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Pentagon Requests $961B Budget for ‘China Fight’ with Cuts to Civilian Workforce, Ukraine Assistance and Diversity Programs

  • In late June, the Department of Defense requests an $848.3 billion discretionary FY2026 budget, marking a real-term cut due to inflation, as part of a broader $1.01 trillion defense plan.
  • In June, the Pentagon requested $848.3 billion for FY2026, adopting a 'one budget, two bills' split-framework with $113.3 billion in mandatory reconciliation funding, originating from May's $1 trillion defense proposal.
  • Data confirms nearly $30 billion in savings from civilian workforce cuts and program efficiencies, funding service member pay raises and housing improvements.
  • Members of Congress criticize the delayed budget process, citing confusion, risk to key weapons programs, and a July 4 deadline for legislation.
  • Beyond the immediate request, the flat FY2026 budget, if reconciliation fails, will force the Pentagon to reassess investments amid an era of strategic recalibration focused on deterring China.
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Defence24 broke the news in on Thursday, June 26, 2025.
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