NTU urges all Representatives to vote “NO” on H.R. 1735, the National Defense Authorization Act (NDAA) of 2016. This legislation falls far short of the fiscal restraint and reform taxpayers urgently need.
H.R. 1735 does contain some improvements over current law such as enhanced protections for military whistleblowers and some modest steps toward compensation reform via the limits on some pensions and the expansion of portable Thrift Savings Accounts to all enlistees; however without a more comprehensive approach, these changes will achieve insufficient savings for taxpayers in the long-term. Sadly, rather than pursuing substantial prioritization and efficiencies, the NDAA resorts to gimmicks in order to keep spending authorizations within the caps mandated by the Budget Control Act of 2011.
The legislation authorizes an unjustifiable Overseas Contingency Operations (OCO) account plus-up of $38.3 billion over the Pentagon’s original $50.9 billion request. These additional funds are earmarked for the so-called “Overseas Contingency Operations for Base Budget Requirements,” which the Congressional Budget Office notes “in recent years have counted against defense caps.” Also of grave concern is the Sea-Based Deterrence Fund, another budgetary gimmick which would shift funding for the Navy’s Ohio-class submarine replacement to the general Defense-wide procurement budget. The result is increased pressure on the Pentagon’s overall financial structure, while leaving the Navy’s ship-building monies intact for other projects. Deeming this program a “national asset” opens the door for other branches to shift spending toward darker corners of the general budget, masking the true cost of procurement.
H.R. 1735 once again rejects the next Base Realignment and Closure (BRAC) round, an initiative that would increase efficiency and reap savings for taxpayers. The legislation also rejects common-sense personnel benefit reforms concerning TRICARE, housing allowances, and commissaries. Lawmakers could have found much-needed savings by avoiding authorizations that were unrequested ($2.2 billion) or from the Pentagon’s Unfunded Priorities “wish list” ($2.7 billion). This wasteful spending includes $30 million for an East Coast Missile Defense site, a project that has been repeatedly rejected by the Administration and Pentagon officials as unnecessary. Worse, extra resources would underwrite six F-35Bs for the Marine Corps, despite serious questions that have been raised by the Government Accountability Office, Director of Operational Test and Evaluation, and Department of Defense Inspector General regarding whether the Corps can meet the upcoming initial operational capability deadline. Savings could likewise be achieved by not authorizing $345 million for construction of the Mixed Oxide Fuel (MOX) Fuel Fabrication Facility (which is far over budget, has no customers, and threatens even higher future liabilities) or slowing the procurement of the troubled Littoral Combat Ship (LCS).
While lawmakers should be applauded for attempting some acquisition reform, the proposal is not adequate to address many of the problems we see in the F-35, LCS, and Amphibious Combat Vehicle programs. For instance, new loopholes could give contracting officials leeway around the lowest price standard and avoid essential testing that protects taxpayers and troops from flawed or underperforming systems.
Still, lawmakers have the opportunity to improve on the underlying legislation and to that end, NTU urges Representatives to vote as follows on amendments to H.R. 1735:
NTU will consider “YES” votes on the following amendments to be the pro-taxpayer position:
- Amd. 2 (filed as #201)/ Polis (D-CO): This amendment would reduce from 11 to 10 the statutory minimum requirement for the number of operational carriers that the U.S. Navy must have, increasing flexibility for the branch and helping to ensure active carriers are fully utilized. A 2011 CBO report suggested that the “Navy could carry out its mission with fewer aircraft carriers.”
- Amd. 32 (filed as #246)/ Blumenauer (D-OR), Polis (D-CO): This amendment would require funding for the Navy’s new Ohio-class replacement submarines to come from their traditional Navy accounts, instead of the Sea-Based Deterrent Fund. This type of funding shift could open the door to further accounting gimmicks that mask the true cost of procurement. This amendment will be significantly weighted.
- Amd. 33 (filed as #271)/ Mulvaney (R-SC), Van-Hollen (D-MD): This amendment would instruct the Comptroller General of the United States to submit to Congress a report on how OCO funds were used. In light of the extraordinary plus-up in OCO spending, it is more critical than ever that the account be subject to increased scrutiny. This amendment will be significantly weighted.
- Amd. 83 (filed as #8)/ Burgess (R-TX), Schakowsky (D-IL), Lee, Barbara (D-CA): This amendment would require a report ranking all military departments and Defense Agencies in order of how advanced they are in achieving auditable financial statements as required by law. As the largest agency in terms of discretionary spending it is essential that the Department of Defense make a full accounting of how taxpayer dollars are spent.
- Amd. 96 (filed as #298)/ Walberg (D-MI): This amendment would require the Special Inspector General for Afghanistan Reconstruction (SIGAR) to certify they have access to records of the Afghan government for the purpose of auditing as a condition for disbursement of funds to Afghanistan. So far, SIGAR has identified billions in dollars of waste; it is essential that SIGAR have as much information as possible to conduct thorough investigations and prevent further misuse of funds.
NTU will consider “NO” votes on the following amendments to be the pro-taxpayer position:
- Amd. 35 (filed as #210)/ Lummis (R-WY), Zinke (R-MT), Cramer, Kevin (R-ND), Smith, Adrian (R-NE): This amendment would require the U.S. to maintain 450 ICBM silos at an elevated alert posture in perpetuity rather than giving the Air Force the flexibility to respond to future fiscal and security priorities.
- Amd. 115 (filed as #140)/ Engel (D-NY): This amendment would stall important reforms and reduce the ability of the Pentagon to respond to changing needs, by forcing the Pentagon to generate unnecessary reports.
Roll call votes on H.R. 1735 and the above amendments to H.R. 1735 will be included in our annual Rating of Congress; a “NO” vote on H.R. 1735 will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700