House Armed Services Committee Reconciliation Proposal a Military Contractor and Billionaire Welfare Giveaway

As the House Armed Services Committee takes up its portion of what will become President Trump’s reconciliation bill, the Center for International Policy issued the following statement:

“The House Armed Services Committee (HASC) majority’s proposal to add $150 billion to the Pentagon budget is a clear attempt to funnel public money into the pockets of military contractors and billionaires, disguised as a national security measure.

“The so-called “Golden Dome” would get $24.7 billion. Trump’s fantasy missile shield will fail to make Americans any safer from today’s threats, but succeed in steering billions of dollars in contracts to Trump’s cronies, like Elon Musk’s SpaceX. The HASC proposal also includes $360 million to prevent the retirement of the obsolete F-22 and $1.5 billion for Sentinel ICBMs, one of the more dangerous elements of the plan’s $12.9 billion nuclear weapons spending spree.

“HASC Chairman Mike Rogers (R-AL) claims the arms industry is under-resourced, but the $899 billion in military spending already appropriated for this year exceeds the GDP of all but 20 countries. This proposal would balloon this year’s Pentagon budget to $1.05 trillion.

“Despite increased profits and cash flow, military contractors are spending more of their revenue on cash dividends and stock buybacks and less on R&D and capital expenditures, leaving it to taxpayers to cover those expenses. It’s fitting that this proposal is part of the same bill that will drive further inequality by cutting at least $300 billion in Medicaid funding and slashing other programs that help Americans working to make ends meet. The message of this package is clear: welfare is fine, so long as it’s for corporations and billionaires.”