Daily on Defense — Dec. 1, 2016 — Money question hangs over NDAA

SHOW ME THE MONEY: The White House isn’t saying whether President Obama will sign the National Defense Authorization Act that is the result of what Armed Services Committee Chairman Sen. John McCain called a “collaborative and thoughtful conference process.” McCain says the fiscal 2017 NDAA “provides our troops with the largest pay raise [2.1 percent] since 2010, begins to reverse the dangerous drawdown of the Army and Marine Corps, boosts investments in rebuilding readiness, firmly establishes innovation as a primary mission of the Department of Defense, and delivers bold reforms on defense acquisition, military healthcare, military justice, and security cooperation.”

But the bill also increases the Pentagon’s topline by $3.2 billion beyond the level Obama requested, without a comparable increase in domestic spending, which the White House has previously considered deal-breakers. Asked yesterday whether the lame-duck president will sign the compromise, spokesman Josh Earnest said, “We haven’t seen the text of it, but you know, we’ll obviously review it. That may take a little time, but once we’ve reached a conclusion about whether or not the president will sign it, we’ll let you know.”

DANCE OF THE FOUR-LETTER ACRONYMS: In the defense world on Capitol Hill, Wednesday was all about two four-letter acronyms: the NDAA and the AUMF.

While we’re still going through the 3,000+ page bill (so stay tuned for more!), one provision in it will withhold money from Defense Secretary Ash Carter’s innovation hubs until he can prove to Congress that they are working. “The conferees remain concerned that in the department’s rush to try something new, defense leaders have not taken the time to determine how effective recent organizational and management changes are before seeking a rapid expansion of resources,” negotiators wrote in the conference report.

In the House Rules Committee hearing on Wednesday, Rep. Tom Cole kept it real and reminded lawmakers that, while they deserved a pat on the back for finalizing the NDAA conference report, they hadn’t actually funded the military since the appropriations bill remained stuck. “We shouldn’t kid ourselves that we’ve taken care of defense. We haven’t,” he said. “The job is only half done.” The committee passed the rule yesterday, and the House is expected to take up the bill on Friday, with Senate consideration next week.

What’s missing from the compromise bill: the 11 additional Lockheed Martin F-35s in the House-passed version. But Rep. Mac Thornberry said he hopes President-elect Trump will come back early next year with a supplemental funding bill that adds those, as well as the 12 littoral combat ships cut from the total buy.

The other four-letter acronym popped up on the Senate floor yesterday, where Sen. Tim Kaine urged Congress to pass a new, Islamic State-specific authorization for the use of military force instead of relying on outdated authorizations from 2001 and 2002 that about 80 percent of the 115th Congress will not have voted on. The war Congress has yet to debate by the numbers: $10 billion spent on 800 days of operations where 5,000 Americans have served, Kaine said.

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SPY FUNDING: The House voted Wednesday to authorize more than $70 million for programs and activities conducted by U.S intelligence agencies, including the CIA, Susan Ferrechio reports. The fiscal 2017 Intelligence Authorization Act is a compromise bill negotiated with the Senate, and includes a provision aimed at “shining a light” on Obama’s decision to transfer Guantanamo Bay prisoners who in some cases have returned to terrorism.

The bill includes several new requirements for the intelligence community. For example, it caps fees for mandatory declassification reviews to match “costs of similar Freedom of Information Act requests.” The bill would also update whistleblower procedures and clarify eligibility for death benefits for CIA personnel, and boost requirements for intelligence community reporting to Congress.

MORE INFO ON RUSSIAN HACKS: Senate Democrats want Obama to declassify information on Russian government hacks on U.S. entities during the presidential election before he leaves office, Joel Gehrke writes. “We believe there is additional information concerning the Russian government and the U.S. election that should be declassified and released to the public,” Oregon Sen. Ron Wyden, a senior member of the Senate Intelligence Committee, wrote in a letter to the president that was signed by the other Democrats on the panel. “We are conveying specifics through classified channels.”

BRIDGE TO SOMEWHERE: Russian President Vladimir Putin gave his annual state of the nation address in the Kremlin today, and among other things, said work is on schedule in the construction of a road and rail bridge to Crimea, according to Reuters. Russia annexed Crimea from Ukraine in 2014. Meanwhile Reuters also reports Ukraine’s military has announced that its two-day missile drill that begins today will avoid the airspace over Crimea to avoid confrontation with Russia. News of the tests had angered Putin, who ordered Russian air defense forces on high alert.

HAPPENING TODAY: Two hearings this morning on Capitol Hill. On the Senate side, the Senate Armed Services Committee holds a hearing looking at the oversight, acquisition, testing and employment of the littoral combat ship, a program that is cut in the compromise NDAA bill that’s out this week. Four witnesses are slated to testify: J. Michael Gilmore, the director of operational test and evaluation at the Defense Department, Sean Stackley, the Navy’s assistant secretary for research, development and acquisition, Vice Adm. Thomas Rowden, commander of Pacific Naval Surface Forces and Paul Francis from the Government Accountability Office. You can watch that here at 9:30.

