Monday, February 24, 2014

House passes bill demanding sequester details from the Obama administration

House passes bill demanding sequester details from the Obama administration

The House approved legislation on Wednesday that would give the Obama administration 30 days to provide details on how it will deal with a required $109 billion cut to 2013 spending, which the administration must impose under last year's debt-ceiling agreement.
The bill enjoyed broad support from both parties and passed easily in a 414-2 vote. The two "no" votes came from Democratic Reps. Eliot Engel (N.Y.) and Maurice Hinchey (N.Y.).
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Under the sequester, the Office of Management and Budget must by Jan. 2 cut $109 billion from 2013 mandatory and discretionary spending accounts unless Congress provides a different plan.The language is similar to language that the Senate approved in June as an amendment to the farm bill. That language calls on the Defense Department to report on the impact of defense sequestration by August 15.

The Senate language also calls on OMB to report in 30 days on the impact of sequestration, and President Obama to release a report on the impact of all sequestration across defense and non-defense spending.
Sen. John Thune (R-S.D.), who has a companion bill in the Senate, said he would keep pushing for a vote on his bill in the Senate.

"I applaud the House of Representatives for taking action to ensure that taxpayers and Congress know the president's plan to implement sequestration across government programs," he said. "I am committed to ensuring that this bill receives consideration in the Senate as soon as possible."
Republicans have complained that the Obama administration has yet to indicate how it would make these cuts, which were required after the so-called "supercommittee" failed to reach an agreement on deficit reduction.
"This bill is essentially about transparency," House Budget Committee Chairman Paul Ryan (R-Wis.) said during debate. "It's not re-litigating the budget fight, it's about making sure that we have as much information as we can to make the right decisions."

But the bill also would put pressure on the Obama administration and Democrats to redesign the sequester to spare the Defense Department from cuts. The author of the bill, House GOP Conference Chairman Jeb Hensarling (Texas), has indicated that he sees the bill this way, lamenting that Senate Majority Leader Harry Reid (D-Nev.) has said he would implement current law.
"Sen. Reid has said, 'I'm not going to back off sequestration,'" Hensarling said. "Thus, we are looking at a 10 percent real cut in our national defense."
House Armed Services Committee Chairman Buck McKeon (R-Calif.) went further, calling on Democrats to work with Republicans to avoid deep defense cuts. The House already has approved a bill doing just that, but the Senate has not moved any bill to rework the sequester.
"I ask that we come together on this issue," McKeon said on the House floor. "I ask the president to put forth some leadership. As commander in chief, he has the obligation to help us solve this problem."
Democrats said the only reason there is no agreement to adjust the sequester is because Republicans have refused to raise taxes, along with the spending reductions the GOP wants, as a way of helping to balance the budget.
Budget Committee ranking member Chris Van Hollen (D-Md.) said that Democrats agree with the need to replace the sequester. However, he said defense cuts were made part of the sequester precisely because Republicans thought that was a better option than raising taxes.

"Let's make no mistake," Van Hollen said. "The reason we're here is that our Republican colleagues deliberately chose as part of the sequester to put defense spending on the chopping block along with other spending. That was the choice above an offer to deal with revenue as part of the sequester."

But while Democrats called for a deal that includes cuts and revenue, Ryan rejected this approach.

"Government first, taxpayers second," Ryan said. "That's what the so-called 'balanced approach means.' It means keep feeding higher spending with higher taxes.

"The problem is ... the arithmetic just doesn't add up. You literally cannot tax your way out of this mess. Spending is the cause, we need to address our spending."

Ryan said that as of today, the transparency bill is needed because there is no resolution of this fight over how the sequester might be replaced.

"Since there's an absence of leadership on these critical fiscal issues from the president of the United States, from the Senate of the United States, at the very least, show us how this is going to work," Ryan said.

McKeon added that details about the pending cuts could give the defense industry a needed heads-up, because many of those companies are suffering from the uncertainty about defense spending levels.

"We are going to put thousands of people in jeopardy of [losing] their jobs," McKeon said. "This is already in motion."

House passage sends the bill to the Senate. The Obama administration had not released a statement on its opinion of the bill as of early Wednesday afternoon.
— This story was updated at 4:32 p.m. and again at 10:36 p.m.

