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NDAA for Fiscal Year 2017

Legislative Analysis

H.R. 4909

Overview

In the early morning hours of 28 May 2016, Congressman Mac Thornberry, Chairman of the House Armed Service Committee passed the House version of the NDAA by a 60-2 vote, which is now headed to the House floor for final passage before being sent to the Senate.  The President’s Budget (PB) request for Fiscal Year 2017 (FY17) included $582.7 billion for the base budget of the Department of Defense (DOD), and $58.8 billion for Overseas Contingency Operations (OCO).  This is an increase of $2.2 billion above the President’s budget request sent during the FY 16 negotiations.

Highlights of the house bill include an across the board pay raise of 2.1% for military personnel and $3 billion for 14 more F/A-18E/F aircraft for the Navy and a $2 billion plus-up to the Navy’s shipbuilding budget.

There are a number of variations that we expect to see as we go into the Senate mark up of their version of the request, especially pertaining to OCO funding levels.  These variations are likely to drag out into the conference negotiations before being sent to the President for his final approval.  It is likely that a deal will be struck in an effort to appease the President, following his numerous veto threats.  Most notably, advanced procurement funding levels for certain aircraft and ship platforms may be significantly lower than what both the House and the Senate agreed on, i.e. Litoral Combat Ships, Ohio Class Replacements, F-35’s & F/A-18 E/F ‘Super Hornets.’

U.S. NAVY AND NAVY RESERVE END STRENGTH

H.R. 4909 contains the U.S. Navy and Navy Reserve end-strength as follows:

End Strength

FY16

FY17 Budget Request

Active Duty U.S. Navy

327,300

322,900

U.S. Navy Reserve

57,400

58,000

Operation and Maintenance Authorizations

United States Navy FY17 Base Funding- Operation and Maintenance (O&M), in the funding table of Section 4301, includes $38.9 billion for O&M Base Funding.  The President’s Budget request includes $39.4 billion for Navy O&M.

U.S. Navy Account FY17 Budget Request House Approved Increase/Decrease from Budget Request
O&M

39,483,581

38,908,981

-574,600

                                                          All dollars listed in thousands.

United States Navy Reserve FY17 Base Funding- Operation and Maintenance (O&M), in the funding table of Section 4301, includes $927 million for Navy Reserve O&M.  The President’s Budget request includes $901 million for Navy Reserve O&M.

Navy Reserve Account FY17 Budget Request House Approved Increase/Decrease from Budget Request
O&M

927,656

901,056

-26,600

                                                        All Dollars Listed in Thousands 

Military Construction Authorizations

United States Navy and Marine Corps FY17 Military Construction Funding (MILCON), in the funding table of Section 4601, includes $1.39 billion for Navy and Marine Corps MILCON Funding.  The President’s Budget request includes $1.02 billion for Navy and Marine Corps MILCON funding.

U.S. Navy Account FY17 Budget Request House Approved Increase/Decrease from Budget Request
MILCON

1,027,763

1,394,679

366,916

                                                     All Dollars Listed in Thousands

 United States Navy and Marine Corps Reserve FY17 Military Construction Funding (MILCON), in the funding table of Section 4601 contains $38.5 million for Navy and Marine Corps Reserve MILCON.  The President’s Budget request includes $38.5.5 million for Navy and Marine Corps Reserve MILCON.  This fully funds the President’s FY13 Budget request.

Navy Reserve Account FY17 Budget Request House Approved Increase/Decrease from Budget Request
MILCON

38,597,00

38,597,000

0

                                                       All Dollars Listed in Thousands 

Overseas Contingency Operations, Operation and Maintenance Authorizations

United States Navy FY17 Overseas Contingency Operations (OCO) Funding- Operation and Maintenance (O&M), in the funding table of Section 4302, contains $3.1 billion for Navy OCO- O&M Funding.  The President’s Budget request includes $5.3 billion for Navy OCO-O&M funding.

U.S. Navy Account FY17 Budget Request House Approved Increase/Decrease from Budget Request
OCO- O&M

5,345,875

3,119,357

-2,226,518

                                                         All Dollars Listed in Thousands

United States Navy Reserve FY17 Overseas Contingency Operations (OCO) Funding- Operation and Maintenance (O&M), in the funding table of Section 4302, contains $15.8 million for Navy Reserve OCO- O&M funding.  The President’s Budget request includes $26.2 million for Navy Reserve OCO-O&M funding.

Navy Reserve Account FY17 Budget Request House Approved Increase/Decrease from Budget Request
OCO- O&M

26,265

15,817

-10,448

                                                           All Dollars Listed in Thousands

NATIONAL GUARD AND RESERVE EQUIPMENT ACCOUNT

The National Guard and Reserve Equipment Account (NGREA), which the President’s Budget request never allocates funds for, is a Congressionally added account for the Reserve Component to acquire otherwise unspecified essential modifications and updates to much needed equipment, is allocated in the funding tables of Section 4101 for Procurement, a total of $250 million.

To view AUSN’s summary, click here.

To view the House NDAA in it’s entirety, click here. 

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