Defense Budget Alert

SIMI VALLEY, CA -- Defense Secretary Mark Esper called on Defense Department leaders to make "tough choices" in cutting legacy systems and investing in new technologies as DOD eyes the end-game in building its fiscal year 2021 budget request. 

High-priority Missile Defense Agency projects slated for fiscal year 2020 are at risk of being hamstrung beginning this month if Congress and the White House do not agree to a spending bill, with a Standard Missile-3 Block IB multiyear procurement deal, launch of the Next Generation Interceptor program and more at risk in the event of a yearlong continuing resolution.

The Air Force has sent the Office of the Secretary of Defense a list of priority programs for potential waivers from Congress under the ongoing continuing resolution.

Senate Armed Services Committee Chairman Jim Inhofe (R-OK) said today the fiscal year 2020 defense authorization bill is being "held hostage" by legislative disagreements beyond his committee's jurisdiction and can only be finalized by Republican and Democratic party leaders.

A Marine Corps general who serves as an adviser to the commandant expressed concern yesterday over the "normalization" of using stopgap continuing resolutions to fund the government.

Pentagon officials warned defense contractors today that Congress could be inching closer toward a yearlong short-term spending bill that could prevent the Defense Department from starting new acquisition programs.

The Defense Department for the second year in a row failed to obtain a clean financial opinion from auditors and does not expect to achieve one for at least several years, though Pentagon officials say they are making steady progress.

House Armed Services Committee Chairman Adam Smith said partisan disagreement over how to address President Trump’s use of Pentagon money to fund the construction of a southern border wall continues to be the most contentious issue holding up the fiscal year 2020 defense authorization bill.

A yearlong stopgap continuing resolution would prevent the Army from using $3.5 billion in procurement and research, development, test and evaluation funding and block it from awarding contracts for the Optionally Manned Fighting Vehicle, according to a fact sheet provided to Inside Defense.