CSBA warns that a skinny DOD budget risks compromising US readiness

The Center for Strategic and Budgetary Assessments (CSBA), “nonpartisan” hawks, warned in Defense One that a Pentagon “skinny budget” could force risky tradeoffs between near-term readiness and future modernization. Congressional leaders are set to review a slimmed-down fiscal 2026 budget later this month, and the choices made now could define US defense policy for years to come.

CSBA’s analysis builds on a January exercise that simulated adjustments in defense spending to address the rising challenge posed by China. Participants from across government, industry, and think tanks debated which programs were essential, and the exercise underscored that even a modest two percent topline budget increase could significantly boost investments in long-range strike capabilities, submarines, munitions, and military infrastructure. Without this increase, CSBA argues, necessary funding would come at the expense of older systems, ground forces, and civilian personnel.

The paper notes that the administration’s interim strategic guidance, which reportedly shifts focus from Europe to Asia as detailed by CNN, and Secretary Hegseth’s directive to identify an 8 percent cut in lower priority areas, leave little room for error. Efforts to trim costs in areas such as diversity initiatives and climate-change programs would yield only minimal savings, forcing defense leaders into tougher choices about current readiness versus future modernization.

As concerns over a potential US-China military confrontation and nuclear modernization pressures mount (see the so-called Davidson window), CSBA’s position paper repeats calls for defense budget growth, where even smart spending choices may be insufficient to quiet the chorus.