The continuing resolution (CR) released late Tuesday includes carveouts for the Ohio-class submarine replacement program, KC-46 tanker, AH-64 Apache and UH-60 Black Hawk helicopters, weather satellites and certain NASA space exploration programs.
The CR, if left intact and signed into law, would extend fiscal year 2016 appropriations through April 28. Many congressional Republicans are supporting the CR to allow the party to pursue its priorities once President-elect Donald Trump takes office on Jan. 20. The House will vote on the CR Thursday. 
The CR provides authority needed to begin advance procurement and detailed design work for the Ohio-class submarine replacement program, which is scheduled to begin in January. The bill provides $773 million from the Navy shipbuilding and conversion procurement fund. This program is to build a new class of 12 ballistic missile submarines (SSBN) to replace the Navy’s current force of 14 Ohio-class subs. General Dynamics [GD] Electric Boat is the prime contractor for Ohio-class replacement.
The CR provides authority needed to enter into multiyear procurement contracts for AH-64E Apaches and for UH-60M/HH-60M Black Hawk helicopters to mitigate schedule delays and anticipated cost increases. This provision is valid until the enactment of a FY ’17 appropriations bill. Boeing [BA] develops the Apaches while Sikorsky [LMT] makes the Black Hawk.
The bill provides funds for the KC-46 aerial refueling tanker up to the rate of operations necessary to support the production rate specified in the Air Force’s FY ’17 budget request. Boeing develops the KC-46. The bill also allows NOAA spending flexibility to maintain development of the next-generation of polar orbiting weather satellites, the Joint Polar Satellite System (JPSS). JPSS is a joint NASA-NOAA effort.
The CR provides NASA spending flexibility to maintain development schedules of the Space Launch System (SLS), exploration ground systems and the Orion crew vehicle. Boeing is the prime contractor for SLS while Lockheed Martin is the prime contractor for Orion.
One program that didn’t get a carveout in the CR is Future Vertical Lift (FVL). Richard Kretzschmar, project manager for Improved Turbine Engine Program (ITEP) and FVL, Army program executive officer (PEO) for aviation, said Tuesday at a Defense One event that there is zero funding under the CR due to FVL’s status as a new start. FY ’17 is the first year of funding for the program as a program of record. Kretzschmar said FVL’s analysis of alternatives (AoA) has money, so organizations involved in the AoA can get started. FVL is the Pentagon’s plan to replace all its helicopters with next-generation rotorcraft. The Army requested $10 million for FVL in FY ’17.
“The CR is definitely an issue,” Kretzschmar said. “The longer it lasts, the worse it is for the program.”
The CR establishes expedited procedure in the Senate for consideration of a waiver to allow retired Marine Gen. James Mattis to serve as defense secretary. The bill allows someone retired from active duty within seven years from retirement, but not earlier than three years from retirement, to serve as defense secretary. This would apply to only the first person appointed as the next defense secretary and no one else.
In other congressional news, the Senate voted to begin debate on the FY ’17 defense authorization bill. This means it has 30 hours to debate the bill but can vote to end debate and vote on the bill itself. A vote on the bill is expected no later than Thursday.