Budget/Appropriations

Illinois Democrat Sen. Dick Durbin will take the reins of the powerful Senate Appropriations Defense subcommittee, ending the game of musical chairs in Congress over who would succeed the late Sen. Daniel Inouye (D-Hawaii).

Newly appointed Senate Appropriations Chairwoman Barbara Mikulski (D-Md.) made Durbin's appointment official on Friday.

As the new defense appropriations chairman, Durbin will have oversight over more than $500 billion in spending annually, making up roughly half of the discretionary budget.

He will also be a key player in guiding a reduction in Pentagon spending as the wars in Iraq and Afghanistan draw to a close and Congress looks for spending cuts.

“As we wind down the war in Afghanistan, face upcoming budget cuts, and work to prepare our military for future threats, this subcommittee will focus on ensuring our military remains the most powerful, ready and capable force in the world," Durbin said in a statement.

The Senate's top tax-writer is pressing for the expansion and simplification of a tax credit for businesses that hire veterans.

Senate Finance Committee Chairman Max Baucus (D-Mont.) and fellow Montana Democrat Jon Tester have authored legislation that allows employers to claim a $2,400 tax credit when hiring any recently discharged veteran while streamlining the certification process.

"This bill will be a big boost for veterans of Iraq and Afghanistan, making it easier for business owners in Montana and across the country to fill job openings with hard-working vets," Baucus said.  

"Our veterans are intelligent, qualified and proven leaders, and this is our chance to fight for them on the home front.”

“The readiness of our Armed Forces is at a tipping point,” military leaders told the Armed Services Committee.

House Armed Services Committee Chairman Buck McKeon (R-Calif.) wants to know why sequestration is suddenly stopping the Pentagon’s budget work in its tracks.

McKeon sent a letter Friday to acting Office of Management and Budget Director Jeffrey Zients questioning why the Pentagon’s 2014 budget is being delayed due to the across-the-board spending cuts that could now hit March 1.

In the letter, obtained by The Hill, McKeon asked why the Pentagon now says sequestration is preventing its budget from being completed, when OMB and told the Pentagon last year not to plan for the cuts in the months before they were set to take effect.

As the House returns to Washington this week ready to start work in the 113th Congress, its biggest obstacle in the defense world will be the mountain of uncertainty left over from the 112th session.

Across-the-board spending cuts under sequestration were temporarily dodged in a deal at the start of the year, but that only delayed the cuts for two months.

Averting sequestration will be a top priority of defense-minded lawmakers as negotiations on the cuts and a debt-limit increase get under way, and there could be some tension between GOP defense hawks and the Republican House leadership.

The Pentagon will respond to a “perfect storm of fiscal uncertainty” by planning for massive cuts, the Defense chief said.

“You get into dangerous territory when you talk about using national security as a bargaining chip," said Rep. Duncan Hunter.

The Center for Strategic and Budgetary Assessment's Todd Harrison says "virtually all" Pentagon employees will be furloughed. 

The Senate post overseeing more than $500 billion in annual defense spending is up for grabs once again.

“At a certain point the industry has to deal with what’s coming at them,” said Rep. Adam Smith (D-Wash.).