September 8 2017

In this issue:
Temporary Budget Deal
Exclude Defense from Sequestration Now!
Senate Expected to Vote on NDAA Soon
President Caps Military Pay
9/11/01 Remembered

Temporary Budget Deal
At a meeting in the White House, legislative leaders and President Trump have agreed to extend funding the government with a Continuing Resolution (CR) that will raise the debt ceiling through December 15, 2017. The provisions implementing the agreement will be attached to a relief package to cover the cost of Hurricane Harvey that devastated large portions of Southeast Texas (H.R.601). The agreement does NOT address automatic spending caps for the FY 2018 Defense budget (see story below). These mandated punitive cuts in Defense spending need to be eliminated or significantly modified. The bill passed the House with only the hurricane relief provisions. The additional provisions were added to the bill in the Senate. The House is expected to approve the Senate amendments next week. If the House approves the amended bill, it will be sent to President Trump to be signed into law.  

Exclude Defense from Sequestration Now!
The President's proposed budget and both the House and Senate versions of the FY2018 National Defense Authorization (NDAA) bills violate the spending caps of the Budget Control Act (BCA). This sets strict caps on both defense and non-defense spending. In the past, Congress managed to make short-term compromises lifting the caps for a couple of years at a time. No such agreement applies to FY2018 NDAA.

Budget cuts mandated by the BCA pose a threat to national security and will substantially impact FRA member's pay and benefits. These automatic cuts, known as sequestration, require 50 percent come from Defense, even though Defense makes up only 17 percent of the federal budget. These cuts were intended to be so punitive that Congress and the Administration would be forced to work together to find reasonable alternatives. Unfortunately, this has not occurred. Congress, and the White House have been consumed with partisan bickering and have been unable to come to a long-term budget agreement without sequestration cuts. Members are strongly urged to use the online FRA Action Center to ask their legislators to exclude Defense spending from sequestration. 

Senate Expected to Vote on NDAA Soon
The Senate is expected to debate, consider amendments and vote on its version of the FY2018 NDAA (S.1519). The current bill allows substantial TRICARE fee increases by repealing the so-called grandfather clause that excluded retirees who retired before January 1, 2018 from any fee increases. The bill also increases pharmacy co-pays, provides for a smaller active duty pay increase (2.1% vice 2.4%) and makes more cuts to Basic Allowance for Housing (BAH).  

The House has already passed its version of the NDAA (H.R.2810) without many of these onerous provisions. Once the Senate passes its bill, a conference committee will be appointed to resolve the differences between the two bills. The conference committee bill will be voted on by both chambers and if approved, sent to the President to be signed into law or vetoed. Members are urged to use the FRA Action Center online to ask their Senators to oppose these provisions in the Senate bill.

President Caps Military Pay
The White House officials recently announced they will reduce the upcoming annual military active duty FY2018 pay increase from 2.4 percent to 2.1 percent. The President is empowered to change the annual military pay increase by executive order if he chooses.  In a letter to House and Senate leaders, President Trump said the moves are designed to "put our nation on a sustainable fiscal course". The announcement also includes a cut to annual federal civilian pay increases. 

FRA is troubled by the current Administration's efforts to limit annual increases in military compensation to less than the Employment Cost Index (ECI).  FRA strongly supports annual pay increases that are at least equal to the Employment Cost Index (ECI) to ensure that military pay keeps pace with civilian compensation. Members can weigh in on this issue by using the FRA Action Center, and search for "Oppose Onerous Provisions in Senate NDAA (S.1519)"

9/11/01 Remembered
This Monday marks the sixteenth anniversary of the September 11, 2001 attacks on the United States.  It is one of the most significant events to happen in our life time. The coordinated suicide attack was launched by a terrorist organization with no real military objectives and included our largest city-our nation's Capital, as one of the targets. The only real goal was to kill as many Americans as possible. Since 9/11 America has launched a "global war on terrorism" that is still ongoing today.  President Trump recently signed into law, authorization legislation for a Global War on Terrorism Memorial to be built in Washington, D.C. Please take the time to remember the ordinary citizens that 16 years ago, rose to the challenge and responded with extraordinary acts of courage. We should also pay tribute to the men and women in uniform who keep us safe, fighting terrorism around the world today.

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