For The Fourth Year In A Row, Biden’s Anemic Defense Budget Request Fails To Keep Pace With His Inflation

The Biden Administration’s ‘Meager’ Defense Budget Request For Fiscal Year 2025 Fails To Keep Up With 3.2% Inflation

REUTERS: “Biden's meager 1% US defense budget increase buys fewer ships, jets” (Reuters, 3/11/2024)

“The Biden administration’s defense budget for fiscal year (FY) 2025 is only a 1 percent increase from last year’s, a slowdown in spending that will prevent the Pentagon from quickly refilling weapons stocks gutted by the wars in Ukraine and Israel, according to documents released Monday.” (“Biden Seeks Modest Bump For Record $895B Defense Budget,” The Hill, 3/11/2024)

“The cuts reflect a decision to seek less money for procurement and research and development than earlier forecast as the Pentagon reduces orders for F-35 fighter jets and much-delayed Virginia-class submarines, according to the officials ...” (“Biden to Seek 1% Increase in 2025 Defense Budget Under Cap,” Bloomberg News, 3/07/2024)

• “The less-than-expected funding will curb purchases of the stealthy F-35 jet made by Lockheed Martin and air defenses for Guam, and will delay programs, including slowing orders for an aircraft carrier made by Huntington Ingalls Industries and Virginia-class submarines made by Huntington and General Dynamics.” ("Biden's Meager 1% US Defense Budget Increase Buys Fewer Ships, Jets," Reuters, 3/11/2024)

“Last spring … the Pentagon had estimated in 2025 it would need about $880 billion, and the total national security budget would be $929 billion.” ("Biden's Meager 1% US Defense Budget Increase Buys Fewer Ships, Jets," Reuters, 3/11/2024)

The Administration Even ADMITS That Its Defense Budget Fails To Keep Up With Inflation

SENIOR BIDEN ADMINISTRATION DEFENSE OFFICIAL: “It is an increase over last year, is not enough of an increase to cover inflation.” ("Biden's Meager 1% US Defense Budget Increase Buys Fewer Ships, Jets," Reuters, 3/11/2024)

U.S. BUREAU OF LABOR STATISTICS, March 2024: “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in February on a seasonally adjusted basis, after rising 0.3 percent in January, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.2 percent before seasonal adjustment.” (Press Release, U.S. Bureau Of Labor Statistics, 3/12/2024)

Despite The President’s Rhetoric, Every Biden Defense Budget Request Has Failed To Keep Pace With The Inflation His Economic Policies Unleashed

Biden’s 2025 Defense Budget Request Would Mark The Fourth Straight Time His Proposals Failed To Keep Up With Inflation

White House FY2024 budget request (March 2023): “President Joe Biden’s budget proposal included an overall $886 billion for national security programs including $842 billion for the Dept. of Defense (DOD) in fiscal year (FY) 2024, an increase of 3.2% or $26 billion over the $816 billion enacted for the DOD in FY2023.” (“Biden's Defense Budget Hikes Outpaced By Inflation, Drawing GOP Criticism,” Fox Business, 3/14/2023)

U.S. BUREAU OF LABOR STATISTISCS, March 2023: “The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in February on a seasonally adjusted basis, after increasing 0.5 percent in January, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 6.0 percent before seasonal adjustment.” (Press Release, U.S. Bureau Of Labor Statistics, 3/14/2023)

• “However, that 3.2% increase falls short of inflation, which remains at 6% year-over-year based on the latest inflation reading from the Bureau of Labor Statistics released Tuesday.” (“Biden's Defense Budget Hikes Outpaced By Inflation, Drawing GOP Criticism,” Fox Business, 3/14/2023)

• “That means in real terms, the president’s budget proposal would see the Pentagon’s purchasing power decline by 2.8% relative to last year based on current inflation.” (“Biden's Defense Budget Hikes Outpaced By Inflation, Drawing GOP Criticism,” Fox Business, 3/14/2023)

White House FY2023 budget request (March 2022): “Mr. Biden will request $813.3 billion in national security spending, an increase of $31 billion, or 4 percent, from 2022, according to people familiar with the proposal.” (The New York Times, 3/28/2022)

U.S. BUREAU OF LABOR STATISTICS, March 2022: “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent in February on a seasonally adjusted basis after rising 0.6 percent in January, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 7.9 percent before seasonal adjustment.” (Press Release, U.S. Bureau Of Labor Statistics, 3/10/2022)

DOV S. ZAKHEIM, DOV S. ZAKHEIM, Senior Advisor At The Center For Strategic And International Studies And Former Under Secretary Of Defense (Comptroller): “The Biden administration’s fiscal year 2023 defense budget request is in equal parts disappointing and disturbing. It is disappointing because, when inflation is taken into account, it provides no real growth in defense spending, and most likely a real decline.” (“Biden’s 2023 Defense Budget Is Disappointing — And Disturbing,” The Hill, 4/01/2022)

• “Instead, this budget reflects a real decline in defense spending from the FY 2022 base budget that was approved a month ago. The Department of Defense (DOD) budget appears to assume that inflation — currently running near 8 percent — will drop to 2.6 percent over the next half-year, when the current fiscal year ends on Sept. 30. Such a sharp decline is simply improbable.” (“Biden’s 2023 Defense Budget Is Disappointing — And Disturbing,” The Hill, 4/01/2022)

