The Senate Appropriations defense subcommittee on the militarys readiness and the upcoming fiscal budget. It was on the income overseas offensive and defensive abilities. Many of them related to the 2011 budget control act. This is about an hour and 45 minutes. The subcommittee on defense appropriations on the United States senate will come to order. Today we are receiving an update on military readiness and Defense Budget matters. Were pleased to welcome to the committee the honorable james m. Mattis, secretary of defense. General Joseph Dunford jr. , chairman of the joint chiefs of staff. The fiscal year 2017 department of defense appropriations agreement has been approved by the other body in the house of representatives. And i look forward to our completing work on that bill in the coming weeks. Were well into the fiscal year and members of the subcommittee understand the poepimportance o enacting appropriations. As we complete our work on the 2017 defense agreement, we also recognize that a request for additional appropriations in fiscal year 2017 has been submitted to the congress. We welcome comments from our panel and as well as on the submission for 2018. Its a distinct honor to have the secretary of defense before us in his first appearance as secretary. I also am pleased to welcome back to the chaeirman of the joint chief of staffs before the commit eech committee. We look forward to hear about your plan to increase military readiness and strengthen the department of defense. Turn to the vice chairman senator dur ban for any opening remarks that he has. Thanks chairman cochran. I welcome secretary mattis and general dunford. I have tremendous respect for both of these leaders and give special respect to secretary mattis. Our nation has been at war for 16 years and the toll of these conflicts can be measured in more ways. More than 6,900 americans have given their lives in iraq and afghanistan. More than 52,000 wounded. Our va clinics and hospitals are serving 2. 5 million veterans of these wars. 1. 8 trillion to support the men and women who continue to serve overseas. Its not surprising that we find our armed forces are currently under strain. But the evidence is moupting that its not necessarily decade and a half of war that is straining our military but instead a selfinflicting congressional wound, called sequestration. It limited 35 billion from the department of defense base budget virtually overnight. The shockwave of these cuts which were never ever supposed to happen rippled through the training readiness of our military such that the military services estimated it will take until 2020 to fully recover from sequestration. We could take off through we could take off through sequestrations impact, the jobs in our Economic Growth just as easily because it hit just as hard on deposition spending. The administration has proposed 30 billion in additional defense spending. 25 billion to build readiness, 5 billion to increase spending on afghanistan and counterisil campaigns. Congress has already addressed 5 billion of the requested funds in the pending defense appropriations bill. Of the remaining funding only about 8 billion 8 billion is for near term training and maintenance. In addition we are not being told that this package will accelerate the timeline for the services to fully recover their readiness. Number two. The 5 billion in overseas Contingency Operations funding is being requested without a strategy to support it. In fact, the president s new counterisil tragedy may not be presented to congress until may of this year. Secretary mattis, and general dunford, i hope you can provide insights on what this tragedy may be, what are we getting ready for, what are the priorities . Thats not a hard question. Its an important question if we are being asked to appropriate this money. In short, its a read aniness package the Department Says wont approve and a war recourse kiss connected from a strategy. Third, the Administration Package proposes 18 million in cuts to nondefense programs. The administration has provided no detail on these cuts but we all know whats on the chopping block. The white house is already proposing extremely reckless cuts to agencies like the state department for the next year, which would jeopardize our nations ability to deal with crises without resulting to arms. I wish they would have listened to mattis then. General mattis stated if you dont fund the state department fully, then i need to buy more ammunition ultimately. End of quote. But the harm will go well beyond hurting our National Security. Some of the cuts could cut into medical research, something that many of us on this panel feel very strongly about, education and everything in between. Our armed forces depend on healthy, welleducated American Workforce to sign up and serve our country. Cutting these programs will ultimately shrink the pool of americans who can serve in our military making these proposals today and in the long term short sighted. Finally, the administration does nothing about sequestration. If congress enacted this package tomorrow as is, omb submitted it, it would trig an across the board sequestration of military programs. Can you believe it . More money triggering a cut . Omb is asking to spentd more than the law allows on defense but didnt ask us to address this sequestration law. Omb is asking to spend more than the law allows and we need to do something about it. Previous administrations did this frequently when asked this request but not this administration. President trumps request is incomplete and doesnt address this issue in a serious way. Mr. Secretary, general dunford we recognize that there are holes in the defense. Congress needs to know why you think this is a spending package that needs to be passed. Considering the problems with this proposal, the cuts to domestic and diplomatic spending, the act for counterisil spending and the lack of sequestration, the Congress Needs to consider significant