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Significance

While Congress broadly supports existing defence programmes and the current level of spending, an increase below inflation leaves the Pentagon struggling to manage current military challenges and anticipated future demands.

Impacts

The Army and Navy are finding it difficult to obtain needed munitions from a defence industrial base still coping with post-Cold War cuts.

Pressure will increase on Washington’s allies and partners to help the Pentagon address regional military threats.

Military leaders hope that emerging technologies will eventually narrow the gap between rising demands and growing costs.

Pentagon planners will continue to use China as the ‘pacing threat’ amid concerns that US leads in technology and personnel are eroding.

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