House Supports Status Quo for FY13 Defense Spending

by: Matthew Potter
July 20, 2012

Category: Business Line, Companies, Congress, Department of Defense, development program, Events, Federal Budget Process, logistics, Military Aviation, production program, Services | RSS 2.0

The House of Representatives passed their version of the FY13 defense appropriations act last night. In a surprise to leadership of both sides a group of Republican and Democratic members joined to pass a bill that kept funding at 2012 levels.  This means the Pentagon will receive just over $608 billion.  Now the House must wait for the Senate to pass their bill and a Conference Committee will come up with the final version.

It wouldn’t be Congress without some specific marks and disagreements with the proposed plans of the Obama Administration.  These include language preventing the Air Force from retiring their C-23, C-27 and Global Hawk aircraft.  It also reduced spending on biofuels and provided for no pay raise for civilian workers.  It also keeps shipbuilding plans at a higher rate then requested.

The defense budget like all of Federal spending is facing the possibility of large cuts due to the failure of a budget deal last year leading to planned sequestration of funding.  This could see upwards of $50 billion or more automatically cut from the defense budget.  Industry, some in Congress and others are fighting those plans.  If the defense budget is not cut this way then other parts of the budget would have to be to make up for it.

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