WEBVTT 00:00.209 --> 00:02.431 OK , uh , good morning . My name is Bob 00:02.431 --> 00:05.250 Ditchy with the Pentagon Press Office . 00:05.690 --> 00:07.801 Today's briefing is on the Department 00:07.801 --> 00:11.409 of Defense fiscal year 2027 budget 00:11.409 --> 00:15.229 request . Speaking here today is 00:15.289 --> 00:17.067 the Undersecretary of Defense , 00:17.067 --> 00:19.289 Comptroller , Chief Financial Officer , 00:19.289 --> 00:21.559 uh , Honorable Jules J . Hurst , the 00:21.559 --> 00:23.969 Third , and the Director of the Force 00:23.969 --> 00:26.290 Structure , Resource and assessment 00:26.290 --> 00:28.179 with the Joint Staff , Lieutenant 00:28.179 --> 00:30.569 General Steven P . Whitney . Uh , they 00:30.569 --> 00:33.000 will provide opening remarks , and then 00:33.000 --> 00:36.169 we'll have time for questions . Uh , 00:36.409 --> 00:39.479 attribution is on the record . Uh , 00:39.900 --> 00:42.067 when we get to the question and answer 00:42.067 --> 00:45.380 period , uh , uh , please , when you 00:45.380 --> 00:47.491 ask your question , please state your 00:47.491 --> 00:49.659 name and the outlet that you're with . 00:49.979 --> 00:52.849 Uh , please limit your questions , uh , 00:52.939 --> 00:55.659 to one and one follow-up . Uh , I'll 00:55.659 --> 00:57.992 let you know when we're nearing the end , 00:57.992 --> 01:00.215 uh , with a , uh , two-minute warning . 01:00.569 --> 01:02.736 Uh , following this brief , the Navy , 01:02.736 --> 01:05.050 Air Force , and Army budget directors 01:05.050 --> 01:06.828 will hold their separate , uh , 01:06.828 --> 01:08.889 briefings sequentially here in the 01:08.889 --> 01:11.690 briefing room . With that , it's my 01:11.690 --> 01:13.480 pleasure to introduce to you , 01:13.769 --> 01:15.713 Honorable Jay Hurst and Lieutenant 01:15.713 --> 01:17.936 General Stephen Whitney . Well , thanks 01:17.936 --> 01:19.880 for being here this morning . Uh , 01:19.880 --> 01:22.400 we'll go to the first line . We're 01:22.400 --> 01:24.344 facing one of the most complex and 01:24.344 --> 01:26.400 dangerous threat environments in our 01:26.400 --> 01:28.178 nation's 250 year history . Our 01:28.178 --> 01:30.067 adversaries are rapidly advancing 01:30.067 --> 01:32.178 capabilities across every warfighting 01:32.178 --> 01:34.500 domain in the air , land , sea , space , 01:34.550 --> 01:36.839 and cyberspace . Well , years of 01:36.839 --> 01:38.728 underinvestment have strained our 01:38.728 --> 01:40.989 defense industrial base . To meet this 01:40.989 --> 01:43.156 moment , President Trump is submitting 01:43.156 --> 01:44.989 an FY 27 national defense budget 01:44.989 --> 01:48.279 request of $1.5 trillion . This is a 01:48.330 --> 01:50.441 generational investment in the United 01:50.441 --> 01:52.274 States military , the Arsenal of 01:52.274 --> 01:55.360 freedom . This 42% increase will 01:55.360 --> 01:57.699 supercharge our defense industrial base 01:58.239 --> 02:00.072 by expanding production of major 02:00.072 --> 02:02.072 weapons systems while strengthening 02:02.072 --> 02:04.128 supply chains and supporting tens of 02:04.128 --> 02:06.128 thousands of small and medium sized 02:06.128 --> 02:08.183 businesses . It secures our homeland 02:08.183 --> 02:09.906 and military advantage through 02:09.906 --> 02:12.072 investments in the Golden Dome missile 02:12.072 --> 02:14.239 defense system , drone dominance , and 02:14.239 --> 02:16.295 space superiority , including nearly 02:16.295 --> 02:18.295 doubling the Space Force budget and 02:18.295 --> 02:20.461 tripling spending on drone and counter 02:20.461 --> 02:22.570 drone capabilities . Finally , it 02:22.570 --> 02:24.459 ensures our military readiness by 02:24.459 --> 02:26.626 funding next generation platforms like 02:26.626 --> 02:28.669 the F-47 and B-21 , modernizing our 02:28.669 --> 02:30.889 nuclear deterrent , and delivering our 02:30.889 --> 02:33.000 commitments to our service members by 02:33.000 --> 02:35.056 putting forward the money to provide 02:35.056 --> 02:37.278 them with world class housing . And pay 02:37.278 --> 02:39.167 in line with the quality of their 02:39.167 --> 02:41.333 service . Next slide , please . Here's 02:41.333 --> 02:43.667 how that funding breaks down by service . 02:43.667 --> 02:45.889 The Department of the Army budget grows 02:45.889 --> 02:48.111 by 23.9%. The Department of the Navy by 02:48.111 --> 02:51.210 24.3%. And the Department of the Air 02:51.210 --> 02:54.490 Force by 33.6% , while General 02:54.490 --> 02:56.657 Department of War funding increases by 02:56.657 --> 02:59.679 22.6%. There is also a presidential 02:59.679 --> 03:01.901 priorities category in our budget , and 03:01.901 --> 03:03.901 that includes investments in Golden 03:03.901 --> 03:06.399 Dome , drone dominance , AI and data 03:06.399 --> 03:08.440 infrastructure , and critically the 03:08.440 --> 03:11.389 defense industrial base . Next slide 03:11.389 --> 03:15.309 please . The FY 27 defense budget will 03:15.309 --> 03:17.420 be the largest investment in military 03:17.420 --> 03:20.470 capabilities in over a generation . 52% 03:20.470 --> 03:22.359 of this budget will go to buy and 03:22.359 --> 03:24.470 develop war fighting systems , that's 03:24.470 --> 03:26.748 munitions , planes , tanks , and ships . 03:26.748 --> 03:28.789 In recent years , less than $400 03:28.789 --> 03:30.567 billion has simply gone towards 03:30.567 --> 03:32.845 procurement and research , development , 03:32.845 --> 03:34.789 test and evaluation funding . This 03:34.789 --> 03:37.550 budget allocates over $750 750 billion 03:37.550 --> 03:39.772 dollars , nearly the size of the entire 03:39.772 --> 03:42.190 FAA 22 defense budget , just to 03:42.190 --> 03:44.246 capability development and procuring 03:44.246 --> 03:45.970 weapons systems . This budget 03:45.970 --> 03:48.026 represents the largest investment in 03:48.026 --> 03:50.081 drone warfare and space capabilities 03:50.081 --> 03:52.303 ever , the largest shipbuilding request 03:52.303 --> 03:54.360 since 1962 , and one of the largest 03:54.360 --> 03:56.471 budget requests for the Air Force and 03:56.471 --> 03:58.304 the Army during peacetime in our 03:58.304 --> 04:00.639 nation's history . Like the Reagan era 04:00.639 --> 04:02.695 buildup , this investment will drive 04:02.695 --> 04:04.710 job creation . By conservative 04:04.710 --> 04:06.710 estimates , it could generate over 04:06.710 --> 04:09.270 800,000 American jobs , many in 04:09.270 --> 04:11.690 manufacturing and engineering . Next 04:11.690 --> 04:14.910 slide please . Now , often when you 04:14.910 --> 04:16.799 have a defense budget , there's a 04:16.799 --> 04:18.688 balance between modernization and 04:18.688 --> 04:20.799 readiness . There's a tension there , 04:20.799 --> 04:22.743 but this budget does not have that 04:22.743 --> 04:24.910 tension . We are modernizing the force 04:24.910 --> 04:27.077 while making it more ready than ever . 04:27.077 --> 04:29.132 In building this budget , we reduced 04:29.132 --> 04:28.980 contract advisory services , 04:29.070 --> 04:31.709 unnecessary travel , duplicative 04:31.709 --> 04:33.931 programs , and we redirected that money 04:33.931 --> 04:35.931 towards maintenance , spare parts , 04:35.931 --> 04:37.931 flight hours , steaming hours , and 04:37.931 --> 04:40.153 training . We've also kept our civilian 04:40.153 --> 04:41.987 head count relatively flat while 04:41.987 --> 04:43.765 doubling investment in facility 04:43.765 --> 04:45.320 sustainment , restoration , 04:45.320 --> 04:47.153 modernization , ensuring service 04:47.153 --> 04:49.320 members work and live in safe and high 04:49.320 --> 04:51.269 quality conditions . This budget 04:51.269 --> 04:53.570 request was specifically formulated to 04:53.570 --> 04:55.681 remediate all barracks and government 04:55.681 --> 04:57.681 owned buildings and housing that is 04:57.681 --> 04:59.570 substandard . We will also make a 04:59.570 --> 05:01.514 significant investment remediating 05:01.514 --> 05:01.359 facilities across the department's 05:01.359 --> 05:03.526 inventory that do not meet our quality 05:03.526 --> 05:06.760 standards . Next slide please . As we 05:06.760 --> 05:08.704 drastically increase the number of 05:08.704 --> 05:10.871 munitions and weapons systems we buy , 05:10.871 --> 05:12.482 the department needs to make 05:12.482 --> 05:14.371 investments to solidify America's 05:14.371 --> 05:16.482 industrial base . Large defense firms 05:16.482 --> 05:18.704 are critical to our national security , 05:18.704 --> 05:20.816 but they rely on tens of thousands of 05:20.816 --> 05:22.871 small and medium sized businesses to 05:22.871 --> 05:24.927 provide the parts , components , and 05:24.927 --> 05:27.260 materials to larger firms . For example , 05:27.260 --> 05:30.100 the F-35 program alone has over 2100 05:30.100 --> 05:32.322 suppliers , and more than half of these 05:32.322 --> 05:34.820 are American small businesses . This 05:34.820 --> 05:37.100 budget invests over $100 billion to 05:37.100 --> 05:38.989 strengthen that ecosystem through 05:38.989 --> 05:40.933 Defense Production Act funds , the 05:40.933 --> 05:42.989 Office of Strategic Capital , and by 05:42.989 --> 05:45.044 increasing industrial-based analysis 05:45.044 --> 05:47.211 and statement funding to unprecedented 05:47.211 --> 05:49.211 levels . This money will be used to 05:49.211 --> 05:51.156 provide low interest credit , loan 05:51.156 --> 05:52.933 guarantees , and to make direct 05:52.933 --> 05:55.267 purchases to expand production capacity , 05:55.267 --> 05:57.489 e-supply chain bottlenecks , and unlock 05:57.489 --> 05:59.656 private sector investment . We're also 05:59.656 --> 06:01.822 expanding multi-year contracts up to 7 06:01.822 --> 06:04.044 years for critical munitions to provide 06:04.044 --> 06:06.044 stability and incentivize long-term 06:06.044 --> 06:08.399 investment across the supply chain . By 06:08.399 --> 06:10.455 doing this , remove all excuses