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GovCon Expert McAleese on Full-Year Continuing Resolution’s Impact on Pentagon’s Buying Power

1 min read

A McAleese & Associates report says the Department of Defense could expect a cumulative impact of about 8 percent or a drop of about $60 billion in purchasing power under a full-year continuing resolution for fiscal year 2022. 

Under a CR, agencies are operating at previous fiscal year’s spending levels.

Jim McAleese, founder of McAleese & Associates and a three-time Wash100 winner, reported that DOD could see its spending level fall to approximately $655 billion under a year-long CR and an inflation rate of 7 percent.

According to the report, hypersonic strike, space, nuclear triad recapitalization, hypersonic defense and emerging technologies, such as artificial intelligence, quantum computing, 5G and assured microelectronics, are among the programs that would be most impacted under a full-year CR.

“A year-long CR would stall progress towards today’s readiness, and tomorrow’s modernization … It would have devastating impacts on the Air Force’s ability to retain qualified airmen, maintain our readiness, and modernize for tomorrow,” Gen. Charles Q. Brown Jr., chief of staff at the U.S. Air Force, said during the House Appropriations defense subcommittee hearing on Jan. 12.

DOD Comptroller Mike McCord also highlighted the potential impacts of a CR during the hearing.

“The most damaging impacts would be on those who deserve it least — our service members and their families,” McCord said. “The biggest tolls would be in our military personnel accounts and our training and readiness accounts.”

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