House Passes $649 Billion 2012 Defense Spending Bill
The House today passed a $649 billion defense spending bill for fiscal 2012 that trims $9 billion from President Barack Obama’s budget request while boosting ground combat vehicles and special operations programs.
The House voted 336-87 to pass the bill, which reduces the Obama administration request of $530 billion for “core” defense programs by about $9 billion. Core defense spending, which doesn’t include the wars in Iraq and Afghanistan, is set at $513 billion in the current fiscal year, which ends Sept. 30.
The bill includes $119 billion for the wars in Afghanistan and Iraq, the lowest figure since $102.6 billion in fiscal 2005, a reflection of decreased troop levels in Iraq.
The Senate’s hasn’t scheduled action on its version of the defense appropriations bill.
The House, during debate this week, expressed its displeasure with U.S. support of NATO’s Libya operation to protect civilians from attacks by Muammar Qaddafi’s but stopped short of cutting off funding. It did approve an amendment that prevents using U.S. funds to provide insurgents with military equipment and training.
Separately, the House defeated amendments to reduce funding for a new Air Force bomber and to cut $1 billion in a reimbursement fund for Pakistan counter-terrorism efforts. The House agreed to reduce spending on U.S. military bands by $124.8 million.
Tank Upgrades
The bill increases funding for the General Dynamics Corp. (GD) M1A2 tank upgrade by $272 million and for commando radios and electronics by $239 million over the Pentagon’s request. The bill also funds the Pentagon’s request for 32 Lockheed Martin Corp. (LMT) F-35 fighters, while cutting $75 million from research.
The bill strongly endorsed the new Army Ground Combat Vehicle and buying more Textron Inc (TXT).-Boeing Co. (BA) V-22 Osprey aircraft.
Among the biggest cuts, the bill proposes a $435 million reduction of a $498 million request for Raytheon Co. (RTN)’s advanced medium-range air-to-air missile because of production delays. It’s as much as six months behind schedule delivering the missile to the Air Force and Navy, according to service data.
Raytheon’s Tucson, Arizona-based Missile Systems unit, as of May 31, was 136 missiles behind schedule, delivering 225 of 361 due by that date, according to data provided by Air Force spokeswoman Jennifer Cassidy. The backlog has grown from 87 in December, according to service figures.
The bill also would cut $524 million from the Army’s Enhanced Medium Altitude Reconnaissance and Surveillance System.
F-35 Engine
The spending bill doesn’t include money for the F-35 Joint Strike Fighter alternative engine, built by General Electric Co. (GE) and Rolls-Royce Group Plc. (RR/) The Pentagon canceled that program in April. GE and Rolls-Royce said they would self-fund the development of a second engine for the rest of this year and for next year. United Technologies Corp. (UTX)’s Pratt & Whitney unit provides the primary engine.
The House bill’s extra funding for the Abrams tank upgrades override an Army plan to suspend the program. The Army had requested $181.3 million.
General Dynamics, based in Falls Church, Virginia, and at least 200 of its suppliers have been lobbying Congress to add almost $1.4 billion over the next four years.
The bill also supported continuation of the Army’s new class of ground-combat vehicles, valued at as much as $1.35 billion for the prototype phase.
Still, it cut $116 million from the $884 million Army request, citing an eight-month program delay.
Three winners will be picked for the development phase in the third quarter of 2011, and one will then be selected for a production contract seven years later.
The Army plans to buy as many as 1,874 of the vehicles to replace its fleet of armored Bradley infantry fighting vehicles.
The bill number is H.R. 2219.
To contact the reporter on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net
To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net
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