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OK , uh , good morning . My name is Bob 

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Ditchy with the Pentagon Press Office . 

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Today's briefing is on the Department 

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of Defense fiscal year 2027 budget 

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request . Speaking here today is 

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the Undersecretary of Defense , 

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Comptroller , Chief Financial Officer , 

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uh , Honorable Jules J . Hurst , the 

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Third , and the Director of the Force 

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Structure , Resource and assessment 

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with the Joint Staff , Lieutenant 

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General Steven P . Whitney . Uh , they 

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will provide opening remarks , and then 

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we'll have time for questions . Uh , 

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attribution is on the record . Uh , 

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when we get to the question and answer 

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period , uh , uh , please , when you 

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ask your question , please state your 

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name and the outlet that you're with . 

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Uh , please limit your questions , uh , 

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to one and one follow-up . Uh , I'll 

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let you know when we're nearing the end , 

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uh , with a , uh , two-minute warning . 

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Uh , following this brief , the Navy , 

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Air Force , and Army budget directors 

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will hold their separate , uh , 

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briefings sequentially here in the 

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briefing room . With that , it's my 

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pleasure to introduce to you , 

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Honorable Jay Hurst and Lieutenant 

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General Stephen Whitney . Well , thanks 

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for being here this morning . Uh , 

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we'll go to the first line . We're 

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facing one of the most complex and 

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dangerous threat environments in our 

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nation's 250 year history . Our 

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adversaries are rapidly advancing 

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capabilities across every warfighting 

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domain in the air , land , sea , space , 

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and cyberspace . Well , years of 

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underinvestment have strained our 

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defense industrial base . To meet this 

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moment , President Trump is submitting 

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an FY 27 national defense budget 

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request of $1.5 trillion . This is a 

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generational investment in the United 

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States military , the Arsenal of 

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freedom . This 42% increase will 

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supercharge our defense industrial base 

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by expanding production of major 

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weapons systems while strengthening 

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supply chains and supporting tens of 

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thousands of small and medium sized 

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businesses . It secures our homeland 

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and military advantage through 

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investments in the Golden Dome missile 

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defense system , drone dominance , and 

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space superiority , including nearly 

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doubling the Space Force budget and 

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tripling spending on drone and counter 

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drone capabilities . Finally , it 

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ensures our military readiness by 

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funding next generation platforms like 

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the F-47 and B-21 , modernizing our 

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nuclear deterrent , and delivering our 

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commitments to our service members by 

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putting forward the money to provide 

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them with world class housing . And pay 

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in line with the quality of their 

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service . Next slide , please . Here's 

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how that funding breaks down by service . 

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The Department of the Army budget grows 

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by 23.9%. The Department of the Navy by 

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24.3%. And the Department of the Air 

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Force by 33.6% , while General 

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Department of War funding increases by 

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22.6%. There is also a presidential 

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priorities category in our budget , and 

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that includes investments in Golden 

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Dome , drone dominance , AI and data 

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infrastructure , and critically the 

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defense industrial base . Next slide 

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please . The FY 27 defense budget will 

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be the largest investment in military 

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capabilities in over a generation . 52% 

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of this budget will go to buy and 

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develop war fighting systems , that's 

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munitions , planes , tanks , and ships . 

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In recent years , less than $400 

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billion has simply gone towards 

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procurement and research , development , 

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test and evaluation funding . This 

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budget allocates over $750 750 billion 

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dollars , nearly the size of the entire 

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FAA 22 defense budget , just to 

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capability development and procuring 

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weapons systems . This budget 

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represents the largest investment in 

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drone warfare and space capabilities 

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ever , the largest shipbuilding request 

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since 1962 , and one of the largest 

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budget requests for the Air Force and 

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the Army during peacetime in our 

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nation's history . Like the Reagan era 

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buildup , this investment will drive 

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job creation . By conservative 

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estimates , it could generate over 

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800,000 American jobs , many in 

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manufacturing and engineering . Next 

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slide please . Now , often when you 

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have a defense budget , there's a 

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balance between modernization and 

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readiness . There's a tension there , 

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but this budget does not have that 

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tension . We are modernizing the force 

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while making it more ready than ever . 

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In building this budget , we reduced 

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contract advisory services , 

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unnecessary travel , duplicative 

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programs , and we redirected that money 

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towards maintenance , spare parts , 

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flight hours , steaming hours , and 

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training . We've also kept our civilian 

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head count relatively flat while 

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doubling investment in facility 

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sustainment , restoration , 

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modernization , ensuring service 

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members work and live in safe and high 

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quality conditions . This budget 

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request was specifically formulated to 

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remediate all barracks and government 

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owned buildings and housing that is 

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substandard . We will also make a 

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significant investment remediating 

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facilities across the department's 

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inventory that do not meet our quality 

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standards . Next slide please . As we 

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drastically increase the number of 

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munitions and weapons systems we buy , 

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the department needs to make 

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investments to solidify America's 

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industrial base . Large defense firms 

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are critical to our national security , 

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but they rely on tens of thousands of 

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small and medium sized businesses to 

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provide the parts , components , and 

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materials to larger firms . For example , 

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the F-35 program alone has over 2100 

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suppliers , and more than half of these 

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are American small businesses . This 

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budget invests over $100 billion to 

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strengthen that ecosystem through 

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Defense Production Act funds , the 

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Office of Strategic Capital , and by 

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increasing industrial-based analysis 

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and statement funding to unprecedented 

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levels . This money will be used to 

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provide low interest credit , loan 

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guarantees , and to make direct 

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purchases to expand production capacity , 

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e-supply chain bottlenecks , and unlock 

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private sector investment . We're also 

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expanding multi-year contracts up to 7 

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years for critical munitions to provide 

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stability and incentivize long-term 

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investment across the supply chain . By 

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doing this , remove all excuses from 

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defense companies from investing 

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capital to improve improve their 

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production facilities and of investing 

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in their workforces . This will also 

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give the small and medium sized 

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businesses who supply larger firms with 

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the surety they need to thrive and 

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expand production . When the Department 

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of War oscillates between buying large 

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numbers and small numbers of a weapons 

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system , large defense companies can 

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tolerate that fluctuation , but the 

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small and medium sized defense 

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suppliers who aid them cannot . In 

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every instance where we know we're 

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gonna continue to buy a system over a 

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prolonged period of time , we're gonna 

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request multi-year authorities from 

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Congress . Additionally , initiatives 

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like business operators for national 

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defense are bringing private sector 

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expertise into the department to 

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improve efficiency and execution . In 

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this initiative we've recruited former 

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private sector executives . We set them 

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to work across the department and with 

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our defense contractors to change how 

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we contract for goods and services , 

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but also to change how we buy things 

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and build things . This is all part of 

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an effort to move the department from 

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bureaucracy to a business mindset . 

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Next slide please . During the last 

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administration we had a recruiting 

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crisis that required the joint force to 

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reduce its end strength by 2.6%. This 

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meant hollow units . It meant longer 

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hours for our warfighters , more 

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frequent deployments , and more stress 

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on the force . In FY 26 reversed that 

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decline by adding over 20,000 personnel . 

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In FY 27 , we'll grow the force again 

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by an additional 44,000 service members . 

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This growth will provide the manpower 

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needed to employ new capabilities . And 

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it will improve readiness and quality 

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of life by ensuring units are properly 

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staffed for the missions we task them 

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with . Next slide please . 

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Now following President Trump's 

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inauguration , the Department of War 

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and Department of Homeland Security 

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quickly moved to secure our southern 

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border . Monthly encounters along the 

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border dropped from nearly 100,000 in 

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December to fewer than 10,000 by the 

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end of January . The FY 27 budget 

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allocates $2.3 billion to sustain 

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operational control of the southern 

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border and to defend our homeland . 

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Illegal immigration is effectively 

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ended along the US border with Mexico , 

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and this budget supports that new 

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status quo . Next slide please . We 

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will also defend the homeland by 

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continuing to build America's Golden 

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Dome and next generation missile shield . 

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In FY 26 , we began building Golden 

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Dome by focusing on creating the 

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infrastructure to build situational 

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awareness and sense threats . In FY 27 , 

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we will expand that sensing network and 

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invest in next generation interceptors . 

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This investment in the security of 

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America and Americans is an absolute 

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game changer . And it's peace through 

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strength and action . Next slide . As 

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we defend the homeland from advanced 

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missile threats , we're also investing 

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in the revolution autonomous systems . 

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Drone warfare is rapidly reshaping the 

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modern battlefield , and this budget is 

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the largest investment in drone warfare 

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and counter drone technology in US 

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history . We're requesting $53.6 

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billion for autonomy , drone platforms , 

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and contested logistics , along with 

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$21 billion for munitions , counter 

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drone technologies , and advanced 

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systems like the collaborative combat 

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aircraft , the MQ-25 . Manned on man 

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teaming is the future of combat , and 

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this budget makes it a reality . I'd 

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like to introduce my colleague from the 

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Joint Staff , General Whitney , who'll 

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take you through the rest of the 

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briefing starting with space and cyber 

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capabilities . OK , next slide . Thank 

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you Mr . Hurst . I'd like to continue 

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the discussion with several additional 

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capability areas . We FY 27 president's 

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budget request investments and and 

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their impact on the joint force . As 

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mentioned , I'll start with two focal 

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points for strategic competition in the 

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21st century technological dominance 

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space and cyber . This budget requests 

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over $75 billion to ensure American 

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space superiority . This includes 31 

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00:09:53,840 --> 00:09:57,099
space launches , $13 billion to develop 

278
00:09:57,200 --> 00:09:59,367
and field missile warning and tracking 

279
00:09:59,367 --> 00:10:01,520
capabilities , two GPS satellites and 

280
00:10:01,520 --> 00:10:04,760
their supporting infrastructure . $5.9 

281
00:10:04,760 --> 00:10:06,760
billion for satellite communication 

282
00:10:06,760 --> 00:10:09,840
systems , $7.7 billion for airborne 

283
00:10:09,840 --> 00:10:12,419
moving target indication capabilities , 

284
00:10:12,880 --> 00:10:14,936
and a $3.1 billion investment in our 

285
00:10:14,936 --> 00:10:17,989
next generation space data network . In 

286
00:10:17,989 --> 00:10:20,289
the cyber domain , the FY 27 budget 

287
00:10:20,520 --> 00:10:22,187
requests over $20 billion for 

288
00:10:22,187 --> 00:10:24,020
capabilities to defend , federal 

289
00:10:24,020 --> 00:10:26,076
systems , critical infrastructures , 

290
00:10:26,076 --> 00:10:28,320
and supply chains across all domains . 

291
00:10:29,210 --> 00:10:31,321
Denying adversary freedom of maneuver 

292
00:10:31,321 --> 00:10:33,543
in and through cyberspace while forging 

293
00:10:33,543 --> 00:10:35,543
a cyber force capable of delivering 

294
00:10:35,543 --> 00:10:38,159
greater lethality . This budget request 

295
00:10:38,159 --> 00:10:40,103
is committed to securing America's 

296
00:10:40,103 --> 00:10:42,159
vital national security and economic 

297
00:10:42,159 --> 00:10:44,320
interests in from and to space while 

298
00:10:44,320 --> 00:10:46,376
prioritizing cyber capabilities as a 

299
00:10:46,376 --> 00:10:48,598
crucial component of national defense . 

