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1 1 (January 22, 2025)

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Key  Points

     Washington must supply the Pentagon with real budgetary growth to enable reforms that
        comeat a cost uptroit but produce lorng-term savings and effciencces.

    *   Consirained defense budgets  corniicate the military's choices, often requiriring it to mcdifY
        or abandon strategic initiatives, reforms, and crucial modernization expenditures.

    *   The  US military's inabiity to address critical rnodernization and force-planning challenges
        has left it in decline relativeto its comnpettors, shifting the global military balance against the
        United States.


Washington  knows  the US military is teetering on17 the
brink of insolvency, but policymakers seem incapable
of solving big, hard, multifaceted, generational prob-
lems betbre the next crisis. Indeed, exactly what crisis
would  make these systemic problems worth addressing
is no longer clear. In the not-too-distant past, actively
supporting European  and Middle  Eastern allies in two
bloody, grinding, existential wars would  likely have
galvanized  policymakers  to pursue  radical change.
Throw   in a half year of nonstop  operations in the
Bab cl Mandeb strait fighting Iranian proxics and deplet-
ing decades' worth of missile inventory in mere weeks,
and the imocment seems ripe for bold action.,
   The  incoming   second   Trump   administration's
Departmient  of Government   Efficiency (DOGE)   will
target w'aste, fraud, and inefficiency across federal
agencies, and the bureaucracxy-laden Pentagon  is no
exceeption2 'This effort is well positioned to boldly
revitalize entrenched Pentagon  processes and  purge


inefficiencies from America's  military. Early priori-
ties will likelv include timely initiatives such as accel-
crating shipbuilding to rebuild the Navy,  increasing
munitions  production to meet  the demands   of mod-
ern  warfare, and  retiring outdated legacy  systems
that nco longer contribute  to warfighting effective-
ness. Long-term  initiatives will likely focus on revi-
talizing military readiness while addressing systemic
inefficiencies in the defense bureaucracy-including
rigorously scrubbing the Pentagon's sprawling fourth
estate, redirecting resources from redundant agencies
and overhead  to critical priorities like modernization
and  readiness, and  sim-ul'taneously reducing oper-
ation demands   on the force and  working  to realign
defense strategy.3
   The most  direct step that the incoming adnministra-
tion can take now  to start closing the gap of declin-
ing deterrence across three theaters is providing the
military with real and consistent budgetary increases.


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