Back to news

February 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Pentagon budget request increases R&D funding, cuts legacy planes

By: Aaron Mehta

WASHINGTON — U.S. President Donald Trump's defense budget request for fiscal 2021 includes major investments in research and development portfolios as well as “crucial” technologies as part of what the Pentagon is branding an “irreversible implementation” of the National Defense Strategy.

However, the budget also features overall cuts to the Army and Navy top lines, as well as the divestment of legacy platforms from the Air Force.

The president is requesting $705 billion for the Defense Department, including $69 billion in overseas contingency operations, or OCO, wartime funds. Total national security spending, including for the National Nuclear Security Administration and other outside agencies, is $740 billion, as set by a congressional budget agreement last year.

Although not included in the budget documents, total top-line projections over the Future Years Defense Program, or FYDP, are $722 billion in FY22, $737 billion in FY23, $753 billion in FY24 and $768 billion in FY25, according to a senior defense official.

Service budget top lines are $178 billion for the Army, a drop by $462 million from FY20 enacted levels; $207 billion for the Navy, down $1.9 billion from FY20; and $207 billion for the Air Force, up $1.7 billion from FY20. The budget also requests $113 billion for defensewide efforts, which includes the so-called fourth estate agencies, down $6.5 billion from FY20. Overall procurement funding sits at $136.9 billion.

The OCO request of $69 billion is down dramatically from last year's $164 billion, and it comes in three flavors:

  • $20.5 billion in “direct war requirements,” or funding for combat operations that will end at some point in locations like Iraq and Syria.
  • $32.5 billion in “enduring requirements,” which covers funding for the sustainment of bases, as well as pots of money like the European Deterrence Initiative.
  • $16 billion in “OCO for base,” a funding mechanism for money that could be in the base budget but is classified as OCO for the purpose of skirting budget caps imposed by Congress.

Projection for OCO funding falls $20 billion in FY22 and FY23, and then to $10 billion for FY24 and FY25, as “certain OCO costs” are absorbed by the base budget, according to the White House's summary tables. There's no nondefense discretionary OCO proposed for FY21 or the out years.

“This is a budget that makes difficult choices but they are actually choices that support the National Defense Strategy,” a senior defense official said on condition of anonymity ahead the budget rollout.

“We can't have the best of everything in all areas,” the official added. “The low-hanging fruit is gone.”

Among the tough choices: retiring 17 B-1 bombers, 44 A-10 planes, 24 Global Hawk drones, as well as 16 KC-10 and 13 KC-135 tankers from the Air Force.

“When you look at these aircraft, they disproportionately take too much of the readiness account. That's where we've got to go,” the official said. “Those are really the tough choices we had to make. Because we can now take the additional manpower, the [spare parts], all those things we need to make those other aircraft more operationally available and have more flight hours available in the mission we need them to do.”

Congress usually revises presidential budget submissions substantially before passing them into law. A prime target for lawmakers this year will be the Trump administration's favoritism for defense spending over nondefense, which contradicts the rough parity between two that's characterized bipartisan budget deals in recent years.

Congress will also likely upend the administration's FY21 proposal to cut the nondefense base budget by 5.1 percent while adding 0.08 percent to the base defense budget. There are slim odds for Trump's proposal extending budget caps — set to expire next year — through 2025, wherein defense would increase by roughly 2 percent each year as nondefense discretionary decreases 2 percent each year.

‘Irreversible'

Budget documents were branded with the phrase “irreversible implementation of the National Defense Strategy,” a notable signal in an election year that, should Trump not be reelected, could result in major changes to the national budget and American strategy come January.

The branding in support of the NDS can be found throughout the document, even at lower levels. For instance, the Pentagon's security cooperation account has been rebranded the “NDS Implementation (NDS-I) account.”

Missing from the budget request are funds for Trump's border wall with Mexico. However, CNN reported this weekend that “billions” of defense dollars will be going toward the wall effort, with an announcement expected later this week.