300
00:10:48,840 --> 00:10:51,369
Next slide , please . Turning to the 

301
00:10:51,369 --> 00:10:54,169
nuclear enterprise , America's nuclear 

302
00:10:54,169 --> 00:10:56,391
capabilities are the bedrock upon which 

303
00:10:56,391 --> 00:10:58,280
all other elements of our defense 

304
00:10:58,280 --> 00:11:00,549
strategy rest . Our current nuclear 

305
00:11:00,549 --> 00:11:02,659
enterprise remains safe , secure , 

306
00:11:02,869 --> 00:11:05,780
credible , and ready . This budget 

307
00:11:05,780 --> 00:11:07,613
request continues a generational 

308
00:11:07,613 --> 00:11:09,724
modernization effort across all three 

309
00:11:09,724 --> 00:11:11,502
legs of the triad to ensure the 

310
00:11:11,502 --> 00:11:13,669
continued effectiveness of our nuclear 

311
00:11:13,669 --> 00:11:15,891
deterrent . This includes , as shown on 

312
00:11:15,891 --> 00:11:17,780
the slide , $16.2 billion for the 

313
00:11:17,780 --> 00:11:19,809
Columbia class submarine program , 

314
00:11:20,270 --> 00:11:22,437
which includes funding one new hull in 

315
00:11:22,437 --> 00:11:24,103
its entirety , completing the 

316
00:11:24,103 --> 00:11:25,937
incremental funding for the hull 

317
00:11:25,937 --> 00:11:27,830
started in FY 26 , and providing 

318
00:11:27,830 --> 00:11:29,886
advanced procurement funds for eight 

319
00:11:29,886 --> 00:11:31,659
additional hulls . Along with 

320
00:11:31,659 --> 00:11:33,715
investments in the B-21 bomber , the 

321
00:11:33,715 --> 00:11:35,770
Sentinel ICBM program , and the long 

322
00:11:35,770 --> 00:11:39,070
range standoff weapon or LRSO . In 

323
00:11:39,070 --> 00:11:41,126
addition to these investments in our 

324
00:11:41,126 --> 00:11:42,848
nuclear deterrence weapons and 

325
00:11:42,848 --> 00:11:44,959
platforms , the request also includes 

326
00:11:44,959 --> 00:11:47,181
$20.2 billion of investments in nuclear 

327
00:11:47,181 --> 00:11:49,459
command , control , and communications , 

328
00:11:49,459 --> 00:11:51,570
or NC3 architecture , ensuring timely 

329
00:11:51,570 --> 00:11:53,880
strategic missile warning reporting and 

330
00:11:53,880 --> 00:11:55,880
strengthening presidential decision 

331
00:11:55,880 --> 00:11:58,213
making in command of our nuclear forces . 

332
00:11:58,213 --> 00:12:01,190
Next slide please . In the maritime 

333
00:12:01,190 --> 00:12:02,968
domain , this budget requests a 

334
00:12:02,968 --> 00:12:05,750
consistent , strong demand signal to 

335
00:12:05,750 --> 00:12:08,469
industry to expand production . It 

336
00:12:08,469 --> 00:12:11,349
includes over $65 billion for 18 battle 

337
00:12:11,349 --> 00:12:14,030
force ships and 16 support ships as 

338
00:12:14,030 --> 00:12:16,252
part of the Golden Fleet Initiative and 

339
00:12:16,252 --> 00:12:18,308
our continued commitment to maritime 

340
00:12:18,308 --> 00:12:22,000
dominance . It also requests $427 

341
00:12:22,000 --> 00:12:24,111
million for 3 medium unmanned surface 

342
00:12:24,111 --> 00:12:26,409
vehicles , along with the testing and 

343
00:12:26,409 --> 00:12:28,631
development of their associated payload 

344
00:12:28,631 --> 00:12:31,929
systems . It also includes an $8.7 

345
00:12:31,929 --> 00:12:33,873
billion investment in the maritime 

346
00:12:33,873 --> 00:12:35,485
industrial base and shipyard 

347
00:12:35,485 --> 00:12:37,707
infrastructure . These investments span 

348
00:12:37,707 --> 00:12:39,929
seven tier one private shipyards , four 

349
00:12:39,929 --> 00:12:42,359
public shipyards , multiple tier two 

350
00:12:42,359 --> 00:12:44,960
private shipyards , and includes funds 

351
00:12:44,960 --> 00:12:47,789
to study 1/5 public shipyard . The 

352
00:12:47,789 --> 00:12:49,900
maritime industrial based investments 

353
00:12:49,900 --> 00:12:51,956
can be broken down further through a 

354
00:12:51,956 --> 00:12:51,750
different perspective shown on the 

355
00:12:51,750 --> 00:12:53,830
right of the slide in areas of the 

356
00:12:53,830 --> 00:12:56,590
submarine industrial base or SSIB , the 

357
00:12:56,590 --> 00:12:58,650
Shipyard Infrastructure Optimization 

358
00:12:58,650 --> 00:13:01,770
Program or SIOP . The broader ships 

359
00:13:01,770 --> 00:13:04,479
shipbuilding industrial base or SIB and 

360
00:13:04,479 --> 00:13:06,969
the nuclear enterprise . Altogether 

361
00:13:06,969 --> 00:13:09,130
this budget request demonstrates a 

362
00:13:09,130 --> 00:13:11,074
strong sustained investment in our 

363
00:13:11,074 --> 00:13:13,309
shipbuilding industry . Allowing the 

364
00:13:13,309 --> 00:13:15,031
navy to build , maintain , and 

365
00:13:15,031 --> 00:13:17,229
modernize a dominant , ready fleet . 

366
00:13:17,590 --> 00:13:21,570
Next slide , please . Shifting 

367
00:13:21,570 --> 00:13:23,459
to land power , the department is 

368
00:13:23,459 --> 00:13:25,570
committed to the modernization of our 

369
00:13:25,570 --> 00:13:27,737
ground forces to ensure our ability to 

370
00:13:27,737 --> 00:13:29,959
dominate against our evolving threats . 

371
00:13:29,959 --> 00:13:32,510
This request . It includes 

372
00:13:32,510 --> 00:13:34,732
approximately $65 billion split between 

373
00:13:34,732 --> 00:13:36,954
the elements of the Army and the Marine 

374
00:13:36,954 --> 00:13:39,177
Corps to procure new assets focusing on 

375
00:13:39,177 --> 00:13:40,954
missiles , armed vehicles , and 

376
00:13:40,954 --> 00:13:42,677
helicopters . Honorable Hearst 

377
00:13:42,677 --> 00:13:44,788
mentioned the investment in munitions 

378
00:13:44,788 --> 00:13:47,010
earlier in the presentation . One piece 

379
00:13:47,010 --> 00:13:49,232
of this investment is $31.8 billion for 

380
00:13:49,232 --> 00:13:51,288
critical land-based missiles with an 

381
00:13:51,288 --> 00:13:53,399
increased procurement in FY 26 of the 

382
00:13:53,399 --> 00:13:55,454
Patriot , the Terminal High Altitude 

383
00:13:55,454 --> 00:13:57,232
Area Defense or THAAD program , 

384
00:13:57,580 --> 00:13:59,358
precision strike missiles , and 

385
00:13:59,358 --> 00:14:02,130
mid-range capability weapons . Those 

386
00:14:02,130 --> 00:14:04,250
increases from FY 26 to this request 

387
00:14:04,250 --> 00:14:06,583
are displayed on the right of the slide . 

388
00:14:06,849 --> 00:14:08,682
On armored vehicles , the budget 

389
00:14:08,682 --> 00:14:10,849
request is $3.2 billion in funds to 

390
00:14:10,849 --> 00:14:13,520
modernize armored brigade combat teams 

391
00:14:13,520 --> 00:14:15,510
with the procurement of armored 

392
00:14:15,609 --> 00:14:18,530
multi-purpose vehicles or AMPVs , the 

393
00:14:18,530 --> 00:14:21,130
development of the XM30 infantry combat 

394
00:14:21,130 --> 00:14:22,686
vehicle , and lethality and 

395
00:14:22,686 --> 00:14:24,852
survivability upgrades of the Abrahams 

396
00:14:24,852 --> 00:14:27,479
tanks . The budget also requests $2.2 

397
00:14:27,479 --> 00:14:29,535
billion in funding for advanced next 

398
00:14:29,535 --> 00:14:31,909
generation tilt rotorcraft in the MV 75 , 

399
00:14:32,210 --> 00:14:33,932
also known as the Cheyenne 2 . 

400
00:14:34,590 --> 00:14:36,760
Specifically seeking efforts in 

401
00:14:36,760 --> 00:14:38,927
prototyping , testing , and production 

402
00:14:38,927 --> 00:14:40,927
planning . These target investments 

403
00:14:40,927 --> 00:14:43,149
allow for modernization across both the 

404
00:14:43,149 --> 00:14:45,316
Army and the Marine Corps . In the air 

405
00:14:45,316 --> 00:14:47,538
switching next slide , switching to air 

406
00:14:47,538 --> 00:14:50,250
power . A request of $102 billion is 

407
00:14:50,250 --> 00:14:52,361
included for aircraft procurement and 

408
00:14:52,361 --> 00:14:54,583
research and development , representing 

409
00:14:54,583 --> 00:14:56,806
a 26% increase over last year . It also 

410
00:14:56,806 --> 00:14:58,639
maximizes readiness and aircraft 

411
00:14:58,639 --> 00:15:00,806
availability by increasing sustainment 

412
00:15:00,806 --> 00:15:02,583
and spares fundings across most 

413
00:15:02,583 --> 00:15:04,750
platforms , producing the capabilities 

414
00:15:04,750 --> 00:15:06,972
our warfighters need to fight and win . 

415
00:15:06,972 --> 00:15:09,139
Some key highlights include , as shown 

416
00:15:09,139 --> 00:15:09,090
on the slide , ramping up the 

417
00:15:09,090 --> 00:15:11,210
procurement of the F-35 fighter 

418
00:15:11,210 --> 00:15:13,989
aircraft to 85 for the United States , 

419
00:15:14,609 --> 00:15:17,590
expanding the F-15EX fighter production 

420
00:15:17,590 --> 00:15:20,309
to 24 . Continuing the development of 

421
00:15:20,309 --> 00:15:22,420
sixth generation fighter systems like 

422
00:15:22,420 --> 00:15:26,380
the F-47 and the FAAXX . And increasing 

423
00:15:26,380 --> 00:15:29,059
the procurement rate of the KC-46 

424
00:15:29,489 --> 00:15:31,211
across the fight up while also 

425
00:15:31,211 --> 00:15:32,933
providing critical funding for 

426
00:15:32,933 --> 00:15:35,156
modification , spares , and reliability 

427
00:15:35,156 --> 00:15:37,378
improvements to increase the aircraft's 

428
00:15:37,378 --> 00:15:40,510
availability . This res request . An 

429
00:15:40,510 --> 00:15:42,399
expanded capacity should serve to 

430
00:15:42,399 --> 00:15:44,232
maximize readiness , bolting our 

431
00:15:44,232 --> 00:15:46,454
ability to achieve air superiority in a 

432
00:15:46,454 --> 00:15:49,640
conflict . Next slide . Shifting from 

433
00:15:49,640 --> 00:15:51,751
capability development to ensuring we 

434
00:15:51,751 --> 00:15:53,862
have a ready force , Honorable Hearst 

435
00:15:53,862 --> 00:15:56,084
mentioned this budget makes a focused , 

436
00:15:56,084 --> 00:15:58,084
deliberate investment to ensure our 

437
00:15:58,084 --> 00:15:59,807
joint force can respond to any 

438
00:15:59,807 --> 00:16:02,000
strategic challenge . Up nearly 20% 

439
00:16:02,000 --> 00:16:04,119
from FY 26 , this budget request 

440
00:16:04,119 --> 00:16:06,989
includes over $190 billion for core 

441
00:16:06,989 --> 00:16:09,710
readiness and enablers . These 

442
00:16:09,710 --> 00:16:11,766
investments cover a broad variety of 

443
00:16:11,766 --> 00:16:13,988
joint force activities . A few examples 

444
00:16:13,988 --> 00:16:16,266
are aviation training and flying hours , 

445
00:16:16,266 --> 00:16:19,500
large scale force exercises , steaming 

446
00:16:19,500 --> 00:16:21,830
hours , equipment , and maintenance 

447
00:16:21,830 --> 00:16:23,849
readiness , including spare parts . 

448
00:16:24,679 --> 00:16:26,679
These investments will stand at the 

449
00:16:26,679 --> 00:16:29,409
foundation of a credible . Capable and 

450
00:16:29,409 --> 00:16:30,965
rapid integrated response , 

451
00:16:31,450 --> 00:16:33,617
consequently deferring our adversaries 

452
00:16:33,617 --> 00:16:35,672
will sustaining effect of operations 

453
00:16:35,672 --> 00:16:38,780
over time . This deliberate focused 

454
00:16:38,780 --> 00:16:40,336
effort to improve the joint 

455
00:16:40,336 --> 00:16:44,219
forces logistics and adaptation . It's 

456
00:16:44,219 --> 00:16:47,020
OK . We love each other . Gemini says 

457
00:16:47,020 --> 00:16:49,187
you're right . Gemini says I'm right . 

