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1 1 (February 5, 2021)

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Key  Points

    The nw  leaders   in the Defense Decprtrnen nd C onress shnu$d agree on a budget
    thatsets defnse sndin g an a trajectory 'f 3- percent red growth.

  & If funding reductions occur, narrow chices of the pas- shoud oe expanded to levergni
    lessons learned.
    n  ough thire are no easy buttons, a counterintuitive ic'-focsed a pproach that pri-
    orries size and training of the fce over `orce structure and innova-ion over invention
    could mitigate pevious bludgeHreduction consequences.

    'e  stakes are'hi, as the cost if bad dec isi n-rmaking is the Nives cf our yOuLing won men
    arc men who  will fight he nexr war.


The military is recovering from years of budgets
that insufficiently supported the missions requested
of it.' This recovery is perishable.
   As a new team. of leaders assmres control of the
Pentagon  and its decision-making processes, it
should support a new budgt agreement mat sets
the Dpartment of Defense (DOD) top line on a tra-
jectory retonndided  by  the National Defense
Strategy Commission of 3-5 percent real growth?]
   If a budget agieeent imposes a defense top line
less than that, we should learn from the past and
consider countI~ntuitiVe options to mitigate impos-
:ng unacceptable risk to current or future forces and
military competitiveness. The stakes are high, as the
cost of bad decision-making is the lives ofouryoung
women  and men who will fight the next war.


The  History of Budget   Ups  and  Downs

Over the nast seven decades, the DOD has experi-
enced  nUfmerous, sometiies dramatic, funding
reductions and increases. Three years of increased
budgets, fiscal years (FY) 2M8---2oo, supported


readiness recovery lost during the previous down-
turn from FYzota to FY'207 and started rebuilding
near -peer competitiveness lost during the two dec-
ales of counterinSurgency operations. This roller-
coaster cycle of defense funcing is neither efficient
nor desired, but it does happen regularly. We can
learn from the past to inform the future.
   The manner in which the department absorbed
budget reductions in the past led to readiness dis-
asters such as Kasserine Pass duting World War li
(+nmy four of 50 tanks of a U3S Army battalion sur-
vived a battle with the Gernians), Desert One dur-
ing the Iran Hostage Crisis in whh, at the height
of the hollow Army, we failed to execute the mis-
ston and lost eiat ri, sEce members), and the most
recent naval and air accicents (in which a lack of
training resulted i-n niedents with he US iahn S.
MicCai and USS Fitzgerald)'
   There were  many  conriutors   to previous
budget-recuction decisions, including poor plan-
ning horizons, strategic and operational irnpera-
tives, legislative restrictions, and institutional
tendencies.


'NecesNRO  \_MAM

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