Senate subcommittee presses DOD on infrastructure investment, 4% plant-replacement target
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Summary
Senators pressed Defense officials about the Department of Defense's infrastructure condition, the congressional FY25 directive to reach 4% facility sustainment, restoration and modernization (FSRM) of plant replacement value by 2030, and ways to speed military construction amid NEPA and project-execution delays.
The Senate Armed Services Subcommittee on Readiness and Management Support heard testimony Tuesday on the Department of Defense's plans to modernize aging military installations and meet Congress's FY25 directive to achieve 4% facility sustainment, restoration and modernization (FSRM) of plant replacement value by 2030.
The requirement to reach a 4% FSRM rate was a central focus of the hearing because subcommittee leaders said crumbling infrastructure has driven up costs and harmed readiness. "I would like to hear from each of you on the implementation of the FY25 national defense authorization requirement to achieve 4% plant replacement value by 2030," said Sen. Dan Sullivan, the subcommittee chairman. Assistant Secretary of Defense for Energy, Installations and Environment Melissa Marx said the department is prioritizing that mandate and included increased funding in the President's FY26 request: "Going forward, with some big issues to tackle, such as meeting Congress's directive to significantly increase our FSRM investment to at least 4% of plant replacement value," Marx told the panel.
Witnesses described current and planned budget lines the department believes will support the goal. Marx told senators the FY26 budget request included roughly $17.9 billion in military construction (MILCON) and $27.3 billion proposed for FSRM; she also cited $3.8 billion for installation and operational energy. Army witness Dr. Patrick Waxman said the Army's FY26 FSRM request is roughly 25% higher than in FY24 and that the Army is aiming to recover previously deferred work: "The FY26 FSRM budget for the Army is gonna be 25% higher than it was even in FY24," Waxman said.
Senators pressed officials on administrative barriers that lengthen project timelines. Sullivan and others asked about the pace of National Environmental Policy Act (NEPA) reviews and litigation, citing a recent Supreme Court decision (Eagle County) that clarified agency obligations under NEPA as an opportunity to streamline reviews. Marx said the department is reviewing options to shorten NEPA timelines while meeting legal obligations and exploring use of categorical exclusions and other tools to accelerate projects.
Members also discussed procurement and delivery models intended to shorten construction schedules, including accelerated design-build, progressive design-build, greater use of Other Transaction Authorities (OTA) for prototyping and industrialized construction, and bundling projects to achieve efficiency. Marx said her office is evaluating unified facilities criteria and opportunities to apply artificial intelligence to speed delivery and reduce cost.
Why it matters: Lawmakers said accelerating infrastructure repairs is essential to ensure troop readiness and to prevent costs that come from prolonged deferred maintenance. Several senators warned that delays and oversaturation of low-priority real estate increase lifecycle costs and divert funding from warfighting priorities.
Committee directions and next steps included commitments from service witnesses to provide inventory and execution data. Waxman told the panel the Army is finalizing internal numbers on planned versus executed FSRM projects and pledged to deliver that information to the committee. Marx agreed to follow up with specific examples of accelerated-design and project-bundling pilots that could be implemented across services.
The hearing did not produce any formal votes or new statutory changes; senators said they expect follow-up briefings and formal responses on requested data within the committee's deadlines.