Recall, too, that the president halted F-22 production at 187 planes, far short of the planned 381; cut the nation’s strategic nuclear forces by 30 percent and has floated proposals to cut the deterrent arsenal to as low as 300 warheads (about the size of China’s); withdrew from Iraq, over the objection

U.S. Weighs Sharp Cuts to Nuclear Stockpile

February 15, 2012
The White House and Pentagon are considering several proposals that would deeply cut the nation's stockpile of nuclear weapons, potentially to as low as 300 warheads under one such plan, according to a U.S. official.
The proposals haven't been presented to President Barack Obama but are being debated by lower-level officials on the national-security staff and in the Pentagon.
The U.S. official said the government isn't...

Obama Wants Defense Review, $400 Billion in Cuts

Obama Wants Defense Review, $400 Billion in Cuts

Defense Secretary Robert Gates (file photo)
Defense Secretary Robert Gates (file photo)
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The Pentagon says President Barack Obama’s desire to find $400 billion over the next 12 years in additional defense spending cuts will result in reductions in U.S. military capabilities.  U.S. Defense Secretary Robert Gates is launching a comprehensive review to develop options for the president to consider.

In his budget speech Wednesday, President Obama praised Secretary Gates for finding $400 billion in cuts based mainly on improved efficiency.  Then he said he wants the same amount of cuts again.

"We need to not only eliminate waste and improve efficiency and effectiveness, but conduct a fundamental review of America’s missions, capabilities, and our role in a changing world.  I intend to work with Secretary Gates and the Joint Chiefs on this review, and I will make specific decisions about spending after it’s complete." Obama said.

In a fact sheet, the White House specified that the president wants to hold defense spending increases below the inflation level, and save $400 billion between now and 2023.  Pentagon Press Secretary Geoff Morrell says the cuts would affect the defense department’s base budget, currently $553 billion per year.  At the current spending rate that would be a cut of about 6 1/2 per cent per year.  The cuts would not affect funding for the current wars.

Still, Morrell says reductions of that magnitude will have a real impact on U.S. defense capabilities, and will be considered carefully during the review the president ordered.

"The secretary has been clear that further significant defense cuts can not be accomplished without reducing force structure and military capability.  The comprehensive review of missions, capabilities and America’s role in the world will identify alternatives for the president’s consideration.  The secretary believes this process must be about managing risk associated with future threats and national security challenges, and identifying missions that the country is willing to have the military forego." Morrell said.

Morrell says Secretary Gates was not aware the president wanted the review until Tuesday, and is still putting together a plan with other senior officials.  The secretary did not speak in public Wednesday, but at a news conference in February he urged members of congress not to make defense cuts based on fixed amounts, but rather only based on the strategic and operational realities of today’s world.

"Suggestions to cut defense by this or that large number have largely become exercises in simple math, divorced from serious considerations of capabilities, risk, and the level of resources needed to protect this country's security and vital interests around the world," Gates said.

The press secretary, Geoff Morrell, says the Pentagon’s review of threats and capabilities will not be finished in time to impact the coming debate over the budget for next year.  Rather, he says, any strategy-based reductions will be part of the president’s budget proposal for 2013.

