Notes on Defense Budget and Strategy

Opening Remarks on Defense Budget and Strategy

Welcoming Remarks and Expectations

  • The subcommittee hearing focuses on the Department of Defense's (DoD) budget request for the coming fiscal year.
  • The goal is to assess whether the budget aligns with a clear strategy or defines and limits the strategy.
  • The subcommittee values timely and forthcoming communication with the department.
  • Last year, the subcommittee added 18,800,000,00018,800,000,000 to President Biden's request, but it did not become law.

Concerns Regarding Budget Allocation and Strategy

  • The current continuing resolution (CR) is seen as a missed opportunity that compounds challenges for the DoD.
  • Support exists for improving air and missile defense, unmanned technologies, modernizing the nuclear triad, and expanding shipbuilding capacity.
  • Lumping reconciliation spending with full-year appropriations risks conflicting objectives.
  • One-time investments aren't a substitute for steady growth in the annual budget.
  • Concern over cutting procurement funding by 14,400,000,00014,400,000,000 in the base fiscal year 2026 budget and moving it to a reconciliation bill.
  • This affects programs like Virginia class submarines, Hurley Burke class destroyers, and B-21 bombers.
  • Critical munitions should be incorporated into annual appropriations for sustained demand.

Critique of the Fiscal Year 2026 Budget Request

  • The administration's base defense budget request is lower than 15 of the last 20 annual requests.
  • The request fails to keep pace with inflation and the threat of China.
  • Even with reconciliation, the fiscal year 2026 DoD budget request falls short of annual funding requests from fiscal years 2008-2011.
  • As a share of GDP, the fiscal year 2026 request is around 3%, less than the Reagan buildup (6%) and President Carter's request (4.5%).
  • Historically, higher percentages of GDP were spent on defense during major conflicts:
    • World War II: 37%
    • Korea: 13%
    • Vietnam: 9%

Concerns About Resource Allocation and Strategy

  • A growing share of the defense budget covers costs other than modernization and procurement.
  • Rising personnel, operations, and maintenance costs risk crowding out new capabilities.
  • Budget allocation reflects political will, and underfunding undermines American hard power.
  • Need to understand the strategy behind the budget and how it addresses adversary alignment and conflicts in the Indo-Pacific, Europe, and the Middle East.
  • Russia's war in Ukraine, its alignment with US adversaries, and its outcome are critical to American interests.
  • The speaker questions the absence of funding for the Ukraine Security Assistance Initiative.
  • Terminating security assistance may not lead to lasting peace.
  • The US military should learn from battlefield innovators in Ukraine.
  • Abandoning partners in Europe could undermine trust with Asian partners.
  • China, Iran, and North Korea are learning from the conflict in Ukraine and could benefit from Russian success.

Impact of War in Europe on Other Theaters

  • Asian and Pacific allies understand the influence of unchecked Russian aggression on President Xi's calculus.
  • Strategic alignment among adversaries is a global reality.
  • The risk of simultaneous conflict on multiple fronts is growing, however the capabilities America needs to prevail in such a conflict do not seem to be reflected in the request from OMB.