from 06:10.455 --> 06:12.288 defense companies from investing 06:12.288 --> 06:14.121 capital to improve improve their 06:14.121 --> 06:16.288 production facilities and of investing 06:16.288 --> 06:18.343 in their workforces . This will also 06:18.343 --> 06:20.121 give the small and medium sized 06:20.121 --> 06:22.343 businesses who supply larger firms with 06:22.343 --> 06:22.119 the surety they need to thrive and 06:22.119 --> 06:24.489 expand production . When the Department 06:24.489 --> 06:26.656 of War oscillates between buying large 06:26.656 --> 06:28.822 numbers and small numbers of a weapons 06:28.822 --> 06:30.878 system , large defense companies can 06:30.878 --> 06:32.878 tolerate that fluctuation , but the 06:32.878 --> 06:34.600 small and medium sized defense 06:34.600 --> 06:36.545 suppliers who aid them cannot . In 06:36.545 --> 06:38.489 every instance where we know we're 06:38.489 --> 06:40.600 gonna continue to buy a system over a 06:40.600 --> 06:42.767 prolonged period of time , we're gonna 06:42.767 --> 06:42.369 request multi-year authorities from 06:42.369 --> 06:44.640 Congress . Additionally , initiatives 06:44.640 --> 06:46.696 like business operators for national 06:46.696 --> 06:48.696 defense are bringing private sector 06:48.696 --> 06:50.529 expertise into the department to 06:50.529 --> 06:52.640 improve efficiency and execution . In 06:52.640 --> 06:54.807 this initiative we've recruited former 06:54.807 --> 06:57.029 private sector executives . We set them 06:57.029 --> 06:56.809 to work across the department and with 06:56.809 --> 06:59.010 our defense contractors to change how 06:59.010 --> 07:01.066 we contract for goods and services , 07:01.066 --> 07:03.121 but also to change how we buy things 07:03.121 --> 07:05.288 and build things . This is all part of 07:05.288 --> 07:07.399 an effort to move the department from 07:07.399 --> 07:09.399 bureaucracy to a business mindset . 07:09.399 --> 07:12.859 Next slide please . During the last 07:12.859 --> 07:14.803 administration we had a recruiting 07:14.803 --> 07:17.026 crisis that required the joint force to 07:17.026 --> 07:19.137 reduce its end strength by 2.6%. This 07:19.137 --> 07:21.192 meant hollow units . It meant longer 07:21.192 --> 07:23.026 hours for our warfighters , more 07:23.026 --> 07:25.192 frequent deployments , and more stress 07:25.192 --> 07:27.303 on the force . In FY 26 reversed that 07:27.303 --> 07:29.637 decline by adding over 20,000 personnel . 07:29.637 --> 07:31.748 In FY 27 , we'll grow the force again 07:31.748 --> 07:34.081 by an additional 44,000 service members . 07:34.190 --> 07:36.301 This growth will provide the manpower 07:36.301 --> 07:38.523 needed to employ new capabilities . And 07:38.523 --> 07:40.634 it will improve readiness and quality 07:40.634 --> 07:42.801 of life by ensuring units are properly 07:42.801 --> 07:42.429 staffed for the missions we task them 07:42.429 --> 07:44.910 with . Next slide please . 07:46.309 --> 07:48.087 Now following President Trump's 07:48.087 --> 07:50.142 inauguration , the Department of War 07:50.142 --> 07:52.142 and Department of Homeland Security 07:52.142 --> 07:54.198 quickly moved to secure our southern 07:54.198 --> 07:56.309 border . Monthly encounters along the 07:56.309 --> 07:58.420 border dropped from nearly 100,000 in 07:58.420 --> 08:00.476 December to fewer than 10,000 by the 08:00.476 --> 08:02.390 end of January . The FY 27 budget 08:02.390 --> 08:05.220 allocates $2.3 billion to sustain 08:05.220 --> 08:07.220 operational control of the southern 08:07.220 --> 08:09.220 border and to defend our homeland . 08:09.220 --> 08:11.164 Illegal immigration is effectively 08:11.164 --> 08:13.387 ended along the US border with Mexico , 08:13.387 --> 08:15.276 and this budget supports that new 08:15.276 --> 08:18.649 status quo . Next slide please . We 08:18.649 --> 08:20.482 will also defend the homeland by 08:20.482 --> 08:22.538 continuing to build America's Golden 08:22.538 --> 08:24.871 Dome and next generation missile shield . 08:24.871 --> 08:26.871 In FY 26 , we began building Golden 08:26.871 --> 08:28.705 Dome by focusing on creating the 08:28.705 --> 08:30.705 infrastructure to build situational 08:30.705 --> 08:33.099 awareness and sense threats . In FY 27 , 08:33.140 --> 08:35.362 we will expand that sensing network and 08:35.362 --> 08:37.640 invest in next generation interceptors . 08:37.669 --> 08:39.613 This investment in the security of 08:39.613 --> 08:41.669 America and Americans is an absolute 08:41.669 --> 08:43.780 game changer . And it's peace through 08:43.780 --> 08:47.599 strength and action . Next slide . As 08:47.599 --> 08:49.655 we defend the homeland from advanced 08:49.655 --> 08:51.821 missile threats , we're also investing 08:51.821 --> 08:53.988 in the revolution autonomous systems . 08:53.988 --> 08:56.155 Drone warfare is rapidly reshaping the 08:56.155 --> 08:58.377 modern battlefield , and this budget is 08:58.377 --> 09:00.599 the largest investment in drone warfare 09:00.599 --> 09:02.543 and counter drone technology in US 09:02.543 --> 09:04.619 history . We're requesting $53.6 09:04.619 --> 09:06.897 billion for autonomy , drone platforms , 09:06.897 --> 09:08.952 and contested logistics , along with 09:08.952 --> 09:11.059 $21 billion for munitions , counter 09:11.059 --> 09:12.948 drone technologies , and advanced 09:12.948 --> 09:15.059 systems like the collaborative combat 09:15.059 --> 09:17.179 aircraft , the MQ-25 . Manned on man 09:17.179 --> 09:19.290 teaming is the future of combat , and 09:19.290 --> 09:21.640 this budget makes it a reality . I'd 09:21.640 --> 09:23.862 like to introduce my colleague from the 09:23.862 --> 09:26.029 Joint Staff , General Whitney , who'll 09:26.029 --> 09:25.640 take you through the rest of the 09:25.640 --> 09:27.807 briefing starting with space and cyber 09:27.807 --> 09:31.239 capabilities . OK , next slide . Thank 09:31.239 --> 09:33.350 you Mr . Hurst . I'd like to continue 09:33.350 --> 09:35.517 the discussion with several additional 09:35.517 --> 09:37.739 capability areas . We FY 27 president's 09:37.739 --> 09:39.683 budget request investments and and 09:39.683 --> 09:41.739 their impact on the joint force . As 09:41.739 --> 09:41.440 mentioned , I'll start with two focal 09:41.440 --> 09:43.662 points for strategic competition in the 09:43.662 --> 09:45.718 21st century technological dominance 09:45.718 --> 09:48.080 space and cyber . This budget requests 09:48.080 --> 09:50.400 over $75 billion to ensure American 09:50.400 --> 09:53.559 space superiority . This includes 31 09:53.840 --> 09:57.099 space launches , $13 billion to develop 09:57.200 --> 09:59.367 and field missile warning and tracking 09:59.367 --> 10:01.520 capabilities , two GPS satellites and 10:01.520 --> 10:04.760 their supporting infrastructure . $5.9 10:04.760 --> 10:06.760 billion for satellite communication 10:06.760 --> 10:09.840 systems , $7.7 billion for airborne 10:09.840 --> 10:12.419 moving target indication capabilities , 10:12.880 --> 10:14.936 and a $3.1 billion investment in our 10:14.936 --> 10:17.989 next generation space data network . In 10:17.989 --> 10:20.289 the cyber domain , the FY 27 budget 10:20.520 --> 10:22.187 requests over $20 billion for 10:22.187 --> 10:24.020 capabilities to defend , federal 10:24.020 --> 10:26.076 systems , critical infrastructures , 10:26.076 --> 10:28.320 and supply chains across all domains . 10:29.210 --> 10:31.321 Denying adversary freedom of maneuver 10:31.321 --> 10:33.543 in and through cyberspace while forging 10:33.543 --> 10:35.543 a cyber force capable of delivering 10:35.543 --> 10:38.159 greater lethality . This budget request 10:38.159 --> 10:40.103 is committed to securing America's 10:40.103 --> 10:42.159 vital national security and economic 10:42.159 --> 10:44.320 interests in from and to space while 10:44.320 --> 10:46.376 prioritizing cyber capabilities as a 10:46.376 --> 10:48.598 crucial component of national defense . 10:48.840 --> 10:51.369 Next slide , please . Turning to the 10:51.369 --> 10:54.169 nuclear enterprise , America's nuclear 10:54.169 --> 10:56.391 capabilities are the bedrock upon which 10:56.391 --> 10:58.280 all other elements of our defense 10:58.280 --> 11:00.549 strategy rest . Our current nuclear 11:00.549 --> 11:02.659 enterprise remains safe , secure , 11:02.869 --> 11:05.780 credible , and ready . This budget 11:05.780 --> 11:07.613 request continues a generational 11:07.613 --> 11:09.724 modernization effort across all three 11:09.724 --> 11:11.502 legs of the triad to ensure the 11:11.502 --> 11:13.669 continued effectiveness of our nuclear 11:13.669 --> 11:15.891 deterrent . This includes , as shown on 11:15.891 --> 11:17.780 the slide , $16.2 billion for the 11:17.780 --> 11:19.809 Columbia class submarine program , 11:20.270 --> 11:22.437 which includes funding one new hull in 11:22.437 --> 11:24.103 its entirety , completing the 11:24.103 --> 11:25.937 incremental funding for the hull 11:25.937 --> 11:27.830 started in FY 26 , and providing 11:27.830 --> 11:29.886 advanced procurement funds for eight 11:29.886 --> 11:31.659 additional hulls . Along with 11:31.659 --> 11:33.715 investments in the B-21 bomber , the 11:33.715 --> 11:35.770 Sentinel ICBM program , and the long 11:35.770 --> 11:39.070 range standoff weapon or LRSO . In 11:39.070 --> 11:41.126 addition to these investments in our 11:41.126 --> 11:42.848 nuclear deterrence weapons and 11:42.848 --> 11:44.959 platforms , the request also includes 11:44.959 --> 11:47.181 $20.2 billion of investments in nuclear 11:47.181 --> 11:49.459 command , control , and communications , 11:49.459 --> 11:51.570 or NC3 architecture , ensuring timely 11:51.570 --> 11:53.880 strategic missile warning reporting and 11:53.880 --> 11:55.880 strengthening presidential decision 11:55.880 --> 11:58.213 making in command of our nuclear forces . 