On October 21, 1977, President Jimmy Carter nominated Chase as Deputy Assistant Secretary of Defense for Reserve Affairs. The United States Senate confirmed the nomination the following November 2. In this role, Chase "was in charge of all reserve forces, including the National Guard." As secretary, Chase argued that peacetime draft registration had not increased National Guard or reserve enlistments. He also argued that the draft did not yield a higher-quality military than an all-volunteer force, with the Army suffering in particular as high-quality potential draftees signed up for the Air Force, Navy, and Marine Corps instead. To increase the quality and quantity of reserves, Chase advocated better pay and initiatives to encourage employers to give workers time off for training. He also ruled out future draft deferments for reserve or National Guard service or college, as had been allowed during the Vietnam War. He served until December 1980, following Carter's defeat by Ronald Reagan in the presidential election the previous month, and returned to his position at the University of Minnesota in 1981.
