McCarthy shares makeup of Army's $30B modernization shift

By Ashley Tressel / February 26, 2019 at 1:09 PM

The Army's new five-year spending plan contains a shift of about $22 billion in "cuts or terminations" and $8 billion in "cost avoidance" from nonpriority programs, the service's under secretary said today.

The newly estimated total of more than $30 billion is set to be "backloaded" across the plan, also called the future years defense program.

Army Under Secretary Ryan McCarthy said at an Association of the U.S. Army breakfast this morning there will be "a pretty dramatic shift" to new development toward the end of the FYDP.

McCarthy told a group of reporters after the breakfast the sum is closer to $31.5 billion, which is $6.5 billion more than senior leaders previously announced.

Army Secretary Mark Esper told reporters last month the service needs about $4 billion to $5 billion a year to start developing new systems for its modernization priorities, overseen by Army Futures Command.

Esper said the funding comes from canceled or reduced programs in “every single budget,” from training to installations to manning and equipment.

The Pentagon, meanwhile, is expected to release its fiscal year 2020 budget request the week of March 11.