WASHINGTON, DC – In a straightforward, but highly illuminating explainer piece for War on the Rocks, Avascent’s Matt Vallone explains precisely how and why Congress has increasingly failed since 2011 to properly fund the Department of Defense, let alone the US government overall.
Citing a broken budgetary process, Vallone starts with Congress’ failure to adopt a joint budget resolution to fund the USG, instead utilizing continuing resolutions (CRs) “that keep the lights on but fail to provide departments and agencies with the ability to start new programs or redirect money to new priorities.”
Erratic budgeting has created significant challenges for industry planning. New contracts don’t move forward, planned cancellations may live on in limbo and costs can be driven up as schedules are stretched to reflect new timelines.”
From there Vallone outlines the ill effects of the Budget Control Act that resulted in sequestration; across the board cuts irrespective of government program priorities, which subsequently led to the exploitation of the Overseas Contingency Operations fund—which is less than flexible in how it can be allocated. All of this has put defense firms in a state of uncertainty per their bottom lines—which is especially dangerous for the survival of smaller companies along the supply chain. Vallone expects this level of political gridlock and therefore budgetary indecision to continue through the 2016 election.
Click here to read “How Congress is Hamstringing the Defense Industrial Sector”