White House FY2022 budget request (April 2021): “Biden’s proposal sets aside $753 billion for all national defense programs across the government, a 1.7 percent increase over fiscal 2021.” (“First Biden Budget Outline Calls For Major Boost In Nondefense Spending,” NBC News, 4/09/2021)

U.S. BUREAU OF LABOR STATISTICS, April 2021: “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in March on a seasonally adjusted basis after rising 0.4 percent in February, the U.S. Bureau of Labor Statistics reported today. The March 1-month increase was the largest rise since a 0.6-percent increase in August 2012. Over the last 12 months, the all items index increased 2.6 percent before seasonal adjustment.” (Press Release, U.S. Bureau Of Labor Statistics, 4/13/2021)

• “In recent weeks, Republicans on Capitol Hill, including Senate Minority Leader Mitch McConnell, have gone on the offensive, warning Biden that a flat budget, or even a modest raise in spending, would hinder the military's ability to modernize capabilities to compete with China.” (“Biden's 1st Budget Request Sidelines Defense Spending In Favor Of Massive Domestic Investments,” Military.com, 4/09/2021)

The Pentagon Needs Adequate, Predictable Funding To Replenish Weapons Sent To Our Allies And Partners

“The Pentagon has sent $10 billion worth of weapons to Ukraine that it still does not have the money to replace due to congressional gridlock, according to a top Defense Department official.” (“Pentagon Needs Congress To Hand Over $10B To Replace Weapons Sent To Ukraine,” Politico, 3/11/2024)

• “If DOD does not get the funding to backfill its stocks, the impact of that ‘ongoing hole’ will ultimately be felt by the U.S. military’s own forces, said a senior DOD official, who was granted anonymity to speak ahead of an announcement.” (“Pentagon Needs Congress To Hand Over $10B To Replace Weapons Sent To Ukraine,” Politico, 3/11/2024)

“In addition to money spent on the Ukraine conflict, DOD is still waiting on cash to pay for the U.S. military buildup in the Middle East since Hamas’ Oct. 7 terrorist attacks on Israel, which topped $1.6 billion by the end of January, POLITICO reported. DOD estimates that cost will rise to $2.2 billion if sustained for a full year. It does not cover the munitions needed to knock down drones and missiles aimed at Navy ships and freighters in the Red Sea.” (“Pentagon Needs Congress To Hand Over $10B To Replace Weapons Sent To Ukraine,” Politico, 3/11/2024)

“The comments come as the Pentagon on Monday unveiled its budget request for fiscal 2025, though lawmakers have yet to pass an appropriations bill for fiscal 2024. The Pentagon is operating under a stopgap measure, called a continuing resolution, that freezes spending at last year’s levels and prevents officials from starting new programs.” (“Pentagon Needs Congress To Hand Over $10B To Replace Weapons Sent To Ukraine,” Politico, 3/11/2024)

Meanwhile, China And Russia Are Drastically Increasing Military Spending

China Announced A 7.2% Increase To Its Defense Budget, Which ‘Has More Than Doubled Since 2015’

“China on Tuesday announced a 7.2% increase in its defense budget, which is already the world’s second-highest behind the United States at 1.6 trillion yuan ($222 billion), roughly mirroring last year’s rise.” (“China Raises Defense Budget By 7.2% As It Pushes For Global Heft And Regional Tensions Continue,” The Associated Press, 3/05/2024)

“The official budget figure announced Tuesday at the opening of the legislature’s annual meeting is considered only a fraction of spending by the People’s Liberation Army, the military wing of the ruling Communist Party, once spending on research and development and foreign weapons purchases are considered.” (“China Raises Defense Budget By 7.2% As It Pushes For Global Heft And Regional Tensions Continue,” The Associated Press, 3/05/2024)

• “China’s defense budget has more than doubled since 2015…” (“China Raises Defense Budget By 7.2% As It Pushes For Global Heft And Regional Tensions Continue,” The Associated Press, 3/05/2024)

“[T]he country’s continuing ambition is to challenge the U.S. and its allies in Asia including Japan, South Korea, the Philippines and Australia over territorial claims, regional leadership and a bigger say in world affairs.” (“China Raises Defense Budget By 7.2% As It Pushes For Global Heft And Regional Tensions Continue,” The Associated Press, 3/05/2024)

‘Putin Approves Big Military Spending Hikes For Russia's Budget’

“Russian President Vladimir Putin gave his official approval to a significant increase in military spending that will see around 30% of fiscal expenditure directed towards the armed forces in 2024 as he signed draft budget plans into law on Monday. Moscow is diverting ever more resources towards prosecuting its war in Ukraine. Spending on defence and security combined is set to reach around 40% of all budget expenditure next year.” (“Putin Approves Big Military Spending Hikes For Russia's Budget,” Reuters, 11/27/2023)

• “Spending on defence is set to increase by almost 70% in 2024 from 2023.” (“Putin Approves Big Military Spending Hikes For Russia's Budget,” Reuters, 11/27/2023)

• “Defense spending will comprise 6% of the country’s gross domestic product in 2024, up from 3.9%.” (“Russia Plans Huge Defense Spending Hike In 2024 As War Drags,” Bloomberg News, 9/22/2023)