WASHINGTON, DC - In an effort to maintain the readiness and strength of the Armed Forces and remain within budget constraints, the Senate Armed Services Committee unanimously approved a bipartisan $631.4 billion Defense Authorization bill, which is about $4 billion below the funding level in the version recently passed by the U.S. House of Representatives. 

U.S. Senator Jack Reed (D-RI), the Chairman of the Subcommittee on Seapower, who wrote several key provisions of the bill and led the effort to restore funding to build a second Virginia-class submarine in Fiscal Year 2014, stated: “I am pleased to have worked closely with Chairman Carl Levin (D-MI) and Senator John McCain (R-AZ) to move this defense budget proposal forward and make smart investments in our national defense.  This bill authorizes critical federal funding to help maintain a strong, flexible military while providing critical support for our troops and their families.” 

The bill includes several key provisions backed by Senator Reed:

Authorizes funding for the continuation of two Virginia-class submarines

Submarine manufacturing is a vital part of Rhode Island’s defense industry.  Reed helped ensure the 2013 Defense Authorization bill includes full funding for the continuation of two Virginia-class submarines, preventing a cut in production that was proposed in the President’s Budget request.  The bill provides multi-year procurement authority for the Navy to buy the next block of submarines beginning in Fiscal Year 2014, adds more than $777 million in advanced procurement funding to enable the Navy to begin buying equipment for two submarines in 2014, and allows the Navy to incrementally fund the construction of the submarines over the next several years.  Locking in the two-per-year procurement rate for the Virginia-class submarine program is critical given the cost savings achieved, the efficiencies gained in the production schedule, and the projected shortfall in attack submarines in the next decade.

“Submarines’ unique capability for stealth, strike capacity, and their ability to deliver special forces personnel into difficult environments make them an extremely effective force multiplier and deterrent to our adversaries.  And as our strategy focuses more on the Asia Pacific region, it is vital we have a robust submarine fleet,” said Reed.  “This legislation authorizes full funding for the continuation of the Virginia-class submarine.  The Virginia class submarine is a critical component of our national defense capabilities, and Rhode Island plays an important role in its construction.”

Strengthens lending protections for military families

In an effort to protect servicemembers and their families from abusive financial practices, Senator Reed authored and worked to include an amendment to the 2013 Defense Authorization bill that would prevent lenders from charging excessive fees and interest to military families.  Reed’s amendment directs the Department of Defense to define consumer credit subject to the 36% APR cap in the Military Lending Act (MLA) to include payday and car title loans that are structured as “open-end” credit.  This amendment also removes loan duration limits on these products.  Reed’s amendment will ensure that lenders can’t get around the law by simply slapping new labels on the same exorbitantly high-interest payday or car title loans that the MLA was designed to prohibit. 

Improves mental health services for members of the National Guard and Reserves

Reed and Senator Kelly Ayotte (R-NH) authored an amendment that was adopted by the Committee to improve access to needed mental health services for members of the National Guard and Reserves and their families.  Based on the Reed-Ayotte Joining Forces for Military Mental Health Act, the amendment would authorize DOD to enter into community partnerships with non-profit organizations and institutions engaged in the research on the causes, development, and innovative treatment of mental health and substance use disorders and TBI to ensure that every member of the National Guard and Reserves, as well as their families, gets the mental and behavioral health care that he or she needs. 

Additionally, Senator Reed backed key provisions in the bill to improve the ability of the Armed Forces to counter non-traditional threats, focusing on terrorism, cyber warfare, and the proliferation of weapons of mass destruction.

The bill also includes $59.1 million for the Department of Defense (DOD) Inspector General (IG), to enable the IG to provide more effective oversight and help identify waste, fraud, and abuse in DOD programs, especially in the area of procurement.  DOD IG reviews resulted in an estimated $2.6 billion savings in FY11 – a return on investment of $8.79 for every $1 spent.  Additionally, the bill improves the cost-effectiveness of DOD contracting by strictly limiting the use of cost-type contracts for the production of major weapon systems, lowering the cap on allowable contractor pay to $237,000, and enhancing protections for contractor employee whistleblowers. 

The bill authorizes $200 million in funding for the Defense Research and Development Rapid Innovation Program to aid in technology transition across a broad spectrum of technologies, including those which will improve manufacturing capabilities, enhance energy security, and develop cybersecurity tools.

The full Senate could consider the bill in June.  Once it is approved by the Senate, differences between the Senate and House of Representatives bills will have to be resolved by a conference committee.