Obama Administration Urges Flat 2013-2017 Defense Spending Plan

December 7, 2011

The White House and Pentagon are near agreement on a draft five-year defense budget that flattens expenditures though 2017, with the lowest war spending since 2004, according to an Office of Management and Budget document.

The OMB also endorses a Navy plan to delay by two years start of construction on the Huntington Ingalls Industries Inc. CVN-79 John F. Kennedy aircraft carrier, and provides $508 million to bankroll the new U.S. Office of Security Cooperation in Iraq. OMB said the White House has yet to decide on whether defense civilian employees and military personnel will get a pay raise.

Defense spending in 2013 would be reduced 1 percent from this year's pending $525.3 billion budget request before growing annually 1.8 percent in 2014, 2.3 percent in 2015, dropping to 1.9 percent in 2016 and increasing 2.2 percent in 2017, according to the 23-page document, a Nov. 29 OMB "pass-back" budget to the Pentagon. Bloomberg News obtained the document. 

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