On the House side, Rep. Vicky Hartzler is holding a hearing in the House Armed Services Oversight and Investigations Subcommittee on the number of troops in Iraq and Afghanistan. “Typically, military leaders are first given a mission and then they determine what resources are required to meet that mission,” Hartzler told us ahead of the hearing. “Setting a cap first, however, constrains subsequent military choices. An imposed Force Management Level leads to potentially dangerous trade-offs. I look forward to hearing from our military leaders about what is taken into consideration, just what is affected, and the resulting readiness posture when a troop cap is implemented.” That all starts at 10 a.m. here.

TRANSITION WATCH: We are still awaiting the president-elect’s pick for the big three: secretary of state, defense and the director of national intelligence. Just a reminder, when Obama was elected in 2008, most of his Cabinet nominations didn’t come until December.

THAT WOULD BE A FIRST: Retired Gen. David Petraeus, likely one of the remaining four candidates Trump is considering for secretary of state, would have to notify his probation officer of his new job if offered the position. Petraeus, who also served as CIA director, was sentenced on April 23, 2015, to two years probation for giving his mistress, Paula Broadwell, classified information. Under the terms of his court-ordered punishment, he would have to alert his probation officer within three days of being offered the job, Anna Giaritelli writes. The potential Cabinet pick’s personal items, computer and phone would also be subject to warrantless searches through April 2017.

NO KELLY COMMENT: From yesterday’s pool report following the meeting between Trump and retired Marine Gen. John Kelly, who may be in the running for secretary of state: “General Kelly came back down to the lobby at 4:50pm and walked straight out of the building into Fifth Avenue. He ignored shouted questions from reporters about how the meeting went with the president-elect.”

FORMER PENTAGON CHIEFS ON TRUMP: Two former defense secretaries weighed in yesterday with their thoughts on the next commander in chief. On CBS, Robert Gates he hopes that he was wrong about Trump, who he once called “willfully ignorant about the rest of the world,” and “beyond repair” on national security issues. Gates said some of the people the president-elect is talking to are “very solid people.” But he also warned against having retired generals in charge at both State and DoD, which could be “too much military influence.” On MSNBC yesterday, William Cohen, who served in the Clinton administration, said it may be time for the tweeter in chief to put down the smartphone. “I think that the president-elect has to understand that the presidency is more than 140 characters. We can’t conduct this office, this high — this is the highest office in the world — through 140 characters,” Cohen told NBC’s Andrea Mitchell. “You have an obligation to the people of this country to talk about substance and be held accountable for everything you say and not simply put it out there with no filter, with everybody commenting around the press.”

Speaking of Cabinet generals, Phillip Carter and Loren DeJonge Schulman from the Center for a New American Security wrote an op-ed for the Washington Post that explains why that could be a problem.

OSU ATTACK FALLOUT: The State Department on Wednesday defended its process of reviewing applications for refugees trying to enter the United States, after a Somali refugee was shot and killed after staging a terrorist attack at Ohio State University on Monday, Pete Kasperowicz writes. Republicans have said the possibility of terrorists entering the U.S. as refugees means a more strict vetting process is needed, and some say the U.S. should halt refugee access until improvements are made. “Of course, we’re always assessing and improving the vetting system,” spokesman Mark Toner told reporters. “But at the same time, let’s be clear that it’s still the most stringent vetting system for any person arriving from abroad into the United States, whether they be traveler or intending immigrant.”

SLOW GOING IN MOSUL: While Iraqi forces are making “deliberate progress,” the liberation of the Islamic State’s putative capital is still weeks away as troops are meeting “tough resistance,” according to the second-in-command of the counter-Islamic State coalition in Iraq. “We expect tough fighting to continue in the weeks ahead,” said British Maj. Gen. Rupert Jones, deputy commander for Combined Joint Task Force Operation Inherent Resolve, who said the Islamic State’s defeat in Mosul is inevitable.

COLOMBIA DEAL REVIVED: Colombia’s Congress has approved a revised peace agreement with the FARC that gives the rebels 150 days to disarm. The accord with the country’s largest rebel group comes after an earlier version of the deal was rejected in a referendum two months ago. This time there will be no referendum, so with this deal Congress has the final say, and it’s expected to stick.

ABOUT THAT TRUMP-SHARIF PHONE CALL: Trump spoke by phone with Pakistani Prime Minister Muhammad Nawaz Sharif on Wednesday, after which the public relations arm of Pakistan’s government issued a statement about the two men’s conversation that quickly went viral. You should just read it. Go ahead. We’ll wait.

BOEING WINS DoD CONTRACT:  The Pentagon has awarded Boeing a $558 million modification to a previously awarded U.S. Air Force contract for F-15 radar upgrades. The work is to be performed at St. Louis and is expected to be complete by Jan. 15, 2019, according to a Pentagon announcement.

