WEBVTT

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well . Good afternoon , Ladies and

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gentlemen , for those who don't know me .

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I'm eric Payton . I'm the deputies

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Public Affairs Advisor . We're very

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happy to be joining you this afternoon

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to announce the department's fiscal

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year 2023 budget request . In just a

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few moments , you'll hear statements

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from Deputy Secretary Dr Kathleen Hicks

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and Vice chairman of the Joint Chiefs

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of Staff . Admiral Chris Grady , Once

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Deputy Secretary Hicks and Admiral

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Grady complete their statements , will

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have time for a few short questions .

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I'll call on outlets as you're all

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aware . There are quite a few briefings

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and events today so we have to stay on

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schedule . Deputy and chairman have

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about 20 minutes at the podium . Ask

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you to keep your questions brief and

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down to one question per outlet so we

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can get to as many as possible . And

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with that , I'll turn it over to the

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department's chief operating officer .

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Deputy Secretary of Defense Dr .

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Kathleen Hicks . Great , thank you very

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much eric and thank you all for joining

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us today . Our defense budget reflects

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countless hours of analysis and

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refinement to ensure that the

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Department of Defense stands poised to

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play its vital role in advancing the

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President's national security

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objectives and the priorities

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articulated in the national defense

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strategy today . The department has

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provided the classified National

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Defense strategy to Congress and we

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have also released an unclassified fact

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sheet based on the depth of work

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undertaken over the past year across

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the department . President biden's Fy

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2023 Defense budget request of

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$773 billion a roughly

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8.1% increase over our fy 2022

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request makes the investments necessary

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to implement this national defense

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strategy . These investments are as

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vital as ever as we face . A myriad of

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challenges . The people of Ukraine are

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foremost on our minds . Russia poses an

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acute threat to the world order . As

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illustrated by its unprovoked invasion

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and vicious tactics . Even as we

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confront Russia's malign activities ,

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the defense strategy describes how the

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department will act urgently to sustain

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and strengthen deterrence with the PRC

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as are most consequential strategic

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competitor and pacing challenge the PRC

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has the military , economic and

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technological potential to challenge

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the international system and our

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interests within it . We also face

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other persistent threats including

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those emanating from north Korea Iran

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and violent extremist organizations And

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national security threats facing

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Americans at home have fundamentally

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changed from the post 9-11 world . In

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meeting this challenge set our national

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defense strategy prioritizes for

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objectives defending the homeland paste

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to the growing multi domain threat

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posed by the PRC , deterring strategic

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attack , deterring aggression while

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being prepared to prevail in a conflict

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when necessary . Prioritizing the PRC

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challenge in the indo pacific than the

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Russia challenge in europe and building

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a resilient joint force and defense

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ecosystem . Our FY 23 budget

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request makes the investments to

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advance these priorities by pursuing

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three approaches that connect our means

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to our ends integrated deterrence is

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our first approach . As Secretary

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Austin has said , we seek to integrate

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and network our efforts across domains ,

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theaters and across the spectrum of

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conflict to ensure that the U . S .

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Military in close cooperation with the

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rest of the U . S . Government and our

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allies and partners makes the folly and

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costs of aggression very clear . The

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combat credibility of the U . S .

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Military to fight and win in defense of

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our nation's interests is a cornerstone

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of integrated deterrence . The

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administration's defense top line

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includes $276 billion dollars for

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investment . That includes procurement

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and research , development , test and

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evaluation . Those resources deliver

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the combat credibility today and to the

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into the future that we need across air ,

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sea , land , cyber and space of

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note this budget ensures that our

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forces are back stopped by a safe ,

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secure and reliable nuclear deterrent .

