AIA: Budget resolution a 'major victory' for defense industry

The budget resolution adopted by Congress is a "major victory" for the defense industry because it paves the way for increased military spending and new tax cuts, according to the Aerospace Industries Association.

"Throughout 2017 AIA has worked energetically to convince Congress and the Administration of the importance of repealing or revising BCA caps and enacting comprehensive tax reform," AIA said in a statement. "Passage of the budget resolution by both the House and Senate enables Congress to move forward on comprehensive tax reform and sets the stage for budget negotiations to raise defense spending above the current BCA caps. This constitutes a major victory for our industry."

Though the budget resolution adheres to the spending caps mandated by the 2011 Budget Control Act, it does allow those caps to be repealed or revised in the event separate legislation is passed to do so. The resolution also allows the GOP to pass a tax reform package with 51 votes instead of 60, thus obviating the need for Democratic support.

"AIA's Executive Committee made a firm commitment to achieving growth opportunities for our industry through substantial relief from BCA budget caps and comprehensive tax reform," AIA president and CEO David Melcher said in the statement. "AIA's advocacy for U.S. government policies that make our industry more competitive have been a critical point of emphasis with the Trump Administration and Congress. They are central to unlocking our industry's great potential to grow exports and create high-skill, high-wage jobs."

Meanwhile, Congress is operating under a stopgap continuing resolution that expires Dec. 8, at which point lawmakers must reach a bipartisan budget deal for fiscal year 2018. Democrats have said they will insist any increase in defense spending be matched by a similar boost in non-defense funds.