11:58.213 --> 12:01.190 Next slide please . In the maritime 12:01.190 --> 12:02.968 domain , this budget requests a 12:02.968 --> 12:05.750 consistent , strong demand signal to 12:05.750 --> 12:08.469 industry to expand production . It 12:08.469 --> 12:11.349 includes over $65 billion for 18 battle 12:11.349 --> 12:14.030 force ships and 16 support ships as 12:14.030 --> 12:16.252 part of the Golden Fleet Initiative and 12:16.252 --> 12:18.308 our continued commitment to maritime 12:18.308 --> 12:22.000 dominance . It also requests $427 12:22.000 --> 12:24.111 million for 3 medium unmanned surface 12:24.111 --> 12:26.409 vehicles , along with the testing and 12:26.409 --> 12:28.631 development of their associated payload 12:28.631 --> 12:31.929 systems . It also includes an $8.7 12:31.929 --> 12:33.873 billion investment in the maritime 12:33.873 --> 12:35.485 industrial base and shipyard 12:35.485 --> 12:37.707 infrastructure . These investments span 12:37.707 --> 12:39.929 seven tier one private shipyards , four 12:39.929 --> 12:42.359 public shipyards , multiple tier two 12:42.359 --> 12:44.960 private shipyards , and includes funds 12:44.960 --> 12:47.789 to study 1/5 public shipyard . The 12:47.789 --> 12:49.900 maritime industrial based investments 12:49.900 --> 12:51.956 can be broken down further through a 12:51.956 --> 12:51.750 different perspective shown on the 12:51.750 --> 12:53.830 right of the slide in areas of the 12:53.830 --> 12:56.590 submarine industrial base or SSIB , the 12:56.590 --> 12:58.650 Shipyard Infrastructure Optimization 12:58.650 --> 13:01.770 Program or SIOP . The broader ships 13:01.770 --> 13:04.479 shipbuilding industrial base or SIB and 13:04.479 --> 13:06.969 the nuclear enterprise . Altogether 13:06.969 --> 13:09.130 this budget request demonstrates a 13:09.130 --> 13:11.074 strong sustained investment in our 13:11.074 --> 13:13.309 shipbuilding industry . Allowing the 13:13.309 --> 13:15.031 navy to build , maintain , and 13:15.031 --> 13:17.229 modernize a dominant , ready fleet . 13:17.590 --> 13:21.570 Next slide , please . Shifting 13:21.570 --> 13:23.459 to land power , the department is 13:23.459 --> 13:25.570 committed to the modernization of our 13:25.570 --> 13:27.737 ground forces to ensure our ability to 13:27.737 --> 13:29.959 dominate against our evolving threats . 13:29.959 --> 13:32.510 This request . It includes 13:32.510 --> 13:34.732 approximately $65 billion split between 13:34.732 --> 13:36.954 the elements of the Army and the Marine 13:36.954 --> 13:39.177 Corps to procure new assets focusing on 13:39.177 --> 13:40.954 missiles , armed vehicles , and 13:40.954 --> 13:42.677 helicopters . Honorable Hearst 13:42.677 --> 13:44.788 mentioned the investment in munitions 13:44.788 --> 13:47.010 earlier in the presentation . One piece 13:47.010 --> 13:49.232 of this investment is $31.8 billion for 13:49.232 --> 13:51.288 critical land-based missiles with an 13:51.288 --> 13:53.399 increased procurement in FY 26 of the 13:53.399 --> 13:55.454 Patriot , the Terminal High Altitude 13:55.454 --> 13:57.232 Area Defense or THAAD program , 13:57.580 --> 13:59.358 precision strike missiles , and 13:59.358 --> 14:02.130 mid-range capability weapons . Those 14:02.130 --> 14:04.250 increases from FY 26 to this request 14:04.250 --> 14:06.583 are displayed on the right of the slide . 14:06.849 --> 14:08.682 On armored vehicles , the budget 14:08.682 --> 14:10.849 request is $3.2 billion in funds to 14:10.849 --> 14:13.520 modernize armored brigade combat teams 14:13.520 --> 14:15.510 with the procurement of armored 14:15.609 --> 14:18.530 multi-purpose vehicles or AMPVs , the 14:18.530 --> 14:21.130 development of the XM30 infantry combat 14:21.130 --> 14:22.686 vehicle , and lethality and 14:22.686 --> 14:24.852 survivability upgrades of the Abrahams 14:24.852 --> 14:27.479 tanks . The budget also requests $2.2 14:27.479 --> 14:29.535 billion in funding for advanced next 14:29.535 --> 14:31.909 generation tilt rotorcraft in the MV 75 , 14:32.210 --> 14:33.932 also known as the Cheyenne 2 . 14:34.590 --> 14:36.760 Specifically seeking efforts in 14:36.760 --> 14:38.927 prototyping , testing , and production 14:38.927 --> 14:40.927 planning . These target investments 14:40.927 --> 14:43.149 allow for modernization across both the 14:43.149 --> 14:45.316 Army and the Marine Corps . In the air 14:45.316 --> 14:47.538 switching next slide , switching to air 14:47.538 --> 14:50.250 power . A request of $102 billion is 14:50.250 --> 14:52.361 included for aircraft procurement and 14:52.361 --> 14:54.583 research and development , representing 14:54.583 --> 14:56.806 a 26% increase over last year . It also 14:56.806 --> 14:58.639 maximizes readiness and aircraft 14:58.639 --> 15:00.806 availability by increasing sustainment 15:00.806 --> 15:02.583 and spares fundings across most 15:02.583 --> 15:04.750 platforms , producing the capabilities 15:04.750 --> 15:06.972 our warfighters need to fight and win . 15:06.972 --> 15:09.139 Some key highlights include , as shown 15:09.139 --> 15:09.090 on the slide , ramping up the 15:09.090 --> 15:11.210 procurement of the F-35 fighter 15:11.210 --> 15:13.989 aircraft to 85 for the United States , 15:14.609 --> 15:17.590 expanding the F-15EX fighter production 15:17.590 --> 15:20.309 to 24 . Continuing the development of 15:20.309 --> 15:22.420 sixth generation fighter systems like 15:22.420 --> 15:26.380 the F-47 and the FAAXX . And increasing 15:26.380 --> 15:29.059 the procurement rate of the KC-46 15:29.489 --> 15:31.211 across the fight up while also 15:31.211 --> 15:32.933 providing critical funding for 15:32.933 --> 15:35.156 modification , spares , and reliability 15:35.156 --> 15:37.378 improvements to increase the aircraft's 15:37.378 --> 15:40.510 availability . This res request . An 15:40.510 --> 15:42.399 expanded capacity should serve to 15:42.399 --> 15:44.232 maximize readiness , bolting our 15:44.232 --> 15:46.454 ability to achieve air superiority in a 15:46.454 --> 15:49.640 conflict . Next slide . Shifting from 15:49.640 --> 15:51.751 capability development to ensuring we 15:51.751 --> 15:53.862 have a ready force , Honorable Hearst 15:53.862 --> 15:56.084 mentioned this budget makes a focused , 15:56.084 --> 15:58.084 deliberate investment to ensure our 15:58.084 --> 15:59.807 joint force can respond to any 15:59.807 --> 16:02.000 strategic challenge . Up nearly 20% 16:02.000 --> 16:04.119 from FY 26 , this budget request 16:04.119 --> 16:06.989 includes over $190 billion for core 16:06.989 --> 16:09.710 readiness and enablers . These 16:09.710 --> 16:11.766 investments cover a broad variety of 16:11.766 --> 16:13.988 joint force activities . A few examples 16:13.988 --> 16:16.266 are aviation training and flying hours , 16:16.266 --> 16:19.500 large scale force exercises , steaming 16:19.500 --> 16:21.830 hours , equipment , and maintenance 16:21.830 --> 16:23.849 readiness , including spare parts . 16:24.679 --> 16:26.679 These investments will stand at the 16:26.679 --> 16:29.409 foundation of a credible . Capable and 16:29.409 --> 16:30.965 rapid integrated response , 16:31.450 --> 16:33.617 consequently deferring our adversaries 16:33.617 --> 16:35.672 will sustaining effect of operations 16:35.672 --> 16:38.780 over time . This deliberate focused 16:38.780 --> 16:40.336 effort to improve the joint 16:40.336 --> 16:44.219 forces logistics and adaptation . It's 16:44.219 --> 16:47.020 OK . We love each other . Gemini says 16:47.020 --> 16:49.187 you're right . Gemini says I'm right . 16:49.187 --> 16:51.520 Excellent . I got something right today . 16:51.520 --> 16:53.576 That's a , that's a , that's a great 16:53.576 --> 16:55.853 statement . Thanks , Tony . Uh , again , 16:55.853 --> 16:58.076 this is a deliberate and focused effort 16:58.076 --> 17:00.242 to improve the joint force down to the 17:00.242 --> 17:02.464 individual service member . Speaking of 17:02.464 --> 17:01.539 service members on the next slide , I'd 17:01.539 --> 17:03.761 like to talk a little bit about the pay 17:03.761 --> 17:06.095 raise that this budget request includes . 17:06.095 --> 17:08.150 This budget request includes a pay , 17:08.150 --> 17:10.372 pay raise weighted towards our greatest 17:10.372 --> 17:12.483 military advantage , our professional 17:12.483 --> 17:14.539 enlisted corps . Specifically , this 17:14.539 --> 17:16.483 request includes a 7% increase for 17:16.483 --> 17:18.650 military personnel in the grades of E5 17:18.650 --> 17:21.119 and below . A 6% increase for personnel 17:21.119 --> 17:24.688 in the grades of E6 to 03 , and a 5% 17:24.688 --> 17:26.910 increase for members in the grade of 04 17:26.910 --> 17:29.959 and above . With this funding request , 17:30.040 --> 17:31.984 we directly invest in our people , 17:32.000 --> 17:33.722 recognizing and respecting our 17:33.722 --> 17:35.889 warfighters , their families , and the 17:35.889 --> 17:38.111 daily sacrifices they both make for our 17:38.111 --> 17:41.329 nation . Next slide . Let me move on to 17:41.329 --> 17:43.218 another critical topic uh for our 17:43.218 --> 17:45.329 warfighters readiness , health care . 17:45.839 --> 17:47.890 The military health system provides 17:47.890 --> 17:50.290 services to approximately 9.5 million 17:50.290 --> 17:52.530 beneficiaries , uniformed service 17:52.530 --> 17:54.752 members , military retirees , and their 17:54.752 --> 17:56.959 families . This budget proposes a 17:56.959 --> 17:59.292 structural change in how the department . 17:59.699 --> 18:01.921 Holds its health care funding replacing 18:01.921 --> 18:03.921 the defense health program with two 18:03.921 --> 18:06.255 distinct accounts . The first is combat , 18:06.810 --> 18:08.977 operational and medical readiness , or 18:08.977 --> 18:12.000 comp . It is designed to protect and 18:12.000 --> 18:13.889 prioritize the critical resources 18:13.889 --> 18:15.944 needed to sustain war fighter health 18:15.944 --> 18:19.180 and medical readiness . The second 18:19.180 --> 18:21.013 account is a private sector care 18:21.013 --> 18:24.619 program or PSCP . It is designed to 18:24.619 --> 18:26.675 cover all the beneficiary healthcare 18:26.675 --> 18:28.952 provided through the TriCare contracts . 