HOUSE PASSES DEFENSE FUNDING: After wrangling over border wall funding and dozens of amendments, the House has passed a $658 billion, spending cap-busting bill to fund President Trump’s Defense Department in 2018. The department would get $584 billion for its base operations and another $74 billion for its war fund, called Overseas Contingency Operations, under the defense appropriations legislation. It’s the third congressional budget bill, including both the House and Senate versions of the National Defense Authorization Act, to flout federal spending limits for the coming year and aim for big increases in ships, aircraft and troops.
BIGGER BUILDUP THAN TRUMP’S PLAN: The House bill boosts spending and procurement above the budget request Trump submitted in May. Following on the proposed NDAAs, it is another sign defense hawks in Congress are pushing hard to reverse what they considered anemic military spending during the Obama administration. Here’s how the House appropriations bill passed Thursday compares to the other defense proposals so far on a couple of big-ticket procurement items and end strength:
Trump’s defense budget request: Nine Navy ships including two littoral combat ships; 70 Lockheed Martin F-35 joint strike fighters; 14 Boeing F/A-18 Super Hornets; and no increase in the size of the Army. Lockheed and Austal USA make the two variants of LCS.
House $658 defense appropriations bill: 11 Navy ships including the three littoral combat ships; 84 F-35s; 24 Super Hornets; and $1 billion to add more troops.
House $696 billion NDAA: 13 Navy ships including three littoral combat ships; 87 F-35 jets; 22 Super Hornets; and 17,000 more soldiers.
Senate $700 billion NDAA: 13 Navy ships including just one littoral combat ship; 94 F-35s; 24 Super Hornets; and 7,000 more soldiers.
Senate defense appropriations bill: The chamber’s appropriations committee has not finished work and instead announced a placeholder bill.
McCAIN’S MOMENT: Yesterday, Armed Services Committee Chairman Sen. John McCain made another impassioned plea to his colleagues to take a break from the healthcare debate in order to take up the Senate version of the NDAA before he returns to Arizona for brain cancer treatment. “All I’m asking is … if we could go off of this [healthcare debate] for a few hours because we have basically an agreement on amendments and get this thing to the president’s desk so that he can protect and defend this nation,” McCain said on the Senate floor. “That is all I’m asking for.”
But the healthcare deliberations went into the early morning hours, ending at 2 a.m. in a dramatic moment when McCain, his arm outstretched, paused, and then indicated, “no,” on the Senate floor, casting the deciding vote that killed the Republican effort to repeal Obamacare, and send the bill to the House for further work. McCain’s dramatic gesture, which evoked the image of a Roman emperor turning thumbs down on a gladiator, produce an audible gasp from the his fellow Senators, as McCain turned and walked slowed back to his seat.
SO, WHERE’S THE NDAA? The Senate Armed Services Committee passed its version of the NDAA last month, but the bill remained stuck in the quagmire of the Obamacare debate. But before it was clear the GOP healthcare bill would fail, Democrats did not seem predisposed to allow the NDAA to get floor time. “My caucus, I’ve spoken to a few, feel very strongly that this process on healthcare has been awful, and it’s because of reconciliation, and now reconciliation has put NDAA in a bind as well,” Minority Leader Chuck Schumer told McCain during their exchange on the Senate floor. But the failure of Obamacare repeal could clear the decks for the NDAA, because Schumer also said if Republicans agree to return to committee hearings to consider Democratic input and changes to their healthcare plans, then “we can go to NDAA immediately, in an hour if we were to do that.”
THE LOOMING MEAT AX: There remains a huge unaddressed problem with all the wishful spending plans: They ignore the harsh reality of the 2011 Budget Control Act, which if not repealed or modified will take with one hand what is given by the other. The just-passed House appropriations bill, as well as the NDAAs, all violate the $549 billion defense cap spending in 2018 set by federal law. Without a budget deal to raise the caps — nondefense spending also faces a limit — the bills will trigger mandatory across-the-board funding cuts called sequestration, also referred to in Washington as a budget meat ax. So far, no potential deals have materialized on Capitol Hill. The legislative clock is ticking and the current fiscal year’s budget expires in October.
