About Government Industry

BNET Government provides daily industry trends and global news coverage with insights for managers and executives within the world wide business of government contracting. We analyze new and interesting contract awards, government policy changes, and the trends in procurements and spending. There will also be discussions of the sector with a focus on small and innovative companies and business lines. The world's governments spend billions each year on a variety of hardware and services and the site will discuss how the money is being allocated.

Showdown Expected On Defense Spending

By Matthew Potter | Jul 20, 2009

President Obama has let Congress do the heavy work on the three major issues that he has advocated since his election. On the “Stimulus”, health reform and “cap and trade” he is having the legislative branch write the law with some input. It is only on defense spending that and foriegn policy that he has actually shown differences with the Democratic controlled House and Senate.

In imitation of President Bush, Obama has issued signing statements with various legislation when he felt the new law infringed on his rights as the executive. Many of these have been related to foriegn policy such as one ignoring direction on limits to the International Monetary Fund after the U.S. provided emergency funding. The House quickly passed a law after the statement saying that if Obama did not follow the rules the funding would be removed.

The other major conflict now appears to be the content of the defense budget. Obama and his Secretary of Defense, Robert Gates, have proposed in their 2010 budget to end several major programs. It has been possible in the past to end acquisition programs and Congress has agreed on several. On military aircraft production, though, there has been major disagreement. The administration wanted to end F-22 production at 187 aircraft. There were to be no more C-17 transports and end the dual source for the F-35 JSF engine.

The Congress will claim that they are doing what is best for the country. That they are giving the military what they need. Another major underlying reason is jobs in Congressional districts. Major defense programs create these and the U.S economy has been shedding jobs over the last year and looks at facing double digit unemployment soon. There have always been earmarks and directed spending in defense bills and normally the Administration gets most of what they want. In the end it is a big compromise.

Obama and Gates have been very aggressive in saying they will veto the budget if the F-22 money is included. Normally that does not happen in the end when the bill is finished in the late Fall. The administrations in the past have accepted the earmarks as a cost of doing business. The five percent of funding not asked or programmed for will be spent, perhaps some of it wastefully, to get the ninety-five percent wanted. That is how a democratic, republican form of government works. The chances of a veto are small as the F-22 especially has a great deal of support in both the House and Senate.

Matthew Potter works supporting US Army aviation programs. He holds degrees in history as well as studying at the Defense Acquisition University. He has written for Seeking Alpha and at his own website, Defense Procurement News.

BNET User Analysis

Web Buzz:
  • Op-Ed: Sustainable Healthcare Reform

    The Health Care Blog - 195 days 10 hours 14 minutes ago

    By LAWRENCE W. ARRINGTON President Obama made a risky wager when he decided to let Congress take the lead on crafting health care legislation, rather than presenting his own reform package. Congress is not known for taking bold, decisive leadership on tough issues. Normally, it reacts and gridlocks; it doesnt lead. As Congress takes its...

  • Cap And Trade-A Tax Increase

    No Smoke Blown - 165 days 3 hours 39 minutes ago

    The National Chamber of Commerce has requested a trial on the issue of Cap and Trade. Why? President Obama has declared it a given. He declared Heath Care Reform a given. He still does. Do you trust your government? The same government that would write a trillion dollar Health Care Reform bill and never

  • Climate Bill heating up again — maybe in time for a spring vote

    VentureBeat - 25 days 7 hours ago

    Emerging from a media firestorm over racially-charged comments he made during the Obama campaign, Senator Harry Reid (D-Nev.), the Senate majority leader, has turned the spotlight back onto passing an effective climate bill. The move comes after nearly a month of post-Copenhagen malaise. The failure to produce a global agreement to reduce...

  • Would Tort Reform Lower Health Care Costs?

    Wonk Room - 151 days 3 hours 43 minutes ago

    During Wednesday’s address to Congress, President Obama proposed including malpractice reform in his health care plan. The move was widely interpreted as an olive branch to Republicans, who have long argued that capping jury awards in medical malpractice cases would limit the use of “defensive” treatments and significantly lower health...

  • Young Adults May Pay Big Share of Health-Care Reform's Cost

    Washington Post - 146 days 21 hours 46 minutes ago

    As health-care legislation advances through Congress, the young adults who were so vital to President Obama's election are emerging as a significant beneficiary of his top domestic priority, but they are also likely to play a major role in funding any reform. In a campaign-style rally Thursday at the University of Maryland at College Park, Obama...

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement