Senator mccain well, good morning. The Senate Armed ServicesCommittee Meets to receive testimony on the department of defenses fullyear 20 budget request. We welcome secretary matus, general dunford, thank you for your leadership of our minimum and in uniform. Before we begin, we all want to acknowledge the service and sacrifice of Sergeant Eric howe, Sergeant William baze, and corporal dylan aldrich. These three soldiers were killed this weekend in afghanistan. But thoughts and prayers of this committee are with their loved ones. The sacrifice of these heroes is a painful reminder that america is still a nation at war. That is true afghanistan or after 15 years of war. We face a stalemate and urgently need a change in strategy and an increase in resources if we are to change this situation around. We also remain committed to a campaign to defeat isis in libya, yemen, iraq, in syria where u. S. Troops are helping to destroy isis and reclaim muscle and rocked up. Meanwhile, threats around the world continue to grow more complex and severe. North korea is closing in on the development of an Intercontinental Ballistic Missile that can target our homeland, and iran continues to destabilize the middle east. Havee same time, we competition. Russia and china are modernizing their military. Those of us charged with the responsibility of providing for the common defense must ask ourselves if we are doing Everything Possible to support our brave men and women in uniform to meet the challenges of an increasingly dangerous in theirsucceed mission question mark i am sad to say that they are not and in response to rising threats, asking the military to do more and give more, but we have given less and less to them. Openingesses statements are a harsh indictment of this failure, but they are right. I implore my colleagues to listen carefully to their testimony and he did their admonition to us. Since 2011, spending caps mandated by the budget control cut in thed to a 23 Defense Budget. These reductions compounded by growing fiscal uncertainty in continuing resolutions have left our military forces with shrinking readiness. It has put the lives of our men and women in uniform at greater risk. The administrations fiscal year ,018 budget request, if enacted could arrest the decline in our military readiness, but ultimately, and unfortunately, it falls short of the president s commitment to rebuild our military. The proposed Defense Budget of 603 billion is both arbitrary and inadequate. Arbitrary because it tops what was written in the budget control act six years ago, in inadequate because it represents is the 3 increase over president obamas defense plan. It is hardly surprising then that the committee has received the list of unfunded requirements from military services totaling over 31 billion, all of which secretary matus testified last night in the house Armed Services committee that he supports. Military Service Leaders have testified to this committee this budget stops the bleeding, but we owe our men and women in uniform more than that. It has been said that this object request focuses on readiness and it is true that the requested funding would make the current force more ready for the next year, but ultimately, readiness is more than training hours and time of the ranges. Real readiness requires sufficient capacity to enable our troops simultaneously to conduct operations, prepare for deployment, rest and refit, and focus on the challenges of tomorrow. Growthdget delivers no in capacity, which means the tont force will continue increase readiness as quickly as produced. True readiness is also modernization. Capabilityage future for present commitments, we will have achieved little, especially at a time when our adversaries are moving at an alarming rate to her road americas military andnological advantage question our ability to project power. Here, too, unfortunately this proposes the old faults choice between readiness and modernization. The fact is 603 billion is not enough to pay for both priorities, which is why the unfunded requirements are heavy additionaland requirements desperately needed. All of this presents this committee and this congress with a significant choice. The administrations budget request is just that. Ultimately, it is our independent responsibility to authorize funding for our military at levels that we believe are sufficient to provide for the common defense. I believe this budget request is a start, but we can and must do better. Possible,not be however, as long as the budget control act remains the law of the land. This Defense Budget request, and the additional funding that our military needs is literally illegal under the budget control act. Damagew has done severe to our military. It has harmed the departments ability to plan and execute budgets effectively and efficiently. Brought our budget appropriation processes to a halt. And worst and worse, we have four more years of bca caps to go. We cannot go on like this. And women in uniform deserve better. It is time to restore capabilities, rebalance our joint force, and renew americas advantage. To do so, we must revise or repeal the budget control act. We must give our troops what they need to succeed today and in the future. The question all of us must answer is, longer will we send our sons and daughters into harms way im prepared before we get over our politics and do our jobs . Thank you, mr. Chairman, for holding this hearing. I want to welcome our distinguished witnesses this morning. Chairman join with the to theng our thanks serve the serviceman who lost their lives and their families. Fiscal year 2018 Trump Administration budget seeks 574 billion in base and contingency operations. As we all know, the budget control act, the bca of 2011, and the sequester are still the and this exceeds