WEBVTT

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Good afternoon everyone . Thank you for

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coming . I'm Christopher Sherwood OsD

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Public Affairs . I would like to remind

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everyone that today's briefing is on

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the department's fiscal year 2023

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budget request speaking with you today

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are under Secretary Defense Controller

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Chief Financial Officer Michael J .

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McCord and Director for Structure

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resource and Assessment with the Joint

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Staff . Vice Admiral Ron boxes . We

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have 25 minutes scheduled for the

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budget overview presentation Followed

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by 15 minutes of questions .

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Attribution is on the record . Prior to

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asking your questions , please state

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your name and your affiliation . I ask

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that you limit your questions to one

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and one follow up so that everyone has

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an opportunity in the room and on the

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phone to ask a question . I will let

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you know when we have uh about five

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minutes left for one last question .

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And with that it's my pleasure to

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introduce the honorable mike McCord and

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Vice Admiral Ron Box will . Good

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afternoon everyone . Thank you chris

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and thank you all for being here today .

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Vice Admiral Box and I will give an

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overview of the budget request and then

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we will take questions after the

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presentation On the first slide . The

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23 budget is directly informed by the

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new National Defense Strategy which was

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delivered to Congress this morning ,

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which in turn builds on the Secretary's

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message to the force and outlines our

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defense priority . The strategy focuses

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on the need to sustain and strengthen

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us deterrence with china as our pacing

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challenge as we've all seen . Russia

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remains an acute threat but china and

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its ambitions remain are our number one

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challenge . The budget supports the

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strategy that directs D . O . D . To

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continue modernizing our forces are

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global posture and operational concepts

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to ensure that our military is capable

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of deterring and defending against

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aggression , particularly in the indo

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pacific and in europe . In this budget

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will make progress all across the board

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from the health of our force and our

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industrial base to the capabilities we

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need for the joint war fight . We

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prioritized in this budget investments

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in foundational capabilities that

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address our challenges from both china

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and Russia . First and foremost , our

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resilience in space and the

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modernization of our nuclear triad ,

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but also in cyber capability . Our use

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of artificial intelligence , the health

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of our force , the health of our supply

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chain and industrial base . And this is

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a theme I'll come back to . It is many

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things are not either Russia or china

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in this budget . On the next slide ,

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let me show you the numbers . The

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budget request for the Department of

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Defense is 773 billion . An increase of

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13.7 billion or 4.1% from the 22

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inactive level and 58 billion or 8%

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from the Fy 22 request . This request

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ensures the department can sustain and

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strengthen integrated deterrence and

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investments that build enduring

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advantages including supporting our

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service members and their families ,

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strengthening our alliances and

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partnerships and preserving our

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technological edge . This request

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reflects the resources to the match our

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current priorities . Specifically our

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focus on china required additional

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investments for both the Navy and the

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Air Force . The army's budget increased

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more modestly , which reflects reflects

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both our strategic priorities and the

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sense of in the end of the mission in

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Afghanistan . And I think this table

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gives you a sense that the budget is

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not just always one third , one third ,

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one third as some , some folks would

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believe . Um So with that , let me let

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me show you just real quickly where the

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history has been . I think all of you

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are probably familiar with this

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starting from the 9 11 attack and that

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kind of post 9 11 era through the

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Budget control act decade that followed

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it . You'll see the growth and the base

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budget , the growth in the so called G

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watt or OCO budget in red . That is now

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wound down as we've exited Afghanistan .

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Again , most of this , most of this

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should be familiar to all of you , but

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just a little scene setter for where

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we've been now to turn to the budget

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before you and let me take a little

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time on this slide . This slide shows

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the difference between the the

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administration's first defense budget

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which was presented a year ago . Uh and

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and the current budget which we're

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submitting today . That difference is

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over $40 billion dollars per year in

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additional resources being requested

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for the Defense Department in this plan

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compared to last year's plan for the

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same fiscal years . This is based on a

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rigorous strategy based review that all

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of us participated in . Led by Deputy

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secretary Hicks and and the vice

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chairman . We looked at the emissions ,

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we looked at things mission by mission

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portfolio by portfolio , made

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recommendations to the secretary .

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Secretary took those to the President

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is what he said we needed . Those

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represent those are represented by the

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red solid bars on top of the blue bars .

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That's about again $20 billion dollars

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minimum per year in additional

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programmatic content on top of that .

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We also re priced things to reflect the

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inflationary pressures that we saw last

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year , both in terms of the goods and

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services we buy from our industrial

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base and the pay and compensation which

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you just discussed with the deputy

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secretary and the vice chairman . So

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about $14 billion

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$6

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billion dollars a year . The very top

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of each bar is in the pay and

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compensation site . And that's military

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pay raise civilian pay rates that are

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higher than was planned last year

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increases in Bh the housing allowance

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increases in B . A . S . The

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subsistence allowance Increases in the

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$15 minimum wage that the president

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directed by executive order which took

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effect this January . Those increases

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are all rolled in there . So combining

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those things , program growth inflation

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in in the goods and services side and

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higher compensation costs . The

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secretary took those three elements to

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the President and got his support for

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all of that and that represents the

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increase from this year to last year .

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So we really we really value that these

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the partnership that we had with both A

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and B . And and the White House to work

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through these issues in this way and

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get the additional resources we believe

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we need on the next slide . Just a

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little drill down a little bit more on

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fy 20 to fy 23 we had a $715 billion

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request as you know , that sat there

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for a long time was not finally dealt

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with by Congress until about 23 weeks

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ago . Congress did end up adding funds

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that was not known to us at the time

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that we finished our budget . What they

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would do or not do in the preceding

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months . We had and you'll see an

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orange bar there , a variety of

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supplemental funding requests to help

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our afghan refugee partners

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operationalize . Welcome . That was

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about $6.5 billion and another $6.5

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billion recently enacted in the omnibus

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funding bill for Ukraine assistance to

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Ukraine as well as our own uh more more

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robust posture in europe right now . So

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there were some one time things that

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may may not be repeated In 23 that were

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in 22 . Uh but again , you can see the

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growth here uh a substantial growth

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from from what was requested for the

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base budget from the one year to the

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next year . And even a substantial

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request from what was funded last year

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to what was to what was enacted this

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year pivoting now quickly to end

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strength . I don't want to dwell and

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this is necessarily be , I know the

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services are going to follow us army ,

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Navy air force and they'll be able to

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talk in more detail about this . Many

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of you have probably heard that the

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army and strength is coming off of the

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405,000 figure for the active force

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that they have been shooting at for a

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couple of years . Given a variety of

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factors include including the very low

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unemployment rate right now and the

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declining propensity to serve that . I

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think several services are seeing the

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army felt it was not productive to try

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and chase that number . Uh They've

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redirected those resources toward the

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reserve component mobilization in

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particular and the overall health of

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the army , There's a slight decrease in

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the Navy also with retirement of some

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ships that we can discuss later . But

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overall you're seeing a very flat

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picture by the , for the most part of

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where we expect to end this year to

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where we expect and next next year less

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than a 5000 person change across the

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force . And my message here is that uh

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the increase in the resources that was

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described on the last slide , big

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picture wise and will be discussed in

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more detail going forward is not about

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making the force bigger . That is not

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what we've , what we what our review

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concluded that we needed to do . We're

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looking at making the force more

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capable . Alright , so now to turn to

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to our secretary's priorities and again

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these these are reflected both in our

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budget and in the national Defense

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strategy which was which was briefed to

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Congress and I believe delivered to

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Congress in classified form this

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morning . We have four missions here

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which I think you all can can read here

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to defend the homeland to deter

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strategic attacks , prevailing contract

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conflict and build a resilient defense

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ecosystem to support the force . The

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Deputy secretary just discussed the

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three ways that we're going to do that

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those three those three ways or methods

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are going to be then reflected in the

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next part of our briefing as as Admiral

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Box . All talks about the the

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Integrator deterrence different

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portions by different mission set of

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that will come back then on campaigning

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and enduring advantage to just briefly

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explain those again . Integrator

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deterrence very much exemplified by

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what what NATO is doing today is using

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all the tools in the department as well

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as working with inter agency , working

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with partner to achieve the effects

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that you want , campaigning refers to

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being intentional about the actions you

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take in your presence and your posture .

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All the things that you do on a more

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day to day basis , especially in the

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combatant commands to achieve your

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strategic ends building and learning

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advantage which again I know the vice

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chairman just discussed , talks about

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the health of our force first and

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foremost those who serve but also our

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industrial base , our partners , the

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whole the whole system that allows us

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to do what we do . So with that let me

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turn it over to the vice admiral boxes

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to start talking about some of the

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pillars of integrated deterrence .