18:29.329 --> 18:31.385 By splitting out the cost of private 18:31.385 --> 18:33.551 sector care into its own account , the 18:33.551 --> 18:35.607 department is enhancing transparency 18:35.607 --> 18:37.718 and accountability , making it easier 18:37.718 --> 18:39.718 to track how resources are balanced 18:39.718 --> 18:41.885 between military medical platforms and 18:41.885 --> 18:43.996 the care from our civilian partners . 18:43.996 --> 18:45.996 Together , these two accounts total 18:45.996 --> 18:48.290 $45.7 billion in this request to 18:48.290 --> 18:50.234 deliver the healthcare our service 18:50.234 --> 18:52.346 members and their family needs . This 18:52.346 --> 18:54.401 is up 5% over last year's funding in 18:54.401 --> 18:56.346 the defense health program . These 18:56.346 --> 18:58.290 changes are designed to ensure the 18:58.290 --> 19:00.179 department can deliver the needed 19:00.179 --> 19:02.346 medical readiness , a key component of 19:02.346 --> 19:04.457 a ready joint force , and effectively 19:04.457 --> 19:04.430 and efficiently caring for their 19:04.430 --> 19:08.319 families . Next slide . Similarly , 19:08.400 --> 19:10.760 this budget request supports our joint 19:10.760 --> 19:12.927 force by investing in our facilities . 19:12.939 --> 19:14.772 Honorable Hearst mentioned we're 19:14.772 --> 19:16.550 addressing the poor and failing 19:16.550 --> 19:18.828 structures in our facilities and bases . 19:18.828 --> 19:21.050 This is part of a requested $57 billion 19:21.050 --> 19:23.106 investment in facility sustainment , 19:23.106 --> 19:25.106 restoration , and modernization . A 19:25.106 --> 19:27.217 major portion of this commitment , as 19:27.217 --> 19:29.439 was mentioned earlier , is ensuring our 19:29.439 --> 19:29.099 service members have clean , 19:29.280 --> 19:32.010 comfortable , and safe housing . We're 19:32.010 --> 19:33.843 specifically requesting funds to 19:33.843 --> 19:35.899 address what the barracks task force 19:35.899 --> 19:38.121 has called , has identified as critical 19:38.121 --> 19:40.510 updates . The investments in this 19:40.510 --> 19:42.989 budget will fix all substandard 19:42.989 --> 19:45.045 barracks and eliminate barracks that 19:45.045 --> 19:46.989 have been deemed poor or failing . 19:48.020 --> 19:50.076 There is an additional investment to 19:50.076 --> 19:52.187 improve family housing , with a major 19:52.187 --> 19:54.353 portion of this investment targeted at 19:54.353 --> 19:56.687 our government owned housing facilities . 19:56.687 --> 19:58.631 Our joint force and their families 19:58.631 --> 20:00.464 deserve quality housing . We are 20:00.464 --> 20:02.631 committed to ensuring they have access 20:02.631 --> 20:04.409 to safe , well maintained , and 20:04.409 --> 20:06.076 dignified living quarters and 20:06.076 --> 20:08.353 ultimately an improved quality of life . 20:08.353 --> 20:12.020 Next slide . In closing , this this FY 20:12.020 --> 20:14.250 27 president's budget reflects a clear 20:14.250 --> 20:16.900 assessment of the threats we face and a 20:16.900 --> 20:19.500 determined commitment to ensuring our 20:19.500 --> 20:21.300 joint force is properly armed , 20:21.660 --> 20:23.716 globally integrated , and ready when 20:23.716 --> 20:25.882 our nation's calls . It invests in the 20:25.882 --> 20:28.049 capabilities required , the industrial 20:28.049 --> 20:29.771 base to produce them , and the 20:29.771 --> 20:31.993 readiness of our warfighters to utilize 20:31.993 --> 20:34.104 them effectively . Thank you for your 20:34.104 --> 20:35.993 time today and your commitment to 20:35.993 --> 20:38.104 covering our department and our joint 20:38.104 --> 20:40.160 force . We'd be honored to take your 20:40.160 --> 20:42.271 questions . OK , I'm going to call on 20:42.271 --> 20:44.327 both sides of the room , and we also 20:44.327 --> 20:46.382 have , uh , a couple of questions on 20:46.382 --> 20:48.604 the phone . I'm gonna start over here . 20:48.604 --> 20:50.827 Haley . Thank you . Uh , Hayley Brits , 20:50.827 --> 20:50.790 CNN , thank you both so much for doing 20:50.790 --> 20:52.846 this . Um , I'm wondering if you can 20:52.846 --> 20:56.650 get into , um , any , or talk about any , 20:56.819 --> 20:58.708 uh , requests that would come for 20:58.708 --> 21:00.319 repairing , um , some of the 21:00.319 --> 21:02.375 installation of the bases for in the 21:02.375 --> 21:04.486 Middle East , um , if that would be a 21:04.486 --> 21:06.652 separate supplemental for construction 21:06.652 --> 21:08.930 or how that would fit into the request . 21:08.930 --> 21:11.097 Yeah , so it's not reflected in the 27 21:11.097 --> 21:13.208 requests , and part of it is we would 21:13.208 --> 21:12.800 assess what our posture should be in 21:12.800 --> 21:14.856 the Middle East , right ? We have to 21:14.856 --> 21:17.078 make sure we understand what we want to 21:17.078 --> 21:19.022 construct in the future . We might 21:19.022 --> 21:18.829 change how we build bases in the Middle 21:18.829 --> 21:21.000 East based on this conflict , and so 21:21.000 --> 21:23.111 that's on the FY 27 budget . It'll be 21:23.111 --> 21:25.810 part of a future request . And then on 21:25.810 --> 21:28.380 the drone dominance and counter UAS 21:28.380 --> 21:30.436 technologies , can you just get into 21:30.436 --> 21:32.650 more , I guess , uh , specifics on how 21:32.650 --> 21:34.872 much of that is investing in industrial 21:34.872 --> 21:37.039 base to create those versus buying the 21:37.039 --> 21:39.630 some existing systems that $70 billion 21:39.630 --> 21:41.852 is all going into . To existing systems 21:41.852 --> 21:44.074 and technologies , the , the industrial 21:44.074 --> 21:46.074 base support is entirely separate . 21:46.074 --> 21:48.241 Obviously when you buy vast quantities 21:48.241 --> 21:50.074 of something , you stimulate the 21:50.074 --> 21:52.297 industrial base , but that is a focused 21:52.297 --> 21:54.463 effort on actually fielding technology 21:54.463 --> 21:56.574 and applying existing technology in a 21:56.574 --> 21:56.344 way that's useful to the warfighter . 21:57.214 --> 21:59.436 And if I could , I'd also add , Haley , 21:59.436 --> 22:01.603 that it's critical that we innovate as 22:01.603 --> 22:03.492 we , we look at the drones in our 22:03.492 --> 22:05.492 counter UAS efforts . The evolution 22:05.492 --> 22:07.714 that we've seen in the battlefield is , 22:07.714 --> 22:10.047 is this evolution in technology is in a , 22:10.047 --> 22:11.992 in a time frame of weeks , not the 22:11.992 --> 22:11.959 typical years that we see with our , 22:11.969 --> 22:14.191 our defense production . So it's really 22:14.191 --> 22:16.358 critical that we work with industry to 22:16.358 --> 22:18.302 get that capability fielded . Tony 22:18.302 --> 22:20.302 Bertua , thank you , Tony Bertuca , 22:20.302 --> 22:22.469 Inside Defense . So the , the budget , 22:22.469 --> 22:24.270 uh , for discretionary is $1.15 22:24.270 --> 22:26.680 trillion with another $350 billion 22:26.680 --> 22:28.569 requested in mandatory spending . 22:28.569 --> 22:31.390 Obviously that needs the 100% buy-in of 22:31.390 --> 22:33.390 Congress and that's their challenge 22:33.390 --> 22:35.689 across the river . But my question is , 22:35.869 --> 22:37.750 if you do not get that mandatory 22:37.750 --> 22:39.917 spending , is the discretionary amount 22:40.030 --> 22:42.086 sufficient to carry out the national 22:42.086 --> 22:44.349 defense strategy if Congress can't get 22:44.349 --> 22:46.930 to that reconciliation bill ? We 22:46.930 --> 22:49.152 wouldn't ask for the money if we didn't 22:49.152 --> 22:51.319 want it , uh , so we'll go back to the 22:51.319 --> 22:53.097 White House and we'll work with 22:53.097 --> 22:52.949 Congress to come up with a new strategy 22:53.410 --> 22:55.577 if the White House and Congress decide 22:55.577 --> 22:57.910 reconciliation is not the right vehicle . 22:57.910 --> 22:57.729 And then for General Whitney , uh , 22:57.849 --> 23:00.016 obviously everything , you know , it's 23:00.016 --> 23:02.182 a historic budget , but there's always 23:02.182 --> 23:04.127 a cut line . What kind of unfunded 23:04.127 --> 23:06.349 priorities should we expect to come out 23:06.349 --> 23:08.571 of the services now since this has been 23:08.571 --> 23:08.329 requested ? I , I think , uh , this has 23:08.329 --> 23:10.329 been a generational investment , as 23:10.329 --> 23:12.551 Honorable Hurst has said . I think what 23:12.551 --> 23:14.496 you're gonna see coming out of the 23:14.496 --> 23:14.250 services and a , and out of the 23:14.250 --> 23:16.361 combatant commands is a very balanced 23:16.361 --> 23:17.917 approach . Recognizing this 23:17.917 --> 23:19.917 generational investment , thank you 23:19.917 --> 23:22.310 very much . Thank you , um , Tara cop 23:22.310 --> 23:24.532 of the Washington Post . Um , one quick 23:24.532 --> 23:27.339 cleanup on the , so does the total , um , 23:27.550 --> 23:29.772 of the , I , I added up all the big pie 23:29.772 --> 23:31.939 chart , and it's about 1.5 . That does 23:31.939 --> 23:34.161 include the reconciliation request . Is 23:34.161 --> 23:36.328 that correct ? That's right . OK . And 23:36.328 --> 23:38.439 then , um , on the , uh , procurement 23:38.439 --> 23:40.661 of like the PAC 3s and the THAADs , you 23:40.661 --> 23:42.883 see the number , and it's like that's a 23:42.883 --> 23:44.939 huge number of munitions that you're 23:44.939 --> 23:46.994 seeking . What's the timeline you're 23:46.994 --> 23:49.217 looking at to get to that level of , of 23:49.217 --> 23:51.430 buy ? Is that like over 5 years over 23:51.699 --> 23:53.810 because I think it was like 1,000+ of 23:53.810 --> 23:56.032 those munitions . It's a massive ramp , 23:56.032 --> 23:58.032 but that's part of the department's 23:58.032 --> 24:00.143 strategy . We're going to give them a 24:00.143 --> 23:59.900 massive order . We're going to sustain 23:59.900 --> 24:02.219 it over time and then we're gonna have 24:02.219 --> 24:04.108 industry put forward the money to 24:04.108 --> 24:06.219 actually invest in their facilities , 24:06.219 --> 24:05.739 which is different than how we've done 24:05.739 --> 24:07.739 business in the past because before 24:07.739 --> 24:09.850 we've done , as we said , we want you 24:09.850 --> 24:11.961 to increase production and then we've 24:11.961 --> 24:11.910 gotten paid for it . Industry has 24:11.910 --> 24:13.966 marginally increased production that 24:13.966 --> 24:16.188 way . We're making them put skin in the 24:16.188 --> 24:16.150 game . We're giving them a multi-year 24:16.150 --> 24:18.317 order , and we expect them to meet the 24:18.317 --> 24:20.539 ramp rates that they agreed to . And if 24:20.539 --> 24:22.706 they don't , there'll be penalties for 24:22.706 --> 24:21.589 them . OK , so it doesn't have a 24:21.589 --> 24:23.756 specific timeline yet , but it has a , 24:23.756 --> 24:26.033 you'll be expecting ramp rates . There , 24:26.033 --> 24:28.033 there are agreed upon timelines for 24:28.033 --> 24:29.867 each agreement with every single 24:29.867 --> 24:31.922 defense contractor who's involved in 24:31.922 --> 24:34.033 these multi-year procurements . Thank 24:34.033 --> 24:35.922 you . Constantine , thanks , uh , 24:35.922 --> 24:38.145 Konstantine Turpin , Associated Press . 