Secretary matus and general dunford, i hope you will provide insight on what the strategy may be. What are we getting ready for . What are the priorities . That is not a hard question an important question if we are being asked, it is a Readiness Package the department is wont improve readiness and it is disconnected from strategy the administrations package proposes 18 billion in cuts to nondefense programs to offset military spending. The administration provided no detail on these cuts but we know what is on the shopping the block. There are extremely reckless cuts for agencies in the state department for next year. Jeopardizing the nations ability to deal with crises without resorting to arms. I wish the white house listens to then general jim matuss views on the state department. As commander of Us Central Command general matus stated if you dont fund the state department fully, there needs to be more ammunition ultimately. The harm will go beyond hurting National Security. Some of the cuts could cut into medical research, something many of us feel strongly about. Education and everything in between. Our armed forces depend on healthy, welleducated American Workers to sign up and serve our country. The programs will shrink the pool of americans who can serve the military making these proposals today very shortsighted. The Administration Says nothing about sequestration. Oh he has submitted it would trigger an immediate cross the board request ration of military programs, more money triggering a. It allows for defense, changing the underlying mendacious sequestration law. On is asking then the law allows and we need to do more about it. Previous administration is frequently, but not this administration. President trumps proposal is complete and doesnt address this issue in a serious way. We all recognize there are holes in the armed forces the need to be fixed. I hope you go further to explain these. Congress needs to know why you think this is a spending package that needs to be fixed. Considering problems with this proposal, cuts to the dramatic spending, lack of modest funding for increased training and lack of fixed sequestration, the appearance congress may consider significant changes but flora, im in the judiciary hearing with Supreme Court nominee and on the docket in a few minutes. I promise to return. Thank you, senator. Welcome to the committee, witnesses, we appreciate your being here, the secretary of defense, james madison. Chairman cochran, vice chairman derman, disinterest senators, i appreciate the opportunity to testify today in support of the president s request for additional funding and matters of interest to the committee. I request the committee accept my statement for the record. As you know, the president is committed to strengthening our military. The security situation facing the country has become more challenging, the looming threat of outstripped the level of we have been allocated for defense. We and the public are keenly aware of the sacrifices made by the American People in the form of additional 30 billion budget requests. We take seriously the responsibility to spend wisely this minute, enhance emerging threats and recognize hesitation now to in west in defense with deep in that strategic mismatch between future security and military means to protect our people and freedoms. Our military must ensure that the president and diplomats always negotiate from a position of strength. Global threats require Global Response applying the weight of our own and our allies power. Diplomatic solution will remain our preferred options which we cannot deny the role of our military heading conditions for diplomatic progress. Military deterrence is only credible if military strength is sufficiently formidable, allies confidently align with us in tempering adversary designs. We must look reality in the eye to see russia and china seeking veto power over the economic, diplomatic, security decisions for nations on the periphery. Terrorist groups murder the innocent and threaten peace in many regions and target us. North koreas reckless rhetoric and provocative actions continued despite United Nations center and sanctions calls for department making it a safe and secure Nuclear Deterrence, a conventional force that can also fight your regular enemies since our military be able to counter all threats facing us. Im here to request your support for the additional 30 billion request for fiscal year 17. We will outline what this funding will do for the Nations Defense but the reason we are appearing here cannot be considered in isolation. Some might prefer larger amounts of the several compelling factors convince us to limit the requests. It is late fiscal year and 30 billion is the number we believe we can execute responsibly. In concert with this budget request we must have continuity of effort that is not possible under another continuing resolution. Only and fy 2017 appropriations bill can permit us to spend the american taxpayer money judiciously and start us on the long road back to military readiness and ensure we can fight effectively. There are specific readiness gaps across our forces which i would prefer to address in closed session so as not to embolden our enemies lose the request before he represents the first step in a three phase multitier effort to restore readiness. Phase i, including 30 billion request for appropriations for to 17. To get our aircraft, and troops back to the field, and proper training. We base this request on a realistic appreciation of capacity we need to fight and win on the battlefield. Phase 2 starts our fy 2018 budget requests for balancing the defense program. This will allow us to acquire capabilities we do not have work cannot execute this fiscal year and allow us to adapt to the changing character of war by providing cyberspace and Electronic Warfare capabilities. Phase 3 looks