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Proposed military slush fund would risk new boondoggles: Experts

A proposal supported by ex-NYC Mayor Mike Bloomberg would speed up DoD acquisition authority without Congressional approval.

Reporting | Military Industrial Complex

As U.S. competition with China reaches a fever pace, Congress should give the Department of Defense the ability to initiate some contracts without having to secure funding from lawmakers, according to Michael Bloomberg, the former mayor of New York City and current chairman of the Pentagon’s Defense Innovation Board.

The proposal, which Air Force Secretary Frank Kendall first pitched earlier this year, would allow military leaders to “fill gaps as they arise, without having to wait on the passage of annual appropriations,” as Bloomberg wrote in Defense News on Monday. “There is always risk — financial and operational — in adopting cutting-edge technologies, but keeping the U.S. military the world’s foremost power requires greater appetite for risk.”

The Pentagon, for its part, says the proposal is necessary to deal with the “very aggressive contest for military technology superiority” between the United States and China. But watchdogs are doubtful about the potential upsides of such a provision. “It could lock in expenditures and commitments prior to Congressional approval, which would violate the basic principle of Congress's power of the purse,” argued Bill Hartung, a senior research fellow at the Quincy Institute.

“Moving more quickly doesn't always produce better results,” Hartung argued. “The U.S. arsenal is littered with dysfunctional systems that were rushed into production without adequate testing; and the new enthusiasm for AI and hypersonics risks bringing in unqualified or unscrupulous contractors looking to cash in on a new flood of [research and development] funding.”

The proposal also contributes to “China threat inflation” and opens up new avenues for acquisitions that DoD is unlikely to handle well, according to Julia Gledhill of the Project on Government Oversight. “The proposal lacks strong enforcement language to hold the Pentagon back from pursuing programs that fail to complete preliminary design reviews, or fail the reviews completely,” Gledhill added.

The House chose not to include the measure in this year’s defense policy bill, but it remains possible that the Senate will include the “Rapid Response To Emergent Technology Advancements or Threats” provision in its version of the National Defense Authorization Act. 

If the proposal does become law, the Pentagon would have up to $300 million each year to start developing new technology that would either “leverage an emergent technological advancement of value to the national defense” or “provide a rapid response to an emerging threat.”

As Bloomberg noted, the House version of the NDAA includes a pair of pilot programs that would grant the Pentagon a portion of Congress’s acquisition authority and ease restrictions on weapons purchases. But those programs pale in comparison to the one put forward by Kendall, which would give DoD significant leverage over lawmakers in decisions about future spending priorities.

EX-NYC Mayor and once presidential candidate (left, pictured with former DoD secretary Ashton Carter in 2012) wants to make it easier for the Pentagon to initiate contracts without Congressional approval of funding. (DoD photo)
Reporting | Military Industrial Complex
2023-03-10t000000z_1731362646_mt1nurpho000xjbp8a_rtrmadp_3_conflicts-war-peace-ukraine-scaled
Ukrainian soldiers hold portraits of soldiers father Oleg Khomiuk, 52, and his son Mykyta Khomiuk, 25, during their farewell ceremony on the Independence Square in Kyiv, Ukraine 10 March 2023. The father and son died in the battles for Bakhmut in Donetsk region. (Photo by STR/NurPhoto)

Expert: Ukraine loses 25% of its population

QiOSK

Russia’s invasion of Ukraine is over two years old, and Kyiv is facing a population crisis. According to Florence Bauer, the U.N. Population Fund’s head in Eastern Europe, Ukraine’s population has declined by around 10 million people, or about 25 percent, since the start of the conflict in 2014, with 8 million of those occurring after Russia began its full-scale invasion in 2022. This report comes a week after Ukrainian presidential adviser Serhiy Leshchenko revealed that American politicians were pushing Zelenskyy to mobilize men as young as 18.

Population challenges” were already evident before the conflict started, as it matched trends existing in Eastern Europe, but the war has exacerbated the problem. The 6.7 million refugees represent the largest share of this population shift. Bauer also cited a decline in fertility. “The birth rate plummeted to one child per woman – the lowest fertility rate in Europe and one of the lowest in the world,” she told reporters on Tuesday.

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Maia Sandu Moldova
Top image credit: Moldova's incumbent President and presidential candidate Maia Sandu casts her ballots at a polling station, as the country holds a presidential election and a referendum on joining the European Union, in Chisinau, Moldova October 20, 2024. REUTERS/Vladislav Culiomza

It was a mistake to make the Moldovan election about Russia

Europe

Moldova’s election result has left incumbent President Maia Sandu damaged.

An EU referendum delivered only a wafer-thin vote in favor of membership of the bloc. And in the first round of a presidential vote that Western commentators predicted Sandu might edge narrowly, she fell some way short of the 50% vote share she’d need to land a second presidential term. She will now face a unified group of opposition parties in the second round with her chances of remaining in office in the balance.

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RTX (ex-Raytheon) busted for ‘extraordinary’ corruption
Top Photo: Visitor passes the Raytheon Technologies Corporation (RTX) logo at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 22, 2023. (REUTERS/Benoit Tessier/File Photo)

RTX (ex-Raytheon) busted for ‘extraordinary’ corruption

Military Industrial Complex

Indictments of arms contractors for corruption and malfeasance are not uncommon, but recently revealed cases of illegal conduct by RTX (formerly Raytheon) are extraordinary even by the relatively lax standards of the defense industry.

The company has agreed to pay nearly $1 billion in fines, which is one of the highest figures ever for corruption in the arms sector. To incur these fines, RTX participated in price gouging on Pentagon contracts, bribing officials in Qatar, and sharing sensitive information with China.

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