6/10/10

An intense discussion is underway between the Administration and Congress about how Pentagon spending fits within the context of a recovering economy, tightening government spending due to budget deficits, and the development of a 21^st century defense strategy. With the Defense Authorization bill out of the House and being considered by the Senate, this conversation will intensify in the weeks and months ahead.  In particular, there is likely to be a vigorous discussion over the costly alternative engine for the F-35, which the administration had targeted for elimination, but crept back in House legislation. As the debate unfolds, Congress would do well to remember the strong, bi-partisan support among defense experts and its own Members for reforming military spending.  This consensus will take center-stage tomorrow, with the release of a bi-partisan report from the Sustainable Defense Task Force, formed by House Financial Services Committee Chair Rep. Barney Frank (D-MA).

Answering these calls will not be easy. Indeed, the need for spending reform extends beyond even what the Obama administration has so far delivered.  Secretary Gates has acknowledged this point, reminding audiences inside and outside the Pentagon that aligning resources to current security challenges will require "hard choices" in the future.  Nevertheless, with such a wide range of programs requiring greater scrutiny, the opportunities for reform remain well within the realm of the possible.  This process is part of a larger push toward establishing a 21^st century defense strategy, which balances the threats of today with those of tomorrow, meets our military contributions with those from our diplomatic and development communities, and recognizes that for America to effecitvely project power, it must have its economic house in order.

As Administration continues efforts to discipline spending, attention shifts to the Defense Authorization bill working its way through the Senate.  The House of Representatives passed its version of the Defense Authorization bill on May 28 and its companion bill is pending in the Senate, likely to hit the floor later this month or in early July, where it will need work to rein in spending.  Secretary of Defense Robert Gates has repeatedly said that the Pentagon neither needs nor wants an alternative engine for the F-35 Joint Strike Fighter, but some Congressional members have insisted otherwise. According to The Hill, "Defense Secretary Robert Gates expressed confidence that President Barack Obama would veto the defense authorization bill over a backup engine for the F-35 Joint Strike Fighter.  Gates has repeatedly said, including in congressional testimony, that he would strongly recommend the president veto any defense bills that continue the development of the secondary F-35 engine."  Since the House passed its version of the bill with funds for the second engine, the Senate must work to strip this unnecessary, wasteful provision.  The Hill reported last week that, "The House bill also contains a strong veto bait: $485 million for a second F-35 Joint Strike Fighter engine made by General Electric and Rolls Royce that the Pentagon does not want. The administration has threatened to veto the final legislation if it comes out of conference with the funding for the second engine. The Senate version did not contain the funding."

This battle is part of a larger effort by the administration to reduce wasteful spending and cut down on the federal deficit.  The Washington Post reported Tuesday that "The White House is directing agencies to develop plans for trimming at least 5 percent from their budgets by identifying programs that do little to advance their missions or President Obama's agenda. The request, made amid rising public anxiety over government spending, comes on top of a pledge by Obama this winter to freeze spending at most agencies for the next three years.  The approach is modeled on a Defense Department program, announced in early May by Secretary Robert M. Gates, aimed at encouraging the military and civilian bureaucracy to find $7 billion to help cover the cost of combat operations. [White House Chief of Staff Rahm] Emanuel said similar programs have also been used successfully by state and local governments."  According to Reuters, "Obama has gathered a bi-partisan deficit commission to come up with recommendations on how to bring down the deficit and reverse the current projections for mounting national debt. Its recommendations, which are expected to combine calls for spending cuts and tax increases, are due in December." [The Hill, 5/20/10. The Hill 5/28/10. Washington Post, 6/8/10. Reuters 6/9/10]

Congress should support the administration and Secretary Gates' effort to discipline Pentagon spending, a cause backed by bi-partisan defense experts. Speaking at the Eisenhower Library last month, Secretary Gates recalled President Eisenhower's views on funding the country's security needs, cautioning that the U.S. "could only be as militarily strong as it was economically dynamic and fiscally sound."  According to Gates, while the 9/11 attacks may have "opened a gusher of defense spending that nearly doubled the base budget over the last decade...Given America's difficult economic circumstances and parlous fiscal condition, military spending on things large and small can and should expect closer, harsher scrutiny." 

Experts and Members of Congress from both sides of the aisle agree with Gates on the need for reforming the defense budget. 

Representatives Barney Frank (D-MA), Ron Paul (R-TX), and Walter Jones (R-NC), along with Senator Ron Wyden (D-OR): In an open letter to the President's deficit reduction commission, the Congressmen urged a reduction in military spending as part of government efforts to address the budget deficit.  "The legislators universally expressed their commitment to maintaining a strong defense, but argued that a review of military spending must be part of any serious discussion of reducing the deficit.  They stressed in the letter that although the four Members represent a wide range of views on national issues, they are united in their belief that ‘consequential deficit reduction must be achieved, and that this can only happen when all federal spending is closely scrutinized to ensure that the taxpayers are getting their money's worth,'" reads a press release. 