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Thank you Mr McCord . Good afternoon .

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The fy 23 president budget request of

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276 billion in procurement . Research

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and development is the largest in the

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history of the department . We invest

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over $56 billion to develop and field

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lethal air forces . We continue to feel

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the mix of 4th 5th generation fighter

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aircraft that enabled the joint force

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to establish air superiority . When and

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where the nation needs our request

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Procure 61 new F 30 fives and 21 F 15 E .

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X fighters . Additionally department

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invests $1.7 billion to develop next

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generation air dominance and that

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outpaces our competitors in the high

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end conflict . Also we continue the

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recapitalization of our tanker fleet by

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procuring 15 new KC 46 tankers . This

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budget invests $28 billion for

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shipbuilding . To procure nine battle

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force ships to include two destroyers ,

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one frigate and two Virginia class

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submarines . We also invest over $6

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billion to develop future expeditionary

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marine force . And with congressional

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support we continue the revitalization

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of the sealift fleet by purchasing two

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used vessels . Public shipyards are a

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vital component of our strategy and we

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are making a once in a generation

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investment of $1.7 billion

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FY

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2022 public shipyard investment . The

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23 budget also invests $750 million

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dollars to enhance our submarine

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industrial base in support of Columbia

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and Virginia class programs . We invest

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over $12 billion dollars to provide our

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soldiers with improved firepower ,

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maneuver and commanding control . The

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department's feeling three long range

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hypersonic batteries and four mid range

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capability batteries over the next five

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years . And we're investing in upgraded

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Apache and Blackhawk helicopters and

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counter small unmanned aerial systems

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to support army and joint solutions .

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This budget also invests in artificial

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intelligence and machine learning

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enabled battle management systems to

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improve soldier lethality through

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machine man machine teaming our

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investments in multi domain platforms ,

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resilient communications systems and

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ground air and maritime delivered fires

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will increase the lethality of our

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joint force and enhance our ability to

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deter threats in all domains .

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Nuclear weapons continue to provide

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foundational strategic deterrent

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effects that no other element of U . S .

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Military power can replace . Strategic

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deterrence is foundational to every

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mission . The US our allies and

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partners execute a safe , secure ,

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effective and credible . Nuclear

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deterrent is the ultimate backstop to

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protect the american homeland and our

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allies . Today's nuclear enterprises

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safe , secure , effective and credible .

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However , in order for the United

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States to sustain this level of nuclear

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deterrence capability , we must

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continue to the modernization of key

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systems that are beyond their original

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design lives This budget builds on

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previous modernization gains and invest

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over $34 billion dollars to

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simultaneously upgrade all three legs

12:30.756 --> 12:32.978
of the nuclear tried and vital elements

12:32.978 --> 12:34.922
of the nuclear command control and

12:34.922 --> 12:36.811
communication system . The budget

12:36.811 --> 12:38.756
continues Columbia class ballistic

12:38.756 --> 12:40.700
missile , submarine production and

12:40.700 --> 12:40.650
targeted schedule , risk reduction

12:40.650 --> 12:42.928
activities that enable a 2028 delivery .

12:43.250 --> 12:45.250
It funds the ground-based strategic

12:45.250 --> 12:47.720
deterrent for fielding in 2029 and it

12:47.720 --> 12:49.942
feels to be 21 to replace aging bombers

12:49.942 --> 12:52.109
in the mid-20s . The three legs of the

12:52.109 --> 12:53.831
nuclear triad provide mutually

12:53.831 --> 12:55.609
supporting capabilities and our

12:55.609 --> 12:57.776
investment to modernize the triad will

12:57.776 --> 12:59.942
help ensure these that nuclear weapons

12:59.942 --> 13:01.776
continue to deter aggression and

13:01.776 --> 13:01.650
protect our allies and partners .

13:05.940 --> 13:08.051
Our top defense priority is to defend

13:08.051 --> 13:09.996
the homeland . Unfortunately , our

13:09.996 --> 13:11.551
adversaries are feeling new

13:11.551 --> 13:13.718
capabilities that increase the risk of

13:13.718 --> 13:15.940
missile attack on the United States and

13:15.940 --> 13:15.490
we must invest today to counter these

13:15.490 --> 13:17.980
threats . The budget invests over $24

13:17.980 --> 13:20.820
billion us missile defense capabilities

13:20.860 --> 13:23.138
to defend the Homeland deployed forces ,

13:23.138 --> 13:24.860
allies and partners against an

13:24.860 --> 13:26.693
increasingly complex adversarial

13:26.693 --> 13:28.940
missile threat . The budget develops

13:28.940 --> 13:30.940
the next generation interceptor for

13:30.940 --> 13:33.162
homeland defense . It also supports the

13:33.162 --> 13:35.218
existing ground based interceptors ,

13:35.218 --> 13:37.218
upgrades and expands the network of

13:37.218 --> 13:39.384
land , sea and space based sensors and

13:39.384 --> 13:41.607
invests in advanced technology programs

13:41.607 --> 13:43.662
to address complex missile threats .

13:43.662 --> 13:45.884
Our budget invests $892 million dollars

13:45.884 --> 13:47.773
for the defense of Guam including

13:47.773 --> 13:49.940
improved missile defense , command and

13:49.940 --> 13:52.051
control capabilities , radar capacity

13:52.051 --> 13:54.218
and new construction . The budget also

13:54.218 --> 13:56.273
includes 133 million in base defense

13:56.273 --> 13:58.107
enhancements throughout the Indo

13:58.107 --> 14:00.107
Pacific region . Additionally , the

14:00.107 --> 14:02.051
budget will continue to strengthen

14:02.051 --> 14:04.273
regional missile defense by fielding an

14:04.273 --> 14:04.090
eighth terminal high altitude area

14:04.090 --> 14:06.310
defense thad battery and integrating

14:06.310 --> 14:08.366
this interceptor capability into the

14:08.366 --> 14:10.254
Army's integrated air and missile

14:10.254 --> 14:12.366
defense battle command system I BCS .

14:12.640 --> 14:14.473
This budget also fields improved

14:14.473 --> 14:16.418
patriot missiles and additional US

14:16.418 --> 14:18.473
short range air defense battalions .

14:21.540 --> 14:23.707
The 23 budget includes over $7 billion

14:23.707 --> 14:29.150
us

14:29.150 --> 14:31.150
forces to hold their adversaries at

14:31.150 --> 14:33.483
risk from operationally relevant ranges .

14:33.483 --> 14:35.150
This includes the fielding of

14:35.150 --> 14:36.872
hypersonic in land air and sea

14:36.872 --> 14:39.094
platforms . The army will feel the long

14:39.094 --> 14:40.983
range hypersonic weapon from land

14:40.983 --> 14:43.680
batteries in 2023 and in 2025 the Navy

14:43.680 --> 14:45.569
will feel the conventional prompt

14:45.569 --> 14:47.736
strike CPS , hypersonic weapon onboard

14:47.736 --> 14:50.260
the DDG 1000 class warship . This

14:50.260 --> 14:52.482
budget completes prototyping of the Air

14:52.482 --> 14:54.371
Force air launched rapid response

14:54.371 --> 14:56.038
weapon , arrow and fields the

14:56.038 --> 14:58.204
hypersonic Air launched cruise missile

14:58.204 --> 15:00.570
hack him on the F- 15 and 2027 . In

15:00.570 --> 15:02.792
addition to hypersonic weapons , the 23

15:02.792 --> 15:05.180
budget procured more than 3500 lethal

15:05.180 --> 15:07.236
subsonic missiles over the next five

15:07.236 --> 15:09.550
years . Our mix of hypersonic and

15:09.550 --> 15:11.606
subsonic offensive fires will enable

15:11.606 --> 15:13.494
the joint force to hold adversary

15:13.494 --> 15:15.439
forces at risk and achieve maximum

15:15.439 --> 15:17.328
deterrent effect against the pure

15:17.328 --> 15:21.320
adversary space capabilities are a

15:21.320 --> 15:23.487
critical component of U . S . Military

15:23.487 --> 15:25.542
power , china and Russia continue to

15:25.542 --> 15:27.598
field weapons to deny or destroy our

15:27.598 --> 15:29.264
space capabilities , lasers ,

15:29.264 --> 15:31.320
electronic warfare grappling systems

15:31.320 --> 15:33.542
and direct action projectiles are a few

15:33.542 --> 15:35.431
technologies our adversaries have

15:35.431 --> 15:37.598
fielded are developing to blind jam or

15:37.598 --> 15:39.709
destroy US space systems . The budget

15:39.709 --> 15:43.530
invests over $27 billion us space

15:43.530 --> 15:45.800
capabilities towards resilient space

15:45.800 --> 15:47.911
architectures that are able to defeat

15:47.911 --> 15:49.578
adversary attacks and provide

15:49.578 --> 15:51.633
continuous war fighting capabilities

15:51.633 --> 15:53.689
supporting key missions . Our budget

15:53.689 --> 15:55.800
improves missile warning capabilities

15:55.800 --> 15:57.578
that detect advanced threats by

15:57.578 --> 16:00.200
investing $4.7 billion space-based

16:00.200 --> 16:01.811
missile warning and tracking

16:01.811 --> 16:03.811
architecture along with a resilient

16:03.811 --> 16:06.089
next generation ground control segment .

