Pentagon Submits ATR Actions to Congress Due to Rising Deployment Costs
What happened
Military deployments in the Caribbean and Middle East are driving up costs, prompting the Pentagon to submit above threshold reprogramming (ATR) actions to Congress. The Pentagon is also seeking an emergency supplemental request and slowing accelerated procurement plans. These operational costs are estimated at $400 million to $1.7 billion in lost buying power per day.
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Why it matters
The financial strain is caused by unplanned bills, including deployments, fuel cost increases, and a lack of timely reimbursement from DHS. To cover budget shortfalls, the Pentagon plans to defer and delay training and facilities maintenance.
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Who's involved
- PENTAGONSubmitting ATR actions and managing military deployments in the Caribbean and Middle East
- Middle EastGeopolitical region where the Pentagon conducts sustained military operations
- CaribbeanRegion where the Pentagon conducts military deployments
- CongressReceiving the ATR actions and controlling funding for the Pentagon's operations
- DHSNot timely reimbursing the Pentagon, contributing to cash flow shortfalls
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Lockheed MartinSpeculative
Lockheed Martin could see major defense contracts and revenue threatened due to procurement slowdowns and ATR actions.
- BAE SystemsSpeculative
BAE Systems may face reduced funding availability for defense contracts due to budgetary uncertainty.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Senate may need to address Pentagon's funding crisisSenate must address Pentagon funding shortfalls due to deployment costsLikely
- Military deployments may affect luxury resorts' tourism demandMilitary deployments may impact luxury resorts' tourism demand in the CaribbeanPossible
- Middle East deployments may increase risk for ExxonMobilIncreased geopolitical instability in the Middle East may impact ExxonMobil's operations.Possible
- Lockheed Martin may see contracts threatened by Pentagon budget cutsLockheed Martin may face reduced contracts due to Pentagon procurement slowdownsPossible
- Budgetary uncertainty may reduce funding for BAE SystemsBudgetary uncertainty may reduce funding for BAE SystemsPossible
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The entities involved
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Caribbean
region to the center-east of America composed of many islands / coastal regions surrounding the Caribbean Sea
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PENTAGON
Slovak company
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Middle East
geopolitical region encompassing Egypt and most of Western Asia, including Iran
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Congress
US record label; imprint of Congress Record Corp.