Defense Associations in Letter to Congress Ask That CR Includes Inflation

9/12/2022

Pentagon

FOR IMMEDIATE RELEASE

September 12, 2022

Defense Associations in Letter to Congress Ask That CR Includes Inflation

Arlington, VA — The National Defense Industrial Association (NDIA), along with the Aerospace Industries Association (AIA) and the Professional Services Council (PSC)—a group of defense associations known as the “Tri-association”—sent a letter today to Appropriations Committees' leadership requesting expedited completion of the FY23 defense appropriations bill.

The bi-partisan letter urged Congress to consider the impacts of inflation when setting the topline for a continuing resolution (CR). NDIA’s president and CEO, the Hon. David L. Norquist said, “if left unaddressed, inflation will significantly weaken our national defense. We look forward to working with Congress to take comprehensive and bi-partisan steps to address this challenge.”

“Our letter offers concrete ways to mitigate the impacts of cost growth due to inflation and labor market forces through Congress, the executive branch, and industry working together on solutions,” David Berteau, president and chief executive officer of the Professional Services Council (PSC) said.

“Inflation is everywhere and impacting us all. We cannot allow it to undermine our national security as well. Everyone needs to be concerned, and policymakers must work to address the impacts immediately,” Eric Fanning, president and CEO of AIA said.

As inflation reached a 40-year-high this year, the typical practice of setting CRs at the previous year's level would leave the service budgets running at a 9% deficit from the funding level required to maintain the buying power Congress intended in its 2022 enacted budget, as cited in the letter.

The Tri-association letter requests Congress allow new starts and quantity increases where bipartisan support exists to allow industry and the Department of Defense to meet requirements and respond to threats, "Given our nation's security challenges, Congress should be encouraging the Department and industry to move faster to field new technologies, not directing them to pause" it said. It further highlights the harm to businesses, especially smaller businesses, of failing to adjust contracts based on inflationary impacts.

The associations view the call as a necessity step to protect our national security, ensuring that those in our military are provided with the equipment for their mission. NDIA is focused on working with Congress to prevent waste and mitigate impacts to capabilities caused by budget instability.

For media queries, please contact Habiba Hamid at media@NDIA.org or on (703) 247 2544. 

NOTES TO EDITORS

Link to the Letter

About the National Defense Industrial Association

The National Defense Industrial Association is the trusted leader in defense and national security associations. As a 501(c)(3) corporate and individual membership association, NDIA engages thoughtful and innovative leaders to exchange ideas, information, and capabilities that lead to the development of the best policies, practices, products, and technologies to ensure the safety and security of our nation. NDIA’s membership embodies the full spectrum of corporate, government, academic, and individual stakeholders who form a vigorous, responsive, and collaborative community in support of defense and national security. For more than 100 years, NDIA and its predecessor organizations have been at the heart of the mission by dedicating their time, expertise, and energy to ensuring our warfighters have the best training, equipment, and support. For more information, visit NDIA.org.


Topics: Budget