Congress passes fourth stopgap funding bill as 1% sequester looms

Congress on Thursday handed its fourth consecutive short-term spending invoice to keep away from a authorities shutdown. The momentary spending measure extends Protection Division funding at fiscal 2023 ranges by way of March 22.

5 months into the fiscal 12 months, which started Oct. 1, lawmakers have but to go a full FY24 funds. The uncertainty has raised issues within the Pentagon that Congress could put the division on a one-year persevering with decision with a 1% sequester.

With out an FY24 protection funds, the Pentagon stays unable to implement new modernization packages and can’t take new steps to develop the defense-industrial base amid wars in Europe and the Center East.

“The dearth of full-year funding has put key authorities packages in purgatory, wasted taxpayer cash on outdated budgets and hindered ahead progress that can make the nation safer, push us to the subsequent ranges of technological development and help American competitiveness in key industries like aerospace,” Aerospace Industries Affiliation chief govt Eric Fanning mentioned in a press release.

The Home voted 320-99 to go its fourth momentary spending measure, and the Senate adopted swimsuit shortly thereafter in a 77-13 vote. Below the newest stopgap spending invoice, funds appropriated for Veterans Affairs and army building will expire on March 8, two weeks earlier than Protection Division funding runs out.

Congress is anticipated to vote on the FY24 Veterans Affairs and army building spending invoice subsequent week. However lawmakers have but to finalize the FY24 Pentagon spending invoice.

The proper-wing Home Freedom Caucus has insisted on a number of coverage riders within the appropriations invoice that Democrats have dominated out as poison capsules, together with bans on the Pentagon’s abortion journey depart coverage and medical take care of transgender troops.

Final 12 months’s debt ceiling deal caps FY24 protection spending at $886 billion. If Congress doesn’t go a full FY24 federal funds by April 30, the debt ceiling settlement places authorities funding on a one-year persevering with decision that might lower spending on the Pentagon and all different federal companies by 1%.

Pentagon sounds the alarm

The undersecretaries of the Navy, Military and Air Drive informed reporters Wednesday a one-year stopgap funding measure at FY23 ranges would lead to billions of {dollars} in “misaligned” funds on the Protection Division.

To deal with a one-year stopgap measure, they mentioned the Protection Division would first should prioritize present operations in locations like Europe and the Center East, adopted by personnel, then acquisition and modernization.

Navy Below Secretary Erik Raven famous this is able to end result within the army submitting “unprecedented” reprogramming requests to Congress. The Navy, as an illustration, would wish Congress to approve a $13 billion reprogramming request to deal with $26 billion in misaligned funds.

It will additionally lead to a $2 billion shortfall for the Virginia-class assault submarine program and one other $800 million shortfall for amphibious ship spending. Congress has supplied a $2.2 billion carveout for the Navy to proceed work on the Columbia-class ballistic submarine program, most liable to falling not on time.

Different providers wouldn’t be capable to start new initiatives both, together with a extremely prioritized munitions ramp-up following the inflow of arms the U.S. has despatched to Ukraine and Israel with extra due for Taiwan.

“These are manufacturing price will increase, new begins — each in packages for acquisition in addition to army building initiatives — that we can not begin,” mentioned Military Below Secretary Gabe Camarillo.

Congress has nonetheless not funded the multiyear munitions procurement plans it licensed for FY23 and FY24, and Camarillo famous these funds are wanted “to offer trade the motivation to have the ability to facilitize, put money into a workforce and be capable to do these additional shifts that we all know that we want with a purpose to restore our munitions.”

The $95 billion international assist invoice for Ukraine, Israel and Taiwan additionally contains appreciable funding to ramp up the munitions-industrial base. However Home Speaker Mike Johnson, R-La., has up to now refused to place it on the ground for a vote after the Senate handed it 70-29 earlier this month.

For its half, the Air Drive warned earlier this month a 1% sequester would cut back its shopping for energy by $13 billion and put $2.8 billion in house modernization initiatives on maintain.