Friday, January 03, 2014

Pain is Coming...for the Pentagon

In the wake of a bruising, and mostly unsuccessful, fight to avert steep spending cuts, the iron triangle of Pentagon leaders, congressional appropriators and industry groups now must buckle down and make unpalatable tradeoffs if they hope to have a budget in place before temporary funding runs out Jan. 15.

The Bipartisan Budget Act of 2013 gives the defense establishment temporary relief from the sequester cuts and raises discretionary spending limits, but does not provide funds for government operations through the remainder of fiscal year 2014. Appropriations bills must be passed before Jan. 15, or the government will once again either face the prospect of a shutdown or another stopgap funding measure that perpetuates fiscal uncertainty.

The BBA set the overall level of defense and non-defense spending, but it will be up to the appropriations process to allocate the dollars for each agency and individual programs.

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