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In the initial phase, all security spending
-- for defense, homeland security, veterans, foreign aid and intelligence
-- would be cut from the current level of $687 billion to $683 billion in next year's budget. Defense would take a share of that $4 billion reduction. The next step is what Panetta fears: A 12-member, House-Senate committee must propose up to $1.5 trillion more in cuts over a decade and do so by Nov. 23. If the committee deadlocks or if Congress rejects its recommendations, the Obama administration would be required to impose automatic, across-the-board spending cuts of up to $1.2 trillion, with half coming from defense. "Clearly we don't want to get to the point ... it's going to be bloody," said Rep. Mike Coffman, R-Colo., a member of the House Armed Services Committee. The budget proposals provide no specifics, but several programs are often mentioned as possible targets. Ten years in, the multibillion-dollar F-35 Joint Strike Fighter program has been plagued by cost overruns and delays. The cost of buying more than 2,400 of the next-generation aircraft for the Air Force, Navy and Marine Corps has jumped from $233 billion to $385 billion. Another potential target is the Medium Extended Air Defense System, a missile defense program being done in conjunction with Italy and Germany. The Pentagon said earlier this year it would not implement the program, though research will continue for two more years at a cost of more than $800 million. Among the other targets are the numbers of ships and submarines the Pentagon buys. One of the most costly programs for the Defense Department is health care coverage for some 10 million active duty personnel, retirees, reservists and their families. The cost has jumped from $19 billion in 2001 to $53 billion now. Obama proposed increasing the fees for working-age retirees enrolled in the decades-old health program known as TRICARE, but has encountered resistance from lawmakers and various associations for military retirees. Debt-limit negotiators looked at changes in TRICARE for possible savings, and the special bipartisan committee is likely to consider the program in its calculations. That concerns Robert Hannon, 69, of Smithfield, Va., a former state commander of the American Legion in Virginia. He said there's a misconception that military retirees all have fat benefits. He said many older military retirees live on a low fixed income. "They just don't have the money," said Hannon, a retired Navy chief warrant officer who said he's fearful that premiums and co-payments will be raised for those over age 65 who use what's called TRICARE For Life. "My major concern as a retiree is what are they going to try to do to TRICARE For Life?" Hannon said. "I fully feel they owe us that."
[Associated
Press;
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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