Good Friday morning and welcome to Jamie McIntyre’s Daily on Defense, compiled by Washington Examiner National Security Senior Writer Jamie McIntyre (@jamiejmcintyre), National Security Writer Travis J. Tritten (@travis_tritten) and Senior Editor David Brown (@dave_brown24). Email us here for tips, suggestions, calendar items and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email and we’ll add you to our list. And be sure to follow us on Twitter @dailyondefense.
BREAKING THIS MORNING: Russia’s Foreign Ministry on Friday ordered a reduction in the number of U.S. diplomats in Russia and said it was closing down a U.S. recreation retreat in response to fresh sanctions approved by Congress, the AP reported. The U.S. Embassy in Russia must reduce the number of its diplomats by Sept. 1. Russia will also close down the embassy’s recreational retreat on the outskirts of Moscow as well as warehouse facilities.
The ministry said the number was being cut to 455 diplomats. It was not immediately clear how many U.S. diplomats now serve in Russia.
Last night, the Senate has passed the House version of a bill on that slaps sanctions on Russia for meddling in 2016 election, clearing the bill for Trump, who still isn’t saying whether he will sign it, Susan Ferrechio writes. The bill overwhelmingly passed by a 98-2 vote. “This bill will give us the strongest possible hand to stand up against the aggressions of Russia,” said Sen. Ben Cardin, of Maryland, who is the top Democrat on the Senate Foreign Relations Committee. “Russia attacked us on our Democratic institutions,” has invaded Ukraine “and is participating in war crimes in Syria.”
TRANSGENDER DYSPHORIA: At the Pentagon yesterday, it became increasingly clear that virtually no one knew the president was even considering discharging currently serving transgender troops, much less having any idea how such policy would be implemented. Trump’s Wednesday tweet said “After consultation with my Generals and military experts, please be advised that the United States Government will not accept or allow….Transgender individuals to serve in any capacity in the U.S. Military.” But pressed yesterday, the Pentagon could not name a single general or admiral who advised the president to reverse the policy that allows transgender troops to serve openly. Navy Capt. Greg Hicks, a spokesman for Joint Chiefs Chairman Gen. Joseph Dunford, would not say if Dunford had advised or even discussed the issue with the president, saying all conversations between the chairman and the president are private and confidential. When asked what generals the president was referring to in his tweet, if not Dunford, who as Joint Chiefs chairman is by law designated as the principal military adviser to the president, Hicks said, “I would ask the president and the White House to characterize that portion of the statement.”
NOTHING CHANGES FOR NOW: Dunford sent a memo out yesterday to the service secretaries, senior enlisted leaders, and commanders worldwide saying until new policy is hammered out, nothing changes.
“I know there are questions about yesterday’s announcement on the transgender policy by the President. There will be no modifications to the current policy until the President’s direction has been received by the Secretary of Defense and the Secretary has issued implementation guidance,” the memo said. “In the meantime, we will continue to treat all of personnel with respect. As importantly, given the current fight and the challenges we face, we will remain focused on accomplishing our missions.”
Defense Secretary Jim Mattis was on vacation when the ban was dropped like a MOAB on the Pentagon, but his chief spokesperson issued a statement. “The Department of Defense is awaiting formal guidance from the White House,” Dana White said. “We will provide detailed guidance to the Department in the near future for how this policy change will be implemented.” One of White’s deputies was more pithy. “We don’t have guidance. We have a tweet. We don’t execute policy based on a tweet,” said Navy Capt. Jeff Davis, when questioned about where things stand by the Washington Examiner.
