WASHINGTON — With most major defense issues on hold in Congress this year, there is little appetite for major moves ahead of the November election as lawmakers grapple with passing pending legislation under the constraints of the Fiscal Responsibility Act. I fell into a pattern. .
President Donald Trump’s victory in the presidential election and the Republican takeover of Congress will determine whether major changes in defense spending and policy are on the accelerator. Future articles in Breaking Defense will have more details on what will happen, but the key issues are the national security system, including Pete Hegseth as Secretary of Defense and Tulsi Gabbard as Director of National Intelligence. The issue is whether the Senate will confirm a controversial nominee in the field. The same goes for who gets selected for key service and acquisition-related jobs.
(This article is part of a series in which Breaking Defense reporters look back at the most important (and interesting) news of 2024 and predict what 2025 will hold.)
Let’s rewind here. 2024 was on the back foot, funding the government through a continuing resolution to keep spending at fiscal year 2023 levels and outstanding requests from the Biden administration for additional funding for Israel, Ukraine, and Taiwan. It started with Congress. Last year’s debt ceiling agreement, which created the Fiscal Responsibility Act, also set the stage for a considerably sluggish spending environment in fiscal 2024 and fiscal 2025, with non-discretionary limits on defense spending unable to keep up with the inflation rate.
Congress narrowly avoided a government shutdown in March and approved spending for fiscal year 2024 midway through the fiscal year. By then, the Biden administration had already released its FY25 budget proposal, creating a unique situation in which the Pentagon defended its latest demands while formulating its FY24 budget.
Until Congress approves $95 billion in defense aid to address new requirements for foreign aid and undersea industrial base for Ukraine, Israel and Taiwan, even though the Senate passed a similar bill in February. It took until the end of April. Given that many House Republicans oppose funding for Kyiv and President Trump’s stance on future arms donations is uncertain, this package may be the last major aid to Ukraine. It may have been a collection.
The bill also included a ban on TikTok that would go into effect unless its Chinese owners pull out of the social media app. These provisions have the backing of U.S. technology executives from companies like Palantir and could be reviewed by the Trump administration, making TikTok’s fate in the U.S. one of the biggest tech issues of 2025.
The biggest legislative issue for national defense is still undecided given ongoing continuing resolutions, but Congress is determined to increase funding beyond the FRA limits, which set the Defense top line at $895.2 billion. whether they ultimately agree or not. Senate appropriators are touting the need for emergency funding that would increase defense spending by $21 billion without technically breaking the FRA cap. However, the Senate and House Armed Services Committees chose to keep the FRA limits in place in the FY25 NDAA, which was passed in mid-December.
Related: What you need to know about NDAA infringement
In the industry arena, several topics have been making headlines this year. One was the changing landscape of Boeing’s defense division, which created production challenges, financial turmoil, and a change in leadership.
Another major problem was the instability of the undersea industrial base. The sector has faced production issues since the coronavirus pandemic, but executives at General Dynamics Electric Boat and HII, two of the country’s submarine makers, say their subcontractors are delivering on time. He lamented the lack of progress in the supply chain as it struggles to deliver to customers and adds to the schedule. and cost risk.
It also continues two major plans: increased military production and the rise of the defense technology sector, as the Pentagon continues to pour money into areas such as drones, space and counter-drone systems through replicators and other development initiatives. was also seen.
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