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Our request invest $3.34.4 billion

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dollars in recapitalizing the nuclear

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triad . As well as supporting nuclear

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command control and communications

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systems . Our second approach is

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campaigning . Our competitors are

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increasingly undertaking activities

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designed to erode us deterrence and

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advance their own interests via gray

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zone activities . We in turn will

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operate forces , synchronize broader

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department efforts and gain advantage

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on our terms by tying together the

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breadth of U . S . And allied and

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partner defense activities through

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campaigning Central to campaigning is

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ensuring that the joint force is ready

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now across the full battle space

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competitors can present . We therefore

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invest almost $135 billion dollars in

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readiness . While we remain dynamic in

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our ability to respond to new threats

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across the globe . The department will

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focus are campaigning efforts in the

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indo pacific in europe . Through our

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pacific deterrence initiative as well

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as other efforts focused in the region .

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The department is making investments to

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support our comparative military

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advantage , enhance our posture ,

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provide for resilient logistics and

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increased cooperation with our regional

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allies and partners . Similarly , our

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budget request , makes investments that

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support us european command and deepen

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our ironclad commitment to NATO . We

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will optimize the responsiveness of the

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joint force , provide assistance to key

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through the Ukraine Security Assistance

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initiative and bolster security

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cooperation programs . The strategies

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third approach to support both

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integrated deterrence and campaigning

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is to build enduring advantages across

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the department's enterprise . This

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begins by building the workforce that

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we need , investing in our most

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critical asset our people . We will

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provide a 4.6% pay raise for our

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civilian and military personnel and

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invest in providing quality affordable ,

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childcare as well . Building . And

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during advantages also means that the

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department must continue to innovate

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and modernize of the roughly $130

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billion dollars that we are investing

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in R . D . T . Any . Our largest

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request ever 16.5 billion is dedicated

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to science and technology And we make

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other significant investments in more

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mature artificial intelligence and 5G

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programs . Gaining enduring advantage

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also requires us to invest in the

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nation's defense , industrial base in

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line with our strategy , we have five

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key focus areas for the industrial base .

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Microelectronic casting and forging

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batteries and energy storage , kinetic

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capabilities and strategic and critical

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minerals . This year's budget makes

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historic investments in all of these

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areas to build more security into our

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supply chain . We are also

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focused on generating savings to the

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taxpayer through clear eyed reforms

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From business process improvements to

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weapons systems acquisition . Our

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military departments generated $5.3

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billion Fy 23 . Those

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savings were realigned to meet our top

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warfighting needs . Finally combating

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climate change is vital to building

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enduring advantage by transforming the

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context in which we operate our climate

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change investments , improve our

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readiness and have the potential to

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decrease demands on the joint force .

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We invest more than $3 billion dollars

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to create platform efficiencies ,

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deploy new technologies and harden our

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critical infrastructure fully aligned

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with our warfighting needs and mission

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objectives . The department's fy 23

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request makes critical investments to

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defend our nation , but our security

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depends on more than dollars . We must

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out innovate and out perform would be

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threats at D . O . D . We too often get

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in our own way throwing up barriers to

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risk taking and other behaviors that

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foster innovation . At the same time we

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face external barriers to innovation

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like lengthy delays and defense

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appropriations that have become all too

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common even accepted and expected over

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the last two decades . As a result ,

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planning for the future is increasingly

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difficult , buying power is lost and

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commercial and international partners

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who are absolutely central to

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delivering on the potential in

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America's innovation ecosystem . Can't

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count on us both inside and outside the

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pentagon . We must work to find

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solutions to problems such as these to

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realize the concepts and capabilities

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that this century demands . Let me end

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by thanking everyone who contributed to

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the National Defense strategy , our

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budgets and ensuring the tight coupling

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of the two . The secretary and I look

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forward to working with Congress in the

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weeks and months to come to ensure that

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our service members and their families

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have the investments they need to deter

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threats and have called upon to keep

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our country secure with that , I'll

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turn it over to the vice chairman and

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thank him in advance for his

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partnership in this effort .