Key defense spending accounts break down like this:

  • Mission-support activities: $66.8 billion
  • Aircraft and related systems: $56.9 billion
  • Shipbuilding and maritime systems: $32.2 billion
  • Missiles and munitions: $21.3 billion
  • Space-based systems: $15.5 billion
  • Ground systems: $13 billion
  • C4I systems: $11.9 billion
  • Missile defeat and defense programs: $11.6 billion

The department is requesting $106.6 billion to fund research, development, test and evaluation (RDT&E) efforts, an increase of $2 billion over the FY20 enacted figures — something another senior defense official called the “largest [RDT&E] request in over 70 years.” Funding for that came from savings from the defensewide review, which found $5.7 billion in money to reprogram in FY21, as well as the retirement of older platforms.

Four “crucial” technologies are now bunched together under a new acronym — ACE, which stands for advanced capability enablers: hypersonics at $3.2 billion, microelectronics/5G at $1.5 billion, autonomy at $1.7 billion, and artificial intelligence at $800 million.

However, for the second straight year, science and technology funding for early technology development (the Pentagon's 6.1, 6.2 and 6.3 accounts) is requested at $14.1 billion; that includes $3.5 billion for the Defense Advanced Research Projects Agency. Congress plussed that funding to $16.1 billion in FY20 enacted levels, meaning the request here is $2 billion less than what the Pentagon received this current year.

Cyber activates total $9.8 billion, including $5.4 billion for cybersecurity-focused projects. The rest of the funding goes toward supporting defensive cyber operations.

https://www.defensenews.com/smr/federal-budget/2020/02/10/pentagon-budget-request-increases-rd-funding-cuts-legacy-planes/

On the same subject

  • Multimillion-euro order from Hungary

    October 2, 2019 | International, Land

    Multimillion-euro order from Hungary

    September 30, 2019 - Rheinmetall to manufacture main armament and hulls for PzH 2000 self-propelled howitzer and Leopard 2 main battle tank. Rheinmetall is taking on an important role in the modernization of the Hungarian Army. The Düsseldorf-based Group is producing the main armament and fire control technology for forty-four Leopard 2 main battle tanks as well as the main armament, fire control technology and chassis for twenty-four PzH 2000 self-propelled howitzers. The package also encompasses thirteen HX and TGS logistic trucks. The contract, worth around €300 million, was recently signed. Delivery begins in 2021 and will be completed in 2025. Rheinmetall has partnered with Krauss-Maffei Wegmann (KMW) to carry out the project. In December 2018 KMW won an order from the Hungarian armed forces for forty-four new Leopard 2A7+ tanks and 24 new PzH 2000 self-propelled howitzers. This will make Hungary the 19th Leopard 2 user nation and the eighth nation to opt for the PzH2000. As well as having design authority, Rheinmetall is the original equipment manufacturer (OEM) of the 120mm smoothbore technology used in all versions of the Leopard 2 tank. The same is true of the 155mm L52 main gun of the PzH 2000 self-propelled howitzer. Tried and tested around the globe, the Group's 120mm smoothbore gun and ammunition have been continuously perfected right from the start. The higher-pressure 120mm L55A1 gun earmarked for the Leopard 2A7+ was successfully qualified at the end of 2017, and already supplied and installed for two Leopard 2 user nations in mid 2018. Moreover, the L55A1 tank gun is capable of firing the programmable DM11 multipurpose round. In addition, Rheinmetall possesses comprehensive expertise in the field of tracked armoured vehicles, including as an OEM. The Group developed the chassis of the PzH self-propelled howitzer. https://www.rheinmetall-defence.com/en/rheinmetall_defence/public_relations/news/latest_news/index_21504.php

