Some must-reads from this week's issue of Inside the Pentagon:
1. Senate leaders Wednesday broke a political logjam over federal spending, announcing a two-year budget agreement that would raise statutory caps on defense spending for fiscal years 2018 and 2019 by $165 billion, a deal that -- if agreed to by the House and enacted -- would exceed increases for the Pentagon proposed last year by the Trump administration.
2. The Defense Department's modernization plans will be driven by the potential for conflict with China and Russia, with some priorities expected to overlap, while others will likely compete, according to DOD's second-highest-ranking officer.
3. In its new Nuclear Posture Review, released Feb. 2, the Pentagon calls for lowering the yield of some existing submarine-launched ballistic missile warheads and reinstating the sea-launched cruise missile program to address threats posed by Russia and China.
4. The Pentagon has officially disestablished the office of its top acquisition official and will spend the next four months executing a congressionally directed restructuring aimed at separating the management and sustainment of weapon systems and services from research and engineering.