24:38.145 --> 24:40.089 Um , Obviously this budget request 24:40.089 --> 24:42.311 comes on the heels of a major operation 24:42.311 --> 24:44.478 in Venezuela , an ongoing operation in 24:44.478 --> 24:46.533 Iran , um , which , uh , I mean , as 24:46.533 --> 24:48.756 Haley asked , has damaged bases . We've 24:48.756 --> 24:50.922 got an aircraft carrier that sustained 24:50.922 --> 24:53.145 a major fire , so . I guess my question 24:53.145 --> 24:52.829 is , you know , can you talk a break 24:52.829 --> 24:54.996 out a little bit like the , the impact 24:54.996 --> 24:56.940 of those operations on this budget 24:56.940 --> 24:58.996 request ? What are we seeing in here 24:58.996 --> 25:01.162 that is a direct result of the ongoing 25:01.162 --> 25:03.496 conflict in Iran ? Well , it's , I mean , 25:03.496 --> 25:05.496 this budget was formulated honestly 25:05.496 --> 25:07.773 before we went into conflict with Iran , 25:07.773 --> 25:09.885 right ? The overlap you'll see is the 25:09.885 --> 25:11.718 request for munitions , which is 25:11.718 --> 25:13.773 something we always need . We always 25:13.773 --> 25:13.510 need to increase our magazine depth , 25:13.800 --> 25:15.967 but outside of that , there aren't any 25:15.967 --> 25:18.078 operational costs in here from Iran . 25:18.078 --> 25:21.010 Thank you . Uh , thank you , uh , Chris 25:21.010 --> 25:22.954 Gordon , uh , Air and Space Forces 25:22.954 --> 25:25.170 magazine . Um , I also have a question 25:25.170 --> 25:27.160 on the munitions , um , expended 25:27.160 --> 25:29.410 against Iran , but , um , I understand 25:29.410 --> 25:31.743 it's not reflected in this budget , but . 25:31.839 --> 25:34.280 How long will it take to replenish 25:34.280 --> 25:36.336 these munitions ? I mean , as you've 25:36.336 --> 25:38.336 highlighted , it takes years to get 25:38.336 --> 25:40.447 munitions . So , um , are you already 25:40.447 --> 25:42.669 planning ahead for that for next year , 25:42.669 --> 25:44.836 and how long do you think it will take 25:44.836 --> 25:46.891 to replenish the department's stocks 25:46.891 --> 25:49.058 from what's been used ? I mean , every 25:49.058 --> 25:51.280 time we use something in combat , we're 25:51.280 --> 25:51.000 always looking at how to reconstitute 25:51.000 --> 25:53.119 and sustain that capability . So the 25:53.119 --> 25:55.119 department's obviously having those 25:55.119 --> 25:57.341 conversations and it's reflected , um , 25:57.341 --> 25:59.452 not just in this budget request , but 25:59.452 --> 26:01.619 in any supplement that we would or may 26:01.619 --> 26:04.390 send over to the Hill . Hey Thomas Devo 26:04.390 --> 26:07.310 at Defense One , for the nearly 1.5 26:07.310 --> 26:09.477 billion for border related operational 26:09.477 --> 26:11.532 requirements in the national defense 26:11.532 --> 26:13.588 areas , can you provide a little bit 26:13.588 --> 26:15.754 more clarity on what that is ? Is that 26:15.754 --> 26:17.699 construction ? Is it surveying for 26:17.699 --> 26:19.866 expansion ? Is it , you know , getting 26:19.866 --> 26:22.199 more equipment , trucks down there , um , 26:22.199 --> 26:24.421 just any clarity you can provide on the 26:24.421 --> 26:26.532 breakdown of that . Yeah , thanks for 26:26.532 --> 26:28.643 the question . The , the bulk of that 26:28.643 --> 26:30.588 number is actually for operational 26:30.588 --> 26:30.459 expenses to sustain people on the 26:30.459 --> 26:32.681 border . Um , there may be a little bit 26:32.681 --> 26:34.515 of , uh , construction there for 26:34.515 --> 26:36.737 temporary facilities , yeah , temporary 26:36.737 --> 26:38.737 facilities at most , but , but very 26:38.737 --> 26:40.959 little . So , no permanent structures . 26:40.959 --> 26:43.126 OK , not in this request . And then as 26:43.126 --> 26:45.126 a follow up to a related topic , 75 26:45.126 --> 26:47.181 billion for space superiority , um , 26:47.181 --> 26:49.070 how much of that is counter space 26:49.070 --> 26:51.403 capabilities ? You mentioned , you know , 26:51.403 --> 26:53.626 PNT and such , but is there a breakdown 26:53.626 --> 26:55.848 at all on anything more specific ? Um , 26:55.848 --> 26:57.848 no , sir , we don't break that down 26:57.848 --> 27:01.000 intentionally . Yeah . David Z , Real 27:01.000 --> 27:03.111 America's Voice , uh , good morning . 27:04.250 --> 27:06.930 Does the , uh , munitions request 27:06.930 --> 27:09.099 include the recent announcement of 27:09.099 --> 27:11.321 tripling the capacity of the production 27:11.321 --> 27:13.609 of the PAC-3s , and how many of the 27:13.609 --> 27:15.609 PAC-3 and THAAD systems that are in 27:15.609 --> 27:18.609 this budget go towards protecting 27:18.609 --> 27:20.665 foreign entities , or is that always 27:20.665 --> 27:22.553 separate in foreign aid budgets ? 27:22.839 --> 27:24.839 Thanks for the question . Yeah , it 27:24.839 --> 27:27.006 does include that massive ramp and PAC 27:27.006 --> 27:30.300 3 , purchases . And so for the budget , 27:30.400 --> 27:32.456 we don't decide where munitions go , 27:32.479 --> 27:34.590 right ? That's , that's the decisions 27:34.590 --> 27:36.535 made inside , uh , the Pentagon in 27:36.535 --> 27:38.812 consultation with the White House . Uh , 27:38.812 --> 27:40.979 so right now we're focused on how many 27:40.979 --> 27:43.146 we're going to buy , and those will be 27:43.146 --> 27:45.257 decisions about operations to be made 27:45.257 --> 27:44.760 later . So if I could , sir , just to 27:44.760 --> 27:47.000 clarify a little bit . Um , we , well , 27:47.079 --> 27:48.968 we don't choose where we're gonna 27:48.968 --> 27:50.968 employ them ahead of time , right ? 27:50.968 --> 27:53.079 They are for the US stocks . They are 27:53.079 --> 27:54.912 for our capabilities . Foreign , 27:54.912 --> 27:57.135 foreign purchases are handled through a 27:57.135 --> 28:00.170 foreign military sales effort . Hi 28:00.170 --> 28:02.281 Ashley Murphy with Breaking Defense . 28:02.281 --> 28:04.337 Um , I want to follow back up on the 28:04.337 --> 28:07.079 reconciliation plan . Um , it's what , 28:07.130 --> 28:10.050 uh , 350 billion , but a lot of like 28:10.050 --> 28:12.410 high priority things in there , whether 28:12.410 --> 28:15.569 it's Golden Dome , munitions , um , the 28:15.569 --> 28:17.791 Defense Autonomous warfare Group . What 28:17.791 --> 28:19.902 risk are you assuming by placing some 28:19.902 --> 28:21.847 of these top priorities within the 28:21.847 --> 28:24.099 reconciliation ? Yeah , I think so the 28:24.099 --> 28:26.420 question I would say it like this , we 28:26.420 --> 28:28.476 put a lot of high priority things in 28:28.476 --> 28:30.587 there for a variety of reasons . Um , 28:30.587 --> 28:32.920 if we use mandatory spending , number 1 , 28:32.920 --> 28:35.031 we have some more flexibility on when 28:35.031 --> 28:37.364 we obligate those funds . Uh , number 2 , 28:37.364 --> 28:39.531 we did it for things that were kind of 28:39.531 --> 28:41.698 a one-time plus up that we really want 28:41.698 --> 28:43.809 to increase our funding of . And then 28:43.809 --> 28:43.420 finally , when there's technology 28:43.420 --> 28:45.642 that's changing quickly like for Golden 28:45.642 --> 28:47.864 Domeer for the dog , uh , we try to put 28:47.864 --> 28:49.698 things there . Uh , if we're not 28:49.698 --> 28:51.864 successful in getting a reconciliation 28:51.864 --> 28:51.729 bill passed , then we'll revisit that 28:51.729 --> 28:53.785 with the White House and Congress to 28:53.785 --> 28:56.007 achieve our budget request . And then I 28:56.007 --> 28:58.229 also wanted to ask about the dog . Huge 28:58.229 --> 29:00.285 jump , $55 billion but it looks like 29:00.285 --> 29:02.910 it's placed mostly in RDTNE , but 29:02.910 --> 29:04.910 reconciliation , does that give you 29:04.910 --> 29:07.188 flexibility to actually make purchases , 29:07.390 --> 29:10.010 or is this all going to be research and 29:10.010 --> 29:12.066 development ? Is it spread among the 29:12.066 --> 29:14.232 services ? Could you just sort of walk 29:14.232 --> 29:16.288 us through some of this ? I think of 29:16.288 --> 29:18.399 the dog as a pathfinder . They're out 29:18.399 --> 29:20.510 there finding the best technology for 29:20.510 --> 29:22.843 us and working on integration . They're , 29:22.843 --> 29:22.520 uh , with these companies live right 29:22.520 --> 29:24.550 now testing different systems and 29:24.550 --> 29:26.717 orchestration tools for autonomy , and 29:26.717 --> 29:28.772 they're giving them live feedback so 29:28.772 --> 29:30.939 it's a very agile process and a lot of 29:30.939 --> 29:30.910 the programs themselves will be 29:30.910 --> 29:33.077 executed the services . General , what 29:33.077 --> 29:35.243 you , I , I , I would say the question 29:35.243 --> 29:37.410 about research and development funding 29:37.410 --> 29:39.577 makes perfect sense in my mind because 29:39.577 --> 29:39.400 you're talking about innovation in 29:39.400 --> 29:41.567 terms of weeks and the ability to spin 29:41.567 --> 29:43.456 and , and , and . And develop new 29:43.456 --> 29:45.733 capabilities . It's really what we are . 