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Thank you Secretary X and thank you for

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your leadership and thanks to everyone

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for joining us today . It really is my

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privilege to represent the soldiers ,

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the sailors , the airmen , the marines

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and the guardians . As we discussed the

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Department of Defense , fiscal year

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2023 budget request with the joint

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warfighting concept and a new strategic

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approach to setting requirements . Our

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joint force has set out to achieve

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expanded maneuver in all domains ,

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building new capabilities and

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leveraging technologies to achieve

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overmatch against any potential

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adversary and over the past several

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months , Secretary Hicks has skillfully

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led the department to an excellent

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outcome . The American people can be

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confident that this year's budget

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request of $773 billion dollars ensures

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the joint force remains the most lethal

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and capable military on the planet . It

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will modernize and it will transform

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The force needed to win in the 20s 30s

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and beyond this budget resources the

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department to sustain and strengthen

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the joint force and it will allow us to

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field combat credible forces today

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while simultaneously preparing for the

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threats of the future . And we will

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maintain our advantage by continuing to

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invest in ready resilient and tough

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service members who are the best lead ,

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the best equipped and the best trained

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in the world . However , the joint

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force must continue to receive

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sufficient , timely sustained and

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predictable funding to ensure that we

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maintain our advantage and in fact

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build on it . The future security

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environment requires us to innovate

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across all domains and drives us to

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optimize our investments in areas such

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as cyber artificial intelligence and

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hypersonic programs . And we must also

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ensure that the nuclear triad remains

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the backstop of our strategic deterrent .

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While modernizing joint force

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capabilities that enhance

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interoperability and ensure our

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enduring advantage . These investments

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will set the condition for the joint

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force of the future . And this budget

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ensures that the joint force can

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continue to meet the demands of the

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numerous and complex challenges that

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face our nation And most importantly ,

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the fiscal year 2023 budget request

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remains in line with our strategic

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approach and proprietary prioritizes

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China as the pacing challenge and

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recognizes the acute threat opposed by

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Russia . It is now our task to be

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responsible stewards Of the nation's

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resources . So thank you , Madam ,

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secretary for your leadership and your

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words today . And again , it is my

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distinct privilege to represent the

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more than 2.1 million members of the

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joint force . Thank you . Thanks

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everybody . Mike Stone from Reuters ,

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we'll have the first question

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Earmarks . billion four climate

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initiatives . It's an interesting

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choice . It's the first time it's been

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broken out that way . Doesn't that

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present a large attack surface for

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budget discussions with Congress or are

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you gonna make a significant down

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payment on electrifying the non

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tactical vehicle vehicle fleet with

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that . Thanks very much . Um ,

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the national security community ,

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including the Defense Department , has

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long acknowledged the importance of

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climate change and the challenges it

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presents to us . So I don't think it

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creates an attack surface . I think it

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demonstrates the administration's

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commitment to ensuring we are resilient .

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We have to be resilient to cyber

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threats . We have to be resilient to

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climate change . Every lawmaker comes

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from a state or district where they are

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seeing the effects firsthand , rising

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sea levels , um , drought fires ,

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hurricanes , increased hurricanes and

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severity and that affects our

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installation . So we we've seen a clear

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alignment in a bipartisan way with

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Congress on the installation resiliency

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piece of this . Um , yes , we do put ,

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um , um , um , significant investment

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in the non tactical fleet

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electrification that's fully aligned

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with warfighter needs . All of our

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climate investments are fully aligned

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with more fighter needs and trying to

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reduce that very challenging logistics

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tail that comes from fuel and also

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making sure we can paste where the

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commercial market is going because our

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ability to sustain our fleets depends

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very much on where the commercial

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sector goes . So I'm very confident in

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what we've put together . It is the

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first time we've shown those

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investments in this way . Second year ,

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we've tried to show it the first time .