16:06.089 --> 16:09.110
We also invest $1.8 billion gps follow

16:09.110 --> 16:11.950
on satellites and systems that hardened

16:11.950 --> 16:14.117
position navigation and timing signals

16:14.117 --> 16:16.228
to naval operations in a GPS degraded

16:16.228 --> 16:18.610
environment . Finally , the department

16:18.610 --> 16:20.832
invests $1.6 billion dollars to develop

16:20.832 --> 16:22.990
secure , survivable and jam resistant

16:22.990 --> 16:25.046
satellite communication capabilities

16:25.046 --> 16:27.212
and funds six space launch vehicles to

16:27.212 --> 16:29.560
assure to provide assured access into

16:29.560 --> 16:33.240
space in the cyber domain .

16:33.260 --> 16:35.260
Our prosperity and military success

16:35.260 --> 16:37.427
depends on defending our networks from

16:37.427 --> 16:39.538
malicious action from adversaries and

16:39.538 --> 16:41.649
non state actors . The budget invests

16:41.649 --> 16:43.260
over $11 billion to continue

16:43.260 --> 16:45.316
modernization of our network defense

16:45.316 --> 16:47.427
capabilities resulting in more secure

16:47.427 --> 16:49.649
and resilient . D . O . D . Information

16:49.649 --> 16:51.760
network and defense industrial base .

16:51.760 --> 16:53.649
Our investments improve the cyber

16:53.649 --> 16:55.760
technology that will protect our next

16:55.760 --> 16:55.400
generation weapons systems from

16:55.400 --> 16:57.630
intrusion and attack well are also

16:57.630 --> 16:59.810
embedding zero trust architecture into

16:59.810 --> 17:01.810
defense networks for more selective

17:01.810 --> 17:04.440
user credential verification . We're

17:04.440 --> 17:06.384
improving cybersecurity within the

17:06.384 --> 17:08.162
defense industrial base through

17:08.162 --> 17:09.773
information sharing enhanced

17:09.773 --> 17:11.829
cybersecurity certifications and the

17:11.829 --> 17:13.551
expansion of D O . D initiated

17:13.551 --> 17:15.496
cybersecurity pilot services . Our

17:15.496 --> 17:17.662
cyber space investments will fund five

17:17.662 --> 17:19.884
additional cyber mission force teams to

17:19.884 --> 17:21.718
hold targets at risk and defends

17:21.718 --> 17:24.130
against malicious actors . We're also

17:24.130 --> 17:26.241
investing to improve readiness of the

17:26.241 --> 17:28.352
nation's cyber force by funding cyber

17:28.352 --> 17:30.574
ranges to enable training and exercises

17:30.574 --> 17:32.630
in the cyber domain . Finally , this

17:32.630 --> 17:34.852
budget lays the foundation for us cyber

17:34.852 --> 17:36.908
com to have ownership of the mission

17:36.908 --> 17:38.852
and resources of the cyber mission

17:38.852 --> 17:41.019
cyber mission force beginning in fy 24

17:41.019 --> 17:44.870
is directed in the 22 . Nd a Turning

17:44.870 --> 17:47.037
now to that second pillar that we that

17:47.037 --> 17:48.814
we talked about a minute ago of

17:48.814 --> 17:50.592
campaigning . 2nd pillar of the

17:50.592 --> 17:54.190
strategy we have in this budget

17:54.940 --> 17:56.829
I'm going to call them frameworks

17:56.829 --> 17:58.996
frameworks not funds that are familiar

17:58.996 --> 18:01.051
to you by now . I expect the pacific

18:01.051 --> 18:00.920
deterrence initiative framework . The

18:00.920 --> 18:02.642
european deterrence initiative

18:02.642 --> 18:04.698
framework . We continue with both of

18:04.698 --> 18:07.370
those this year we have over $6 billion

18:07.370 --> 18:09.092
and for the pacific deterrence

18:09.092 --> 18:11.037
initiative in particular , some of

18:11.037 --> 18:13.037
which we've discussed in particular

18:13.037 --> 18:15.203
already . The Defense of Guam is a big

18:15.203 --> 18:17.259
one . Also investments in integrated

18:17.259 --> 18:19.259
fires Many of these areas overlap .

18:19.259 --> 18:21.810
Integrated Fire's hypersonic are

18:21.820 --> 18:24.042
central of the pacific strategy as well

18:24.042 --> 18:26.050
as the Defense of Guam is on the

18:26.050 --> 18:27.772
european side . We continue to

18:27.772 --> 18:29.883
recognize Russia as an acute threat .

18:29.883 --> 18:31.760
We continue to to work with our

18:31.760 --> 18:34.910
partners in NATO on on posture on

18:34.910 --> 18:37.360
investments that support both the

18:37.360 --> 18:39.471
broader NATO alliance as well as well

18:39.471 --> 18:42.080
as Ukraine . We have over $500,000,005

18:42.080 --> 18:44.080
million to bolster interoperability

18:44.080 --> 18:46.136
activities in europe and we continue

18:46.136 --> 18:47.913
the Ukraine security assistance

18:47.913 --> 18:49.802
initiative in this budget at $300

18:49.802 --> 18:51.747
million . We also have significant

18:51.747 --> 18:53.913
security cooperation activities in the

18:53.913 --> 18:56.930
european region . You will see also , I

18:56.930 --> 18:59.400
think fairly soon from the pecan

18:59.400 --> 19:01.567
commander . Indo pacom Commander , his

19:01.567 --> 19:03.511
12 42 report which will track very

19:03.511 --> 19:05.622
closely with everything we're talking

19:05.622 --> 19:07.900
about here On the next slide readiness ,

19:07.900 --> 19:10.122
campaigning not really possible without

19:10.122 --> 19:12.690
without an active ready forces . We we

19:12.690 --> 19:14.910
invest substantial resources and

19:14.910 --> 19:16.799
readiness this year as the Deputy

19:16.799 --> 19:19.790
Secretary said about $135 billion . We

19:19.790 --> 19:21.957
have a strong readiness posture across

19:21.957 --> 19:24.068
the joint force in this budget . Uh ,

19:24.068 --> 19:27.130
On on both the operating side steaming

19:27.130 --> 19:29.352
hours flying hours , ground up tempo as

19:29.352 --> 19:31.574
well as the depot maintenance side that

19:31.574 --> 19:33.686
underwrites that we believe we have a

19:33.686 --> 19:35.797
strong picture on both uh both fronts

19:35.797 --> 19:37.686
to have already adaptable force .

19:39.440 --> 19:41.273
Another important priority . The

19:41.273 --> 19:43.162
secretary now moving to the third

19:43.162 --> 19:45.440
category , building enduring advantage .

19:45.440 --> 19:47.662
Again , this is paying attention to the

19:47.662 --> 19:47.530
institution , our institution , the

19:47.530 --> 19:49.808
defense , industrial based institution ,

19:49.808 --> 19:51.863
all the things that that give us the

19:51.863 --> 19:54.100
capability that we draw on every day .

19:54.110 --> 19:58.040
Um , first and foremost ,

19:58.050 --> 20:00.161
the force itself as the Vice Chairman

20:00.161 --> 20:02.610
was describing uh health of the force

20:02.610 --> 20:05.870
number one issue probably in the last

20:05.870 --> 20:08.092
year . Two on this front has been , has

20:08.092 --> 20:10.037
been sexual assault and harassment

20:10.037 --> 20:12.203
prevention , big initiative in the NBA

20:12.203 --> 20:14.314
to finally finally come to grips with

20:14.314 --> 20:16.481
that issue over many years of debate .

