releases: https://www.mccain.senate.gov/public/index.cfm/press-releases?ContentRecord_id=9DAA6A8F-4F3F-4274-8ED8-87670353CF57
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| https://www.mccain.senate.gov/public/index.cfm/press-releases?ContentRecord_id=9DAA6A8F-4F3F-4274-8ED8-87670353CF57 | STATEMENT BY SASC CHAIRMAN JOHN McCAIN ON NATIONAL DEFENSE AUTHORIZATION ACT CONFERENCE REPORT | 2016-11-30 | 2016 | 2016-11 | Republican | House | AZ | John McCain | M000303 | www.mccain.senate.gov | legacy | Washington, D.C. – U.S. Senator John McCain (R-AZ), Chairman of the Senate Armed Services Committee, released the following statement after the completion of the conference on the National Defense Authorization Act for Fiscal Year 2017, which authorizes funding for the Department of Defense and the national security programs of the Department of Energy: “I am tremendously proud of this NDAA, which provides our troops with the largest pay raise since 2010, begins to reverse the dangerous drawdown of the Army and Marine Corps, boosts investments in rebuilding readiness, firmly establishes innovation as a primary mission of the Department of Defense, and delivers bold reforms on defense acquisition, military healthcare, military justice, and security cooperation. Thanks to these provisions and many more, the NDAA will enable our troops to rise to the challenges of a more dangerous world. “I thank each of my colleagues – Senator Jack Reed, Rep. Mac Thornberry, and Rep. Adam Smith – for their hard work in a collaborative and thoughtful conference process. I am grateful to have such committed partners in upholding the Armed Services Committees’ proud tradition of bipartisan cooperation in support of the brave men and women of our Armed Forces.” ### MAJOR HIGHLIGHTS Providing for the Common Defense The NDAA authorizes a total of $619.0 billion for defense discretionary spending, which is $3.2 billion above President Obama’s budget request. The conference report authorizes $543.4 billion in base funding, including $523.7 billion for the Department of Defense and $19.4 billion for the Department of Energy. The agreement authorizes $67.8 billion in Overseas Contingency Operations (OCO) funding, which includes the $5.8 billion in supplemental funding requested by President Obama for operations in Iraq, Syria, and Afghanistan. The Goldwater-Nichols Act and Reforming the Defense Enterprise This year, the Senate Armed Services Committee conducted a comprehensive review of the roles, missions, and organization of the major actors in the Department of Defense (DOD)—the Office of the Secretary of Defense and the defense agencies, the Joint Chiefs of Staff and the Joint Staff, the Combatant Commands, and the military services. This review was borne out of a general concern that the organization of DOD too often inhibits, rather than enables, the talented people serving there to fulfill their duties at a time of major strategic and technological change. Building on this work, the conferees sought to address the problem of roles and missions in the Department of Defense—clarifying them and ensuring that all players are maximizing their effectiveness and playing their unique roles on the team. Too often DOD and the interagency are hampered by stovepipes, duplications, and lack of communication. This problem requires a recalibration of the roles and missions of the senior officials in DOD, as well as their relationships with each other, to enhance strategic integration across the defense enterprise. Office of the Secretary of Defense The conference report contains a provision to improve strategic integration across functional components of the Office of the Secretary of Defense (OSD). At a time when the Department of Defense faces numerous threats that all span different regions, functions, and military domains, the conferees believed the Secretary of Defense needs better tools to more effectively develop integrated solutions and strategies for critical Department objectives. Functionally-aligned organizations often inhibit, rather than enable, strategic integration. In the case of the Department of Defense, the Secretary and the Deputy are currently the only individuals who can perform cross-functional, strategic integration. To address this problem and help integrate the expertise and ingenuity within the Department’s functional organizations, the conference report includes a provision that would allow the next Secretary of Defense to create and delegate decision-making authority to a series of cross-functional teams to achieve core objectives of the Department. These cross-functional teams would support the Secretary and the Deputy in performing integration more effectively and efficiently. The conferees emphasize that the authority of the cross-functional teams, which will be established and directed by the Secretary and will support the Secretary, derives from the authority of the Secretary. While it is difficult to accomplish cultural change through legislation, the Goldwater-Nichols Act is an example that such change is possible. In that spirit, the conference report promotes a more collaborative culture through such practical steps as training, directives and guidance, and performance reviews. General and Flag Officers The conference report directs a reduction of 110 general and flag officers on Active Duty by no later than December 31, 2022, and the redistribution