beyond 2018, work with congress and this committee to integrate our fy 201923 budget in a coherent strategy to ensure it is fit for its time to initiate the Defense Strategy review directed by this congress to reimagine the teaching concepts in all areas which and a framework that forms the longterm planning. We have to make hard choices. We can build a force that is more equal without facing the burden on the american economy. Sustained commitment, and regular on time budget. Thank you for your strong support. And they will fight and win on the battlefield. I pledge to collaborate closely with you for defense of our nation and to keep our armed forces second to none and i welcome your questions, thank you. Thank you. General, the chairman of the joint chiefs of staff is here today and welcome you and ask you to make an Opening Statement. Distinguished members of the committee, thank you for the opportunity to appear before you we submitted a written statement requesting to accept the record. It will be printed in the record. Representing men and women in uniform, because of our soldiers, sailors, airmen and marines that i begin this morning by saying with confidence your joined forces defend the homeland and our way of life Meeting Alliance amendment and maintain overall competitive advantage over any potential adversary. That is an important point to begin with it shouldnt be lost on our adversaries, allies or workers on the American People. We have a competitive advantage, sustained operational commitments, budget instability, advances by our adversaries that he wrote it that advantage was 50 years of war have taken a toll on our people and equipment. Many of our men and women continue to deploy as much, similarly our platforms, weapons and that are showing signs of wear as we far exceeded the plan, service life for our vehicles, aircraft and ships. Eight years of continuing resolutions in the absence of predictable funding the department to prioritize nearterm readiness at the expense of modernization and advanced Capability Development. We face what has been described as the wave of modernization requirements for nuclear and conventional forces. Potential adversaries accelerated Capability Development and challenge our advantage in critical areas like space, cyber, Electronic Warfare and missile defense. It is important to reverse the trend is the fy 17 budget request is a muchneeded first step helps the joint force address the urgent nearterm readiness concerns by funding operations addressing personnel shortfalls resourcing training and improving our message. Edition request for resources also allow limited quantities of needed equipment to fill holes in deploying units. In fiscal year 18 and beyond, sufficient and predictable funding will require readiness, balance our inventory of capabilities and maintain competitive advantage. I look forward to your questions. Thank you. Me ask about the timeline hands the pressures we face in bringing this bill to the attention of all our members the committee and senate, your judgments, what is the impact if congress does not 5. 1 the operations, would you have the funding flexibility to conduct accelerated counterisis fight . Forces in the field at the top of their capability, not only military obligation but oral obligation and we continue the fight, it would eat our readiness and deep in the hole that we are in leaving us in a worse situation, more to get out of it in the future and we have done for several years where we continue to maintain the operational tempo but without the sufficient readiness funds to keep forces back here at home at the top of their gang. Let me pass this to the chairman for his thoughts. Two things we looked into moving forward, one is to accelerate our campaign and the other is to position ourselves to other opportunities. From my perspective, not having the money will restrict our ability to accelerate the campaign and sees opportunities. We will make sure those men and women we deployed in harms way have the wherewithal to come is the mission but we wont be postured to have the ability needed for Great Dynamic correct to an enemy or smack. What is your assessment of the russian aggression and investments we will need to reassure our european allies . Russia has decided to become a strategic competitor with us. I mentioned in my Opening Statement tried to achieve Veto Authority over diplomatic and security interests of the nations along the periphery. What we have got to do is ensure Nato Alliance stands firm and stands united and stands unambiguously for unified response to any kind of russian adventurism such as we have seen in idea and the ukraine and the mischief they are causing inside the elections in europe that are ongoing. If we dont have the funding to the Insurance Initiative the reassurance goes away. Denying a reality that revealed to us over the last several years. I strongly endorse the initiative and the Nato Alliance reversed reduced funding and funding that has risen for the first time. They are also online maintain their level of commitment. I recognize the distinguished senator. I ask my staff to explain this to me twice to make sure i understood it. Under the budget control act you the 5 billion more than the department of defense of the request, the budget control act required the department of defense to do a 5 acrosstheboard cut to make up for that 25 billion being sent to you. That makes no sense whatsoever. My question is this. Did you consults with omb before the supplement the request was made to congress . We consulted extensively on requirements, the mechanism to address this, i would take no issue with how you characterize the effect of sequestration. Im aware of it and not something i can give you a solution for from my position in the executive branch but i can share your assessment and take no issue with how you characterized it. I dont blame you for this. I dont know why they are playing this game. They need to waive the budget control act and provide more money to the government of defense of the United States. I dont know why we are wasting our time with this hearing. Let me ask about civilian hiring announced by president. This hiring freeze affects the civilian workers at the department of defense was there are 742,000 civilian workers, 1. 