Remarks by the President on the Defense Strategic Review

The White House
Office of the Press Secretary

Remarks by the President on the Defense Strategic Review

The Pentagon
11:00 A.M. EST
THE PRESIDENT:  Good morning, everybody.  The United States of America is the greatest force for freedom and security that the world has ever known.  And in no small measure, that’s because we’ve built the best-trained, best-led, best-equipped military in history -- and as Commander-in-Chief, I’m going to keep it that way.
Indeed, all of us on this stage -- every single one of us -- have a profound responsibility to every soldier, sailor, airman, Marine and Coast Guardsman who puts their life on the line for America.  We owe them a strategy with well-defined goals; to only send them into harm’s way when it’s absolutely necessary; to give them the equipment and the support that they need to get the job done; and to care for them and their families when they come home.  That is our solemn obligation.
And over the past three years, that’s what we’ve done.  We’ve continued to make historic investments in our military -- our troops and their capabilities, our military families and our veterans.  And thanks to their extraordinary service, we’ve ended our war in Iraq.  We’ve decimated al Qaeda’s leadership.  We’ve delivered justice to Osama bin Laden, and we’ve put that terrorist network on the path to defeat.  We’ve made important progress in Afghanistan, and we’ve begun to transition so Afghans can assume more responsibility for their own security.  We joined allies and partners to protect the Libyan people as they ended the regime of Muammar Qaddafi.
Now we’re turning the page on a decade of war.  Three years ago, we had some 180,000 troops in Iraq and Afghanistan.  Today, we’ve cut that number in half.  And as the transition in Afghanistan continues, more of our troops will continue to come home.  More broadly, around the globe we’ve strengthened alliances, forged new partnerships, and served as a force for universal rights and human dignity.
In short, we’ve succeeded in defending our nation, taking the fight to our enemies, reducing the number of Americans in harm’s way, and we’ve restored America’s global leadership.  That makes us safer and it makes us stronger.  And that’s an achievement that every American -- especially those Americans who are proud to wear the uniform of the United States Armed Forces -- should take great pride in.
This success has brought our nation, once more, to a moment of transition.  Even as our troops continue to fight in Afghanistan, the tide of war is receding.  Even as our forces prevail in today’s missions, we have the opportunity -- and the responsibility -- to look ahead to the force that we are going to need in the future.
At the same time, we have to renew our economic strength here at home, which is the foundation of our strength around the world.  And that includes putting our fiscal house in order.  To that end, the Budget Control Act passed by Congress last year -- with the support of Republicans and Democrats alike -- mandates reductions in federal spending, including defense spending.  I’ve insisted that we do that responsibly.  The security of our nation and the lives of our men and women in uniform depend on it.
That’s why I called for this comprehensive defense review -- to clarify our strategic interests in a fast-changing world, and to guide our defense priorities and spending over the coming decade -- because the size and the structure of our military and defense budgets have to be driven by a strategy, not the other way around.  Moreover, we have to remember the lessons of history.  We can’t afford to repeat the mistakes that have been made in the past -- after World War II, after Vietnam -- when our military was left ill prepared for the future.  As Commander in Chief, I will not let that happen again.  Not on my watch.  
We need a start -- we need a smart, strategic set of priorities.  The new guidance that the Defense Department is releasing today does just that.  I want to thank Secretary Panetta and General Dempsey for their extraordinary leadership during this process.  I want to thank the service secretaries and chiefs, the combatant commanders and so many defense leaders -- military and civilian, active, Guard and reserve -- for their contributions.  Many of us met repeatedly -- asking tough questions, challenging our own assumptions and making hard choices.  And we’ve come together today around an approach that will keep our nation safe and our military the finest that the world have ever known.
This review also benefits from the contributions of leaders from across my national security team -- from the departments of State, Homeland Security and Veterans Affairs, as well as the intelligence community.  And this is critical, because meeting the challenges of our time cannot be the work of our military alone -- or the United States alone.  It requires all elements of our national power, working together in concert with our allies and our partners.
So I’m going to let Leon and Marty go into the details.  But I just want to say that this effort reflects the guidance that I personally gave throughout this process.  Yes, the tide of war is receding.  But the question that this strategy answers is what kind of military will we need long after the wars of the last decade are over.  And today, we’re fortunate to be moving forward from a position of strength.
As I made clear in Australia, we will be strengthening our presence in the Asia Pacific, and budget reductions will not come at the expense of that critical region.  We’re going to continue investing in our critical partnerships and alliances, including NATO, which has demonstrated time and again -- most recently in Libya -- that it’s a force multiplier.  We will stay vigilant, especially in the Middle East.
As we look beyond the wars in Iraq and Afghanistan -- and the end of long-term nation-building with large military footprints -- we’ll be able to ensure our security with smaller conventional ground forces.  We’ll continue to get rid of outdated Cold War-era systems so that we can invest in the capabilities that we need for the future, including intelligence, surveillance and reconnaissance, counterterrorism, countering weapons of mass destruction and the ability to operate in environments where adversaries try to deny us access.
So, yes, our military will be leaner, but the world must know the United States is going to maintain our military superiority with armed forces that are agile, flexible and ready for the full range of contingencies and threats.
We’re also going to keep faith with those who serve, by making sure our troops have the equipment and capabilities they need to succeed, and by prioritizing efforts that focus on wounded warriors, mental health and the well-being of our military families.  And as our newest veterans rejoin civilian life, we’ll keep working to give our veterans the care, the benefits and job opportunities that they deserve and that they have earned.
Finally, although today is about our defense strategy, I want to close with a word about the defense budget that will flow from this strategy.  The details will be announced in the coming weeks.  Some will no doubt say that the spending reductions are too big; others will say that they’re too small.  It will be easy to take issue with a particular change in a particular program.  But I’d encourage all of us to remember what President Eisenhower once said -- that “each proposal must be weighed in the light of a broader consideration:  the need to maintain balance in and among national programs.”  After a decade of war, and as we rebuild the source of our strength -- at home and abroad -- it’s time to restore that balance.
I think it’s important for all Americans to remember, over the past 10 years, since 9/11, our defense budget grew at an extraordinary pace.  Over the next 10 years, the growth in the defense budget will slow, but the fact of the matter is this:  It will still grow, because we have global responsibilities that demand our leadership.  In fact, the defense budget will still be larger than it was toward the end of the Bush administration.  And I firmly believe, and I think the American people understand, that we can keep our military strong and our nation secure with a defense budget that continues to be larger than roughly the next 10 countries combined.
So again, I want to thank Secretary Panetta, Chairman Dempsey, all the defense leaders who are on this stage, and some who are absent, for their leadership and their partnership throughout this process.  Our men and women in uniform give their very best to America every single day, and in return they deserve the very best from America.  And I thank all of you for the commitment to the goal that we all share:  keeping America strong and secure in the 21st century, and keeping our Armed Forces the very best in the world.
And with that, I will turn this discussion over to Leon and to Marty, who can explain more and take your questions.
So thank you very much.  I understand this is the first time a President has done this.  It’s a pretty nice room.  (Laughter.)
Thank you guys.
END
11:12 A.M. EST

U.S. keeping 11 aircraft carriers, Panetta says

U.S. keeping 11 aircraft carriers, Panetta says

Jan. 22, 2012 - 05:50PM   |   Last Updated: Jan. 22, 2012 - 05:50PM  |  
Defense Secretary Leon Panetta speaks to pilots Jan. 21 during flight operations aboard the aircraft carrier Enterprise. Enterprise is underway conducting a composite training unit exercise while preparing for its 22nd and final deployment.
Defense Secretary Leon Panetta speaks to pilots Jan. 21 during flight operations aboard the aircraft carrier Enterprise. Enterprise is underway conducting a composite training unit exercise while preparing for its 22nd and final deployment. (MC3 Scott Pittman / Navy)
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ABOARD THE AIRCRAFT CARRIER ENTERPRISE — Defense Secretary Leon Panetta told sailors aboard the country's oldest aircraft carrier on Saturday that the U.S. is committed to maintaining a fleet of 11 of the formidable warships despite budget pressures, in part to project sea power against Iran.
Panetta also told the crowd of 1,700 gathered in Enterprise's hangar bay that the ship is heading to the Persian Gulf region and will steam through the Strait of Hormuz in a direct message to Tehran.
Iran has warned it will block the Strait, a major transit point for global oil supplies, and bluntly told the U.S. not to send carriers into the Gulf. The U.S. has said it would continue to deploy ships there.
"That's what this carrier is all about," Panetta said. "That's the reason we maintain a presence in the Middle East. ... We want them to know that we are fully prepared to deal with any contingency and it's better for them to try to deal with us through diplomacy."
There was speculation that budget pressures would force the Pentagon to scale back the number of carriers, perhaps to 10, and Panetta's predecessor, Robert Gates, questioned maintaining 11 ships.
But Congress has expressed strong support for the current U.S. carrier fleet and has passed a law requiring the Defense Department to maintain 11 carriers.
After his speech, Panetta told reporters traveling with him that the department will be looking for cuts in other areas. He added, "Our view is that the carriers, because of their presence, because of the power they represent, are a very important part of our ability to maintain power projection both in the Pacific and in the Middle East."
Keeping 11 carriers, Panetta said, "is a long-term commitment that the president wants to put in place."
Panetta's remarks came amid the roar of fighter jets taking off and landing on the flight deck above, as Enterprise conducted training operations about 100 nautical miles off the coast of Georgia.
Big E and the other six ships in the Enterprise Carrier Strike Group will deploy to the Middle East in March. Its presence there will allow the U.S. to maintain two carrier strike groups in 5th Fleet, where they can support battle operations in Afghanistan, anti-piracy efforts and other missions in the area.
"The Big E is going to be an important symbol of that power in that part of the world," said Panetta, whose tour of the ship included stops on the bridge and the flight deck, as fighter jets catapulted off the ship.
It was Panetta's first visit to a carrier during operations at sea. He was to spend Saturday night on the ship.
The decision to maintain 11 carrier groups, Panetta said, is part of the Defense Department's five-year budget plan that will include $260 billion in savings. Overall, the Pentagon must come up with $487 billion over the next 10 years.
Norfolk, Va.-based Enterprise was built 50 years ago as the first nuclear-powered carrier, and is now the oldest active duty ship in America's fleet. The ship's upcoming deployment will be its 22nd and final tour, after which it is scheduled to be deactivated.
It is being replaced by Gerald R. Ford, which is the first in a new class of technologically advanced carriers. There will be about a 33-month gap before Ford is commissioned, but Congress has granted a waiver allowing the Navy to drop to 10 carriers for that period of time.
The Enterprise Carrier Strike Group includes the carrier itself'; Carrier Air Wing 1; Destroyer Squadron 2; the guided-missile cruiser Vicksburg; and the guided-missile destroyers Porter, James E. Williams and Nitze. Together they carry more than 5,000 personnel, with about 4,500 aboard Enterprise. The ship's personnel include fewer than 400 women.
The air wing includes more than 50 aircraft, ranging from fighter jets and helicopters to electronic warfare aircraft.
Enterprise has had a long and storied career. In October 1962, it helped set up a blockade around Cuba during the Cuban missile crisis. Enterprise also was dispatched to the North Arabian Sea after the Sept. 11 attacks, unleashing more than 800,000 pounds of ordnance during the early days of the Afghanistan war.
The White House is in the final stages of deciding specific cuts in the fiscal year 2013 budget, which President Obama will submit to Congress next month.
A sweeping defense strategy Obama unveiled earlier is intended to guide the budget cutting decisions. The eight-page document contained no details about how broad concepts for reshaping the military — such as focusing more on Asia and less on Europe — will translate into troop or weapons cuts.
The Army and Marine Corps are already planning substantial troop cuts and Panetta said last week that he will slash the number of Army brigades stationed in Europe from four to two.