the spending cap by 52 billion. Rather than negotiate with , it proposes an increase in defense spending with a 52 billion cut in nondefense spending. It will prevail to prevent leavinghe board cuts, dod in a worse position. We have already had many hearings this year with the military has repeatedly urged us to end the bca caps and in and sequestration. Like chairman mccain, i believe it is time to end sequestration. It has not made our country safer. Neither are these caps what our military needs or the kind of domestic investment we need to keep america strong. Reducingopposed to defense spending. But it is the duty of this committee to carefully review the Budget Proposal to make sure our fighting men and women have what they need to complete their mission and return home safely. Our military personnel have a vision of america and it is our duty to protect that. This robs from peter to pay paul. 17 70 billion from the state departments everest prevent wars, which is the very kind of spending that secretary mattis says is so crucial to our efforts. Includes funding to prevent epidemics like ebola before they reach the u. S. Needsnly our military and two, atesources the same time to turkey on foot with near peer competitors, but we should not do so at the expense of americans. And we have not had the courage to pay forvenues these wars as this nation has historically done. The bca should be defense and nondefense spending has the unfortunate effect of pitting spending categories against each other. It would be better if we consider the needs of our nation has this illicitly. Also, we should look at the Overall National security strategy. Such a strategy has not clearly emerged as we enter the sixth month of this administration. We seem to careen from one Foreign Policy crisis from a not from one Foreign Policy crisis to another, many of which are of the administrations own making. Secretary matus and general dunford, you have been consummate professionals at a tumultuous time, but we face decisions. Uous i look forward to working with you and my colleague as we address important issues. Working withd to the chairman to come to a reasonable agreement this year. Thank you very much, mr. Chairman. Secretarycain mattis, welcome back. Secretary mattis thank you, chairman mccain. Excepthat the committee my written statement for the record. General dunford and david norquist. Thank you for your swift consideration and the senates confirmation of the defense every year nearly one million civilians do their duty, honoring previous generations of veterans and Civil Servants who have sacrificed for our country and it is my privilege to serve alongside them. We in the department of defense are keenly aware of the sacrifices made by the American People to fund our military. Many times in the past, we have eye, andality in the we have built the most capable world. Hting force in the we have no godgiven right to victory on the battlefield. Each generation of americans from the halls of congress to the battlefields have earned victory through commitment and sacrifice. , theet, for four Years Department of defense has been subjected to or threatened by automatic cuts from sequester, the mechanism meant to be so injurious to the military it would never go into effect, but it did go into effect, and as forecast by the then secretary of defense panetta, the damage has been severe, halloween our force. In addition, nine of the past ollowing our h force. In addition, nine of the has 10 years, we have had additional new challenges. We need more support. In the past, by failing to pass a budget on time, congress sidelined itself from its active constitutional oversight role. Resolutions blocked new programs, placing troops at greater risk. Despite the tremendous efforts of this committee, congress as a whole has met the present challenge with lassitude, not leadership. I retired from military Service Three months after sequestration took a plate took effect. I returned to the apartment and i have been shocked with what i have seen about our readiness to no enemy in the field has done more to harm the combat readiness of our military than sequestration. Stoically have shouldered a much greater burden. Growingt address the risk. It took years to get into a situation. It will require years of stable budgets to get out of it. To achievecommittee three goals. First, fully fund our request. A fiscal year 2018 budget in a timely manner to avoid another harmful continuing provide a stable budgetary planning horizon. There are four factors acting on the department at the same time. Must recognize 16 years of war. When Congress Approved the all volunteer force in 1933, our country never envisioned sending to war more than a decade without cause or conscription. America for a long war has placed a heavy burden on minute women in uniform and their families are it a second, on theent force acting department is the worsening Global Security situation the chairman spoke about. Russia in the eye. Reckless rhetoric and provocative actions continued, despite the United Nations sanctions, while iran remains the longest challenge to mideast stability. All the while, terrorists. Hreaten peace in many regions for decades, the United States enjoyed noncontested or dominant superiority in every operating domain or realm. Forces whenloy our we wanted, a symbol them when we wanted, and operate how we wanted. Today, every operating domain air, space, see, undersea, land, and cyberspace is contested. A fourth conference force is rapid technological change. Technological change is one that necessitates new investment and new Program Starts that have whend us by wall by law we have been forced to operate under the continuing resolutions. 