LEGISLATIVE UPDATE

By MARK E. ROSEN and JEREMY M. MILLER

Republican Control of the Senate: What's Ahead?

The Lame-Duck Session

The 107th Congress helped considerably in upgrading the capabilities of all of the nation's armed services by, among other actions, demonstrating solid bipartisan support for most major acquisition and personnel programs. The Navy and Marine Corps received substantial increases in funding for maintenance, spare parts, and other readiness accounts. A much-needed increase in end-strength also was approved for the Marine Corps, and the Coast Guard won congressional approval for its innovative Deepwater recapitalization program. Landmark legislation establishing a Department of Homeland Security (DHS) and increases in manpower and new Coast Guard programs also were passed after being stalled in the Senate. But legislation giving the Department of Defense limited relief from certain environmental laws never made it out of the Senate, and there are potential battles looming on several of the 11 appropriations bills that were deferred until January, when the new Congress convenes.

The long-term budget outlook for the sea services, especially the Coast Guard, seems reasonably favorable, therefore, thanks to the flurry of legislative activity in mid-November and the vigorous support provided by President Bush. Nonetheless, the fact that many agencies will have to operate under a continuing resolution (CR) until well into next year is not popular either with the powerful legislators on the appropriations committees or with the agencies themselves--which have no authority to initiate new programs or initiatives on their own. The funding increases expected to be included in the deferred appropriations cannot be used, despite the continuing resolution, until permanent appropriation bills are passed. The CR governing current federal agency operations will expire on 11 January 2003.

DOD Appropriations: Success in the 107th

The Defense Appropriations Act, which allocates $355.4 billion for the fiscal year that began on 1 Oct., was approved by Congress and signed into law by President Bush on 23 October. The Act boosts defense spending by $37 billion over last year's level; included in the increase are funds to help pay for the war on terrorism, various recapitalization programs, and the preparations for a possible conflict with Iraq. The Bill provides $9 billion for naval shipbuilding and conversion (SCN), or $842 million more than the president had requested. The major line items in the SCN account are two Aegis guided-missile destroyers, one LPD-17 amphibious ship, one Virginia-class attack submarine, one T-AKE logistics vessel, and long-lead funding for CVN(X), the next-generation nuclear carrier.

Navy League officials worked in close cooperation with the sea services and the committees during the Conference period to help ensure that the final Bill would provide the funding needed to meet short- and long-term readiness and recapitalization needs. In the shipbuilding arena, $30 million was allocated for the Littoral Combat Ship, $2.3 billion was earmarked for the DD(X) surface-combatant program, and over $800 million for the SSGN nuclear-powered guided-missile program. In addition, $120 million was allocated for two additional FA-18E/F Super Hornet strike fighters and $63 million for Navy C-40A Clipper transport aircraft, $1 billion was approved for the renewed V-22 Osprey test and evaluation program, and $315 million was provided to buy 24 KC-130Js for the Marine Corps. The Navy League also was also successful in helping to reverse cuts in SSN and CVN refueling and O&M (operations and maintenance) funding that had been proposed.

Pending Congressional Business

The MARAD Title XI Ship Loan Guarantee Program and the Coast Guard's Deepwater program are temporarily funded under a CR because no final action was taken on the Transportation Appropriations Act. Under the CR, Title XI is funded at $32 million--$4 million for administrative costs and $28 million for new loan guarantees. Deepwater funding under the CR will be at the $300 million level, well below the $500 million sought by the Coast Guard in its fiscal year 2003 budget request.

A scaled-down version of the "Concurrent Receipt" initiative was included in the DOD Authorization Act. In general terms, that provision allows disabled veterans to receive their military retirement benefits and disability payments with no offset required. Most legislators favored the Concurrent Receipt initiative because it was so strongly supported this year as the "signature" issue of The Military Coalition (TMC) and most veterans groups. The White House and DOD, however, opposed Concurrent Receipt on the grounds that its high cost (the orginal bill cost was $60 billion over 10 years) would divert funds from current readiness, personnel, and acquisition programs. The impasse over Concurrent Receipt was resolved through a compromise, which Sen. John Warner (R-Va.) negotiated with the White House, that will limit the concurrent receipt of military retired pay and disability compensation to those individuals who were disabled as a direct result of combat or military training maneuvers. The original bill permitted concurrent receipt regardless of how the veteran was disabled. It seems likely that the TMC and the veterans groups will push for a much more comprehensive version of Concurrent Receipt next year.

The extended debate over Concurrent Receipt persuaded legislative managers in the Senate and House to prune away other controversial provisions in the Authorization Actl so that it could be passed before adjournment. One provision that did not survive was the "Defense Readiness and Range Preservation" initiative, which sought to relax certain environmental regulations to permit U.S. forces to train on a number of bases and ranges that have become sanctuaries to over 300 endangered species. The legislative relief package garnered strong support in the House but was heavily watered-down in the Senate because of a concerted lobbying campaign by environmental groups.

Proponents of the relief package said it was unfortunate that the Range and Readiness provision was so heavily politicized because DOD has a stellar record of environmental compliance and protection. From 1991 through 2001 the Department invested $48 billion on environmental programs and planned on spending nearly $4 billion in FY '02 on direct compliance activities and similar large sums on the construction of ships, aircraft, and motor vehicles proved to be "environmentally friendly." The initiative was a top DOD priority because inflexible regulations have seriously degraded the ability of U.S. forces to conduct realistic training. If environmental relief is not forthcoming, DOD could cut its spending on compliance activities because the "good stewardship" activities, which are very costly, seem not to have had any effect on the debate. The Department also, of course, could seize upon the change in the Senate to push for a more sweeping "military exemption" from most domestic environmental laws and the purview of domestic environmental agencies. *

Mark E. Rosen is the Navy League's General Counsel and Senior Director of Communications; Jeremy M. Miller is the Navy League's Director of Legislative Affairs.