29:45.733 --> 29:47.733 It's not that you're buying one set 29:47.733 --> 29:49.789 baseline and you're gonna procure it 29:49.789 --> 29:49.719 forever . It's a , it's an incremental 29:49.719 --> 29:51.775 capability , which is if you look at 29:51.775 --> 29:53.941 the . Federal regulations , that tells 29:53.941 --> 29:55.941 you that's research and development 29:55.941 --> 29:57.608 type money . Just sorry , one 29:57.608 --> 29:59.163 clarification . Since it is 29:59.163 --> 30:01.330 reconciliation , could you use some of 30:01.330 --> 30:03.552 that for procurement , or it's just $55 30:03.552 --> 30:05.775 billion ? You can , you can buy and you 30:05.775 --> 30:07.552 can buy items with research and 30:07.552 --> 30:07.010 development , but you just typically 30:07.010 --> 30:09.930 don't buy a large lot of things of one 30:09.930 --> 30:13.849 particular thing . I Hi , thanks 30:13.849 --> 30:15.969 for doing this . I actually have 3 30:15.969 --> 30:18.410 unrelated questions . Um , first , you 30:18.410 --> 30:21.040 know , last year we had a couple 30:21.040 --> 30:23.290 billion in Pentagon funds that was 30:23.290 --> 30:25.609 taken out for like military barracks in 30:25.609 --> 30:27.609 Japan and they were put towards the 30:27.609 --> 30:30.050 border . You said all of the issues 30:30.050 --> 30:32.217 with the barracks are funded . Are you 30:32.217 --> 30:34.439 backstopping that ? Is that going to be 30:34.439 --> 30:36.810 taken care of completely ? So what we 30:36.810 --> 30:38.977 did is we have a list of barracks that 30:38.977 --> 30:41.143 are in poor and failing condition . We 30:41.143 --> 30:43.477 created a building condition index , uh , 30:43.477 --> 30:45.643 and I think if you're below 80 on that 30:45.643 --> 30:44.770 index , you're considered poor or 30:44.770 --> 30:46.609 failing . So we went through and 30:46.609 --> 30:48.776 calculated how much money we'd have to 30:48.776 --> 30:50.609 invest to remediate every single 30:50.609 --> 30:52.942 barracks that's in that condition , and , 30:52.942 --> 30:55.053 and that's what we say we're going to 30:55.053 --> 30:54.449 remediate all the barracks that are 30:54.449 --> 30:57.209 poor or substandard . So it would 30:57.209 --> 30:59.320 include that they're all on that list 30:59.320 --> 31:01.431 if they were on the list , then we're 31:01.431 --> 31:03.765 going to remediate them , OK . And then , 31:03.765 --> 31:05.820 so the second clarification is . You 31:05.820 --> 31:07.876 had , had mentioned that none of the 31:07.876 --> 31:10.042 fixes for any of the damage under this 31:10.042 --> 31:12.729 war are included in this . So there's 31:12.729 --> 31:16.109 gonna be a roughly $200 million 31:17.099 --> 31:19.043 additional or or billion dollars , 31:19.043 --> 31:21.377 excuse me , a $200 billion supplemental . 31:21.377 --> 31:24.099 So in total , the US , the American 31:24.099 --> 31:27.550 people can expect $1.7 trillion 31:27.939 --> 31:30.400 to DOD . Is that , that the total ask 31:30.400 --> 31:32.567 that's gonna be coming down the pipe , 31:32.567 --> 31:35.569 $1.5 trillion . And plus 200 billion . 31:35.819 --> 31:37.763 Well , as Director Vaughtt said in 31:37.763 --> 31:39.986 testimony , I think last week , uh , we 31:39.986 --> 31:41.763 don't have a final number for a 31:41.763 --> 31:43.930 supplemental request and we don't have 31:43.930 --> 31:45.875 a final number for , uh , what the 31:45.875 --> 31:47.986 damage is to , uh , our installations 31:47.986 --> 31:50.208 overseas , right ? It really depends on 31:50.208 --> 31:49.939 how we decide to rebuild those or if we 31:49.939 --> 31:52.161 do . Our partners also might contribute 31:52.161 --> 31:54.328 a share to that construction , uh , so 31:54.328 --> 31:56.550 we don't have a great estimate for what 31:56.550 --> 31:58.550 it would take to reconstitute those 31:58.550 --> 32:00.717 facilities . And finally , what is the 32:00.717 --> 32:02.828 number one priority if you had to , I 32:02.828 --> 32:04.772 know that , that there are several 32:04.772 --> 32:06.939 priorities , but where is the greatest 32:06.939 --> 32:09.217 need right now where the budget should , 32:09.217 --> 32:12.150 should fix problems ? This budget is 32:12.150 --> 32:14.469 engineered to try to reconstitute 32:14.469 --> 32:16.910 America's defense industrial base and 32:16.910 --> 32:19.560 give us capacity . That's the number 32:19.560 --> 32:21.449 one priority for me . Although if 32:21.449 --> 32:23.560 you're I , I was gonna say I'd go the 32:23.560 --> 32:23.479 opposite , right ? And this is the 32:23.479 --> 32:25.646 beauty of this , this budget , right ? 32:25.646 --> 32:27.701 By having a budget of this size , we 32:27.701 --> 32:29.646 were not forced to make that trade 32:29.646 --> 32:31.368 between investment in , in the 32:31.368 --> 32:33.535 capabilities we need and the readiness 32:33.535 --> 32:35.535 of our force . And so , to me , the 32:35.535 --> 32:37.757 beauty is we can have both in this , in 32:37.757 --> 32:39.701 this conversation . And then we're 32:39.701 --> 32:41.701 really interested in that readiness 32:41.701 --> 32:44.060 piece . OK , we're doing good on time . 32:44.219 --> 32:46.219 I do need to take a couple from the 32:46.219 --> 32:47.886 phone . Uh , Brandy Vincent . 32:50.140 --> 32:52.660 Hi , thank you so much for doing this 32:52.660 --> 32:54.699 today . I'm following up on Ash's 32:54.699 --> 32:57.540 questions about the dog . So , A little 32:57.540 --> 32:59.651 bit more on that . It's , it's mostly 32:59.651 --> 33:02.060 for drones and drone related software 33:02.060 --> 33:04.116 across all military domains , but it 33:04.116 --> 33:06.810 doesn't represent all of the drone 33:06.810 --> 33:08.699 investments , these massive drone 33:08.699 --> 33:10.866 investments that you guys are making . 33:10.866 --> 33:13.088 Can you provide a little bit of clarity 33:13.088 --> 33:15.199 on the difference between those two ? 33:15.199 --> 33:17.366 And then is there anything for counter 33:17.366 --> 33:19.254 drone technologies within the dog 33:19.254 --> 33:21.800 funding as well ? Hey , so thank you 33:21.800 --> 33:24.022 very much for the question and I'll try 33:24.022 --> 33:26.133 and answer both questions at the same 33:26.133 --> 33:25.640 time . I know it's a , that's a 33:25.640 --> 33:28.160 challenge for , for many folks . So if 33:28.160 --> 33:30.327 I don't get this right , just say so . 33:30.327 --> 33:32.489 Um , so we talked about in autonomous 33:32.489 --> 33:34.489 operations and autonomous offensive 33:34.489 --> 33:36.656 capabilities put forward by the dog of 33:36.656 --> 33:39.439 about $54 billion . There's also $20 33:39.439 --> 33:43.140 billion to , to , In requests for 33:43.880 --> 33:46.680 countering small drones or counter 33:46.680 --> 33:49.680 small UASs , um , we look at that as a 33:49.680 --> 33:51.791 as a capability that's necessary that 33:51.791 --> 33:54.013 we've seen in the battlefields . If you 33:54.013 --> 33:56.180 look at what's going on in Ukraine and 33:56.180 --> 33:58.236 their ability to have drone on drone 33:58.236 --> 34:00.347 type warfare and the ability to do so 34:00.347 --> 34:02.569 at at cost and scale , uh , it's really 34:02.569 --> 34:04.624 something that we need to figure out 34:04.624 --> 34:06.847 how to take advantage of to protect our 34:06.847 --> 34:09.013 force . And so we , we are making that 34:09.013 --> 34:10.791 investment in the counter drone 34:10.791 --> 34:13.013 capability as well . OK , one more from 34:13.013 --> 34:15.689 the phone . Jeff , Jeff Shogel . Thank 34:15.689 --> 34:17.800 you , General . When you were talking 34:17.800 --> 34:19.578 about the money that's going to 34:19.578 --> 34:21.911 barracks and also , uh , military bases , 34:21.911 --> 34:24.133 I believe I heard you say $57 billion . 34:24.133 --> 34:26.239 Is that figure correct or is it $37 34:26.239 --> 34:28.295 billion ? Thank you , sir . It's a , 34:28.295 --> 34:31.290 it's a $5757 billion in facilities 34:31.290 --> 34:33.068 sustainment , restoration , and 34:33.068 --> 34:35.209 modernization , of which it includes 34:35.209 --> 34:38.000 the barracks money , the housing money , 34:38.080 --> 34:40.136 and other facilities work across the 34:40.136 --> 34:43.559 department . OK . 34:44.118 --> 34:46.451 Hi , Brian O'Reilly with Punchbowl News . 34:46.451 --> 34:48.618 Um , quick follow up , Mr . Hurst , to 34:48.618 --> 34:50.674 something that you said before . You 34:50.674 --> 34:50.458 mentioned penalties for contractors 34:50.458 --> 34:52.680 that don't meet the ramp out rates laid 34:52.680 --> 34:54.958 out in the multi-year procurement , uh , 34:54.958 --> 34:57.069 framework agreements . Could you just 34:57.069 --> 34:59.069 sort of expound on what those are , 34:59.069 --> 34:58.599 what they look like , and I have an 34:58.599 --> 35:00.599 actual budget question after that . 35:00.599 --> 35:02.821 I'll give you something very general if 35:02.821 --> 35:02.769 that's OK . So first off , like I said , 35:02.849 --> 35:05.071 we're requiring contractors to foot the 35:05.071 --> 35:07.182 bill , uh , for Capex , right , which 35:07.182 --> 35:09.293 is something we haven't done before . 