20:16.481 --> 20:18.426
Uh , we were unable to move out as

20:18.426 --> 20:20.648
quickly as we would have liked to in fy

20:20.648 --> 20:22.759
22 because we were under a continuing

20:22.759 --> 20:22.640
resolution for months and months and

20:22.640 --> 20:24.362
months unable to undertake new

20:24.362 --> 20:26.418
activities , but we're going to move

20:26.418 --> 20:28.540
out strongly in the Fy 23 budget now

20:28.540 --> 20:30.651
that we have funding and authority in

20:30.651 --> 20:32.762
place from Congress to get started in

20:32.762 --> 20:34.929
fy 22 on this . On the front . This is

20:34.929 --> 20:37.040
hiring new people reforming the whole

20:37.040 --> 20:39.630
paradigm , hiring additional people

20:39.640 --> 20:42.480
across the both the counseling space

20:42.480 --> 20:45.600
the military justice side . In addition ,

20:45.620 --> 20:47.731
we continue to focus on the diversity

20:47.731 --> 20:49.676
equity inclusion to make sure that

20:49.676 --> 20:51.620
everybody is serving to their full

20:51.620 --> 20:53.342
potential in this force . Both

20:53.342 --> 20:55.564
important priorities of the secretary ,

20:56.140 --> 20:58.251
equally important is paying attention

20:58.251 --> 21:00.430
to the workforce . We need growing our

21:00.430 --> 21:03.610
talent building , resilient force . We

21:03.610 --> 21:06.330
have economic security forces I know

21:06.330 --> 21:08.497
was discussed just just before we came

21:08.497 --> 21:10.608
out here , we are taking advantage of

21:10.608 --> 21:12.552
that new authority and the defense

21:12.552 --> 21:14.330
authorization bill for the most

21:14.330 --> 21:16.274
vulnerable portion of our force to

21:16.274 --> 21:18.497
address economic insecurity . With with

21:18.497 --> 21:20.497
the new basic needs allowance , The

21:20.497 --> 21:22.663
largest pay raise in 20 years for both

21:22.663 --> 21:24.830
the military and civilian force 4.6% .

21:24.830 --> 21:27.180
We also are implementing the the $15

21:27.180 --> 21:29.291
minimum wage executive order from the

21:29.291 --> 21:31.540
president for both our our workforce

21:31.540 --> 21:33.484
ourselves , which has a relatively

21:33.484 --> 21:35.651
small number of people affected inside

21:35.651 --> 21:37.651
our workforce and the larger number

21:37.651 --> 21:37.110
that would be affected in our

21:37.110 --> 21:39.840
contractor workforce and as also was

21:39.840 --> 21:41.896
discussed by the deputy investing in

21:41.896 --> 21:44.560
childcare fee assistance things to help

21:44.560 --> 21:46.616
address that need something . I know

21:46.616 --> 21:48.680
that was a lot of families felt with

21:48.680 --> 21:50.513
the disruption of covid placed a

21:50.520 --> 21:53.050
particular stress on that segment of

21:53.050 --> 21:56.560
our of our workforce and that segment

21:56.560 --> 21:58.790
of our of our needs of our benefits

21:58.790 --> 22:01.540
package . Now moving to the next area

22:01.540 --> 22:03.762
sort of pivoting from the people's side

22:03.762 --> 22:05.540
to the to the technology side ,

22:05.540 --> 22:07.707
innovation has been a huge priority of

22:07.707 --> 22:09.818
Deputy secretary hicks in this budget

22:09.818 --> 22:12.040
and in this process and in the way that

22:12.040 --> 22:14.180
she runs the organization as as was

22:14.180 --> 22:16.402
described , we have the largest R and D

22:16.402 --> 22:18.236
budget ever within that , a very

22:18.236 --> 22:20.458
healthy SmT budget . We have some areas

22:20.458 --> 22:22.569
that we're going to discuss in future

22:22.569 --> 22:24.847
slides in areas like micro electronics ,

22:24.847 --> 22:27.069
also artificial intelligence , not just

22:27.069 --> 22:29.069
on the funding side with artificial

22:29.069 --> 22:30.569
intelligence . Also on the

22:30.569 --> 22:32.402
organizational side , the Deputy

22:32.402 --> 22:34.513
secretary has pulled together a group

22:34.513 --> 22:36.680
of disparate efforts that we had maven

22:36.680 --> 22:38.736
effort in the combatant commanders .

22:38.736 --> 22:40.624
The Joint artificial Intelligence

22:40.624 --> 22:42.847
center here , Defense Digital Service ,

22:42.847 --> 22:44.569
the advantage platform that my

22:44.569 --> 22:46.624
organization developed have all been

22:46.624 --> 22:48.847
merged together in the Chief Digital or

22:48.847 --> 22:51.069
an Ai office that will allow us to have

22:51.069 --> 22:53.291
a better unity , unity of effort in the

22:53.291 --> 22:55.402
artificial intelligence space . We're

22:55.402 --> 22:57.569
also continuing to to work on the five

22:57.569 --> 22:59.680
in the 5G area , very important areas

22:59.680 --> 23:01.736
we operate around around the country

23:01.736 --> 23:03.569
around the world . And finally ,

23:03.569 --> 23:05.458
innovation goes hand in hand with

23:05.458 --> 23:07.900
experimentation experimentation . Some

23:07.900 --> 23:09.789
of you have heard of the deputies

23:09.789 --> 23:11.789
initiative called the Rapid Defense

23:11.789 --> 23:13.844
experimentation reserve or raider is

23:13.844 --> 23:15.900
not a fund , it's not a line item in

23:15.900 --> 23:18.122
the budget and that's why we don't have

23:18.122 --> 23:18.110
a dollar figure there , but it is a

23:18.110 --> 23:21.060
process , a tool to help us bring

23:21.060 --> 23:23.004
together joint experimentation and

23:23.004 --> 23:25.227
accelerate joint experimentation across

23:25.227 --> 23:27.640
the services . Finally , on industrial

23:27.640 --> 23:29.418
base again , we've talked about

23:29.418 --> 23:31.640
industrial base being an important part

23:31.640 --> 23:33.807
of our of our whole team here . We all

23:33.807 --> 23:36.029
recognize that we don't develop our own

23:36.029 --> 23:38.251
weapon systems here . We we rely on our

23:38.251 --> 23:37.860
private sector partners to do that

23:39.440 --> 23:41.496
support the covid , covid and supply

23:41.496 --> 23:43.496
chain impacts of the last two years

23:43.496 --> 23:45.829
really have have really heightened this .

23:45.829 --> 23:47.607
I think in everybody's mind the

23:47.607 --> 23:49.662
importance of the supply chain , the

23:49.662 --> 23:51.551
fragility . In some cases we paid

23:51.551 --> 23:53.107
special attention to this .

