Why the Pentagon is in a hurry to spend $152 billion
The department has already issued guidance to its program offices on how to spend the money before the deadline hits.
The department has already issued guidance to its program offices on how to spend the money before the deadline hits.
Pentagon program offices are under pressure, juggling the urgency of getting reconciliation funding under contract by Oct. 1 while making sure those contracts include fair pricing and adequate oversight, one defense official told Breaking Defense.
"We just make other trade-offs, like against exquisite weapons and systems: How much of those are we willing to sacrifice in place of low-cost autonomous weapons," Emil Michael said.
Two top appropriators — Sens. Mitch McConnell and Susan Collins — expressed doubt that a third reconciliation bill with defense funding will pass.
"We're not making an estimate for MILCON [military construction] at this time. We don't know what our future posture is going to be," said Pentagon comptroller Jules Hurst.
Congress has teed up a second reconciliation bill with immigration enforcement money, but future reconciliation funds for defense remain nebulous.
“Why do we suddenly have a two part budget where this committee and the Congress generally has oversight and input, to a process where a corner of the budget is essentially a slush fund?” asked Sen. Angus King, I-Maine, during a SASC hearing.
The bulk of funding comes in the form of reconciliation, a bet the department also made for a proposed hike to its Office of Strategic Capital loan program.
“Defense hawks want defense money in the reconciliation bill. I’m trying to keep it as small and focused as possible,” said Sen. Lindsey Graham, who chairs the Senate Budget Committee.
OMB Director Russell Vought defended the use of reconciliation to pay for $350 billion in defense, saying the move would ensure that funds “aren’t held hostage” during traditional the appropriations process.
Operations in Iran, midterm elections and GOP intraparty politics could all complicate the defense budget's path to President Donald Trump's desk.
The fiscal 2027 request, to be formally revealed Friday, marks the first time that base budget defense spending has hit the $1 trillion mark, with reconciliation funds on top of that.
President Donald Trump has indicated plans to request $1.5 trillion in defense funding in FY27, but it is unclear whether that sum will stem purely from the base budget.
“The purpose of the second reconciliation bill is to make sure there is adequate funding to secure our homeland and to support our men and women in the military who are fighting so bravely," said Senate Budget Committee Chairman Lindsey Graham.