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US. GOVERNMENT
INFORMATION
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                   DEPARTMENT OF DEFENSE APPROPRIATIONS
                                  FOR FISCAL YEAR 2011


                                  WEDNESDAY, APRIL 21, 2010

                                                          U.S. SENATE,
                       SUBCOMMITTEE   OF THE COMMITTEE  ON APPROPRIATIONS,
                                                               Washington, DC.
                    The  subcommittee met  at 10:30 a.m., in room SD-192, Dirksen
                    Senate Office Building, Hon. Daniel K. Inouye (chairman) pre-
                    siding.
                    Present: Senators Inouye, Dorgan, Feinstein, Bond, and Shelby.
                                   DEPARTMENT OF DEFENSE
                                     MISSILE DEFENSE  AGENCY
                   STATEMENT  OF LIEUTENANT  GENERAL  PATRICK  J. O'REILLY, DIREC-
                       TOR
                         OPENING  STATEMENT  OF CHAIRMAN DANIEL K. INOUYE
                    Chairman   INOUYE. I'm pleased to welcome Lieutenant General
                  Patrick O'Reilly, Director of the Missile Defense Agency (MDA), be-
                  fore the subcommittee to discuss the fiscal year 2011 budget re-
                  quest for missile defense.
                    The  request before us today continues the administration's ef-
                  forts to achieve three goals: sustaining homeland defense against
                  intercontinental ballistic missiles; increasing focus on defense
                  against regional threats; and procuring and fielding proven tech-
                  nologies.
                    In fiscal year 2011, MDA's budget requests totaled $8.4 billion,
                    a $500 million increase over fiscal year 2010. And I'm pleased to
                  note that the request includes increases of $300 million for ground-
                  based missile defense (GMD), $245 million for aegis ballistic mis-
                  sile defense, and $160 million for theater high altitude defense over
                  the levels approved by fiscal year 2010.
                    These  near-term programs are providing missile defense assets
                  today, a capability that this subcommittee strongly supported for
                  many  years. However, even these near-term programs have  chal-
                  lenges. First, the GMD  program had  a failed intercept test last
                  January  that is still under review. Industrial-based challenges
                  threaten the continued production of the ground-based interceptor
                  missiles. And  there is concern over whether  the program  has
                  enough  test articles to ensure its reliability out to 2032.
                    Second, because of the continued success and steadfast progress
                  of the aegis BMD   system, the administration is now demanding
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