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>> deputy defense secretary kathleen hicks and joint chiefs of staff vice chair admiral christopher grady talked about president biden's 22 any five et requests and talked about how it would support priorities such as readiness, innovation of support for military personnel and their families. >'s really a pleasure to be with you here today to discuss president biden's fiscal year ment of defense. congress has not yet passed the fy wednesday for defense budget. i nt to hightow devastating the failure to pass last year's budget request is to ensuring our national defense and global security. last year the department released a now strategy aligned budget in dod history. it allocated critical resources consistent with our defense priorities, as2022 national defy and the president's national

security strategy. we buckled down and did our homework. our primary goal was to fortify emerging and enduring threats to our nation and the international order as we know it. first and foremost, the f.y. '24 budget treats our pacing challenge, the people's republic of china, with the urgency it requires, directing resources to sustain and strengthen u.s. deterrence. ■í congress' inability to pass the f.y. 2024 budget holding back. -needed funding hinders our ability to execute that■ the department has no way around

th joint force, one aimed at deterring and, if called upon, defeating foreseeable and future threats. and it makes a series of investments inul and valuable asset, our people, and ensuring that we can recruit, retain, train, and equip them so that they remain resilient, ready, and focused on fulfilling their mission. congress's inability to pass the f.y. '24 budget, holding back strategy.ed funding,in the department has no way around that reality. instead, we have been strapped with a series of continuing resolutions. crs are a significant constraint on our ability to advance our defense strategy, forcing the department to operate with onems we confront new and evolving security challenges each and every day. we cannot continue this cycle of continuing resolutions. we also cannot continue punting the ball on our supplemental funding request upport of ukraine in its fight against russian aggression. and we cannot continue to stall an approved supplemental funding for israel and humanitarian assistance in gaza to helpntaint and promote regional stability. and we cannot pass up on a critical opportunity to support our allies and partners in the indo-pacific with supplemental assistance and financing. so we need congress to come together. the world is watching what we do in this mome. it's tracking whether we can unite and overcome the headwinds

facing our national security and our democracy. and our adversaries in partul willingness to step forward for our allies and partners. so we must continue to make progress critical to proct and our republic, progress that will stoke innovation and bolster our ability to upgrade our systems, acquire new capabilities, and launch new initiatives, progress that increases the resilience and lethality of the joint force, progress that advances our multi-doma■lin power, strengthening our ability to deter strategic attacks against allies and partners, and progress that enables us to develop capabilities and operational concepts needed to deter aggression paced to the growing lt this progress cannot wait. our nation must meet its responsibility to our forces to pass on-time appropriations so that these goals can be realized.

this year's f.y. '25 defense dgeqbuild on and advance generational military investments we've put in motion over the past several years. our budget furthers our goals to defend the nation, take care of our people, and succeed through teamwork. unlike our prior budgets, however, the f.y. '25 request is capped by the fiscal responsibility act. because of these statutory caps, dollars, we made smart, responsible choices to work within those limits. the re executability and necessary emphasis on near-term readiness and people investments, but to be clear, we must grow the defense budget in the out years of our future years' defense program if we want to achieve the goals of the national defense strategy, especially in by the prc.

now, budgets are statements of priorities, and we used a rirous processguided by our strategy, to arrive at the resourcing determinations we've made. that process included close dialogue and collaboration among senior dod leaders, representing every defense component, military service, and combatant command. together, we remained singularly focused on identifying the programs and plans that best meet the demands of today's warfighters and their families s in the future. that's vital because since day one, secretary austin and i have emphasized the urgency to innovate. one key focus in innovation is overcoming institutional challenges that inhibit our ability to accelerate delivery of critical capabilities to the warfighter at speed and sce. that's the goal of replicator, including its first focus area

on all-domain attritable autonomous systems and many similar initiatives the department has undy. so even under the f.y. '25 cap, we continue to make investments in basic research, advanced technology, experimentation, artificial intelligence, and cyber and space capabilities, and we are committed to robust procurement, sending strong market signals to industry.take. last year, our investments in space capabilities were the largest ever. the department's commitment to space, investing nearly $34 billion to keep space safe for military, civilian, and commercial operations. in support of our first-ever national defense industrial strategy, we're increasing an double that of last year.her investments fon strengthening our munitions and defense industrial base and improving the silience of ou supply chains so that we can deliver what our warfighters

