WASHINGTON - In a break from tradition, Congress passed a full-year continuing resolution (CR) to fund the Department of Defense for Fiscal Year 2025, a move that provides new-start authority but hinders long-term planning. While the legislation delivers $892.5 billion for national security, including modest gains for procurement, it imposes significant cuts to research and development and operations accounts, resulting in a constrained fiscal environment even as the administration talks of higher spending levels.
The topline figure in the CR represents a $6 billion increase over FY24 enacted levels, but the Pentagon ultimately loses buying power compared to last year when adjusted for inflation. The final budget is also $3 billion less than requested by then-President Biden, despite bipartisan calls for higher spending, particularly in the Senate.
Topline Procurement Remains Flat; Research & Development Loses Ground
The FY25 CR provides $168.2 billion for procurement, about $688 million (+0.4%) above the request. Despite the flat procurement topline, several procurement accounts saw steep cuts, including those for the Marine Corps and Space Force. The bill also trims $1.9 billion (-1.3%) from Research, Development, Test, and Evaluation (RDT&E) accounts overall. Meanwhile, operation and maintenance funding takes a particularly hard hit, with a $5.7 billion reduction compared to the request. Military construction is also reduced by $818.4 million.
For additional information on how Pentagon acquisition programs were impacted in the CR, read the full story on Forecast International's Defense & Security Monitor using the link below.