of authorized general and flag officers across the military departments and the joint pool. The agreement also requires the Secretary of Defense to conduct a study of general and flag officer requirements with a goal of identifying and justifying each general or flag officer position in terms of overall force structure, scope of responsibility, command and control requirements, and force readiness execution. The study will also identify an additional 10 percent reduction in the number of general and flag offices in addition to the reduction in the conference report. This provision is necessary because the size of the general and flag officer corps has become increasingly out of balance with the size of the force it leads. Over the past 30 years, the end-strength of the joint force has decreased 38 percent, but the ratio of four-star officers to the overall force has increased by 65 percent. Especially at a time of constrained defense budgets, the military services must right-size their officer corps and shift as many personnel as possible from staff functions to operational and other vital roles. Staff and Headquarters The conference report includes a provision to reduce the number of Senior Executive Service civilian employees in the Department of Defense commensurate with the reduction to flag and general officers. The agreement also imposes limitations on funds used for staff augmentation contracts in the Office of the Secretary of Defense and the military departments. National Security Council Staff The conference report includes a provision to cap the size of the National Security Council (NSC) staff at 200 over the course of an 18-month transition period. This would not apply to technical and administrative personnel, but rather only to permanently assigned professional staff and detailees from the Department of Defense and other departments and agencies. The NSC was created by the Congress to be a small group of the President’s staff, focused on developing whole-of-government national security strategy and coordinating it across the interagency. The execution of daily operations was to remain with the cabinet secretaries and senior leaders of the departments and agencies subject to congressional oversight. Unfortunately, the past 25 years have brought a consistent and steady growth of the NSC staff—from 40 during the George H.W. Bush administration, to more than 100 in the Clinton administration, to more than 200 during the George W. Bush administration, to reports of nearly 400 under the current administration. In addition to the growth in size, and largely enabled by it, we have seen an expansion of the NSC staff’s role into tactical and operational issues. The conference report seeks to push the NSC staff toward prioritizing the strategic mission that led Congress to create it in the first place. Reforming the Defense Acquisition System For years after the end of the Cold War, the United States enjoyed a near monopoly on advanced military technologies such as stealth, precision-guided munitions, unmanned systems, and the advanced communications that enable network-centric warfare. That is changing rapidly. From China and Russia, to Iran and North Korea, we see militaries that are developing, fielding, and employing long-range precision guided weapons, advanced fighter aircraft, anti-access and area-denial systems, and growing space and cyber capabilities. The result is that we are at real and increasing risk of losing the military technological dominance that we have taken for granted for thirty years. That is why innovation cannot be an auxiliary office at the Department of Defense. It must be the central mission of its acquisition system. Unfortunately, that is not the case with the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics (AT&L). It has grown too big, tries to do too much, and is too focused on compliance at the expense of innovation. Therefore, the conference report disestablishes AT&L by February 2018, and divides its duties between two new offices: a new Under Secretary of Defense for Research and Engineering and an Under Secretary for Acquisition and Sustainment. The job of Research and Engineering will be developing defense technologies that can ensure a new era of U.S. qualitative military dominance. The job of Acquisition and Sustainment will focus on the execution of acquisition functions, ensuring compliance, and lowering risks to taxpayers. These organizational changes complement the additional acquisition reforms in the conference report. The agreement creates new pathways for the Department of Defense to do business with non-traditional defense firms. It streamlines regulations to procure commercial goods and services. It provides new authorities for the rapid prototyping, acquisition, and fielding of new capabilities. The conference report also establishes a preference for fixed-price contracts. The overuse of “cost-type” contracts, and the complicated and expensive government bureaucracy that goes with them, serves as a barrier to entry for commercial, non-traditional, and small businesses that are driving the innovation our military needs. Reforming the Military Health System Building on the work of the Military Compensation and Retirement Modernization Commission, the NDAA initiates a comprehensive reform to modernize the military health system and provide beneficiaries with higher quality care, better access to care, and a better experience of care. These reforms constitute an important first step in the evolution of the military health system from an under-performing, disjointed health system into a high-performing integrated health system that gives beneficiaries what they need and deserve: the right care at the right time in the right place. The conference report includes provisions that expand DOD telehealth capabilities, reform TRICARE healthcare plans, modernize TRICARE medical support contracts, streamline the administration of the Defense Health Agency and military medical treatment facilities, and establish high-performance military-civilian integrated health delivery systems. The conference report upholds the Armed Services Committees’ commitment to maintaining battlefield medicine as a pocket of excellence in the military health system. The agreement seeks to improve trauma care for military servicemembers and other individuals eligible for trauma care at military hospitals by establishing a Joint Trauma System within the Defense Health Agency and a Joint Trauma Education and Training Directorate. This directorate will develop enduring partnerships with civilian academic medical centers and large metropolitan teaching hospitals with level-one trauma centers and embed combat casualty care teams, led by military trauma surgeons, within the trauma centers of those medical centers and hospitals. Supporting the All-Volunteer Force As threats to our nation grow more diverse and complex and impose greater demands on military servicemembers, we are counting on young Americans to enlist or commit to serve in the All-Volunteer Force that defends our security. The NDAA sustains the quality of life for the men and women of the total force and their families and addresses the needs of our wounded, ill, and injured servicemembers. The conference report: Authorizes a 2.1 percent across-the-board pay raise for members of the uniformed services, the largest military pay increase since 2010. Reauthorizes over 30 types of bonuses and special pays aimed at encouraging enlistment, reenlistment, and continued service by active-duty and reserve component military personnel. The conference report also boosts the aviation retention bonus to $35,000 per year up from $25,000 per year. Directs a fair adjudication of cases for members of the California National Guard caught up in the issuance of improper bonuses by holding the Department of Defense responsible for expediting the review process, reaching out to each impacted servicemember, and notifying credit reporting agencies when debts have been forgiven. Authorizes $30 million in supplemental impact aid to local educational agencies with military dependent children and $5 million in impact aid for schools with military dependent children with severe disabilities. Eliminates the different treatment under the Survivor Benefit Plan accorded members of the reserve component who die from an injury or illness incurred or aggravated in the line of duty during inactive-duty training, as compared to the treatment of members of the Armed Forces who die in the line of duty while on Active Duty. Extends the Special Survivor Indemnity Allowance through May 31, 2018. Reforming the Military Justice System The NDAA implements the recommendations of the Department of Defense Military Justice Review Group by incorporating the Military Justice Act of 2016 as amended by the committee. Taken together, the provisions contained in the conference report constitute the most significant reforms to the Uniform Code of Military Justice since it was enacted six decades ago. The conference report: Strengthens the structure of the military justice system. Enhances fairness and efficiency in pretrial and trial procedures. Reforms sentencing, guilty pleas, and plea agreements. Streamlines the post-trial process. Modernizes military appellate practice. Increases transparency and independent review of the military justice system. Improves the functionality of punitive articles and proscribes additional acts. Incorporates best practices from federal criminal proceedings where applicable. Modernizing the Force to Meet Current and Future Threats Arbitrary defense budget caps have forced the Department of Defense to fund growing operational requirements and the expense of modernization and procurement. As a result, delayed modernization and aging equipment continue to have a dangerous impact on the readiness and combat effectiveness of our Armed Forces. The conference report prioritizes modernization to provide critical military capabilities to our warfighters and enable them to meet current and future threats. The conference report: Authorizes $10.5 billion for the Joint Strike Fighter program, including $8.5 billion for procurement of 63 aircraft, including 43 F-35As, 16 F-35Bs, and 4 F-35Cs. Authorizes $2 billion for procurement of 11 P-8 Poseidon aircraft and $185 million for 2 F/A-18 Super Hornet fighter aircraft. Authorizes $5.0 billion to procure 2 Virginia-class attack submarines and provide for advance procurement of future Virginia-class submarines. Authorizes $3.3 billion for the procurement of 2 Arleigh Burke-class destroyers. Authorizes $1.6 billion to procure the next amphibious assault ship, including incremental funding authority for fiscal years 2017 and 2018. Authorizes $1.5 billion to fully support the Ohio-class ballistic missile submarine replacement program. Authorizes an increase of $440 million for procurement of an amphibious transport dock (LPD) or the amphibious ship replacement (LX(R)), including incremental funding authority. Authorizes $264 million for the Tomahawk missile program to maintain production of Tomahawk missiles at the minimum sustaining rate and adds $33 million to boost production of the AIM-9X Block II Sidewinder. The NDAA fully supports the Department of Defense’s request for vital munitions including the Long Range Anti-Ship Missiles (LRASM), Standard Missile 6 (SM-6), and Advanced Medium Range Air-to-Air Missile (AMRAAM). Authorizes $2.6 billion for the procurement of Army aircraft including 52 AH-64 Apaches, 36 UH-60 Blackhawks, and 22 CH-47 Chinooks. The conference report also authorizes $590 million for Army aircraft operational systems development to support the Army’s Aviation Restructuring Initiative. Authorizes $1.6 billion for upgrades to M1 Abrams tanks, M2 Bradley infantry fighting vehicles, and Stryker armored combat vehicles to improve the lethality and survivability of U.S. Army ground combat systems and to deter aggression in Europe. Authorizes increases in procurement and RDT&E funding of $94 million for Active Protections Systems for ground combat vehicles and $211 million for Aircraft Survivability Systems for combat aircraft. Fully supports modernizing the nuclear triad of ICBMs, bombers, and nuclear submarines, and ensuring that U.S. nuclear forces are survivable, well-exercised, and increasingly ready to counter Russian nuclear provocations while reassuring allies. The NDAA also provides full support for Department of Energy programs to extend the life and modernize our nuclear weapons and infrastructure, and to secure nuclear materials and dangerous pathogens worldwide. Addressing the Military Readiness Crisis The combination of rising threats, declining budgets, aging equipment, shrinking forces, and high operational tempo has produced a military readiness crisis. The services are still recovering from the damage inflicted by sequestration in 2013, which in the case of the Air Force may take more than a decade. Through a combination of added funds and redirected savings identified in the President’s budget request, the conference report directs $4.6 billion to reduce training shortfalls, support weapons maintenance, and sustain facilities. Critically, the conference report stems the drawdown of military end strength that has exacerbated the readiness crisis. The agreement authorizes 476,000 soldiers in the Active Army; 323,900 sailors in the Active Navy; 321,000 in the Active Air Force; and 185,000 marines in the Active Marine Corps. Demanding Accountability and Transparency in Service Acquisition Programs Given the increasing diversity and complexity of the national security challenges, our nation simply cannot afford to waste precious defense dollars. To root out and eliminate wasteful spending and improve the Department of Defense acquisition system, the NDAA contains several oversight provisions that ensure accountability for results; promote transparency; protect taxpayers; and drive the Department to deliver our warfighters the capabilities they need on time, on schedule, and at reasonable cost. The conference report: Extends the prohibition on retirement of the A-10 until F-35 Joint Strike Fighter initial operational testing (IOT&E) and evaluation is completed. The NDAA also ensures the F-35 IOT&E includes comparison testing and detailed assessment of A-10 and F-35A abilities to conduct close air support, combat search and rescue, and airborne forward air controller missions. Enhances oversight on the F-35 Follow-on Modernization by imposing reporting requirements similar to major defense acquisition programs. Increases transparency on the B-21 Long Range Strike Bomber program by enhancing reporting requirements on program performance data and ensuring close and continuing oversight by the Government Accountability Office. Limits the availability of funds for the Joint Surveillance Target Attack Radar System (JSTARS) recapitalization program unless the contract for engineering and manufacturing development uses a firm fixed-price contract structure. The conference report allows the Secretary of Defense to wave this restriction if he believes it is in the national security interests of the United States. Limits funds for the Ford-class aircraft carrier program until the Navy establishes lower end cost targets of $11.0 billion and 12.0 billion for the USS John F. Kennedy (CVN-79) and USS Enterprise (CVN-80), respectively. Limits funds and enhances reporting requirements for the Advanced Arresting Gear (AAG) for the Ford-class aircraft carrier, a troubled program that has breached critical cost growth thresholds. Prohibits revisions to or deviations from the current LCS acquisition strategy, which includes procurement of both LCS designs in 2017, a down-select to a single variant no later than 2019, and a reduction in the inventory objective to 40 ships. Requires an annual report on development, production, sustainment, and testing of LCS mission packages. Requires the Department to certify the LCS mission package program of record quantities. Reduces authorization for the LCS by $28 million due to unjustified unit cost growth. Cuts $76.8 million for LCS mission packages due to a program cancellation and