The INSIDER daily digest -- March 13, 2025

This Thursday INSIDER Daily Digest has news on the effects of a possible yearlong continuing resolution on the Air Force, plus coverage of a Senate hearing on military readiness and more.

We start off with news on the effects of a possible, yearlong continuing resolution on at least one service's budget:

Yearlong CR without anomalies could cost Air Force up to $14 billion

If Congress reaches a deal on a yearlong continuing resolution to keep the government running through September, the Air Force's foundational accounts could see a blow as high as $14 billion, a top service official told lawmakers yesterday.

House Armed Services Committee Chairman Mike Rogers (R-AL) and Ranking Member Adam Smith (D-WA) sent letters to the leaders of every military service on Feb. 14 asking them to "identify infrastructure, programs or processes which are no longer relevant to [the] National Defense Strategy or are not producing the intended effects." DOD has since responded:

DOD tells lawmakers to wait for list of proposed budget cuts

The Pentagon is telling the House Armed Services Committee that it cannot provide senior lawmakers with lists they requested identifying potential cuts to defense programs, but to instead wait for the rollout of the Trump administration's fiscal year 2026 budget request, according to a letter obtained by Inside Defense.

We also have news on Army electric vehicles that is now available for all to read:

Army chief moves to foil Biden-era electric vehicle test plan

A Biden-era plan to test electric Infantry Squad Vehicles is in jeopardy as Army Chief of Staff Gen. Randy George contends the capability is not suitable for battle, while new political opposition has emerged in the White House and Pentagon to initiatives adjacent to clean energy or climate change.

Some Defense Innovation Unit news:

DIU announces 18 awardees under quantum sensing project

The Defense Innovation Unit is set to field and test quantum sensing systems for military applications, awarding Other Transaction Agreements to 18 vendors under its Transition of Quantum Sensing program, according to an announcement.

More coverage from last week's AFA Warfare symposium in Colorado:

NGAD decision not final, but officials want a new manned fighter

DENVER -- The Air Force needs a Next Generation Air Dominance penetrating fighter jet to maintain survivability and lethality in a contested Indo-Pacific environment, top service leaders said last week.

The Senate Armed Services readiness and management support subcommittee held a hearing this week with the service vice chiefs on military readiness:

Army vice warns of budget challenges to support growth of troop levels

The Army's active-duty end strength is projected to expand by the end of the fiscal year to 10,000 troops more than the service budgeted for in FY-25, Vice Chief of Staff Gen. James Mingus told lawmakers Wednesday.

Air Force 'fully committed' to moving KC-135 recapitalization forward

The Air Force is still "fully committed to tanker recapitalization post the KC-46" Pegasus program, a top service official told lawmakers Wednesday.

Acting CNO: Ship availability sits at 67%, CR will be a setback for combat surge readiness

Naval ship availability is about 67% depending on the day, a senior Navy official told lawmakers Wednesday -- far from the 80% combat-surge readiness goal set in place by former Chief of Naval Operations Lisa Franchetti in a plan to effectively counter China by 2027.

Document: Senate hearing on military readiness

The Space Force will make a certification decision for the Vulcan rocket soon:

ULA completes Vulcan investigation, awaits Space Force certification

United Launch Alliance completed its investigation into the anomaly on its Vulcan rocket in October that delayed National Security Space Launch certification, ULA President Tory Bruno told reporters.

The defense secretary in a recent memo codified the Software Acquisition Pathway as the “preferred pathway for all software development components of business and weapon system programs” for all DOD components and made Commercial Solutions Openings and Other Transactions the default contracting vehicles for acquiring capabilities under SWP:

Industry leaders see promise in Hegseth's new software push, with caveats

Defense Secretary Pete Hegseth's new memo directing the adoption of special contracting pathways for rapid software procurement is a positive sign for the Pentagon acquisition process -- but there are some caveats, industry leaders told Inside Defense.