May 01, 2014

Defense cuts loom as sequestration savings run out

May 2, 2014 – The top Democrat on the House Armed Services Committee noted in The Hill that he intends introduce a defense bill amendment to close excess military bases.

Rep. Adam Smith, D-Wash., toldThe Hill that the amendment is likely to get "crushed" but stated the importance of at least starting a conversation about the $1 trillion in defense cuts the Pentagon has to make over the next nine years. NAFCU is closely watching these and related developments for their impact on its members serving military servicemembers and their families.

The House Armed Services subcommittees have begun markup of the National Defense Authorization Act. Thursday's article in The Hill said the panels have so far rejected the Pentagon's decisions to "retire an aircraft carrier, reduce military compensation and benefits, and close excess bases." The Department of Defense is forced to cut $1 trillion over 10 years because Congress failed to compromise on tax and spending reform before 2013 when the cuts began.

These cuts, including the ongoing request from the Pentagon for Base Realignment and Closure authority, will be discussed during NAFCU's Defense Credit Union Summit held in conjunction with this year's Annual Conference and Solutions Expo in Las Vegas. The half-day summit, exclusively for DoD-related credit unions, will include remarks from defense leaders on the most pressing defense issues.