delayed operational testing. Reduces procurement authorization for the Distributed Common Ground System-Army (DCGS-A) by over $24 million and directs the Army to acquire a non-developmental, commercially-available solution. The conference report also requires the Secretary of the Army to improve and tailor training for units equipped with the DCGS-A Increment 1. Driving Defense Innovation in R&D A strong and agile research and development enterprise has always been the backbone to defense innovation and to cutting-edge military technology. Throughout history, the defense research enterprise has produced such breakthroughs as advanced nuclear weaponry, precision-guided munitions, stealth technology, and global positioning systems. While the defense research enterprise continues to operate at an advanced level, in recent years it has been hampered by an increasingly restrictive and encroaching set of rules and regulations imposed by the Department of Defense. To begin the process of making the research enterprise more efficient and effective, and to continue to support the high-tech work performed by defense researchers, the conference report: Fully funds the Defense Advanced Research Projects Agency, the Strategic Capabilities Office, and basic research at the level of the President’s budget request. Adds significant funding to accounts meant to drive advancements in the Department’s Third Offset Strategy, including emphasizing the need for enhanced efforts to advance directed energy technology. Makes important changes to lab management, funding, and purchasing policy to allow directors of defense laboratories to operate more autonomously with a view toward efficiency. Makes permanent the Department of Defense Rapid Innovation Program. Strengthening Homeland Security The NDAA takes several steps to bolster the defense of the homeland: Enhances information sharing and coordination of military training conducted on U.S. borders between the Department of Defense and the Department of Homeland Security in order to support military readiness, increase situational awareness of the border by civilian law enforcement, and improve the effectiveness of drug interdiction and border security operations. Authorizes $933 million for Department of Defense counterdrug programs. Codifies the authority of the Secretary of Defense to provide support to federal, state, local, and tribal law enforcement for counterdrug and countering transnational organized crime operations. Authorizes the creation of Department of Homeland Security Joint Task Forces to enhance situational awareness of threats and trends concerning illicit trafficking and to more effectively conduct joint operations to secure the land and maritime borders of the United States. Requires the Secretary of Homeland Security to develop metrics to measure the effectiveness of security along the border, improving the ability to more accurately assess progress in securing the border by using consistent performance measures. Strengthening Cybersecurity The conference report elevates U.S. Cyber Command to a unified command. As our senior military leadership has testified, this step is critical to providing the Commander of U.S. Cyber Command with the necessary unity of command and streamlined decision making. The conference report also prevents the premature termination of the “dual hat” arrangement under which the Commander of U.S. Cyber Command also serves as the Director of the National Security Agency (NSA). The agreement prohibits the Secretary of Defense from terminating the “dual hat” arrangement until the date on which the Secretary and the Chairman of the Joint Chiefs of Staff jointly certify that a number of conditions have been met to include the full operational capability of the cyber mission force. Prior to any decision to terminate the “dual hat,” the provision would also require the Secretary and Chairman to jointly assess the operational dependence of Cyber Command on the NSA; the ability of Cyber Command and NSA to carry out their respective roles and responsibilities independently; and whether a robust and sufficient operational infrastructure, command and control system and processes, and cyber capabilities have been deployed. Supporting Allies and Partners Strong allies and partners are now, and always have been, vital to America’s national security. As the challenges to our common security continue to grow in diversity and complexity, the NDAA bolsters support for allies and partners who are fighting alongside us, sharing the burden, and defending our values. The conference report: Authorizes $3.4 billion for the European Deterrence Initiative to deter Russian aggression, a four-fold increase from last fiscal year. The agreement focuses these funds on increasing the size, capability, and readiness of U.S. forces in Europe as well as the ability of allies and partners to defend themselves against growing threats to their security and territorial integrity. Extends and increases security assistance to the Government of Ukraine to $350 million, including the authorization to provide lethal military assistance. The agreement requires needed Ukrainian defense institutional reforms that will enable Ukraine to fully leverage security assistance investments to maximize defense capabilities and ensure that those capabilities are sustained. Authorizes $3.4 billion for the Afghanistan Security Forces