35:09.293 --> 35:11.293 So in order to pay for that capex , 35:11.293 --> 35:13.405 they have to sell a certain number of 35:13.405 --> 35:13.260 munitions to the United States . If 35:13.260 --> 35:15.538 they don't meet their production goals , 35:15.538 --> 35:17.760 they're not going to do that . So their 35:17.760 --> 35:19.760 loss , their initial penalty is the 35:19.760 --> 35:19.100 capex itself if they don't meet 35:19.100 --> 35:21.267 production rates . And then there will 35:21.267 --> 35:23.322 be , uh , provisions in contracts to 35:23.322 --> 35:25.322 penalize contractors who don't meet 35:25.322 --> 35:27.322 production ramp rates as well . And 35:27.322 --> 35:29.156 then budget question , obviously 35:29.156 --> 35:31.211 munitions are a massive ramp up , as 35:31.211 --> 35:33.211 you said , in this budget request , 35:33.211 --> 35:32.830 tens of billions of dollars going 35:32.830 --> 35:34.997 towards these these critical systems . 35:35.310 --> 35:38.459 How would a supplemental request be any 35:38.459 --> 35:40.681 different , especially when it comes to 35:40.681 --> 35:42.737 munitions ? There could certainly be 35:42.737 --> 35:44.626 overlap in a supplemental request 35:44.626 --> 35:46.848 because there is going to be a focus on 35:46.848 --> 35:45.949 munitions in this budget or a 35:45.949 --> 35:48.171 supplemental , uh , and if that was the 35:48.171 --> 35:50.449 case where we had overlapping requests , 35:50.449 --> 35:52.505 we could talk to the White House and 35:52.505 --> 35:51.830 Congress about how we want to revise 35:51.830 --> 35:54.679 them , especially the budget . We got 5 35:54.679 --> 35:57.469 more minutes left . Thank you , Todd 35:57.469 --> 36:00.290 Wood from CDM . There's been a view in 36:00.290 --> 36:02.179 the force , especially during the 36:02.179 --> 36:04.290 global war on terror , that the trend 36:04.290 --> 36:06.401 towards centralized command has had a 36:06.401 --> 36:08.457 negative impact on commanders in the 36:08.457 --> 36:10.290 field . You also saw that in the 36:10.290 --> 36:12.512 Ukraine war with being controlled and a 36:12.512 --> 36:14.790 lot of negative decisions , many think . 36:14.790 --> 36:16.457 Does this budget support that 36:16.457 --> 36:18.346 centralization ? Does it drive it 36:18.346 --> 36:20.568 forward , or does it support commanders 36:20.568 --> 36:22.623 in the field ? I , I have heard that 36:22.623 --> 36:24.512 there's a multi-billion dollar CC 36:24.512 --> 36:26.679 program . Yeah , that's an interesting 36:26.679 --> 36:28.679 question . I don't think the issues 36:28.679 --> 36:30.901 commanders having awareness , right ? I 36:30.901 --> 36:33.012 think that's more of a cultural issue 36:33.012 --> 36:35.012 where commanders need to understand 36:35.012 --> 36:37.179 when they need to insert themselves in 36:37.179 --> 36:36.530 the chain of command and when they need 36:36.530 --> 36:38.669 to stay out and then uh . Let 36:38.669 --> 36:40.891 subordinates take the lead because they 36:40.891 --> 36:43.002 have better situational awareness . I 36:43.002 --> 36:42.479 was gonna say that's , that's the 36:42.479 --> 36:44.646 age-old question , right ? As , as a , 36:44.646 --> 36:46.701 as somebody on the , on the tactical 36:46.701 --> 36:48.701 battlefield , you see your tactical 36:48.701 --> 36:50.868 space , but the operational commanders 36:50.868 --> 36:50.719 obviously gonna see multiple tactical 36:50.719 --> 36:52.886 pictures at the same time . And so how 36:52.886 --> 36:54.941 do you have that , that conversation 36:54.941 --> 36:57.163 between the two ? The principle of , of 36:57.163 --> 36:59.219 warfare has always been , you know , 36:59.219 --> 37:01.330 centralized direction , decentralized 37:01.330 --> 37:03.497 execution , and so I think we continue 37:03.497 --> 37:05.663 that with this effort . Supplemental , 37:05.663 --> 37:07.775 is there any funds in this budget for 37:07.775 --> 37:09.997 the Ukraine conflict that you know of ? 37:09.997 --> 37:09.909 And also , have you scrubbed it for DEI 37:09.909 --> 37:12.076 initiatives for this year ? There's no 37:12.076 --> 37:14.187 DEI money in this budget , that's for 37:14.187 --> 37:16.889 sure . As far as Ukraine conflict , one 37:16.889 --> 37:18.833 of our big problems as a country , 37:18.833 --> 37:20.778 right , is we haven't been able to 37:20.778 --> 37:22.833 produce enough to support our allies 37:22.833 --> 37:24.945 and partners , whether it's munitions 37:24.945 --> 37:24.780 or aircraft or a variety of systems , 37:24.810 --> 37:27.032 and the waits for FMS have grown longer 37:27.032 --> 37:29.810 and longer . So in a way this budget is 37:29.810 --> 37:32.239 engineered again to produce more , uh , 37:32.290 --> 37:34.457 which gives the commander in chief and 37:34.457 --> 37:36.679 Congress more flexibility in how we aid 37:36.679 --> 37:39.012 our our allies and partners . Thank you . 37:39.012 --> 37:41.234 Doing good on time . Hey , I'm , Marcus 37:41.234 --> 37:43.401 Weisser with The Wall Street Journal . 37:43.401 --> 37:43.379 Uh , as you mentioned , there , the 37:43.590 --> 37:46.389 budget's 1.5 , 750 billion is 37:46.389 --> 37:48.278 reconciliation , um , I'm sorry , 37:48.278 --> 37:50.129 procurement and R&D . Given the 37:50.389 --> 37:52.500 reductions in the federal workforce , 37:52.590 --> 37:54.812 how , how confident are you that you'll 37:54.812 --> 37:56.812 be able to execute this in a timely 37:56.812 --> 37:59.034 manner ? So one of the major challenges 37:59.034 --> 38:00.812 of this budget is to be able to 38:00.812 --> 38:02.812 obligate dollars in a timely manner 38:02.812 --> 38:05.146 because it's such a large increase , uh , 38:05.146 --> 38:06.923 but we haven't been taking away 38:06.923 --> 38:09.090 workforce from areas that are involved 38:09.090 --> 38:11.201 in critical efforts like the dog or , 38:11.201 --> 38:13.423 you know , space acquisition , which is 38:13.423 --> 38:15.646 where a lot of this money goes and so I 38:15.646 --> 38:15.409 think most of our workforce cuts have 38:15.409 --> 38:17.576 been in things that will not be , um . 38:18.000 --> 38:19.889 These people will not be directly 38:19.889 --> 38:21.833 obligating funds . People left the 38:21.833 --> 38:24.056 workforce . As a quick follow up , um , 38:24.056 --> 38:26.222 the current reconciliation , I believe 38:26.222 --> 38:28.222 98% of that's gonna be , uh , spent 38:28.222 --> 38:30.056 over a year . What's your , uh , 38:30.056 --> 38:32.167 thinking on the 350 over the timeline 38:32.167 --> 38:34.278 that you're gonna actually spend it ? 38:34.278 --> 38:36.389 It'll depend , um , for , so for some 38:36.389 --> 38:38.500 things , let's go to , uh , Office of 38:38.500 --> 38:40.500 Strategic Capital , right ? They're 38:40.500 --> 38:42.722 getting $20 billion in this budget . If 38:42.722 --> 38:44.722 they have a ton of good initiatives 38:44.722 --> 38:46.833 that they want to fund and offer loan 38:46.833 --> 38:46.790 guarantees or loans for in that first 38:46.790 --> 38:48.734 year , they may try to use all the 38:48.734 --> 38:50.846 money . Uh , if they don't have a lot 38:50.846 --> 38:53.012 of good opportunities , they may delay 38:53.012 --> 38:54.957 obligating those funds into future 38:54.957 --> 38:57.179 fiscal years . And , and that's part of 38:57.179 --> 38:56.350 what we were doing when we engineered 38:56.350 --> 38:58.628 the reconciliation part of this budget . 38:58.628 --> 39:00.794 We were looking at things where we may 39:00.794 --> 39:00.760 need that flexibility based on 39:00.760 --> 39:03.600 opportunities . You have time for two 39:03.600 --> 39:06.320 more questions . Uh , thank you , thank 39:06.320 --> 39:08.679 you with Kong . Uh , thank you for 39:08.679 --> 39:10.929 holding this briefing . And I'd like to 39:10.929 --> 39:12.600 ask about deterrence in the 39:12.600 --> 39:14.939 Indo-Pacific region , uh , especially 39:15.360 --> 39:18.000 the Pacific Deterrence Initiative for 39:18.000 --> 39:21.040 PDI . Uh , what is the total funding 39:21.040 --> 39:24.770 level for PDI and , uh , how does that 39:24.770 --> 39:28.649 compare with fiscal year 2026 in terms 39:28.879 --> 39:31.459 of increase or decrease ? Yeah , I mean , 39:31.550 --> 39:33.661 I mean , I would , I would guess that 39:33.661 --> 39:35.717 the amount of funding in this budget 39:35.717 --> 39:37.883 that's relevant to the Indo-Pacific is 39:37.883 --> 39:40.050 drastically increased . I don't have a 39:40.050 --> 39:42.272 number of , of what would directly fall 39:42.272 --> 39:42.100 under PDI at this time . I don't have a 39:42.100 --> 39:44.156 number for you either , sir . I know 39:44.156 --> 39:46.378 that , uh , Admiral Paparo is satisfied 39:46.378 --> 39:48.544 that we have addressed his concerns as 39:48.544 --> 39:51.330 a part of this budget . Thank you . Yes , 39:51.780 --> 39:53.891 yes , uh , Michael Casey with O'Keefe 39:53.891 --> 39:55.891 Media Group . Um , thank you . Good 39:55.891 --> 39:58.002 morning . Um , do you know if there's 39:58.002 --> 40:00.058 anything in the budget for , um , an 40:00.058 --> 40:00.030 internal anti-espionage training for 40:00.030 --> 40:02.363 Department of War , Pentagon , and , uh , 40:02.363 --> 40:04.474 Department of Army , uh , employees ? 40:04.474 --> 40:06.141 Uh , we have , uh , we have a 40:06.141 --> 40:08.363 curriculum and , um , coursework around 40:08.363 --> 40:10.363 that already that people take on an 40:10.363 --> 40:12.474 annual basis . It's , I think we call 40:12.474 --> 40:11.870 it insider threat training in the 40:11.870 --> 40:14.229 department . Yeah , yeah , I , I would 40:14.229 --> 40:16.229 assume it just continues . Has that 40:16.229 --> 40:17.785 changed at all in the Trump 40:17.785 --> 40:19.785 administration compared to previous 40:19.785 --> 40:21.729 administrations ? I don't have any 40:21.729 --> 40:21.040 information to provide to you , sir . 