changes. Let me say as i close, one floor up im on a Judiciary Committee hearing with the supreme nominee. Ill be on the docket. Excuse me if im gone, i promise to return, whether you want me to or not. Thank you, senator. Welcome to the committee witnesses, we appreciate your being here. Well now hear from the secretary of defense, james mattis. Chairman cochran, vice chairman dur ban, distinguished senators, i appreciate the opportunity to address the president s. I ask that the commission accept my statement for the record. Thank you sir. As you know the president is committed to strengthening the military. The security situation facing our country has become more challenge, the looming threats have outstripped the level of resources we have been allocating to defense. We in the department are keenly aware of the sacrifices made by the American People in the form of the additional 30 billion budget request. We take seriously the responsibility to spend wisely this money, to enhance the protection of our nation against emerging threats. We also recognize that hesitation now to invest in defense would deepen the strategy mismatch between our future security and the military means to protect our people and freedoms. Our military must ensure that the president and our diplomats always negotiate from a position of strength. Global threats require a global response, applied in the full weight of our own and allies power. Diplomatic solution will remain our preferred options but we cannot deny the our military and setting the condition for diplomatic progress. Military deterrence is only credible if military strength is sufficiently formidable that allies can confidential align with us in tempering adversaries defense. We see china and russia seeking veto power over the security decisions of nations on their periphery. Terrorist groups murder innocents and target us. North koreas reckless rhetoric and provocative actions continue despite United Nations censure and sanctions. This situation calls for the department to maintain a safe and secure Nuclear Deterrent and a decisive force that can fight regular enemies since our military must be able to counter all threats. Im here to request for 30 billion for fy 17. General dunford and i will outline what this additional founding will do for our nations defense. The reason were appearing here cannot be considered in isolation. While some might prefer more funds, we limit the request. It is late in the fiscal year and the 30 billion is the number we believe that 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 an fy 17 can start us on the long road back to military readiness and ensure we can fight effectively. I must note that there are readiness gaps so i will discuss in closed session. The request before you represents the threephase multiyear effort. Phase one is this years budget appropriation including the 30 billion request for additional appropriates for fy 17. Get our troops and ships back in the ship with proper training. We need the capacity to fight and win on the battlefield. Phase two starts with our fy2018 budget request to balance the defense program. This funding will allow us to acquire capabilities we do not have or cannot execute this fiscal year and will allow us to adapt to the changing character of war by providing cyber space and Electronic Warfare capabilities. Phase three looks beyond 2018. We will work with the congress and this committee to integrate our fy2019, and 2020 budget. To ensure our strategy is fit for its sometime we initiated the review directed by this congress to reimagine our Strategic Concepts in all areas and we will complete the review by this fall and our longterm planning. I know we will have to make hard choices. With the help of the congress we will create a military that is forceful with undue burden. Additional funding and regular ontime budgets. Thank you for your strong support and for ensuring our troops have the resources and equipment they need to fight and win on the battlefield. I pledge to collaborate closely with you on the defense of our nation and keep our armed forces second to none and i welcome your questions. Thank you, general. General Joseph Dunford, the chairman of the joint chief of staffs is here today and we welcome you and ask you to make any Opening Statement. Chairman cochran, ranking member, distinguished ladies and gentlemen. I submitted a report and request that will be accepted for the record. It will be principled for the record. Its because of our soldiers, sailors, air men and marines and your support i can say with confidence that your joint forces can defend the homeland and we will maintain an overall competitive advantage over any potential adversely. I think thats an important point to begin with and a point that shouldnt be lost on our adversaries and American People. We have a competitive today, sustained operation budgets instability and advances by our adversaries have eroded that damage. 15 years of war have taken a toll on our people and equipment. Our platforms, weapons and equipment are showing signs of wear. In many cases weve far exceeded the plan and service life of vehicles, aircraft and ships. Additionally, eight years of continuing resolutions and the absence of predictable funding have forced the department to prioritize. We now face what has been described as a bow wave of mod ternization of our nuclear and conventional forces. Potential adversaries have accelerated Capability Development in space, cyber, Electronic Warfare and missile defense. Its important that we reverse that trend. The fy17 budget plan is a much needed step. It helps us address the readiness concerns by funding poli operations resources. It allows us to procure needed equipment to fill holes in our deploying units. Sufficient and predictable funding will be needed to fully recover readiness, balance our inventory of readiness and maintain the advantage. Thank you for the opportunity before you this morning and i look forward to your questions. Thank you for your statement. Maybe ask you about our timeline and what are the pressures that we face in bringing this bill to the attention of all of our members of the committee and the senate. And in your judgment, what is the impact this is for both of you. What is the impact if congress does not approve the additional 5. 