To achieve budgetary savings by terminating or limiting certain Department of Defense programs, by reducing the scope of the Stockpile Stewardship Program of the Department of Energy, and by reducing arms transfer subsidies.

[AI summary unavailable — showing source text] Prohibits funds from being appropriated to the Department of Defense (DOD) for any fiscal year after 1997 for research, development, test, and evaluation or for procurement for: (1) the Navy F/A-18E/F aircraft program; (2) the Marine Corps V-22 Osprey aircraft program; and (3) the Air Force F-22 aircraft program. Prohibits the use of funds after FY 1997 for the production of Trident II (D-5) missiles for the Navy. Requires the Secretary of Defense (Secretary) to retire eight Trident I submarines during FY 2000 through 2003. Prohibits the Secretary of the Air Force from procuring more than eight C-17 aircraft in each of FY 1998 through 2000. Directs the Secretary to reduce: (1) by FY 2003 the DOD strategic nuclear force to include a maximum of 300 Minuteman II intercontinental ballistic missiles; and (2) DOD theater missile defense programs by terminating the Navy sea-based area theater missile defense system, the Army Medium Extended Air Defense System, the Air Force airborne laser for destruction of missiles system, and the Space and Missile Tracking System. Prohibits any funds from being appropriated to DOD for fiscal years after 1997 for assistance to Israel for development of t…