Calvert Remarks at FY25 Defense Bill Full Committee Markup

Thank you, Chairman Cole.  I am grateful for your leadership, and the guidance you have provided during this accelerated appropriations cycle. 

Before I discuss the Fiscal Year 2025 Defense Appropriations Bill, I would like to recognize two members of the defense subcommittee who will be retiring at the end of this Congress.  Dutch and Derek, thank you both for your decades of service, and for your support of our men and women in uniform.

I also want to publicly recognize Chairwoman Emeritus Kay Granger.  It has been an honor to serve with you, and to follow you at the helm of the Defense Subcommittee.  Your legacy of leadership and support for our military will endure long after your retirement.  You will be missed.

And, finally, I thank the Defense Subcommittee Ranking Member Ms. McCollum for her friendship and partnership.

The Fiscal Year 2025 Defense Appropriations Bill provides $833 billion for the Department of Defense and Intelligence Community.  Consistent with the Fiscal Responsibility Act, this is $8.5 billion, or 1%, above the Fiscal Year 2024 enacted level.

I have heard concerns about the allocation, with people questioning both whether it is too low or too high.  I have made my opinion clear that it is too low.

Of the overall allocation, $520 billion, or 62%, goes toward must-pay bills, including:

• Troop and civilian pay;
• Military benefits, medical care, and family services;
• Fiel, utilities, IT, basic supplies, and routine maintenance;
• Training and education;
• Medical research; and,
• Environmental cleanup.

These must-pay costs are rising.  Just this month, the Department announced that the price of fuel per barrel is increasing by $21.  This will create a multi-million dollar “new” bill for the current fiscal year and fiscal year 2025.

With cost growth of this magnitude in “must-pay” accounts, funding for procurement and research will continue to get crowded out, absent a topline increase. 

That having been said, the Fiscal Responsibility Act is the law of the land.  Despite the challenge posed by the topline, this bill effectively resources a capable, lethal, and ready military.

The Defense Subcommittee scrutinized the Fiscal Year 2025 budget request line-by-line, resulting in roughly $18 billion in cuts.  Many of these reductions are due to schedule delays, unjustified cost increases, under execution, or other programmatic adjustments.  But in many cases, the Department simply did not provide clear and adequate justification.  We will not give any blank checks.

In short, this bill procures where we can, trains where we must, and invests in capabilities that will make Chinese leaders wake up every day and say, “today is not the day to provoke the United States of America.”  

Turing to the details, the bill continues the investments made in fiscal year 2024 by:

• Prioritizing funding for the fight against China,
• Promoting innovation and modernizing our military,
• Supporting our service members and their families,
• Optimizing the Pentagon’s civilian workforce,
• Enhancing the Department’s role in countering the flow of illicit fentanyl and synthetic opioids,
• Supporting America’s close ally, Israel, and
• Ensuring the Department is focused on their core mission of training and equipping our warfighters.

The only way to prevent Chinese aggression is by fielding and operating capabilities that demonstrate American military advantages. 

This bill increases investments in 5^th and 6^th generation aircraft and procures deliverable capabilities, including several INDOPACOM unfunded priorities.  It prohibits the divestment of certain naval and air assets that are still combat-credible.  And it provides $200 million for Taiwan security cooperation programs, while prioritizing defense articles and services to this threatened island.

To best understand the need for a reawakening in defense innovation, we must think back to 1993, when then-Secretary of Defense Les Aspin hosted the defense contractor version of the Last Supper.  He had one simple message to the two dozen defense prime contractors present - one word– consolidate.

Thirty-one years later, the consequences of this decision mandate action.  As evidenced by endless reporting, our defense industrial base is very fragile, and competition is stifled.

Almost every major defense acquisition program is plagued by constant issues – persistent inflation, aging workforce, costly infrastructure, weak supply chain, overly optimistic schedules, unrealistic budgets, overpromised results.  

To procure modern capabilities on an accelerated timeline, this year’s bill once again provides significant investment in innovation and modernization. The limitations of our defense industrial base cannot be rectified by continuing to rely on large-dollar, capital intensive, high-stakes programs.  Just as we did in the lead up to World War II, a whole-of-nation effort is required to once again raise America’s arsenal of democracy.  This bill reflects the requirement to leverage the innovation community and American entrepreneurs to rise to this occasion.

The Defense Innovation Unit is well suited to lead this generational effort.

DIU embodies the qualities required for agile, responsive, and effective development and procurement.  Building on momentum established in fiscal year 2024, over $1.3 billion is allocated for DIU and select innovation efforts to deliver capabilities from non-traditional, small, and medium-sized businesses.  This includes $400 million for the highly successful APFIT program.

The bill also maintains high levels of funding for the Department’s drug interdiction and counterdrug activities, adding $242 million above the President’s request and increasing funding for the National Guard Counterdrug program and the National Guard Youth Challenge Program to empower states to take a more active role in defense of their communities. The bill also transfers Mexico from NORTHCOM to SOUTHCOM for improved coordination and prioritization.

Just last year, the overdose death rate in the United States exceeded 112,000 for the first time.  66% of these deaths were the result of fentanyl.  More Americans have died of fentanyl than in the Iraq, Afghanistan, and Vietnam wars combined.  These tens of thousands of dead Americans are victims of our number one adversary, China, who supplies the base chemicals to Mexican drug cartels injecting this drug into our communities.  This is not a domestic issue, it is a national security crisis.

Finally, underpinning these priorities is the imperative to support our servicemembers and their families.  The bill includes a 4.5% pay raise for all military personnel.  In addition, thanks to Congressman Garcia, the bill funds an additional 15% pay raise for junior enlisted servicemembers.  Many of our military families are below the poverty line and are food insecure.

It is obvious that many difficult decisions were made when drafting this bill.  The subcommittee received over 10,000 requests from Members.  Many were for programs I strongly support, but simply cannot afford to fund at this time.  Accordingly, unexecutable requests are not funded.

The decision to not fund a second Virginia Class submarine reflects the hard choices made in this process.  I want to clear up some confusion.  The NDAA did not procure a second submarine. It authorized $700 million of incremental funding for a second submarine. Procuring a second submarine would cost around $4.3 billion.

The reason this bill doesn’t fund a second submarine is very simple – the contractors cannot build it. There are significant problems with the Submarine Industrial Base that cannot be resolved with symbolic money.

I am a staunch supporter of submarines and know the critical asymmetrical advantage they provide our military.  If they could be built, I would absolutely fund them.  

Instead, the bill makes smart investments and includes $4 billion for the submarine industrial base.  This is in addition to the $3 billion included in the recently-passed Indo-Pacific Security Supplemental and the $1.2 billion provided in the fiscal year 2024 appropriations bill.

Before I yield, I will say one final round of thank yous to the subcommittee staff who have worked tirelessly, with very little time, to conduct diligent oversight and produce a bill I am very proud to bring forward today.

I would like to acknowledge:

• Johnnie Kaberle, my clerk
• Walter Hearne
• Ariana Sarar
• Jackie Ripke
• David Bortnick
• Matt Bower
• Bill Adkins
• Hayden Milberg
• John Forbes
• Kyle McFarland
• Max Morgan
• Gina Pizziconi-Cupples
• Kiya Batmanglidj
• and Alec Esteban

I would also like to thank the minority staff: Jennifer Chartrand and Jason Gray, who have done outstanding work to prepare this bill.

Thank you also to the associate staff and fellows who are essential to each member and this process.

We are all here for one reason: the defense of our nation. Today’s debate reflects the significance of this responsibility to each member on this Committee.

With that, Mr. Chairman, I yield back.