40:21.159 --> 40:24.310 Sorry . Tony , just . Yeah , Tony Capao 40:24.310 --> 40:26.254 and Bloomberg , you're going to be 40:26.254 --> 40:28.588 asked this repeatedly because you don't , 40:28.588 --> 40:30.643 you can't pass an audit . There's no 40:30.643 --> 40:32.866 modified audit opinion . Why should the 40:32.866 --> 40:35.088 Pentagon be trusted with the obligation 40:35.088 --> 40:36.977 and tracking of this multibillion 40:36.977 --> 40:39.250 dollar generational investment . And 40:39.250 --> 40:41.417 then for general an easier one for you 40:42.290 --> 40:44.290 on the on the F-35 , you're ramping 40:44.290 --> 40:46.419 from 47 to 85 . This plane's had 40:46.419 --> 40:48.379 miserable to substandard MC rate , 40:48.479 --> 40:50.312 mission capable and full mission 40:50.312 --> 40:52.489 capable rates . What dollars are 40:52.489 --> 40:54.860 allocated in this budget to help beef 40:54.860 --> 40:56.916 up those mission capable rates while 40:56.916 --> 40:59.850 you keep buying the airplane ? I 40:59.850 --> 41:02.072 appreciate the question . Um , I know , 41:02.072 --> 41:04.017 I do actually because we're making 41:04.017 --> 41:06.072 progress in the audit . I expect the 41:06.072 --> 41:08.017 Navy to get a working capital fund 41:08.017 --> 41:07.679 opinion in 26 . I think they're gonna 41:07.679 --> 41:09.846 get their general fund opinion in 27 . 41:09.889 --> 41:12.056 I think the Department of War will get 41:12.056 --> 41:14.278 a working capital fund , a consolidated 41:14.278 --> 41:16.445 one in 27 , and I think we have a real 41:16.445 --> 41:18.500 shot at getting an opinion by 28 for 41:18.500 --> 41:20.556 the general fund . We've changed our 41:20.556 --> 41:19.530 approach . We're taking a more 41:19.530 --> 41:21.770 centralized approach . We're applying 41:21.770 --> 41:23.937 new technology to help us reconcile uh 41:23.937 --> 41:26.239 data , right ? Generative AI is a game 41:26.239 --> 41:28.406 changer for that . Marine Corps passed 41:28.406 --> 41:30.572 their audit through brute force . They 41:30.572 --> 41:30.479 get a lot of people to look at Excel 41:30.479 --> 41:32.590 sheets and reconcile data . We can do 41:32.590 --> 41:34.646 that with technology now and so it's 41:34.646 --> 41:36.646 really changing how we approach the 41:36.646 --> 41:36.639 audit and our likelihood of achieving 41:36.639 --> 41:38.719 one within this administration . Is 41:38.719 --> 41:40.886 there a correlation though between not 41:40.886 --> 41:42.941 having a modified audit opinions and 41:42.941 --> 41:45.459 the ability to track the obligations 41:45.879 --> 41:47.965 and the expenditure . The efficient 41:47.965 --> 41:49.632 expenditure of those tracking 41:49.632 --> 41:51.854 obligations has never been an issue for 41:51.854 --> 41:53.909 us passing an audit . It's more like 41:53.909 --> 41:56.132 this , right ? We buy a nuclear missile 41:56.132 --> 41:57.965 in the 1970s and then we have to 41:57.965 --> 41:59.965 account for the present day value , 41:59.965 --> 42:02.076 which includes every single repair or 42:02.076 --> 42:01.604 modification we made to that missile 42:01.604 --> 42:03.885 over 50+ years . That's the kind of 42:03.885 --> 42:05.718 stuff that makes it hard for the 42:05.718 --> 42:07.829 department to get an audit . It's not 42:07.829 --> 42:07.695 tracking our funding in the year of 42:07.695 --> 42:10.125 execution . OK , I really should have 42:10.125 --> 42:12.236 let it , I should have gone first and 42:12.236 --> 42:14.514 let you finish with the audit question . 42:14.514 --> 42:16.681 Uh , hey , Tony , thanks . Uh , on the 42:16.681 --> 42:18.792 F-35 , uh , you asked about the , the 42:18.792 --> 42:21.069 increasing the US production ramp rate . 42:21.069 --> 42:20.800 Uh , what that is , is that's 42:20.800 --> 42:22.967 increasing the , the production or the 42:22.967 --> 42:24.856 portion of the US buy at Lockheed 42:24.856 --> 42:27.078 Martin . We know what , uh , Lockheed's 42:27.078 --> 42:28.744 current , uh , max production 42:28.744 --> 42:30.967 capability is , and we're just taking a 42:30.967 --> 42:32.744 larger chunk of that for the US 42:32.744 --> 42:34.967 capabilities . This budget also funds , 42:34.967 --> 42:36.633 uh , the block 4 upgrades and 42:36.633 --> 42:38.800 modifications , as well as investments 42:38.800 --> 42:40.856 in making sure , uh , um , we've got 42:40.856 --> 42:42.856 the supply chain necessary . Um , I 42:42.856 --> 42:45.078 don't have a specific breakout of funds 42:45.078 --> 42:46.967 for you . We can get that for you 42:46.967 --> 42:49.189 afterwards if you don't mind , um , but 42:49.189 --> 42:51.356 it is an investment that we're worried 42:51.356 --> 42:50.540 about and we are very concerned about 42:50.540 --> 42:52.860 making sure that the F-35 is the most 42:52.860 --> 42:54.971 capable airframe out there . And if I 42:54.971 --> 42:56.860 spare parts , are there a billion 42:56.860 --> 42:59.082 dollar increases in spare parts ? There 42:59.082 --> 43:01.138 is , there's , there's a significant 43:01.138 --> 43:03.082 increase in spare parts across the 43:03.082 --> 43:05.304 entire department , particularly in the 43:05.304 --> 43:07.527 F-35 though . We , we , we think that's 43:07.527 --> 43:09.693 been underfunded in the past as a part 43:09.693 --> 43:11.804 of the budget . We're increasing F-35 43:11.804 --> 43:13.860 spare parts funding to get at the MC 43:13.860 --> 43:13.610 rate . We're going to move the MC rate 43:13.610 --> 43:16.729 up . One last reconciliation cleanup 43:16.729 --> 43:18.896 question , is there a chart that shows 43:18.896 --> 43:21.062 all of the , the parties that are in , 43:21.062 --> 43:23.285 they're funded by reconciliation versus 43:23.285 --> 43:25.451 funded by the base ? Can we get that , 43:25.451 --> 43:27.562 or is that part of the slides that we 43:27.562 --> 43:29.562 just didn't ? We're going to have a 43:29.562 --> 43:29.489 justification book that lays out 43:29.489 --> 43:31.711 exactly what's in reconciliation , make 43:31.711 --> 43:33.822 it easy for everybody , and it's also 43:33.822 --> 43:35.933 broken out in our dash 1s that are on 43:35.933 --> 43:35.919 the Copro website . In general terms , 43:35.989 --> 43:38.100 you just give it the broad categories 43:38.100 --> 43:40.322 that are in the reconciliation versus . 43:40.322 --> 43:42.378 Yeah , um , defense industrial-based 43:42.378 --> 43:44.489 funding , right , that's a huge chunk 43:44.489 --> 43:46.656 of it . Uh , there's a large chunk for 43:46.656 --> 43:46.489 munitions . There's a large chunk for 43:46.489 --> 43:48.656 AI and data infrastructure , and a lot 43:48.656 --> 43:50.767 of the FSRM , which is geared towards 43:50.767 --> 43:52.545 remediating failing , uh , poor 43:52.545 --> 43:54.822 condition barracks is in there as well . 43:54.822 --> 43:56.933 Does it seem , I mean , at least some 43:56.933 --> 43:56.409 of them seem like kind of critical 43:56.409 --> 43:58.520 priorities , especially like munition 43:58.520 --> 44:00.409 stuff , but there's also a lot of 44:00.409 --> 44:02.576 question about whether that's actually 44:02.576 --> 44:04.742 going to get through Congress . What , 44:04.742 --> 44:06.853 what's the alternative plan if it's , 44:06.853 --> 44:06.689 if you meet , you know , resistance 44:06.689 --> 44:08.856 there . Well , first off , we're gonna 44:08.856 --> 44:10.911 do a good job explaining why we need 44:10.911 --> 44:13.078 this to Congress and the authorities , 44:13.078 --> 44:13.060 and last year they gave us the 44:13.060 --> 44:15.171 multi-year authorities for 8 critical 44:15.171 --> 44:17.227 munitions , right ? We expect to ask 44:17.227 --> 44:19.449 again for the rest of those and receive 44:19.449 --> 44:21.171 them , and we continue to have 44:21.171 --> 44:20.979 dialogues with our congressional 44:20.979 --> 44:23.035 partners about the necessity of this 44:23.035 --> 44:25.520 and our approach . Do you have the fit 44:25.520 --> 44:27.687 figures for the golden dome ? Oh , can 44:27.687 --> 44:29.576 you read them off to us from your 44:29.576 --> 44:31.520 charts ? I , I don't have it on my 44:31.520 --> 44:31.050 chart right here . Can you get those ? 44:31.129 --> 44:33.296 Cause that's pretty significant and we 44:33.296 --> 44:35.407 got the one year , but it'd be useful 44:35.407 --> 44:37.629 to get it , for the public to know over 44:37.629 --> 44:39.685 the next five years , year by year , 44:39.685 --> 44:41.740 golden dome expenditures . I believe 44:41.740 --> 44:43.851 General Gus put out the total cost of 44:43.851 --> 44:45.907 the program to the public . Um , but 44:45.907 --> 44:45.530 that's not just the fit up . That goes 44:45.530 --> 44:48.250 out to 2035 . I'm asking for the fit up 44:48.250 --> 44:50.472 figures . Yeah , we can look at getting 44:50.472 --> 44:52.417 you that answer . Thank you . OK , 44:52.417 --> 44:54.528 we're going to have to end it there . 44:54.528 --> 44:56.583 Uh , thank you very much . I realize 44:56.583 --> 44:58.694 there are some of you that still have 44:58.694 --> 45:00.750 questions . Uh , please send me your 45:00.750 --> 45:02.917 questions . I'll make sure that , uh , 45:02.917 --> 45:05.139 those get turned in . Uh , just a quick 45:05.139 --> 45:07.250 mention about materials . I mentioned 45:07.250 --> 45:09.194 at the beginning of the brief that 45:09.194 --> 45:11.306 these slides , uh , will be available 45:11.306 --> 45:13.417 on the Comptroller website by the end 45:13.417 --> 45:15.750 of the day . And then , uh , the JBooks , 45:15.750 --> 45:17.972 as they become available , will also be 45:17.972 --> 45:20.889 on the Comptroller website . OK ? Uh , 45:21.209 --> 45:23.209 that's all we have time for today . 45:23.290 --> 45:25.929 Please stand by , uh , for the Navy's 45:25.929 --> 45:28.040 brief , which will be followed by the 45:28.040 --> 45:30.120 Air Force budget brief , and , uh , 45:30.129 --> 45:33.520 then at 1400 . Uh , the army will brief . 45:33.899 --> 45:36.010 Uh , thank you very much , uh , sir , 45:36.459 --> 45:38.850 both of you . I think 45:40.550 --> 45:42.870 Uh . That was 45:45.129 --> 45:46.139 that was yeah , it's OK .