4 moments, the rapid pace of technological change, requires stable budgets and increased funding to provide for the protection of our citizens and the survival of our freedoms. I reiterate that security and solvency are watchwords of the secretary of defense. The responsibility of our government is to defend the American People, provide for our security and we cannot defend america and help others if our nation is not both strong and solve it. The department of defense owes it to the American Public to make sure that we spent each dollar wisely. President trump has nominated individuals to bring proven skills to strengthen our departments fiscal fiscal processes to ensure we do so. This first step is underway. For fiscal year 2017 to address vital readiness shortfalls. Shipsircraft in the air, at sea. It will take a number of years to restore readiness. To strengthen the military, President Trump requested a top line for the Defense Budget for 2018. There are five priorities. First, improve fighter readiness. For thein the holes tradeoffs made for 16 years of war, nine years of continuing resolutions and budget caps. The second is preparing for future investment driven by the results from the national workingstrategy we are on now. Our fiscal year 20 budget request censures the nations Current Nuclear deterrent will be sustained and support continuation of the modernization process. The third priority is reforming how the department does business. I am devoted to getting all value for every taxpayer dollars spent on defense. We have begun implementation of a range of initiatives directed by the 2017 National Defense authorization act and we are on track to enter into a full byionwide audit as required statute. I urge congress to support the request for authority to conduct. Realignment and closure i recognize the careful deliberation members must exercise in considering this. Most nimbleof the and an efficient programs we have. It will generate 2 billion or more annually and over a fiveyear timeframe, that will more helicopters, planes, submarines. The budget request is keeping our people. Talented people are the most valuable asset but we must balance the requirements for investment and people against other investments critical to modernizing the force to ensure the military is the most capable fighting force in the world. Compensation, retirement, the family programs are essential to fielding the talent we need to sustain our Competitive Edge on the battlefield. The fiscal year 2018 president ial budget requests 64 point 6 billion, focusing on the operations in afghanistan, iraq, syria. Sustainng efforts to nato efforts to deter aggression and global counterterrorism operations. Isis and other terrorist organizations represent a clear and present danger. We will share the burden of this campaign. Moving forward, the fy 2019 nationalformed by the Defense Strategy will have to make hard choices as we shape the 20192023 program. We will work with President Trump, congress, and this committee to ensure future requests are sustainable and provide the commanderinchief with Viable Options that support american security. In summation, first i need the vca caps lifton and a budget. Not a continuing resolution passed on time. Continuing so we can provide a stable way ahead. Following,ider the for 2017 as a supplemental we asked for 30 billion in the congress provided 21 billion for our administration to shortfalls. Iness second, this fiscal year President Trump has requested 574 billion plus 29 billion in the department of Energy Budget plus 65 billion to oversee contingency operations. This is a 5 growth over what the department had for 2017. Billionuest is 52 above the budget control act defense caps. We have underway at this time a National Security strategy review and that will give us the analytical rigor to come back to for the fy 19fy 23 budget request when we will build up that theary request chairman and i have laid out and our statement. I am aware each of you understand the responsibility to ensure the military is ready to future. Day and in the i need your help to inform your fellow members of congress about the reality faced an hour military and the need for congress as a whole to pass the Defense Budget on time. Thank you members of the committee for your strong support over many years and for ensuring our troops of the resources and equipment they need to fight and win on the battlefield. I pledge to warn a closely with you in our joint effort to keep our armed forces second to none. Thank you ladies and gentlemen. Toirman dunford is going discuss the requirements. Chairman dunford thank you. It is because of the men and women in uniform that i can say with confidence that our forces remain the most competitive in the world. The advantage we of enjoyed for a long time though has eroded. 9 11, and extraordinarily hasvel of operational accelerated the wear and tear of equipment. Meanwhile, the department has been forced to operate with far less resources required. We prioritize Maritime Readiness at the expense of replacing other equipment and capability development. We also have a force that consumes readiness as soon as we build it. Ability to maintain our current requirements while maintaining full spectrum readiness. We have addressed the dynamic and the testimonies and i fully agree. We are confronted with a challenge i assessed to be more internal. We have been focused on the threat of extremism and our adversaries have developed other approaches specifically designed to limit our ability to project power. They recognize that as a critical capability necessary to defend the homeland, advance our interests, and meet commitments. Has a widena, iran maritime,yberspace air, and land capability specifically designed to employee our forces. Russia and china have a Nuclear Arsenal and north korea is trying to get a nuclear icbm that could reach