458
00:16:49,187 --> 00:16:51,520
Excellent . I got something right today . 

459
00:16:51,520 --> 00:16:53,576
That's a , that's a , that's a great 

460
00:16:53,576 --> 00:16:55,853
statement . Thanks , Tony . Uh , again , 

461
00:16:55,853 --> 00:16:58,076
this is a deliberate and focused effort 

462
00:16:58,076 --> 00:17:00,242
to improve the joint force down to the 

463
00:17:00,242 --> 00:17:02,464
individual service member . Speaking of 

464
00:17:02,464 --> 00:17:01,539
service members on the next slide , I'd 

465
00:17:01,539 --> 00:17:03,761
like to talk a little bit about the pay 

466
00:17:03,761 --> 00:17:06,095
raise that this budget request includes . 

467
00:17:06,095 --> 00:17:08,150
This budget request includes a pay , 

468
00:17:08,150 --> 00:17:10,372
pay raise weighted towards our greatest 

469
00:17:10,372 --> 00:17:12,483
military advantage , our professional 

470
00:17:12,483 --> 00:17:14,539
enlisted corps . Specifically , this 

471
00:17:14,539 --> 00:17:16,483
request includes a 7% increase for 

472
00:17:16,483 --> 00:17:18,650
military personnel in the grades of E5 

473
00:17:18,650 --> 00:17:21,119
and below . A 6% increase for personnel 

474
00:17:21,119 --> 00:17:24,688
in the grades of E6 to 03 , and a 5% 

475
00:17:24,688 --> 00:17:26,910
increase for members in the grade of 04 

476
00:17:26,910 --> 00:17:29,959
and above . With this funding request , 

477
00:17:30,040 --> 00:17:31,984
we directly invest in our people , 

478
00:17:32,000 --> 00:17:33,722
recognizing and respecting our 

479
00:17:33,722 --> 00:17:35,889
warfighters , their families , and the 

480
00:17:35,889 --> 00:17:38,111
daily sacrifices they both make for our 

481
00:17:38,111 --> 00:17:41,329
nation . Next slide . Let me move on to 

482
00:17:41,329 --> 00:17:43,218
another critical topic uh for our 

483
00:17:43,218 --> 00:17:45,329
warfighters readiness , health care . 

484
00:17:45,839 --> 00:17:47,890
The military health system provides 

485
00:17:47,890 --> 00:17:50,290
services to approximately 9.5 million 

486
00:17:50,290 --> 00:17:52,530
beneficiaries , uniformed service 

487
00:17:52,530 --> 00:17:54,752
members , military retirees , and their 

488
00:17:54,752 --> 00:17:56,959
families . This budget proposes a 

489
00:17:56,959 --> 00:17:59,292
structural change in how the department . 

490
00:17:59,699 --> 00:18:01,921
Holds its health care funding replacing 

491
00:18:01,921 --> 00:18:03,921
the defense health program with two 

492
00:18:03,921 --> 00:18:06,255
distinct accounts . The first is combat , 

493
00:18:06,810 --> 00:18:08,977
operational and medical readiness , or 

494
00:18:08,977 --> 00:18:12,000
comp . It is designed to protect and 

495
00:18:12,000 --> 00:18:13,889
prioritize the critical resources 

496
00:18:13,889 --> 00:18:15,944
needed to sustain war fighter health 

497
00:18:15,944 --> 00:18:19,180
and medical readiness . The second 

498
00:18:19,180 --> 00:18:21,013
account is a private sector care 

499
00:18:21,013 --> 00:18:24,619
program or PSCP . It is designed to 

500
00:18:24,619 --> 00:18:26,675
cover all the beneficiary healthcare 

501
00:18:26,675 --> 00:18:28,952
provided through the TriCare contracts . 

502
00:18:29,329 --> 00:18:31,385
By splitting out the cost of private 

503
00:18:31,385 --> 00:18:33,551
sector care into its own account , the 

504
00:18:33,551 --> 00:18:35,607
department is enhancing transparency 

505
00:18:35,607 --> 00:18:37,718
and accountability , making it easier 

506
00:18:37,718 --> 00:18:39,718
to track how resources are balanced 

507
00:18:39,718 --> 00:18:41,885
between military medical platforms and 

508
00:18:41,885 --> 00:18:43,996
the care from our civilian partners . 

509
00:18:43,996 --> 00:18:45,996
Together , these two accounts total 

510
00:18:45,996 --> 00:18:48,290
$45.7 billion in this request to 

511
00:18:48,290 --> 00:18:50,234
deliver the healthcare our service 

512
00:18:50,234 --> 00:18:52,346
members and their family needs . This 

513
00:18:52,346 --> 00:18:54,401
is up 5% over last year's funding in 

514
00:18:54,401 --> 00:18:56,346
the defense health program . These 

515
00:18:56,346 --> 00:18:58,290
changes are designed to ensure the 

516
00:18:58,290 --> 00:19:00,179
department can deliver the needed 

517
00:19:00,179 --> 00:19:02,346
medical readiness , a key component of 

518
00:19:02,346 --> 00:19:04,457
a ready joint force , and effectively 

519
00:19:04,457 --> 00:19:04,430
and efficiently caring for their 

520
00:19:04,430 --> 00:19:08,319
families . Next slide . Similarly , 

521
00:19:08,400 --> 00:19:10,760
this budget request supports our joint 

522
00:19:10,760 --> 00:19:12,927
force by investing in our facilities . 

523
00:19:12,939 --> 00:19:14,772
Honorable Hearst mentioned we're 

524
00:19:14,772 --> 00:19:16,550
addressing the poor and failing 

525
00:19:16,550 --> 00:19:18,828
structures in our facilities and bases . 

526
00:19:18,828 --> 00:19:21,050
This is part of a requested $57 billion 

527
00:19:21,050 --> 00:19:23,106
investment in facility sustainment , 

528
00:19:23,106 --> 00:19:25,106
restoration , and modernization . A 

529
00:19:25,106 --> 00:19:27,217
major portion of this commitment , as 

530
00:19:27,217 --> 00:19:29,439
was mentioned earlier , is ensuring our 

531
00:19:29,439 --> 00:19:29,099
service members have clean , 

532
00:19:29,280 --> 00:19:32,010
comfortable , and safe housing . We're 

533
00:19:32,010 --> 00:19:33,843
specifically requesting funds to 

534
00:19:33,843 --> 00:19:35,899
address what the barracks task force 

535
00:19:35,899 --> 00:19:38,121
has called , has identified as critical 

536
00:19:38,121 --> 00:19:40,510
updates . The investments in this 

537
00:19:40,510 --> 00:19:42,989
budget will fix all substandard 

538
00:19:42,989 --> 00:19:45,045
barracks and eliminate barracks that 

539
00:19:45,045 --> 00:19:46,989
have been deemed poor or failing . 

540
00:19:48,020 --> 00:19:50,076
There is an additional investment to 

541
00:19:50,076 --> 00:19:52,187
improve family housing , with a major 

542
00:19:52,187 --> 00:19:54,353
portion of this investment targeted at 

543
00:19:54,353 --> 00:19:56,687
our government owned housing facilities . 

544
00:19:56,687 --> 00:19:58,631
Our joint force and their families 

545
00:19:58,631 --> 00:20:00,464
deserve quality housing . We are 

546
00:20:00,464 --> 00:20:02,631
committed to ensuring they have access 

547
00:20:02,631 --> 00:20:04,409
to safe , well maintained , and 

548
00:20:04,409 --> 00:20:06,076
dignified living quarters and 

549
00:20:06,076 --> 00:20:08,353
ultimately an improved quality of life . 

550
00:20:08,353 --> 00:20:12,020
Next slide . In closing , this this FY 

551
00:20:12,020 --> 00:20:14,250
27 president's budget reflects a clear 

552
00:20:14,250 --> 00:20:16,900
assessment of the threats we face and a 

553
00:20:16,900 --> 00:20:19,500
determined commitment to ensuring our 

554
00:20:19,500 --> 00:20:21,300
joint force is properly armed , 

555
00:20:21,660 --> 00:20:23,716
globally integrated , and ready when 

556
00:20:23,716 --> 00:20:25,882
our nation's calls . It invests in the 

557
00:20:25,882 --> 00:20:28,049
capabilities required , the industrial 

558
00:20:28,049 --> 00:20:29,771
base to produce them , and the 

559
00:20:29,771 --> 00:20:31,993
readiness of our warfighters to utilize 

560
00:20:31,993 --> 00:20:34,104
them effectively . Thank you for your 

561
00:20:34,104 --> 00:20:35,993
time today and your commitment to 

562
00:20:35,993 --> 00:20:38,104
covering our department and our joint 

563
00:20:38,104 --> 00:20:40,160
force . We'd be honored to take your 

564
00:20:40,160 --> 00:20:42,271
questions . OK , I'm going to call on 

565
00:20:42,271 --> 00:20:44,327
both sides of the room , and we also 

566
00:20:44,327 --> 00:20:46,382
have , uh , a couple of questions on 

567
00:20:46,382 --> 00:20:48,604
the phone . I'm gonna start over here . 

568
00:20:48,604 --> 00:20:50,827
Haley . Thank you . Uh , Hayley Brits , 

569
00:20:50,827 --> 00:20:50,790
CNN , thank you both so much for doing 

570
00:20:50,790 --> 00:20:52,846
this . Um , I'm wondering if you can 

571
00:20:52,846 --> 00:20:56,650
get into , um , any , or talk about any , 

572
00:20:56,819 --> 00:20:58,708
uh , requests that would come for 

573
00:20:58,708 --> 00:21:00,319
repairing , um , some of the 

574
00:21:00,319 --> 00:21:02,375
installation of the bases for in the 

575
00:21:02,375 --> 00:21:04,486
Middle East , um , if that would be a 

576
00:21:04,486 --> 00:21:06,652
separate supplemental for construction 

577
00:21:06,652 --> 00:21:08,930
or how that would fit into the request . 

578
00:21:08,930 --> 00:21:11,097
Yeah , so it's not reflected in the 27 

579
00:21:11,097 --> 00:21:13,208
requests , and part of it is we would 

580
00:21:13,208 --> 00:21:12,800
assess what our posture should be in 

581
00:21:12,800 --> 00:21:14,856
the Middle East , right ? We have to 

582
00:21:14,856 --> 00:21:17,078
make sure we understand what we want to 

583
00:21:17,078 --> 00:21:19,022
construct in the future . We might 

584
00:21:19,022 --> 00:21:18,829
change how we build bases in the Middle 

585
00:21:18,829 --> 00:21:21,000
East based on this conflict , and so 

586
00:21:21,000 --> 00:21:23,111
that's on the FY 27 budget . It'll be 

587
00:21:23,111 --> 00:21:25,810
part of a future request . And then on 

588
00:21:25,810 --> 00:21:28,380
the drone dominance and counter UAS 

589
00:21:28,380 --> 00:21:30,436
technologies , can you just get into 

590
00:21:30,436 --> 00:21:32,650
more , I guess , uh , specifics on how 

591
00:21:32,650 --> 00:21:34,872
much of that is investing in industrial 

592
00:21:34,872 --> 00:21:37,039
base to create those versus buying the 

593
00:21:37,039 --> 00:21:39,630
some existing systems that $70 billion 

594
00:21:39,630 --> 00:21:41,852
is all going into . To existing systems 

595
00:21:41,852 --> 00:21:44,074
and technologies , the , the industrial 

596
00:21:44,074 --> 00:21:46,074
base support is entirely separate . 

597
00:21:46,074 --> 00:21:48,241
Obviously when you buy vast quantities 

598
00:21:48,241 --> 00:21:50,074
of something , you stimulate the 

599
00:21:50,074 --> 00:21:52,297
industrial base , but that is a focused 

600
00:21:52,297 --> 00:21:54,463
effort on actually fielding technology 

601
00:21:54,463 --> 00:21:56,574
and applying existing technology in a 

602
00:21:56,574 --> 00:21:56,344
way that's useful to the warfighter . 

