The Importance of Increasing Defense Funding and Production in the United States
Since Russia invaded Ukraine in 2022, the United States has provided Kyiv with more than $43 billion worth of security assistance. However, opponents of aid to Ukraine argue that this assistance is depleting inventories of systems and ammunition that are crucial for our own forces, potentially leaving us ill-equipped for a high-intensity conflict.
While the quantity of weapons provided to Ukraine is relatively small compared to what we need, it is not the root cause of our under-capacity problem. As Mackenzie Eaglen of the American Enterprise Institute has pointed out, our defense budget has consistently prioritized other agendas, compromising our combat power and production capabilities.
It is also important to note that relying on our allies for support or a lend-lease program may not be a viable solution. Even before providing assistance to Ukraine, the British military lacked sufficient ammunition to sustain a major war for more than a week.
Cutting off aid to Ukraine will not solve our problems either. Instead, we need to significantly increase our defense spending and accelerate defense production. Our primary adversary, China, is rapidly expanding its military capabilities and poses a real threat to the United States. By 2035, China aims to triple its nuclear arsenal and conquer Taiwan by 2027.
Despite these threats, President Joe Biden has reduced the budget for troops, ships, and aircraft until 2035. While Congress has allocated additional funding, it is simply not enough to address our deficiencies. More than one dollar in eight from the 2023 budget is spent on non-defense items that belong in other government budgets, further diverting resources.
Congress must also take responsibility for the funding shortfalls and disruptions caused by debt-ceiling standoffs and sequestrations. The failure to pass spending bills on time affects the Department of Defense (DOD) significantly. If spending bills are not passed by the end of the year, defense spending cuts of 8.6 percent are imposed.
We are currently ill-prepared to rapidly produce essential weapons and ammunition. Our defense industry, which was scaled down after the Cold War, is insufficient for wartime production. Replacing the ammunition and missiles provided to Ukraine alone will take more than five years, and our pre-Ukraine inventories were already inadequate.
Moreover, we have become overly reliant on other countries for essential minerals and resources. Rather than mining and processing these resources domestically, we outsource this work, which is inefficient and environmentally unpleasant.
To address these domestic shortfalls and ensure our military capabilities match our strategic goals, we must increase funding, rebuild our defense industry, and relax restrictions on allied cooperation in defense production. The solutions are clear, but as Carl von Clausewitz famously said, “Everything is very simple in war, but the simplest thing is difficult.”
Funding and Reform
First and foremost, we need to increase defense funding. Both the Trump and Biden administrations have recognized the need for a 3 to 5 percent annual increase in defense allocations above inflation. However, this increase has not materialized, and our current budget actually loses ground due to inflation. Filling this gap requires at least $40 billion more than Biden’s proposed budget.
Congress must also return to the regular order of passing budget bills on time. Delayed budgets result in temporary spending bills that prevent long-term contracts and investments in munitions production, costing the DOD about $5 to $6 billion in purchasing power each month.
Providing timely and full funding would instill confidence in the defense industry, encouraging manufacturers to invest in plants and hire workers necessary for replenishing our military stockpiles. Multiyear contracts should be implemented to provide stability and prevent sudden funding cuts. The authority for multiyear contracts should be expanded, and DOD should be urged to make fuller use of this approach.
We should also reform the International Traffic in Arms Regulations, which currently create barriers for domestic and international cooperation in defense production. Factories operated by allies and domestic businesses specializing in cutting-edge technologies could significantly enhance our production capabilities.
The Defense Department needs to advocate for the resources it needs and speak out against any impediments or restrictions imposed by the White House or Congress. Ensuring that our men and women in uniform have the necessary weapons and ammunition is vital for their mission and our national security. Failure to provide these supplies puts us at risk of losing our next war.
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