3 million active and women. On january 23, 2017, President Trump issued a hiring freeze of the federal civilian workforce at the department of defense. How is this hiring freeze impacting the department of state today operations . How will it come to readiness and investments for a national defense, are we hiring contractors to avoid this freeze . We are not hiring contractors was that would violate the spirit of the president s order but i have been given and in the past delegated liberal exceptions authorities, waivers, to keep shipyard workers, aircraft depot workers on the job, everything down today care workers know that our troops can drop their kids off and be at work on time. We had to do a rather the waiver policy to address this and so far has kept us hiring freeze is a great headline. When it comes to a hiring freeze in the the promise of defense at the same time we are being told to give 30 billion more because we need more resources to get ready to protect america doesnt work. The civilian employees, i hope you will agree with me, are an important part of our national defense. Im glad to hear youre being exemption. I hope you dont turn to dramatically more expensive contractors to fill in the voids. When i went to europe a month ago to visit lithuania and ukraine they are very worried, they were encouraged by statements you made and statements by mike pence munich some relief that nato was alive and well. You talked about russian adventurism or however you characterize and they limit every day, they can look across the border at the plant military exercise of 100,000 Russian Troops and see some real threats to the borders of the countrys i just named. I want to know why in your supplemental request there isnt money being set aside, more money set aside for the European Reassurance Initiative . We prioritized the request for what we could execute this year. The second point, as you know, there are four framework nato nations, United States, canada, germany, etc. That are mounting reinforce italian combat teams in poland, lithuania, latvia, to make a clear demonstration of natos firm and unified response for further adventurism by russia. This is a time when miscalculations can occur. We need to make certain our scout does not miscalculate and we lead with the right sort of unified action out of brussels that permits us to send clear and unambiguous message to the russians. Recognize the distinguished senator from alabama. Mister secretary, always a general, we have a few minutes here, but would you briefly sum up our strategic challenges, if you can . Our challenges asymmetrically and how do we meet them . You are in the right committee and we have a history of supporting defense and i believe we will hear. The American People needs to know the challenges you face as secretary of defense. The most important issue i deal with is how do we keep a high quality all volunteer force be capable of carrying out its responsibilities. The strategic challenges i would lay out in a couple packages. One we have great powers, russia and china, very different powers adopting different modes but challenging the International Situations because we put together an environment for peace and prosperity. You see it with both of their efforts to revoke or veto the security of the economic and diplomatic interests of nations on the periphery. In russia we see it with little green men passing out passports to russianspeaking people in other countries and undercutting democratic processes. In the south china sea, we see china shredding trust as they adopt a tribute nation kind of approach where all other nations have to pay tribute or acquiescence more powerful nation, the larger nation. We also see in the case of north korea and iran a proliferation issue, one that has been delayed in iran but we see reckless behavior on the Korean Peninsula unsettling the northwestern Pacific East Asia area. That we deal with the terrorist threat. This we will be dealing with for a long time to come. That would be a thumbnail. I see strategic challenges. What about the cyberchallenge . That is something we have to get our hands on. Each all three aspects, Nuclear Command and control, regular writing, space operation, cyberoperations, these are inherent to everything we do today. What are we going to have to do to keep all our troops combat ready . We need flexibility when we mentioned this earlier but also sources. A few things in the budget commission, at a much higher level than planned the other areas, ammunition, and reduce the stress i spoke about. Many people, and equal amount of time, u. S. Navy ship underway in previous 12 months 70 of the time, an important Ballistic Missile defense capability, indicator, running pretty hard. We look for some equipment in this and in some cases we dont have equipment, literally shadows, resources to maintain the equipment, get spare parts where they need to become have the ammunition response to replace equipment and the aviation enterprise, units have fewer aircraft than they wait they dont have what they need to go to war. They dont have sufficient aircraft to train and readiness as a result of sufficient aircraft. As a bottom line, cant be accountable for the defense seconds to none. We got to pay for it. They, senator shelby. And they will strengthen the American Military and strengthen allies about the burden being carried by the american taxpayer. And what they say spending the money