Fund to preserve the gains of the last 15 years and continue to degrade and defeat terrorist organizations with transnational operational reach and intent to harm U.S. national security interests. Extends the Afghanistan Special Immigrant Visa program for translators and other Afghans performing sensitive and trusted activities in support of the U.S. Government mission who are threatened by reprisal from the Taliban, the Islamic State in Khorasan Province, and other extremist groups. Creates a $1.2 billion Counter-ISIL Fund providing flexible resources to support training and equipping the properly-vetted Syrian opposition, Iraqi Security Forces, the Iraqi Kurdish Peshmerga, Sunni tribal elements, and other local security forces with a national security mission such as local security forces that are committed to protecting highly vulnerable ethnic and religious communities. The agreement provides up to $480 million for stipends and sustainment through the Government of Iraq to the Iraqi Kurdish Peshmerga to assist in liberating Mosul. Additionally, this fund will reimburse border security operations in countries most vulnerable to ISIL aggression to preserve stability and security, including Jordan, Lebanon, Egypt and Tunisia. Adds an additional $455 million to the $146 million requested by the President to modernize Israeli’s layered missile defense system. Increases the obligation authority for the Special Defense Acquisition Fund (SDAF) to better anticipate the acquisition needs of coalition partners and allies, including $500 million to be used to procure and stock precision guided munitions to enhance the effectiveness of counterterrorism operations conducted or supported by the United States. Increases security cooperation between the United States, Canada, the United Kingdom and Australia by reducing barriers and integrating them in the National Technology and Industrial Base. Enhances security cooperation between the United States and India. Refocuses security assistance to Pakistan on activities that directly support U.S. national security interests and conditions a significant portion of funding on a certification from the Secretary of Defense that Pakistan is taking demonstrable steps against the Haqqani Network in Pakistani territory. Urges the Secretary of Defense to carry out a program of exchanges of senior military officers and senior officials between the United States and the Government of Taiwan designed to improve military-to-military relations. Reforming Security Cooperation The conference report contains the most sweeping reform of the Department of Defense’s security cooperation enterprise in over 20 years by streamlining the cumbersome patchwork of legal authorities, funding sources, and organizational structure for the management and oversight of DOD security cooperation programs and activities. Specifically, the agreement consolidates security cooperation authorities from Title 10 and elsewhere in public law into a single chapter of U.S. code. For the first time, the conference report requires the Secretary of Defense to submit a consolidated security cooperation budget. The agreement would also modernize the security cooperation workforce responsible for the planning, monitoring, execution, and evaluation of such programs and activities. Together, these steps will improve operational outcomes, program management, congressional oversight, and public transparency. By breaking down existing stovepipes, these reforms will greatly enhance DOD’s ability to address the wide-ranging and evolving nature of global threats and better align security cooperation activities to strategic objectives. Importantly, these reforms are not meant to create a DOD mission that competes with security assistance overseen by the Department of State. Rather, the conference report seeks to enable the DOD to more effectively meet its own defense-specific objectives in support of broader defense strategy as well as better integrate Title 10 security cooperation activities into the broader United States Government approach to security sector assistance. The conference report would increase coordination between the Department of Defense and the Department of State in the planning and implementation of security sector assistance programs by requiring the Secretary of Defense and the Secretary of State to jointly develop and plan “train and equip” programs. Similarly, the agreement requires the secretaries to coordinate the implementation of such programs in order to enhance visibility and collaboration earlier in the planning process and through execution so as to avoid unnecessary duplication and enhance overall unity of effort. Detention Policy The NDAA extends prohibitions related to Guantanamo Bay previously enacted by Congress. The conference report: Extends the prohibition on the use of funds for transfer to the United States of individuals detained at Guantanamo Bay. Extends the prohibition on the use of funds to construct or modify facilities in the United States to house detainees transferred from Guantanamo Bay. Extends the prohibition on the use of funds to transfer or release of individuals detained at Guantanamo Bay to Libya, Somalia, Syria, or Yemen. Extends the prohibition on the use of funds for realignment of forces at or closure of United States Naval Station, Guantanamo Bay, Cuba. ### | 1 | 2026-03-30T12:14:52Z | 2026-03-30T12:14:52Z |