WASHIGNTON -- The U.S. Senate passed its version of the FY19 defense authorization bill Monday by a vote of 85-10. The bill supports a total of $716 billion in national defense spending (Function 050), including $617.6 billion in base spending for the Pentagon, $12.6 billion for nuclear programs in the Department of Energy, $68.5 billion for Overseas Contingency Operations, and $8.2 billion in defense-related activities outside of the jurisdiction of the Senate Armed Services Committee.

The bill includes a total of $145.9 billion for procurement and $93.5 billion for research, development, test and evaluation, reflecting increases of $1.6 billion and $1.2 billion, respectively. These figures include both base and OCO funding.

Navy procurement increases by $1.3 billion, predominantly for ships. The committee adds $650 million for an additional LPD Flight II ship, recommends adding advance procurement funding to bolster future procurement of Virginia class submarines and DDG 51 class destroyers, and adds $250 million for a cable ship. The bill does not include two Littoral Combat Ships added in the House version of the bill, meaning that issue will be settled in conference.

The Air Force receives an additional $516.9 million for procurement in the Senate bill, including $413.8 million for aircraft. The bill includes $350 million for the O/A-X light attack aircraft program. Last year, the Senate Armed Services Committee recommended adding $1.2 billion for the program, but that funding never materialized in the final defense spending bill. The FY19 version of the bill also adds $120 million for MQ-9 Reapers, $65 million for A-10 replacement wings, and $74 million for C-130 modifications. However, the bill cuts funding for one F-35A and one KC-46A. The service also sees a $574.9 million increase in its research and development account, including $100 million to accelerate a hypersonic conventional strike weapon and $100 million for the Evolved Space-Based Infrared System (SBIRS) program.

The Army actually loses $263.9 million from its procurement account, partially offset by a $119.6 million increase for research and development. The service does receive an additional $500 million for an interim cruise missile defense efforts under the indirect fire protection capability program, but the bill cuts funding for the Armored Multi-Purpose Vehicle, Bradley upgrades, and the Joint Light Tactical Vehicle.

The defense authorization bill now heads to conference committee, where House and Senate lawmakers will sort out differences between their respective proposals. House Armed Services Committee Chairman Mac Thornberry (R-TX) said he hopes to send a conference bill to the White House by the end of July. Congress has historically had an easier time passing the authorization legislation, which is primarily a policy bill, than the defense appropriations bill. The separate appropriations process ultimately determines how programs will be funded in FY19.

Source: Forecast International - International Military Markets
Associated URL: http://www.forecastinternaitonal.com
Author: S. McDougall, Defense Analyst