23:53.107 --> 23:55.273
Microelectronic , probably the biggest

23:55.273 --> 23:57.440
investment that we make in this budget

23:57.440 --> 23:59.496
in this area . As many of you know ,

23:59.496 --> 23:59.060
there is also very important

23:59.060 --> 24:01.060
legislation pending on Capitol Hill

24:01.060 --> 24:03.282
that would that would address this area

24:03.282 --> 24:05.504
this area . But this is a D O . D piece

24:05.504 --> 24:07.171
particularly of this on micro

24:07.171 --> 24:09.338
electronics . We have a big investment

24:09.338 --> 24:09.140
in the R and D and procurement , both

24:09.140 --> 24:11.029
in this as the deputy mentioned ,

24:11.029 --> 24:13.990
casting and forging energy and storage ,

24:14.000 --> 24:16.600
uh kinetic capabilities , energetic and

24:16.600 --> 24:18.670
also strategic and critical material

24:18.670 --> 24:21.590
investments . Um , in addition to that

24:21.600 --> 24:23.767
these kind of broader industrial based

24:23.767 --> 24:25.433
things that apply to multiple

24:25.433 --> 24:27.156
technologies . We've also paid

24:27.156 --> 24:29.267
particular attention to the submarine

24:29.267 --> 24:31.322
industrial base , which is something

24:31.322 --> 24:30.980
that is , you know , it takes you a

24:30.980 --> 24:33.340
long time to build skills if you lose

24:33.340 --> 24:35.260
them there . Uh we're we've got

24:35.260 --> 24:37.149
investments in the health of that

24:37.149 --> 24:39.610
workforce also um continuing to work

24:39.610 --> 24:42.030
with with , you know , tried and true

24:42.040 --> 24:45.380
uh to um sorry tried and true

24:45.380 --> 24:48.900
organizations like DARPA . Finally on

24:49.040 --> 24:52.480
re prioritization . This is something

24:52.480 --> 24:54.258
that department has been asking

24:54.258 --> 24:56.369
Congress in different forms , but the

24:56.369 --> 24:58.536
consistent messaging over the years is

24:58.536 --> 25:00.591
there are there are some things that

25:00.591 --> 25:02.702
are less capable , less responsive to

25:02.702 --> 25:04.869
our future needs that we need to start

25:04.869 --> 25:07.091
moving away from and you'll see some of

25:07.091 --> 25:06.800
these things in the budget on the Navy

25:06.800 --> 25:09.370
side Decommissioning some of the LCS

25:09.370 --> 25:11.430
ships that have had issues with both

25:11.430 --> 25:13.597
their mission packages or with or with

25:13.597 --> 25:15.708
their combining gears or both in some

25:15.708 --> 25:18.310
cases . Also some some cruisers on the

25:18.310 --> 25:20.480
Air Force to begin a path to , to move

25:20.480 --> 25:22.630
away from the A 10 over the next five

25:22.630 --> 25:25.810
or six years . Also the E three and the

25:25.810 --> 25:27.930
E eight and so also some of the older

25:27.930 --> 25:30.130
tankers now that we see the KC 46

25:30.130 --> 25:32.297
getting more capable again , these are

25:32.297 --> 25:34.019
things the department has been

25:34.019 --> 25:36.074
consistent across the administration

25:36.074 --> 25:35.480
saying we need to move in this

25:35.480 --> 25:38.410
direction and we continue to make that

25:38.410 --> 25:41.180
effort in this budget . On the climate

25:41.180 --> 25:43.402
side , this is this is something that I

25:43.402 --> 25:45.291
think was just discussed when the

25:45.291 --> 25:47.513
deputy was out here . This is something

25:47.513 --> 25:49.736
very consistent with our messaging last

25:49.736 --> 25:49.580
year . We're looking at both the

25:49.580 --> 25:52.660
installation side climate resilience of

25:52.660 --> 25:54.771
our of our our facilities which again

25:54.771 --> 25:57.660
is something that given the repeated

25:57.670 --> 26:00.150
more patterns of extreme weather there

26:00.150 --> 26:02.206
there would be , we would be foolish

26:02.206 --> 26:04.428
not to make sure that we are doing what

26:04.428 --> 26:06.094
we can to build that into our

26:06.094 --> 26:08.317
consideration when we build or renovate

26:08.317 --> 26:10.483
facilities and on the operational side

26:10.483 --> 26:12.706
we have and you'll see here some of the

26:12.706 --> 26:14.872
science and technology and operational

26:14.872 --> 26:16.872
energy initiatives . These are four

26:16.872 --> 26:18.650
things that things that move in

26:18.650 --> 26:20.650
particular . You know , both ground

26:20.650 --> 26:22.872
vehicles . We've got some efforts going

26:22.872 --> 26:22.200
across the fit up on the , on the air

26:22.200 --> 26:24.380
side as well . Important point I want

26:24.380 --> 26:27.840
to make here is that not only will

26:27.840 --> 26:30.260
these have benefits perhaps in cost

26:30.260 --> 26:32.660
savings in in reducing our logistics

26:32.660 --> 26:34.827
footprint to the extent that we can be

26:34.827 --> 26:37.049
more creative here were also being very

26:37.049 --> 26:39.271
mindful and we talked about this in our

26:39.271 --> 26:41.271
internal processes of moving in the

26:41.271 --> 26:43.216
direction that industry is already

26:43.216 --> 26:45.271
moving . So whether it's things like

26:45.271 --> 26:47.438
batteries or the type of vehicles that

26:47.438 --> 26:46.530
industry are making , we don't want to

26:46.530 --> 26:48.752
be rooted in the past while industry is

26:48.752 --> 26:50.863
moving on , we want to be moving with

26:50.863 --> 26:53.086
them on that front . That's that's part

26:53.086 --> 26:55.086
of our what we call climate in this

26:55.086 --> 26:57.308
area . On the facility side , we have a

26:57.308 --> 26:58.863
$12 billion dollar military

26:58.863 --> 27:01.330
construction budget . Very significant

27:01.340 --> 27:03.451
investment in our shipyards which has

27:03.451 --> 27:05.562
been the Admiral box . I talked about

27:05.940 --> 27:08.920
again a once in a generation effort to

27:08.920 --> 27:11.087
invest significant funds in both in in

27:11.087 --> 27:13.850
this case , both in in in Portsmouth

27:13.850 --> 27:15.961
Maine and in Pearl harbor are the big

27:16.040 --> 27:18.320
areas in this year's budget and

27:18.320 --> 27:20.376
something that's been in the news in

27:20.376 --> 27:22.209
particular . We also have a very

27:22.209 --> 27:22.060
healthy sustainment budget by the way

27:22.060 --> 27:24.227
across the budget . In addition to the

27:24.227 --> 27:26.227
new construction budget , something

27:26.227 --> 27:28.338
that's been in the news substantially

27:28.338 --> 27:28.310
over the past couple of months , the

27:28.310 --> 27:31.170
Redhill fuel storage facility in Hawaii .

27:32.140 --> 27:34.362
You probably saw that in the continuing

27:34.362 --> 27:36.362
resolution and again in the omnibus

27:36.362 --> 27:38.362
funding bill . Congress put funding

27:38.362 --> 27:40.362
significant funding in both in both

27:40.362 --> 27:42.584
those bills . At our request , totaling

27:42.584 --> 27:44.751
approximately $1 billion in fy 22 . We

27:44.751 --> 27:46.862
request another billion dollars in fy

27:46.862 --> 27:49.320
23 in a flexible fund that would allow

27:49.320 --> 27:51.431
us to move in different directions to

27:51.431 --> 27:53.520
address the dispersal of fuel to

27:53.520 --> 27:56.470
address where the litigation and the

27:56.470 --> 27:58.526
negotiations permit to address start

27:58.526 --> 28:00.470
addressing remediation to continue

28:00.470 --> 28:02.581
addressing the near term needs of the

28:02.581 --> 28:04.637
families , whether if there's anyone

28:04.637 --> 28:06.692
still displaced from their housing ,

28:06.692 --> 28:08.859
the water filtering those . So there's

28:08.859 --> 28:11.026
kind of the near term the far term and

28:11.026 --> 28:13.080
the remediation this funding could

28:13.080 --> 28:15.024
involve but primarily the navy but

28:15.024 --> 28:17.080
possible , possibly also the Defense

28:17.080 --> 28:19.302
Logistics Agency . So we expect to work

28:19.302 --> 28:21.358
with Congress as they , as they work

28:21.358 --> 28:23.470
through this budget process to taylor

28:23.470 --> 28:25.637
and and to maybe shape this fund . But

28:25.637 --> 28:27.692
we but we we have a very , I think ,

28:27.692 --> 28:29.803
visible commitment to the secretary's

28:29.803 --> 28:31.803
commitment to do the right thing by

28:31.803 --> 28:31.560
both our military families and our

28:31.560 --> 28:33.782
neighbors in Hawaii represented by this

28:33.782 --> 28:36.280
billion dollar investment . So in

28:36.280 --> 28:39.000
closing here again , the budgets

28:39.000 --> 28:41.111
grounded the new strategy , we have a

28:41.111 --> 28:43.056
strong strategy . We have a strong

28:43.056 --> 28:45.111
budget . We have the three the three

28:45.111 --> 28:47.111
ways we're getting there that we've

28:47.111 --> 28:46.870
talked about integrated deterrence

28:46.870 --> 28:49.250
campaigning building buildings enduring

28:49.250 --> 28:53.100
advantage . We remain focused on china .

28:53.110 --> 28:55.054
We had no illusions about Putin as

28:55.054 --> 28:57.221
anything but an adversary . But if you

28:57.221 --> 28:59.332
look long term big picture , whatever

28:59.332 --> 29:01.554
you wanna call it , china still has the

29:01.554 --> 29:03.888
economic power of the military power to ,

29:03.888 --> 29:06.110
to really be our primary challenge . We

29:06.110 --> 29:08.332
are not taking our off that ball in the

29:08.332 --> 29:10.554
strategy or in the budget , but what we

29:10.554 --> 29:12.721
did do and I'll come back to a point I

29:12.721 --> 29:14.980
made earlier , we paid the most

29:14.980 --> 29:16.813
attention to the things that are

29:16.813 --> 29:18.924
foundational like space and cyber and

29:18.924 --> 29:20.869
the industrial base that are not a

29:20.869 --> 29:23.202
china investment or a Russia investment .

