Center for Arms Control and Non-Proliferation

Analysis of Fiscal 2003 Defense Authorization Conference Report

November 18, 2002

With the election over, the House and Senate Armed Services Committees completed action on the almost $400 billion fiscal 2003 Defense Authorization Conference Report. They had postponed action on the last item of disagreement: benefits for disabled veterans (concurrent receipt). They finally reached a compromise that left veterans’ groups furious because only a small number of disabled veterans will benefit (about 33,000 out of 550,000). The House of Representatives approved the conference report by voice vote on November 12; the Senate also approved the bill by voice vote on November 13.

There are a few positive elements in the conference report:

Congress -

• Insisted on substantial oversight over the Administration’s missile defense program; the Administration preferred a blank check from Congress;
• Refused to permit work on a nuclear-tipped missile defense interceptor;
• Refused to permit work on low-yield nuclear weapons;
• Slowed — but did not stop — work on a nuclear bunker buster;
• Provided full $1.1 billion in funding for Department of Energy nuclear non-proliferation programs, although still far short of the Baker-Cutler goal of $3 billion a year;
• Adopted portions of Domenici-Biden legislation that expands the scope of the Department of Energy non-proliferation program;
• Provided Administration greater flexibility for the Department of Defense Nunn-Lugar non-proliferation program;
• Refused to permit most of the requested waivers of environmental laws.

OVERALL NUMBERS

TOTAL EXPENDITURES:

• Administration request: $396.3 billion
• House: $383.4 billion (not including $10 billion contingency fund)
• Senate: $393.4 billion
• Conference agreement: $392.9 billion ($3.5 billion reduction from Administration request that is merely an accounting adjustment)
• Increase from last year’s authorization bill: $49.6 billion ($343.3 billion)

$10 BILLION CONTINGENCY FUND FOR THE WAR ON TERRORISM:

• Administration request: $10 billion
• House: Raided fund for $3.7 billion for costs that House insisted were as a result of war on terrorism
• Senate: $10 billion
• Conference agreement: $10 billion [Section 1501]

PAY RAISES:

• House: Approves request for pay raise of at least 4.1% and up to 9.5% for mid-level personnel
• Senate: Across the board 4.1% pay raise
• Conference agreement: 4.1% pay raise
• Major category break-down of $393 billion:
• Procurement: $73.8 billion
• Research, development, test & evaluation: $56.7 billion
• Operations and maintenance: $129.8 billion
• Military personnel: $93.8 billion
• War against terrorism contingency fund: $10 billion
• Military construction: $6.3 billion
• Family housing: $4.2 billion
• Department of Energy/National Nuclear Security Administration: $16.3 billion

MISSILE DEFENSE

MISSILE DEFENSE FUNDING:

• Administration request: $7.6 or $7.8 billion, depending on who is counting
• House: $7.8 billion, the Administration’s request, plus an additional $15 million
• Senate: $7.6 billion (of that amount, President can spend $814.3 million either on missile defense or counter-terrorism)

Conference agreement: Authorized $7.6 billion for ballistic missile defense (President’s request), but approved a provision that allows the President to allocate $814.3 million of those funds for activities to combat terrorism instead of missile defense [Section 1010]. The President is required to inform Congress of his choice.

BALLISTIC MISSILE DEFENSE SYSTEM SEGMENT:

• Administration request: $1.1 billion
• House: $1.1 billion
• Senate: $734 million
• Conference agreement: $1.1 billion

BALLISTIC MISSILE DEFENSE TERMINAL DEFENSE:

• Administration request: $170 million
• House: $379 million
• Senate: $196 million
• Conference agreement: $248 million

BALLISTIC MISSILE DEFENSE MID-COURSE SEGMENT:

• Administration request: $3.2 billion
• House: $3.2 billion
• Senate: $3.0 billion
• Conference agreement: $3.2 billion

BALLISTIC MISSILE DEFENSE BOOST SEGMENT:

• Administration request: $797 million
• House: $719 million
• Senate: $547 million
• Conference agreement: $756 million

SPACE-BASED LASER:

• Administration request: $97.3 million
• House: $97.3 million
• Senate: $97.3 million
• Conference agreement: $97.3 million

BALLISTIC MISSILE DEFENSE SENSORS:

• Administration request: $373 million
• House: $373 million
• Senate: $340 million
• Conference agreement: $393 million

SPACE BASED INFRARED SYSTEM-HIGH (SBIRS-HIGH):

• Administration request: $815 million
• House: $815 million
• Senate: $715 million
• Conference agreement: $775 million

THEATER HIGH-ALTITUDE DEFENSE (THAAD):

• Administration request: $932 million
• House: $932 million
• Senate: $892 million
• Conference agreement: $932 million

PATRIOT PAC-3 PROCUREMENT (TRANSFERRED TO MISSILE DEFENSE AGENCY):

• Administration request: $472 million (72 Patriots)
• House: $537 million (96 Patriots)
• Senate: $472 million (72 Patriots)
• Conference agreement: $507 million (85 Patriots)

MISSILE DEFENSE POLICY PROVISIONS:

• House: Did not include oversight provisions.
• Senate: Required Director of Operational Test and Evaluation to conduct annual operational assessment, Joint Requirements Oversight Council (JROC) to review the cost schedule and performance criteria for missile defense programs, and Sec. Defense to provide Congress with cost and schedule information.
• Conference agreement: Required Secretary of Defense to provide performance goals, development baselines, and funding profiles for each block of missile defense system that could be fielded, and required a one-time JROC review of missile defense cost, schedule and performance criteria and assess the validity of those criteria in relation to military requirements [Section 221].

