President Joe Biden's anticipated U.S. defense and national security budget request, set to be unveiled on Monday, is projected to see only a 1% increase compared to the previous year.
This marginal budget growth, stemming from a two-year agreement struck in mid-2023, imposes limitations on various programs, resulting in a slowdown in spending. The $895 billion national security budget encompasses funds for homeland security and nuclear weapons-related activities under the Department of Energy.
As per the budget deal, the Pentagon's allocated share of the national defense budget was slated to be $850 billion. Consequently, this implies a $30 billion reduction in Pentagon funding, affecting acquisitions such as the Lockheed Martin F-35 jet and air defenses for Guam.
The budget constraints will also lead to delays in ongoing programs, including a deceleration in the production of an aircraft carrier by Huntington Ingalls Industries and Virginia-class submarines by Huntington and General Dynamics.
Previously, the Pentagon had estimated a requirement of approximately $880 billion for 2025, with the total national security budget reaching $929 billion. However, due to the capped 1% increase, the available funds are less than expected.
While these cuts are not finalized, they are likely to prompt discussions on Capitol Hill, potentially leading to an adjustment in the national defense budget to surpass $900 billion for fiscal 2025.
It's noteworthy that defense spending constitutes around half of the U.S. discretionary budget, with the remaining portion allocated to transportation, education, diplomacy, and other departments. The 2024 budget, which allocates $886 billion for national security, is yet to be passed by Congress, leaving the government operating under a continuing resolution until a new budget is approved.
As a result, the Pentagon's order for Lockheed Martin's F-35 stealth fighter is expected to decrease to below 70, down from the initial projection of 83, resulting in an estimated $1.6 billion reduction in spending on these aircraft.
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