Senator Tom Coburn (R - OK): "Despite the sacrifice, heroism, and professionalism that our military personnel have shown in Iraq and Afghanistan, America's defenses have been decaying, despite - perhaps even because of - increasing budgets. The ongoing corrosion and growing expense have been with us for decades, and span numerous presidents and political parties."

Kori Schake, Hoover Institution Fellow and Bush Administration NSC and State Department official: "Defense has for too long lived immune from economics... Conservatives need to hearken back to our Eisenhower heritage, and develop a defense leadership that understands military power is fundamentally premised on the solvency of the American government and the vibrancy of the U.S. economy."

Gordon Adams, Senior Fellow at the Stimson Center "...no part of federal spending, including defense, should be exempt from budget discipline. Defense budgets were not exempt from this effort during the Cold War."

This week a number of concrete proposals to reduce military spending without sacrificing military preparedness will be presented by  The Sustainable Defense Task Force, a bipartisan group made up of experts from across the ideological spectrum who agree on the need for sensible and sustainable defense spending that enhances America's national security and national power.  [Secretary Gates, 5/8/10. Press Release, Office of Barney Frank, 5/27/10. Senator Tom Coburn (R - OK), 5/27/10. Kori Schake,2/1/10.Gordon Adams, Testimony to the Senate Budget Committee, 2/23/10.]

Obama administration efforts to discipline Pentagon spending are laudable, but need for additional reform remains. Thanks to the leadership of President Obama and Secretary Gates, the Pentagon has taken meaningful steps to close the ‘spigot' of uncontrolled defense spending.  But as our current economic woes illustrate and the continued calls for reform from experts demonstrate, the project is far from over.  Defense spending reform is part of larger effort to implement a 21^st century defense strategy, one which matches resources to the challenges we face, not the threats of the Cold War. As Secretary Gates acknowledged, making this adjustment will require tough trade-offs, but fortunately, there is a menu of options the administration and its partners in congress may consider in order to make good on the promise of reform.

Congressional Budget Office: reverse the "Grow the Army Initiative" and cancel the Joint Strike Fighter Program.

Government Accountability Office: contracting reform, endorsed by both Secretary Gates and then-Senator Obama.  A recent GAO report says ninety-five major systems exceeded their original cost estimates by a total of $295 billion from 2001 through 2007. 

Lawrence Korb: "Adjustments to nine costly and outmoded weapons platforms and programs and an across-the-board reduction in research, development, test and evaluation funding could more than pay for the additional 30,000 troops for Afghanistan for one year." 

Gordon Adams: "Mission expansion is creating pressure for force expansion. DOD has already added 92,000 to the ground forces and Congress is being asked to fund an additional 22,000 temporary ground forces in this budget. As forces grow, so does the entire budget, for only research and development is spared from this pressure for more overall resources."

Defense Science Board, DoD Inspector General, and former Secretary Rumsfeld have all estimated that greater attention to waste and mismanagement could cut at least five percent off annual Pentagon expenditures.

[Congressional Budget Office, 8/09. Center for American Progress, 12/22/09. Gordon Adams, 2/23/10. Center for American Progress, 2/4/10]

What We're Reading

Vice President Joe Biden reiterated strong U.S. backing for a credible and timely referendum on South Sudan's self determination.

North Koreans are suffering and miserable, according to refugees who have fled the country.

President Barack Obama said the situation in Gaza is "unsustainable" and promised $400 million in new aid for the territory.

Afghanistan's former head of intelligence says President Hamid Karzai is increasingly looking to Pakistan to end the insurgency.

The World Cup has shined a light on South Africa's hope of achieving a "rainbow nation"; it seems middle class blacks hold the keys to that dream.

Iran's state TV says the country's parliament plans to revise relations with the U.N. nuclear watchdog agency in response to the latest round of U.N. sanctions.

Dutch politicians scrambled to sort out who will form the country's next government, after polarized voters backed parties on both the right and the left with very different ideas on budget cuts and Muslim immigration.

China's exports jumped in May, reassuring investors about the economy's strength and increasing calls for China to allow its currency to rise in value.

President Obama has been accused of holding ''his boot on the throat'' of British pensioners after his attacks on BP were blamed for wiping billions off the company's value.

Secretary of State Hillary Clinton has pledged continuing US support for Colombia as it faces ongoing threats from rebels and drug traffickers.

Commentary of the Day

Joe Klein writes that Israel is afflicted with "Ari Ben Canaan Disorder," a sort of a brusque, stubborn toughness - and that disorder is hurting the country right now.

Ayad Allawi says that, if stabilized, the Iraqi government could be a force for moderation in the Middle East.

Kevin Rafferty asks if Naoto Kan, Japan's new prime minister, can revive his country.