29:23.202 --> 29:25.424
They're an investment in our capability

29:25.424 --> 29:27.647
across the board . They're foundational

29:27.647 --> 29:27.300
in all the directions we want . Might

29:27.300 --> 29:30.700
want to move . We looked at both the

29:30.700 --> 29:32.756
health of of our of our war fighters

29:32.756 --> 29:34.867
and health of our ecosystem in this .

29:34.867 --> 29:38.310
Um , again , this , this budget is a

29:38.310 --> 29:40.980
strong strategy , strong budget and uh ,

29:40.990 --> 29:42.990
we were , we look forward to taking

29:42.990 --> 29:45.460
your questions . I think we have a link

29:45.460 --> 29:47.404
here for further information . The

29:47.404 --> 29:49.349
information should be being posted

29:49.349 --> 29:51.516
today . I think I've described as some

29:51.516 --> 29:53.627
of you that the budget materials will

29:53.627 --> 29:55.849
be posted today , but some of them will

29:55.849 --> 29:57.750
be updated later to include Fy 22

29:57.750 --> 29:59.972
information as that becomes available .

29:59.972 --> 30:01.917
But all the Fy 23 information that

30:01.917 --> 30:04.950
people need is being posted today

30:07.640 --> 30:09.640
and we'll start with the phone line

30:09.640 --> 30:12.550
leader , are you on the line ? Yes , I

30:12.550 --> 30:16.070
am , Good afternoon . I just I wanted

30:16.070 --> 30:18.126
to sort of ask a question off one of

30:18.126 --> 30:20.220
the last things you said about china

30:20.220 --> 30:22.331
still being the pacing threat but but

30:22.331 --> 30:25.200
also doing investments in um in more

30:25.200 --> 30:27.256
broader things . You talked a little

30:27.256 --> 30:30.270
bit about um $5 billion

30:30.270 --> 30:34.190
European initiative ,

30:34.200 --> 30:36.256
could you give us some ideas is what

30:36.256 --> 30:38.422
some of that is . You said 4.2 billion

30:38.740 --> 30:41.440
Uh to adapt to the evolving threats ?

30:41.440 --> 30:43.710
And another 900 million for security

30:43.720 --> 30:46.470
cooperation . Is there money in there

30:46.470 --> 30:50.030
for bases for additional troops ? Can

30:50.030 --> 30:51.808
you just talk about sort of the

30:51.808 --> 30:55.570
European portion of what might be in

30:55.580 --> 30:59.180
this specific budget and then address

30:59.190 --> 31:02.070
um whether or not do you think at this

31:02.070 --> 31:05.210
point the funding for

31:05.220 --> 31:07.670
Ukraine and for replenishment

31:08.940 --> 31:11.380
is going to have to be readdressed this

31:11.380 --> 31:14.740
year in some sort of supplemental or is

31:14.740 --> 31:18.530
there any part of this ? The the the

31:18.530 --> 31:20.740
Ukraine money with that ? That's in

31:20.740 --> 31:23.140
this budget . The 300 million would

31:23.150 --> 31:26.450
that go for some of that ? Okay , sure .

31:26.450 --> 31:29.650
Thank you . Um The european deterrence

31:29.650 --> 31:31.650
initiative in this budget very much

31:31.650 --> 31:33.706
continues the trajectory of previous

31:33.706 --> 31:35.840
budgets . This budget was finalized ,

31:35.850 --> 31:39.490
was finalized before Putin's invasion

31:39.500 --> 31:41.500
of Ukraine . So there is nothing in

31:41.500 --> 31:43.389
this budget that specifically was

31:43.389 --> 31:45.333
changed because it was too late to

31:45.333 --> 31:47.750
change it even if we wanted to uh to

31:47.750 --> 31:49.972
reflect the specifics of the invasion .

31:50.440 --> 31:52.920
What we , what we have in 22 in the

31:52.920 --> 31:55.250
omnibus funding in the omnibus funding

31:55.250 --> 31:57.306
bill at our request , Congress added

31:57.306 --> 31:59.417
some funds to address the deployments

31:59.417 --> 32:01.528
the secretary had ordered as of , you

32:01.528 --> 32:03.639
know , early , early february leading

32:03.639 --> 32:05.750
up to posture ourselves for what we ,

32:05.750 --> 32:07.917
what we saw was likely to happen . And

32:07.917 --> 32:10.083
then in addition , in the omnibus , of

32:10.083 --> 32:12.028
course , the the other half of the

32:12.028 --> 32:14.139
funding , half of the funding sort of

32:14.139 --> 32:16.083
related to our forces are are Nate

32:16.083 --> 32:18.139
bolstering of NATO's eastern flank .

32:18.139 --> 32:20.306
The other half was the Ukraine related

32:20.306 --> 32:22.480
draw down funds . We do not project

32:22.490 --> 32:24.730
those that drawdown effort continuing

32:24.730 --> 32:27.610
into the 23 budget again , the conflict

32:27.610 --> 32:29.610
hadn't started when this budget was

32:29.610 --> 32:31.721
finalized . It is possible that there

32:31.721 --> 32:33.888
might be an additional need to address

32:33.888 --> 32:35.943
that either this year or next year .

32:35.943 --> 32:38.110
But it's really premature of us to say

32:38.110 --> 32:40.054
that uh , in the initial phases at

32:40.054 --> 32:42.221
least , obviously we have been running

32:42.221 --> 32:44.277
through that dry down at fairly high

32:44.277 --> 32:46.554
rate . So we're that to continue . Yes ,

32:46.554 --> 32:48.721
we probably would need to address that

32:48.721 --> 32:50.610
again in the future . But I think

32:50.610 --> 32:52.832
stepping back the the whole question of

32:52.832 --> 32:55.054
what our posture will be , both for the

32:55.054 --> 32:57.388
US specifically and for NATO as a whole .

32:57.388 --> 32:59.721
You know , it's too early to tell given ,

32:59.721 --> 33:01.888
given that this , this early stage one

33:01.888 --> 33:03.832
month in as to what the , what the

33:03.832 --> 33:06.054
conflict itself will look like and what

33:06.054 --> 33:08.277
the , what the NATO response will be in

33:08.277 --> 33:10.443
23 or beyond . I imagine that would be

33:10.443 --> 33:12.666
a NATO discussion and one of the things

33:12.666 --> 33:14.499
that's heartening to see in this

33:14.499 --> 33:16.554
particular uh situation is how other

33:16.554 --> 33:18.721
countries have been stepping up on the

33:18.721 --> 33:20.832
draw downside on the sanctions side .

33:20.832 --> 33:23.054
It's not just the US doing all the work

33:23.054 --> 33:25.277
and I think that that is something that

33:25.277 --> 33:25.210
you would see factored into whatever

33:25.210 --> 33:29.130
the response will be and

33:29.130 --> 33:31.297
we'll go over to Tony Capasso A couple

33:31.297 --> 33:33.519
of questions . One for the animal , one

33:33.519 --> 33:35.630
for you . What was the real growth in

33:35.630 --> 33:35.420
the budget and the nominal growth from

33:35.420 --> 33:39.290
the enacted to the 773 . The

33:39.290 --> 33:42.290
growth the nominal growth in the budget

33:42.350 --> 33:45.750
answer this first was was 4% from what

33:45.750 --> 33:47.770
congress enacted 8% from what we

33:47.770 --> 33:51.430
requested and and the real growth was

33:51.440 --> 33:54.070
about 5.5% from what was enacted ,

33:54.070 --> 33:57.080
about 1.5% from , I'm sorry about 5.5%

33:57.080 --> 33:59.080
from what was requested last year ,

33:59.080 --> 34:02.130
about 1.5% from what was enacted . Of

34:02.130 --> 34:04.330
course we did not know what the , what

34:04.330 --> 34:06.386
the enacted numbers would be when we

34:06.386 --> 34:08.497
finished the budget . That wasn't the

34:08.497 --> 34:08.140
basis of our metric . That wasn't our

34:08.140 --> 34:10.350
metric in any case was to have a , you

34:10.350 --> 34:12.406
know , specific real growth number .

