Horizon cutting-room links: Friday, 9 January 2025

"House Passes Spending Package Before Another Shutdown Deadline," New York Times

On 8 January 2026, the House passed a bipartisan spending package, avoiding steep cuts proposed by President Trump. The overwhelming vote of 397 to 28 signifies a cooperative effort to prevent another government shutdown, while lawmakers prepare additional spending bills.

• The House's spending package, worth approximately $180 billion, aims to maintain funding for essential departments like Justice and Commerce, rejecting President Trump's proposed cuts and instead opting for slight trims or spending freezes.
• The package includes earmarks for projects requested by both Democrats and Republicans, though some conservatives express concerns over these practices, labeling them as "currency of corruption."
• Lawmakers are also striving to finalize six additional spending bills, with certain measures considered particularly challenging to achieve bipartisan support, as they seek to ensure government operations continue smoothly beyond January.

"Venezuela Strike Marks a Turning Point for US Cyber Warfare," Politico

US cyber operations during the military strike in Venezuela represent a significant shift in how cyber capabilities are perceived and utilized in international conflicts. President Trump’s public acknowledgment of cyber tactics signals a potential new era in US military strategy, where cyber warfare is not just a hidden tool but a visible method of exerting influence and power abroad.

• The US military operation on 3 January 2026 involved cyber tactics that disrupted power and internet connectivity in Caracas, aiding in the capture of Nicolás Maduro, showcasing an unprecedented level of transparency regarding US cyber warfare capabilities.
• President Trump publicly acknowledged the cyber involvement in the operation, marking a significant departure from the traditionally classified nature of such military actions and suggesting a growing comfort among policymakers in using cyber operations as instruments of statecraft.
• The operation indicates a shift towards integrating cyber warfare into kinetic military strategies, as officials express intentions to make cyber capabilities a regular part of military planning, amidst rising cyber threats from adversaries like China and Russia.

"Trump Calls for Record $1.5 Trillion Defense Budget, a 50 Percent Jump," Politico

President Trump announced his request for a $1.5 trillion defense budget for fiscal year 2027, representing a $500 billion increase from the current budget.

• The proposed budget reflects Trump's military ambitions, including new programs that cannot be funded under current levels. It aims to increase overall DOD spending from 3.5 percent to a targeted 5 percent of GDP.
• Finding an additional $500 billion may be challenging, as Republicans will need to navigate potential resistance from Democrats, especially concerning cuts to healthcare, education, and foreign aid to accommodate this increase.
• Trump’s announcement led to a drop in defense stocks after he criticized major defense companies for high prices and slow performance, calling for a commitment to sustained spending that will strengthen US military capabilities.

"Trump Calls for Capping Executive Pay at Defense Contractors," Federal News Network

President Trump announced plans to cap executive pay at defense contractors at $5 million while prohibiting stock buybacks and dividends, aiming to redirect profits toward enhancing military production capabilities.

• Trump states that executive compensation in the defense sector is excessive, especially given the slow delivery of essential military equipment. He emphasizes that until companies invest in new production facilities, they should not exceed the pay cap.
• Raytheon (RTX), criticized for prioritizing shareholder returns over military needs, faces restrictions on stock buybacks if they do not improve their responsiveness to DOD requirements.
• Trump calls for Congress to raise the DOD's fiscal 2027 budget to $1.5 trillion, asserting this funding would facilitate the development of a "dream military" while alleviating national debt and supporting moderate-income citizens through dividends.

“New Federal Telework Guidance Reaffirms Trump’s in-Office Orders,” Federal News Network

Updated guidance from OPM prioritizes in-person work.

• OPM now mandates that federal employees generally work “full-time, in-person,” with telework being permitted only under strict conditions and on a limited basis.
• Nearly 90 percent of federal employees are currently working on-site full-time, reflecting a drastic reduction in remote work that was prevalent during the pandemic.
• Agencies must establish procedures to ensure telework does not hinder employee performance or agency operations, with strict metrics to evaluate telework effectiveness and the ability to revoke agreements if needed.