MISSILE DEFENSE NUCLEAR-TIPPED WARHEADS:

• Administration request: No request
• House: Included report language urging the Pentagon to conduct research into nuclear-tipped interceptors.
• Senate: Adopted Feinstein-Stevens amendment barring nuclear-tipped interceptors.
• Conference agreement: Prohibits any Fiscal Year 2003 funds from being used for research on or procurement of nuclear-tipped interceptors [Section 226].

REPORT ON NUCLEAR-TIPPED INTERCEPTORS:

• House: Required National Academy of Sciences report on the effects of use of nuclear-tipped interceptor on a major U.S. city.
• Senate: No provision.
• Conference agreement: Dropped the report.

NUCLEAR-RELATED PROVISIONS

NUCLEAR BUNKER BUSTERS - ROBUST NUCLEAR EARTH PENETRATOR (RNEP):

• Administration request: $15.5 million the first year of a three-year feasibility study for a nuclear bunker buster
• House: Funded the $15.5 million program for research and requested a National Academy of Science study on the likely effects
• Senate: Required a report on the military requirements and use doctrine for the Robust Nuclear Earth Penetrator; did not authorize the requested $15.5 million for research
• Conference agreement: Authorized $15.5 million, but the funding will not available for obligation until 30 days after the submission of the report required by the Senate provision, including the requirements for such a system and the potential for conventional alternatives ; House National Academy of Sciences study provision retained [Sections 1032 & 1033].

LOW-YIELD NUCLEAR WEAPONS:

• House: Permitted research and design work on such weapons, but prohibited building them.
• Senate: Reiterated the 1994 prohibition on design or development of low-yield (below 5 kilotons) nuclear weapons (Sec. 3134).
• Conference agreement: House dropped its provision.

NUCLEAR TESTING READINESS:

• House: Required the Secretary of Energy to submit a plan for achieving a nuclear test readiness posture of 12 months (Sec. 3145).
• Senate: No provision
• Conference agreement: Approved a study that would examine the cost and schedule necessary to achieve a range of readiness postures from six to 24 months and directed the Secretaries of Defense and Energy to identify an appropriate test readiness posture and the cost and schedule to achieve it.

STRATEGIC NUCLEAR FORCE POSTURE:

• House: Required a report on the U.S. nuclear force structure, particularly in light of Treaty of Moscow limitations of 1,700 - 2,200 deployed strategic nuclear weapons.
• Senate: No provision
• Conference agreement: Accepted House provision, but added a section to require an evaluation of achieving the 1,700 - 2,200 level by 2007 [Section 1031].

TACTICAL NUCLEAR WEAPONS:

• Administration request: —-
• House: No provision
• Senate: Required report on Russian tactical nuclear weapons
• Conference agreement: Dropped the report

NEW NUCLEAR WEAPONS:

• Conference agreement: Requires the Secretary of Energy to identify specifically any funds requested for new or modified nuclear weapons; such a request cannot be buried in some other subject (as happened this year).

TRIDENT II SUBMARINE-LAUNCHED MISSILE:

• Administration request: $586 million
• House: $586 million
• Senate: $586 million
• Conference agreement: $586 million

COOPERATIVE THREAT REDUCTION

Nunn-Lugar/Cooperative Threat Reduction (CTR)/non-proliferation programs

Both House and Senate approved the full $416.7 million requested for the Nunn-Lugar program in the Pentagon budget. Both also approved $1.1 billion for Department of Energy non-proliferation programs.

Major differences:

(Waiver of Restrictions on Use of CTR Funds)

• House: Authorized partial waiver authority only through 2005.
• Senate: Granted the president permanent waiver authority.
• Conference: Authorized full scope waiver for three years [Section 1306].

(CTR Outside the Former Soviet Union)

• House: Prohibited the use of CTR funds outside the former Soviet Union.
• Senate: Authorized the use of a limited amount of CTR funds in countries outside the former Soviet Union.
• Conference: Both provisions dropped with study requirement to determine what authorities are available to respond in an emergency and to identify any additional legislative authority needed.