DON’T BLAME THE CHIEFS: The other members of the Joint Chiefs are also not saying much about the new policy, except to indicate they stand ready to salute smartly and carry out the orders of their commander in chief. But the nation’s top military officers are in a tight spot. While they are expected to give their unvarnished view in private, they are supposed to be apolitical in public, and expected not to publicly oppose or question the president’s policy decisions.
Army Chief of Staff Gen. Mark Milley admitted yesterday he first learned of the ban the “same way everyone else did,” through news reports. But Milley insisted that is not unusual during a lunchtime speech and Q&A with journalists at the National Press Club. “Some people are trying to make this out as if it’s particularly unique,” Milley said. “If I had a nickel for every time I read decisions in the news over the last 10, 15, 20 years, I’d probably be a pretty wealthy guy right now.” Milley said he’s a big consumer of breaking news while working at his desk. “People can say what they want about the media but the one thing you are is fast.”
Milley also said that so far as he knows, Mattis has also not yet been given any guidance. Milley was also the chief who was the most outspoken last year about the wisdom of allowing Americans to serve based on their abilities, not who they are.
AWKWARD: Following the decision to allow transgender people to serve openly last year, the Defense Department’s public affairs shops have been churning out photos and videos explaining how the policy will be implemented and telling the stories of transgender service members. Paul Bedard rounded up some of that imagery, along with other events that DoD has put on since then.
HAIL MARY ON TRANSGENDER BAN: The House lawmakers never got to vote on a proposed Democratic amendment that would have blocked Trump from banning transgender military service. The long-shot, last-minute amendment was shot down by the House Rules Committee in a party line 6-4 vote. “We’re worried that this irresponsible type of arbitrary action really puts a major burden on the military particularly on the units and fellow service members who depend on transgender Americans who fill roles in their units,” said Rep. Jared Polis, a Rules Committee member who attempted to add the amendment.
FALLOUT AT DHS: A candidate for a senior job at the Department of Homeland Security withdrew from consideration over the ban, according to a Politico report Thursday. John Fluharty, who is openly gay, informed a DHS official in an email that he was taking himself out of contention to be assistant secretary of partnership and engagement.
“As I mentioned in our conversation, I am a strong advocate for diversity, both in the Republican Party and in government,” Fluharty wrote. “The President’s announcement this morning — that he will ban all of those who identify as transgender from military service — runs counter to my deeply held beliefs, and it would be impossible for me to commit to serving the Administration knowing that I would be working against those values.”
RAYTHEON 2Q: The missile maker announced its earnings for the second quarter of 2017 yesterday and said sales increased from $6 billion last year to $6.3 billion, up 4.2 percent. Earnings per share from continuing operations was $1.89 compared to $2.41 in the second quarter 2016. ”Global customer demand for our advanced capabilities continues to drive growth, resulting in stronger than expected bookings, sales, EPS and operating cash flow for the quarter and supporting increased guidance for the year,” CEO and Chairman Thomas Kennedy said.
RAQQA PROGRESS: Every week the U.S. military provides an update on the U.S.-backed campaign to liberate Raqqa from the Islamic State. The reason you’re not hearing too much about it is because it’s going pretty well. Yesterday, the chief U.S. military spokesman in Iraq, Col. Ryan Dillon, said as the campaign approaches the two-month mark, about 45 percent of the self-proclaimed ISIS capital is now under control of the U.S.-supported Syrian Democratic Forces. Dillon says the SDF are attacking from both the east and the west, and soon the two groups will meet up. “Currently, the distance between the east and west SDF axes is less than a half a mile,” Dillion told Pentagon reporters yesterday. “And once they link up, the SDF will have full control of southern Raqqa.”
KICKED OUT OF THE CLUB: Dillion also said one the groups the U.S. has been partnering with in Syria will no longer get U.S. backing because it has been freelancing in the Syrian civil war. “In southern Syria, the Shuhada Al-Qaryatayn, commonly referred to as the Shuq, one of our partner forces there, unilaterally, without U.S. or coalition permission or coordination, conducted patrols outside of the agreed upon de-escalation zone and engaged in activities not focused on fighting ISIS,” Dillion said. “The coalition only supports partner forces committed to fighting ISIS.”