603
00:21:57,214 --> 00:21:59,436
And if I could , I'd also add , Haley , 

604
00:21:59,436 --> 00:22:01,603
that it's critical that we innovate as 

605
00:22:01,603 --> 00:22:03,492
we , we look at the drones in our 

606
00:22:03,492 --> 00:22:05,492
counter UAS efforts . The evolution 

607
00:22:05,492 --> 00:22:07,714
that we've seen in the battlefield is , 

608
00:22:07,714 --> 00:22:10,047
is this evolution in technology is in a , 

609
00:22:10,047 --> 00:22:11,992
in a time frame of weeks , not the 

610
00:22:11,992 --> 00:22:11,959
typical years that we see with our , 

611
00:22:11,969 --> 00:22:14,191
our defense production . So it's really 

612
00:22:14,191 --> 00:22:16,358
critical that we work with industry to 

613
00:22:16,358 --> 00:22:18,302
get that capability fielded . Tony 

614
00:22:18,302 --> 00:22:20,302
Bertua , thank you , Tony Bertuca , 

615
00:22:20,302 --> 00:22:22,469
Inside Defense . So the , the budget , 

616
00:22:22,469 --> 00:22:24,270
uh , for discretionary is $1.15 

617
00:22:24,270 --> 00:22:26,680
trillion with another $350 billion 

618
00:22:26,680 --> 00:22:28,569
requested in mandatory spending . 

619
00:22:28,569 --> 00:22:31,390
Obviously that needs the 100% buy-in of 

620
00:22:31,390 --> 00:22:33,390
Congress and that's their challenge 

621
00:22:33,390 --> 00:22:35,689
across the river . But my question is , 

622
00:22:35,869 --> 00:22:37,750
if you do not get that mandatory 

623
00:22:37,750 --> 00:22:39,917
spending , is the discretionary amount 

624
00:22:40,030 --> 00:22:42,086
sufficient to carry out the national 

625
00:22:42,086 --> 00:22:44,349
defense strategy if Congress can't get 

626
00:22:44,349 --> 00:22:46,930
to that reconciliation bill ? We 

627
00:22:46,930 --> 00:22:49,152
wouldn't ask for the money if we didn't 

628
00:22:49,152 --> 00:22:51,319
want it , uh , so we'll go back to the 

629
00:22:51,319 --> 00:22:53,097
White House and we'll work with 

630
00:22:53,097 --> 00:22:52,949
Congress to come up with a new strategy 

631
00:22:53,410 --> 00:22:55,577
if the White House and Congress decide 

632
00:22:55,577 --> 00:22:57,910
reconciliation is not the right vehicle . 

633
00:22:57,910 --> 00:22:57,729
And then for General Whitney , uh , 

634
00:22:57,849 --> 00:23:00,016
obviously everything , you know , it's 

635
00:23:00,016 --> 00:23:02,182
a historic budget , but there's always 

636
00:23:02,182 --> 00:23:04,127
a cut line . What kind of unfunded 

637
00:23:04,127 --> 00:23:06,349
priorities should we expect to come out 

638
00:23:06,349 --> 00:23:08,571
of the services now since this has been 

639
00:23:08,571 --> 00:23:08,329
requested ? I , I think , uh , this has 

640
00:23:08,329 --> 00:23:10,329
been a generational investment , as 

641
00:23:10,329 --> 00:23:12,551
Honorable Hurst has said . I think what 

642
00:23:12,551 --> 00:23:14,496
you're gonna see coming out of the 

643
00:23:14,496 --> 00:23:14,250
services and a , and out of the 

644
00:23:14,250 --> 00:23:16,361
combatant commands is a very balanced 

645
00:23:16,361 --> 00:23:17,917
approach . Recognizing this 

646
00:23:17,917 --> 00:23:19,917
generational investment , thank you 

647
00:23:19,917 --> 00:23:22,310
very much . Thank you , um , Tara cop 

648
00:23:22,310 --> 00:23:24,532
of the Washington Post . Um , one quick 

649
00:23:24,532 --> 00:23:27,339
cleanup on the , so does the total , um , 

650
00:23:27,550 --> 00:23:29,772
of the , I , I added up all the big pie 

651
00:23:29,772 --> 00:23:31,939
chart , and it's about 1.5 . That does 

652
00:23:31,939 --> 00:23:34,161
include the reconciliation request . Is 

653
00:23:34,161 --> 00:23:36,328
that correct ? That's right . OK . And 

654
00:23:36,328 --> 00:23:38,439
then , um , on the , uh , procurement 

655
00:23:38,439 --> 00:23:40,661
of like the PAC 3s and the THAADs , you 

656
00:23:40,661 --> 00:23:42,883
see the number , and it's like that's a 

657
00:23:42,883 --> 00:23:44,939
huge number of munitions that you're 

658
00:23:44,939 --> 00:23:46,994
seeking . What's the timeline you're 

659
00:23:46,994 --> 00:23:49,217
looking at to get to that level of , of 

660
00:23:49,217 --> 00:23:51,430
buy ? Is that like over 5 years over 

661
00:23:51,699 --> 00:23:53,810
because I think it was like 1,000+ of 

662
00:23:53,810 --> 00:23:56,032
those munitions . It's a massive ramp , 

663
00:23:56,032 --> 00:23:58,032
but that's part of the department's 

664
00:23:58,032 --> 00:24:00,143
strategy . We're going to give them a 

665
00:24:00,143 --> 00:23:59,900
massive order . We're going to sustain 

666
00:23:59,900 --> 00:24:02,219
it over time and then we're gonna have 

667
00:24:02,219 --> 00:24:04,108
industry put forward the money to 

668
00:24:04,108 --> 00:24:06,219
actually invest in their facilities , 

669
00:24:06,219 --> 00:24:05,739
which is different than how we've done 

670
00:24:05,739 --> 00:24:07,739
business in the past because before 

671
00:24:07,739 --> 00:24:09,850
we've done , as we said , we want you 

672
00:24:09,850 --> 00:24:11,961
to increase production and then we've 

673
00:24:11,961 --> 00:24:11,910
gotten paid for it . Industry has 

674
00:24:11,910 --> 00:24:13,966
marginally increased production that 

675
00:24:13,966 --> 00:24:16,188
way . We're making them put skin in the 

676
00:24:16,188 --> 00:24:16,150
game . We're giving them a multi-year 

677
00:24:16,150 --> 00:24:18,317
order , and we expect them to meet the 

678
00:24:18,317 --> 00:24:20,539
ramp rates that they agreed to . And if 

679
00:24:20,539 --> 00:24:22,706
they don't , there'll be penalties for 

680
00:24:22,706 --> 00:24:21,589
them . OK , so it doesn't have a 

681
00:24:21,589 --> 00:24:23,756
specific timeline yet , but it has a , 

682
00:24:23,756 --> 00:24:26,033
you'll be expecting ramp rates . There , 

683
00:24:26,033 --> 00:24:28,033
there are agreed upon timelines for 

684
00:24:28,033 --> 00:24:29,867
each agreement with every single 

685
00:24:29,867 --> 00:24:31,922
defense contractor who's involved in 

686
00:24:31,922 --> 00:24:34,033
these multi-year procurements . Thank 

687
00:24:34,033 --> 00:24:35,922
you . Constantine , thanks , uh , 

688
00:24:35,922 --> 00:24:38,145
Konstantine Turpin , Associated Press . 

689
00:24:38,145 --> 00:24:40,089
Um , Obviously this budget request 

690
00:24:40,089 --> 00:24:42,311
comes on the heels of a major operation 

691
00:24:42,311 --> 00:24:44,478
in Venezuela , an ongoing operation in 

692
00:24:44,478 --> 00:24:46,533
Iran , um , which , uh , I mean , as 

693
00:24:46,533 --> 00:24:48,756
Haley asked , has damaged bases . We've 

694
00:24:48,756 --> 00:24:50,922
got an aircraft carrier that sustained 

695
00:24:50,922 --> 00:24:53,145
a major fire , so . I guess my question 

696
00:24:53,145 --> 00:24:52,829
is , you know , can you talk a break 

697
00:24:52,829 --> 00:24:54,996
out a little bit like the , the impact 

698
00:24:54,996 --> 00:24:56,940
of those operations on this budget 

699
00:24:56,940 --> 00:24:58,996
request ? What are we seeing in here 

700
00:24:58,996 --> 00:25:01,162
that is a direct result of the ongoing 

701
00:25:01,162 --> 00:25:03,496
conflict in Iran ? Well , it's , I mean , 

702
00:25:03,496 --> 00:25:05,496
this budget was formulated honestly 

703
00:25:05,496 --> 00:25:07,773
before we went into conflict with Iran , 

704
00:25:07,773 --> 00:25:09,885
right ? The overlap you'll see is the 

705
00:25:09,885 --> 00:25:11,718
request for munitions , which is 

706
00:25:11,718 --> 00:25:13,773
something we always need . We always 

707
00:25:13,773 --> 00:25:13,510
need to increase our magazine depth , 

708
00:25:13,800 --> 00:25:15,967
but outside of that , there aren't any 

709
00:25:15,967 --> 00:25:18,078
operational costs in here from Iran . 

710
00:25:18,078 --> 00:25:21,010
Thank you . Uh , thank you , uh , Chris 

711
00:25:21,010 --> 00:25:22,954
Gordon , uh , Air and Space Forces 

712
00:25:22,954 --> 00:25:25,170
magazine . Um , I also have a question 

713
00:25:25,170 --> 00:25:27,160
on the munitions , um , expended 

714
00:25:27,160 --> 00:25:29,410
against Iran , but , um , I understand 

715
00:25:29,410 --> 00:25:31,743
it's not reflected in this budget , but . 

716
00:25:31,839 --> 00:25:34,280
How long will it take to replenish 

717
00:25:34,280 --> 00:25:36,336
these munitions ? I mean , as you've 

718
00:25:36,336 --> 00:25:38,336
highlighted , it takes years to get 

719
00:25:38,336 --> 00:25:40,447
munitions . So , um , are you already 

720
00:25:40,447 --> 00:25:42,669
planning ahead for that for next year , 

721
00:25:42,669 --> 00:25:44,836
and how long do you think it will take 

722
00:25:44,836 --> 00:25:46,891
to replenish the department's stocks 

723
00:25:46,891 --> 00:25:49,058
from what's been used ? I mean , every 

724
00:25:49,058 --> 00:25:51,280
time we use something in combat , we're 

725
00:25:51,280 --> 00:25:51,000
always looking at how to reconstitute 

726
00:25:51,000 --> 00:25:53,119
and sustain that capability . So the 

727
00:25:53,119 --> 00:25:55,119
department's obviously having those 

728
00:25:55,119 --> 00:25:57,341
conversations and it's reflected , um , 

729
00:25:57,341 --> 00:25:59,452
not just in this budget request , but 

730
00:25:59,452 --> 00:26:01,619
in any supplement that we would or may 

731
00:26:01,619 --> 00:26:04,390
send over to the Hill . Hey Thomas Devo 

732
00:26:04,390 --> 00:26:07,310
at Defense One , for the nearly 1.5 

733
00:26:07,310 --> 00:26:09,477
billion for border related operational 

734
00:26:09,477 --> 00:26:11,532
requirements in the national defense 

735
00:26:11,532 --> 00:26:13,588
areas , can you provide a little bit 

736
00:26:13,588 --> 00:26:15,754
more clarity on what that is ? Is that 

737
00:26:15,754 --> 00:26:17,699
construction ? Is it surveying for 

738
00:26:17,699 --> 00:26:19,866
expansion ? Is it , you know , getting 

739
00:26:19,866 --> 00:26:22,199
more equipment , trucks down there , um , 

740
00:26:22,199 --> 00:26:24,421
just any clarity you can provide on the 

741
00:26:24,421 --> 00:26:26,532
breakdown of that . Yeah , thanks for 

742
00:26:26,532 --> 00:26:28,643
the question . The , the bulk of that 

743
00:26:28,643 --> 00:26:30,588
number is actually for operational 

744
00:26:30,588 --> 00:26:30,459
expenses to sustain people on the 

745
00:26:30,459 --> 00:26:32,681
border . Um , there may be a little bit 

746
00:26:32,681 --> 00:26:34,515
of , uh , construction there for 

747
00:26:34,515 --> 00:26:36,737
temporary facilities , yeah , temporary 

748
00:26:36,737 --> 00:26:38,737
facilities at most , but , but very 

749
00:26:38,737 --> 00:26:40,959
little . So , no permanent structures . 