need when they need it. for example, the f.y. '25 budgew request makes an historic investment in the submarine industrial base to increase production and reduce backlogs. to increase munitions investments, and i appreciate congress's partnership in ensuring that we have the authorities ■we need to get the right capabilities in the hands of our warfighters, allies and partners. top of their list is multiyear procurement authority, which iso meet immediate threats, support the defense industrial base and surge and maintain munitions we have awarded our first four multiyear procurement contracts. we've made significant investments in the munitions industrial base and we know that multiyear procurement will be even more effective when we receive appropriations that allow us to move out on these authorities. our investments will go toward

deepening our relationship with our allies and partners, and these robust investments reflect our nation at our best: sparking innovation, leading with our allies and partners and those forces that would do us harm. our f.y. '25 budget request also upholds our commitment to our people, the servicemembers, military families and civilians who work tirelessly to defend this nation day in and day out. as secretary austin said, our cn and maintaining readiness is inextricably linked to their success. that's why this budget focuses on their economic stability and family support, the cores of our taking care of people it related to quality of life and quality of service such as a 4.5 percent pay raise for our servicemembers that builds on raises for the past three years in a row, including last year's

5.2 percent pay raise. with this budget, our servicemembers will have received an 18 percent increase in base pay during this administration. but we know the composition -- compensation -- excuse me -- is about more than just pay; it's about increasing the number oflx child development centers where military families can educate their children and the number of providers in those centers. it's about the conditions on ships and in barracks.■7 'o build healthy and resilient communities. and that's why the must-pay items in this budget also includ increases, facility investments in safe, quality famy hous@e/éig to enhance deterrence and improve critical operational infrastructure, making healthcare, healthy food and childcare more accessible, including increasing p f childcare providers, and building a safer workplace, including efforts to combat

sexual assault and to prevent suicide and eliminate barriers to care -- all must-haves, not nice-to-haves that enable our total force to thrive so that they maintain focus on their mission. and it doesn't end there. we are only able to cche natione support of the american people. we work to earn and maintain their trust each and every day by being good stewards of taxpayers' hard-earned dolrálar, of trust lies in our progress toward a clean audit. i'm proud to highlight that weeks ago, the u.s. marine corps became the first military service to achieve a clean audit. discipline and teamwork involved in achieving this milestone serves as a model for teams across the department moving forward and brings us e st closer to achieving an overall clean report by 2027, as required by law.e our

performance and optimize our processes, practices and systems across the department to deliver taxpayers as effectively and efficiently as possible. this budget advances our nation's defense in the face of an historically-challenging strategic resource and operational environment. our military readiness depends'. '25 and every year thereafter. so i cannot emphasize this enough: we need predictable, ad■dte funding, full stop. we cannot afford any more lost time- time that we cannot buy back.gress to work together to pass this budget request and last year's, and the national security supplemental too, with the requisite urgency that our nation's defense demands.

with the right tools and timely resources, we can meet all of our well-established defense priorities and outpace our competitors, as we've so carefully planned, and together, we will. thank you. admiral chris grady: thank you, secretary hicks, and thank you for your leadership. so on behalf of the chairman this briefing today, and it is a privilege to represent the 2.1 million total force soldiers, sailors, airmen and marines and guardians as we discuss the depamescal year 2025 president's budget request. like our f.y. '23 and '24 submissions before this, we are approaching th request with our national defense strategy and our national military strategy at the front of our mind as our now, our $849.8 billion budget prioritizes national security through integrated deterrence, campaigning and building enduring advantages to ensure that the joint force is able to defend the homeland, deter

strategic attacks and aggression, all while positioning the joint force to prevail in conflict, if necessary. our strategy-dven approach i challenges of today, while also modernizing the joint force to meet the challenges of tomorrow, delivering on the strategic discipline that is at the heart of the national military strategy. for integrated deterrence, the f.y. '25 budget requests funds critical to investments in our tid missile defense, along with space capabilities which will allow the joint force to address key modernization priorities, whilel kill webs, and it continues to invest in priority areas that will enable the department to■■ ace activities and to expand our

long-range fires capabilities. to support campaigning, thementn readiness initiatives for operations, training and maintenance, while also prioritizing exercises and experimentation atl allow the joint force to support our critical theaters, including indopacom and europe. we do this through investmentsne resilient communications and interoperability initiatives, so critical with our allies and partners. the joint force also looks to build out our enduring advantages. this includes investing in our people, the center of the universe. it is also a means for us to continue to fund innovation through replicator and other efforts. meanwhile, supporting the defense industrial base and supply chains using multiyearprs costs and provides a consistent demand signal to our industry partners. appropriations, i want to

