71. Avoid a Sequester and Fully Fund a Preeminent Military
- Author:
- Rebeccah L. Heinrichs and Kennedy Lee
- Publication Date:
- 09-2023
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- In early summer 2023, President Joe Biden and Speaker of the House Kevin McCarthy (R-CA) reached an agreement to raise the debt ceiling and avert a government default. While compromise is necessary, the deal included caps on overall spending at fiscal 2022 levels and made no exception for national defense. The United States is in the beginning of a tumultuous time: a new cold war with China and Russia. Washington ought to be moving with a great sense of urgency and national purpose to rebuild its defense industrial base (DIB), modernize its nuclear forces to meet the dynamic threats, grow the US Navy, and upgrade critical space systems, among other things. The caps on military spending undermine America’s ability to support its immediate interests in Ukraine and limit its capacity to deter future aggression and expansion by the People’s Republic of China (PRC), further violence by China’s junior partner Russia, and rogue action by the Islamic Republic of Iran and North Korea. The debt deal caps US military spending at $886 billion, which may initially appear to be a raise, but effectively flattens the Pentagon budget over the next two years. The dollar amount is 3.2 percent higher than last year’s request and will rise by 1 percent next year for a total of $895 billion in fiscal year 2025. But when accounting for inflation, the cap amounts to a significant cut in real terms over last year’s budget. The projected figures suggest that US defense spending could fall below 3 percent of gross domestic product for the first time since the 1990s’ “peace dividend.” The budget that the Pentagon submitted for this year should be $23 billion higher just to keep pace with the current rate of inflation. This is before factoring in the budget increases necessary to keep up with the evolving threat environment, including an ongoing land war in Europe and a Chinese Communist Party with revanchist ambitions in the Indo-Pacific. Raising the stakes, the deal also included a provision that triggers an automatic sequester against the budget, including the military: an indiscriminate 1 percent cut if the House and Senate fail to pass 12 annual spending bills by midnight on New Year’s Eve. The military has only now begun to recover from the effects of the sequester that occurred in 2013 as a result of the 2011 Budget Control Act (BCA). Another one now, at a time of acute and immediate threats from multiple adversaries, could have catastrophic effects. Congress would be wise either to urgently amend the bill or to prioritize the imperative of avoiding a second sequester over all other political matters. Then Congress should pass supplemental funding measures to ensure the Department of Defense (DoD) has the resources it needs to address the significant shortfalls that already exist and that the Obama-era sequestration only exacerbated.
- Topic:
- Defense Policy, National Security, Military Spending, and Military
- Political Geography:
- North America and United States of America