750
00:26:40,959 --> 00:26:43,126
OK , not in this request . And then as 

751
00:26:43,126 --> 00:26:45,126
a follow up to a related topic , 75 

752
00:26:45,126 --> 00:26:47,181
billion for space superiority , um , 

753
00:26:47,181 --> 00:26:49,070
how much of that is counter space 

754
00:26:49,070 --> 00:26:51,403
capabilities ? You mentioned , you know , 

755
00:26:51,403 --> 00:26:53,626
PNT and such , but is there a breakdown 

756
00:26:53,626 --> 00:26:55,848
at all on anything more specific ? Um , 

757
00:26:55,848 --> 00:26:57,848
no , sir , we don't break that down 

758
00:26:57,848 --> 00:27:01,000
intentionally . Yeah . David Z , Real 

759
00:27:01,000 --> 00:27:03,111
America's Voice , uh , good morning . 

760
00:27:04,250 --> 00:27:06,930
Does the , uh , munitions request 

761
00:27:06,930 --> 00:27:09,099
include the recent announcement of 

762
00:27:09,099 --> 00:27:11,321
tripling the capacity of the production 

763
00:27:11,321 --> 00:27:13,609
of the PAC-3s , and how many of the 

764
00:27:13,609 --> 00:27:15,609
PAC-3 and THAAD systems that are in 

765
00:27:15,609 --> 00:27:18,609
this budget go towards protecting 

766
00:27:18,609 --> 00:27:20,665
foreign entities , or is that always 

767
00:27:20,665 --> 00:27:22,553
separate in foreign aid budgets ? 

768
00:27:22,839 --> 00:27:24,839
Thanks for the question . Yeah , it 

769
00:27:24,839 --> 00:27:27,006
does include that massive ramp and PAC 

770
00:27:27,006 --> 00:27:30,300
3 , purchases . And so for the budget , 

771
00:27:30,400 --> 00:27:32,456
we don't decide where munitions go , 

772
00:27:32,479 --> 00:27:34,590
right ? That's , that's the decisions 

773
00:27:34,590 --> 00:27:36,535
made inside , uh , the Pentagon in 

774
00:27:36,535 --> 00:27:38,812
consultation with the White House . Uh , 

775
00:27:38,812 --> 00:27:40,979
so right now we're focused on how many 

776
00:27:40,979 --> 00:27:43,146
we're going to buy , and those will be 

777
00:27:43,146 --> 00:27:45,257
decisions about operations to be made 

778
00:27:45,257 --> 00:27:44,760
later . So if I could , sir , just to 

779
00:27:44,760 --> 00:27:47,000
clarify a little bit . Um , we , well , 

780
00:27:47,079 --> 00:27:48,968
we don't choose where we're gonna 

781
00:27:48,968 --> 00:27:50,968
employ them ahead of time , right ? 

782
00:27:50,968 --> 00:27:53,079
They are for the US stocks . They are 

783
00:27:53,079 --> 00:27:54,912
for our capabilities . Foreign , 

784
00:27:54,912 --> 00:27:57,135
foreign purchases are handled through a 

785
00:27:57,135 --> 00:28:00,170
foreign military sales effort . Hi 

786
00:28:00,170 --> 00:28:02,281
Ashley Murphy with Breaking Defense . 

787
00:28:02,281 --> 00:28:04,337
Um , I want to follow back up on the 

788
00:28:04,337 --> 00:28:07,079
reconciliation plan . Um , it's what , 

789
00:28:07,130 --> 00:28:10,050
uh , 350 billion , but a lot of like 

790
00:28:10,050 --> 00:28:12,410
high priority things in there , whether 

791
00:28:12,410 --> 00:28:15,569
it's Golden Dome , munitions , um , the 

792
00:28:15,569 --> 00:28:17,791
Defense Autonomous warfare Group . What 

793
00:28:17,791 --> 00:28:19,902
risk are you assuming by placing some 

794
00:28:19,902 --> 00:28:21,847
of these top priorities within the 

795
00:28:21,847 --> 00:28:24,099
reconciliation ? Yeah , I think so the 

796
00:28:24,099 --> 00:28:26,420
question I would say it like this , we 

797
00:28:26,420 --> 00:28:28,476
put a lot of high priority things in 

798
00:28:28,476 --> 00:28:30,587
there for a variety of reasons . Um , 

799
00:28:30,587 --> 00:28:32,920
if we use mandatory spending , number 1 , 

800
00:28:32,920 --> 00:28:35,031
we have some more flexibility on when 

801
00:28:35,031 --> 00:28:37,364
we obligate those funds . Uh , number 2 , 

802
00:28:37,364 --> 00:28:39,531
we did it for things that were kind of 

803
00:28:39,531 --> 00:28:41,698
a one-time plus up that we really want 

804
00:28:41,698 --> 00:28:43,809
to increase our funding of . And then 

805
00:28:43,809 --> 00:28:43,420
finally , when there's technology 

806
00:28:43,420 --> 00:28:45,642
that's changing quickly like for Golden 

807
00:28:45,642 --> 00:28:47,864
Domeer for the dog , uh , we try to put 

808
00:28:47,864 --> 00:28:49,698
things there . Uh , if we're not 

809
00:28:49,698 --> 00:28:51,864
successful in getting a reconciliation 

810
00:28:51,864 --> 00:28:51,729
bill passed , then we'll revisit that 

811
00:28:51,729 --> 00:28:53,785
with the White House and Congress to 

812
00:28:53,785 --> 00:28:56,007
achieve our budget request . And then I 

813
00:28:56,007 --> 00:28:58,229
also wanted to ask about the dog . Huge 

814
00:28:58,229 --> 00:29:00,285
jump , $55 billion but it looks like 

815
00:29:00,285 --> 00:29:02,910
it's placed mostly in RDTNE , but 

816
00:29:02,910 --> 00:29:04,910
reconciliation , does that give you 

817
00:29:04,910 --> 00:29:07,188
flexibility to actually make purchases , 

818
00:29:07,390 --> 00:29:10,010
or is this all going to be research and 

819
00:29:10,010 --> 00:29:12,066
development ? Is it spread among the 

820
00:29:12,066 --> 00:29:14,232
services ? Could you just sort of walk 

821
00:29:14,232 --> 00:29:16,288
us through some of this ? I think of 

822
00:29:16,288 --> 00:29:18,399
the dog as a pathfinder . They're out 

823
00:29:18,399 --> 00:29:20,510
there finding the best technology for 

824
00:29:20,510 --> 00:29:22,843
us and working on integration . They're , 

825
00:29:22,843 --> 00:29:22,520
uh , with these companies live right 

826
00:29:22,520 --> 00:29:24,550
now testing different systems and 

827
00:29:24,550 --> 00:29:26,717
orchestration tools for autonomy , and 

828
00:29:26,717 --> 00:29:28,772
they're giving them live feedback so 

829
00:29:28,772 --> 00:29:30,939
it's a very agile process and a lot of 

830
00:29:30,939 --> 00:29:30,910
the programs themselves will be 

831
00:29:30,910 --> 00:29:33,077
executed the services . General , what 

832
00:29:33,077 --> 00:29:35,243
you , I , I , I would say the question 

833
00:29:35,243 --> 00:29:37,410
about research and development funding 

834
00:29:37,410 --> 00:29:39,577
makes perfect sense in my mind because 

835
00:29:39,577 --> 00:29:39,400
you're talking about innovation in 

836
00:29:39,400 --> 00:29:41,567
terms of weeks and the ability to spin 

837
00:29:41,567 --> 00:29:43,456
and , and , and . And develop new 

838
00:29:43,456 --> 00:29:45,733
capabilities . It's really what we are . 

839
00:29:45,733 --> 00:29:47,733
It's not that you're buying one set 

840
00:29:47,733 --> 00:29:49,789
baseline and you're gonna procure it 

841
00:29:49,789 --> 00:29:49,719
forever . It's a , it's an incremental 

842
00:29:49,719 --> 00:29:51,775
capability , which is if you look at 

843
00:29:51,775 --> 00:29:53,941
the . Federal regulations , that tells 

844
00:29:53,941 --> 00:29:55,941
you that's research and development 

845
00:29:55,941 --> 00:29:57,608
type money . Just sorry , one 

846
00:29:57,608 --> 00:29:59,163
clarification . Since it is 

847
00:29:59,163 --> 00:30:01,330
reconciliation , could you use some of 

848
00:30:01,330 --> 00:30:03,552
that for procurement , or it's just $55 

849
00:30:03,552 --> 00:30:05,775
billion ? You can , you can buy and you 

850
00:30:05,775 --> 00:30:07,552
can buy items with research and 

851
00:30:07,552 --> 00:30:07,010
development , but you just typically 

852
00:30:07,010 --> 00:30:09,930
don't buy a large lot of things of one 

853
00:30:09,930 --> 00:30:13,849
particular thing . I Hi , thanks 

854
00:30:13,849 --> 00:30:15,969
for doing this . I actually have 3 

855
00:30:15,969 --> 00:30:18,410
unrelated questions . Um , first , you 

856
00:30:18,410 --> 00:30:21,040
know , last year we had a couple 

857
00:30:21,040 --> 00:30:23,290
billion in Pentagon funds that was 

858
00:30:23,290 --> 00:30:25,609
taken out for like military barracks in 

859
00:30:25,609 --> 00:30:27,609
Japan and they were put towards the 

860
00:30:27,609 --> 00:30:30,050
border . You said all of the issues 

861
00:30:30,050 --> 00:30:32,217
with the barracks are funded . Are you 

862
00:30:32,217 --> 00:30:34,439
backstopping that ? Is that going to be 

863
00:30:34,439 --> 00:30:36,810
taken care of completely ? So what we 

864
00:30:36,810 --> 00:30:38,977
did is we have a list of barracks that 

865
00:30:38,977 --> 00:30:41,143
are in poor and failing condition . We 

866
00:30:41,143 --> 00:30:43,477
created a building condition index , uh , 

867
00:30:43,477 --> 00:30:45,643
and I think if you're below 80 on that 

868
00:30:45,643 --> 00:30:44,770
index , you're considered poor or 

869
00:30:44,770 --> 00:30:46,609
failing . So we went through and 

870
00:30:46,609 --> 00:30:48,776
calculated how much money we'd have to 

871
00:30:48,776 --> 00:30:50,609
invest to remediate every single 

872
00:30:50,609 --> 00:30:52,942
barracks that's in that condition , and , 

873
00:30:52,942 --> 00:30:55,053
and that's what we say we're going to 

874
00:30:55,053 --> 00:30:54,449
remediate all the barracks that are 

875
00:30:54,449 --> 00:30:57,209
poor or substandard . So it would 

876
00:30:57,209 --> 00:30:59,320
include that they're all on that list 

877
00:30:59,320 --> 00:31:01,431
if they were on the list , then we're 

878
00:31:01,431 --> 00:31:03,765
going to remediate them , OK . And then , 

879
00:31:03,765 --> 00:31:05,820
so the second clarification is . You 

880
00:31:05,820 --> 00:31:07,876
had , had mentioned that none of the 

881
00:31:07,876 --> 00:31:10,042
fixes for any of the damage under this 

882
00:31:10,042 --> 00:31:12,729
war are included in this . So there's 

883
00:31:12,729 --> 00:31:16,109
gonna be a roughly $200 million 

884
00:31:17,099 --> 00:31:19,043
additional or or billion dollars , 

885
00:31:19,043 --> 00:31:21,377
excuse me , a $200 billion supplemental . 

886
00:31:21,377 --> 00:31:24,099
So in total , the US , the American 

887
00:31:24,099 --> 00:31:27,550
people can expect $1.7 trillion 

888
00:31:27,939 --> 00:31:30,400
to DOD . Is that , that the total ask 

889
00:31:30,400 --> 00:31:32,567
that's gonna be coming down the pipe , 

890
00:31:32,567 --> 00:31:35,569
$1.5 trillion . And plus 200 billion . 