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I think we've done a really thorough

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job of scrubbing through the budget to

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put those investments forward . And I

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think they'll show very well . Okay ,

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thank you , ma'am , Louis Martinez abc ,

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I'm in . Um , can I ask you about the

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inflationary pressures that in this

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budget we're seeing the worst inflation

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in 40 years ? Um , I think that had an

14:59.350 --> 15:01.572
impact on the race . Is that the annual

15:01.572 --> 15:03.406
raises that we're seeing for the

15:03.406 --> 15:05.461
service members ? Can you talk about

15:05.461 --> 15:07.628
the impact that that raises gonna have

15:07.628 --> 15:09.850
on service members , um , this year and

15:09.850 --> 15:12.017
potentially into the future ? And what

15:12.017 --> 15:11.430
are some of the inflationary pressures

15:11.430 --> 15:13.374
that you saw going into the budget

15:13.374 --> 15:15.570
itself , uh , in the base this year ,

15:15.690 --> 15:18.170
given again that the costs are rising

15:18.180 --> 15:21.640
for the supply chain . Let's start .

15:21.650 --> 15:24.130
Okay , well , so first , I would say we

15:24.130 --> 15:26.297
obviously seeing inflationary pressure

15:26.297 --> 15:28.670
here in 22 . We've just had the Omnibus

15:28.670 --> 15:30.726
passed that Omnibus did not yet take

15:30.726 --> 15:33.420
account of inflation in 22 . So we'll

15:33.420 --> 15:35.476
be working with Congress through the

15:35.476 --> 15:37.520
summer on on how this year sort of

15:37.520 --> 15:40.110
lands . The 23 budget obviously starts

15:40.110 --> 15:42.800
in October and goes out 12 months past

15:42.800 --> 15:45.020
that . So we will at the same time be

15:45.020 --> 15:47.131
looking over the summer where exactly

15:47.131 --> 15:49.298
inflation lands and how inflation ends

15:49.298 --> 15:51.620
up affecting our service members . That

15:51.620 --> 15:54.100
said , we built into this 23 budget ,

15:54.100 --> 15:56.322
the best information that we had at the

15:56.322 --> 15:58.378
time . We built the budget as in any

15:58.378 --> 16:00.267
year we're gonna , we're gonna be

16:00.267 --> 16:02.322
working that as we get closer to the

16:02.322 --> 16:04.544
reality and even in execution will have

16:04.544 --> 16:06.767
to work on that . But some of the areas

16:06.767 --> 16:08.656
that we focused on have mentioned

16:08.656 --> 16:10.600
already the pay raise , that's our

16:10.600 --> 16:12.656
largest pay raise in 20 years on the

16:12.656 --> 16:14.822
military and civilian side . We've put

16:14.822 --> 16:17.240
that in place . Um , we've also looked

16:17.240 --> 16:19.450
very much at things like bh we've

16:19.450 --> 16:23.090
looked at uh , the $15 minimum wage for

16:23.090 --> 16:24.812
everyone who is supporting the

16:24.812 --> 16:26.590
department that's including our

16:26.590 --> 16:28.923
contractor based . Um , and we continue ,

16:28.923 --> 16:30.701
the secretary's very focused on

16:30.701 --> 16:32.923
economic security for service members .

16:32.923 --> 16:35.146
So those are all areas that we have put

16:35.146 --> 16:37.312
investments in this year . I mentioned

16:37.312 --> 16:39.534
childcare and a few others . You'll see

16:39.534 --> 16:41.757
all of which are going to be helpful in

16:41.757 --> 16:43.920
terms of resiliency around issues of

16:43.920 --> 16:45.920
inflation . Let me just turn to the

16:45.920 --> 16:49.370
vice chairman . Thank you . Uh I think

16:49.370 --> 16:52.170
this is a classic example of building

16:52.170 --> 16:54.114
enduring advantage and that is our

16:54.114 --> 16:56.226
focus on the center of the universe ,

16:56.226 --> 16:58.003
our total force , whether it be

16:58.003 --> 17:00.920
reserved active or civilians , um in

17:00.920 --> 17:03.031
that regard , then how we take a look

17:03.031 --> 17:05.198
at inflation and the pressures that it

17:05.198 --> 17:07.309
puts on our service members are front

17:07.309 --> 17:09.531
and center to everything . We do . Many

17:09.531 --> 17:08.960
of the programs that the Deputy

17:08.960 --> 17:12.210
secretary mentioned are critical to

17:12.220 --> 17:14.320
many of our families . So we look at

17:14.320 --> 17:17.230
everything from childcare , uh to food

17:17.230 --> 17:19.700
insecurity . Um and certainly inflation

17:19.700 --> 17:21.922
can put a pressure on that . It can put

17:21.922 --> 17:24.033
pressure on the budget for sure . But

17:24.033 --> 17:26.367
I'm going to put pressure on our people .

