Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

U.S. Army says it faces huge equipment, training risks with budget cuts

Published 10/13/2014, 02:28 PM
Updated 10/13/2014, 02:30 PM
© Reuters U.S. Army Chief of Staff General Odierno and Fang, Chief of General Staff of the People's Liberation Army, pose for photographers in Beijing

By Andrea Shalal

WASHINGTON (Reuters) - The U.S. Army warned on Monday that mandatory budget cuts due to resume in fiscal 2016 would be devastating to a service that is already facing huge risks as it tries to keep forces ready for battle, replace aging equipment and respond to crises around the world.

"We have to have a national security debate ... because there is too much going on," U.S. Army Chief of Staff General Ray Odierno told reporters at the annual Association of the U.S. Army (AUSA) conference.

Odierno said the Army had agreed to further reduce the size of its active force to 450,000 troops from an earlier goal of 490,000 to comply with mandatory budget cuts known as sequestration, but he questioned if even the original target would allow the Army to respond as needed around the globe.

"The problem is that since we made those statements, the world is changing in front of us," Odierno said, citing Russian aggression in eastern Europe, growing threats from Islamic State militants and challenges in other areas.

"I now have concerns whether even the old level of 490,000 is the right thing to do because of what I see potentially on the horizon," he said, adding that it was critical to examine all possible options given the changing security environment.

Odierno said he believed air strikes were helping slow the spread of Islamic State extremists in Iraq and Syria, but it would be a long and difficult fight.

Army Secretary John McHugh told reporters that the Army had already made tough choices to delay and cancel weapons programs so it could achieve sequestration budget cuts, but further reductions would be very difficult to implement.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Top weapons makers like Lockheed Martin Corp and Boeing Co are watching the Army's budget debate with great interest given the dearth of new weapons programs available for industry to bid on.

McHugh said Americans relied on the U.S. military and the Army in particular to respond to a wide variety of threats, including the Ebola outbreak in Africa. But repeated budget cuts would limit the Army's ability to respond in a timely fashion.

"As we see our budget shrink, we are fiscally and physically unable to be in more and more places, which increases the response time," McHugh said.

Odierno said the Army had already cut its aviation units by 25 percent, which also limited its ability to respond to multiple crises around the world simultaneously.

"We have a huge window of risk in modernization and readiness," Odierno said. "We continue to increase the requirements and commitments of our forces, and yet we cannot ensure that we're going to have the readiness to meet those commitments."

(Reporting by Andrea Shalal; Editing by Jim Loney)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.