891
00:31:35,819 --> 00:31:37,763
Well , as Director Vaughtt said in 

892
00:31:37,763 --> 00:31:39,986
testimony , I think last week , uh , we 

893
00:31:39,986 --> 00:31:41,763
don't have a final number for a 

894
00:31:41,763 --> 00:31:43,930
supplemental request and we don't have 

895
00:31:43,930 --> 00:31:45,875
a final number for , uh , what the 

896
00:31:45,875 --> 00:31:47,986
damage is to , uh , our installations 

897
00:31:47,986 --> 00:31:50,208
overseas , right ? It really depends on 

898
00:31:50,208 --> 00:31:49,939
how we decide to rebuild those or if we 

899
00:31:49,939 --> 00:31:52,161
do . Our partners also might contribute 

900
00:31:52,161 --> 00:31:54,328
a share to that construction , uh , so 

901
00:31:54,328 --> 00:31:56,550
we don't have a great estimate for what 

902
00:31:56,550 --> 00:31:58,550
it would take to reconstitute those 

903
00:31:58,550 --> 00:32:00,717
facilities . And finally , what is the 

904
00:32:00,717 --> 00:32:02,828
number one priority if you had to , I 

905
00:32:02,828 --> 00:32:04,772
know that , that there are several 

906
00:32:04,772 --> 00:32:06,939
priorities , but where is the greatest 

907
00:32:06,939 --> 00:32:09,217
need right now where the budget should , 

908
00:32:09,217 --> 00:32:12,150
should fix problems ? This budget is 

909
00:32:12,150 --> 00:32:14,469
engineered to try to reconstitute 

910
00:32:14,469 --> 00:32:16,910
America's defense industrial base and 

911
00:32:16,910 --> 00:32:19,560
give us capacity . That's the number 

912
00:32:19,560 --> 00:32:21,449
one priority for me . Although if 

913
00:32:21,449 --> 00:32:23,560
you're I , I was gonna say I'd go the 

914
00:32:23,560 --> 00:32:23,479
opposite , right ? And this is the 

915
00:32:23,479 --> 00:32:25,646
beauty of this , this budget , right ? 

916
00:32:25,646 --> 00:32:27,701
By having a budget of this size , we 

917
00:32:27,701 --> 00:32:29,646
were not forced to make that trade 

918
00:32:29,646 --> 00:32:31,368
between investment in , in the 

919
00:32:31,368 --> 00:32:33,535
capabilities we need and the readiness 

920
00:32:33,535 --> 00:32:35,535
of our force . And so , to me , the 

921
00:32:35,535 --> 00:32:37,757
beauty is we can have both in this , in 

922
00:32:37,757 --> 00:32:39,701
this conversation . And then we're 

923
00:32:39,701 --> 00:32:41,701
really interested in that readiness 

924
00:32:41,701 --> 00:32:44,060
piece . OK , we're doing good on time . 

925
00:32:44,219 --> 00:32:46,219
I do need to take a couple from the 

926
00:32:46,219 --> 00:32:47,886
phone . Uh , Brandy Vincent . 

927
00:32:50,140 --> 00:32:52,660
Hi , thank you so much for doing this 

928
00:32:52,660 --> 00:32:54,699
today . I'm following up on Ash's 

929
00:32:54,699 --> 00:32:57,540
questions about the dog . So , A little 

930
00:32:57,540 --> 00:32:59,651
bit more on that . It's , it's mostly 

931
00:32:59,651 --> 00:33:02,060
for drones and drone related software 

932
00:33:02,060 --> 00:33:04,116
across all military domains , but it 

933
00:33:04,116 --> 00:33:06,810
doesn't represent all of the drone 

934
00:33:06,810 --> 00:33:08,699
investments , these massive drone 

935
00:33:08,699 --> 00:33:10,866
investments that you guys are making . 

936
00:33:10,866 --> 00:33:13,088
Can you provide a little bit of clarity 

937
00:33:13,088 --> 00:33:15,199
on the difference between those two ? 

938
00:33:15,199 --> 00:33:17,366
And then is there anything for counter 

939
00:33:17,366 --> 00:33:19,254
drone technologies within the dog 

940
00:33:19,254 --> 00:33:21,800
funding as well ? Hey , so thank you 

941
00:33:21,800 --> 00:33:24,022
very much for the question and I'll try 

942
00:33:24,022 --> 00:33:26,133
and answer both questions at the same 

943
00:33:26,133 --> 00:33:25,640
time . I know it's a , that's a 

944
00:33:25,640 --> 00:33:28,160
challenge for , for many folks . So if 

945
00:33:28,160 --> 00:33:30,327
I don't get this right , just say so . 

946
00:33:30,327 --> 00:33:32,489
Um , so we talked about in autonomous 

947
00:33:32,489 --> 00:33:34,489
operations and autonomous offensive 

948
00:33:34,489 --> 00:33:36,656
capabilities put forward by the dog of 

949
00:33:36,656 --> 00:33:39,439
about $54 billion . There's also $20 

950
00:33:39,439 --> 00:33:43,140
billion to , to , In requests for 

951
00:33:43,880 --> 00:33:46,680
countering small drones or counter 

952
00:33:46,680 --> 00:33:49,680
small UASs , um , we look at that as a 

953
00:33:49,680 --> 00:33:51,791
as a capability that's necessary that 

954
00:33:51,791 --> 00:33:54,013
we've seen in the battlefields . If you 

955
00:33:54,013 --> 00:33:56,180
look at what's going on in Ukraine and 

956
00:33:56,180 --> 00:33:58,236
their ability to have drone on drone 

957
00:33:58,236 --> 00:34:00,347
type warfare and the ability to do so 

958
00:34:00,347 --> 00:34:02,569
at at cost and scale , uh , it's really 

959
00:34:02,569 --> 00:34:04,624
something that we need to figure out 

960
00:34:04,624 --> 00:34:06,847
how to take advantage of to protect our 

961
00:34:06,847 --> 00:34:09,013
force . And so we , we are making that 

962
00:34:09,013 --> 00:34:10,791
investment in the counter drone 

963
00:34:10,791 --> 00:34:13,013
capability as well . OK , one more from 

964
00:34:13,013 --> 00:34:15,689
the phone . Jeff , Jeff Shogel . Thank 

965
00:34:15,689 --> 00:34:17,800
you , General . When you were talking 

966
00:34:17,800 --> 00:34:19,578
about the money that's going to 

967
00:34:19,578 --> 00:34:21,911
barracks and also , uh , military bases , 

968
00:34:21,911 --> 00:34:24,133
I believe I heard you say $57 billion . 

969
00:34:24,133 --> 00:34:26,239
Is that figure correct or is it $37 

970
00:34:26,239 --> 00:34:28,295
billion ? Thank you , sir . It's a , 

971
00:34:28,295 --> 00:34:31,290
it's a $5757 billion in facilities 

972
00:34:31,290 --> 00:34:33,068
sustainment , restoration , and 

973
00:34:33,068 --> 00:34:35,209
modernization , of which it includes 

974
00:34:35,209 --> 00:34:38,000
the barracks money , the housing money , 

975
00:34:38,080 --> 00:34:40,136
and other facilities work across the 

976
00:34:40,136 --> 00:34:43,559
department . OK . 

977
00:34:44,118 --> 00:34:46,451
Hi , Brian O'Reilly with Punchbowl News . 

978
00:34:46,451 --> 00:34:48,618
Um , quick follow up , Mr . Hurst , to 

979
00:34:48,618 --> 00:34:50,674
something that you said before . You 

980
00:34:50,674 --> 00:34:50,458
mentioned penalties for contractors 

981
00:34:50,458 --> 00:34:52,680
that don't meet the ramp out rates laid 

982
00:34:52,680 --> 00:34:54,958
out in the multi-year procurement , uh , 

983
00:34:54,958 --> 00:34:57,069
framework agreements . Could you just 

984
00:34:57,069 --> 00:34:59,069
sort of expound on what those are , 

985
00:34:59,069 --> 00:34:58,599
what they look like , and I have an 

986
00:34:58,599 --> 00:35:00,599
actual budget question after that . 

987
00:35:00,599 --> 00:35:02,821
I'll give you something very general if 

988
00:35:02,821 --> 00:35:02,769
that's OK . So first off , like I said , 

989
00:35:02,849 --> 00:35:05,071
we're requiring contractors to foot the 

990
00:35:05,071 --> 00:35:07,182
bill , uh , for Capex , right , which 

991
00:35:07,182 --> 00:35:09,293
is something we haven't done before . 

992
00:35:09,293 --> 00:35:11,293
So in order to pay for that capex , 

993
00:35:11,293 --> 00:35:13,405
they have to sell a certain number of 

994
00:35:13,405 --> 00:35:13,260
munitions to the United States . If 

995
00:35:13,260 --> 00:35:15,538
they don't meet their production goals , 

996
00:35:15,538 --> 00:35:17,760
they're not going to do that . So their 

997
00:35:17,760 --> 00:35:19,760
loss , their initial penalty is the 

998
00:35:19,760 --> 00:35:19,100
capex itself if they don't meet 

999
00:35:19,100 --> 00:35:21,267
production rates . And then there will 

1000
00:35:21,267 --> 00:35:23,322
be , uh , provisions in contracts to 

1001
00:35:23,322 --> 00:35:25,322
penalize contractors who don't meet 

1002
00:35:25,322 --> 00:35:27,322
production ramp rates as well . And 

1003
00:35:27,322 --> 00:35:29,156
then budget question , obviously 

1004
00:35:29,156 --> 00:35:31,211
munitions are a massive ramp up , as 

1005
00:35:31,211 --> 00:35:33,211
you said , in this budget request , 

1006
00:35:33,211 --> 00:35:32,830
tens of billions of dollars going 

1007
00:35:32,830 --> 00:35:34,997
towards these these critical systems . 

1008
00:35:35,310 --> 00:35:38,459
How would a supplemental request be any 

1009
00:35:38,459 --> 00:35:40,681
different , especially when it comes to 

1010
00:35:40,681 --> 00:35:42,737
munitions ? There could certainly be 

1011
00:35:42,737 --> 00:35:44,626
overlap in a supplemental request 

1012
00:35:44,626 --> 00:35:46,848
because there is going to be a focus on 

1013
00:35:46,848 --> 00:35:45,949
munitions in this budget or a 

1014
00:35:45,949 --> 00:35:48,171
supplemental , uh , and if that was the 

1015
00:35:48,171 --> 00:35:50,449
case where we had overlapping requests , 

1016
00:35:50,449 --> 00:35:52,505
we could talk to the White House and 

1017
00:35:52,505 --> 00:35:51,830
Congress about how we want to revise 

1018
00:35:51,830 --> 00:35:54,679
them , especially the budget . We got 5 

1019
00:35:54,679 --> 00:35:57,469
more minutes left . Thank you , Todd 

1020
00:35:57,469 --> 00:36:00,290
Wood from CDM . There's been a view in 

1021
00:36:00,290 --> 00:36:02,179
the force , especially during the 

1022
00:36:02,179 --> 00:36:04,290
global war on terror , that the trend 

1023
00:36:04,290 --> 00:36:06,401
towards centralized command has had a 

1024
00:36:06,401 --> 00:36:08,457
negative impact on commanders in the 

1025
00:36:08,457 --> 00:36:10,290
field . You also saw that in the 

1026
00:36:10,290 --> 00:36:12,512
Ukraine war with being controlled and a 

1027
00:36:12,512 --> 00:36:14,790
lot of negative decisions , many think . 

1028
00:36:14,790 --> 00:36:16,457
Does this budget support that 

1029
00:36:16,457 --> 00:36:18,346
centralization ? Does it drive it 

1030
00:36:18,346 --> 00:36:20,568
forward , or does it support commanders 

1031
00:36:20,568 --> 00:36:22,623
in the field ? I , I have heard that 

1032
00:36:22,623 --> 00:36:24,512
there's a multi-billion dollar CC 

1033
00:36:24,512 --> 00:36:26,679
program . Yeah , that's an interesting 

1034
00:36:26,679 --> 00:36:28,679
question . I don't think the issues 

1035
00:36:28,679 --> 00:36:30,901
commanders having awareness , right ? I 

1036
00:36:30,901 --> 00:36:33,012
think that's more of a cultural issue 

1037
00:36:33,012 --> 00:36:35,012
where commanders need to understand 

1038
00:36:35,012 --> 00:36:37,179
when they need to insert themselves in 

1039
00:36:37,179 --> 00:36:36,530
the chain of command and when they need 

1040
00:36:36,530 --> 00:36:38,669
to stay out and then uh . Let 

1041
00:36:38,669 --> 00:36:40,891
subordinates take the lead because they 

1042
00:36:40,891 --> 00:36:43,002
have better situational awareness . I 

1043
00:36:43,002 --> 00:36:42,479
was gonna say that's , that's the 

1044
00:36:42,479 --> 00:36:44,646
age-old question , right ? As , as a , 

1045
00:36:44,646 --> 00:36:46,701
as somebody on the , on the tactical 

1046
00:36:46,701 --> 00:36:48,701
battlefield , you see your tactical 

1047
00:36:48,701 --> 00:36:50,868
space , but the operational commanders 

1048
00:36:50,868 --> 00:36:50,719
obviously gonna see multiple tactical 

1049
00:36:50,719 --> 00:36:52,886
pictures at the same time . And so how 

1050
00:36:52,886 --> 00:36:54,941
do you have that , that conversation 

1051
00:36:54,941 --> 00:36:57,163
between the two ? The principle of , of 

1052
00:36:57,163 --> 00:36:59,219
warfare has always been , you know , 

1053
00:36:59,219 --> 00:37:01,330
centralized direction , decentralized 

1054
00:37:01,330 --> 00:37:03,497
execution , and so I think we continue 

1055
00:37:03,497 --> 00:37:05,663
that with this effort . Supplemental , 

1056
00:37:05,663 --> 00:37:07,775
is there any funds in this budget for 

1057
00:37:07,775 --> 00:37:09,997
the Ukraine conflict that you know of ? 

1058
00:37:09,997 --> 00:37:09,909
And also , have you scrubbed it for DEI 

1059
00:37:09,909 --> 00:37:12,076
initiatives for this year ? There's no 

1060
00:37:12,076 --> 00:37:14,187
DEI money in this budget , that's for 

1061
00:37:14,187 --> 00:37:16,889
sure . As far as Ukraine conflict , one 

1062
00:37:16,889 --> 00:37:18,833
of our big problems as a country , 

1063
00:37:18,833 --> 00:37:20,778
right , is we haven't been able to 

1064
00:37:20,778 --> 00:37:22,833
produce enough to support our allies 

1065
00:37:22,833 --> 00:37:24,945
and partners , whether it's munitions 

1066
00:37:24,945 --> 00:37:24,780
or aircraft or a variety of systems , 

1067
00:37:24,810 --> 00:37:27,032
and the waits for FMS have grown longer 

1068
00:37:27,032 --> 00:37:29,810
and longer . So in a way this budget is 

1069
00:37:29,810 --> 00:37:32,239
engineered again to produce more , uh , 

1070
00:37:32,290 --> 00:37:34,457
which gives the commander in chief and 

1071
00:37:34,457 --> 00:37:36,679
Congress more flexibility in how we aid 

1072
00:37:36,679 --> 00:37:39,012
our our allies and partners . Thank you . 

1073
00:37:39,012 --> 00:37:41,234
Doing good on time . Hey , I'm , Marcus 

1074
00:37:41,234 --> 00:37:43,401
Weisser with The Wall Street Journal . 

1075
00:37:43,401 --> 00:37:43,379
Uh , as you mentioned , there , the 

1076
00:37:43,590 --> 00:37:46,389
budget's 1.5 , 750 billion is 

1077
00:37:46,389 --> 00:37:48,278
reconciliation , um , I'm sorry , 

1078
00:37:48,278 --> 00:37:50,129
procurement and R&D . Given the 

1079
00:37:50,389 --> 00:37:52,500
reductions in the federal workforce , 

1080
00:37:52,590 --> 00:37:54,812
how , how confident are you that you'll 

1081
00:37:54,812 --> 00:37:56,812
be able to execute this in a timely 

1082
00:37:56,812 --> 00:37:59,034
manner ? So one of the major challenges 

1083
00:37:59,034 --> 00:38:00,812
of this budget is to be able to 

1084
00:38:00,812 --> 00:38:02,812
obligate dollars in a timely manner 

1085
00:38:02,812 --> 00:38:05,146
because it's such a large increase , uh , 

1086
00:38:05,146 --> 00:38:06,923
but we haven't been taking away 

1087
00:38:06,923 --> 00:38:09,090
workforce from areas that are involved 

1088
00:38:09,090 --> 00:38:11,201
in critical efforts like the dog or , 

1089
00:38:11,201 --> 00:38:13,423
you know , space acquisition , which is 

1090
00:38:13,423 --> 00:38:15,646
where a lot of this money goes and so I 

1091
00:38:15,646 --> 00:38:15,409
think most of our workforce cuts have 

1092
00:38:15,409 --> 00:38:17,576
been in things that will not be , um . 

1093
00:38:18,000 --> 00:38:19,889
These people will not be directly 

1094
00:38:19,889 --> 00:38:21,833
obligating funds . People left the 

1095
00:38:21,833 --> 00:38:24,056
workforce . As a quick follow up , um , 

1096
00:38:24,056 --> 00:38:26,222
the current reconciliation , I believe 

1097
00:38:26,222 --> 00:38:28,222
98% of that's gonna be , uh , spent 

1098
00:38:28,222 --> 00:38:30,056
over a year . What's your , uh , 

1099
00:38:30,056 --> 00:38:32,167
thinking on the 350 over the timeline 

1100
00:38:32,167 --> 00:38:34,278
that you're gonna actually spend it ? 

1101
00:38:34,278 --> 00:38:36,389
It'll depend , um , for , so for some 

1102
00:38:36,389 --> 00:38:38,500
things , let's go to , uh , Office of 

1103
00:38:38,500 --> 00:38:40,500
Strategic Capital , right ? They're 

1104
00:38:40,500 --> 00:38:42,722
getting $20 billion in this budget . If 

1105
00:38:42,722 --> 00:38:44,722
they have a ton of good initiatives 

1106
00:38:44,722 --> 00:38:46,833
that they want to fund and offer loan 

1107
00:38:46,833 --> 00:38:46,790
guarantees or loans for in that first 

1108
00:38:46,790 --> 00:38:48,734
year , they may try to use all the 

1109
00:38:48,734 --> 00:38:50,846
money . Uh , if they don't have a lot 

1110
00:38:50,846 --> 00:38:53,012
of good opportunities , they may delay 

1111
00:38:53,012 --> 00:38:54,957
obligating those funds into future 

1112
00:38:54,957 --> 00:38:57,179
fiscal years . And , and that's part of 

1113
00:38:57,179 --> 00:38:56,350
what we were doing when we engineered 

1114
00:38:56,350 --> 00:38:58,628
the reconciliation part of this budget . 

1115
00:38:58,628 --> 00:39:00,794
We were looking at things where we may 

1116
00:39:00,794 --> 00:39:00,760
need that flexibility based on 

1117
00:39:00,760 --> 00:39:03,600
opportunities . You have time for two 

1118
00:39:03,600 --> 00:39:06,320
more questions . Uh , thank you , thank 

1119
00:39:06,320 --> 00:39:08,679
you with Kong . Uh , thank you for 

1120
00:39:08,679 --> 00:39:10,929
holding this briefing . And I'd like to 

1121
00:39:10,929 --> 00:39:12,600
ask about deterrence in the 

1122
00:39:12,600 --> 00:39:14,939
Indo-Pacific region , uh , especially 

1123
00:39:15,360 --> 00:39:18,000
the Pacific Deterrence Initiative for 

1124
00:39:18,000 --> 00:39:21,040
PDI . Uh , what is the total funding 

1125
00:39:21,040 --> 00:39:24,770
level for PDI and , uh , how does that 

1126
00:39:24,770 --> 00:39:28,649
compare with fiscal year 2026 in terms 

1127
00:39:28,879 --> 00:39:31,459
of increase or decrease ? Yeah , I mean , 

1128
00:39:31,550 --> 00:39:33,661
I mean , I would , I would guess that 

1129
00:39:33,661 --> 00:39:35,717
the amount of funding in this budget 

1130
00:39:35,717 --> 00:39:37,883
that's relevant to the Indo-Pacific is 

1131
00:39:37,883 --> 00:39:40,050
drastically increased . I don't have a 

1132
00:39:40,050 --> 00:39:42,272
number of , of what would directly fall 

1133
00:39:42,272 --> 00:39:42,100
under PDI at this time . I don't have a 

1134
00:39:42,100 --> 00:39:44,156
number for you either , sir . I know 

1135
00:39:44,156 --> 00:39:46,378
that , uh , Admiral Paparo is satisfied 

1136
00:39:46,378 --> 00:39:48,544
that we have addressed his concerns as 

1137
00:39:48,544 --> 00:39:51,330
a part of this budget . Thank you . Yes , 

1138
00:39:51,780 --> 00:39:53,891
yes , uh , Michael Casey with O'Keefe 

1139
00:39:53,891 --> 00:39:55,891
Media Group . Um , thank you . Good 

1140
00:39:55,891 --> 00:39:58,002
morning . Um , do you know if there's 

1141
00:39:58,002 --> 00:40:00,058
anything in the budget for , um , an 

1142
00:40:00,058 --> 00:40:00,030
internal anti-espionage training for 

1143
00:40:00,030 --> 00:40:02,363
Department of War , Pentagon , and , uh , 

1144
00:40:02,363 --> 00:40:04,474
Department of Army , uh , employees ? 

1145
00:40:04,474 --> 00:40:06,141
Uh , we have , uh , we have a 

1146
00:40:06,141 --> 00:40:08,363
curriculum and , um , coursework around 

1147
00:40:08,363 --> 00:40:10,363
that already that people take on an 

1148
00:40:10,363 --> 00:40:12,474
annual basis . It's , I think we call 

1149
00:40:12,474 --> 00:40:11,870
it insider threat training in the 

1150
00:40:11,870 --> 00:40:14,229
department . Yeah , yeah , I , I would 

1151
00:40:14,229 --> 00:40:16,229
assume it just continues . Has that 

1152
00:40:16,229 --> 00:40:17,785
changed at all in the Trump 

1153
00:40:17,785 --> 00:40:19,785
administration compared to previous 

1154
00:40:19,785 --> 00:40:21,729
administrations ? I don't have any 

1155
00:40:21,729 --> 00:40:21,040
information to provide to you , sir . 

1156
00:40:21,159 --> 00:40:24,310
Sorry . Tony , just . Yeah , Tony Capao 

1157
00:40:24,310 --> 00:40:26,254
and Bloomberg , you're going to be 

1158
00:40:26,254 --> 00:40:28,588
asked this repeatedly because you don't , 

1159
00:40:28,588 --> 00:40:30,643
you can't pass an audit . There's no 

1160
00:40:30,643 --> 00:40:32,866
modified audit opinion . Why should the 

1161
00:40:32,866 --> 00:40:35,088
Pentagon be trusted with the obligation 

1162
00:40:35,088 --> 00:40:36,977
and tracking of this multibillion 

1163
00:40:36,977 --> 00:40:39,250
dollar generational investment . And 

1164
00:40:39,250 --> 00:40:41,417
then for general an easier one for you 

1165
00:40:42,290 --> 00:40:44,290
on the on the F-35 , you're ramping 

1166
00:40:44,290 --> 00:40:46,419
from 47 to 85 . This plane's had 

1167
00:40:46,419 --> 00:40:48,379
miserable to substandard MC rate , 

1168
00:40:48,479 --> 00:40:50,312
mission capable and full mission 

1169
00:40:50,312 --> 00:40:52,489
capable rates . What dollars are 

1170
00:40:52,489 --> 00:40:54,860
allocated in this budget to help beef 

1171
00:40:54,860 --> 00:40:56,916
up those mission capable rates while 

1172
00:40:56,916 --> 00:40:59,850
you keep buying the airplane ? I 

1173
00:40:59,850 --> 00:41:02,072
appreciate the question . Um , I know , 

1174
00:41:02,072 --> 00:41:04,017
I do actually because we're making 

1175
00:41:04,017 --> 00:41:06,072
progress in the audit . I expect the 

1176
00:41:06,072 --> 00:41:08,017
Navy to get a working capital fund 

1177
00:41:08,017 --> 00:41:07,679
opinion in 26 . I think they're gonna 

1178
00:41:07,679 --> 00:41:09,846
get their general fund opinion in 27 . 