ISIS SCORECARD: And the U.S. says it continues to scratch names of its hit list of most wanted ISIS terrorists. Yesterday, the coalition released a list of seven people described as “senior ISIS propagandists and facilitators” who have been killed in strikes in Iraq and Syria in recent months. “The removal of these key ISIS leaders disrupts ISIS’s propaganda production, distribution and the ability to fund their activities,” Dillon said.
PAKISTAN’S PM OUT: Pakistani Prime Minister Nawaz Sharif will be forced to step down after a five-judge panel of Pakistan’s Supreme Court disqualified him over accusations of corruption. Pakistan’s governing political party will now choose an interim prime minister to serve until next year’s general election. Sharif was serving his third term in office.
NOMINEES SET FOR SENATE VOTE: Senate Armed Services voted yesterday to send four of Trump’s civilian Pentagon nominees to the full Senate. The committee vote means the nominees, who include the president’s pick for the department’s top weapons buyer and Air Force undersecretary, have cleared a key hurdle and may now move to final decisions on their confirmations. Here are the nominees:
Matthew Donovan, a policy director on the Senate Armed Services Committee, to be Air Force undersecretary.
John Gibson, former CEO of XCOR Aerospace, to be deputy chief management officer.
Ellen Lord, former CEO of Textron, to be undersecretary of defense for acquisition, technology and logistics.
Lucian Niemeyer, former Armed Services professional staff member and founder of the Niemeyer Group consulting firm, to be assistant secretary of defense for energy, installations, and environment.
SYRIA ADVISER OUT: A top adviser to Trump on Syria was removed from the National Security Council on Thursday amid speculation that the White House staff could soon see significant changes, Sarah Westwood writes. Derek Harvey, a former military intelligence officer and top Middle East adviser, will likely be reassigned to another position within the Trump administration, NSC spokesman Michael Anton told the Washington Examiner. “General [H.R.] McMaster greatly appreciates Derek Harvey’s service to his country as a career Army officer, where he served his country bravely in the field and played a crucial role in the successful surge in Iraq, and also for his service on Capitol Hill and in the Trump administration,” Anton said in a statement. “The administration is working with Colonel Harvey to identify positions in which his background and expertise can be best utilized.”
IRAN’S ‘SPACE’ LAUNCH: Iran successfully launched its most advanced satellite-carrying rocket into space, the country’s state media reported on Thursday, in what is likely the most significant step yet for the launch vehicle, the AP reported. A confirmed launch of the “Simorgh” rocket would also mark another step forward for the Islamic Republic’s young space program, but is likely to raise alarm among its adversaries, who fear the same technology could be used to produce long-range missiles. Iranian state television said the rocket, whose name means “phoenix” in Persian, is capable of carrying a satellite, or warhead weighing 550 pounds.
MORE INSPECTIONS: The Trump administration is pushing for inspections of suspicious Iranian military sites in a bid to test the strength of the nuclear deal that Trump desperately wants to cancel, senior U.S. officials said. The AP reports that the inspections are one element of what is designed to be a more aggressive approach to preventing Iran from obtaining a nuclear weapon. While the Trump administration seeks to police the existing deal more strictly, it is also working to fix what Trump’s aides have called “serious flaws” in the landmark deal that – if not resolved quickly – will likely lead Trump to pull out.
CLOSER TO STAR WARS: For years, Rep. Trent Franks has been pursuing the missile defense vision of President Ronald Reagan, derisively nicknamed Star Wars, and pushing for the creation of space-based interceptors. On Tuesday, he made it a step closer. Democrats attempted an amendment to the House defense appropriations bill that would have blocked the $30 million for interceptor testing and prototyping that Franks managed to have added to the House NDAA this month. “Every time the space-based concept has been looked at by technologically competent outside experts it was deemed to be unworkable,” Democrat Rep. Bill Foster said. But Franks pushed back and defeated the move. “It should be noted that every significant missile defense milestone ever achieved by this nation has been over the objections of gentlemen like Mr. Foster and his supporters,” Franks said. “They’ve been wrong about missile defense for decades.”
