On August 2, 2019, President Trump signed the Bipartisan Budget Act of 2019, raising the budget caps for FY 2020 and FY 2021 and suspending the debt ceiling. Seamus Daniels and Todd Harrison assess the impact of the budget deal on defense in their latest analysis.
Raytheon and United Technologies Corporation recently announced plans to merge into a new company, Raytheon Technologies, in 2020. While the past few years have seen significant industrial consolidation with the defense sector, the proposed Raytheon-UTC merger would be the largest defense merger in recent history.
Expectations have been building for the FY 2020 defense budget request, a budget that acting secretary of defense Shanahan has called the “masterpiece.” As the Office of Management and Budget (OMB) works on finalizing the request, experts from the CSIS International Security Program outline what to look for in the FY 2020 defense budget.
The OCO budget has been taken advantage of to skirt defense spending limits and to fund base budget activities that do not actually constitute war funding. However, moving all of OCO’s enduring costs into the base budget for the final two years of the Budget Control Act caps may not be politically expedient for passing a budget agreement for FY 2020 and FY 2021.
The National Defense Strategy calls for “modernization of key capabilities through sustained, predictable budgets,” yet the unclassified summary and FY 2019 budget request fail to show how the Department of Defense will fund such a priority in the face of long-term, strategic competition with China and Russia.