17:26.367 --> 17:28.644
So staying in tune to the needs of the ,

17:28.644 --> 17:28.410
of the center of the universe are

17:28.410 --> 17:30.530
people that total force is absolutely

17:30.530 --> 17:32.530
essential to building that enduring

17:32.530 --> 17:34.860
advantage because I'm sure you can

17:34.860 --> 17:36.750
appreciate today is very tightly

17:36.750 --> 17:38.861
scheduled . We're about to run out of

17:38.861 --> 17:40.917
time Tony Did you have a quick one ?

17:40.917 --> 17:42.972
What is the 4th sizing construct for

17:42.972 --> 17:45.980
this budget for the bumper sticker for

17:45.980 --> 17:47.813
most people who don't follow the

17:47.813 --> 17:50.036
defense spending is that we're prepared

17:50.036 --> 17:52.091
to fight to reach two major regional

17:52.091 --> 17:54.258
contingencies to the to war strategy ,

17:54.258 --> 17:56.369
which I know has been abandoned . But

17:56.369 --> 17:58.091
What's the force sizing struck

17:58.091 --> 18:00.313
constructor because the army is cutting

18:00.313 --> 18:01.813
12,000 troops . The Navy's

18:01.813 --> 18:03.869
Decommissioning 24 ships and the air

18:03.869 --> 18:05.813
force is retiring 150 aircraft . I

18:05.813 --> 18:07.702
gotta wonder what's driving those

18:07.950 --> 18:10.172
decommissioned and cuts what strategy .

18:10.540 --> 18:13.150
Sure . So let me answer directly on the

18:13.150 --> 18:15.261
4th planet construction . Coming back

18:15.261 --> 18:17.372
back to your point on how you measure

18:17.372 --> 18:21.220
what we're doing . The 2018 NDS Frey

18:21.230 --> 18:23.760
framed and the unclassified space , um ,

18:23.770 --> 18:25.714
a force planning construct that we

18:25.714 --> 18:27.714
essentially continue , which is the

18:27.714 --> 18:29.937
ability to defeat aggression by a major

18:29.937 --> 18:31.937
power while returning opportunistic

18:31.937 --> 18:34.103
aggression elsewhere . There are other

18:34.103 --> 18:34.070
elements to force sizing , but that's

18:34.070 --> 18:36.292
the piece . You're really looking for .

18:36.292 --> 18:38.348
Our classified NDS that we've shared

18:38.348 --> 18:40.459
with Congress goes into great , great

18:40.459 --> 18:43.180
detail and how we come at that issue of

18:43.180 --> 18:45.860
four sizing . Um , um , and provides a

18:45.860 --> 18:48.250
lot of forward looking analysis in

18:48.250 --> 18:50.528
terms of how we will measure ourselves .

18:50.528 --> 18:52.639
So let's get to measuring ourselves .

18:52.639 --> 18:54.861
It's very often in this town that folks

18:54.861 --> 18:56.917
are focused on a particular number ,

18:56.917 --> 18:59.940
even dollar values , but also numbers

18:59.940 --> 19:02.820
of platforms . And we absolutely took a

19:02.820 --> 19:05.480
hard nosed analytic look at what are

19:05.480 --> 19:08.040
the effects that we can create and we

19:08.040 --> 19:10.262
use that to drive us in this strategy .

19:10.262 --> 19:12.450
So whatever the context you're looking

19:12.450 --> 19:14.760
at airpower , seapower , etcetera , we

19:14.760 --> 19:17.300
looked at a Joint force capability that

19:17.300 --> 19:19.411
can do , you know , is cyber secure ?

