On August 2, 2011, Congress passed the Budget Control Act (BCA), which raised the debt limit, cut $917 billion in federal spending over 10 years, and established the Joint Select Committee on Deficit Reduction (the “super committee”). The super committee was supposed to produce legislation by November 23, 2011 to further reduce spending by at least $1.5 trillion over 10 years.
Senate Appropriators Whiff on MEADS
Senate appropriators do not appear to have gotten the memo.
Transparency Leads to Defunding of MEADS
A little transparency certainly goes a long way.
F-22 Plagued by Recurrent Problems, Cost, Lack of Mission
On the heels of much-publicized difficulties with the F-22 Raptor’s oxygen system, the Department of Defense (DOD) has awarded Lockheed Martin a $19 million contract to retrofit an automatic oxygen system on 40 of the planes it originally sold to the Air Force.
Potential Savings Exist in MDAP
The current economic climate, record national debt, and automatic cuts to the Department of Defense (DOD) posed by sequestration have placed defense spending on the political front burner. Leaders in Washington, even inside the Pentagon, have stated publicly the dangers of continued deficit spending. On August 26, 2010, Admiral Mike Mullen, then-Chairman of the Joint Chiefs of Staff, referred to the national debt as the “single-biggest threat to our national security.”
Potential Savings Exist in DOD Budget
Faced with a historic national debt and a projected $2.2 trillion deficit over the next two years, the country’s leadership is currently grappling with ways to reduce spending. One program which politicians from both sides of the aisle agree should be eliminated is the Medium Extended Air Defense System (MEADS). Created in 1995 to replace aging missile defense systems in the U.S., Germany, and Italy, cost overruns, delays, and underperformance have enveloped MEADS in a cloud of doubt.
DHS Grants: Legacy of Waste
Following the attacks of September 11, 2001, the U.S. prioritized Department of Homeland Security (DHS) grants to prepare state and local emergency personnel for further incidences of terrorism or other catastrophic events. However, like most programs, members of Congress quickly began using DHS grants for parochial projects. The Center for Investigative Reporting stated in 2011 that the U.S. has spent $34 billion on such grants over ten years.
Minibus Drives Savings
On November 18, 2011, President Obama signed the “minibus” appropriations legislation, which contained three fiscal year (FY) appropriations bills: the Department of Agriculture, Rural Development, Food and Drug Administration, and Related Agencies; Commerce, Justice, Science and Related Agencies; and Transportation, Housing and Urban Development, and Related Agencies. According to a November 17, 2011 press release by House Speaker John Boehner (R-Ohio), the legislation decreases spending in these appropriations bills by $7 billion from fiscal year (FY) 2011, and comes in at $98 billion below the president’s budget request.
MEADS Test “Successful,” Cost and Purpose Uncertain
In an apparent last-ditch attempt to secure funding for the troubled Medium Extended Air Defense System (MEADS) program, MEADS International, the primary contractor comprised of Lockheed Martin and MBDA, conducted a flight test at the White Sands Missile Range on November 17, 2011. According to a press release, the test “demonstrated an unprecedented over-the-shoulder launch of the MSE [missile segment enhancement] missile against a simulated target attacking from behind.” Even though the U.S. and Germany have already indicated that they do not intend to undertake the acquisition phase of MEADS, funding has been approved for two flight tests. An intercept flight test is scheduled for the end of 2012. It is unclear how much these tests will cost.
Earmark Moratorium: Earmarks Live On, Transparency Does Not
Considering that an earmark moratorium is in effect, Citizens Against Government Waste (CAGW)’s Pork Patrol sure seems to be uncovering a lot of earmarks.
When the one-year earmark moratorium was announced for fiscal year (FY) 2012, seasoned observers anticipated that earmarks would not disappear, but merely change shape. Judging by the 15 appropriations bills that CAGW has analyzed thus far, this viewpoint has been corroborated. Eleven of these bills contain earmarks, totaling 248 projects worth $9.5 billion. While the number has substantially decreased compared to prior years, any earmark violates the moratorium. Leading the way is the Department of Defense (DOD) bill, in which the Senate included 49 earmarks worth $2.9 billion and the House added 72 earmarks worth $3.9 billion.