High-Risk Series:

High-Risk Series:

An Update

GAO-13-283: Published: Feb 14, 2013. Publicly Released: Feb 14, 2013.

Additional Materials:

Contact:

J. Christopher Mihm
(202) 512-3236
mihmj@gao.gov

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

What GAO Found

In February 2011, GAO detailed 30 high-risk areas. Sufficient progress has been made to remove the high-risk designation from two areas.
  • Management of Interagency Contracting. Improvements include (1) continued progress made by agencies in addressing identified deficiencies, (2) establishment of additional management controls, (3) creation of a policy framework for establishing new interagency contracts, and (4) steps taken to address the need for better data on these contracts.
  • Internal Revenue Service Business Systems Modernization. The Internal Revenue Service (IRS) made progress in addressing significant weaknesses in information technology and financial management capabilities. IRS delivered the initial phase of its cornerstone tax processing project and began the daily processing and posting of individual taxpayer accounts in January 2012. This enhanced tax administration and improved service by enabling faster refunds for more taxpayers, allowing more timely account updates, and faster issuance of taxpayer notices. In addition, IRS has put in place close to 80 percent of the practices needed for an effective investment management process, including all of the processes needed for effective project oversight.
While these two areas have been removed from the High Risk List, GAO will continue to monitor them.
This year, GAO has added two areas.
  • Limiting the Federal Government’s Fiscal Exposure by Better Managing Climate Change Risks. Climate change creates significant financial risks for the federal government, which owns extensive infrastructure, such as defense installations; insures property through the National Flood Insurance Program; and provides emergency aid in response to natural disasters. The federal government is not well positioned to address the fiscal exposure presented by climate change, and needs a government wide strategic approach with strong leadership to manage related risks.
  • Mitigating Gaps in Weather Satellite Data. Potential gaps in environmental satellite data beginning as early as 2014 and lasting as long as 53 months have led to concerns that future weather forecasts and warnings—including warnings of extreme events such as hurricanes, storm surges, and floods—will be less accurate and timely. A number of decisions are needed to ensure contingency and continuity plans can be implemented effectively.
In the past 2 years notable progress has been made in the vast majority of areas that remain on GAO’s High Risk List. This progress is due to the combined efforts of the Congress through oversight and legislation, the Office of Management and Budget through its leadership and coordination, and the agencies through their efforts to take corrective actions to address longstanding problems and implement related GAO recommendations.