34:12.406 --> 34:14.350
But that's that's the way the math

34:14.350 --> 34:16.517
worked out layman's language . The 773

34:16.517 --> 34:19.030
budget represents about 1.5% real

34:19.030 --> 34:21.030
growth in defense spending over the

34:21.030 --> 34:23.252
enacted budget . Yes . So you have last

34:23.252 --> 34:25.252
year's number inflated and then add

34:25.252 --> 34:27.640
1.5% on top of that . That's correct .

34:28.430 --> 34:31.300
The F 35 number was supposed to be 94

34:31.480 --> 34:33.702
they fit above a couple of years ago at

34:33.702 --> 34:35.940
61 . Now from a joint perspective , why

34:35.940 --> 34:38.300
the cut of 33 airplanes ? Is this

34:38.310 --> 34:40.840
reflection of the services backing off

34:40.850 --> 34:42.750
because of sustainment costs ,

34:42.760 --> 34:45.150
projections Or shifting into other

34:45.150 --> 34:47.372
priorities ? I mean why the reduction ?

34:47.372 --> 34:49.428
So I mean first of all that's that's

34:49.428 --> 34:51.820
that number compared to where it was 84

34:51.820 --> 34:53.876
was what we had originally and we're

34:53.876 --> 34:55.820
down to 61 now . So obviously what

34:55.820 --> 34:58.230
we're looking for is where the F35 fits

34:58.230 --> 35:00.286
in that portfolio this year . We had

35:00.286 --> 35:02.397
When we looked at the F- 35 , what do

35:02.397 --> 35:04.230
we need mostly is the block four

35:04.230 --> 35:06.119
capability ? There have been some

35:06.119 --> 35:08.119
delays in the F- 35 . And again the

35:08.119 --> 35:09.786
delays have also delayed that

35:09.786 --> 35:12.000
capability that we want . Uh So we we

35:12.010 --> 35:14.600
took this opportunity in this budget to

35:14.600 --> 35:16.711
kind of shape it uh in the attack air

35:16.711 --> 35:18.460
portfolio you do see the some

35:18.460 --> 35:21.570
additional F 15 E . X ads , you've also

35:21.570 --> 35:23.570
got , you know , we look across the

35:23.570 --> 35:25.681
Joint Force attack air portfolio writ

35:25.681 --> 35:27.737
large . So there's not just the F 35

35:27.737 --> 35:29.737
but what what are you buying in the

35:29.737 --> 35:31.681
fourth gen , get some capacity and

35:31.681 --> 35:33.903
increased integration etcetera and then

35:33.903 --> 35:36.070
what do you need kind of that the next

35:36.070 --> 35:38.070
generation air dominance platform ,

35:38.070 --> 35:40.348
which there is a significant R . D . T .

35:40.348 --> 35:39.970
And investment into this portfolio to

35:39.970 --> 35:42.026
continue ? And then also you look at

35:42.026 --> 35:43.970
the hypersonic investments and all

35:43.970 --> 35:46.081
those other things . So those are all

35:46.081 --> 35:48.192
things in addition to the joint , all

35:48.192 --> 35:47.580
domain command control investments that

35:47.580 --> 35:49.800
are going to give us the ability to To

35:49.810 --> 35:52.030
operate that force of any number of

35:52.030 --> 35:54.510
aircraft in that environment . That

35:54.510 --> 35:56.720
money that didn't go into the 84 or 94

35:56.720 --> 35:59.040
F 35 . But we didn't actually take it

35:59.040 --> 36:01.207
from one and put in the other . But as

36:01.207 --> 36:03.373
you look at it , uh , collectively , I

36:03.373 --> 36:03.290
mean we focused on investments we

36:03.290 --> 36:05.350
needed in this budget . Blackstone .

36:05.730 --> 36:09.470
Thanks . Thanks . Sorry . You said

36:09.480 --> 36:13.110
a 10 , just to clarify , you said

36:13.240 --> 36:16.840
a 10 , Winding down in 5-6 years . Is

36:16.840 --> 36:18.840
that the fleet section of the fleet

36:18.840 --> 36:20.951
that's not being re winged or is that

36:20.951 --> 36:22.840
the entire fleet ? I just want to

36:22.840 --> 36:25.062
clarify that we're talking what episode

36:25.062 --> 36:27.980
we're talking about the fleet ? 260

36:28.460 --> 36:30.900
number is there's 18 to 18 that are

36:30.910 --> 36:33.077
that are gonna get re wing and there's

36:33.077 --> 36:35.188
an orphan 80 or something like that .

36:35.188 --> 36:37.354
I'm just trying to figure out you said

36:37.354 --> 36:39.243
in the 5 to 6 years time the A 10

36:39.243 --> 36:41.410
fleet's gonna disappear And I'm like ,

36:41.410 --> 36:41.050
I want to understand that you're not

36:41.050 --> 36:43.210
talking about the ones that have bins

36:43.930 --> 36:46.640
budgeted to be re winged ? We're

36:46.640 --> 36:50.140
talking about the fleet . Okay . And to

36:50.140 --> 36:52.580
go back to lead this question , is

36:52.580 --> 36:54.770
there a number of weeks or months that

36:54.770 --> 36:57.260
the conflict in Ukraine last that you

36:57.260 --> 36:59.093
need to go back and ask for more

36:59.093 --> 37:01.316
supplemental there . Do you have a wild

37:01.316 --> 37:02.316
guess on that ?

37:05.630 --> 37:08.350
Not not at this time . I mean the

37:10.930 --> 37:13.041
one of the problems we had originally

37:13.041 --> 37:15.180
that we were under C R r r r r budget

37:15.180 --> 37:17.180
was depressed already . So now that

37:17.180 --> 37:19.291
we've gotten our funding in place and

37:19.291 --> 37:21.402
the specific funding we asked for for

37:21.402 --> 37:23.624
the initial deployment , we've got some

37:23.624 --> 37:25.902
breathing room to assess going forward .

37:25.902 --> 37:27.902
Now if we have to handle additional

37:27.902 --> 37:29.958
cost by reprogramming obviously that

37:29.958 --> 37:32.124
we're gonna have to get to that in the

37:32.124 --> 37:34.069
May june timeframe to assess where

37:34.069 --> 37:36.180
we're looking for if additional funds

37:36.180 --> 37:38.402
are available that might , you know , I

37:38.402 --> 37:38.100
don't and I don't know that that would

37:38.100 --> 37:39.989
be the case . That might buy us a

37:39.989 --> 37:41.989
little more time . But yeah , we'll

37:41.989 --> 37:44.156
have to look at this again probably in

37:44.156 --> 37:46.267
the summer to to be prepared for some

37:46.267 --> 37:48.378
of the more difficult options . If it

37:48.378 --> 37:50.322
looks like that's the case , we're

37:50.322 --> 37:52.433
gonna go back to the phone lines Tony

37:52.433 --> 37:55.500
Pataca , Thank you very much Tony

37:55.500 --> 37:57.667
Britannica . Inside defense . I wanted

37:57.667 --> 38:01.090
to ask more about inflation in terms of

38:01.100 --> 38:03.211
the fifth step because looking at the

38:03.211 --> 38:05.211
fit up , it it looks like there was

38:05.211 --> 38:08.620
sort of a hike between 22 and 23 to

38:08.620 --> 38:10.620
address inflation and then it seems

38:10.620 --> 38:12.787
like that the the inflation assumption

38:12.787 --> 38:15.030
looks like it , it levels off . Can you

38:15.030 --> 38:17.030
tell me what sort of , you know , I

38:17.030 --> 38:19.141
understand that that MS Hicks already

38:19.141 --> 38:21.270
said that uh the fight over inflation

38:21.270 --> 38:23.381
is going to continue and you're gonna

38:23.381 --> 38:25.437
be dealing with it over the summer .

