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Summary

The VH-71 program is intended provide 23 new presidential helicopters to replace the current fleet of 19 aging presidential helicopters. As part of its proposed FY2010 Department of Defense (DOD) budget, the Administration is proposing to terminate the VH-71 program in response to substantial cost growth and schedule delays in the program. As a successor to the VH-71 program, the Administration is proposing to begin a new presidential helicopter program in FY2010 called the VXX Presidential Helicopter Program. On May 15, 2009, the DOD acquisition executive issued a memorandum directing that the VH-71 program be cancelled. The Navy announced the same day that it had issued a stop-work order on the VH-71 program. On June 1, 2009, the Navy announced that it will terminate the main contract for the VH-71 program. The Administrations proposed termination of the VH-71 program is one of the highest-profile program cancellations or reductions in the proposed FY2010 DOD budget, and has emerged as a significant item of discussion in the debate on FY2010 defense funding. The issue for Congress is whether to approve the Administrations proposal to terminate the VH-71 program and initiate a successor VXX program, or pursue another course, such as continuing the VH-71 program in some restructured form. Congresss decision on the issue could affect DOD funding requirements, the schedule for replacing the 19 older helicopters, and the helicopter industrial base. This report will be updated as events warrant.

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