The New Budget for Defence: Unpacking the Record $886bn Spending Act

The 2024 National Defense Authorization Act (NDAA) has been passed by the United States Congress, approving a substantial budget of $886bn for defense spending. This represents a noteworthy 3% increase from the previous year, with an additional $28bn designated for the defense budget.

A key provision of the bill includes the authorization for the procurement of up to 13 Virginia-class submarines. Furthermore, the Secretary of the Navy has been directed to conduct an analysis of approaches to deploy a tenth aircraft carrier and its associated air wing.

Moreover, the bill includes specific limitations, such as a prohibition on the use of funds for the reduction in the fleet of KC-135 aerial refueling tanker, as well as a restriction on the retirement of not more than 68 F-15E jets. These measures are aimed at ensuring the maintenance and readiness of critical military assets.

The budget also encompasses an increase in operational cost spending, with a 5.2% boost to service member basic pay. This increase exceeds the basic inflation rate of 3.1% that occurred in 2023.

However, despite these allocations, only $300m has been allotted to the Ukraine Security Assistance Initiative, falling short of the anticipated support for Ukraine. President Biden has requested a separate $105bn national security package for assistance to Ukraine and Israel, which has yet to be passed by Congress.

As the remaining funds in the Presidential Drawdown Authority and replenishment funds begin to diminish, concerns have been raised about the US’s readiness and its ability to support Ukraine as needed. The Pentagon Press Secretary, Maj. Gen. Pat Ryder, has urged Congress to pass supplemental funding for additional support for Ukraine.

Nevertheless, the NDAA does include a $14.7bn Pacific Deterrence Initiative aimed at building military force capacity in Taiwan and deterring aggression from China in the Indo-Pacific theater. This initiative also incorporates aspects of the AUKUS agreement related to the sale of nuclear-capable submarines to Australia.

Looking ahead, there is a continued sense of anticipation for signs of enduring support for Ukraine. Observers will be closely monitoring the developments in Congress and the potential passage of additional funding to bolster support for Ukraine.

In conclusion, the passage of the NDAA and the record $886bn budget for defense spending signifies a critical stage in the allocation of resources for national security. The provisions encompass a wide range of strategic initiatives, from the procurement of submarines to the bolstering of military capacity in key regions. However, the allocation of funds for specific purposes, such as support for Ukraine, remains a topic of ongoing interest and importance.