NO MORE AFGHAN UNIFORMS: The House considered dozens of amendments to its defense appropriations bill yesterday. One, passed by voice vote without debate, prohibits the Pentagon from using any 2018 funding to buy military uniforms for the Afghan National Army after a Pentagon auditor announced a criminal probe of the uniform purchases this week. The special inspector general for Afghanistan reconstruction, John Sopko, said the Pentagon appears to have wasted $28 million buying proprietary camouflage uniforms that are ill-suited to the country’s terrain and might have communicated inappropriately with a contractor.
THE RUNDOWN
DoD Buzz: EMALS catapult fixed but won’t reach Ford until 2019
Defense News: Marine Corps KC-130Ts grounded until further notice
Wall Street Journal: Iran test-launches rocket designed to carry satellites
Defense One: Flow of foreign fighters to ISIS stopped, Trump tactics working, McGurk says
AP: A Look At Why The Taliban Seem To Be Unstoppable
Defense News: DoD slashes AMRAAM missile buy as Raytheon struggles with tech refresh
UPI: Boeing, U.S. military finish EMP testing on KC-46 tanker
War on the Rocks: Military power is all about people: A return to personnel policy
Fox News: How sharks can help the U.S. Military in the future
Stars and Stripes: 173rd Airborne Brigade to head north – and south
Task and Purpose: Russia is building laser-armed nuclear ‘combat icebreakers’
USNI News: Repair For USS Fitzgerald After Collision Will Cost More Than Fix To USS Cole After Terror Attack
Breaking Defense: Navy Warships Get New Heavy Missile: 2,500-Lb LRASM
Foreign Policy: Pentagon investigating if U.S. troops knew of torture at Cameroonian base
Wall Street Journal: Qatar Weathering Embargo
Calendar
FRIDAY | JULY 28
12 p.m. 1030 15th St. NW. The ramifications of Rouhani’s reelection. atlanticcouncil.org
2:30 p.m. 1616 Rhode Island Ave. NW. Retired military leaders from Japan and the U.S. discuss the results of the Military Statesmen Forum. csis.org
MONDAY | JULY 31
10 a.m. 1775 Massachusetts Ave. NW. NATO at a crossroads and the next steps for the transatlantic alliance. brookings.edu
12 p.m. 5000 Seminary Rd. iFest 2017 with a keynote by Maj. Gen. Thomas Deale, vice director of Air Force Joint Force Development. ndia.org
TUESDAY | AUGUST 1
10 a.m. 1616 Rhode Island Ave. NW. The U.S. Coast Guard’s priorities for the future with the commandant, Adm. Paul Zukunft. csis.org
6:30 p.m. 14750 Conference Center Dr. Peter B. Teets Award Dinner. ndia.org
6:30 p.m. 1700 Army Navy Dr. Reception and welcome dinner for Air Force Secretary Heather Wilson. afa.org
WEDNESDAY | AUGUST 2
7 a.m. 4803 Stonecroft Blvd. National Security Space Policy and Architecture Symposium. ndia.org
9:30 a.m. Senate Visitors Center 212-10. Release of the study “Survivability in the Digital Age: The Imperative for Stealth” with opening remarks by Sen. Mike Rounds. mitchellaerospacepower.org
2 p.m. Senate Visitors Center 217. Closed top-secret meeting on the authorizations for the use of military force and the Trump administration perspective with Defense Secretary Jim Mattis and Secretary of State Rex Tillerson. foreign.state.gov
4 p.m. 1030 15th St. NW. Cyber Risk Wednesday: DEF CON to DC. atlanticcouncil.org