THE RUNDOWN

AP: Trump will face tough questions on future of nuclear arsenal

New York Times: E.U. Plans Big Increase In Military Spending

NPR: Army Contests NPR Investigation Of Dismissed Soldiers In ‘Misleading’ Report

Defense News: CNO: Navy to Take Steps to Protect Ohio Replacement Program From CR

Breaking Defense: Good News For Navy In 2017 NDAA & Beyond: Rep. Courtney

USNI News: USS Zumwalt Soon to be Underway After Repairs

Military Times: Could Trump pick Sarah Palin to lead VA?

Task and Purpose: Sarah Palin Would Be The First Non-Veteran To Run The VA

Defense News: F-35 Joint Program Office Saved – for Now

Defense One: A Glimpse At How the F-35 Will Help the Marines Storm the Beach

The Hill: GOP senators want to amend Saudi 9/11 bill

UPI: U.S. Air Force finalizing C-17 drag reduction tests

Washington Post: Satellite Images Highlight Potential Problems With Russia’s Lone Aircraft Carrier

Navy Times: Navy asks Hewlett Packard to pay up for personal data breach

Defense One: How the Arctic Could Help Warm US-Russian Relations

Calendar

THURSDAY | DECEMBER 1

8 a.m. 1616 Rhode Island Ave. NW. Former Defense Secretary Leon Panetta and Rep. Mac Thornberry kick off a day-long Global Security Forum. csis.org

9:30 a.m. Dirksen G-50. Sean Stackley, the Navy’s assistant secretary for research, development and acquisition, is among those testifying at a Senate Armed Services Committee hearing on the littoral combat ship. armed-services.senate.gov

10 a.m. Rayburn 2118. The House Armed Services Subcommittee on Oversight and Investigations holds a hearing on force management levels in Iraq and Afghanistan. armedservices.house.gov

10:30 a.m. Dirksen 419. Two analysts testify at the Senate Foreign Relations Committee about the future of counterterrorism strategy. foreign.senate.gov

3 p.m. 214 Massachusetts Ave. NE. The Heritage Foundation hosts an event on U.S. alliances with Japan and the United Kingdom. heritage.org

3:30 p.m. 1211 Connecticut Ave. NW. The Stimson Center holds an event on the U.S. drone program. stimson.org

FRIDAY | DECEMBER 2

12 p.m. 1030 15th St. NW. A panel of experts discusses how President-elect Trump’s vision for the U.S. relationship with Asia may differ from the Obama administration’s plans. atlanticcouncil.org

SATURDAY | DECEMBER 3

7:30 a.m. Simi Valley, Calif. The annual Reagan National Defense Forum includes panels with Chairman of the Joint Chiefs Gen. Joseph Dunford and Defense Secretary Ash Carter. reaganfoundation.org

MONDAY | DECEMBER 5

9 a.m. 1616 Rhode Island Ave. NW. Korean and American officials talk about what the relationship between the two countries will look like in the next administration. csis.org

2 p.m. 1775 Massachusetts Ave. NW. Robert Work, the deputy defense secretary, will speak about investing in the future of U.S. defense during a time of transition. brookings.edu

TUESDAY | DECEMBER 6

7:30 a.m. 2425 Wilson Blvd., Arlington, Va. Defense One hosts an event on what helicopters will look like in 2030. defenseone.com

9:30 a.m. 1789 Massachusetts Ave. NW. The architect of the CIA’s enhanced interrogation programs will talk about his interrogations of Khalid Sheikh Mohammed. aei.org

2:30 p.m. Dirksen 419. Think tank analysts testify before the Senate Foreign Relations Committee about defeating Iranian proxies. foreign.senate.gov

WEDNESDAY | DECEMBER 7

8:30 a.m. 555 Pennsylvania Ave. NW. The U.S. Naval Institute hosts its 2016 Defense Forum, including sessions with Marine Corps Commandant Gen. Robert Neller, Rep. Randy Forbes, and Rep. Ryan Zinke. usni.org

11 a.m. 214 Massachusetts Ave. NE. Rep. Michael McCaul keynotes the Heritage Foundation’s annual state of homeland security address. heritage.org

2 p.m. Rayburn 2118. The House Armed Services Military Personnel Subcommittee holds a hearing on the California National Guard bonus repayment issue. armedservices.house.gov

THURSDAY | DECEMBER 8

9 a.m. Rayburn 2118. Navy officials and experts testify about oversight of the littoral combat ship program. armedservices.house.gov

10 a.m. Dirksen 419. State Department officials testify about challenges facing the department and USAID under the next administration. foreign.senate.gov

10:30 a.m. 1775 Massachusetts Ave. NW. A panel talks about the future of the all-volunteer force. brookings.edu

12 p.m. 214 Massachusetts Ave. NE. The Heritage Foundation hosts a panel discussion on how Trump’s administration should improve America’s nuclear weapons and missile defense policy. heritage.org

12 p.m. 1000 Massachusetts Ave. NW. The Cato Institute hosts an event looking at how to convince China to work with the U.S. to coerce North Korea to halt its nuclear weapons program. cato.org

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