FY25 NDAA Compromise Signals Hope for Pentagon Waste-Watchers

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Today, the House and Senate released their compromise version of the National Defense Authorization Act (NDAA). The new topline, $895.2 billion, is in line with the congressionally mandated budget caps that have been imposed by the Fiscal Responsibility Act. 

R Street Institute resident fellow, Nan Swift, who has followed the congressional budget process closely for years now, says this is surprisingly good news. She released this statement in response: 

“Members of the Senate and House Armed Services Committees should be recognized for adhering to fiscal discipline in their compromise Fiscal Year 2025 NDAA. With the two chambers $25 billion apart, marking to the previously agreed upon budget caps set in the 2023 Fiscal Responsibility Act is a feat worth acknowledging–particularly when it might be easier to justify bloated Pentagon budgets.”

“The bipartisan defense authorization deal also tackles some wasteful spending: pushing back against cost growth, cutting the hopelessly underwater Constellation class frigate program, and authorizing fewer F-35s than originally requested by the administration as the problems, costs, and delays for the troubled program continue to multiply.”

As Nan pointed out, this is good news since “off-budget spending” has become a very expensive habit in recent years. In a recent article, Nan analyzed how federal lawmakers have allowed this spending spree to spin out of control. In short, she says that lawmakers regularly amend the caps to permit greater spending, thereby eliminating the threat of the “sequester” and abusing emergency spending.

Regarding today’s news about the NDAA, Nan concludes: “This approach should serve as a template for FY25 Pentagon-related appropriations. The FY25 NDAA compromise demonstrates that exceeding the budget caps is unnecessary either through the base budget or wasteful gimmicks under the cover of “emergency” designations. While further waste cutting and accountability are necessary across the federal government, this legislation serves as an important proof-of-concept that spending restraint is possible even at the Pentagon.”