Ifwedon'tgetthefundingjustdescribed;lotsofouraviatorswillnotflyandtheycan'ttrain.Wewon'thavethesparestofixtheirplanes,wewon'thavethegastoflythem.Wemaynothavethepaytokeepourpilotsintheservices.Andwewon'thavereadyaircraftfortomorrow'spilots.Lotsofsailorswillnotgotosea.Wecan'taffordthemaintenancetofixtheirships,can'taffordthegastosteamthem.Andshipsweremadetieduptothepier.Inmanyways,thisisirreversible.Youcan'tgetlosttrainingtimeback,wewillbelessproficientwhenwedogotosea.”

- Adm.JohnRichardson,ChiefofNavalOperations

“Chairman,ifIweretodrawananalogy,it'dbelikesmokingcigarettes.Onecigarette'snotgoingtokillyou.Butyoudothatforeight,10,20years,30years,you'reeventuallygoingtodieoflungcancer.It'sthecumulativeeffect,overtime,thatisreallydevastatingandtheseesaweffectofmoneyinandmoneyout.”

- GENMarkMilley,CSA,U.S.Army

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What’s Needed: Reform Overthepasttwoyears,theNDAAhasincludedboldstepstoreformthewaythePentagondoesbusiness.TheCommitteewillcontinuetopushdefensereformandaccountability.WemustimprovetheagilityofourArmedForcestofacethecomplexsecuritychallengesconfrontingournation,whilealsogettingmorevalueforeachtaxpayerdollar.Since2015,sevenmajordefensereformpackageshavebeenenactedthroughtheNDAA:Ø Militarycompensationandretirementreformtomodernizetheseprograms

andtoputthemonamorefiscallyresponsiblepath;Ø Militaryhealthcarereformthatimprovesmedicalreadiness,andexpands

accesswhileensuringthatthebenefitissustainable;Ø Defensecommissarysystemreformtopreservethebenefitwhilealsoreducing

relianceonappropriatedfunds;Ø UniformCodeofMilitaryJustice(UCMJ)reform—themostcomprehensive

rewritein30years—tomodernizetheUCMJtoimproveefficiencyandtransparency,whilealsoenhancingvictims’rights;

Ø Acquisitionreformtogettechnologytothewarfighterfasterandmoreefficiently;

Ø Manpowerreform,includingreductionsinoverhead,inflagofficers,andinthenumberofcivilservants;and

Ø Organizationandmanagementreformthatincreasesaccountability,oversight,integration,andstrategicthinkingwithintheDepartmentofDefense.

Morereformiscoming…AuditReform:TheCommitteecontinuestoencouragetheDepartmentofDefensetoperformacompleteauditoftheirfinancialstatementsincompliancewiththeChiefFinancialActof1990.ThecommitteehasenactedlegislationthatrequirestheDODtobeauditreadyby2017,andconductregularoversightoftheDepartment’sFinancialImprovementandAuditReadinessplantomeasureprogress.

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What’s Needed: Investment Asustained,increasedinvestmentinnationaldefense,suchasthatinthe1980’s,isalsorequired.Astarttothisrecoverymustbegininfiscalyear2018withasignificantincreaseindefensespending–notthe3%aboveObama’slastproposalfor2018astheAdministrationoriginallyproposed.Ifwespendless,hardchoiceswillhavetobemadeaboutwhichcapabilitygapswechoosenottorebuild.

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Which Capability Are We Willing To Forget?

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It Is Our Job U.S.Constitution,Article1,Section8.v “Congressshallhavepower…

o Toraiseandsupportarmies…o Provideandmaintainanavy…o Makerulesforthegovernment

andregulationofthelandandnavalforces.”

WritingintheFederalistPapers,AlexanderHamilton,notes,“…thewholepowerofraisingarmieswaslodgedintheLEGISLATURE,notintheEXECUTIVE;thatthislegislaturewastobeapopularbody,consistingoftherepresentativesofthepeopleperiodicallyelected…”

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It’stheirlives…

It’sourfamilies’futures…

Andit’sournation.

“TheWorldismoredangerousbytheday.Passabudget.”- Gen.MarkA.Milley,ChiefofStaff,U.S.Army