1179
00:41:09,889 --> 00:41:12,056
I think the Department of War will get 

1180
00:41:12,056 --> 00:41:14,278
a working capital fund , a consolidated 

1181
00:41:14,278 --> 00:41:16,445
one in 27 , and I think we have a real 

1182
00:41:16,445 --> 00:41:18,500
shot at getting an opinion by 28 for 

1183
00:41:18,500 --> 00:41:20,556
the general fund . We've changed our 

1184
00:41:20,556 --> 00:41:19,530
approach . We're taking a more 

1185
00:41:19,530 --> 00:41:21,770
centralized approach . We're applying 

1186
00:41:21,770 --> 00:41:23,937
new technology to help us reconcile uh 

1187
00:41:23,937 --> 00:41:26,239
data , right ? Generative AI is a game 

1188
00:41:26,239 --> 00:41:28,406
changer for that . Marine Corps passed 

1189
00:41:28,406 --> 00:41:30,572
their audit through brute force . They 

1190
00:41:30,572 --> 00:41:30,479
get a lot of people to look at Excel 

1191
00:41:30,479 --> 00:41:32,590
sheets and reconcile data . We can do 

1192
00:41:32,590 --> 00:41:34,646
that with technology now and so it's 

1193
00:41:34,646 --> 00:41:36,646
really changing how we approach the 

1194
00:41:36,646 --> 00:41:36,639
audit and our likelihood of achieving 

1195
00:41:36,639 --> 00:41:38,719
one within this administration . Is 

1196
00:41:38,719 --> 00:41:40,886
there a correlation though between not 

1197
00:41:40,886 --> 00:41:42,941
having a modified audit opinions and 

1198
00:41:42,941 --> 00:41:45,459
the ability to track the obligations 

1199
00:41:45,879 --> 00:41:47,965
and the expenditure . The efficient 

1200
00:41:47,965 --> 00:41:49,632
expenditure of those tracking 

1201
00:41:49,632 --> 00:41:51,854
obligations has never been an issue for 

1202
00:41:51,854 --> 00:41:53,909
us passing an audit . It's more like 

1203
00:41:53,909 --> 00:41:56,132
this , right ? We buy a nuclear missile 

1204
00:41:56,132 --> 00:41:57,965
in the 1970s and then we have to 

1205
00:41:57,965 --> 00:41:59,965
account for the present day value , 

1206
00:41:59,965 --> 00:42:02,076
which includes every single repair or 

1207
00:42:02,076 --> 00:42:01,604
modification we made to that missile 

1208
00:42:01,604 --> 00:42:03,885
over 50+ years . That's the kind of 

1209
00:42:03,885 --> 00:42:05,718
stuff that makes it hard for the 

1210
00:42:05,718 --> 00:42:07,829
department to get an audit . It's not 

1211
00:42:07,829 --> 00:42:07,695
tracking our funding in the year of 

1212
00:42:07,695 --> 00:42:10,125
execution . OK , I really should have 

1213
00:42:10,125 --> 00:42:12,236
let it , I should have gone first and 

1214
00:42:12,236 --> 00:42:14,514
let you finish with the audit question . 

1215
00:42:14,514 --> 00:42:16,681
Uh , hey , Tony , thanks . Uh , on the 

1216
00:42:16,681 --> 00:42:18,792
F-35 , uh , you asked about the , the 

1217
00:42:18,792 --> 00:42:21,069
increasing the US production ramp rate . 

1218
00:42:21,069 --> 00:42:20,800
Uh , what that is , is that's 

1219
00:42:20,800 --> 00:42:22,967
increasing the , the production or the 

1220
00:42:22,967 --> 00:42:24,856
portion of the US buy at Lockheed 

1221
00:42:24,856 --> 00:42:27,078
Martin . We know what , uh , Lockheed's 

1222
00:42:27,078 --> 00:42:28,744
current , uh , max production 

1223
00:42:28,744 --> 00:42:30,967
capability is , and we're just taking a 

1224
00:42:30,967 --> 00:42:32,744
larger chunk of that for the US 

1225
00:42:32,744 --> 00:42:34,967
capabilities . This budget also funds , 

1226
00:42:34,967 --> 00:42:36,633
uh , the block 4 upgrades and 

1227
00:42:36,633 --> 00:42:38,800
modifications , as well as investments 

1228
00:42:38,800 --> 00:42:40,856
in making sure , uh , um , we've got 

1229
00:42:40,856 --> 00:42:42,856
the supply chain necessary . Um , I 

1230
00:42:42,856 --> 00:42:45,078
don't have a specific breakout of funds 

1231
00:42:45,078 --> 00:42:46,967
for you . We can get that for you 

1232
00:42:46,967 --> 00:42:49,189
afterwards if you don't mind , um , but 

1233
00:42:49,189 --> 00:42:51,356
it is an investment that we're worried 

1234
00:42:51,356 --> 00:42:50,540
about and we are very concerned about 

1235
00:42:50,540 --> 00:42:52,860
making sure that the F-35 is the most 

1236
00:42:52,860 --> 00:42:54,971
capable airframe out there . And if I 

1237
00:42:54,971 --> 00:42:56,860
spare parts , are there a billion 

1238
00:42:56,860 --> 00:42:59,082
dollar increases in spare parts ? There 

1239
00:42:59,082 --> 00:43:01,138
is , there's , there's a significant 

1240
00:43:01,138 --> 00:43:03,082
increase in spare parts across the 

1241
00:43:03,082 --> 00:43:05,304
entire department , particularly in the 

1242
00:43:05,304 --> 00:43:07,527
F-35 though . We , we , we think that's 

1243
00:43:07,527 --> 00:43:09,693
been underfunded in the past as a part 

1244
00:43:09,693 --> 00:43:11,804
of the budget . We're increasing F-35 

1245
00:43:11,804 --> 00:43:13,860
spare parts funding to get at the MC 

1246
00:43:13,860 --> 00:43:13,610
rate . We're going to move the MC rate 

1247
00:43:13,610 --> 00:43:16,729
up . One last reconciliation cleanup 

1248
00:43:16,729 --> 00:43:18,896
question , is there a chart that shows 

1249
00:43:18,896 --> 00:43:21,062
all of the , the parties that are in , 

1250
00:43:21,062 --> 00:43:23,285
they're funded by reconciliation versus 

1251
00:43:23,285 --> 00:43:25,451
funded by the base ? Can we get that , 

1252
00:43:25,451 --> 00:43:27,562
or is that part of the slides that we 

1253
00:43:27,562 --> 00:43:29,562
just didn't ? We're going to have a 

1254
00:43:29,562 --> 00:43:29,489
justification book that lays out 

1255
00:43:29,489 --> 00:43:31,711
exactly what's in reconciliation , make 

1256
00:43:31,711 --> 00:43:33,822
it easy for everybody , and it's also 

1257
00:43:33,822 --> 00:43:35,933
broken out in our dash 1s that are on 

1258
00:43:35,933 --> 00:43:35,919
the Copro website . In general terms , 

1259
00:43:35,989 --> 00:43:38,100
you just give it the broad categories 

1260
00:43:38,100 --> 00:43:40,322
that are in the reconciliation versus . 

1261
00:43:40,322 --> 00:43:42,378
Yeah , um , defense industrial-based 

1262
00:43:42,378 --> 00:43:44,489
funding , right , that's a huge chunk 

1263
00:43:44,489 --> 00:43:46,656
of it . Uh , there's a large chunk for 

1264
00:43:46,656 --> 00:43:46,489
munitions . There's a large chunk for 

1265
00:43:46,489 --> 00:43:48,656
AI and data infrastructure , and a lot 

1266
00:43:48,656 --> 00:43:50,767
of the FSRM , which is geared towards 

1267
00:43:50,767 --> 00:43:52,545
remediating failing , uh , poor 

1268
00:43:52,545 --> 00:43:54,822
condition barracks is in there as well . 

1269
00:43:54,822 --> 00:43:56,933
Does it seem , I mean , at least some 

1270
00:43:56,933 --> 00:43:56,409
of them seem like kind of critical 

1271
00:43:56,409 --> 00:43:58,520
priorities , especially like munition 

1272
00:43:58,520 --> 00:44:00,409
stuff , but there's also a lot of 

1273
00:44:00,409 --> 00:44:02,576
question about whether that's actually 

1274
00:44:02,576 --> 00:44:04,742
going to get through Congress . What , 

1275
00:44:04,742 --> 00:44:06,853
what's the alternative plan if it's , 

1276
00:44:06,853 --> 00:44:06,689
if you meet , you know , resistance 

1277
00:44:06,689 --> 00:44:08,856
there . Well , first off , we're gonna 

1278
00:44:08,856 --> 00:44:10,911
do a good job explaining why we need 

1279
00:44:10,911 --> 00:44:13,078
this to Congress and the authorities , 

1280
00:44:13,078 --> 00:44:13,060
and last year they gave us the 

1281
00:44:13,060 --> 00:44:15,171
multi-year authorities for 8 critical 

1282
00:44:15,171 --> 00:44:17,227
munitions , right ? We expect to ask 

1283
00:44:17,227 --> 00:44:19,449
again for the rest of those and receive 

1284
00:44:19,449 --> 00:44:21,171
them , and we continue to have 

1285
00:44:21,171 --> 00:44:20,979
dialogues with our congressional 

1286
00:44:20,979 --> 00:44:23,035
partners about the necessity of this 

1287
00:44:23,035 --> 00:44:25,520
and our approach . Do you have the fit 

1288
00:44:25,520 --> 00:44:27,687
figures for the golden dome ? Oh , can 

1289
00:44:27,687 --> 00:44:29,576
you read them off to us from your 

1290
00:44:29,576 --> 00:44:31,520
charts ? I , I don't have it on my 

1291
00:44:31,520 --> 00:44:31,050
chart right here . Can you get those ? 

1292
00:44:31,129 --> 00:44:33,296
Cause that's pretty significant and we 

1293
00:44:33,296 --> 00:44:35,407
got the one year , but it'd be useful 

1294
00:44:35,407 --> 00:44:37,629
to get it , for the public to know over 

1295
00:44:37,629 --> 00:44:39,685
the next five years , year by year , 

1296
00:44:39,685 --> 00:44:41,740
golden dome expenditures . I believe 

1297
00:44:41,740 --> 00:44:43,851
General Gus put out the total cost of 

1298
00:44:43,851 --> 00:44:45,907
the program to the public . Um , but 

1299
00:44:45,907 --> 00:44:45,530
that's not just the fit up . That goes 

1300
00:44:45,530 --> 00:44:48,250
out to 2035 . I'm asking for the fit up 

1301
00:44:48,250 --> 00:44:50,472
figures . Yeah , we can look at getting 

1302
00:44:50,472 --> 00:44:52,417
you that answer . Thank you . OK , 

1303
00:44:52,417 --> 00:44:54,528
we're going to have to end it there . 

1304
00:44:54,528 --> 00:44:56,583
Uh , thank you very much . I realize 

1305
00:44:56,583 --> 00:44:58,694
there are some of you that still have 

1306
00:44:58,694 --> 00:45:00,750
questions . Uh , please send me your 

1307
00:45:00,750 --> 00:45:02,917
questions . I'll make sure that , uh , 

1308
00:45:02,917 --> 00:45:05,139
those get turned in . Uh , just a quick 

1309
00:45:05,139 --> 00:45:07,250
mention about materials . I mentioned 

1310
00:45:07,250 --> 00:45:09,194
at the beginning of the brief that 

1311
00:45:09,194 --> 00:45:11,306
these slides , uh , will be available 

1312
00:45:11,306 --> 00:45:13,417
on the Comptroller website by the end 

1313
00:45:13,417 --> 00:45:15,750
of the day . And then , uh , the JBooks , 

1314
00:45:15,750 --> 00:45:17,972
as they become available , will also be 

1315
00:45:17,972 --> 00:45:20,889
on the Comptroller website . OK ? Uh , 

1316
00:45:21,209 --> 00:45:23,209
that's all we have time for today . 

1317
00:45:23,290 --> 00:45:25,929
Please stand by , uh , for the Navy's 

1318
00:45:25,929 --> 00:45:28,040
brief , which will be followed by the 

1319
00:45:28,040 --> 00:45:30,120
Air Force budget brief , and , uh , 

1320
00:45:30,129 --> 00:45:33,520
then at 1400 . Uh , the army will brief . 

1321
00:45:33,899 --> 00:45:36,010
Uh , thank you very much , uh , sir , 

1322
00:45:36,459 --> 00:45:38,850
both of you . I think 

1323
00:45:40,550 --> 00:45:42,870
Uh . That was 

1324
00:45:45,129 --> 00:45:46,139
that was yeah , it's OK .