38:25.437 --> 38:25.310
Can you talk a little bit about how the

38:25.310 --> 38:28.760
pressures of inflation might change the

38:28.770 --> 38:32.330
fidelity ? Right . Well ,

38:33.120 --> 38:34.842
exactly , as the deputy said ,

38:34.842 --> 38:37.064
inflation is the here and now issue and

38:37.064 --> 38:39.550
it's it's it's , you know , sort of

38:39.550 --> 38:42.120
hard to hard to connect it to the

38:42.120 --> 38:44.287
projections for the outliers do as you

38:44.287 --> 38:46.342
say , have the inflation level off ,

38:46.342 --> 38:48.564
have pay raises level off to historical

38:48.564 --> 38:50.564
norms . We have multiple chances to

38:50.564 --> 38:52.676
revisit those next year and next year

38:52.676 --> 38:54.898
and next year as we get closer to those

38:54.898 --> 38:57.009
to those time frames . So what we did

38:57.009 --> 38:59.231
was was build the inflation that we saw

38:59.231 --> 39:01.520
happening now into into a sort of a one

39:01.520 --> 39:03.687
time step up of each of the five years

39:03.687 --> 39:05.687
in the fit up . But we did not , we

39:05.687 --> 39:07.798
don't have an accelerating assumption

39:07.798 --> 39:09.964
that inflation continues at high rates

39:09.964 --> 39:12.187
that would have to be revisited if that

39:12.187 --> 39:14.353
were to be the case . But we're a long

39:14.353 --> 39:16.409
way off even from figuring out , You

39:16.409 --> 39:15.630
know from knowing what's going to

39:15.630 --> 39:19.030
happen in in FY23 , which doesn't start

39:19.030 --> 39:21.252
for six more months and doesn't end for

39:21.252 --> 39:23.419
18 more months . I think that's one of

39:23.419 --> 39:25.641
the real hard things for everyone is to

39:25.641 --> 39:25.540
separate in your mind what happened

39:25.540 --> 39:27.540
last month or the month before from

39:27.550 --> 39:29.661
saying , you know what's gonna happen

39:29.661 --> 39:32.150
12 months from now . Let alone across

39:32.150 --> 39:34.261
the fit up . I'm gonna go back to the

39:34.261 --> 39:36.890
room . Travis . Thanks Travis . Tritt

39:36.890 --> 39:38.930
military dot com . Um the budget

39:38.930 --> 39:41.170
materials referred to Russia as an

39:41.170 --> 39:44.020
acute threat . And I assume that's

39:44.030 --> 39:45.863
language straight out of the new

39:45.863 --> 39:48.030
national defense strategy . But in the

39:48.030 --> 39:50.252
past I believe Russia had been referred

39:50.252 --> 39:52.197
to as a near peer adversary . So I

39:52.197 --> 39:54.720
wonder if that new language signals a

39:54.730 --> 39:58.250
rethinking of the Russian of what

39:58.770 --> 40:01.540
the rush priority for Russia and where

40:01.540 --> 40:03.484
rates now ? Is it a higher , lower

40:03.484 --> 40:05.990
priority ? What what are we to take

40:05.990 --> 40:08.470
from that language ? Well , I think

40:08.480 --> 40:10.424
we'd probably want to defer to our

40:10.424 --> 40:12.480
policy colleagues to explain the nds

40:12.480 --> 40:14.647
when and if they're able to and I know

40:14.647 --> 40:16.758
that there's some some classification

40:16.758 --> 40:18.813
issues there but just to stress what

40:18.813 --> 40:20.924
what what the admiral and I have been

40:20.924 --> 40:20.830
saying . And I think what the deputy

40:20.830 --> 40:23.950
said is is we did not , we did not feel

40:23.950 --> 40:26.460
that what's happening today altered the

40:26.460 --> 40:28.682
picture that china is is the number one

40:28.682 --> 40:31.070
issue to keep our eye on um obviously

40:31.080 --> 40:33.490
you can draw your own conclusions about

40:33.500 --> 40:35.722
Russia's performance on the battlefield

40:35.722 --> 40:38.740
and what you know , But but these

40:38.740 --> 40:40.962
documents , again , all these documents

40:40.962 --> 40:43.296
were pretty much finalized sometime ago .

40:43.296 --> 40:45.462
So this this is not attempting to be a

40:45.462 --> 40:47.780
commentary on on what's happening last

40:47.780 --> 40:49.730
week or the week before . Yeah , I

40:49.740 --> 40:51.796
could actually just add on there . I

40:51.796 --> 40:53.907
mean we were speaking near pier , you

40:53.907 --> 40:55.684
know , not from a strategic NDS

40:55.684 --> 40:57.573
perspective , but as a capability

40:57.573 --> 40:57.480
perspective , I mean , so the

40:57.480 --> 40:59.313
investments we have , you know ,

40:59.313 --> 41:01.560
against some of the space cyber uh ,

41:01.570 --> 41:03.403
you know , they have significant

41:03.403 --> 41:05.514
capabilities in the missile , air and

41:05.514 --> 41:07.681
missile defense realm . Uh those are ,

41:07.681 --> 41:09.737
those are a lot of things that we're

41:09.737 --> 41:09.580
trying to get after those capabilities

41:09.580 --> 41:11.691
as near peer adversary capabilities .

41:11.691 --> 41:13.636
So you know , differ obviously the

41:13.636 --> 41:15.858
policy describe exactly whether it is ,

41:15.858 --> 41:17.413
but for us , you know , the

41:17.413 --> 41:19.580
capabilities and that's why the things

41:19.580 --> 41:21.747
that that that we need are going to be

41:21.747 --> 41:23.969
against the higher end . Uh those , you

41:23.969 --> 41:23.800
know , china and Russia would do

41:23.800 --> 41:26.200
together have some incredibly capable

41:26.210 --> 41:27.870
um capabilities and

41:30.250 --> 41:32.417
well , I would say just to circle back

41:32.417 --> 41:34.528
on one particular point , of course ,

41:34.528 --> 41:36.528
the nuclear deterrence . No , no no

41:36.528 --> 41:36.380
diminution in Russia's capabilities or

41:36.380 --> 41:38.324
threats there ? None , none . None

41:38.324 --> 41:40.380
intended to be a message by anything

41:40.380 --> 41:42.436
we're saying here that we don't take

41:42.436 --> 41:44.213
that seriously . Alright , last

41:44.213 --> 41:46.324
question , we'll go back to the phone

41:46.324 --> 41:48.610
line , paul McLeary . Hi thanks . Um

41:48.610 --> 41:50.666
can you give it a little more detail

41:50.666 --> 41:52.554
about the E . D I and the pacific

41:52.554 --> 41:54.777
deterrence initiative . How much is the

41:54.777 --> 41:56.860
pacific deterrence initiative funded

41:56.860 --> 41:58.916
for and what are some of the kind of

41:58.916 --> 42:02.360
main lines of effort there . Sure in

42:02.360 --> 42:04.416
both cases I believe that we'll have

42:04.416 --> 42:06.693
budget documentation available shortly .

42:06.693 --> 42:08.638
If not today . That will that will

42:08.638 --> 42:10.749
describe each of those in addition to

42:10.749 --> 42:12.860
the indo pay com commander will issue

42:12.860 --> 42:14.971
his own report which which will speak

42:14.971 --> 42:17.082
to his specific deterrence initiative

42:17.082 --> 42:19.304
report required by Congress . So you'll

42:19.304 --> 42:21.416
see some granularity both from us and

42:21.416 --> 42:23.360
from the Pay com Commander on that

42:23.360 --> 42:25.527
front . On the european side . We will

42:25.527 --> 42:27.638
have a budget budget book out today .

42:27.638 --> 42:29.804
But these are these are in the case of

42:29.804 --> 42:31.582
the pacific insurance . This is

42:31.582 --> 42:33.360
something that's been um worked

42:33.360 --> 42:35.082
carefully with the between the

42:35.082 --> 42:34.930
department of the committee is trying

42:34.930 --> 42:37.152
to get people on the same page in terms

42:37.152 --> 42:39.319
of what do you count ? What do you not

42:39.319 --> 42:41.430
count investments west of the days of

42:41.430 --> 42:43.652
the date line but not but not otherwise

42:43.652 --> 42:47.300
exercises military construction but

42:47.300 --> 42:49.467
not , you know , not capabilities like

42:49.467 --> 42:51.300
submarines that could be applied

42:51.300 --> 42:53.522
worldwide . So I think that we've we're

42:53.522 --> 42:55.467
coming to closure I think with the

42:55.467 --> 42:55.180
committees on what the , what the ,

42:55.190 --> 42:58.280
what the concepts are there . Um ,

42:58.290 --> 43:00.234
investment in Guam as we discussed

43:00.234 --> 43:02.457
earlier was is a big part of it in this

43:02.457 --> 43:04.512
case , european deterrence really is

43:04.512 --> 43:06.623
pretty similar to what you would have

43:06.623 --> 43:08.846
seen over the last couple of years . Um

43:08.846 --> 43:11.068
mhm There's there's not , there's not a

43:11.068 --> 43:13.123
fundamental change in that . Maybe a

43:13.123 --> 43:15.290
little additional security cooperation

43:15.290 --> 43:17.290
but not not a definitional change .

43:17.290 --> 43:19.570
Okay , thank you for your time . That

43:19.570 --> 43:20.230
concludes our breathing