Why GAO Did This Study

The federal government is the world’s largest and most complex entity, with about $3.5 trillion in outlays in fiscal year 2012 funding a broad array of programs and operations. GAO maintains a program to focus attention on government operations that it identifies as high risk due to their greater vulnerabilities to fraud, waste, abuse, and mismanagement or the need for transformation to address economy, efficiency, or effectiveness challenges. Since 1990, more than one-third of the areas previously designated as high risk have been removed from the list because sufficient progress was made to address the problems identified.
This biennial update describes the status of high-risk areas listed in 2011 and identifies any new high-risk area needing attention by Congress and the executive branch. Solutions to high-risk problems offer the potential to save billions of dollars, improve service to the public, and strengthen the performance and accountability of the U.S. government.

What GAO Recommends

This report contains GAO’s views on progress made and what remains to be done to bring about lasting solutions for each high-risk area. Perseverance by the executive branch in implementing GAO’s recommended solutions and continued oversight and action by Congress are essential to achieving progress. GAO is dedicated to continue working with Congress and the executive branch to help ensure additional progress is made.
For more information, contact J. Christopher Mihm at (202) 512-6806 or mihmj@gao.gov.

High-Risk Series:

High-Risk Series:

An Update

GAO-13-283: Published: Feb 14, 2013. Publicly Released: Feb 14, 2013.

Additional Materials:

Contact:

J. Christopher Mihm
(202) 512-3236
mihmj@gao.gov

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

What GAO Found

In February 2011, GAO detailed 30 high-risk areas. Sufficient progress has been made to remove the high-risk designation from two areas.
  • Management of Interagency Contracting. Improvements include (1) continued progress made by agencies in addressing identified deficiencies, (2) establishment of additional management controls, (3) creation of a policy framework for establishing new interagency contracts, and (4) steps taken to address the need for better data on these contracts.
  • Internal Revenue Service Business Systems Modernization. The Internal Revenue Service (IRS) made progress in addressing significant weaknesses in information technology and financial management capabilities. IRS delivered the initial phase of its cornerstone tax processing project and began the daily processing and posting of individual taxpayer accounts in January 2012. This enhanced tax administration and improved service by enabling faster refunds for more taxpayers, allowing more timely account updates, and faster issuance of taxpayer notices. In addition, IRS has put in place close to 80 percent of the practices needed for an effective investment management process, including all of the processes needed for effective project oversight.
While these two areas have been removed from the High Risk List, GAO will continue to monitor them.
This year, GAO has added two areas.
  • Limiting the Federal Government’s Fiscal Exposure by Better Managing Climate Change Risks. Climate change creates significant financial risks for the federal government, which owns extensive infrastructure, such as defense installations; insures property through the National Flood Insurance Program; and provides emergency aid in response to natural disasters. The federal government is not well positioned to address the fiscal exposure presented by climate change, and needs a government wide strategic approach with strong leadership to manage related risks.
  • Mitigating Gaps in Weather Satellite Data. Potential gaps in environmental satellite data beginning as early as 2014 and lasting as long as 53 months have led to concerns that future weather forecasts and warnings—including warnings of extreme events such as hurricanes, storm surges, and floods—will be less accurate and timely. A number of decisions are needed to ensure contingency and continuity plans can be implemented effectively.
In the past 2 years notable progress has been made in the vast majority of areas that remain on GAO’s High Risk List. This progress is due to the combined efforts of the Congress through oversight and legislation, the Office of Management and Budget through its leadership and coordination, and the agencies through their efforts to take corrective actions to address longstanding problems and implement related GAO recommendations.

Why GAO Did This Study

The federal government is the world’s largest and most complex entity, with about $3.5 trillion in outlays in fiscal year 2012 funding a broad array of programs and operations. GAO maintains a program to focus attention on government operations that it identifies as high risk due to their greater vulnerabilities to fraud, waste, abuse, and mismanagement or the need for transformation to address economy, efficiency, or effectiveness challenges. Since 1990, more than one-third of the areas previously designated as high risk have been removed from the list because sufficient progress was made to address the problems identified.
This biennial update describes the status of high-risk areas listed in 2011 and identifies any new high-risk area needing attention by Congress and the executive branch. Solutions to high-risk problems offer the potential to save billions of dollars, improve service to the public, and strengthen the performance and accountability of the U.S. government.

What GAO Recommends

This report contains GAO’s views on progress made and what remains to be done to bring about lasting solutions for each high-risk area. Perseverance by the executive branch in implementing GAO’s recommended solutions and continued oversight and action by Congress are essential to achieving progress. GAO is dedicated to continue working with Congress and the executive branch to help ensure additional progress is made.
For more information, contact J. Christopher Mihm at (202) 512-6806 or mihmj@gao.gov.

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