What Are Key Milestones and Decisions Affecting U.S. Defense Spending in 2025?
February 14, 2025 — Seamus P. Daniels
Congress and the White House face a host of fiscal challenges over the course of 2025 that will impact U.S. defense spending. Congress has yet to appropriate funding for fiscal year (FY) 2025 as the Department of Defense (DOD) continues to operate under a continuing resolution (CR). The Trump administration must also submit its budget request to Congress for FY 2026.
However, action on the FY 2025 and FY 2026 defense budgets must also be taken amidst the backdrop of other major fiscal issues. The administration and Congress must negotiate over suspending or increasing the debt ceiling to prevent the government from defaulting on its debt. Congressional failure to pass appropriations for FY 2025 or at least another CR by March 14 would lead to a government shutdown, while DOD faces the threat of sequestration if full-year appropriations are not passed for the entire government by April 30. Finally, the expiration of tax cuts passed under the first Trump administration at the end of the year, and their possible extension will be another point of negotiation.
Congress and the administration could try to tackle some combination appropriations for FY 2025 and FY 2026, the debt ceiling, and tax cut extensions in a grand bargain. Republicans in both the House and Senate are considering using the budget reconciliation process to do so.
However, the convergence of all of these fiscal issues in 2025, along with narrow majorities in both chambers of Congress and political divisions between and within the two parties, poses a major challenge to effectively funding DOD and the rest of the federal government.
Below are the key dates for fiscal milestones that could impact defense spending in 2025.
https://defense360.csis.org/what-are-key-milestones-and-decisions-affecting-u-s-defense-spending-in-2025/
