Posts Tagged ‘debt ceiling agreement’

A continuing resolution being put together in the House is expected to offer the Defense Department the flexibility to move funds across accounts as a way to help officials deal with the severe funding constraints caused by sequestration. The bill, which would fund the federal government past March 27, largely would extend fiscal 2012 spending laws, but also would include appropriations bills for defense and military construction-veterans affairs. The measure would provide the Pentagon some flexibility to allocate funds where they are needed and make other changes that normally would be restricted under a stopgap spending bill …

The Pentagon’s senior military officers rendered a dire portrait of how automatic spending cuts combined with operating under a continuing resolution for the remainder of fiscal 2013 would harm the nation’s military, during their testimony Tuesday before the Senate Armed Services Committee. If the automatic defense cuts — which would approach $500 billion through FY 2021 — go ahead, the Army will curtail training for 80 percent of its ground forces and across all of its specialties, Army Chief of Staff Gen. Ray Odierno said. The service already has imposed a civilian hiring freeze and will terminate an estimated 3,100 temporary and term employees …

With both parties separated by a wide chasm over how to turn off $85 billion in government-wide spending cuts slated to go into effect in a little more than two weeks, the best outcome at this point may be a bipartisan deal reached sometime in March. “I think what’s going to happen is the sequester will take effect, and then the serious negotiations will probably start,” said Senate Minority Whip John Cornyn …

The consequences of sequestration, which could cost the defense budget up to $500 billion in spending through fiscal 2021, are no grimmer than when Defense Secretary Leon Panetta first railed against their prospect after Congress reached an agreement to raise the nation’s debt ceiling in August 2011. But with the strong likelihood that the first tranche of $46 billion in spending reductions will be imposed in only 17 days, the Pentagon’s senior civilian and military leaders wasted no time before the Senate Armed Services Committee on Tuesday painting a sobering picture of sequestration’s impact on military readiness …

The Army and Navy are facing a shortfall in their fiscal 2013 operations budgets exceeding $9 billion because they have been spending money at a slightly faster rate than called for under the continuing resolution funding the government through March 27. While the CR is intended to cover 178 days, or 48.8 percent, of the year, the Office of Management and Budget is allowing the Army to spend at a rate that would expend 49.7 percent of its funds through March 27 and the Navy at a rate as high as 52.4 percent, reported Politico …

Senate Democrats plan to unveil by Thursday legislation that would replace $85 billion in government-wide spending cuts roughly split between new revenue generated by ending tax breaks and alternate spending reductions. Senate Majority Leader Harry Reid (D-Nev.) is expected to brief his caucus Tuesday on the plan’s details, with the measure being formally introduced on the floor Thursday if Democrats approve …

Two high-profile decisions announced last week by the Pentagon to trim spending did not stem from the looming threat of sequestration, but rather were responses to the department’s existing budget crisis, said Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff. On Wednesday, officials halted deployment of the aircraft carrier USS Harry Truman aircraft carrier strike group to the Middle East to help the Navy cope with a $4.6 billion shortfall in spending on operations and maintenance this year resulting from DOD operating under a continuing resolution rather than a full-year appropriations bill …

Despite recent claims by senior leaders of both parties that sequestration likely will go forward this year, there still are plenty of Republican and Democrat lawmakers who would like to avoid the $85 billion in government-wide spending reductions scheduled to go into effect March 1. Of course the dispute over whether a package to replace the cuts will include increases in tax revenue, or be composed entirely of alternate spending reductions, is the primary obstacle to a bipartisan deal …

The Air Force would be forced to postpone the start of 22 new military construction projects if automatic defense cuts are imposed beginning March 1, according to an Air Force presentation to Congress. Sequestration would affect smaller projects as well, requiring the service to defer work on more than 420 non-emergency facilities sustainment and restoration/modernization projects at more than 140 installations …

Senate Democrats are trying to complete work by the end of next week on a bill to reverse $85 billion in government-wide spending reductions slated to be imposed March 1. Their goal is to bring the measure, an undetermined mix of alternate spending cuts and new tax revenue, to the Senate floor the week of Feb. 25, just before the sequester goes into effect …