Carrier Funding Activity for Fiscal Year 2006
As of October 2005
Due to the importance of the nation’s carrier program to the country’s overall defense structure and global stability, it is vital that Congress allocate sufficient funding for the program. This funding will help to maintain a technologically equipped carrier force structure, and ensure a strong industrial base for the construction, maintenance and modernization of aircraft carriers.
FY05 Emergency Supplemental
The President signed the Emergency Supplemental into law on May 11, 2005. The Supplemental includes a prohibition on the use of funds to reduce the number of active carriers below 12 until after the submittal of the Quadrennial Defense Review (QDR). In effect, the prohibition would keep the USS John F. Kennedy (CV-67) in service for at least another year.
President’s Budget
Each year, the President sends his budget to Congress on the first Monday in February, outlining his priorities for the fiscal year. For FY06, the President’s Budget supports $564.9 million in Shipbuilding Conversion Navy (AP) funds and $391.9 million in RDT&E line items for the CVN-21 program. The budget also calls for 1513.6 million in (SCN) for the Refueling and Complex Overhaul (RCOH) of the USS Carl Vinson (CVN-70).
The ACIBC supports the President’s request for carrier funding, but also supports the additional $86.7 million in FY06 that the House and Senate Armed Services Committees added to the President’s request. This addition would help keep the ship on track for a 2007 start.
Congressional Action
The House and Senate Armed Services Committees began consideration of the Defense Authorization bill in May. The Senate Armed Services Committee (SASC) authorized $441.6 billion in defense spending. The bill directs the Navy to retain 12 carriers until the 2005 Quadrennial Defense Review (QDR) is submitted and to repair and maintain the Kennedy to extend its life. It also provides an additional $86.7 million in support for the construction of the CVN-21.
The House Armed Services Committee also provided language to plus up the CVN-21 by $86.7 million from Defense-wide OM&N funds after the Department of Defense’s Office of Program Analysis and Evaluation certifies that there is enough funding to start the ship in FY07. The House Appropriations Committee also considered the bill in early June, and later that month, the full House approved the bill, although, with no mention of the $86.7 million plus up.
The Senate Appropriations Committee added $86.7 million to the Shipbuilding Conversion Navy (SCN) account which would fund enough advance design work to preserve the option of letting construction begin in 2007. As the House Appropriations Committee did not put in additional funds, this now becomes an appropriations conference issue, which is expected to be resolved in the next few weeks.
Why Provide Additional Funding for the CVN-21 Program in FY06?
The CVN-21 program is the future of American sea power. It will integrate new technology and transformational capabilities, maintain force structure, and will be more cost-effective.
The CVN-21 (CVN-78) is scheduled to replace the USS Enterprise (CVN-65). Although the President’s budget requests funding for detail design and long lead purchases and planning, it will also delay construction by a year to 2008.
To meet the construction start time of 2007, the CVN-21 program requires additional funding of $86.7 million in FY06. This additional funding also secures the ship design and long lead hardware to support the CVN-21 ship construction schedule and prevents a drop in the carrier force structure below 11 ships that could result in a weakened industrial base and increased costs for the construction of the ship.