19:19.411 --> 19:21.356
Is space resilient and can deliver

19:21.356 --> 19:24.160
effects , um , that matched to or

19:24.160 --> 19:26.820
exceed those of our major competitors

19:26.940 --> 19:29.190
in most places . That's the most

19:29.200 --> 19:31.610
functional areas I should say that's

19:31.620 --> 19:34.320
china , um , in some specific areas .

19:34.320 --> 19:36.542
That's Russia And so that's what we use

19:36.542 --> 19:39.800
to drive the investments we make and

19:39.800 --> 19:41.770
I'm very confident in the analytic

19:41.770 --> 19:43.770
soundness of what we put together .

19:45.200 --> 19:47.640
Actually , it's the first time in the

19:47.640 --> 19:49.696
briefing room . So thanks for that .

19:49.696 --> 19:51.640
You're the head of an organization

19:51.640 --> 19:53.696
called the joint resources oversight

19:53.696 --> 19:55.918
console , J Rock , What impact did they

19:55.918 --> 19:58.084
have on this budget ? Are there one or

19:58.084 --> 20:00.196
two items you can point to that where

20:00.196 --> 20:02.029
they shaped the investment , the

20:02.029 --> 20:04.140
procurement of the R and D strategy .

20:04.240 --> 20:06.407
So , you know , one of the things that

20:06.407 --> 20:09.080
the secretary opposed on us and and

20:09.090 --> 20:11.146
emphasized to us was a straight line

20:11.146 --> 20:14.460
connection from strategy to budget .

20:14.840 --> 20:17.062
And I think for the military force then

20:17.062 --> 20:19.173
there's two stops along the way along

20:19.173 --> 20:21.630
that straight line . Right . The first

20:21.640 --> 20:23.770
is the concept of operations . So the

20:23.770 --> 20:25.937
joint warfighting construct across the

20:25.937 --> 20:28.080
four capability , The four functional

20:28.080 --> 20:30.020
battles that include command and

20:30.020 --> 20:32.470
control , contested logistics , fires

20:32.470 --> 20:34.710
and information advantage . And then

20:34.710 --> 20:36.877
there's the requirements fee . So this

20:36.877 --> 20:39.099
gets to your question about about the J

20:39.099 --> 20:41.099
Rock . So I'm pretty confident that

20:41.099 --> 20:43.154
having worked with the vices now and

20:43.154 --> 20:46.430
with the support of of the team in uh ,

20:46.440 --> 20:48.130
in the sector etFS office ,

20:48.130 --> 20:50.352
particularly technology and acquisition

20:50.352 --> 20:52.760
leaders that we have been able to go

20:52.760 --> 20:56.510
from concept to , to requirement within

20:56.510 --> 20:58.566
several strategic directives that we

20:58.566 --> 21:00.840
signed out of the , out of the J ROC

21:00.850 --> 21:03.017
within our portfolio constructs . I'll

21:03.017 --> 21:05.128
give you , I'll give you two examples

21:05.128 --> 21:07.350
One and you'll , you'll get a chance to

21:07.350 --> 21:09.406
hear these later , but I'll give you

21:09.406 --> 21:11.628
two examples and you'll see them across

21:11.628 --> 21:13.850
all four of the functional battles . Um

21:13.850 --> 21:13.670
the first would be about $7 billion

21:13.670 --> 21:22.140
JRC

21:22.140 --> 21:24.520
put out . Um the second would be about

21:24.520 --> 21:25.520
$11 billion

21:25.520 --> 21:35.110
JRC

21:35.120 --> 21:37.287
is having a significant impact , which

21:37.287 --> 21:39.509
is what I'm responsible to help . Thank

21:39.820 --> 21:41.709
you . Thank you very much , sir .

21:41.709 --> 21:43.876
Unfortunately , we're out of time . So

21:43.876 --> 21:45.931
I'd like to thank the deputy and the

21:45.931 --> 21:45.770
vice chairman for coming out today .

21:46.240 --> 21:47.460
Appreciate it . Thanks everybody .