1 billion for overseas Contingency Operations . Would you have the funding flexibility to conduct and accelerated counterisis fight, for example . Chairman, obviously, well keep the forces in the field at the top of their capability. Thats not only a military obligation, its a moral obligation. And we can continue the fight. The problem is it would eat our readiness again and would deepen the hole that were in leaving us in an even worse situation, and it will cost even more to get out of this in the future. We have done this for several years now where weve continued to maintain the operational tempo, but without the backdrop of sufficient funds to keep the forces back here at home at the top of their game, and its worsening as it goes on. Let me pass this to the chairman for his thoughts. Chairman, thank you. There are two things wed like to do as we move forward. One is to accelerate the campaign and two to position ourselves. Not having the money will restrict our ability to accelerate the campaign and seize opportunity. Well lose flexibility. As secretary mattis said well make sure that the men and women who deploy will have the wherewithal to complete the mission. But we wont have thepl flexibility for a dynamic threat. Mr. Secretary, what is your assessment of the russian aggression in europe and the investments that we will need to reassure our european allies of our abilities of function . Chairman, russia has decided to become a strategic competitor with us. And as i mentioned in my Opening Statement to try to achieve a Veto Authority over the diplomatic, economic, and security interests of the nations along their periphery. So what we have got to do is ensure that the Nato Alliance stand firm, it stand united, and stands unambiguously for a unified response to any kind of russian adventurism, such as weve seen in crimea and the ukraine and with the mischief theyre causing inside the elections in europe that are ongoing. If we dont have the funding to maintain the reassurance initiative, then, frankly, the reassurance goes away. Its as if were denying a reality that has been pretty revealed to us over the last several years. So i strongly endorse the european reassertment initiative and i noticed that the Nato Alliance reduced its funding and overall the funding has riaisen for the first time. So theyre on line to maintain then commitment. Im going to recognize the distinguished senator, m mr. Durban. Thank you, mr. Chairman. I asked my staff to explain this to me twice because i wanted to make sure i understood. It under the budget control act, if we give you, lets put oko over here. If we give you 25 billion more in the department of defense in the supplemental request, the budget control act will require the department of defense to a 5 across the board cut in order to make up for that 25 billion thats being sent to you. That, of course, makes no sense what ever so. I cant imagine that you want to go through that exercise. So my question to you is this. Did you consult with omb before this supplemental request was made to congress . Senator, we consulted extensively with them on our requirements, the mechanism for how to actually address this as you point out complicated and i would take no issue with how you recognized the budget control act and the effect of sequence ration. Im aware of it, its not something that i can give you a solution for in my position in the department of defense. And i share your assessment and i take no issue with how youve characterized it. Thank you, secretary. This is ombs job and i dont know why theyre playing this game with us. They need to waive the budget control act if they truly want to provide more money to the budget of defense to the safety and security of the United States. If they dont, i dont know why were wasting our time with this hearing. The civilian hiring freeze announced by the president. This hiring freeze affects the civilian workers at the department of defense. We estimate 742,000 civilian workers, 1. 2 activity members of the military. President trump issued a hiring freeze at the department of defense. How has this hiring freeze impacted the departments daytoday operations . What impact does it have on the resources you will have available when it comes to readiness and the advancements you believe are necessary for a National Defense . And are we hiring contractors to avoid this flereeze . Senator, we are not hiring contracts. I think that would violate the spirit of the president s order. Ive dedicated liberal exceptions authorities, waivers, frankly, in order to keep shipyard workers, aircraft depot workers on the job, everything right down to day care workers so that our troops can drop their kids off and be at work on time. So weve had to do a rather liberal waiver policy in order to address this. And it so far has kept us out of extremis. I now a hiring freeze is a great headline. When it comes to a hiring freeze in the department of defense at the same time were told to give 30 billion more because we need more resources to get ready to protect america, it doesnt work. It doesnt work. The civilian employees, i hope youll agree with me, are an important part of our National Defense. Im glad youre getting these exemptions and i hope theyre adequate and you dont turn to more expensive contractors to fill in the voids. When i went to europe a month ago to visit in poland, lithuania, and ukraine, theyre very worried. They were encouraged by statements that you made and statements by vicepresident pence in munich. That seemed to give them some relief in the in their belief that nato was still alive and well. You t