Uncertainty and "catastrophe": Pentagon may spend first year without full budget

By: Mykhailo Stoliar | yesterday, 08:57
Meet the Abrams 1A2: American tank in the focus of technological innovation American tank Abrams 1A2. Source: армія США

The Pentagon is facing the threat of operating for the first time in its history for a year without a full Congressional budget, which could lead to large-scale spending cuts and slow down military programmes.

Here's What We Know

The Senate passed a six-month continuing resolution after Congress failed to agree on a budget deal. The bill provides an additional $6 billion for the military, but total spending remains at the level of the previous fiscal year, i.e. about $825 billion.

In the absence of a new defence bill, as was the case in previous years for Ukraine, military spending is actually down by 10.6%, according to the Centre for Strategic and Budgetary Studies.

At this point, the Pentagon's budget is under pressure from two sides: on the one hand, Defence Secretary Pete Hagel plans to cut 5% to 8% of civilian personnel and reallocate about $50 billion to priority needs. Elon Musk is also playing a role in the process, insisting on reducing government spending, which could affect the defence budget.

On the other hand, some politicians, such as Senator Roger Wicker, are calling for a significant increase in funding for the army and suggesting adding $150 billion starting in 2026.

American F-35 fighter jet, illustration by Lockheed Martin
An American F-35 fighter jet. Image: Lockheed Martin

Despite the stopgap resolution that provides some flexibility in funding defence programmes, the military is concerned about the long-term implications. General Michael Gatlin stressed that budget instability makes it difficult to respond to growing threats. At the same time, Vice Chief of Naval Operations Admiral James Kilby warned that the lack of a full budget would lead to further delays in the maintenance of ships that are already behind schedule.

Analysts are still unable to accurately assess the impact of the current budget constraints. Mark Montgomery of the Foundation for the Defence of Democracies notes that a sharp cut in funding could cause significant damage, but that a future budget increase could mitigate its effects.

The main problem is not only the spending cuts, but also the strict rules that limit the Pentagon's ability to quickly reallocate funds. Major General Stephen Purdy has warned that restrictions on funding for key programmes could lead to serious disruptions in their implementation, which he called a potential "catastrophe".

Source: Defence News