GOP stopgap funding bill boosts defense funding over FY24 levels

WASHINGTON, DC – NOVEMBER 02: (L-R) U.S. House Majority Whip Rep. Tom Emmer (R-MN), Speaker of the House Rep. Mike Johnson (R-LA), House Republican Conference Chair Rep. Elise Stefanik (R-NY) and House Majority Leader Rep. Steve Scalise (R-LA) leave after a news briefing at the U.S. Capitol on November 2, 2023 in Washington, DC.(Photo by Alex Wong/Getty Images)

WASHINGTON — House Republicans’ yearlong continuing resolution for fiscal 2025 includes $892.5 billion for defense, boosting the defense topline about $6 billion above the FY24 spending limits but slightly below the $895 billion forecasted for this year.

Backed by President Donald Trump, Republicans are supporting a CR that runs until Sept. 30 rather than banking on lawmakers’ ability to push through individual appropriations bills for FY25. Congress has until the end of March 14 to pass a spending bill before the government shuts down.

The proposed CR, released Saturday and set to be taken up by Congress this week, includes an additional $8 billion for Central Command and European Command, specifying that the funds be used for “only for U.S. military operations, force protection, and deterrence.” The language stipulates that this funding cannot be expended until 30 days after the defense secretary provides the congressional defense committees with an execution plan.

It also makes some changes to bring shipbuilding funds roughly in line with the levels requested by the Navy in FY25, with some notable exceptions. Namely, Arleigh Burke-class destroyer procurement was boosted to $7.9 billion — potentially adding a third destroyer — while Constellation-class frigate procurement was reduced from about $1.1 billion to $233 million. It also cuts funds for the Medium Landing Ship program, while increasing funds for ship to shore connectors.

Total procurement spending remained roughly flat at $167 billion from the Defense Department’s FY25 request, while research and development dropped slightly from $143 billion to $141 billion, according to calculations done by JP Morgan analyst Seth Seifman.

The bill also “appears to allow new start programs to proceed, which is not typically the case under a CR,” Seifman said.

In a note to investors this morning, Byron Callan of Capital Alpha Partners noted that the bill “is not a traditional continuing resolution” that simply funds the government at prior year levels, offering the administration “far more flexibility” to spend certain funds.

“We expect this act, or something very close to it, will be passed by Congress,” Callan wrote.

The House Rules Committee is expected to take up the bill this afternoon to decide the terms under which the measure will be brought to the House floor tomorrow. With a 218-214 split in the House, Speaker Mike Johnson may only be able to lose one Republican vote if all Democrats vote against the bill.

Senate Republicans, who hold 53 seats, will need some Democrats to vote in favor for the bill for it to pass procedural hurdles that require a 60-vote threshold. Whether or not Democrats will do so is unclear, with House Minority Leader Rep. Hakeem Jeffries posting on X social media outlet, “We are voting no” and Senate Minority Leader Chuck Schumer yet to publicly lay out a strategy for the Senate Democrats.

Democrats have called out defense related cuts, which included a $185 million cut to Defense Nuclear Nonproliferation programs and a $140 million cut to the NATO Security Investment Program, as well as cuts to military construction that will force the service “to pick and choose projects to fund,” according to a fact sheet released by Washington Sen. Patty Murray, the top Democrat on the Senate Appropriations Committee.