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October 07, 2015

Senate Passes Defense Bill with King-Backed HUBZone Improvements & Additional Shipbuilding Authorizations

WASHINGTON, D.C. – With the support of U.S. Senator Angus King (I-Maine), the U.S. Senate today passed the 2016 National Defense Authorization Act (NDAA). The bill includes provisions authored by Senator King that increase authorizations for the construction of DDG-51 Arleigh Burke Class Destroyers, which are built at Bath Iron Works, and that improve the Small Business Administration’s HUBZone program, which helps revitalize former military bases like the former Brunswick Naval Air Station.

            “The NDAA is a vital bill that sets policy for the Defense Department and bolsters our national security,” Senator King said. “And I’m pleased to say that this legislation continues to recognize the important role that Maine plays in supporting our national defense.”

The legislation, which passed today by a vote of 70-27, authorizes almost $4 billion for Navy destroyer programs, including $433 million for the construction of DDG-1000 Zumwalt-class destroyers, and $3.1 billion for the procurement of two DDG-51 Arleigh Burke-class destroyers, one of which will be built at Bath. Importantly, the bill also includes $400 million in incremental funding secured by Senator King for an additional DDG-51 that the Navy could procure in the next three years, potentially at Bath Iron Works.

            “Conflicts and ongoing tensions across the globe continue to require a strong American naval presence,” Senator King said. “By making critical investments in shipbuilding – including an additional $400 million authorization for another DDG-51 that Bath Iron Works could build – this bill makes progress in strengthening our naval fleet and supports the highly-skilled men and women of BIW whose work is invaluable to our Navy.”

The bill also includes a provision authored by Senator King that improves the eligibility criteria of HUBZones located at former U.S. military installations closed through the Base Realignment and Closure (BRAC) process. The provision expands the boundaries of base closure HUBZones to allow businesses to draw employees from surrounding areas to meet the program’s 35 percent employee residency requirement. The amendment would also extend the period of time for which a closed base is eligible for HUBZone status from five years after closure to a minimum of eight years. Senator King and Senator Susan Collins introduced standalone legislation earlier this year, and during the Senate Armed Services Committee’s consideration of the bill, Senator King was able to insert the provision.

“The HUBZone program is an important tool that helps revitalize former military bases,” Senator King said. “And by improving the eligibility criteria of the program, as my provision does, redevelopment authorities at former installations like Brunswick Naval Air Station will be better positioned to attract new businesses, generate economic activity, and create more jobs that will benefit the entire region.”

The bill also includes a federal property management provision that authorizes a pilot program spearheaded by Senator King and Senator Tom Carper (D-Del.) that would encourage more efficient federal property management by streamlining the process by which the U.S. Army disposes of unused or underutilized properties. It also rejects another BRAC round.

The 2016 NDAA authorizes funding for the Department of Defense as well as national security programs under the Department of Energy. The legislation provides for the pay and benefits earned by members of the military and their families as well as for national defense including authorization of funds for counter-ISIL operations in Iraq and Syria, and represents a broad, bipartisan consensus about America’s national security goals, resources, and policies.

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