  • CH-53E Heavy Lift Helicopter Reaches One Million Flight Hours

    August 5, 2019 | International, Aerospace, Naval

    CH-53E Heavy Lift Helicopter Reaches One Million Flight Hours

    Aircraft First Entered Service With The USMC In 1981 The CH-53E Super Stallion helicopter reached a major milestone this year by logging more than one million flight hours since it first entered service with the Marine Corps in 1981. The CH-53E is a versatile machine used for amphibious assault and long-range insertion, delivering troops, vehicles and supplies. This rapid resupply vehicle is still one of the most used aircraft in the United States military air arsenal. “The CH-53E has seen more work than was ever anticipated it would see,” said Major Matthew Baumann, H-53 In-Service, Naval Air Systems Command Heavy Lift Helicopter program office (PMA-261) co-lead. Currently, there are 142 CH-53E Super Stallions in service. Though out of production, the CH-53E is in the middle of a “RESET” – a rolling period of rebuilding, upgrading and increasing safety, reliability and capabilities to lengthen its service life through 2032. According to Baumann, the first 25 helicopters have completed their RESET process, “allowing the squadron commanders to plan for training, operations and maintenance with renewed confidence,” he said. Resetting of the CH-53E fleet is an important segue from the current platform to the new CH-53K King Stallion, which will be its heavy-lift replacement. “The CH-53K is the most powerful helicopter ever built by the United States military,” said Colonel Perrin, PMA-261 program manager. “It will be safer, faster and more capable than any previous heavy lift helicopter in the battlespace.” Its development is currently in the testing and capability requirements phase, with a goal of bringing the CH-53K to fleet Marines by 2024. “It's a game-changer,” said Perrin. “We can't wait to have the K available for fleet use. But for now we've got a capable, reliable and safe helicopter doing heavy-lift for our Marines.” http://www.aero-news.net/index.cfm?do=main.textpost&id=8e63f37f-9874-4fb9-acf1-72e67d6a9cbd

  • LOCKHEED MARTIN ANNOUNCES $100 MILLION VENTURE FUND INCREASE

    June 11, 2018 | International, Aerospace

    LOCKHEED MARTIN ANNOUNCES $100 MILLION VENTURE FUND INCREASE

    BETHESDA, Md., June 7, 2018 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) announced the doubling of its venture capital fund to $200 million and recent investments in early-stage companies focused in the areas of autonomy and advanced manufacturing. "Our focus is on finding and investing in companies developing cutting-edge technologies that will grow our business and disrupt our industry," said Chris Moran, vice president and general manager of Lockheed Martin Ventures. "We're developing long-term strategic partnerships with companies and helping them navigate through the early stages of product development while leveraging our decades of experience working with government customers." Enabled by tax reform legislation, Lockheed Martin Ventures is focusing the additional $100 million on early-stage companies in the areas of sensor technologies, autonomy, artificial intelligence and cyber. With the fund's latest investment, Lockheed Martin expanded its relationship with nTopology, creator of ELEMENT, an emerging software technology in the high-growth additive and advanced manufacturing sectors. "Our investment in nTopology will bring strategic advantages in Lockheed Martin's computational design processes and help shorten the periods between the design and manufacturing phase," said Moran. The increase in the venture fund is part of $460 million that Lockheed Martin is investing as a direct result of tax reform savings. The tax reform legislation enables Lockheed Martin to make investments that improve its global competitiveness, including investing in transformative technologies that will bring lasting benefits to customers, employees and communities. The company is making additional investments enabled by tax reform savings, including: $200 million additional investments in capital expenditures and research and development in 2018 $100 million in employee training and educational opportunities over the next five years $50 million investment in science, technology, engineering and math (STEM) education enrichment, including the establishment of a new Lockheed Martin STEM Scholarship Fund $10 million for the launch of the Lockheed Martin Innovation Prize competition More details of Lockheed Martin's investments enabled by tax reform legislation can be found here. About Lockheed Martin Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 100,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. SOURCE Lockheed Martin https://news.lockheedmartin.com/2018-06-07-Lockheed-Martin-Announces-100-Million-Venture-Fund-Increase

All news