[NOTE: Will the Pentagon get a “catch-up-with-inflation” bonus? It usually gets what it wants from Congress, and sometimes even more. With the coming of a new not-so-Cold War, the U. S. war budget seems primed for significant growth. An old story is “new” again. Stay tuned.]
By Abhijith Ganaparavam & Mike Stone — Sept. 12, 2022
The U.S. Department of Defense will need an extra $42 billion in the next fiscal year to make up for a shortfall in how much it can buy as rising prices eat in to its procurement budget, a defense industry group said in a report coming out this week.
“Significant inflation is a major challenge” for the Pentagon and its thousands of contractors, compounding the challenge from COVID-19 and dealing with the supply-chain crisis, said the National Defense Industrial Association report, which was reviewed by Reuters ahead of publication.
From fiscal years 2021 to 2023, the total loss of buying power to the Pentagon from inflation will exceed $110 billion, the report said.