Budget Delays Could Slow Army Modernization

Budget Delays Could Slow Army Modernization

AMPV testing
Photo by: U.S. Army/Mark Schauer

A political impasse over government funding is creating a bumpy way forward for Army transformation programs.

Since the Oct. 1 start of the fiscal year, the Army and the rest of the federal government have been funded under a temporary resolution that includes restrictions on starting new military construction projects and procurement programs.

The situation isn’t unusual and sometimes includes a brief shutdown of federal functions while lawmakers and the White House reach a compromise. Last year, the Army and the rest of the government operated for three months under a so-called continuing resolution before a final budget was signed into law.

What is unusual and harmful to the Army is this year’s restricted funding could continue for several months at a time when several critical modernization and transformation programs are supposed to be hitting milestones. The Armored Multi-Purpose Vehicle, the Next-Generation Squad Weapon and long-range precision munitions are among the programs that are at a critical stage that could be delayed. Some research projects related to soldier lethality could also be delayed.

Temporary funding keeps the government running through Dec. 3. What happens at midnight will depend on what agreement, if any, is reached between Congress and the White House. 

A stalemate in Congress over economic priorities complicates work on the annual defense policy and funding bills. 

Some analysts predict Congress may not pass a full defense budget before March.

The Army expects to receive at least $173 billion for fiscal 2022 with a possibility to getting more because of efforts in the House and Senate to increase what otherwise would be a $3.6 billion smaller budget.

Army Secretary Christine Wormuth said in October that it is possible modernization program schedules could be altered depending on the amount and timing of funds, and she noted the challenges that come from delayed congressional action. 

Temporary funding is “disruptive and inefficient,” she said, because new programs are not allowed to begin.