reiterate that the joint force is best positioned to maintain advantages when we receive sufficient, timely, sustained and predictable funding. and a return to predictable and routine resourcing will help ensure that the joint force continues to meet the nation's national security needs. our current strategic advantage gives us confidence against any adversary. but our competitors and our adversaries have not stopped advancing their capabilities, so we must continue to adapt, advance and innovate at speed and at scale across all domains, prioritizing china as the pacing challenge and russia as an acute threat. our strategy-driven budget does exactly that.ed to invest in key areas to translate the national defense strategy, the national military strategy andts required to deter our strategic

while resourcing our strategy and making the necessary investments, the joint force can and will remain the most capable force in the world for decades to come. so, thank you for joining us day. madam secretary, thank you for your leadership and your words today. and again, it is my distinct privilege to be here and represent the commitment and the dedication of our entire jnt >> okay, now we'll go to questions. tara copp from a.p. >> hi, secretary hicks. i wanted to first ask about ukraine. a senior defense official who briefed us in advance of this budget said the dod is actually about $10 billion in the hole when it comes to ukraine. and i want■$oned to get your thoughts on how do you replenish that? how do you get the munition stocks back to where they need to be without a supplemental and and then, for admiral grady, i wanted to see if you could just talk to us about the readiness impact of having yet another c.r. on ship availability, on squadrons getting flight hours, the real-life impacts that you see in the forces.

deputy secretary hicks: so, thanks vermu o the supplemental, and in particular, the $10 billion replenishment that would be provided for under that supplemental. we don't foresee a likely alternative outside of the supplemental funding or having that money added into an appropriation bill in order to achieve the replenishment that so, we are absolutely laser-focused right now on making the case to the american people about the need for that supplemental, about the $50 billion roughly of investment that flows back to the u.s. economy and supports businesses, large and small, throughout the coy.■/own warfighters so that they can get the munitions they need in a timely manner when crises arise. >> so, what happens if you don't get the replenishment? you don't get the $10 billion? deputy secretary hicks: we don't get the $10 billion, we would

have to find other means. focused on the need for that supplemental. admiral grady: yes, continuing resolutions are always a and certainly, it requires us to make difficult decisions going forward. you're very familiar with things like new starts and how it might impact personnel initiatives or shipbuilding and ship maintenance, as you point out, munitions production, replenishment, those kind of things. as to our ability to maintain readiness, as the deputy said, readiness and athe forefront of our budget deliberations this year. and i'm pretty confident that we will be able to maintain things like flying hours and ship depot maintenance going forward. we have keea se eye on it though, because sometimes that becomes a bill payer. thanks to the secretary and the chairman, that has not to this point. and we'll watch it very closely. >> we will go to mike stone from reuters next. >> thanks.

madam secretary, i don't see a replicator. can you tell us what's going to be spent this year, next year on project replicator? and for admiral grady, can you tell us the top two things that there's a huge increase for instance, in long-range anti-ship missiles. should look at as sending a signal to deter china? deputy secretary hicks: sure. so, as i've said publicly before, the level of effort spending to think about in replicator in fy '24 is around $500 million, and then in fy '25 it's around $500 million. that's sort of the sum total of what we anticipate. this is a pathfinder. it's largely about reducing a process that the vice chairman and i run. but obviously, there aretting te actual thousands on the 18-, 24-month timeline out the door. it is my fervent view that

follow on to that is thethat is. that is about what the services are going to be able to do on autonomy once we're able to we through that initial investment. admiral grady: so, i think any adversary should look at the buetour things. the first is the continued sustainment of funding for the nuclear enterprise and the reprioritization and modernization of the nuclear triad, that shows you our stron. secondly is space. the deputy secretary talked about that.as we think to the fe and where we're going to win, i think it would become one of our great asymmetric advantages along with the undersea. so, i would look hard at what we're doing in space. and then i guess the third one would be the readiness that i just talked about, 147 billion out of 849, that's a big chunk of money in "■#adines■s. a fight tonight. >> okay, tony capaccio,

