News
In the News

Congress Makes It Harder for DoD to Cut Costs

The Pentagon long has battled with Congress over politically sensitive spending cuts. But this year, military officials say Congress' refusal to retire ships and aircraft means the Navy and Air Force are spending roughly $5 billion more than they would if they were allowed to make the cuts. In some cases Congress restored funds to compensate for the changes, but the result overall was lost savings/.../

Altogether, Congress is requiring the Navy to keep seven cruisers and two amphibious warships in service, eliminating the $4.3 billion the retirements would have saved over the next two years.

"A lot of it comes down to parochial political interests," said Todd Harrison, senior fellow at the Center for Strategic and Budgetary Assessments. "No member of Congress wants to have a base closed in their district or to have a fighter squadron relocated out of their district."

Members of Congress argue that they believe the Pentagon sometimes makes bad decisions and other times may purposely target programs that have broad support/.../

Perhaps the most significant cost savings historically opposed by Congress are Pentagon efforts to scale back military retirement benefits, including proposals to increase premiums or co-pays for retirees.

"I think there's a misunderstanding in Congress about what it is that would change," Harrison said. "They tend to associate changes in retirement benefits with changes to veterans benefits."

But changes to retiree health care would only affect the approximately 17 percent of the service members who stay in the military long enough to qualify for retirement, and those are usually more senior officers who already have a higher income. Veterans' benefits more often help those with lower incomes, and they are included in the Veterans Affairs Department budget, not the Pentagon's.

Turner faulted department leaders for some of the problems with those broader issues.

"I think on policy shifts you need a more holistic approach, and the Pentagon usually doesn't engage Congress in discussions of finding cuts or program changes. They send them up as missiles for Congress to deal with, instead of using a deliberative approach."

Harrison said the Pentagon needs to do a better job explaining and selling its arguments for such politically unpalatable spending cuts.

"If you actually try to do smart targeted reductions, like closing bases, like actually reducing the size of the workforce, targeted cuts have winners and losers," Harrison said. "And Congress has not been willing to make those tough decisions."

As a result, he said, lawmakers resort to broader, across-the-board cuts, such as the furloughs.

"It spreads pain across evenly," he said. "So everyone can wash their hands of it."