Thursday, April 13, 2023

Potential budget Crisis

The U.S. military is likely to face a budgetary crisis soon, as Congress has signaled its inability to agree on critical issues related to the federal budget. With a looming debt ceiling crisis on the horizon, it is becoming increasingly clear that the military will need to prepare for a potential reduction in funding.

The current political climate in the United States is characterized by deep divisions between Republicans and Democrats, which has made it difficult to pass legislation related to the federal budget, including defense spending in the past. 

Currently, Congress is facing political polarization issues, with some in the GOP-controlled house floating the idea of possible defense cuts. House speaker McCarthy supported capping the U.S. budget at the fiscal year 2022 levels; this would mean a 10% cut for the military if included in the cap. The push is mostly from the freedom caucus, but indicate that there will be a long budget debate in the near future. 

This raises an ongoing issue with the budgetary process; Congress often has a long, drawn-out process for issuing budgets for the next fiscal year. As a response, Congress should adopt a process of granting multi-year contracts; this will enable a secure military industrial base and ensure production lines continue for needed equipment, such as munitions, in order to resupply our reserves and support Ukraine. Multi-year contracts will also insulate critical production lines from congressional gridlock, which could avoid the ongoing crisis altogether 

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