Defense Sector Post-Election: Caution Sets In
By Sandra I. Erwin
Investors’ euphoria about rising Pentagon budgets and a lessening of regulations in a Donald Trump administration is giving way to realism and caution.
Defense watchers overwhelmingly agree that military spending will go up under Trump, but warn of caveats. Republican control of the executive and legislative branches of government almost ensures that the current caps on discretionary federal spending will be lifted.
Doubts are growing, however, over whether the administration and Congress will be able to come together around a defense budget plan in the long term. Whereas congressional defense hawks will seek to immediately pour money into areas like equipment modernization and force readiness, Trump has been adamant that any defense boost would have to be offset by reductions in overhead, bureaucratic bloat, fraud and waste in Pentagon programs.
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