Federal Update

FY22 Continuing Resolution (CR) and Appropriations / FY23 Budget / Supplemental

• Final passage of the FY22 Omnibus is expected next Tuesday in the Senate after the House passed the Omnibus bill Wednesday night.
• The spending bills include $13.6 billion in Ukrainian aid, which includes $1.5 million intended for refugees leaving their homes and seeking safety in neighboring Poland.  
• FY23 President’s Budget Request (FY23 PBR):
  • President’s Budget is still expected to be released on 23 Mar. In the OMB/White House docs, the FY22 column of FY23 Budget will be based on full-year CR levels. Agencies are apparently making their own decisions about their Congressional Justification of Appropriations, with some posting on the 23rd using the same FY22 base as the OMB docs, some using FY22 PB, and others waiting for FY 23 enacted. Appropriations staff will be asking agencies to rebase the line after FY22 is enacted.
  • DoD is not expected to release its Justification books until at least four weeks after the FY22 Budget is enacted (late April).

Defense Authorization

• DoD is finishing the update to National Defense Strategy (NDS) due to Russia's invasion of Ukraine.
• Sen. Inhofe (R-OK) is out this week finishing up quarantining after testing positive for COVID in late February and plans to be back in D.C. on Mon, 14 March.
• Robert 'Otis' Winkler has departed the SASC. No replacement has been announced, but Adam Trull is expected to cover Otis' Space portfolio, and Rick Berger is expected to cover Air Forces programs.
• SASC Member request deadlines:
  • Member Interest Letter (Policy Items) are due by Fri, 8 April at 5 pm.
  • Member Interest Letter (Budget Items) are due two weeks after budget release but NLT Fri, 6 May at 5 pm.
• HASC Member request deadliness for policy and appropriations is 1 April at 5 pm.
• SASC plans to mark up their bill 13-16 Jun (about three weeks behind the typical schedule).
• Still waiting on HASC to confirm its markup dates but anticipating them to occur the week before the SASC markup (7-9 June).

S.1260 - United States Innovation and Competition Act (USICA) / H.R. 4521 Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (COMPETES) Act

• Four corner conversations are ongoing with various committees of interest – some have been more productive than others.
• Rules have not been set for conference negotiations, though negotiators are trying to reach an agreement to skip procedural hoops in the next couple of weeks.
• While conversations are slow-going, the Administration and Commerce Sec. Raimondo continues pushing for a deal.
• After completing the FY22 Omnibus, there may be floor time to start the formal steps for conferences.

​Supreme Court Nomination

• Confirmation hearings for the Supreme Court nomination of Judge Ketanji Brown Jackson, D.C. Court of Appeals, will begin on 21 March in the Senate Judiciary Committee.
• Democratic leaders set a goal of 8 April for a final Senate vote.

​Budget Reconciliation

• Senate Democrats are holding a policy retreat in D.C. on Wed (9 March), where they are expected to discuss budget reconciliation efforts.
• On Wed (2 March), Sen. Manchin (D-WV) said he could support a reconciliation package that reforms the tax code and lowers the cost of prescription drugs if the money raised is split between spending on new climate change proposals, deficit reduction, and fighting inflation.
• Sen. Manchin (D-WV) also said there is broad agreement among Democrats on passing legislation to reduce the cost of prescription drugs and suggested that modeling a program on what the V.A. does to negotiate lower prices for military veterans would be a good idea. He emphasized that half of the raised revenue should be used to lower the deficit and fight inflation, while the other half should be spent on whatever 10-year program has the most support within the Democratic caucus.
• In a 7 March Dear Colleague, Senate Majority Leader Schumer (D-NY) said the Senate Finance Committee would hold hearings this week on lowering the cost of prescription drugs.

Buy American

• On 7 March, the Federal Acquisition Regulatory Council (FAR Council) published a final rule that increases domestic content requirements for Federal government procurements governed by the Buy American Act (BAA). 
• The FAR Council issued the final rule pursuant to President Biden's Executive Order of 25 January 2021 (EO 14005), which outlined the Biden Administration's policy that U.S. government procurement should "maximize the use of goods, products, and materials produced in, and services offered in, the United States." 
• The final rule also establishes enhanced price preferences under the BAA for domestic goods that the Federal government designates as "critical" to U.S. supply chains.

Russia Sanctions

• President Biden has decided to ban Russian energy imports as soon as today (8 March).
• Support had been growing in Congress for a bipartisan bill to ban Russian energy.

​Defense Nominee Tracker

• On 1 March, the Senate confirmed Melissa Dalton to be Assistant Secretary of Defense for Homeland Defense and Global Security Affairs, and John Plumb to be Assistant Secretary for Space Policy, Department of Defense.
• Sen. Hawley (R-MO) continues to object to unanimous consent on DOD civilian nominations due to a lack of accountability on the Afghan withdrawal.
• Reported out of committee, awaiting Senate floor vote (3)
  • Rachel Jacobson to be the Assistant Secretary of the Army for Installations, Energy, and Environment.
  • Ashish Vazirani to be the Deputy Undersecretary of Defense for Personnel and Readiness.
  • Alex Wagner to be the Assistant Secretary of the Air Force for Manpower and Reserve Affairs, Department of Defense.
• Received Senate Armed Services Committee hearing, awaiting committee vote (9)
  • Brenda Sue Fulton to be the Assistant Secretary of Defense for Manpower and Reserve Affairs.
  • Peter Beshar to be the Air Force General Counsel.
  • Frank Calvelli to be an Assistant Secretary of the Air Force for Space Acquisition and Integration (new position).
  • Ravi Chaudhary to be Assistant Secretary of the Air Force for Installations, Energy, and the Environment.
  • Christopher Lowman to be the Assistant Secretary of Defense for Sustainment.
  • Lester Martinez-Lopez to be the Assistant Secretary of Defense for Health Affairs.
  • Franklin Parker to be the Assistant Secretary of the Navy for Manpower and Reserve Affairs.
  • Agnes Schaefer to be the Assistant Secretary of the Army for Manpower and Reserve Affairs.
  • Robert Phillip Storch to be the Department of Defense Inspector General.
• Nominated, awaiting Senate Armed Services Committee hearing (4)
  • Marvin Adams to be the Department of Energy, Deputy Administrator for Defense Programs, National Nuclear Security Administration.
  • Kristyn Jones to be the Assistant Secretary of the Air Force for Financial Management and Comptroller.
  • Erik Raven to be the Under Secretary of the Navy.
  • Bill LaPlante to be the Undersecretary of Defense for Acquisition and Sustainment.

9 March 2022 House Armed Services Committee

​On Wednesday, 9 March 2022, the House Armed Services Committee held a hearing to discuss the U.S. military's current activities, goals, and challenges in the Indo-Pacific Region. The hearing broadly focused on addressing U.S. relations with China. There was general agreement that China remains the most threatening adversary to the United States. Democrats and Republicans were in agreement that the military needs to remain vigilant now more than ever in light of the Ukraine/Russian conflict. The hearing also focused on the U.S.'s commitment to protecting Taiwan and exploring the possibilities of conflict with China in that area. The witness panel consisted of representatives from the Department of Defense, Indo-Pacific Command, and the United Nations. 

For more information on the committee meeting, click the button below.

9 March 2022 House Armed Services Committee Hearing