(Chemical Weapons Destruction in Russia)

• House: Authorized $50 million and makes the other $83.6 million available for either chemical weapons destruction or other CTR projects.
• Senate: Authorized $133.6 million of CTR funds for chemical weapons destruction in Russia.
• Conference: Adopted the House provision

(Expansion of Non-Proliferation Programs)

• House: No expansion of the program.
• Senate: Approved the Domenici-Biden amendment that strengthens and expands Department of Energy non-proliferation programs.
• Conference agreement: Agreed that DOE doesn’t need authority to expand but urges the DOE look at specific areas of expansion

CONVENTIONAL WEAPONS

CRUSADER MOBILE HOWITZER:

• House: Approved the $475.6 million request and stipulated that the funding could not be cut until the DoD conducted an analysis of alternatives
• Senate: Transfer $475.6 million requested by Pentagon into separate account for Army’s future combat system. Army Chief of Staff and Sec. Defense required to submit report on future uses of the funds.
• Conference agreement: Shifted the $475.6 million originally requested for the Crusader to the “Future Combat Systems Non-Line of Sight Cannon.” Funded a cannon to be built by the Crusader contractors and delivered by 2008 — the same year the Crusader is scheduled for delivery.

F-22 AIR FORCE FIGHTER (PROCUREMENT AND R&D):

• Administration request: $4.7 billion (23 planes)
• House: $4.7 billion (23 planes)
• Senate: $4.7 billion (23 planes)
• Conference agreement: $4.7 billion (23 planes)

C-17 AIR FORCE AIRLIFT PLANE (PROCUREMENT AND R&D):

• Administration request: $3.9 billion (12 planes)
• House: $3.9 billion (12 planes)
• Senate: $3.8 billion (12 planes)
• Conference agreement: $3.9 billion (12 planes)

F/A-18 E/F NAVY SUPER HORNET (PROCUREMENT):

• Administration request: $3.1 (44 planes)
• House: $3.1 (44 planes)
• Senate: $3.3 (48 planes)
• Conference agreement: $3.3 (48 planes)

V-22 OSPREY (PROCUREMENT):

• Administration request: $1.2 billion (11 aircraft)
• House: $1.2 billion (11 aircraft)
• Senate: $1.2 billion (11 aircraft)
• Conference agreement: $1.2 billion (11 aircraft)

JOINT STRIKE FIGHTER (R&D):

• Administration request: $3.5 billion
• House: $3.5 billion
• Senate: $3.5 billion
• Conference agreement: $3.5 billion

DDG-51 NAVY AEGIS DESTROYER (PROCUREMENT):

• Administration request: $2.4 billion (2 ships)
• House: $2.4 billion (2 ships)
• Senate: $2.4 billion (2 ships)
• Conference agreement: $2.4 billion (2 ships)

LPD-17 NAVY TRANSPORT DOCK SHIP (PROCUREMENT):

• Administration request: $597 million (1 ship)
• House: $597 million (1 ship)
• Senate: $754 million (1 ship)
• Conference agreement: $597 million (1 ship)

VIRGINIA-CLASS SUBMARINE (PROCUREMENT):

• Administration request: $2.2 billion (1 sub)
• House: $2.2 billion (1 sub)
• Senate: $2.6 billion (1 sub)
• Conference agreement: $2.2 billion (1 sub)

JDAM LASER GUIDED BOMBS (PROCUREMENT):

• Administration request: $226 million (9,880 bombs)
• House: $280 million (12,280 bombs)
• Senate: $280 million (12,280 bombs)
• Conference agreement: $280 million (12,280 bombs)

AH-64 ARMY LONGBOW HELICOPTER (PROCUREMENT):

• Administration request: $895 million
• House: $895 million
• Senate: $895 million
• Conference agreement: $895 million

OTHER PROVISIONS

BENEFITS FOR DISABLED VETERANS (CONCURRENT RECEIPT):

• House: Phases out the limitation over 5 years for about 900,000 of the most severely disabled retirees.
• Senate: Eliminated the ban on “concurrent receipt” with the Levin-Warner Amendment adoption, permitting disabled veterans to receive both their military retirement and veteran’s disability benefits.
• Conference agreement: Provided special compensation for military retirees with 20 or more years of service, who received a Purple Heart or suffered a serious combat-related disability.

EXCEPTIONS FROM ENVIRONMENTAL LAWS:

• Administration request: Sought exemptions from eight environmental laws.
• House: Approved the exemptions.
• Senate: Refused to approve the exemptions.
• Conference agreement: Provided an interim exemption from the Migratory Bird Treaty Act [Section 315].

ABORTION IN OVERSEAS MILITARY HOSPITALS:

• House: Does not grant abortions in overseas military hospitals.
• Senate: Murray and Snowe amendment adopted permitting abortions for military service women.
• Conference agreement: Dropped the Senate amendment.

BOEING 767 TANKER LEASING:

• House: —-
• Senate: Secretary of Air Force can lease tanker aircraft, but only after he submits a report on the leasing and funds are authorized or appropriated
• Conference agreement: Secretary of Air Force can lease tanker aircraft, but only after he submits a report on the leasing and funds are authorized or appropriated or a reprogramming is submitted to Congress [Section 133].