bloomberg.■g >> there's $500 million for taiwan, it's the first time ever on a pda. can you talk a little bit about the rational for it? is it a message to china? and why $500 million versus some other larger figure? and for admiral grady, as the head of the jroc, were there any thatts oversight council, were there any investments that your you pushed in the '25 budget to reflect lessons from the ukraine war that the united states needs to counter? deputy secretary hicks: so, on a presidential drawdown authority for taiwan, we were provided authority in the '24 ndaa, i believe '24. and so, this was our first the o be on cycle to put forward funding in support of that author we believe $500 million is executable. it represents a strong downpayment on the authorized level. and, obviously, fits what we need to fit within the fiscal responsibility act cap, so

that's how we got to the what it will do for us is allow us, just as the replenishment for ukraine allows us, it provides that backfill for the services for anything that we provide to taiwan. we then would be able to look at how to keep ourselves ready in those same areas. so, that $500 million will allow us to backfill ourselves for items that we might provide to taiwan. admiral grady: yes, lots to learn from what's happening in ukraine right now. and as you know, the jroc takes a look at all of those thing based on capability gaps that we might assess. we don't necessarily direct funding, it can't direct funding, but we identify gaps in which then can be that can lead to requirements. i think th to you are both manned and unmanned systems. and particularly in the unmanned systems, how we deliver effes on the battlefield whether they're isr, so sensing on the battlefield, or then delivering kinetic and non-kinetic effects.

both of those then are something i think we're really learning in the situation in ukraine. and by the way, it isn't justdo. >> [inaudible] budget you could point to reflecting what you just said? admiral grady: yes, i think if yo the work that they're doing to -- which is also playing out in the situation in the middle east, you can see where those requirements are translating into how we think about that bite. >> please. >> thank you. madam secretary, chairman rogers is already out with a statement saying that while this budget keeps up with the fiscal responsibility act, he says it's not keeping pace with inflation as a topline for our adversaries. i'd just like to get your thoughts on that because he's

this budget is structured right now puts us at a disadvantage in the future. and admiral, i'd like to ask you about the red sea operations. what is the current burn rate for operations there because if you already have, let's say, more than 200 uses of million excuse me -- 200 uses of missile anti-missile assistance, how --b how are you able to replenish that in the future given all the other constraints that you're under for ukraine as well? deputy secretary hicks: so the fiscal responsibility act is the law. we also think it represents an opportunity to get timely appropriations. and as i commented here, that's our priority. on time adequate, appropriate appropriations. the back and forth over topline inevitably will occur over the course of the coming congressional cycle.ess. but i just really have to stress what we believe in this department, whatever can get us to actually a bipartisan

agreement that produces appropriations is high priority for us. so if that's the fra, and as i said it is already the law, that is absolutely fine with us. i will also stress, as i said in my comments, we believe we need out-year growth thathat fr for 25 we can make the strategy work as long as we can realize that out-year growth, pa longer term investments that we have to grow capabilities, for example, after 2030. capabilities that would produce after 2030. admiral grady: yes, thank you. the situation on the red sea is a dynamic one, as you know. i'm sure you've been following it. you talk about the munitions expenditure rate, so certainly something that we watch very closely. very proud of the work of your joint force at sea and what theó have been able to do to protect shipping and really to back up the international rules-based order there and freedom of navigation.

but as to the burn rate at sea, we won't get into the specifics of, you know, what we're shooting and how much. suffice it to say, i'm very comfortable that we have enough of what we need and that we are a learning organization. and so as we apply the concepts of defense and depth, it isn't always an expensive sm2 missile taking shot at a uas. we've learned howo use ot systems and have rapidly adjusted to this concept of defense at depth.■1 and that's what gives me great confidence that we'll be able to sustain that as long as it takes to change the calculus over there. >> we're about out of time so i think we're going to wrap it up right there. i do appreciate everybody for coming and i want to thank deputy secretary hicks and vice chairman grady as well. thank you very much. deputy >> president biden fiscal year 5

which aims to provide a support for families while raising taxes on the wealthy. according to the white house it would restore additional funding to the social security and other federal agencies. ke johnson released a statement about the potential impact of the proposed budget. it reads in part, the price cap on bidens bu isreminder of the's insatiable appetite for reckless spending and democrats fiscal -- disregard for fiscal responsibility. tuesday, outng the newly released budget request. the proposallthy and aim to reduce the deficit by $3 trillion in the next decade. watch the hearing live starting at 10:15 am eastern on c-span

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