The Aerospace Industries Association (AIA) recently applauded the Fiscal Year 2018 National Defense Authorization Act, which was passed by Congress in November and signed into law by President Donald Trump this week.
It authorizes approximately $700 billion in defense spending. The Department of Defense will receive $626 billion while overseas contingency operations will receive $66 billion.
The act also calls for military initiatives including upgrading to combat vehicles, improving missile defense capabilities, increasing military salaries, and increasing the size of the armed forces.
The act corrects six years of insufficient funding, AIA said.
“From our initial legislative proposals to the Armed Services Committees, to our ongoing input throughout the legislative process, AIA worked hard to ensure industry’s voice was heard,” AIA President and CEO David F. Melcher said.
The act could cause a major problem, however. Its spending exceeds the caps established in the 2011 Budget Control Act by $150 billion. The act’s purpose is to keep deficits under control, and the 2018 budget cap was set $549 billion.
Last week, AIA urged the federal government to avoid a shutdown.
A shutdown, even a brief one, would adversely affect the aerospace and defense industry by closing facilities and delaying contract payments, AIA said.